Dennis Kozlowski: The Implications of Unethical Behavior

2629 Words Jul 15th, 2018 11 Pages
Brief Historical Summary Dennis Kozlowski, is the former Chief Executive Officer (CEO) of Tyco International Ltd. During his tenure, Kozlowski engaged in activities that were considered unethical. In 2005 Kozlowski was convicted of misappropriation of corporate funds. Kozlowski had been involved in illegal and unethical behavior during most of his tenure. The findings that lead to the conviction of the former CEO were due to the persistent questioning and interrogating tactics of the shareholders and stakeholders because Kozlowski held within his authority to make decisions that could change the course of the company. Business ethics, auditing practices, and government regulations will forever be affected by the $500 million loss …show more content…
Meanwhile, the truth was that the reports were misleading and deceitful and the donations were made via corporate funds. But because the company was seemingly doing well and Kozlowski was the CEO of the company, many perceived his actions as ethically standard.

Influence of leadership Kouzes and Posner (2007) asserts that “leadership is not about personality; it’s about behavior” (p.15). Essentially leadership is not about authority, title, position, or pay, but it’s about trust, respect, and stewardship. It could be argued that Kozlowski was trusted for so long due to the reported financial results and his personality. To that extent, Nelson and Quick (2011) emphasized the fact that leadership was based on the real or implied authority. In addition, Kouzes and Posner (2007) stated that “credibility is the foundation of leadership” (p. 27). Further, Rooney (2010) wrote that “leadership is perhaps of the most important influences of ethical culture” (p. 46). This means that the leadership behavior directly effects the behaviors of others in the organization, whether good or bad. Though every organization has a leader,