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Organizational Behavior-Written Assignment-7
Leadership Crisis of Tyco
Business School, University of the People
BUS 5113: Organizational Behavior
Dr. Narjerah Delk
May.26.2021
2
Organizational Behavior-Written Assignment-7
Introduction
Tyco, the well-known company with more than forty years of market field was founded by
Arthur J. Rosenberg in 1960. However, it was found to be elaborated in corruption by the CEO,
CFO and the Board of Directors in 2002. This problem occurs due to behavioral corporate
governance. It also led to an emphasis on the ethical aspects of corporate leadership and conduct.
The issue was found that by executing efficient ethical plans and the Tyco has survived after the
corruption scandal (ROMERO, 2020).
Answers to the Questions:
(1) The brief summary of the corruption case.
Tyco Corporation has earned 48.7% in profit with the guidance of CEO Kozlowski
between 1997 and 2002. However, the four main segments of the company has split in
2002. Later that year, the top management of the company together with the CEO, CFO
and several members of boards of directors were responsible for the corruption of the
company. "They were guilty in circumstances ranging from grand larceny, falsifying
documents, fraud and stealing money from the company and selling information regarding
the stock options. The total estimated loss to be more than $420 million was found to have
occurred. It caused of massive loss to stakeholders and conversation of several corporate
governance and conduct problems.
3
Organizational Behavior-Written Assignment-7
2).The reasons why this case is considered a case abuse of leadership power, unethical behavior, and corruption of the company
The Chief Executive Officer (CEO) Kozlowski and Chief Financial Officer (CFO)
Schwartz with the other authorities like Board of Directors were abused the leadership
power in the company. According to the information, they have misused their leadership
power to gain insider information and sold stock to cause loss of 430 million dollars
(Sorkin, 2002).
CEO Kozlowski has given false information about frugal behavior of the company to a
business magazine and misled the public. In point of fact, the Manhattan office of the
company had full of unnecessary expenses. This behavior was unethical and also lying to
the public. The CEO Kozlowski personally reorganized firm on his own way and selected
Schwartz in the CFO position of the company. CFO Swartz was knowing about CEO
Kozlowski's illegal actions but he never questioned him and always withheld information
about those illegal actions.
Lastly, the CEO was sentenced for stealing $170 million from Tyco Company and selling
430 million dollars of stock in an illegal way. The Chief Financial Officer Swartz was also
sentenced for falsifying company documents.
Moreover, one of the Board of Directors was sentenced with grand larceny to stolen $26
from Tyco. Also, he was trying to involve to the federal investigation. Many of members
of director board has used unethical conduct purposely to hide vital information regarding
these cases. In fact, many boards of directors made savings in other companies. Also, one
of directors has used company funds to purchase a home.
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Scenario: Sarah owns a coffee shop in Brantford, Ontario.
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2. Describe one type of Event Sponsorship you would recommend for the coffee shop.
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4. Bob receives a personalized email from the coffee shop. The email suggests that Bob visit soon to get 10% savings on new types of cookies and cakes. Bob says this email is an example of advertising. Is Bob correct?
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Day 1/Chapter 1 Case Study: Guided Practice
WILLIAMS MACHINE TOOL COMPANY
For 85 years, the Williams Machine Tool Company had provided high-quality products to its
clients, becoming the third largest U.S.-based machine tool company by 1990. The company was
highly profitable and had an extremely low employee turnover rate. Pay and benefits were
excellent.
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was due to one product line of standard manufacturing machine tools. Williams spent most of its
time and effort looking for ways to improve its bread-and-butter product line rather than to
develop new products. The product line was so successful that companies were willing to modify
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Case 1
A Filipino clothing brand unwittingly plagiarized the work of a UP Fine Arts student
when a member of their visual and merchandizing team copied the student's work
without his permission. The clothing brand's legal team had been trying to reach
out tc the student for private settlement but the student is determined to seek legal
counsel (Coconuts Manila 2015).
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How it could have been avoided:
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Person Signature
N. Ntuli
Person Name
Nolwazi Ntuli
9
Person Designation
Person Contact Details
Colleague
0847663896
3. The table below shows words with their meanings as they have been listed in
a Glossary. Compare the meaning given with that in a Dictionary and a
Thesaurus
Word
Glossary
Dictionary
Advertising
Any paid form of
non-personal
presentation of
ideas, goods, or
services by an
identified
sponsor.
the action of calling
something to the attention
of the public especially by
paid announcements
Belief
A person's
opinion about
something.
Version 1
2
Capital
Select: 1
88
Learner Signature
Date
Learner Workbook
The money
invested in a
firm
Drive
A strong
stimulus that
encourages
action to reduce
a need.
☐
Thesaurus
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The purpose of a(n)
is to prevent the leak of valuable information to
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Non-disclosureagreement
Employment agreement
Ownership agreement
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