Question: As you found out in this chapter, WorldComs massive accounting scandal cost investors billions and threw the company into bankruptcy. More than one hundred employees
As you found out in this chapter, WorldComs massive accounting scandal cost investors billions and threw the company into bankruptcy. More than one hundred employees who either participated in the fraud or passively looked the other way were indicted or fired, including accountant Betty Vinson, CFO Scott Sullivan, and CEO Bernard Ebbers. With the name WorldCom indelibly tarnished, the company reclaimed its previous name, MCI. It was put on court-imposed probation and ordered to follow the directives of the court. One of those directives called for setting up an ethics office. Nancy Higgins, a corporate attorney and onetime vice president for ethics at Lockheed Martin, was brought in with the title of chief ethics officer.
Higginss primary responsibility is to ensure that MCI lives up to new CEO Michael Capellass assertion that the company is dedicated to integrity and its employees are committed to high ethical standards. Her tasks are the same as those of most people with the same job title, but shes under more pressure because MCI cant afford any more ethical lapses. She oversees the companys ethics initiatives, including training programs and an ethics hotline. She spends a lot of her time with employees, listening to their concerns and promoting company values.
Higgins is a member of the senior executive team and reports to the CEO and board of directors. She attends all board meetings and provides members with periodic updates on the companys newly instituted ethics program (including information gleaned from the new ethics hotline).
Answer the following questions:
- Would you be comfortable in Higginss job? Does the job of ethics officer appeal to you? Why, or why not?
- Would you find it worthwhile to work in an ethics office for a few years at some point in your career? Why, or why not?
- What qualities would you look for if you were hiring an ethics officer?
- What factors will help (or hinder) Higginss ability to carry out her mandate to bolster integrity and foster ethical standards? Support your response with ethical theories.
- Would the accounting scandals have occurred at WorldCom if Higgins had been on the job back when Vinson, Sullivan, and Ebbers were still there? Explain your opinion.
Respond in a 1-2 page, APA formatted Word document; include a cover page and works cited page. Respond in complete thoughts, not bullet points, with supportive reasoning. Use at least one source to support your responses
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