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Business Ethics Introduction Summarize The Overall Viewpoint Case Study

Business Ethics Introduction (Summarize the overall viewpoint of the author, and discuss the major issues presented in the case.)

In the case, the author is showing how Dennis Kozlowski and Mark Schwartz were at the top of an elaborate scheme to defraud Tyco. This was accomplished by talking about how their troubles began based upon Kozlowski's desire to avoid paying taxes on artwork in New York State. As the investigation expanded, the overall scope of the fraud became much larger. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

This is when the different programs were discovered that allowed for rampant abuses to occur. Most notably: the payment of employee expenses, the key employee loan, relocation and bonus programs. The combination of these factors allowed for Tyco executives to take large payouts from anyone of these initiatives and hide it from investors. This is how both men were able to engage in such rampant abuses that enabled them to use $179 million in company funds as their own. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

At the same time, the author provides a timeline of events, how the Tyco scandal unfolded and who were the key players. This provides a background of what happened and the way the fraud was uncovered. When this is used in correlation with the different programs that allowed these abuses to occur; the reader has a good understanding of what took What do you think Kozlowski's motivation for trying to avoid sales taxes on his art purchases was? Explain.

The primary motivation was to reduce the amount in taxes that he is paying for the artwork. This is based upon a philosophy that was adopted by Kozlowski. It was focused on reducing the total tax liabilities as much as possible. This meant that he would often engage in practices that were questionable in achieving these objectives. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

After he was able to get away with these tactics for many years, is when Kozlowski became more brazen. This is when he had the art dealer ship empty crates to New Hampshire. While Kozlowski, took the paintings and hung them in his New York apartment (up the street). The problem was that the New York State tax authorities caught the invoice and questioned its legitimacy. This is what started the whole investigation into Kozlowski's activities and the practices of the firm. ("Tyco I'm Sure that's a really Nice Shower Curtain," n.d.)

As a result, Kozlowski was trying to avoid paying sales taxes on his art. This is because he was able to engage in similar activities in the past and was never caught. The artwork was no different, as he had become arrogant and believed that he was above the law. It…

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Tyco I'm Sure that's a really Nice Shower Curtain. (n.d.).
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