Tyco Scandal

Paper Summary:

The paper discusses the background of the Tyco International scandal, focusing on the manner in which the scandal was brought about, the activities of its executives and their fraudulent schemes and the mishandling of finances. The paper highlights various unethical business issues and misuse of funds which eventually resulted in the demise of the company.

From the Paper:

"In addition, the insider trading allegations, in which the executives sold substantial portions of their stock without correctly informing shareholders, were only possible because the executives were given exorbitant stock argeements. Likewise, the misuse of corporate funds for living expenses was only possible because executives were able to have the company pay for their living expenses. The last two situations could be remedied by simplifying the corporate compensation structure; supplying executives with the same basic compensation package as other employees, such as health care, but then making compensation strictly-monetary."

Sample of Sources Used:

• Cummins, H.J. (2006). Tyco exec makes the rounds spreading the word on corporate ethics. Retrieved January 16, 2008 from StarTribune.comWeb site: http://www.startribune.com/lifestyle/faith/11327571.html
• Gilman, S. (2004). The importance of workplace ethics. Retrieved January 16, 2008 from Edicta.orgWeb site: www.edicta.org/NeoethicsBucklin/Authors/Gilman/0404GilmanEd.pdf
• Obringer, L. (2008). Case study: Tyco. How cooking the books works. Retrieved January 15, 2008 from How Stuff WorksWeb site: http://money.howstuffworks.com/cooking-books9.htm
• Symonds, W. (2002). Behind Tyco's accounting alchemy. Retrieved January 16, 2008 from BusinessWeekWeb site: http://www.businessweek.com/magazine/content/02_08/b3771062.htm
• USA Today. (2005). Timeline of the Tyco International scandal. Retrieved January 16, 2008from USA TodayWeb site: http://www.usatoday.com/money/industries/manufacturing/2005-06-17-tyco-timeline_x.htm White, B. (2005). Ex-Tyco executives convicted: in retrial, former CEO, CFO found guilty ofstealing millions. Retrieved January 16, 2008 from Washington PostWeb site: http://www.washingtonpost.com/wp-dyn/content/article/2005/06/17/AR2005061701003.html

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