...Case Study Analysis MGT/488 William Funderburk Tyco International: A Case of Corporate Malfeasance Tyco International, having its former chief executive, Dennis Kozlowski and its former chief financial officer, Mark Swartz convicted of grand larceny, conspiracy, and fraud, had a long future of rebuilding trust ahead of them. Herein, several issues are discussed including, how the lack of corporate governance at Tyco contributed to its downfall will be discussed, how Dennis Kozlowski used organizational structure and controls to implement his strategic plan, the role of Tyco leadership in strategic implementation, and the role of strategic entrepreneurship in creating firm value at Tyco. “Corporate governance is the set of mechanisms used to manage the relationship among stakeholders that determines and controls the strategic direction and performance of organizations” (Hitt, Ireland, & Hoskisson, 2009, p. 276). Kozlowski and senior managers broke their fiduciary duty. Board member broke the duty of loyalty and senior manager broke their duty as agents of the Board of Directors. No approval of bonuses or loans was gained from the board, therefore breaching disclosure of all relevant information. The directors failed to monitor management, thereby failing to fulfill their duties of overseeing strategy and performance. Directors allowed wasteful spending of corporate funds in the form of bonuses and perquisites Kozlowski’s management plan...
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...TYCO: THE PRECURSOR, THE SCANDAL, THE REBIRTH By Anya Davies, Student MGMT/103 Facilitator: Dr. Charles A. von Urff Week 2 assignment Individual Written Paper Due September 31, 2014 Submitted September 31, 2014 Introduction Every year or so we hear about big corporate accounting scandals, most of which originate in the United States. “Corporate malfeasance has earned a place among the defining themes of the last decade-and-a-half, helping give birth to the present global recession and the Occupy Wall Street Movement”. Based on the amount of money stolen and on how unethical and illegal its ground was, Tyco Scandal, happened in 2002, is definitely the most notorious (The 10 Worst Corporate Accounting Scandals). The Precursor Arthur J. Rosenberg founded Tyco Incorporated in 1960, in Waltham, Massachusetts. In 1982 Tyco was divided into three business segments: fire protection, electronics and packaging. In the 1990s Tyco was reorganized and comprised “electrical and electronic components, health-care and specialty products, fire and security services, and flow control. By 2000, Tyco Inc. had acquired more than three major companies such as ADT, the CIT Group, and Raychem” (Unethical Issues). Leo Dennis Kozlowski became the CEO in 1992, after being the company’s CFO. He “became the personification of the acquisition mania of the 1990s, and assumed the qualities necessary for the task—brutishness, aggressiveness, and a commitment to the accumulation of...
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...INTERNATIONAL BUSINESS STRATEGY SPRING 2009 Office Phone Email Chiung-Hui Tseng 61411A (Institute of International Business) (06) 275-7575 ext.53512 ctseng@mail.ncku.edu.tw Texts Ireland, Hoskisson, and Hitt (2009) The Management of Strategy: Concepts and Cases, 8th Edition, South-Western Press. Course Objectives In the past a few decades, the trend of globalization has rendered the world economies more interdependent. All businesses today (both international and domestic ones) are exposed to international competitive forces that can have serious consequences for their performance and survival. Such international competition especially brings new challenges and problems to corporations and managers directly involved in foreign markets. Among various issues arising from international operations, this course particularly focuses on the managerial challenges associated with strategy development and corporate management for those firms whose business activities transcend national boundaries. Specifically, objectives of this course are twofold: 1. to expose students to issues related to business strategy within the context of global markets and competition 2. to provide students with significant opportunities to develop oral communication and presentation skills Requirements and Grading Individual Activities: Participation 40% Exam (close-book) 20% Group Activities: Chapter Text Presentation and Discussion Leading...
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...Course Global Business Strategies https://homeworklance.com/downloads/mgt-488-entire-course-global-business-strategies/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Lancehomework@gmail.com Visit our Site for More Tutorials: ( http://homeworklance.com/ ) MGT 488 Entire Course Global Business Strategies Week One: Strategic Business Continuity and Internal Risk Assessment Details Due Points Objectives 1.1 Identify key firm capabilities. 1.2 Describe the components of sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following...
