Business Ethics and Deontology Essay Example | Topics and Well Written Essays - 1750 words

Business Ethics and Deontology - Essay Example Moreover, the field of ethics in the business module observes ethical controversies with regard to various social responsibilities within the business process and also includes the ethical conditions of the professional entities, the fundamental rights of the employees, employment discrimination and positive actions among other concerns (Scribd Inc., 2012). The objective of this paper is to identify three major ethical issues that were raised in the WorldCom case in its various business processes and to evaluate those issues using the deontological ethics guidelines. Moreover, the ethical issues faced by WorldCom will also be critically assessed through implementing Kant’s Categorical Imperative model of business ethics. Three Major Ethical Issues of WorldCom An ethical controversy significantly affected WorldCom during its business operations and most importantly upon its sustainability in the business market. The organization had faced financial distress during the scenario of US bankruptcy in the year 2001. However, WorldCom emerged from bankruptcy fortification after reporting its accounting irregularities of USD 11 billion. The accounting irregularities in WorldCom had resulted in its being prosecuted against security charges of many of the organization’s senior executives (Scharff, 2005). ...Corporate Acquisition Strategy of WorldCom The core business strategy of WorldCom was highly focused to develop the organizational growth through an effective acquisition strategy which was quite complex and a lengthy process of operation. Mergers and acquisitions process in an organization is a delicate process to efficiently execute and can cause various problems in order to effectively overcome the concerns (Cernusca, n.d.). WorldCom had performed 65 acquisitions worldwide through its effective business strategies and was regarded as one of the major business organizations in the telecommunication industry. WorldCom had spent almost USD 60 billion bet ween the years 1991 to 1997 in its acquisition processes and accumulated a debt amount of more than USD 40 billion (Moberg & Romar, 2012). The acquisition strategy of the organization significantly focused on acquiring larger firms across the different regions of the world. The acquired organizations facilitated WorldCom to achieve larger market share along with strengthening their core competencies, however, it was observed that WorldCom failed to generate desired profit from its acquired organizations. The major ethical issues were raised due to various types of accounting scandals as well as certain unethical practices in the accounting department of the organization (Davis, Miksiewicz, Nitta, Rothenberger, & Scalera, 2011).