The Tyco Scandal

Paper Summary:

This paper examines the history and growth of Tyco, which was founded in 1960 by Arthur J. Rosenberg as a small research laboratory that did testing for the government. The paper specifically discusses Tyco's acquisitions and expansions, followed by the conviction of the CEO and CFO of the company in 2005. In addition, the paper discusses how the scandal that occurred at Tyco International demonstrates the importance of business ethics and proves that stronger internal and government controls may be essential to corporate honesty.

From the Paper:

"In the case of Tyco International, we have seen what corporate greed can eventually lead to. After this scandal as well other scandals such as the Enron and WorldCom scandals, many citizens lost trust in corporations. In order to reestablish trust and prevent future executives from acting dishonest, the Sarbanes-Oxley Act was passed, and more internal control are now being implemented. In the future, if an executive is confident enough to try and bypass the regulations and steal money from an organization, he will face even more serious charges. Corporate executives such as CEO's of major corporations are among the most elite members of American society. They are extremely well paid, they have excellent benefits, and they are in the position to bring wealth to their families. Given the amount of money they are already receiving, many would find it ridiculous that a corporate executive would even consider stealing money. It is important to understand, however, that people with so much pride and ambition often have no limits, and to them, nothing is ever enough. Their greed often gets in the way of their honesty and loyalty to the people around them, resulting in scandals like the one described and demonstrating the need for ethics in business and more acts of government intervention."

Sample of Sources Used:

• Dennis Kozlowski. Business Biographies. http://www.referenceforbusiness.com/biography/F-L/Kozlowski-Dennis-1946.html Accessed October 5, 2006.
• Kozlowski, Swartz Get 8 1/3 to 25 Years. Foxnews.com September 20, 2005. http://www.foxnews.com/story/0,2933,169783,00.html Accessed October 5, 2006.
• Sarbanes-Oxley Act. Wikipedia. http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act Accessed October 5, 2006.
• Tyco History. Tyco International http://www.tyco.com/livesite/Page/Tyco/Who+We+Are/History/ Accessed October 5, 2006.
• Timeline of the Tyco International Scandal. USA Today. June 17, 2005. http://www.usatoday.com/money/industries/manufacturing/2005-06-17-tyco-timeline_x.htm Accessed October 5, 2006.

More papers on The Tyco Scandal:

• Term Paper # 110528 : "Tyco Scandal"
• Case Study # 108323 : "Tyco Stores"
• Essay # 83873 : "The Sarbanes-Oxley Act"

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