Worldcom Ethical Dilemma - 979 Words

In 1998, Betty Vinson was promoted to a senior manager in the firm’s corporate accounting division. Two years later in her position she experienced a major ethical dilemma. The company WorldCom was a very successful company up until the middle of 2000 when the telecommunication industry entered a protracted slump. The company’s earnings were not Wall Street expectations, and it was saddled with unpaid bills. Vinson’s job was to repair the problem by doing some wrong accounting practices. The ethical dilemma is weather she should or shouldn’t do and the consequences if she does or doesn’t do. What ethical decision should Betty Vinson take? The first right decision is to do the wrong accounting practice. Vinson was told that it was only†¦show more content†¦The WorldCom employees could loose their jobs and causing higher unemployment. Other businesses could loose they’re jobs too if they had strong relationship with WorldCom. The picture would not look good for the community as a whole. The members of the board would feel guilty not seeing this mistake in their hands of power. The members of the board would leave the shareholders empty handed. All of this could occur if Vinson decided not to take any part of wrongdoing. WorldCom would have no chance producing revenue and therefore it would go bankrupt. The right decision I personally would make, would be the second decision-making. The reason for this action is because I care about my status and not off others. I care that I do not commit any White Collar Crime. My belief is that sooner or later the actions will be caught and I do not want to be part of it. I am pretty sure that I could find another job somewhere else with a great history of a job position. My primary virtue is to do the right thing. I hate doing something that I believe is not fair and unethical. I could not accept being a senior manager to Director of Management Reporting, when I know how wrongfully I did my previous job. I care what I love, and that is my family. If my wife urged me to quit the job, I would give thoughts about it but still agree with her. The ability to make my family happy is far more important than the employees at work.Show MoreRelatedCorporate Ethics and the Employee1555 Words   |  6 PagesCorporate Ethics and the Employee Introduction The WorldCom case presents two different responses to WorldComs financial difficulties. Betty Vinson acted unethically and illegally, was caught and was punished for it. Cynthia Cooper acted ethically and legally, was recognized and lauded for it. While their ethical positions might initially seem simple, the reality is complex. Likenesses of Betty Vinson and Cynthia Cooper On the face of this situation, there are many likenesses between VinsonRead MoreThe Concepts of Ethics and Social Responsibility866 Words   |  4 Pagesrational. People invest in irrational ways all the time, and sometimes that includes ethics, a good example being ethical mutual funds. Yet, even Friedmans argument does not discount that ethics can be a part of what is our purpose? or any other ethical question. An example firm could be the Body Shop, a company that earns its money specifically because it has a particular ethical outlook. The ethics of the company are a selling point, something that attracts customers to the brand. The ethicsRead MoreEthical Leadership in the Master of Science Leadership Program776 Words   |  4 Pagesdecision, their employees, and goals of the organization. There are many readings that describe ethics and leadership, but ethical leadership is basically knowing your inner values and having the courage to steadfastly live by them for the purpose of the common good. Southwestern Colleges Master of Science in Leadership program has given me a firm understanding of how important ethical reasoning is and how it impacts, good and bad, an organization. My first artifact, LEAD505 Leadership and EthicsRead MoreA Case Of Accounting Fraud1555 Words   |  7 PagesAnother major case of accounting fraud driven by the desire to build and protect one’s personal financial condition is the WorldCom debacle. Bernie Ebbers had to show continually growing net worth in order to avoid margin calls on his own WorldCom stock that he had pledged to secure loans. When WorldCom, the telecommunications giant, failed and was put into bankruptcy, the U.S. witnessed the largest accounting frauds in history. Former CEO, Bernie Ebbers, was convicted of orchestrating this accountingRead MoreEssay about Revenue Recognition763 Words   |  4 Pagesusers. In 2002, WorldCom a telecommunication company, filed for bankruptcy. It was later revealed that the company was involved with improper accounting in two major forms. First WorldCom inflated revenues to increase profits, thereby increasing stock prices, and increasing the satisfaction of stakeholders. Second, the company understated line costs. Revenue is important to users of financial statements because it helps them evaluate a company’s performance and prospects. WorldCom violated the revenueRead MoreWorldcom Failure1198 Words   |  5 PagesWorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7, 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times.Read MoreVerizon Wireless1280 Words   |  6 PagesDevon Daniel Verizon Verizon stars with WorldCom in 1983 when Murray Waldron and William Rector came together to sketch out a plan create a long-distance telephone service. Long Distance Discount service, became their new company that began operating as a long-distance reseller in 1984. The new company grew quickly in the next fifteen years, over time it change to WorldCom. The company became one of the largest telecommunications corporations in the world. They also became the largest bankruptcyRead MoreEthics Assignment: Worldcom Case653 Words   |  3 PagesEthics Assignment: Worldcom case Introduction: On 21 July 2002, WorldCom, Inc., the then-second largest telecommunications company in the U.S. filed bankruptcy protection. Its failure was due to its executives’ bad business behaviors to manipulate earnings with improper accounting entries. The key persons involved in the fraud were as follows; CEO Bernard Ebbers, CFO Scott Sullivan, the accountants were Bufford Yates (Director of General Accounting), David Meyers (Controller), Troy Norman (DirectorRead MoreWorldcom Case Study16775 Words   |  68 PagesAn Ethical Dilemma at WorldCom: A case study of Cynthia Cooper The Scenario One May afternoon, while sitting in his cubicle at WorldCom Inc. headquarters located in Clinton, Mississippi, Gene Morse was stunned to find an accounting entry for $500 million in expenses, which was not accounted for with any invoices. He immediately reported this entry to his boss, vice president of internal audit Cynthia Cooper (Pulliam Solomon, 2002). Little did they know at the time that this discovery would beginRead MoreThe Ethics Of The New Employees964 Words   |  4 Pagesinfluence their followers to act ethically, they have first to communicate the ethical standards and continuously back up the same with real examples. This implies that writing a code of ethics is not just enough to step of indoctrinating ethics in the organization. As such, ethics should be inculcated early in every sphere of the organization life. Ethical leaders should be those people who do not tolerate instances of ethical lapses. Despite the spirited effort by leaders to curb instance of unethical