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

WORLDCOM - Essay Example(1995), and MFS Communications Company (1996). WorldCom also acquired the mother society of Digex the Intermedia Communications and exchange all of its intermedias 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 bid 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 existence 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 WorldComs employers to ensure that the company dire ctors operate within the societys 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 companys financial statement.WorldCom is facing huge financial and legal problems. The company is considered to have defrauded its investors by overstating the companys 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 oversupply of $176 billion and causing WorldComs employees, the state pension funds and shareholders through the lost of jobs, worthless stocks, and losses of 401 (k) savings. 2The act of overstating of the companys earning is distinctly a criminal act and it is punishable by law. One way or another, someone has to be held responsible for such unprofessional