As we have in this article, it is considered ethical to issue these loans to the executive in the sense that it acts to confirm the possible yet to be resolved issues of conflict of interest and trust related matters (Padget 159). As rightly seen, it is also cited that an approximated 25% eminent public trading firms had executives with loans in the year 2000, representing a 10% rise as compared to surveys conducted 2 years before (Colvin 156).
Question 2 The most standout failure on the part of the WorldCom was the poorly implemented strategies with the newly bought firms. This , on the on the other hand, can be checked by the senior officers concentrating more on the development of a corporate ideology among the various arms of the company (Padgett 159).
One of the merits is the generation of revenue as is evident in the scenario where WorldCom made 11 million dollars from the insider information given by Salomon. On the other hand, the strategy also brings to light issues of conflict of interest if the information does not match up (Colvin 156).
Apparently, Jack Grubman used a marketing technique in order to appeal to investors and so he decided to use lie, but he wasn’t fudging (Padgett 159) . Therefore, it is important to know the distinction between these two terms, where fudging means providing merely unrealistic information.
As a part of the team, I would suggest the releasing of the report as soon as possible since the grace period Sullivan is asking for is attempts to flog a dead horse and might even cause more irreplaceable harm to the company as compared to the initial status (Colvin 156).
Colvin, Geofferey. Bernie Ebbers’ Foolish Faith. Chicago: Fortune, 2002.
Padgett, Tim, & Baughn, A. J. The Rise and Fall of Bernie Ebbers. Time, 2002.