Worldcom Failure - 1198 Words

WorldCom 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. Some may argue that success is based on being at the right place at the right time with the right idea and the right amount of money. Other may debate that success is based on hard work and ethics that are accompanied by many failed attempts before†¦show more content†¦A large loan to senior executives epitomizes about conflict of interest and breach of fiduciary duty. WORLDCOM SCANDAL INVESTIGATION RESULTS Evidence shows that the accounting fraud was discovered as early as June 2001, when several former employees gave statements alleging instances of hiding bad debt, understating costs, and backdating contracts. However, WorldCom’s board of directors did not investigate these claims. Although employees and investors look for individual culpability, WorldCom’s organizational structure, group processes, and culture contributed to the fraud and length of time over which it occurred. The SEC’s investigation into the accounting fraud at WorldCom turned up several key players. The following is a list of high-ranking WorldCom executives and other employees who were implicated on the accounting fraud: * Bernard Ebbers - former CEO of WorldCom. Suspected in accounting fraud but no charges have been filed against him yet. * Scott Sullivan - former CFO of WorlCom. Indicted on charges of securities fraud, conspiracy, and false statements to the SEC. * David Myers - former cont roller of WorlCom. Charged with securities fraud, conspiracy, and false statements to the SEC. * Buford Yates Jr. - former director of general accounting. He pled guilty to charge of securities fraud and conspiracy. * Betty Vinson - former director of management reporting. Pled guilty to charges of conspiracy to commit securitiesShow MoreRelatedWorldcom Failure1194 Words   |  5 PagesExamining a Business Failure: WorldCom WorldCom was one of several large companies that failed because of inadequate organizational leadership, fraud, conspiracy, falsifying documents, and embezzlement. WorldCom has been classified as being â€Å"one of the biggest corporate scandals in Unites States history† (Zekany, 2004, p. 101). In 2001, the company’s financial condition began to decline due to the slowing telecommunications industry, which eventually put pressure on the company’s executiveRead MoreAccounting And Business Issues : Worldcom s Failure891 Words   |  4 PagesSection #3. Accounting and business issues WorldCom’s failure should be attributed to the following problems and reasons. At first, it should be pointed out that, from a small company to one of the biggest communications provider in the world, frauds went through WorldCom’s growth. Aggressive acquisition by leverage together with creating false decent financial statements had been WorldCom’s main strategy for fast growth when, in fact, it failed to create commensurate value by its own businessRead MoreBusiness Failure of Worldcom in the Light of Organizational Behavior Theories1313 Words   |  5 PagesExamining Business Failures Business Failure of WorldCom in the Light of Organizational Behavior Theories Abstract Business failures occur usually due to lack of organizational leadership and unethical practices prevalent within an organization. Managers and leaders tend to be a lighthouse for any organization and if they adopt unethical ways, then the entire organization suffer from extreme loss and disgrace. 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Another concept that plays a vital role is core competencies; they are capabilities that provide the organization a competitive advantage to ensure success in the marketplace. Strategic goals help organizations in prioritizing daily tasks, choosing achievements with measurable milestones and a purposeful direction. The purpose of the organization is toRead MoreEssay on Worldcom1595 Words   |  7 PagesRestoring Trust in WorldCom 1. What are the three or four central objectives that Breeden hopes to achieve with the proposals in â€Å"Restoring Trust†? Why is reform needed? What are the benefits? What are your concerns regarding the reform? The WorldCom Corporate Monitor, Richard Breeden, believed that in order to correct the ills that faced the company, WorldCom needed to adopt a strong Corporate Governance structure. The central objectives of his proposal â€Å"Restoring Trust† included improvingRead MoreEthics Research Essays984 Words   |  4 PagesHow leaders allocate rewards and status †¢ How leaders recruit, select, promote, and excommunicate (p. 246) The failure of Andersen and its clients to excel in these six areas of leadership caused the collapse of several business giants. Arthur Andersen is most closely associated with the collapse of Enron Corporation in 2001. However, Enron was not the firm’s first or only failure. â€Å"Enron was hardly the first corporate scandal in which Arthur Andersen was implicated. Three of the five largestRead MoreCompany Scandals Underpinned By Non Conformity And Accounting Principles1183 Words   |  5 Pagesbusiness owners, shareholders, the government and accountants to understand the financial position of a company. A failure to apply appropriate accounting principles can lead to inaccurate reports being used in business decision making. This may result in inappropriate investment and business decisions and lead to collapses as evidenced by the scandals surrounding One-Tel and Worldcom. Accountants employed by these business have been found to have acted unethically by manipulating the financial accountsRead MoreThe Accounting Fraud At Worldcom Essay1349 Words   |  6 Pagesthe consequences. One example of t his situation occurred when senior management member Gene Morse told an employee â€Å"If you show those damn numbers to the f****ing auditors, I’ll throw you out the window† (Kaplan, R.S., Kiron, D., 2007, p. 3).WorldCom showed no concern regarding an employee’s need and obligation to voice concerns on matters related to their job function. â€Å"Employees felt they did not have an independent outlet for expressing concerns about company policies or behavior† (KaplanRead MoreWorldcom Case Study1535 Words   |  7 PagesWorldCom Case Study: Lack of Leadership, Lack of Ethics Emily Fearnow ORG 500- Foundations of Effective Management Colorado State University – Global Campus Dr. Cheryl Lentz May 15, 2011 WorldCom Case Study: Lack of Leadership, Lack of Ethics A multitude of choices made by executives at WorldCom led to the ultimate demise of the company as it was previously known, the employees and their livelihoods’, and the trust of the American people. In a time when corporations

