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Ethical Practices and Legal Violations

WorldCom has been cited for violating ethical practices as well as legal violations. Examine why has there been such a relatively high number of incidences of this and what it says about the business environment that the United States operates in.

Assignment Guidelines:
WorldCom has been prosecuted for violating the law regarding business dealings, transactions, or accounting practices in its reporting of its financial status.
State your opinion regarding the impact of the ethical implications and violations on the business itself from the perspective of the consumer or investor.
What has prompted such an increase in these types of legal and ethical violations, and what do these situations say or indicate about the U.S. business environment?

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State your opinion regarding the impact of the ethical implications and violations on the business itself from the perspective of the consumer or investor.

The impact of such ethical violations on the perspective of the consumer, investor and other stakeholders are significant, as seen from the fall of companies like Enron, etc. that were subject to such frauds, manipulations and ethical misconduct. One of the major impact from the perspective of various stakeholders is the significant deterioration of goodwill and reputation of such companies that they have built over years of hard work. The reputation and goodwill takes a huge toll due to occurrence of such events. Consumers do ...

Solution Summary

Discussion on the impact of the ethical implications and violations on the business itself from the perspective of the consumer or investor and the reasons for increase in these types of legal and ethical violations.

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