TYCO Embezzlement Essay

Tyco's use of limited purpose entities inflated totally free cash flow. Uses of money from organization loans included: Kozlowskis money 18 million Manhattan condo, $ a couple of million party for Kozlowskis wife in Italy, $ 6, 1000 shower curtain, $ two, 000 garbage can, bucks 13 mil worth of art work PWC chief auditor for TYCO, Richard Sculze, issued deceptive audit studies and was aware of the interest free financial loans. Embezzling cash as a economic fraud which causes an work of conflict of interest. In order to satisfy self-interest (luxurious life) the leaders embezzled the company money that should be utilized to manage the organization in the best interest from the shareholders and stockholders. Kozlowski had used the company by using company money to fulfill his own desire of include a magnificent lifestyle. According to the principle of they must never exploit others to achieve their own objectives. As well, Kozlowski and also other directors got their tasks to manage the corporation well. Yet , they did not manage the company well since they had misappropriated the funds which embezzling the money caused them not to satisfy their responsibilities and violated them instead. TYCO also did not focus on an moral corporate culture during the disposition of Kozlowski. The unethical corporate lifestyle in TYCO was due to the unethical command of the CEO of the firm, Kozlowski. One more ethical concern under the conflict with client positions in the scandal of TYCO is bribery. One illustration of bribery was when Frank Elizabeth. Walsh Junior., the representative of TYCO had received $ twenty million to get helping the arrangement from the acquisition of CIT group without the knowledge of all of those other board of directors. The next ethical concern that pertains to the conflict with client positions is accounting fraud. The auditors, accountants, and the management of TYCO sacrificed the standard of financial reporting information for their personal interest. TYCO failed to provide a true financial picture for several years. Kozlowski, Swartz, and...



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