Effect of Unethical Practices in Corporate World: A Case Study in WorldCom

Neil J Shah
Institute of Law Nirma University

Volume III, Issue III, 2020

Introduction: There are some common unethical business practices in corporates like Misleading Product Information, Unfair Competition, Mistreating Employees, Manipulating Accounts, bribery etc. that many companies around the world are guilty of adopting for success. This paper shows how the WorldCom Company used unethical ways for its functioning. Any sort of unethical trade practice in any kind of business activity have serious consequences which hinders the business and most of the time it is not able to stand in the market as before.

Objective: The paper is an attempt to throw light on the unethical practices being carried out by the WorldCom a leading telecom company. The way in which these unethical practices impact the reputation of the company and also its stockholders is also discussed here. It is a lesson for other corporates across the globe with measures to improve the business which is conducted on a international platform. It is just a paper that shows the conditions of businesses who uses such unethical ways for their business activities.

Approach: The paper deals with the concept and case study investigation performed with reference to the effect which WorldCom’s unethical practices had on its investors.

Findings: Regrettably, in the current scenario, it is noticed that a there are umpteen cases of unethical practices in corporates / organizations when it comes to dealing with finances. On deep analysis of WorldCom’s case study, the point to be noted is that due to company’s involvement in manipulating their books of accounts to deceive investors, lenders and end-consumers people lost the trust in WorldCom Company and hence the brand reputation of WorldCom was crashed. The case study sets an example for other companies if they involve in getting unprofessionally accomplished success and hence devise regulatory setups which will be of help to prevent such occurrences in future.

Limitations: This research paper is conceptualized and is purely based on published reports.

Keywords: unethical, credibility, stakeholders, unprofessionally.


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