Management Planning Paper Essay Example | Topics and Well Written Essays - 1000 words

Management Planning Paper - Essay Example Management Techniques Business Ethics form an important part of the culture of the businesses. They are very important when it comes to the normal functioning of businesses in this world. The company had made almost 65 acquisitions or mergers in only 6 years. Integrating is a lengthy process, time consuming and a very challenging exercise as there may be people who may resist these changes and create problems. The second aspect is to integrate financially by the use of the generally accepted accounting principles. It is believed generally that because of these practices of integration WorldCom was successfully able to hide its practices. The unethical issues in the company arose when the company started to face problems from the decreasing demand of telecommunications. It is then believed that the senior executives of the company were involved in fraudulent activities. (Kiron et al 2004; Worldcom Website 2010; Securities and Exchange Commission 2003) The company is designed to follow the accounting standards through which they can make accounts and these accounts are then analyzed by the managers and head of the organizations. Managers are given the sole authority to check over the employees when they face any difficulties in the culture of WorldCom. The problems faced by the workers are solved keeping in mind the view about corporate social responsibility. The firm follows strict corporate social responsibility measures which should be followed by the employees. Issues faced by WorldCom WorldCom faced a series of blows when they were targeted by the media and it was found that the company was involved in fraudulent activities. There were three major problems with the corporate culture and their style of working. The first one was the way they grew through aggressive acquisition of companies, second was the strategy of senior executive loans and the third and foremost was the way in which they did business which was against the code of corporate governance and had exposed them to threats related to fair and arm’s lengths transactions (Kiron et al 2004; Securities and Exchange Commission 2003) The acquisitions and mergers have been mentioned above where it can be clearly seen that WorldCom made a large number of acquisitions in a short time and this created for the company as a whole. It is analyzed that the senior executives of WorldCom such as the CEO Ebbers were personally devoted to financial success and because of this they started doing unethical activities at the company. It was because of the negative role of the senior executives that unethical practices flourished at WorldCom as they created such an organization culture which did not question anyone in the firm. Hence it can be said that fraudulent activities even at the lower designations was taking place at a higher rate. Hence it can be clearly identified here that inefficiency of the leader at WorldCom caused more of these ethical issues to arise (Kotter & Heskett 1992 ). The Company did not properly follow the accounting standards, while preparing the accounts to show that the profits were increasing but in fact they were not. This had led to increase profits by charging the expenses to decades instead of a few years, recognizing revenue in the same year and prove that the company had huge