Tyco Research Report Essay

Submitted By kcato411
Words: 491
Pages: 2
Open Document
Kevin Cato MGT-207
Research Report
Fiduciary- Mark Swartz (Chief Financial Officer), Mark Belnick (General Counsel)
Tyco International, Ltd.
1. Both Swartz and Belnick acted socially irresponsible. They both acted for their benefit to the detriment of the other stakeholders in the organization (pg28). Swartz was given a $28 million bonus from the CEO without disclosing it to the board. Swartz manipulated two corporate loan programs for his own personal gain(pg5). Swartz and Belnick failed to disclose multi-million dollar low interest and interest-free loans they which they did not repay to the company (pg5).
2. Both Swartz and Belnick acted to maximize their own personal profit but they were not seeking to maximize profits for the company. They were charged with stealing $170 million in company loans which is in itself contradictory to maximizing profits (pg5). In addition to stealing money through company loans, they also made it look like they were generating revenue obtaining $430 million through fraudulent sales of securities (pg5). Based on the stakeholder interest theory (pg28) they used funds invested by employees and other stakeholders’ into programs designed to benefit the stakeholders as a whole for their own personal gain(pg5).
3. The stakeholder interest theory is the fiduciary considering other stakeholders’ interest in their decisions. Belnick did not act with stakeholders’ interests, but Swartz in particular did not consider stakeholders’ interests in his actions. Swartz stole money from loans in the company name as well as making fraudulent transactions which gave the appearance of making a profit (pg5). Belnick also stole money to a lesser extent through personal loans disguised as loans for the company. Belnick was also charged with falsifying business records (pg5) to cover up their actions to give stakeholders a false sense of security that they were profiting when in reality they were not.
4. N/A
5. The Sarbanes-Oxley act set up a system of checks and balances in terms of corporate governance, auditing supervision and responsible accounting (pg9).The Public
Show More

Related Documents: Tyco Research Report Essay

Essay on Internal Control and publically Traded Companies

The Economics of Management Decisions Professor Little and Professor Riley February 17, 2015 The Sarbanes-Oxley Act was implemented in response to a number of financial scandals that took place in the early 2000s. These scandals included Enron, Tyco & WorldCom, all of which made investors nervous. This Act was drafted by Paul Sarbanes and Michael Oxley, and signed by President Bush on July 30, 2002. This Act was established to enhance corporate responsibility, financial disclosures, and overcome…

Words 2519 - Pages 11

The Number by Alex Berenson Book Review Essay

Such an intense focus has been placed on quarterly earnings as an indication of a company’s success by everyone from analysts to executives that ethics have for the most part been thrown out the window, sacrificed to the all important number, i.e. earnings per share. This is the theory in Alex Berenson’s book “The Number: How the Drive for Quarterly Earnings Corrupted Wall Street and Corporate America.” This number has become part of a game to be played, a figure to be manipulated – beat the number…

Words 1096 - Pages 5

Sarbanes-Oxley Act Of 2002

Sarbanes-Oxley Act of 2002 Research Paper Imagine over $60 billion of shareholder value, almost $2.1 billion in pension plans, and initially 5,600 jobs - disappeared (Associated Press, 2006). One would have to wonder how that is possible. These are the consequences the investors and employees of Enron Corporation endured after the Enron scandal started to unravel. This paper will focus on the infamous accounting scandal of Enron Corporation. It will also discuss how the company was…

Words 2814 - Pages 12

Forensic Accounting In Practice

investigative services that make use of the CPA's skills, which may or may not lead to courtroom testimony. Forensic accounting can involve the application of special skills in accounting, auditing, finance, quantitative methods, certain areas of the law and research, and investigative skills to collect, analyze, and evaluate evidential matter and to interpret and communicate findings (www.nafanet.com). Forensic-accounting is the application of accounting principles, theories, and disciplines to facts or hypotheses…

Words 1242 - Pages 5

Business: U. s. Securities and Exchange Commission and Sarbanes Oxley Act Essay example

The impact that the Sarbanes Oxley Act of 2002 rules have on the function of company executives, auditors and the reporting of financial statement by the publicly traded companies. Introduction After the major financial scandals of WorldCom, Tyco and Enron, legislation was implemented to build the confidence of investors by having businesses comply with accounting regulations and giving whistleblowers protection under the law. The architects of the law, Senator Paul Sarbanes and Representative…

Words 2053 - Pages 9

Forensic Accounting Essay

Forensic Accounting in Practice: Forensic Accountants: Fraud Busters A forensic accountant is part investigator, part auditor, part attorney, and part accountant (Levanti, T.). Due to the increase in high-profile cases of companies and individuals, forensic accounting is a growing and popular field in the business and forensic subjects. A forensic accountant is someone who is often retained to analyze, interpret, summarize, interviews and present complex financial and business related issues in…

Words 1782 - Pages 8

Essay about History of the Relationship Between Fasb & Iasb

Running head: RELATIONSHIP OF IASB AND FASB The Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board Accounting Theory & Research 541 The History & Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board The International Accounting Standards Board (IASB), and independent standard-setting body of the IFRS Foundation was created after the Financial Accounting Standards Board (FASB)…

Words 1651 - Pages 7

Corporate Governance and Auditors Essay

CHAPTER 1 INTRODUCTION BACKGROUND There are a number of positive developments in the economy since the introduction of foreign currency (multi currency system), which if sustained, will spearhead economic recovery in the short to medium term horizon. These developments included the introduction of the multi currency system and the liberalization of the exchange control, the formation of government of national unity (GNU) and the engagement with multilateral institutions and the donor community…

Words 14732 - Pages 59

Accounting Information Systems Research Paper

Accounting Information Systems Research Paper Abstract The Sarbanes-Oxley Act of 2002 (SOX) was enacted into law in 2002 in the wake of corporation financial reporting scandals involving large publicly held companies. SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of financial statements, and to institute…

Words 3030 - Pages 13

Internet Mini Case 3 Stryker Essay

Internet Mini Case #3 Stryker Corporation Maryanne Rouse Stryker Corporation (SYK), a leading maker of specialty medical and surgical products, traces its origins to a business founded by Dr. Homer S. Stryker, an orthopedic surgeon with a talent for invention and a desire to improve the tools that physicians use to treat patients. At the end of 2000, Stryker was composed of three operating divisions: orthopedic implants (55% of sales); medical and surgical equipment (38% of sales); and physiotherapy…

Words 2009 - Pages 9