Worldcom Ethics Analysis

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I. WorldCom Company Analysis WorldCom started as a small long-distance telephone company in 1983 and grew to become a successful international telecommunication giant by year 2000 with revenue of $35.2 billion. This phenomenal growth and success of WorldCom is attributed to its strategy of growing through sixty-five mergers. WorldCom started new in the business of providing cheaper long distance telephone services and over years it got well established in the business of providing commercial telecommunication services of data and internet. Company enjoyed a very good reputation among the Wall Street analysts and was one of their favorites due to WorldCom’s unprecedented growth and financial performance in the telecommunications industry. Company was also likened by investors and investment banking firms due to its rising stock price and strategy of growing with mergers & acquisitions. However its reputation was not good among some of its customers due to services provided and inaccuracies in the billing systems coming from continuous mergers at WorldCom. Internally company’s reputation was not good among its employees, as they were constantly challenged to integrate the acquired company’s technology and culture in the existing WorldCom operations. Rapidity of mergers and acquisition mounted an internal pressure on WorldCom’s management as they tried to create a seamless communications network in company’s operations. Company faced an immediate pressure from external environment because of lawsuits filed by its large customers like Cherry Communications, this damaged company’s reputation. Also, two to three of World-Com’s commercial customers filed for bankruptcy in any given quarter, this created a long term pressure on growth of WorldCom. Investigation from SEC mounted a big external pressure on WorldCom following which revealed multiple accounting frauds

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