This was designed to limit the total amounts of insider selling for tax purposes. As time went by, Swartz used this program to give all employees loans for any reason. This helped Kozlowski and other executives to receive large loans from this program (that were forgiven in the future). ("Tyco," n.d., pp. 389 -- 402) (Farrell, 2011, pp. 442 -- 446)
The Impact of Auditors
Price Waterhouse Coopers was the auditor of Tyco. When the unauthorized loans were discovered they asked executives about them. but, they did not report their findings to regulators and investors. Instead, this was considered to be an issue of non-material significance (which allowed the fraud to continue). The combination of these factors is showing how the author is discussing the role of the different parties with the fraud. As a result, this is indicating what factors helped to make the scam continue for so long. This…...
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References
Tyco. (n.d.).
Farrell, O. (2011). Business Ethics. Mason, OH: South -- Western
The first trial for the two began on September 29th, 2003. The trial was not concluded as one of the jurors had complained of been pressurized to convict the two former executives. The retrial was conducted, and the jury reached its verdict on June 17th, 2005. They were both acquitted for one count and convicted for 22 criminal counts. They were not found guilty of falsifying business documents. Both of them were sentenced to eight years t twenty five years in a state prison where they would be working six hours daily and earning $1.05. Eventually the charges that had resulted in the fall of Dennis Kozlowski were dismissed after he agreed to pay off his sales tax liabilities and restitution.
What do you think Kozlowski's motivation for trying to avoid sales taxes on his art purchase was?
Power and greed in this case were Kozlowski's main motivators. He had no loyalty…...
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References
Beschorner, T. (2006). Ethical Theory and Business Practices: The Case of Discourse Ethics. Journal of Business Ethics, 66(1), 127-139.
Byrne, E.F. (2002). Business Ethics: A Helpful Hybrid in Search of Integrity. Journal of Business Ethics, 37(2), 121-133.
Maguire, S. (1997). Business Ethics: A Compromise between Politics and Virtue. Journal of Business Ethics, 16(12/13), 1411-1418.
Tyco International is a worldwide manufacturing company that is involved in production of various products since its inception in the 1960s. The company is currently divided into five main business segments which are Safety Products, ADT Worldwide, Flow Control, Fire Protection Services as well as Electrical and Metal Products. Furthermore, the company recently split its corporate sections into three independent companies i.e. Tyco Healthcare, Tyco International Ltd. And Tyco Electronics Ltd. In mid-2007. Tyco International continues to thrive in the New York Stock Exchange because of a strong cash flow and revenue growth.
The company was hit by a major accounting scandal in the early 2000s that involved its former three top executives. The then CEO, CFO and CLO were found guilty of defrauding the company an approximate of $600 million through fraudulent practices. These three former executives took interest-free loans from the company and spent huge amounts of the money…...
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Bibliography:
Associated Press. "Ex-Tyco Executives Get Up To 25 Years in Prison." Msnbc.com: Corporate
" (Cummins, 2006). The VP for Corporate Governance, Pillmore announced a series of ethical principles, to prevent such scandals. The first principle "calls for strong leaders who see themselves as stewards of the company and mentors for its future leaders." (Cummins, 2006). The second principle is to establish a "web of accountability," where corporate leaders are constantly questioned about ethics-based decisions. (Cummins, 2006). The third principle is to investigate actual behavior, which Tyco does by "including company values in every assessment of managers and leaders," as well as creating an open atmosphere for reporting ethical problems. (Cummins, 2006). In fact, ethics expert Stuart Gillman, discussing ethics changes, notices that "many of the recent measures go beyond fixing lists of right and wrong. Cultural change has become an imperitive. Organizations are being forced to move from a position in which they maximize their profits at any cost to one in which…...
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Referenced
Cummins, H.J. (2006). Tyco exec makes the rounds spreading the word on corporate ethics.
First of all, they should implement a better control of the executives' actions by limiting their rights and access to corporate funds. No major decision regarding future mergers, acquisitions or investments should be taken by a single executive. All significant activities and fund usage should be approved by the Tyco board during general meetings. The number of these meetings should be of at least one or two per week.
The conglomerate should also analyse and re-establish their priorities. In this order of ideas, they should place decreased emphasis on profit maximization and focus on actions that give the company a good reputation. As such, they should place increased emphasis developing and implementing programs in the benefit of the investors, the employees, the stock holders and the consumers.
2.e) the Sarbanes-Oxley Act of 2002 was developed as a response to the multitude of accounting scandals that were tormenting American companies, such as…...
The UETA gives legal recognition to electronic records, electronic signatures, and electronic contracts. The UETA provides that a contract cannot be denied enforceability solely because it is in electronic form, or because an electronic form was used in its formation. If the law requires a written record, an electronic record satisfies the law. Furthermore, an electronic signature satisfies legal requirements for a signature. An electronic record or electronic signature is attributable to a person if it was the act of the person. An act of a person could be shown in any manner, including a demonstration of the efficacy of the security procedures applied to determine to whom the signature or record was attributable. If the law requires that a signature or record be notarized or otherwise verified, that requirement is satisfied if the electronic signature of a person authorized to verify the record or signature is attached to or…...
