• Login
  • Register
  • Search

The Anomi of Ethics and Governance in the WorldCom Scandal

Yutong Xie


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.


WorldCom Scandal; Ethics; Governance; Board of Directors; Committee Structure; Internal Control

Full Text:


Included Database


Angwin, D. (2015) Advanced Strategic Management. 3rd Ed. London: Palgrave MacMillan.

Ashraf, J. (2011) The accounting fraud at WorldCom the causes, the characteristics, the consequences, and the lessons learned. University of Central Florida. 3 (1). p. 1-53.

Baysinger BD. & Butler HN. ( 1985) Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition. Journal of Law, Economics,&Organization. Jstor Database 1 ( 1). p. 101- 124.

DOI: http://dx.doi.org/10.18686/fm.v7i3.5352