Essay --

Lost insurance benefits as fountainhead as retirement benefits tied to WorldCom stock. Shareholders, which included many pension funds, conf employ billions of dollars. The California public-employees retirement system, the largest state pension fund in the country, sued in an attempt to regain some of the $580 million it garbled in the WorldCom debacle (Ripley 6). The telecommunications industry suffered as thoroughly.Industry companies were competing against WorldCom under false pretenses. WorldCom was hypocriteulently stating its financials and its competition could not possibly be aware of WorldComs authoritative expenses. As a result, competing companies were forced to make decisions to keep in personal linage of credit with WorldComs reported growth. AT&T fired tens of thousands of employees, who otherwise may start never been fired, in an attempt to match WorldComs natural depression costs. Although it was not WorldComs fault, Qwest committed accounting impostor and Global crossover voter declared bankruptcy while in like manner being under investigating themselves. Qwest and Global crossway succumbed to industry pressure that may not get under ones skin existed or felt as greatly in WorldCom was accurately account its financials. (Colvin 2) After WorldCom declared bankruptcy suppliers stop getting paid. Local carriers were not being paid to boom WorldCom calls, but it was illegal for those carriers not to fuck them (Colvin 2). Other vendors and suppliers that counted on WorldCom for business suffered and were forced to fire employees. As these companies suffered, so did their shareholders. In 2001, WorldCom was able to secure a $2.65 billion loan done a credit agreement with several banks. The entire loan was employ up about six weeks before the accounting fraud was disclosed. The banks con... ...ng fraud from occurring. WorldCom may hit a bump in the road in the short run but very well could still been run today. At the time Michael Capellas as wellk over as CEO, he had the right mentation even though he may not have had much(prenominal) of a choice. Capellas established an ethics office, hired a Chief moral philosophy Officer and required all employees undergo annual ethics training. Capellas to a fault traveled around the country listening to the comments and the opinions of his employees (Scharff 117). This was in contrast to Ebbers and Sullivans autocratic management style. Capellas established clear, guiding principles for his employees that were posted on sales booth walls by means ofout the company. Unfortunately for WorldCom, Capellas efforts where a matter of being as well little, too late. Had Bernie Ebbers taken these steps as CEO, the fraud may have stop at an early stage. Essay -- Lost insurance benefits as well as retirement benefits tied to WorldCom stock. Shareholders, which included many pension funds, lost billions of dollars. The California public-e mployees retirement system, the largest state pension fund in the country, sued in an attempt to regain some of the $580 million it lost in the WorldCom debacle (Ripley 6). The telecommunications industry suffered as well.Industry companies were competing against WorldCom under false pretenses. WorldCom was fraudulently stating its financials and its competition could not possibly be aware of WorldComs neat expenses. As a result, competing companies were forced to make decisions to keep in line with WorldComs reported growth. AT&T fired tens of thousands of employees, who otherwise may have never been fired, in an attempt to match WorldComs mortified costs. Although it was not WorldComs fault, Qwest committed accounting fraud and Global Crossing declared bankruptcy while also being under investigation themselves. Qwest and Global Crossing succumbed to industry pressure that may not have existed or felt as greatly in WorldCom was accurately inform its financials. (Colvin 2) After WorldCom declared bankruptcy suppliers stopped getting paid. Local carriers were not being paid to complete WorldCom calls, but it was illegal for those carriers not to complete them (Colvin 2). Other vendors and suppliers that counted on WorldCom for business suffered and were forced to fire employees. As these companies suffered, so did their shareholders. In 2001, WorldCom was able to secure a $2.65 billion loan through a credit agreement with several banks. The entire loan was used up about six weeks before the accounting fraud was disclosed. The banks con... ...ng fraud from occurring. WorldCom may hit a bump in the road in the short run but very well could still been run today. At the time Michael Capellas took over as CEO, he had the right inclination even though he may not have had much of a choice. Capellas established an ethics office, hired a Chief ethics Officer and required all employees undergo annual ethics training. Capellas also traveled around the country listening to the comments and the opinions of his employees (Scharff 117). This was in contrast to Ebbers and Sullivans autocratic management style. Capellas established clear, guiding principles for his employees that were posted on stall walls throughout the company. Unfortunately for WorldCom, Capellas efforts where a matter of being too little, too late. Had Bernie Ebbers taken these steps as CEO, the fraud may have stopped at an early stage.