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...Course Global Business Strategies https://homeworklance.com/downloads/mgt-488-entire-course-global-business-strategies/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Lancehomework@gmail.com Visit our Site for More Tutorials: ( http://homeworklance.com/ ) MGT 488 Entire Course Global Business Strategies Week One: Strategic Business Continuity and Internal Risk Assessment Details Due Points Objectives 1.1 Identify key firm capabilities. 1.2 Describe the components of sustainable competitive advantage. 1.3 Analyze the influence of the organization on strategic business continuity. Readings Read Ch. 3 of Strategic Management: Competitiveness and Globalization, Concepts and Case. Participation Participate in class discussion. All Days 1 Discussion Questions Respond to three discussion questions. Days 3, 4, 5 3 Weekly Summary Write a 300-350 word summary of how this week’s material relates to you professionally and to organization. Post to Weekly Summary Thread. Day 7 1 Learning Team Instructions Create the Learning Team Charter. Select one of the following Virtual Organizations to use throughout the course for strategic plan development: • Riordan Manufacturing • Huffman Trucking • McBride Financial Services Day 7 Individual Internal Risk Assessment Resource: University Library’s Datamonitor 360 Access the University Library’s Datamonitor 360 and look up one of the following...
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...LEG500 – Law, Ethics, and Corporate Governance Professor’s Title Date Whistleblowing and Sarbanes-Oxley The federal government passed and put into law the Sarbanes-Oxley Act of 2002 (SOX) to primarily protect whistleblowers from retaliation for reporting corporate fraud and financial malfeasance to the government. The negligence became apparent in the 1990’s when corporations such as Enron, HealthSouth, Tyco and WorldCom were found to have grossly overstated their earnings. This cost billions of dollars in losses to shareholders and caused the near-collapse of the stock market (Prentice, 2010, p. 17). The companies were able to hide, scam or misrepresent their earnings due to the dot-com boom, soaring investments, and auditor fraud. The Sarbanes-Oxley Act contains many sections, sub-sections and creation of other agencies to enforce it. It was a sweeping change to standard reporting practices and was created to restore investor confidence, hold corporations and auditors financially and criminally accountable, and protect whistleblowers. Prior to the creation of SOX the whistleblower had no protection from retaliation by the organization. Whistleblowers had fears of criminal prosecution, bodily harm and job loss if they reported the misdeeds of their employer both publicly and privately. The Sarbanes-Oxley Act of 2002 redefined the whistleblower. An examination of the characteristics of a whistleblower, the Global Capital Markets Advisors whistleblower case, and whistleblower protection...
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...What is a whistle blower? What is a whistle blower? To the untrained eye, you may think that a whistle blower is a person who controls a sport or game with a loud device called whistle. In reality, a whistle blower has become an important part of the American business landscape. So what is a whistle blower? According to Blacks Law Dictionary, a whistleblower is an employee who turns against their superiors to bring a[n] problem out in the open. BusinessDictionary.com states that a whistle blower is a person who discloses improper or criminal activity within an organization. Finally, under Sarbanes Oxley, “A “whistleblower” is someone, usually an employee, who reports an employer who has broken the law to an outside agency.” Under this very important act, whistleblowers are protected by federal and state laws. Employers may not retaliate against them for reporting misconduct. Whistleblowers may not be fired or otherwise mistreated, and in some instances the government may reimburse them for costs incurred as a result of reporting. Most importantly, the federally enacted statute of Dodd – Frank defines a whistle blower as, “Any individual who provides . . . information relating to a violation of the securities laws to the Commission in a manner established, by rule or regulation, by the Commission.” There are two types of whistle blowers: external and internal. An internal whistle blower is a person who reports misconduct on a fellow employee or superior within their company...
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...FROM GREAT TO GHASTLY: HOW TOXIC ORGANIZATIONAL CULTURES POISON COMPANIES THE RISE AND FALL OF ENRON, WORLDCOM, HEALTHSOUTH, AND TYCO INTERNATIONAL David R. Lease, Norwich University Abstract This paper presents an analytical and comparative study of four recent corporate scandals involving organizations that had previously been recognized as both ethically and organizationally sound. Based on these case studies, the following issues are discussed: (1) The role of leader behavior and organizational/leadership styles in shaping the corporate organizational culture of an organization, and (2) The extent to which this culture renders the organization and its members (including the top executives) prone to ethical misbehavior. The four companies selected for this case analysis are: Enron Corporation, WorldCom, Inc., Tyco International, Ltd., and HealthSouth Corporation. Each case is considered individually. The basic elements in the scandal are outlined and the principal aspects of each organization’s corporate culture discussed, with special emphasis on the influence of leadership styles and leadership behavior/practices on organizational culture. The four cases are then compared and contrasted in the light of the existing evidence on the relation between corporate culture and ethical misbehavior. PRELUDE “We were doing something special. Magical. It wasn’t a job – it was a mission. We were changing the world. We were doing God’s work.” – Jeffrey Skilling, former Enron COO, President...
