Case Study 20,”Tyco: I’m Sure That It’s a Really Nice Shower Curtain” Analysis
Richard T. Lee
Columbia Southern University
Abstract
The author identifies three issues that display how disingenuous Mr. Koslowski was during his Tyco employment. The case study starts with how Koslowski had given a speech to a graduating class on how they will need to make ethical choices in their jobs, and the importance of moral values as well as later pointing out the irony of Kozlowski's statement concerning employee theft as an 'egregious crime'. Then afterwards he is charged with tax. The writer laid out the facts of the case study, balancing several high dollar purchases made with Tyco’s company monies with mentions of the executives’ personal compensation and gain. The author did this to paint a clear picture of the events and to give the reader a comprehensive idea of the wealth involved in the executive’s personal purchases with company money (Stanwick & Stanwick, 2009). We will discuss the serious issues of the misappropriation of company funds to include: use of funds for personal use, “forgiveness loans”, and unauthorized bonuses. Let’s, start with the use of corporation funds for personal use and gain.
Use of company funds for personal use
Koslowski used company money to purchase pieces of art work that costing millions of dollars. Later, he received relocation loans he used to buy boats and homes worth millions. Tyco executives comingled assets. This means they combined assets from several accounts and blended them together. Investors in commingled fund investments benefit from economies of scale, which allows for lower trading costs per dollar of investment, diversification and professional money management (Foster, 2013). Executives mixed personal purchases with corporate funds, utilizing various schemes to hide or explain their...