traced back to 1983. The CEO‚ Bernard J. Ebbers‚ of WorldCom had very interesting beginnings. He invested in Long Distance Discount Services (LLDS) with eight other investors‚ and believed that the telecommunications industry was a very good business venture. In the beginning the lack of technical experience of the LLDS proved to be detrimental by creating a great deal of debt. The company enlisted Bernard J. Ebbers to create a sound and solid business. Ebbers proved himself to the company and others
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Greatest Happiness Principle. This means that the act will bring about far greater pains when they still eventually lose their jobs and pay in the long run. The total amount of pain is exemplified by the remorse and attacks on the conscience of Bernie Ebbers investors who are deceived into investing in WorldCom losing their investments‚ the auditors involved who might possibly lose their jobs for not spotting the errors and also the whole business community in general as people begin to lose confidence
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become a household phrase thanks to Bernard Ebbers‚ former WorldCom boss. In 2005 Bernard Ebbers was sentenced to 25 years in prison‚ one of the toughest sentences imposed on an executive‚ for overseeing the $11 billion WorldCom Fraud. Three years earlier the fraud came to light reducing the shares of stock worth more than $50 to a few pennies. This was not a minor fraud. Ebbers committed a fraud that caused investors to suffer huge losses. Ebbers was charged with conspiracy and securities
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aspects of the organizational behavior of WorldCom which may have led to its business failure. HISTORICAL BACKGROUND WorldCom was a company that was initially bound for success. It was founded in 1893 by a group of partners who was led by Bernard Ebbers. From its humble beginnings as an obscure long distance telephone company‚ WorldCom‚ through the execution of an aggressive strategy‚ evolved into the second-largest long distance telephone in the U.S. It grew exponentially from the beginning because
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WorldCom Inc was a telecommunication corporation. Bernard Ebbers was the former Chief Executive of the corporation. He was ultimately found guilty of accounting crimes which lead to a huge scandal. He constructed the unification with MCI‚ which at the time was the largest technology company in the US. This merger allowed a breakthrough into the monopoly AT&T had on the telecommunication industry at the time. The Scandal cause by Ebbers ultimately produced the ultimate demise and bankruptcy of
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bankers permissive‚ WorldCom’s organization structure and culture should take most of the responsibility that Ebbers could cooked the book by misleading Wall Street and its own employees. How WorldCom’s organization structure and culture contributed to pressure and group thinking extending the long period that finally led to the fraud? Analysis The fraud heavily attributed to the way the CEO Ebbers ran the company. First of all‚ WorldCom’s poor company culture led to a lack of a positive mechanism for
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Introduction WorldCom‚ the telecommunications giant‚ once was the largest telecommunications company in the world‚ with more than $30 billion annual revenue‚ $104 billion in assets and more than 20 million customers. John Sidgmore (2002)‚ Ebbers’ successor after the scandal‚ said “WorldCom is a key component of our nation’s economy and communications infrastructure.” However‚ the giant collapsed in 2002. 1. The Main Issue: Earnings Management 1.1 Definition of Earnings Management A commonly acknowledged
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Business Ethics Final Project Extraordinary Circumstances Stephanie Burg 2/16/2009 Table of Contents Mission Statement 3 Ethical Principles/Tenets 4 Day to Day Operations 5 Cynthia Cooper and the Culture 6 Conclusion 8 Works Cited 10 1)Provide a Mission Statement and brief background about WorldCom. Briefly explain how WorldCom did not honor their statement. WorldCom - "our objective is to be the most profitable ‚ single source provider of communications services to customers around
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Human Resource Management Department Brochure Team A HRM/300 October 7‚ 2014 Malcolm Mumford Human Resource Management Department Brochure Title of the brochure “Welcome to Hancock Manufacturing”. The Hancock Manufacturing Human Resources Management team has combine the experience of our entire team in order to answer common and not so common questions with this brochure. We at the Hancock Manufacturing Human Resources Management team recognize the experience each one of our members brings to this
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maintaining that 42% E/R ratio. From the beginning it committed itself to high growth strategies that relied on aggressive corporate and fraudulent accounting practices. There was no strategic committee and their decisions were mainly consisted of CFO Ebbers decisions. Corporate Governance WorldCom’s Board of Directors were inactive‚ not knowledgeable‚ and inexperienced. A Board of Directors that is active‚ involved‚ and knowledgeable of the organization is an important factor of an effective control
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