Business Ethics of WorldCom Essay Example | Topics and Well Written Essays - 750 words

Business Ethics of WorldCom - Essay Example The company was declared bankrupt due to the wrong ways that were used to handle the accounts of the company. As earlier stated, when WorldCom was declared bankrupt, the company officials at the time worked nervously to restate the financial status of the company and to reorganize its operations. This shows the extent to which the company had lost a lot due to unethical accounting. The relevance of business ethics in the case Ethical behaviors are considered the important characteristics that are needed by effective leaders. In the case study, WorldCom received destruction that occurred when the corporation was not in the situation to behave ethically. This was mainly for those who were involved in accounting in the company. Ethics in the case also is relevant as it shows the outcomes that were obtained when there was no holding of ethical standards. The fall out that was experienced in WorldCom was important. The competitors learned from the fallout and they were able to improve the ir operation and consider ethical standards in operations. Impact of the ethical problem The fraud that led to the bankruptcy of WorldCom affected the behavior and the lives of individuals and the community that the industry operated. Some individuals who were permanently affected by the fraud were Cynthia Cooper. She participated in uncovering the fraud and this made her win several awards. The fraud that also led to the fallout of the company gave the advantage to the competitors of the company such as Verizon.