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Executive Summary
WorldCom, now named MCI, recently emerged from bankruptcy protection after reporting accounting irregularities of $11 billion (Young, 2004). These accounting irregularities have resulted in many of WorldCom's previous executives being prosecuted on securities charges. This article will summarize many of WorldCom's shortcomings and evaluate how the company is moving forward in light of their past. In the past 18 months MCI has fired the CEO, COO, CFO, controller, general counsel, the entire board of directors and over 400 finance and accounting employees. In addition to establishing a code of conduct and guiding principles, Michael Capellas, MCI's current CEO, has established an ethics office, hired a Chief Ethics Officer, and required all MCI employees to have extensive ethics training. However, it remains unclear if these actions are enough. This article also suggests some additional actions MCI can take to better establish a culture of ethical values.
WorldCom, now named MCI, recently emerged from bankruptcy protection after reporting accounting irregularities of $11 billion (Young, 2004). As part of their emergence settlement, MCI paid the securities and Exchange Commission (sec) fines totaling $750 million and former bondholders received 36 cents on the dollar in stock in the new company (Young, 2004). These accounting irregularities have resulted in many of WorldCom's previous executives being prosecuted on securities charges. On March 2,2004 Bernie Ebbers, WorldCom's ex-Chief Executive Officer, was charged with conspiracy to commit securities fraud, securities fraud, and falsely filing with the sec and on May 24,2004 six additional counts were filed against him (Davidson, 2004; Moritz, 2004). On March 15,2005 Ebbers was found guilty on all nine counts (Crawford, 2005) and faces a maximum penalty of 85 years in prison and an $8.25 million fine (Davidson, 2004). On the same day the additional charges were filed against Ebbers, Scott...

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Worldcom. Anti Essays. Retrieved December 18, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Worldcom-104612.html