The Anomi of Ethics and Governance in the WorldCom Scandal

Abstract

This paper centers on the WorldCom scandal and analyzes the reasons for the company’s serious financial holes from two aspects of ethics and governance. The moral problems are mainly discussed from the responsibility of the board of directors and the structure of the committee. And in terms of governance, corporate governance and internal control are two points of great concern and explained by using three major UK corporate governance codes and agency, stewardship, firm and stakeholders theories, to find out how to manage the company more effectively. Finally, the paper gets a conclusion that, through establishing an independent committee and a board of directors composed of more external directors, the company could greatly improve the management level.