Corporate Social Responsibility The Aim Term Paper

Length: 2 pages Sources: 2 Subject: Business Type: Term Paper Paper: #64236251 Related Topics: Corporate Social Responsibility, Corporate Strategy, Social Responsibility, Antitrust Practices
Excerpt from Term Paper :

This strategy was successful for some time but when WorldCom tried to acquire MCI (a company with two times more revenues than WorldCom), the binge of acquisitions was ended due to objections from antitrust and other stakeholders.

WorldCom's strategy was to display revenues and profits in extremely positive basket; for which the company had to make false misstatements in their accounting records. I think, it was the social and ethical responsibility of WorldCom to avoid misinterpretations in their financial statements and to show clear picture of the company to its stakeholders.

This strategy resulted in expansion of WorldCom through acquisitions and the expansion became so huge that the management of WorldCom was unable to handle the business. The debt of the company touched $41billion with $11billion of accounting frauds and misinterpretations. These all were the fruits of strategies implemented by Ebber just to display a very sound and positive picture of the company to its stakeholders. Another element which contributed towards failure of WorldCom was distribution of personal loans by the company. (Crawford 2005)

WorldCom should have made its internal controls strong through proper implementation of corporate governance. All the decisions were made by Ebber...

...

This was a question mark on the integrity of corporate decisions. (Crawford 2005) Thus instead of going for acquisition, WorldCom should have implemented major changes in business, management and the ethical trainings so that corporate behavior would have changed. WorldCom should have cleared all debts by selling the previously acquired companies and squeezing their business activities from far flung areas in which corporate governance cannot be practiced and proper internal controls cannot be implemented. There was a need for proper ethics training and code of ethics so that the flawed strategies of management should have been avoided and WorldCom could have enjoyed the pleasures of a new life.

References

Besser, T. And Miller, N. (2008). Is the good corporation dead? Journal of Socio-Economics, 30 (3). 221-241.

Crawford, K. (2005). Ex-WorldCom CEO Ebbers guilty: Faces up to 85 years in prison after being convicted on all nine counts in accounting fraud. Retrieved on May 7, 2011, from http://monev.cnn.eom/2005/03/l5/news/newsmakers/ebbers/index.htm?cnn=yes

Sidak, J.G. (2003). The failure of good intentions: The WorldCom fraud and the collapse of American telecommunications after deregulation. Yale Journal on Regulation, 20(2),…

Sources Used in Documents:

References

Besser, T. And Miller, N. (2008). Is the good corporation dead? Journal of Socio-Economics, 30 (3). 221-241.

Crawford, K. (2005). Ex-WorldCom CEO Ebbers guilty: Faces up to 85 years in prison after being convicted on all nine counts in accounting fraud. Retrieved on May 7, 2011, from http://monev.cnn.eom/2005/03/l5/news/newsmakers/ebbers/index.htm?cnn=yes

Sidak, J.G. (2003). The failure of good intentions: The WorldCom fraud and the collapse of American telecommunications after deregulation. Yale Journal on Regulation, 20(2), 207-267.


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