Worldcom Ethical Case Study

Introduction
Baby Boomers & Generation X well remember rough of the greatest scandals from the US concern history: Enron accounting fraud, Tyco multinational Theft, and MCI WorldCom Accounting scandal (Wikipedia, 2012). In each of these cases, executive military group acted in an unethical manner in their business practices. Merriam-Webster defines ethics as, the discipline relations with what is good and bad and with moral affair and obligation (2012). Relating ethics in business or business ethics, Pastan (2006) noted it is the application of the discipline, principles, and theories of ethics to the organizational context. Pastan (2006) bring forward noted, Ethical behavior in business is critical. When business firms argon supercharged with infractions, and when employees of those firms come under legal investigation, there is a concern raised about moral behavior in business. Hence, the level of mutual trust, which is the installation of our free-market economy, is threatened. One of the cases where a business was charged with such unethical infractions is WorldCom. Scharff (2005) reported, WorldCom, now named MCI, of late emerged from bankruptcy protection after reporting accounting irregularities of $11 billion.



Scharff (2005) further noted, On March 2,2004 Bernie Ebbers, WorldComs ex-Chief Executive Officer, was charged with conspiracy to commit securities fraud, securities fraud, and falsely filing with the sec and on May 24,2004 six additional counts were filed against him. On March 15, 2005 Ebbers was found guilty on all nine counts and faces a supreme penalty of 85 years in prison and an $8.25 one thousand thousand fine.
WorldCom Ethical Problems
Moberg & Romar wrote, three major issues in the pass by of WorldCom: the corporate strategy of growth through acquisition, the use of loans to sr. executives, and threats to corporate governance created by chumminess and lack of arms-length dealing (2003).
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