Ethics and Governance in Business: A Case Study of WorldCom

Running head: ETHICS AND GOVERNANCE
Ethics and Governance
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1ETHICS AND GOVERNANCE
Executive Summary
Present report focuses on the ethical issue of business which is affecting the durability of a firm.
Undertaking any kind of illegal mean is strictly prohibited in business at it hampers the
consistency of a firm. In accordance with the case study, WorldCom, the most famous company
in the entire telecommunication industry is currently facing crucial ethical dilemma. Amplified
cost of rental is posing major threat for the company to maintain their economic stability. It is
quite evident from the case study that, due to the fraudulent mean of some of the employees is
increasing the issue in a rapid manner. Therefore, prompt action is needed to be taken as this
issue is creating obstruction for WorldCom to raise their future capital. Utilitarian theory focuses
on effective action that can bring greater benefit for mass range of people. Thus, this theory is
needed to be applied in the organizational context in order to give the company with greater
benefit by mitigating the issue promptly. AAA model is one of the most significant frameworks
which supports in initiating the entire ethical decision making process in a systematic manner.
APES 110 is also a vital framework which provides certain principles for those staffs who are
working as accountants in a company.

2ETHICS AND GOVERNANCE
Table of Contents
Introduction:....................................................................................................................................3
Part:..................................................................................................................................................3
1. Identifying and discussion of the theory of ethical decision making:.....................................3
2. Explanations of the actions that both David and Buddy can take:..........................................4
3. Justification behind the theory:................................................................................................4
Part B: 8...........................................................................................................................................5
AAA Model of ethical decision making:.....................................................................................5
Discussion:...................................................................................................................................8
Part C:..............................................................................................................................................9
Discussion of APES 110:.............................................................................................................9
Conclusion:....................................................................................................................................11
Reference List:...............................................................................................................................12

3ETHICS AND GOVERNANCE
Introduction:
As the illegal means in business is rapidly increasing, the need of integrating ethics in
decision making process is also accelerating. Ethics can be considered as a set of moral
principles which guides the people towards proper direction. Ethical decision making can be
defined as the process of integrating the moral values into commercial course of action.
According to Crane & Matten, (2016) business ethics is one of the most significant tools, behind
used in recent times for integrating moral principles in business which is the key of running
business with utmost efficiency. As per the case study, WorldCom, the major telecommunication
company is encountering with financial threat due to increased cost of telephone rentals.
David Myers, the Financial Controller of the company is highly vulnerable towards
leading such mischievous means that is ultimately leading the company to face immense
financial loss. On the other hand. David, an extremely loyal employee of WorldCom is making
multiple plans in order to get the company out from the issue. Present paper will highlight the
ethical decision making in the context of WorldCom. Theories of ethical decision making will be
discussed in the paper. AAA Model of ethical decision making will also be highlighted. Finally,
this paper will put forth the discussion of APES 110 in order to provide David with requirements
of this framework.
Part:
1. Identifying and discussion of the theory of ethical decision making:
Ethics is considered as one of the most significant branches of moral principles that deal
with the standard of right and wrong along with code of conduct of human behavior. As
discussed by Ferrell & Fraedrich, (2015) having strong ethics in business is highly required for