WORLDCOM Essay Example | Topics and Well Written Essays - 1250 words

WORLDCOM - Essay Example (1995), and MFS Communications Company (1996). WorldCom also acquired the mother company of Digex – the Intermedia Communications and sold all of its intermedia’s non-Digex assets to Allegiance Telecom. Until 2003, WorldCom was considered a telecom giant and second largest long distance provider in the U.S. A one-time high flyer like WorldCom should be held legally, ethically and socially responsible for having entered into a lot of business contracts with its customers and suppliers. WorldCom should be responsible for its intensive mergers and failure to use the public funds (coming from public shareholders) carefully. It remains questionable for a huge company that has been consistently greedy in entering into mergers with other similar companies to suddenly file a bankruptcy last July 2002. As of 2005, WorldCom is still facing some court trials regarding this matter. It is the legal responsibility of WorldCom’s employers to ensure that the company directors operate within the society’s accepted laws and regulations. It is their legal responsibility to register and communicate with the shareholders and ensure them that dividends are paid on time. Top management should also monitor on the company’s financial statement. WorldCom is facing huge financial and legal problems. The company is considered to have defrauded its investors by overstating the company’s earnings up to nearly $10 billion wherein the top management of the WorldCom also gain some profits from their own criminal acts. WorldCom has to be held responsible for taking investors’ money in excess of $176 billion and causing WorldCom’s employees, the state pension funds and shareholders through the lost of jobs, worthless stocks, and losses of 401 (k) savings. 2 The act of overstating of the company’s earning is clearly a criminal act and it is punishable by law. One way or another, someone has to be held responsible for such unprofessional