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Works Cited
Cohen, Andrew. "Tyco Mistrial: Blame the Media." CBS News. 2004. CBSNEWS.COM. 19
January 2005
.
'Tyco Mistrial." Online Newshour. 2004. PBS. 19 January 2005
This is particularly important because it will give the Tyco employees a sense of accomplishment that they might not otherwise feel, and show them that they are in fact on the right track. This conversation also gives management the opportunity to provide feedback about the progress everybody has taken on the change initiative.
4. "After 18 months in this position, it is hard to believe that people still view the old leadership as being anything indicative of what this company is about. Those days are over and those criminals are on trial where they belong. This is a new company, a new Tyco, and we do things differently. We have a strong company, one that makes a lot of money for our shareholders. We are better people than our reputation would have you believe -- there are 260,000 people who are not on trial, but who conduct themselves with utmost…...
Maintaining a timely schedule of meetings and progress benchmarks and keeping track of minutes and official correspondence, in case there is a dispute, is also valuable for logistical and legal reasons.
Creating a general managerial philosophy to deal with work teams may entail orienting employees how to improve their communication skills and deal with team conflicts. Because Tyco is an international organization, when work teams involve individuals from several countries or cultures, having a briefing on possible communication differences between low and high-context cultures may be helpful. Self-awareness is often one of the most important elements of communication. For example, the DISC personality inventory, which classifies individuals as either dominant, intuitive, steady, or conscientious types in their workplace demeanor can be administered to employees embarking upon a project together, so they gain a sense of their strengths, weaknesses, and biases, in relation to their colleagues.
Tyco international Ltd. after Kozlowski resignation and Breen came in to reinstate the company's performance. The sections in the paper are: liquidity, accounting practices, free cash flow, forecast reports for companies and finally opinions revealed in the interview by Wall Street Journal with Mr., Breen.
The first section on liquidity defines the term liquidity and gives a situational analysis of the condition observed at Tyco Ltd. The discussion links the definition on liquidity explaining that the company was not in a position to meet its cash needs thus the existence of crises.
In the second section, the aggressive accounting is seen to have a disastrous effect on the company's operations by pleasing the shareholder and compromising the company's future. The practice is not illegal but, it worth in the long-run existence of the company is not ideal.
The concept of free cash flow is discussed in the section indicating that the company…...
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Duttweiler, R. Managing Liquidity in Banks: A Top Down Approach. John Wiley & Sons, 2011: John Wiley & Sons, 2011. Print.
Harrison Jr., W., C.T. Horngren, and C.T William. Financial Accounting 9th Edition. U.S.A.: Prentice Hall 2012. Print.
Lublin, J.S. "2012 Tyco's Breen Looks Back on Putting out Fires " Wall Street Journal (2012). Print.
Business Ethics," Peter Stanwick Sarah Stanwick, 2009 Read Case Study 20 (p. 389), "Tyco: I'm That It's a Really Nice Shower Curtain." Summarize viewpoint author paragraph form, discuss major issues presented case.
Dennis Kozlowski and the Tyco case study
The author in this case concentrates on providing readers with more information on the central character involved in the story and the way he singlehandedly cheated the authorities and society as a whole. The case study makes it possible for readers to acknowledge the paradox surrounding Dennis Kozlowski and his thinking. Even with the fact that he could afford paying taxes for his business deals, he evaded these respective taxes out of greed. His obsession with having the upper hand in dealings with the government put him at great risk and was ultimately the reason why he ended up in jail.
The former CEO of Tyco International certainly has an intriguing character --…...
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Works cited:
"Tyco: I'm sure that it's a really nice shower curtain (The rise of Dennis Kozlowski)"
This essay is to analyze the situation of Tyco International and how it failed. Tyco provides, security solutions, flow control and fire protection. We would analyze the failure using Organizational behavior. We would consider trait theories, behavioral theories and Fiedler contingency model to discuss Tyco's situation. We would also conclude as to how leadership, management and organizational structures supported the downfall of Tyco International.
The Failure at Tyco International
Tyco International is a diverse manufacturing company that operates globally. It is incorporated in Switzerland but has operational headquarters in New Jersey, U.S.A. Tyco offers its customers with fire protection, security solutions and flow control.
Tyco was a very profitable company under the leadership of L. Dennis Kozlowski, the chairman and Chief Executive Officer of Tyco International. Kozlowski served Tyco from July 1992 till June 2002 when the directors asked for his resignation. Kozlowski…...
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References
R.L. Daft. (2004). Organization Theory and Design (8th ed.). Cincinnati, OH: South-Western Publishing.
G.F. Cavanagh, D.J. Moberg, M. Valasquez (1981). The Ethics of Organizational Politics. Academy of Management Journal.
