Tyco’s problem Essay

Tycos job was a consequence of top executives and members of the board non manage what was legal and what wasnt within their company. CEOs Kozlowski and CFO Swartz failed to unwrap 1000000s of dollars of low involvement and involvement free loans they received from Tyco. The executives unethical behaviour resulted in stockholders benefits being written off which ended the company traveling into a monolithic debt. The top executives displayed greed for money.1. What do you believe Kozlowski motive for seeking to turn away gross revenues revenue enhancements on his art purchases was? Kozlowski motive was power and greed for money. Kozlowski knew that he was in a top place of authorization. and most likely believed that no 1 was traveling to oppugn his place or the incorrect things that he was going involved in. There was besides no material answerability forthwith or trueness to Tyco. Kozlowski realized that if he purchased the graphics with Tyco financess and so falsified the reco rds. so he wouldnt have to pay the revenue enhancements out of his ain dismissal and took a great hazard that no 1 would happen out. He abused Tycos assets for his ain pecuniary addition.2. Explain the construct of commingling assets with regard to the Tyco illustrate Commingling assets is and is the act of blending the financess belonging to one party with those of another party. particularly when one party has duty to maintain the financess separate for the other party. Tyco used this as a manner to travel around the system for its on personal additions. concealing the true purposes of its executives. Commingling personal with caution assets is over solely a hapless concern determination. The executives treated the companys money as if it were your ain. Besides. the executives used Tycos concern assets for their ain personal addition by buying graphics. multiple existent estate belongingss. jewellery. and other dearly-won points for personal usage. By commingling assets. the ex ecutives caused attending from revenue enhancement governments and SEC and other condemnable probes due to their delusory behaviours.3. Would it hold been realizable for the board of managers to see the accommodations taking topographic point in the different plans at Tyco? The board members could hold found the unlawful accommodations taking topographic point. solely non really likely in this instance. In a sense. the board of managers is every bit much at mistake as the piquing executives because if they played a more than proactive function in the concern operations. so the executives may non hold gotten away with every bit much as they did for the long period of clip. If they had taken a more active function. they would hold found deceptive paperss and fraud strategies that were go oning manner Oklahoman than when they were finally discovered.As a consequence of the board non taking an active function. the executives actions went on for some clip without any notice. The exec utives knew what they were making was incorrect and illegal. being involved in revenue enhancement equivocation. increased net incomes and commingling assets. The executives were besides passing out illegal unauthorised fillips. They besides become involved in paying off functionary to be ease on the affair. Overall. the incorrect actors of the company knew that their actions were illegal. unethical. and dearly-won to Tyco. but they risked all of these things for their ain personal addition. They believed that no 1 would catch on to their actions. but like all offenses that condemnable commit. it finally catches up with them.