Issue Index: WorldCom

The United Church of Christ petitioned the Federal Communications Commission in October, 2002 to block the transfer of federal licenses that WorldCom uses for its long distance and Internet services. According to BoycottWorldCom.com, the UCC is also a supporter of a WorldCom/MCI boycott. The UCC, Office of Communications, Inc. ("the media advocacy arm of the United Church of Christ") accurately reports that WorldCom defrauded investors, stakeholders and the public. However, serious questions have been raised by a number of newspaper articles detailing the clearly unethical relationship between WorldCom's largest rivals and WorldCom protestors... specifically citing the United Church of Christ. The issue is not whether WorldCom/MCI behaved improperly and illegally, rather it is the ethics of the UCC in partnering with their rivals (who are motivated by a profit) and whether or not the UCC has used the same standard of corporate accountability with those same rivals (former Baby Bells Verizon, Qwest and SBC).

According to a Los Angeles Times article ("Bells Take Aim at Rivals", November 25, 2002) Blair Levin, a former chief of staff at the Federal Communications Commission said "There are a number of battles on a variety of issues that ... suggest there is an organized effort by rivals to keep WorldCom in bankruptcy as long as possible and make it as painful as possible to ensure they don't get out."

The coordinated opposition to WorldCom by the Baby Bells is being conducted in part by a company called Issue Dynamics, Inc. (IDI), a Washington D.C. consulting and lobbying firm. IDI describes it's activities as an effort "to forge successful working relationships between disability, patient, consumer, education, small business, rural, civil rights, minority, as well as social responsibility groups with corporations and trade associations who share similar views on specific policy issues." However, according to a Washington Post article ("WorldCom Opponents In Sync", June 20, 2003) IDI is being paid by WorldCom rivals to conduct the campaign against WorldCom.

In the Washington Post article, Samuel A. Simon, founder and President of Issue Dynamics Inc., declined to disclose who was financing the firm's work, although Verizon confirmed that IDI was working for them. The article further states:

 

IDI's practice of organizing public interest groups to support its initiatives has occasionally angered some consumer activists, who said Simon often does not disclose whom he is working for. It is particularly irritating to some public interest advocates that Simon often touts his former links to consumer advocates, including a stint as a lawyer working for Ralph Nader. "His credibility is suspect due to his failure to disclose his funding," said Gene Kimmelman, director of the Washington office of Consumers Union. Charles Lewis, executive director of the Center for Public Integrity, a nonpartisan research group, said organizations such as IDI should disclose their backers. "These are people who are trying to influence the public debate and also the legislative process, and they have an obligation to do so in the light of day," Lewis said.

Perhaps not so ironically, Robert Chase, director of the UCC's Office of Communication, Inc. (which petitioned the Federal Communications Commission to block the transfer of WorldCom's federal licenses), serves on the board of another "advocacy" and lobbying firm headed by Simon, the Telecommunications Research & Action Center. Both also serve as co-chairs of the United Church of Christ / OC Inc.'s Everett C. Parker Ethics in Telecommunications Lecture Planning Committee, which, according to the Washington Post article, operates out of Simon's building.

From the Washington Post article, Chase said he consulted with Simon on the WorldCom issue. "We've worked together on this and other projects," Chase said, describing Simon as "a trusted friend and confidante."

Unfortunately, these types of campaigns are fairly common and are called "astroturf lobbying". According to Disinfopedia, Senator Lloyd Bentsen, himself a long-time Washington and Wall Street insider, is credited with coining the term "astroturf lobbying" to describe the synthetic grassroots movements that now can be manufactured for a fee by companies. The campaign against WorldCom, which the UCC is a part of, is considered an "astroturf" campaign.

Simon and Chase's Telecommunications Research & Action Center has also publicized studies nationally that promote more competition in long distance services that would ultimately benefit the former Baby Bells... under the auspices of consumer advocacy and without disclosing Simon's relationship to the Baby Bells.

Chase's obvious relationship to Simon raises logical questions about the United Church of Christ's involvement in petitioning the FCC, namely:

• Did the United Church of Christ / OC Inc. receive any financial support from Issue Dynamics Inc. to wage a campaign against WorldCom?

• Is the United Church of Christ being used as a vehicle to eliminate a Baby Bell competitor?

• Has United Church of Christ / OC Inc. ever raised the same corporate responsibility issues with the former Baby Bells, themselves the subject of similar scrutiny?

At the 24th General Synod of the United Church of Christ in July 2003, a resolution was presented titled "Theological response to corporate greed" which specifically dealt with the WorldCom issue. Prior to the General Synod, questions similar to those raised on this page were raised in the online General Synod forum. At no point did the UCC respond to the questions raised in the online forum and no questions were raised on the floor when the resolution was presented for a vote.