Table of Contents
Day to Day Operations
Cynthia Cooper and the Culture
1)Provide a Mission Statement and brief background about WorldCom. Briefly explain how WorldCom did not honor their statement. WorldCom - "our objective is to be the most profitable , single source provider of communications services to customers around the world. Unstated Mission - Increase shareholder value." WorldCom's mission statement neatly encapsulated aspirations and strategies to be the leading facilities-based provider of end-to-end Telecommunications and Internet services to business customers globally".(WorldCom.com) WorldCom was the second largest long distance phone company (AT & T was the largest) in the United States. WorldCom grew largely by acquiring other telecommunications companies most notably MCI. It was based in Clinton, Mississippi before moving to Ashburn, Virginia. They employed state-of-the-art technologies over fibre-optic city networks, national and international networks and transoceanic cable systems. The networks provided end-to-end, high-capacity connectivity to hundreds of thousands of commercial properties world-wide. Voice, Data and Internet services are effectively delivered over a single seamless network WorldCom did not honor their mission statement they cared more about shareholder value and unfortunately creating shareholder value is not a really useful mission statement. It provided no meaningful direction to employees or managers. WorldCom created an environment that pitted the workers against each other to make financial goals therefore they did not respect their employees. If the employees didn't make their goals they were terminated. Also the expectations for everyone were set too high and people were unable to meet these expectations without doing something, illegal or unethical. 2)Refer to the Ethical Principles/Tenets posted in doc sharing. Explain specifically, which ethical principles/tenets were compromised by the key administrators in the WorldCom scandal. (Name the administrators and their titles in your explanation.) The following ethical principles/tenets of "Honesty" were violated by the following: Scott Sullivan, former CFO -he hid 3.8 billion in inflated profitsand suggested a reserve account to be used to boost earnings. These transactions violated the accounting rules. David Myers former controller lied about the financials of WorldCom. Betty Vinson, senior manager corporate accounting division along with Troy Norman a mid level accountant and their supervisor Buford "Buddy" Yates decided which specific accountant to adjust, and physically made changes in WorldCom's Accounting System (Cooper 5) Charles Cannada, CFO violated all rules and continued to go after acquisitions even when he saw the numbers failing. Bernie Ebbers, CEO and founder of WorldCom was dishonest and did not value integrity.(Ethics 353) Audit Partners at Arthur Anderson - acted in their own self interest by manipulating the system to accumulate wealth for them. Steve Dobel genuinely showed "caring for others" when he tried to warn Cynthia Cooper not to step on toes and to get along with Diana. (Cooper 11) Cynthia Cooper, Internal Auditor showed the ethical principle/tenet of accountability.(Ethics 3)Explain how WorldCom's administrators acted in their day-to-day behavior patterns that were inconsistent with what was going on. The administrators went about work as usual. They did not change their lifestyles or work habits. They put on the appearance that everything was alright and that the company was doing good. In the midstof the bankruptcy it was business as usual. WorldCom continues to acquire more acquisitions as if they weren't in debt. The administration still had their lavish lifestyles and brought homes, cars and luxury...
Please join StudyMode to read the full document