Ethics in Finance Case Study
Seminar of Finance
Ethics in Finance
1. Have I defined the problem correctly and accurately?
Answer: The problem was that the WorldCom Company was falling farther and farther into debt and they needed a way out of this hard time. The CEO came to us with a plan to turn the company or in reality to make it look as if the company was headed into the right direction, when in fact it was not. The plan was to use other accounts that have holding money in them for other various projects to make the revenue look as though it was high and still climbing.
2. If I stood on the other side of the problem, how would I define it?
Answer: I would define the situation as what it is, fraud. This company was at one …show more content…
8. Can I engage the affected parties in my decision before I decide or take action?
Answer: After knowing what my actions would do to people there is no way I could look them in the eyes and tell them everything will be ok when in reality everything will not be fine and that my company and myself were using their money for the wrong reasons. Even after all this has gone on I still could not face the families that were affected especially knowing that my family is doing well.
9. Am I confident that my decision will be as valid over a long period as it may seem at this moment?
Answer: I am not confident about my decision over a long period of time because I know what the consequences are for the things we did. I knew that what I was doing would impact many individuals but I was told that no one would ever find out and that in a year or two the company would be flourishing so that we could stop transferring the money from the other accounts.
10. If my boss, the CEO, the directors, my family, or the community learned about this decision, would I have misgivings about my actions?
Answer: Well my boss and CEO’s both knew about the fraud but instead of them taking the blame for it they through it in on us for me and the other two guys to take all the blame but we saw this coming so we told the SEC everything.