Introduction and Aim of the Review This review of WorldCom is based on the Extraordinary Circumstances by Cynthia Cooper. The purpose of review report is to conclude whether WorldCom satisfied the Code of Ethics and the Attribute and Performance Standards set forth by the IIA. Background WorldCom was one of the largest telecom companies in the world during 1996 to 2002. The company helped to grow a small regional company that bought and re-sold long distance in the South into an international
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name was changed to LDDS WorldCom in 1995 and later just known as WorldCom. MCI‚ Inc. was a telecommunications company that was headquartered in Ashburn‚ Virginia. This was a result of the merger of WorldCom and MCI Communications. They used the name MCI WorldCom but officially became WorldCom on April 14‚ 2003 “as part of the corporation’s emergence from bankruptcy.” (MCI Inc) MCI had a history of acquiring companies that led to the breakup of the AT & T monopoly. WorldCom on the other hand‚ was
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executives and managers of WorldCom to "cook the books." Acquisition of other companies drove WorldCom to spend beyond their means; managers were told to spend whatever was necessary to increase revenue‚ even if it meant that long-term costs would outweigh the short-term gains. This fiscally unhealthy mentality led to a very bad decision to enter into long-term fixed rate leases for network capacity with extensive punitive termination provisions. Once the market for WorldCom ’s services started to cool
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WorldCom was a pre-eminent telecommunications company that dealt with the same ethical issues that many companies deal with today. Ethics is something that comes into play in every businesses day to day operations. A decision is it ethical or not‚ is something that every employee makes in today’s business environment. Ethics is a topic that needs to be talked about and reinforced on a reoccurring basis so that unethical events like what happened in WorldCom‚ do not happen. There were many unethical
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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 the world. Unstated Mission - Increase shareholder value." WorldCom’s mission statement neatly encapsulated aspirations and strategies to be the leading facilities-based provider of end-to-end Telecommunications and Internet services to business customers globally".(WorldCom.com) WorldCom was the
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WorldCom was born in 1983 with the name LDDS (Long-Distance Discount Service) in Clinton‚ Mississippi. In 1985 Early investor Bernard Ebbers becomes chief executive officers (CEO) of LDDS. The company became public in August 1983 with the acquisition of Advantage Companies Inc. In 1993 LDDS acquired long distance providers Resurgens Communications Group and Metromedia Communications in a three-way stock and cash transaction that created the fourth-largest long distance network in the United States
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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
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distracted from my ability to sympathize with Bernard Ebbers conviction. His defense team argued that the trial judge wrongly instructed the jury that it could convict Mr. Ebbers on the basis that he engaged in “conscious avoidance” of the fraud at WorldCom. It is evident that Ebbers took a blind eye to any consideration to analyze the good stuff from the bad stuff in this situation. He failed to calculate the considerations of utility and as a result he is paying the consequences through a substantial
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AUDIT FAILURE OF WORLDCOM Group 1 Background • WorldCom‚ first named LDDS (Long Distance Discount Services)‚ grew largely by aggressively acquiring other telecommunications companies in 1990s. • For a time‚ it was the United State’s second largest long distance phone company (after AT&T). Background However‚ the year 2002 comes… • In March‚ the SEC began to investigate WorldCom as it reported large profit while AT&T reported loss. • In May‚ Arthur Anderson was replaced by KPMG
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employees. Training can help to educate‚ raise awareness‚ and increase short and long-term company profits. WorldCom was a classic example of failed corporate governance‚ accounting abuses‚ and plain greed that could have been prevented through appropriate management and employee training. This paper will provide an example of a training plan that could have helped prevent the demise of WorldCom. Developing a Training Plan To increase the effectiveness of employees toward the achievement
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