Conflict in Ethical Decision Making at Worldcom
Conflict in Ethical Decision Making at WorldCom
Kerry Seeley
Business Ethics
MT4200
National American University
September 25, 2007
Craig Chaplin
Abstract
This paper explains how WorldCom began and where it’s at now. It didn’t take long for WorldCom to become the second largest long distance phone company. WorldCom provided a legal framework for people working in communication projects on an individual basis, mainly in Central America, but they also developed projects together with partners in Latin-America, Africa and Europe, occasionally in cooperation’s with major Dutch funding organizations. As shares hit record highs WorldCom became known as a valuable company. In the year 2002 WorldCom hit bottom when scandalous acts were discovered.
Upon doing research on a business ethical problem, I found that many companies have been involved in one. I found that WorldCom had conflict in ethical decision making. Following will be the history of WorldCom through current position, the role of auditing, and what could have been done differently to prevent or address the current issue at hand.
In 1983, two businessmen, Murray Waldron and William Rector laid out a plan to start a discount long-distance provider called Long-Distance Discount Service (LDDS). The company began in Jackson, Mississippi. In 1985, LDDS selected Bernard Ebber, who was an early investor, to become chief executive officer. LDDS went public in August 1989 when it acquired Advantage Companies, Inc. LDDS name was changed to LDDS WorldCom in 1995, which later became known as just WorldCom.
During the 1990s, LDDS growth under WorldCom was fueled mainly through acquisitions and reached its peak with the acquisition of MCI in 1998. Among the companies acquired or merged with WorldCom, LDDS merged in an all-stock deal with discount long-distance service provider Advanced Telecommunications in 1992. In 1993, LDDS acquired long-distance providers Resurgens Communications Group and Metromedia
Kerry Seeley
Business Ethics
MT4200
National American University
September 25, 2007
Craig Chaplin
Abstract
This paper explains how WorldCom began and where it’s at now. It didn’t take long for WorldCom to become the second largest long distance phone company. WorldCom provided a legal framework for people working in communication projects on an individual basis, mainly in Central America, but they also developed projects together with partners in Latin-America, Africa and Europe, occasionally in cooperation’s with major Dutch funding organizations. As shares hit record highs WorldCom became known as a valuable company. In the year 2002 WorldCom hit bottom when scandalous acts were discovered.
Upon doing research on a business ethical problem, I found that many companies have been involved in one. I found that WorldCom had conflict in ethical decision making. Following will be the history of WorldCom through current position, the role of auditing, and what could have been done differently to prevent or address the current issue at hand.
In 1983, two businessmen, Murray Waldron and William Rector laid out a plan to start a discount long-distance provider called Long-Distance Discount Service (LDDS). The company began in Jackson, Mississippi. In 1985, LDDS selected Bernard Ebber, who was an early investor, to become chief executive officer. LDDS went public in August 1989 when it acquired Advantage Companies, Inc. LDDS name was changed to LDDS WorldCom in 1995, which later became known as just WorldCom.
During the 1990s, LDDS growth under WorldCom was fueled mainly through acquisitions and reached its peak with the acquisition of MCI in 1998. Among the companies acquired or merged with WorldCom, LDDS merged in an all-stock deal with discount long-distance service provider Advanced Telecommunications in 1992. In 1993, LDDS acquired long-distance providers Resurgens Communications Group and Metromedia