Tyco

Type :

Research papers

Pages :

4 pages

Format :

.doc

Published date :

10/23/2007

Category :

Business & market

Sub category :

Business strategy

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Summary :

Introduction
The indictment and ultimate conviction of Dennis Kozlowski
The Tyco International scandal
1. The accounting scandal
2. Tyco CEO Dennis Kozlowski
3. The 2002 announcement made by Morgenthau Attorney's office
4. The indictment against Kozlowski and Swartz
The reason behing the scandal
The Sarbanes Oxley Act of 2002
Conclusion
Bibliography

Abstract

tyco was founded in 1960 by Arthur J. Rosenberg as a small research laboratory that did testing for the government. Throughout the 1960's tyco began to focus on the commercial sector by producing new technology and materials as well as energy conversion products. The company went public in 1964, and it began to quickly expand by acquiring other organizations. The newly acquired organizations helped tyco International improve in their particular industry, offering new products and services. These organizations were able to fill gaps in the company's distribution network. As time went on, tyco continued its growth through the acquisition of companies and by advancing their technology. This expansion continued throughout the 1990's during the Internet boom. The CEO of tyco International, Dennis Kozlowski, was named the most successful CEO and honored by magazines such as Time (www.referenceforbusiness.com). In 2002, Kozlowski and tyco CFO Mark Swartz were accused of stealing over $600 million in corporate money through a variety of dishonest business practices and schemes. In 2005, both men were convicted on various charges and were sentenced to 8 1/3-25 years in prison. The scandal that occurred at tyco International demonstrates the importance of business ethics, and it proves that stronger internal controls are essential to corporate honesty.