TYCO

INTERNATIONAL
SCANDAL(2002)
PRESETED BY
• WAQAS FAROOQ
• TALHA FAROOQI
• KHIZAR KHAN
• NASHRA KHIZAR KHAN
• HADIQA AMJAD
• BISMA SABRI
 SECTION DIVIDER
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EMBEZZLEMENT OF
COMPANY FUNDS
• Act of Dishonestly or
Misappropriation
• Financial Fraud
• Priority
• Fulfil desires by Embezzlement in
Company funds
• Deeds of leaders were Highly
Unethical

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PRINCIPLE OF ENDS
• Never exploit others to achieve own
objectives.
• Kozlowski Exploited the right of his
employees in order to buy himself
Luxury homes, Yachts & fine arts.
• Lord Michael Ashcroft also involved in
misappropriating the company Fund.

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PRINCIPLES OF DUTY
• Each Person / Employee has his own
duty or obligation that he should fulfil
as a Human being or as legally also.
• Tyco leaders didn’t manage the
company well as they
misappropriated the funds.
• Embezzling funds breach this
principle.

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WHY EMBEZZLING FUND HAPPENED IN TYCO
INTERNATIONAL & ALMOST ALL DIRECTORS WERE
INVOLVED IN IT ?
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• Prof. Thorsen ( N.D )
• Unethical Corporate Culture.
• Gaining personal interest over the
interest of Company.
• Assumption that embezzling fund Is
correct and is a normal thing.

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 BRIBERY

• Involves offering or accepting

something to perform a service which
goes beyond normal job description.
• Considered as Crime.
• Severely Punished.

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TWO MAJOR BRIBERY
CASES
1. Frank E. Walsh Director of Tyco
International received $20 Million
from CIT Group
2. Stephen W. Foss Director of Tyco
International received $751 101
from Cessna Citation Aircraft & Pilot
Services

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HISTORY OF TYCO
INTERNATIONAL LTD.
• In 1960, with a science Ph.D. from Harvard,
Arthur J.Rosenburg opened a Research
Laboratory in Waltham, U.S.A & did
experimental work for the government for
the two years.
• Two year later Arthur J.Rosenberg
incorporated Tyco Inc. &branched into the
commercial sector
• He assembled a team of top researchers &
tyco developed high tech developed product
for the market place

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HISTORY OF TYCO
INTERNATIONAL LTD.
• In 1965 Rosenburg established ambitious
growth schedule for his company to fulfil the
gaps in its development & distribution
network. Tyco began to acquire other
companies and its happen till 1965.
• From 1963 to 1969 company increased his
profit from less than 1 million to 41 million.
• In 1992 Kozlowski became CEO and after
that many acquisition takes place Tyco
international merge with more than 3
companies.
• Tyco international acquire more than 1000
companies till now.

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OPERATING GROUPS
• Tyco international s a diversified
manufacturing & service company,
with five main operating groups.
• Tyco Fire & Security is the world leader
in both services of fire & electronic
security system.
• Tyco Electronics is one of the world’s
largest suppliers of electronic
components and is also one of the
world’s leading provider of undersea
fiber-optic network & services.
• Tyco Healthcare manufactures &
distributes a wide variety of medical
devices and supplies.

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OPERATING GROUPS
• Tyco Engineered Products & Services is
the world’s leading maker of industrial
valves & control & serves to many
industries.
• Tyco Plastic & Adhesives is the number
one Producer of Plastic thrash bags in
the United States and holds world
leading position in both plastic
garments hangers & duct tape.

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Presented by: Khizar Khan

Accounting Fraud
Act or attempt to manipulate the
financial statement
Legal issue
Erode trust
Sacrifice the quality of financial reporting
Failed to give true financial picture
Falsifying business record
Financial gimmicky
Denis Kozlowski accused on Tax Evasion Dennis’s Kozlowski, CEO

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Mark Swartz, CFO
Accounting Fraud
Jerry Boggss President of Tyco Fire & Security
Scalzo Tyco’s Former Auditor Improper professional
Conduct
Violated the principle of utilitarianism
True Values unknowable
Investor cant evaluate and analysed Company’s
performance
Tax Evasion (Government loss)
Principle of Right

Presented by: Khizar Khan

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 Inappropriate
Discharge of
Employee
Minor Ethical issue
Employees forced to be terminated
Discharged the employed without
notice
Unfavorable reviews to Tyco

Richard Scalzo, Auditor

Presented by: Khizar Khan
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Mark A. Belnick, Chief
General Counsel Inappropriate
Discharge of Employee
David & Jeanne Tarrile
Failed to follow four basic principles under
discharge of employee
I. Principle of just cause
II. Principle of due process
III. Principle of universalizability
IV. Principle to ends

Presented by: Khizar Khan

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 COMPARISON 01
TOPIC 01
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amet commodo magna eros quis urna.
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massa. Fusce posuere, magna sed pulvinar
ultricies, purus lectus malesuada libero, sit
amet commodo magna eros quis urna.
TOPIC 02
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adipiscing elit. Maecenas porttitor congue
massa. Fusce posuere, magna sed pulvinar
ultricies, purus lectus malesuada libero, sit
amet commodo magna eros quis urna.
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adipiscing elit. Maecenas porttitor congue
massa. Fusce posuere, magna sed pulvinar
ultricies, purus lectus malesuada libero, sit
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COMPARISON 02
TOPIC 01 COMES HERE
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commodo magna eros quis urna.
Nunc viverra imperdiet enim. Fusce est. Vivamus
a tellus.
Pellentesque habitant morbi tristique senectus et
netus et males
Pellentesque habitant morbi tristique senectus et
netus et malesuada fames ac
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Fusce posuere, magna sed pulvinar ultricies,
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commodo magna eros quis urna.
Nunc viverra imperdiet enim. Fusce est. Vivamus
a tellus.
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netus et males
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netus et malesuada fames ac
TOPIC 02 COMES HERE
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CHART

Statistics here Sales

6

0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

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TABLE

TOPIC 01 TOPIC 02 TOPIC 03 TOPIC 04 TOPIC 05

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TOTAL Text Text Text Text

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TEAM
ALEXANDER MARTENSSON
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VICTORIA LINDQVIST
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MIRJAM NILSSON
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ANGELICA ASTROM
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