Business Failure Essay

921 words - 4 pages

Business Failure
Lorraine M. Sievers
University of Phoenix Online

Examining a Business Failure
Ethical Integrity is doing what is right and fair concerning people dealing with people. Corporations should make an effort to identify individuals and institutions that exemplify good work, work that is excellent in quality, socially responsible and meaningful to its practitioners and to determine how best to increase the good work in society. Most companies have a Code of Ethics in place to aid them in doing so.
WorldCom
The need for ethical decision-making has become increasingly evident in today’s business environment. In the case of WorldCom, a national company, ...view middle of the document...

During the 1990s, Bernie Ebbers stayed more focused on achieving substantial growth through business acquisitions and he decided to pay for this business acquisition binge by inappropriately using the valuable stock of WorldCom.
Contributions of Leadership, Management and Organizational Structure
Comparing the old CEO to the new CEO Michael Capellas, I would say that the old CEO was not a perfect manager and, of course, I am not sure how good Michael Capellas would be. What I can say, is that Ebbers would not say much about the company’s financial status and neither did the new CEO Capellas. Although Ebbers was fiercely ambitious and driven, his ambition was directed toward WorldCom rather than to himself (Robbins & Judge, 2007, p. 436). According to Scharff, they fired the CEO, COO, CFO, controller, general counsel, the entire board of directors and more than 400 finance and accounting employees (Scharff, 2005). This shows that upper management along with lower management did not operate ethically within the company. Several statements have been made stating that they were operating in something called groupthink. Groupthink is caused when concurrence seeking becomes paramount in team decision-making. groupthink may have contributed to the number of people involved in the unethical behaviors as well as the length of time over which WorldCom’s fraud occurred, groupthink does not resolve the ethical concerns with the senior level executives or the board of directors responsible for creating the culture that led to these events (Scharff, 2005)
The blame for the failure of WorldCom was put on many people, but in all actuality the SEC can say everyone who had any connection with WorldCom would be the blame for the failure. The CEO, CFO, board members, employees, and even the auditors are to blame for the failure. I am sure they were...

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