Business Ethics and Corporate Governance, Second Edition

AMERICA’S HALL OF SHAME—2002

Corporate America’s Hall of Shame was littered with failed mega corporations and transnational companies that sound like a virtual ‘who is who’ of international business glitterati.

WorldCom improperly booked $3.8 billion in expenses, thus inflating profits. The founder, Bernie Ebbers, borrowed $408 million from the phone company to cover personal debts. Energy firm, Enron, created outside partnerships that helped hide its poor financial condition. Executives earned millions of dollars selling company stocks. The company had to go to bankruptcy court. The accounting firm, Andersen, was accused of shredding Enron documents and was convicted for obstruction of justice. Energy company, Dynegy, was under investigation ...