(Ferrel, Fraedrich, & Farrel, 2009)
How will the implementation of the Sarbanes-Oxley Act of 2002 prevent future dilemmas in Tyco?
Sarbanes-Oxley increases: the penalties for such actions, limits the role that the board of directors will have with managers, it creates an accounting oversight board and it requires the CEO / CFO to certify under oath that all financial information is correct. This will severe as a deterrent and help to provide mechanisms, to the prevent ways that the fraud was able to be perpetuated at Tyco. (Ferrel, Fraedrich, & Farrel, 2009)
Can the SEC trust Tyco's new board?
Yes. This is because those members who were involved with Kozlowski were purged and none of the current members have committed any acts of wrong doing. These facts along with the Sarbanes-Oxley in place, means, that there is no reason for the SEC not to trust the board. (Ferrel, Fraedrich, & Farrel, 2009)
Firestone: A Reputation Blow Out
To what extent do companies need to make a proactive effort to collect and analyze data concerning possible safety issues?
Companies must be able to identify these different issues early, so that they can be able to understand the problems that are associated with various products that are sold to the general public. (Ferrel, Fraedrich, & Farrel, 2009)
What mistake did Ford, Firestone, and NHTSA each make in their early attempts to handle the crisis?
The mistake that Ford made was: to assume that the overall extent of the problems with...
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