Business Ethics and Corporate Governance, Second Edition

CASE STUDY: HOW UNETHICAL PRACTICES ALMOST DESTROYED WORLDCOM

(This case is developed from published reports, and is purely meant for classroom discussion. It is not intended to serve as endorsements of sources ofprimary data or illustrations of effective or ineffective management.)

COMPANY BACKGROUND

WorldCom was founded in 1983 by Bernard Ebbers, David Singleton and Murray Waldren, who were reported to have sketched months earlier their idea for a long distance company on a napkin in a coffee shop in Hattiesburg! It was initially called LDDS—Long Distance Discount Service. Ebbers was elected President and CEO of the new company, though he lacked the technical education and expertise to run a technology—based company. Ebbers was a sort of Jack ...