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Worldcom Corporation Case Studies

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QUESTION 1
-Perceived pressure-
Perceived pressure is present when financial problems which are on the rise that are unable to be solved, thus pushing commit fraud. Adding on, nonfinancial pressures involve producing better financial results than actual performance, intention to top the market / industry.
As such, Bernie Ebbers desired to notch the WallStreet through forging close relationships between Worldcom and the Stock market. Below are the factors that evidently pressured Bernie Ebbers
• Pressure to meet or Beat analyst expectation
“Our goal is not to capture market share or to be global. Our goal is to be the no.1 stock on wall street” as quoted in the case study, Ebbers, the CEO and “the powerful leader” , strongly desired to notch the Stock market on wall street which drove him to greed. Thus, it led committed a financial fraud. It was easy for him to do so as; he was able to pull in members of the stock market. Moreover being a risk-seeker further portrayed a respectable image of him.
• Pressure was to keep Worldcom stock from declining further
“If WorldCom 's stock price fell substantially, the collateral would be of insufficient value to secure his loans, thus forcing margin calls that he could not meet.” From this we can derive that his organizational visions and goals were directed to his personal desires and goals.
By making use of the currency of the stock market value, Ebber is able to deviate for his personal benefits rather than for the organization.

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