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...Enron Case Study Seven years after the fact, the story of the meteoric rise and subsequent fall of the Enron Corporation continues to capture the imagination of the general public. What really happened with Enron? Outside of those associated with the corporate world, either through business or education, relatively few people seem to have a complete sense of the myriad people, places, and events making up the sixteen years of Enron’s existence as an American energy company. Some argue Enron’s record-breaking bankruptcy and eventual demise was the result of a lack of ethical corporate behavior attributed, more generally, to capitalism’s inability to check the unmitigated growth of corporate greed. Others believe Enron’s collapse can be traced back to questionable accounting practices such as mark-to-market accounting and the utilization of Special Purpose Entities (SPE’s) to hide financial debt. In other instances, people point toward Enron’s mismanagement of risk and overextension of capital resources, coupled with the stark philosophical differences in management that existed between company leaders, as the primary reasons why the company went bankrupt. Yet, despite these various analyses of why things went wrong, the story of Enron’s rise and fall continues to mystify the general public as well as generate continued interest in what actually happened. The broad purpose of this paper is to investigate the Enron scandal from variety perspectives. The paper begins with a narrative...
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...Health South: The Scrushy Way It is a cliché that “crime does not pay.” Seemingly when one has the charisma to lead a multi-billion dollar corporation, and power to affect the well-being of thousands, perhaps crime does pay – in the short term. It’s easy to rationalize that what one does is not a crime “if it hurts no one,” or if one is doing amazing amounts of charity work. Richard M. Scrushy is a case in point – he seemed to have it all, the all-American success story, yet dishonesty, and unethical practices, when engaged in hurt everyone – for a long time. As this author has explored through this Business Ethics class, unethical behavior looks only at the short-term, what can one get now? The Carpenter taught, regarding those who did not follow wisdom, that they were “like unto a foolish man, which built his house upon the sand: and the rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall of it” (Matthew 7:26-27, King James Version). The character of the individual who cheats, or takes advantage of others, gets bent out of shape and distorted, until it is no longer strong enough to provide a sure foundation, and without that they fall and they hurt themselves and those around them. Impact on Stakeholders In the house that Scrushy built, this author identifies several stakeholders impacted by the dishonesty, including: Richard Scrushy, his management team, his board of directors, his employees, the patients...
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...Draft - Corporate Governance Considerations This material was prepared by Eliot H. Sherman – July 2005 FOCUS Learning Objectives By the end of this chapter, you should be able to: Understand the issues related to agency and delegated responsibility. Describe the similarities and the differences in the corporate scandals that have been identified in the past few years Identify the responsibilities of managers to the shareholders and other stakeholders associated with their corporations. OVERVIEW Corporate governance is not a new topic. It has been around for many years, often described as the “agency issue.” However, in recent years it has taken on increased significance, demanding increased attention. Since 2001, in particular, the corporate marketplace has seen a significant number of headline grabbing scandals involving major corporations. These scandals have raised new questions about corporate governance and, as a direct consequence of some of these situations, the U.S. Congress passed a very broad piece of legislation called the Sarbanes-Oxley Act of 2002. This law has had a wide range of consequences directly affecting large public corporations and public accounting firms and, less specifically, smaller public firms, private corporations, not-forprofit organizations and regulatory entities in many different ways. This law mandates some specific actions for large public corporations, many of these actions being required shortly after the legislation passed and others in...
