Tyco
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- Date Submitted: 04/18/2013 01:19 PM
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|Tyco International |
|AC504 Ethical Issues in Business and Accounting |
|Unit 1 Assignment |
|Heather Friday |
ABSTRACT
Tyco International, Ltd is a large manufacturing company based in Switzerland that manufactures a variety of products ranging from electronics to healthcare supplies in three separate companies: Tyco Healthcare, Tyco Electronics, and a combination of Tyco Fire and Security and Engineered Products. Tyco provides security solutions, fire protection and flow control services. Tyco’s security solutions designs, installs, and monitors security systems. Tyco’s flow control designs, manufactures and repairs valves, pipes, fittings, and automation and control products while the fire protection department designs, manufactures and installs fire detection and suppression systems.
Tyco International Ltd. Scandal
In the Tyco scandal, three of their top executives were accused of fraud and theft in 2002. The three executives indicted are former CEO Dennis Kozlowski, former CFO Mark Schwartz, and former general counsel Mark Belnick. In September of 2002, the former executives were accused of giving themselves interest-free or low interest loans for the purpose of purchasing property, jewelry and other inappropriate personal possessions. They didn’t stop there though; Kozlowski and Schwartz were also accused of issuing bonuses to themselves or other employees without approval from the board of directors. These bonuses were used as a loan forgiveness system for those who had borrowed loans or used as a form of bribery to silence the inquiries of suspecting employees. Kozlowski, Schwartz, and Belnick were also charged with insider trading. This turn of events called for Tyco to make the transition to an ethical workplace and began this process by hiring Edward Breen as their new CEO and integrating the following...
|AC504 Ethical Issues in Business and Accounting |
|Unit 1 Assignment |
|Heather Friday |
ABSTRACT
Tyco International, Ltd is a large manufacturing company based in Switzerland that manufactures a variety of products ranging from electronics to healthcare supplies in three separate companies: Tyco Healthcare, Tyco Electronics, and a combination of Tyco Fire and Security and Engineered Products. Tyco provides security solutions, fire protection and flow control services. Tyco’s security solutions designs, installs, and monitors security systems. Tyco’s flow control designs, manufactures and repairs valves, pipes, fittings, and automation and control products while the fire protection department designs, manufactures and installs fire detection and suppression systems.
Tyco International Ltd. Scandal
In the Tyco scandal, three of their top executives were accused of fraud and theft in 2002. The three executives indicted are former CEO Dennis Kozlowski, former CFO Mark Schwartz, and former general counsel Mark Belnick. In September of 2002, the former executives were accused of giving themselves interest-free or low interest loans for the purpose of purchasing property, jewelry and other inappropriate personal possessions. They didn’t stop there though; Kozlowski and Schwartz were also accused of issuing bonuses to themselves or other employees without approval from the board of directors. These bonuses were used as a loan forgiveness system for those who had borrowed loans or used as a form of bribery to silence the inquiries of suspecting employees. Kozlowski, Schwartz, and Belnick were also charged with insider trading. This turn of events called for Tyco to make the transition to an ethical workplace and began this process by hiring Edward Breen as their new CEO and integrating the following...