Tyco International Scandal Case Analysis - 3560 Words

TYCO INTERNATIONAL SCANDAL A CASE STUDY Soubhagya Ranjan Swain(14B149) 1st Semester BBALLB ABSTRACT TYCO INTERNATIONAL SCANDAL Tyco international is the world’s largest maker and servicer of electrical components. Former CEO Dennis Koslowski, former CFO Mark Swartz and former General Counsel Mark Belnick were accused of giving themselves interest free or very low interest loans and also took money disguised as bonuses,that were never approved by the Tyco board or repaid.There existed the controversial â€Å"key employee loan† and â€Å"loan forgiveness† programs. SEC began an investigation after an analyst reported questionable accounting practices in 1999. Kozlowski and Swartz were found guilty in 2005. Both are serving 8 1/3-to-25-year prison sentences. The ethical issues evident in the case study are conflict of interest, accounting fraud, embezzlement of company’s fund, misappropriation of funds and inappropriate discharge of employees. Corporate culture or lack of it can influence actions, decisions and trends in an organization. INTRODUCTION Upon the arrival of September 12, 2002, national TV displayed the previous (CEO) of Tyco worldwide L. Dennis Kozlowski and previous (CFO) of Tyco International Mark H. Swartz in cuffs in the wake of being arrested and accused of the charges of misappropriating more than $170 million from the organization. They were likewise blamed for taking more than 430 million dollars through deceitful offers of Tyco stock andShow MoreRelatedThe Case Of Tyco International1264 Words   |  6 PagesThe Case of Tyco The objective of this report is to identify whether there are any unethical issues or legal issues existed in Tyco International. Moreover, we should be able to describe relevant ethical issues and thus apply the concepts into the real life example. 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