Preview

The Rise and Fall of Worldcom

Satisfactory Essays
Open Document
Open Document
272 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Rise and Fall of Worldcom
Case Study
The Rise and Fall of WorldcomThis case study is about Bernard Ebbers CEO of Worldcom, Inc. and Scott Sullivan CFO of Worldcom, Inc. once they were boosted the company growth and they got awards. Later on they made frauds by using their influential tactics on employees and company’s board. Those are
Assertiveness: it involves applying legitimate and coercive power to influence others by threatening or giving punishment. This tactic was used by sullivans office where they berated and intimidated employees who opposed head quarter’s decision and questioned for more information. When one employee refused to change in accounting entry, worldcom’s controller threatened him and made him to make changes in accounting entry.
Information control: It involves manipulating other’s access to the information and restricted access to the valuable information. By using information control Ebbers inner circle restricted flow of all financial information. Accountants didn’t have access to computer files in which fraudulent was made and they were not allowed even to prepare accounting files.
Persuasion: persuasion is to influence people with their virtual facts, logical arguments and emotional speeches to change and manipulate another person’s attitude and behaviour. Ebbers was persuaded the board of directors and changed their mind even though they knew that he was misrepresenting information. As a result board of directors didn’t oppose to Mr.Ebbers recommended action of course.
Silent Authority: it involves influencing employee’s behaviour through legitimate power without negotiation, threats, pursuation or other tactics. Ebbers and Sullivan used their silent authority power to influence their employees to change company files and financial information.Group 7 Team Members:
Leeladhar Ponnagani
Anan El-Mubasher
Arpit Patel
Herbert Pierre

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Week 2 Eth 376

    • 293 Words
    • 2 Pages

    WorldCom was the second largest telecommunications corporation in the United States. After thriving in a multi-million dollar business they were forced to close their doors. The reason were practices unethical and fraudulent activities which lead to exposing the business. WorldCom was one of the largest accounting fraud scandals in corporate history. WorldCom had to file for bankruptcy after the organization admitted to accounting fraud. How this came up was a long and drawn out investigation. In the financial statements determined that the auditor was right about that the corporation was making false transactions that could not be determined what or how they go the amounts from. From the investigation that the auditors discovered $11 billion dollars that was fraudulent transactions.…

    • 293 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Worldcom

    • 1138 Words
    • 5 Pages

    a. (i.) According to FASB Statement of Concepts No. 6, paragraph 25, assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. They represent probable future economic benefits controlled by the enterprise. According to FASB Statement of Concepts No 6, paragraph 80, expenses are outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major, or central, operations. Expenses are gross outflows incurred in generating revenues. (ii.) SCON No. 6, paragraph 148, states that costs should be expensed when they are used up or have expired and when they have no future economic value which can be measured. SCON No. 6, paragraph 178-181, states costs should be capitalized or recorded as assets when the costs have not expired and they have future economic value.…

    • 1138 Words
    • 5 Pages
    Better Essays
  • Better Essays

    “As we explore persuasion, we can divide the persuasive communication into three parts: the communicator, the message, and the audience. First, we will deal with what characteristics of persuaders make people more likely to be persuaded. Next, we will think about characteristics of the message that lead people to change. Finally, we will explore what characteristics of the audience can lead them to be persuaded.” (Feenstra, 2011, p. 88) For your assignment this week, provide an in-depth analysis of the three parts of persuasion. Please reference the bullet points below to complete your assignment.…

    • 649 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Assertive- Being assertive means that you express yourself effectively and stand up for your point of view, while also respecting the rights and beliefs of others. Being assertive can also help boost your self-esteem and earn others'…

    • 406 Words
    • 2 Pages
    Good Essays
  • Good Essays

    To persuade is to induce to believe by appealing to reason or understanding; in other words, to convince. We all like to convince people to do what we want, but it's really all about how we do what we do to persuade someone. There are different methods to persuade someone such as in “The Use of Force” by William Carlos Williams where the characters persuade one another just like someone in modern day society would.…

    • 1016 Words
    • 5 Pages
    Good Essays
  • Better Essays

    A Sweepstakes Scandal

    • 1552 Words
    • 7 Pages

    Persuasion is "the process by which a person's attitudes or behaviors are, without duress, influenced by communications from other people (Encyclopedia Britannica Online). There are numerous types of persuasion and in many forms. In the following pages I will take you on a journey through the tactics of sweepstakes companies, one in particular - Publishers Clearing House. This is an interesting subject matter that I have grown up around. My mother has sent in each and every Publishers Clearing House sweepstakes letter she has received since she was twenty years old. She is positive that someday she will indeed win big money even though she has only won a few prizes worth about a dollar in over 30 years of doing it. Why? Simply because she is persuaded by someone or something to keep doing so.…

    • 1552 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Assertive behavior is direct speaking about your own needs, feelings, and goals. It tells the other party what you think, feel, and want without being…

