Worldcom

Accounting Fraud at WorldCom WorldCom Group, a telecommunications comp some(prenominal), caused one of the largest lampoon and bankruptcy scandals in American and global corporate history. In total, more than $11 billion worth of prankulent report entries and misstatements were detected. On July 21, 2002, the federation filed for bankruptcy protection under Chapter 11 of the U.S. unsuccessful person Code. Bernie Ebbers, Former chief executive officer, was sentenced to 25 years in prison house on July 13, 2005. Major Factors Contri anded to Fraud The pursual were several major factors that contributed to the fraud at WorldCom: Company cultivation According to the facts given in the case, Bernard Ebbers and Scott Sullivan, the CEO and CFO of the go with at that clock, had created a company burnish, in which leaders and managers were not to be questioned. The employees simply just did what they were told. This culture discouraged disagree opinion and ensured follower s would conform. Moreover, an employee could be discount from a muse if he or she attempted to argufy senior managers. Hence, some employees felt too insecure to drive forward risible or fraudulent practices. In addition, the charge of the company did not even put forth any effort to work a corporate computer code of demand.

As verbalise in the case, Ebbers reportedly described creating a code of digest as a colossal waste of time. Without a corporate code of conduct, management appeared to be insouciant with moral philosophy and focused solely on the companys goal, which was to be the number one stock on circumvent passageway; therefore, employees tended to commit fraud be cause they felt that ethical conduct was not! a focus or priority at flavour 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 draw in a plenteous essay, order it on our website: OrderEssay.net

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