Business Ethics Introduction (Summarize Case Study

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SAMPLE EXCERPT . . .
It is at this point that his behavior and past transactions were brought into question. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

Explain the concept of commingling assets with respect to the Tyco case.

The commingling of company assets is when executives will seek out loans and will have other programs in place that will benefit them personally. This is above and beyond traditional compensation plans, as these initiatives allowed everyone to steal company funds for their own use. Kozlowski and Schwartz used these programs to offer themselves lucrative rewards, bonuses, reimbursements and loans. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

They utilized the money that was received to purchase real estate, throw elaborate parties, buy professional sports teams and luxury merchandise. These programs made it possible for executives to comingle company assets with their own. Over the course of time, this enabled these abuses to occur by disguising them as legitimate company expenses. When in reality, they are programs that are designed for the sole benefit of select executives at the firm. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

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Would it have been possible for the board of directors to see the adjustments taking place in the many different programs at Tyco? Explain.

Yes, the board of directors could have seen the adjustments taking place. This is because the amounts of spending were so large. That it was difficult to hide from actuaries who are actively monitoring the firm's finances. If the board of directors had been more independent, they could have seen and investigated the different items that were being purchased. This would have raised red flags about fraudulent activities occurring. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

Case Study on Business Ethics Introduction (Summarize the Assignment

The sooner that this is identified, is when the board could react to the situation. If this had taken place, it would have been difficult for Kozlowski and Schwartz to use different programs for their own personal benefit. This is because the board of directors would catch and question the activities that were occurring. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

One of the reasons why the fraud became so large is because the board of directors did not inquire about certain expenses. This created a situation where Kozlowski and Schwartz were able to conduct more illegal activities undetected. Over the course of time, their actions became more brazen, based upon the sense of arrogance that was developed from the lack of oversight. The board of directors had the ability to investigate and examine these expenses. However, because the profit margins and the price of the stock were rising, they chose to overlook what was happening. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

References

Tyco I'm Sure that's a really Nice Shower Curtain. (n.d.). [END OF PREVIEW] . . . READ MORE

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