Worldcom: Code Of Ethics

753 Words4 Pages
In the case of WorldCom, manager and controller are the person who are involved in fraud. The WorldCom manager do the fraud can misused used their power to influence the company to archive their personal interest. We can see that this is the corporate culture factor that make the fraud happened in the company. In the WorldCom case, their employee are prohibited to question their manager and there are need to follow whatever their manager instructed. Besides that, the operation every department inside the company is not uniformed. We can see that each department has its own rules and management style. Other than that, Ebbers‟s disapprove the effort of establish of a corporate Code of Conduct in WorldCom .The code of corporate governance…show more content…
Ebbers described that the Code as a “colossal waste of time.” As the result, the lack of a code of ethics at WorldCom shows that no training on awareness of fraud or ethics was conducted. In addition ,WorldCom lack of communication among the department , employees and their supervisor, between internal and external auditor and between boards of director. Because the lack of communication make the information flow inside the company blocked .Sullivan ,CFO of WorldCom warn Cooper stay away from the wireless business unit.This show that Sullivan want Cooper stop to investigate the wireless business and also order one of the Anderson auditors do not tell the information about transfer of expected future cash payment and bad- debt expenses to pump up company…show more content…
First,the company should comply and enhance the code of corporate governance to monitoring the actions, policies and decisions of corporations. The compliance of the code of corporate governance in a company would enhance transparency and efficiency of the overall company performance. The implement of code of corporate governance can minimize the risk of misconduct and fraud from happening. Besides, the company also can implement whistle blowing policy. The implement of whistle blowing policy can make the employees can detects changes at company environment and they often know more the current situation of the company. As a result, the implementation of whistle blowing policy that allow the management team to find out the flaws in the company and take appropriate actions immediately. Then, information provided by the whistle blower should be kept in confidential. The identities of whistle blower also keep confidential to protect the safety of whistle blower. Rewards can be given accordingly. By using this way, it encourage more whistle blower provided the information
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