Chicanery in the corporate culture: WorldCom or world con?

Abstract

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.

Citation

Boyd, D.P. (2003), "Chicanery in the corporate culture: WorldCom or world con?", Corporate Governance, Vol. 3 No. 1, pp. 83-85. https://doi.org/10.1108/14720700310459881