Chicanery in the corporate culture: WorldCom or world con?

Repercussions from the failure of WorldCom have profoundly affected all the company's stakeholders. As evidence of malfeasance escalates, the company may prove to have been a mere mirage without substance or soul. This paper addresses one particular facet of the company's dramatic and deva...

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Bibliographic Details
Published in:Corporate governance (Bradford) 2003-03, Vol.3 (1), p.83-85
Main Author: Boyd, David P.
Format: Article
Language:English
Subjects:
Chief executive officers
Corporate culture
Corporate governance
Corporate profits
Directors
Earthquakes
Ebbers, Bernard J
International business
Loans
Personal bankruptcy
Scandals
Stockholders
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Summary:Repercussions from the failure of WorldCom have profoundly affected all the company's stakeholders. As evidence of malfeasance escalates, the company may prove to have been a mere mirage without substance or soul. This paper addresses one particular facet of the company's dramatic and devastating demise. By authorizing personal loans to Bernie Ebbers, the board ultimately compromised the effectiveness and credibility of its own CEO. Moreover, its actions maligned the very shareholders that it was seeking to protect. The sequence of events at WorldCom raises red flags for any board that might be considering sweetheart loans to its CEO or fellow directors.
ISSN:1472-0701
1758-6054
DOI:10.1108/14720700310459881