Case Overview:
Tyco International’s 2002 corporate scandal highlighted how unethical actions by top leadership can devastate an organization. Under CEO Dennis Kozlowski and CFO Mark Swartz, the company concealed unauthorized financial transactions—including lavish personal perks and art purchases—using company funds without proper disclosure or oversight. This conduct involved commingling of assets, questionable auditing practices, and weak governance controls. Both executives were later convicted and imprisoned, and Tyco’s reputation and investor confidence suffered greatly.

Questions (Total: 22 marks)

a) Discuss THREE (3) stakeholders affected by the Tyco scandal.
Explain how each stakeholder was affected.
(6 marks)

b) Explain the roles of FOUR (4) parties involved in the Tyco scandal.
(11 marks)

c) Outline and discuss TWO (2) corporate governance mechanisms that Tyco could implement to prevent similar scandals in the future.
(5 marks)