The Rise And Fall Of Bernie Ebbers - 787 Words

Introduction One of America’s famous corporate leaders rose to prominence like a whirlwind and, then years after the euphoria, he fell from grace. Bernard Ebbers, a Mississippian native, became the face of America’s corporate world just for a short time. Then, his glory ended only to face allegations of fraud, abuse, and other corporate malpractices. The rise and fall of Bernie Ebbers shocked the business world for he lived, then, in modesty, supported education and contributed to his community. Ebbers’ community called him â€Å"responsible business leader† (Trevino Brown, p. 90) and author George Gilder described him as â€Å"one of the most fascinating, improbable, and inspiring in North American business† (p. 90). What went wrong? Discussion†¦show more content†¦He generously loaned this select group without documentation, a patronage behavior rampant in developing countries. Just a strong showing of social learning and social exchange wrapped in ethics and morality would have done the tricks (Trevino Brown, 2005). Q3. Identify some theoretical linkages between Ebbers’s leadership style as practiced and the behavior that occurred within WorldCom. Answer: Ebbers’ self-inflicted, self-centered, transactional leadership style paved the way for the firm’s demise. He loaned subordinates to ensure compliance, loyalty, and cooperation. A transformational leader leads subordinates to achieve goals for all. The main issue is trust, a trait that is higher in transformational than in transactional leadership (Principles of Management, 2015). Ebbers decided otherwise. He surrounded himself with a select group of people and kept others in the dark on decision-making. Q4. The law firm report identified Ebbers as the source of a culture that resulted in the company’s accounting fraud. How did Ebbers’s leadership style contribute to the values and actions of key managers? How could key managers perform their jobs effectively and ethically in the WorldCom culture? Answer: Ebbers promoted a culture of patronage and a disdain for openness and contrary opinion. He had a select group that made all the decisions. He rewarded them by personallyShow MoreRelated WorldCom and The Mississippi Scheme Scandals Essay1704 Words   |  7 Pagesstock prices and dubious practices within the organizations to keep the public unaware. Bernie Ebbers was the founder and CEO of WorldCom. He took a small telecommunications firm and transformed it into an industry giant before it collapsed into bankruptcy in 2002. The stock prices of WorldCom began to fall in 2000 and in order to prevent the price from falling further WorldCom made mass loans to Ebbers to stop him from selling his stock. He initiated the fraud and false reporting. 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