Worldcom: Ethics: Ethical Dilemma In The Accounting Case

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Ethical Dilemma of WorldCom Case Introduction WorldCom recorded the most unethical accounting scandal in the accounting history. The fraud involved two executives by the name Scott Sullivan who was the chief financial officers (CFO) and his colleague David Myers who was the controller in the firm. The two top level employees demanded a fraudulent accounting ploy that involved shifting more than $3.8 billion from the account of operations and recorded them to the capital account. The misconduct made the WorldCom share price rise rapidly, leaving the company deteriorating financially to meet the requirements of Wall Street standards. The purpose of the memo is to illustrate and explain the ethical dilemma issue faced by Troy Normand who seems to be a victim of circumstances. He was the managing head of the corporate reporting department at WorldCom. Troy Normand directly witnessed the two executives, Myers and Scoot maliciously inflating the earnings by $3.8 billion. Therefore, the study will determine whether Troy’s action was immoral, or improper. At the end of determination, there will be the most practical possible consequences and trade-offs, and finally, the recommendations. Ethical Issue in the Troy Normand Case In the WorldCom fraudulent accounting scandal, Troy Normand situation or…show more content…
Instead, he could have served as a whistleblower, and nothing could have gone into a mess. The stakeholders who were affected by Troy Normand were the uninformed innocent shareholders. In the case study, it is stated that the stock price for WorldCom rose; therefore, many shareholders subscribed as the company stock trend seemed promising. If Troy Normand refused to cooperate with Scott and Myer, the innocent shareholders could not have purchased the WorldCom shares at an over-valued price. Also, if he reported the incidence, the stock price could have remained

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