Ethical decision making free essay sample

Abstract Countertransference is how therapists distort the way they perceive and react to a client (Corey, Corey, and Callanan, 2011). Therapists are expected to identify and deal with their own reactions with consultation, personal therapy, and supervision that their clients will not be negatively affected by the therapist’s problem. Personal therapy is an effective way for therapists to raise their awareness of probable areas of countertransference. A therapist’s countertransference can brighten dynamics of a client. Countertransference can show itself in many different ways. Therapists also need to know how to make ethical decisions (Corey, Corey, Callanan). Responsibility implies that recognizing any conflicts between professional and personal values and also dealing with them effectively. No one ethical decision- making model is most effective, but professionals need to familiarize with one that best fits them. If you do not adequately deal with discomfort you expe rience with your client, it will influence your behavior in the future with that client. We will write a custom essay sample on Ethical decision making or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Introduction This week’s assignment will be discussing a conflict that occurred between a therapist and her client. Her son turns out to be, and her client is insulting all gay people to her, and this is a situation that she is trying to solve without having a problem with her client. Steps will be taking to making an ethical decision and also to a resolution later on in the assignment. The client will be included in making my decisions as well. The APA Ethics Code is important for decision- making in accounting for resolving ethical issues. Autonomy is the freedom of clients to be self- governing within their cultural and social framework (Corey, Corey, and Callanan, 2011). Nonmaleficence means to avoid doing harm. Beneficence is doing well for others while promoting the well -being of clients. Justice means to treat others justly and equally. Fidelity means professionals make real commitments and keep their promises. Veracity means to be truthful or truthfulness. All of these terms are the six basic moral principles for ethical decision making. Ethical Dilemma Case This case was between a counselor named Ruby, and a client named Henry (Corey, Corey, and Callanan, 2011). Henry is extremely hostile to people who are homosexuals and who have contracted AIDS. Henry is not in counseling for his feelings about gay people, but is there to work out his resentment over his wife who had left him. Henry stated that gay people are deviant, and that they deserve to contract AIDS if they do get them. Ruby has a son who happens to be gay, and she is taken aback by Henry’s comments about gay people. Henry’s insults towards gay people affect Ruby emotionally. Ruby has found that Henry’s views are interrupting her attempts to work with Henry (Corey, Corey, and Callanan, 2011). Ruby is starting to wonder if she should tell Henry that her son is gay or not (Corey, Corey, and Callanan, 2011). She is worried that is she does not address this issue to him that she will no longer be able to work with him. Then she wonders if she should talk to a colleague instead and not tell Henry how his insults affect her. She also wonders if she should tell Henry that it is bothering deeply by him being prejudice against gay people, but not tell him about her son. She wonders that because of her own countertransference that it may be best to just refer to him the reason she is having trouble working with him. Finally, Ruby thinks that she should just put her own feelings aside and attempt to work with Henry by reducing his negative reactions and prejudice against gay people (Corey, Corey, and Callanan, 2011). Steps to Resolution and Making Ethical- Decision-Making The steps I would take to towards a resolution would be to analyze the consequences, analyze the actions, and make a decision. Analyzing the consequences will help to consider the positive and negative consequences of the situation. â€Å"Who will be helped by what you do?†, â€Å"Who will be hurt?†, â€Å"What kinds of benefits and harm are we talking about?†, and â€Å"How does all of this look over the long and short run?† are questions to consider whenever in an ethical dilemma situation. Next, I would analyze the actions. I would consider all of my options from a different perspective. I would see if my options measured up against moral principles like equality, respecting peoples rights, honesty, recognizing the vulnerability of individuals weaker or less fortunate than others, fairness, and respecting the dignity of others. Then I would see if any of the actions that I was considering crossed the line, in terms of ethical principle. Finally, I would make a decision. I would take both parts of my analysis into account, and then I would make a decision. The steps I would take to ethical decision- making would be identifying the dilemma, identifying the potential issues, reviewing the relevant ethics code, knowing the applicable laws and regulations, and obtaining consultation, considering probable courses of action, enumerating the consequences of various decisions, and choosing what appears to be the best course of action. It is vital to determine whether a situatio n truly involves ethics or not (Corey, Corey, and Callanan, 2011). The first step to resolving an ethical dilemma is recognizing that a problem exists and identifying what that might be. After I have collected all the info I need to determine that there is an ethical issue, I would then describe the critical issues and forget about the ones that are not relevant to the issue. The next thing I would do is review the relevant ethics code (Corey, Corey, Callahan, 2011). This would mean I would consider whether my own ethics and values are consistent with the relevant codes. Then I would make sure that I was up to date on federal and state laws. Next I would consult with one or more colleagues that I trusted to obtain different perspectives on my concern and to come to the best possible decision. I would then take time to think about the range of courses of action. Then I would consider the implications of each course of action for the client, for me as the client, and for others who are related to the client. Finally I would make the best decision for the conflict, while considering the information received from various sources. The client would be involved in making decisions by me consulting with him fully and appropriately. I would make sure that the decision made was not insulting cultural values or experiences of the client (Corey, Corey, and Callahan, 2011). I would also make sure that the decision made was the best decision possible. APA Ethics Code The American Psychological Association (APA) revises and constructs ethic codes that strive to reflect the practical aspects and aspirations of ethical decisions created by the members of the organization (Fisher, 2009). The APA Ethics Code helps practioner’s be able to identify legal problems as they arise in work. Many of the situations practioner’s encounter professional and ethical judgment that will also have legal implications. The APA guidelines for psychotherapy with