Chicanery in the corporate culture: WorldCom or world con?

Corporate Governance (Bingley) - 2003
David P.Boyd1
1David P. Boyd is Professor of Human Resource Management, College of Business Administration, Northeastern University, Boston, Massachusetts, USA

Tóm tắt

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.

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Tài liệu tham khảo

Mehta, S.N. (2001), “Can Bernie bounce back?”, Fortune, Vol. 143 No. 2, pp. 84‐90.

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Corporate Governance (Bingley)

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