Checkpoint 1 Impacts of Unethical Behavior
The company that I researched for unethical practices is Tyco International; the nature of the controversy was the fraud and scandals that Tyco international has gone through. In 1999 the SEC began to analyze Tyco’s accounting practices do to the company was standing in 28 million dollars in debt. They were able to pinpoint many areas that were not adding up with the amounts money was being taken and there was really no good explanation. They found out that the CEO at that time Dennis Kozlowski and the CFO Mark Swartz failed to disclose millions of dollars of low interest and interest free loans from Tyco. The company was so far in debt they almost had to file bankruptcy, the unethical behavior from the CEO and the CFO resulted in the shareholders lost millions of dollars because their shares went from $60 dollars down to $15 dollars. It is said that between the both of them they stole over $170 million dollars from the company. If I had been an accountant for this company I would have questioned the debt earlier before it became so far in debt that it was very hard for them to recover, also I would have been checking the books constantly and compared books to prior years. With a company that big they should have had many people keeping track of their books. I know the CFO was very much involved and can change the records but the scandal did not happen in just one year they could have been checking books from prior years. I don’t think there would be too much to change the controversy because it happened so quickly they really did not have time to react and have a backup plan. Either way they did get dragged through the mud a little. The affect of the unethical behavior has changed the profitability of the company drastically but is now starting to regain their name with the new CEO pillmore and he has worked hard to reestablish the company’s integrity. He has also set new guidelines for ethical conduct and has...
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