Worldcom Ethics

In: English and Literature

Submitted By botan
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WorldCom’s Ethics and Competitiveness
By NaShawn Branch

“A man without ethics is a wild beast loosed upon this world.” - Albert Camus

Nobel Peace prizewinner, Albert Camus compared the actions of an unethical man equal to that of a beast. Following Mr. Camus’s assumptions leads one to question, are business leaders who act in an unethical manner considered beastly? How have unethical business leaders changed the way in which companies do business? All businesspersons that act in an unethical manner, regardless on the time era, eventually fail and the ramifications always affect society in the long-term. The socially irresponsible and illegal behavior by these organizations and their leaders cause hardship for thousands of people, damage the loosely woven fabric of civil society, and contribute in creating a moral climate of distrust and cynicism. (Berry & Workman, 2007) Consequently, the lack of integrity degrades the public perceptions and therefore companies become financially bankrupt. The purpose of this paper is to outline unethical violations using World Com as an example. This paper examines the cultural context, the adverse change in business practices, and new research on ethics in the communications industry.

Cultural context in the WorldCom
Before MCI acquired WorldCom, this was the ‘goliath’ of the communications industry. WorldCom was one of the largest telecommunications companies with nearly $160 billion in assets. In 2002, the entire globe was rocked by the WorldCom accounting scandal that led to the bankruptcy of the fourth-ranked Fortune 500 telecom company, and raised several questions in relation to corporate governance, ethical leadership and corrupt practices in American companies.(Pandey & Verma, 2005) Stakeholders who fueled the philosophy of a fast growth culture in which the goal was to become the number one…...

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