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Should Worldcom Ceo Bernard Ebbers' Been Sentenced to quarter of a century in Prison?

Introduction

The WorldCom scams that came to light in 2002 was an example of a lot of things that went

wrong within the business. Unethical conduct by the senior management beginning with Key

Exec Officer (CEO) Bernard Ebbers was certainly at the front of these challenges. The

question can be should a CEO like Ebbers had been sentenced to prison pertaining to his legal responsibility in the

WorldCom scandal? My answer is certainly, he should've gone to jail as well as other CEOs who

engage in dishonest conduct which will result in laws being violated. I will support my answer by

taking a look at the duties of any CEO, concentrating on leadership tasks and responsibility. I

will talk about causes of honest problems in CEOs and complete by speaking about utilitarian and

deontological ethical problems as they pertained to Ebbers.

History

As the telecommunications industry slowed in the late 1990s, WorldCom's stock price began

to decrease. Ebbers came under pressure from finance institutions to cover perimeter calls about

WorldCom stock he used to finance other businesses (Vasatka, 2007). From 99 to 2002, a few

WorldCom senior executives engaged in fraudulent accounting practices. These types of practices had been

created to portray losses as progress to the general public. Ebbers resigned as CEO under pressure pertaining to

many reasons not related to the accounting fraud about April 29, 2002 (Beresford, Katzenbach &

Rogers, 2003).

Cynthia Cooper led an internal examine investigation of suspected accounting irregularities in

May-June 2002. Relating to Ms. Cooper's assertion, she talked about the research with

WorldCom Main Financial Expert (CFO) Scott Sullivan upon June 12, 2002. Your woman then reviewed

her investigation with two others on June 13, 2002. They were Max E. Bobbitt, Chairman in the

Taxation Committee, WorldCom Board of Directors and Mr. Farrell Malone, engagement partner of

KMPG, LLP, an external audit agency.

The Board of Directors attained on 06 25, 2002 and chose to publish a revised financial

statement pertaining to 2001 and first quarter 2002. They also decided to report this action for the U. S.

Securities and Exchange Commission (SEC) and the events leading up to it (WorldCom, 2002).

The SEC launched its own research into the subject (Vasatka, 2007) and helped bring civil action

against many WorldCom professionals in 06 2002 (SEC, 2002).

WorldCom recorded for personal bankruptcy protection on July 21, 2002. The U. S i9000. Justice Office

helped bring criminal charges against Ebbers and several additional WorldCom management. For his role in

the scandal, Ebbers was found guilty in Government court about March 12-15, 2005 and after that on Come july 1st 13, 2005

sentenced to more than 20 years in jail.

The CEO like a Leader

To measure the issues in cases like this from a normative values viewpoint, I think that we

should see what a CEO does in performing the leadership functions of their work as they connect with

honest issues. A fantastic description with the CEO's management role are available in The Duties of a

Chief Executive Officer (Wibowo & Kleiner, 2005). The authors refer to information in CEO

Compensation that the CEO " is responsible for the success or failure of your organization. ”

(McClayland, 2002). The dictionary describes responsibility since: 1: the product quality or express of being

responsible: as being a: moral, legal, or mental accountability m: RELIABILITY,

TRUSTWORTHINESS 2: something which is why one is accountable: BURDEN

(Merriam-Webster On the web Dictionary, 2008). Therefore , responsibility is linked to good values.

Wibowo and Kleiner refer to five duties that Entrepreneurs have in profit and nonprofit

organizations (McNamara, 2002). These types of responsibilities are leader, futurist or details

hurdle, decision developer, manager and board creator. The CEO's leadership duties include

" shows the board of directors several advice, promotes organizational and stakeholder improvements...

References: (Continued)

Lewis, T. J. Understanding Quotes From Wisdom Rates: Quotations to inspire and

Problem. Retrieved July 12, 2008 from http://www.wisdomquotes.com/cat_knowledge.html

Lewis, Kenneth D. (2002). The responsibility of the CEO: Featuring ethical and moral management. Vital Speeches and toasts of the Day, 69(1), 6-9. Gathered July 17, 2008, by ABI/INFORM Global database. (Document ID: 219827251).

Wilson, Robert C. (1989, May). Not any Fair Move for Investors. Chief Executive, (51), 30. Retrieved July 17, 2008, by ABI/INFORM Global database. (Document ID: 899688).

Weinberg, Neil. (2002). Asleep at the change. Forbes. com. Retrieved July 18, 08 from

http://www.forbes.com/forbes/2002/0722/038.html

Waggoner, John. (2002). WorldCom difficulties started since 2000. USA Today. Recovered July 18, 2008 via http://www.usatoday.com/money/telecom/2002-07-15-worldcom-inside.htm

05.09.2019

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