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...Blue Sky Laws F. Antitrust (The Sherman Act, The Clayton Act, and The Robinson-Patman Act) 111. The Foreign Corrupt Practices Act (FCPA) of 1977 makes it illegal for an American businessperson to give anything of value to any foreign official in order to influence an official decision. A. Applicability of the Act B. Prohibitions under the Act C. Penalties for Violations of the Act 1. Criminal 2. Civil 3. others D. Defense under FCPA 1. Lawful payment 2. Bona fide expenditures E. Fraud/Scandal of the FCPA of 1977 1. Detection method 2. Importance of Early Detection 3. Big problems for small corporations/organizations 4. Types of fraud and who is involved 1V. Sarbanes Oxley Act A. The effects of Sarbanes-Oxley Act on corporate culture (1) Increase in accounting costs (2) Increased records-management requirements (3) Salary increases (4) Increase in audit fees B. Need for Continuous Auditing/ Continuous Monitoring and its benefits C. Role of internal Auditing and Management. D. Identification of Control Deficiencies – What is the Act doing to minimize. E. Fraud/Scandal, Waste,...
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...FIVE META-TRENDS THAT ARE CHANGING OUR WORLD* explored by David Pearce Snyder Consulting Futurist INTRODUCTION Last year, I received an e-mail from a long-time Australian client, requesting “five meta-trends that will have the largest impact on global human psychology.” The wording of the brief request gave the impression that they were ordering five off-the-shelf commodities which we could pull from stock and ship in seven days. Moreover, the term “meta-trend,” while increasingly in common use, lacks specificity as a contract deliverable. I asked them to describe what they meant by “meta-trend.” The client, The Meikle Files (www.meiklefiles.com.au), provides leadership development and career coaching for executives of multi-national firms. They replied that they were looking for “future trends that would most powerfully affect human consciousness and behavior around the world.” The Greek root “meta” clearly denotes a transformational or transcendent phenomenon, not simply a big, pervasive one. A Google search on “meta-trend” turned up a rich diversity of uses, almost all of which clearly involve convergent or catalytic change, as opposed to linear or sequential change. “The Oxford English Dictionary and Google,” I wrote back to the client, “agree that ‘meta-trend’ would most appropriately be defined as an evolutionary, system-wide development arising from the simultaneous occurrence of a number of individual demographic, economic and technologic trends.” “Each of your...
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...Abstract The present paper aims at reviewing the various developments in Corporate Governance in India. Corporate Governance has gained a lot of importance and momentum the world over. The objective of any corporate governance system is to simultaneously improve corporate performance and accountability as a means of attracting financial and human resources on the best possible terms and of preventing corporate failure. In short Corporate Governance is about promoting corporate fairness, transparency and accountability. Keywords: Corporate Governance (CG) Security and Exchange Board of India (SEBI) Stakeholders Clause 49 OECD principles Chapter: 1 INTRODUCTION 1.1 Prelude Corporate governance (CG) has emerged as a very important ideal. The reason is, today companies are substantially contributing to the overall growth and development, particularly in emerging economies such as India and a healthy investment environment is vital. The corporate form of business has succeeded gradually and expanded worldwide. However, not all companies are managed successfully. There has been a spree of corporate frauds worldwide, e.g., Enron in the United States and Satyam Computers in India. The latter had accounting and auditing flaws apart from lack of accountability and oversight by Independent Directors at Board meetings. There was no whistle-blowing in case of Satyam Computers unlike Enron. The Satyam Computers revelation was an outcome of a takeover...
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...THE NATION’S NEWSPAPER BS2003-01a Collegiate Case Study Enron law firm called accounting practices 'creative' By Greg Farrell www.usatodaycollege.com Accounting fraud Part I: The problems “Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices always illegal or can they ever be justified? This case study will present examples of companies who have used inappropriate accounting practices, the results of their deceptions and the government's plan to avoid future incidents. Did banks play role in Enron scandal? By Edward Iwata Banks face accusations in Enron case By Edward Iwata Banks defend e-mail about Enron By Edward Iwata WorldCom finds accounting fraud By Andrew Backover, Thor Vladmanis, Matt Kranz and Michelle Kessler Former controller comes up more often By Andrew Backover and Chris Woodyard Cover story WorldCom’s bad math may date back to 1999 By Jayne O’Donnell and Andrew Backover CFOs join their bosses on the hot seat By Jim Hopkins Capitalizing on oldest trick in book How WorldCom, and others, fudged results By Matt Krantz USA TODAY WorldCom's accounting game is stunning investors who thought the loophole the telecom firm used was sewn shut years ago. Bros. "How was this overlooked...
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