    • 1269 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    It is almost impossible for people to avoid persuasion throughout the course of their day. If they listen to the radio or watch television, they encounter advertisements, news media and the opinions and values expressed by announcers, actors, show hosts and advertisers. If they go to work, they are likely to encounter persuasion from their boss, co-workers, or clients. If they share a home with other people, they are likely to engage is persuasion over what to eat, which television shows to watch or where to go for fun. Persuasion comes in many forms.…

    • 404 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Persuasion is a method of communication that is the foundation of our day-to-day source within our society. Codoban describes persuasion as “the process by which a person’s attitudes or behaviors are without duress, influenced by other people through communication” (Codoban, 2006, p. 151). Persuasion is communicating furthermore than words that tries to inspire us or change the structure of other individuals and from time to time change the behavior in individuals. In our course text, Perspectives on Persuasion, Social Influence, and Compliance Gaining, Seiter & Gass emphasized how the receiver…

    • 1214 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    There are many terms and concepts I have learned in class on the topic of persuasion. All are useful and helpful to know in their own way. I am going to focus on three of them that are more important me than the rest. They are the knowledge and awareness function, fear appeals, and motivation.…

    • 616 Words
    • 3 Pages
    Good Essays
  • Better Essays

    My Reflection on Persuasion

    • 2163 Words
    • 62 Pages

    Persuasion is convincing others to do what you think. It is a “[p]rocess aimed at changing a person's (or a group's) attitude or behavior toward some event, idea, object, or other person(s)...to convey information, feelings, or reasoning, or a combination of them”. Before reading Macbeth, I thought that this was all there was to persuasion. I did not realize that to fully comprehend a definition or idea, I could not just turn to a dictionary for the answer, but had to explore, through different situations and experiences, the significance and effects of persuasion. As a result, I thought that persuasion was simply convincing, to get you what you…

    • 2163 Words
    • 62 Pages
    Better Essays
  • Better Essays

    Mass Media Persuasion

    • 1278 Words
    • 6 Pages

    Effective persuasion is central to public relations. Persuasion is a feature of most informational communication and organization-public messages. According to Bryant, persuasion is “the process of adjusting ideas to people and people to ideas.” This process of adjusting ideas to people and people to ideas is very important, because this transaction takes place daily in many facets of our lives. Some of the areas where persuasion is used to sway public opinion are in the news, advertising, and political campaigns. In the world of commerce individuals and businesses thrive off swaying public opinion in their favor. You need persuasion in efforts to sell products and services, efforts to convince stakeholders to trust and support organizational initiatives, efforts to convince legislators to pass favorable regulations, and just simply the effort to exert interpersonal and group influence in order to achieve one’s goal.…

    • 1278 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    When we hear the word assertive most people think of someone standing their ground refusing to give an inch and pushing to have their own way. Others think of someone who is stubborn on certain issues but overall a nice individual. Others do not know what assertive behavior really is.…

    • 2727 Words
    • 11 Pages
    Powerful Essays
  • Better Essays

    Assertive Behavior

    • 1557 Words
    • 7 Pages

    Many people think of someone adamantly standing their ground, pushing for his or her own way, refusing to give an inch. Others think of someone who is generally pleasant but stubborn on certain issues. Assertive behavior is a natural style that is nothing more than direct, honest and respectful while interacting with others. Assertiveness is the most desirable human behavior. It is the behavior required for “win-win” outcomes in negotiation, conflict resolution, family life and normal business dealings. We humans use assertive and nonassertive behavior and aggressive behaviors. These styles create many problems in relationship, business dealings and social interactions. All of us use all three behavior styles through our lives. They are:…

    • 1557 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Worldcom Case Study

    • 4827 Words
    • 20 Pages

    A fundamental problem facing managers in the 1990s is how to exercise adequate control in organizations that demand flexibility, innovation, and creativity. Competitive businesses with demanding and informed customers must rely on employee initiative to seek out opportunities and respond to customers' needs. But pursuing some opportunities can expose businesses to excessive risk or invite behaviors that can damage a company's integrity. Consider the spate of management control failures that have made headlines in the past several years: Kidder, Peabody&. Company lost $350 million when a trader allegedly booked fictitious profits; Sears, Roebuck and Company took a $60 million charge against earnings after admitting that it recommended unnecessary repairs to customers in its automobile service business; Standard Chartered Bank was banned from trading on the Hong Kong stock market after being implicated in an improper share support scheme. The list goes on. In each case, employees broke through existing control mechanisms and jeopardized the franchise of the business. The cost to the companies- in damaged reputations, fines, business losses, missed opportunities, and diversion of management attention to deal with the crises-was enormous. How do senior managers protect their companies from control failures when empowered employees…

    • 4827 Words
    • 20 Pages
    Good Essays

Related Topics