A Look Inside The WorldCom Scandal

WorldCom is the ultimate success story for telecommunications companies. Bernard Ebbers served as Chief Executive Officer (CEO) in 1985 and turned the company into a very profitable company at least from outside. In 2002, Ebbers resigned, WorldCom acknowledged the fraud, the company declared bankruptcy (Noe, Hollenbeck, Gerhart, and Wright 2007). The company is at the center of the largest fraud accounting in the United States. The annihilation of this telecommunication monster can be recognized as a number of factors including aggressive defensive organizational culture based on their power and bullying strategy they adopt.

WorldCom scandal is one of the biggest accounting scandals in the US corporate history. WorldCom is a US telecommunications company. World Communication Accounting scandal was released in 2002. The company adopted fraud accounting practices in the five quarters (the fourth quarter of 2001 and the first quarter of 2002) (The World Com Accounting Scandal, 2002). A famous telecommunications company WorldCom and accounting, auditing and consulting companies are involved in this large accounting fraud. WorldCom's corporate scandal eventually invited the company's stigma, the biggest bankruptcy in American history.

It is noteworthy that in WorldCom's accounting scandal, two accountants, Dan Renfroe and Angela Walter, each received a journal of $ 150 million and $ 771 million without detailed assistance. This is not uncommon for WorldCom, but it is not a correct accounting practice, as it violates bookkeeping and accounting principles. - From the day we can understand, our parents are trying to show a good example for us, please let us know the importance of good and evil and how to act in many situations. As we get older, our teachers, family and friends will also affect our daily lives. In our adulthood, we faced a moral or immoral everyday task in the situation we found ourselves.

From the collapse of Enron and WorldCom to global financial crisis, London's interbank interest rate conflict scandal, and recent Volkswagen events, rules are necessary but insufficient as a means to influence human behavior already it is clear. While legal compliance and risk management are still important in business, the data suggests that the goals in these areas are most effective. Because the corporate culture is established and strong actions based on principles and values ​​are promoted.