Fred Fiedler (1967). A theory of Leadership effectiveness.
business scandals in the early 2000s brought the issue of business ethics to the fore -- Enron, WorldCom and Tyco. The three share some similarities but they are different in other ways. Enron was simply a case of criminal activity. The company's management did not publish financial statements and when they did the statements completely misrepresented the company's financial position. This occurred on the direction of the senior management team, with the complicity of the auditor, Arthur Andersen. These managers were heavily invested in Enron and therefore had a strong personal interest in creating phony financial statements in order to pump up the company's stock price. The corruption at Enron ran deep within the company, such that the scandal all but wiped the company out.
The situation at WorldCom was that CEO Bernie Ebbers was a heavy owner of the company's shares. As such, he benefitted from implementing an aggressive…...
The second phase needs to concentrate on initiative and performance to restart the business of Tyco and make it profitable again.
Imagine that you were CEO of Tyco when the former CEO was still on trial for fraud. You are trying to rebuild the company's corporate reputation. Write a script for your address to the shareholders after 18 months in the position. Pay attention to the appropriate use of metaphors in your change conversation to this group.
Transformation is difficult but critical for any business to attain growth and realize its full potential over the long-term. Over the last eighteen months our company has been through a crucible that has tested the trust and value we deliver as a business with our suppliers, customers, employees and shareholders. The goal is to rebuild a solid foundation of trust based on complete accountability. My appointment of a Chief Ethics Officer who is also…...
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References
Ford, J., & Ford, L.. (2008). Conversational Profiles: A Tool for Altering the Conversational Patterns of Change Managers. The Journal of Applied Behavioral Science, 44(4), 445.
Glenna Gerard, & Linda Teurfs. (1997, August). Dialogue and transformation.
Executive Excellence, 14(8), 16.
Geert Hofstede, & Robert R. McCrae. (2004). Personality and Culture Revisited: Linking Traits and Dimensions of Culture. Cross - Cultural Research, 38(1), 52-88.
Stanwick and Stanwick (2009) in their case study "Tyco: I'm Sure That It's a eally Nice Shower Curtain" is that certain the Tyco CEO and his business associates, family and acquaintances misappropriated the shareholder's funds under the pretext of legitimate corporate functions and allocations. Elements of favoritism can be seen in the way the CEO, Dennis Kozlowski awarded loans from the Tyco coffers to himself and Frank Walsh without seeking the approval of the board. This was viewed as corrupt and a direct violation of the various responsibilities accorded to the board of directors by the shareholders and investors. According to Stanwick and Stanwick (2009), the CEO and the other board of directors were corrupted by the power and influence that they had in the company.
The major issues presented in the case
White collar crimes
White collar crime was defined by Sutherland (1939) as a crime that is committed by an…...
(Ferrel, Fraedrich, & Farrel, 2009)
How will the implementation of the Sarbanes-Oxley Act of 2002 prevent future dilemmas in Tyco?
Sarbanes-Oxley increases: the penalties for such actions, limits the role that the board of directors will have with managers, it creates an accounting oversight board and it requires the CEO / CFO to certify under oath that all financial information is correct. This will severe as a deterrent and help to provide mechanisms, to the prevent ways that the fraud was able to be perpetuated at Tyco. (Ferrel, Fraedrich, & Farrel, 2009)
Can the SEC trust Tyco's new board?
Yes. This is because those members who were involved with Kozlowski were purged and none of the current members have committed any acts of wrong doing. These facts along with the Sarbanes-Oxley in place, means, that there is no reason for the SEC not to trust the board. (Ferrel, Fraedrich, & Farrel, 2009)
Firestone: A…...
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Bibliography
Ferrel, O., Fraedrich, J. & Farrel, L. (2009). Business Ethics: Ethical Decision Making and Cases. Boston, MA: Houghton Mifflin.
Corruption is a widespread and insidious problem that plagues societies worldwide. It undermines trust, impedes economic growth, and perpetuates inequality. This case study delves into a real-world example of corruption, uncovering its multifaceted nature and devastating consequences.
The Setting: Afican Utopia
Afican Utopia is a fictitious African nation once hailed as a beacon of hope and prosperity. However, beneath the gleaming facade lay a deep-rooted culture of corruption. In the halls of power, unscrupulous politicians and government officials colluded with wealthy elites to enrich themselves at the expense of the nation's well-being.
Drivers of Out-of-Area Placements for Adults with Learning Disabilities and Complex Needs
Introduction
Out-of-area placements (OAPs) occur when individuals with learning disabilities and complex needs are placed in residential or support services outside their local authority area. This can have significant implications for the individual, their family, and the wider community. This literature review examines the evidence regarding factors driving OAPs for adults with complex needs.
Factors Driving OAPs
1. Lack of Suitable Local Services
A primary driver of OAPs is the limited availability of appropriate services within the individual's local authority area. This can include specialized residential care, day support programs, and therapeutic interventions.....
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