Ethics from a financial perspective
Firms have the capability to put emphasis on their view of finance. They accomplish this at the expense of their stakeholders and clients. As a result, this has made them to face consequences of their actions. WorldCom is a telecommunication organization that started small. It offers distant phone services to diverse enterprises and to the residents. Currently, this firm has advanced and it is ranked as the top third company in America.
The CEO of the firm Bernnie Ebbers has transformed it to a level of receiving revenue that amounts to $30 billion. At WorldCom, the focus of the management is to deal with finance and facilitate growth of the company. It is a reliable firm that expects its staff to meet its goals by offering services of high quality. Furthermore, this is a firm that has become popular because it incurs high revenue ((Breeden, 2003). This further benefits both the management and workers which is clear when they are highly compensated. This step also increased the salaries of workers due to increase of income.
At WorldCom, the management created a working place that was appropriate for purpose of sole proprietorship. It was not supposed to serve as an organization. This style of administration subjected the staff to perform and meet its financial gains. At some point, this firm was reported to be associated with fraud. People in charge became hesitant in finding out those involved in the scandal. This means that the hard earned cash of investors would vanish in the process.
Initially, WorldCom had a stock price of $64.50, and it fell to $0.83. This made the firm to run bankrupt and lay off approximately 17,000 workers. To avoid this downfall, the management at WorldCom should have embraced ethics to make proper use of its finances.
In re Worldcom, Inc. New York: (2003).
Breeden, (2003) Report by the board of directors of WorldCom, Inc.
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