Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Ethics in business Instructions: 1. Read and analyze the following situation. Bernard J. Ebbers, CEO and founder of the telecommunications giant, WorldCom, owed the corporation

Ethics in business Instructions: 1. Read and analyze the following situation. Bernard J. Ebbers, CEO and founder of the telecommunications giant, WorldCom, owed the corporation $375 million for a loan secured by shares he owned in the company. The value of the company's shares was declining, to the point that the value of its shares was less than the amount of the loan. On February 2, 2002, Mr. Ebbers entered into a series of communications with leading Wall Street stock analysts, whose input helped drive the stock price higher, to counter negative news about the company's economic condition. , which was scaring investors. That day, the company's shares increased by 12% in value. Four months later, the company filed for bankruptcy protection due to its precarious economic condition. 2. Answer the following questions: a. Are the aforementioned actions illegal? Are they antithetical? Justify and explain your answer. b. What is the difference between an illegal action and an unethical one? Justify and explain your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Law questions