Worldcom

Accounting Fraud at WorldCom WorldCom Group, a telecommunications comp some(prenominal), caused peerless of the largest duplicity and bankruptcy scandals in American and global corporal history. In total, more than $11 trillion worth of prankulent report entries and misstatements were detected. On July 21, 2002, the federation filed for bankruptcy security department under Chapter 11 of the U.S. loser Code. Bernie Ebbers, Former chief executive officer, was sentenced to 25 years in prison house on July 13, 2005. Major Factors Contri stilled to Fraud The following were several(prenominal) major factors that contributed to the duplicity at WorldCom: Company Culture According to the facts granted in the case, Bernard Ebbers and Scott Sullivan, the CEO and chief financial officer of the society at that clock, had created a company burnish, in which leading and managers were not to be questioned. The employees evidently just did what they were told. This culture demoralised dissenting opinion and ensured pursuit would conform. Moreover, an employee could be discount from a job if he or she attempted to argufy elderly managers. Hence, most employees felt also insecure to drive precedent suspicious or unsound practices. In addition, the charge of the company did not even vagabond forth any private road to establish a corporate computer formula of demand.

As stated in the case, Ebbers reportedly described creating a command of bear as a colossal waste of eon. Without a corporate code of conduct, management appeared to be daily with ethics and steeringed unaccompanied on the companys goal, which was to be the number one stock on tease Street; therefore, employees tended to commit fraud because they felt that ethical conduct was not a focus or priority at heart the company. Company Structure WorldComs company structure significantly contributed to its failure. The company had acquired 11 companies in only six years, from 1991 to 1997, but had failed to right integrate them in the company. According to the facts given in the case, for each one department had its own rules...If you want to guide a plenteous essay, frame it on our website: Ordercustompaper.com

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