Tyco Case Study

You must remember that employees are the guardian of the Company’s ethics. The ethical code is not intended to cover every situation or applicable law and provide answers to all questions that might arise. Employees are encouraged to speak to supervisors, managers or other appropriate personnel if in doubt about the best and moral course of action in a particular situation (Ruby Tuesday, Apr

Prior to the Tyco scandal, the company was one of America's largest conglomerates, with operating revenues of 38 billion dollars and 240,000 employees, worldwide. Tyco Laboratories began operations in 1960, performing experimental work for the U.S. government. The firm went public in 1964 and quickly expanded, mostly by acquisition, to exploit the commercial applications of its work. Dennis Kozlowski joined the company in 1975 as an assistant controller. The company subsequently shifted its focus from growth to profits within its three primary divisions: fire protection, electronics, and packaging. Kozlowski joined Tyco's board in 1987 and became president and chief operating officer two years later. Kozlowski

Ethical issues for dealing with individual employees is difficult because managers on the front line are responsible for various accounts such as hiring and firing disciplining and

No petty thieves, Tyco International Ltd. chief executive Dennis Kozlowski and chief financial officer Mark Swartz took over $170 millions in "loans" from the company without the shareholders knowledge. A Securities and Exchange Commission investigation in 2002 also found the pair had made more than $400 million in stock sales without disclosure.

During Tyco’s reform period they focused on multiple goals and company-wide achievements. Governance, customers, growth, teamwork and culture, operational excellence, and financial strength and flexibility were analyzed, scrutinized, and revamped. Tyco’s new vision: “To be our customers first choice in every market we serve by exceeding commitments, providing

Today’s business world presents numerous ethical issues. In today’s world above board/moral ethics in organizations do not often materialize intuitively. Organization must strive to provide employees with a clear understanding of the overall company vision. This will aid employees in practicing the code of ethics, policies and procedures in the workplace. Companies must be unwavering in continuously delivering the uppermost ethics of provision in which customers, applicants and employees are entitled to under fair business practices. One major core value is to uphold responsible and fair business practices.

By being in a position that is high in ranking, filled with copious amounts of cash, as well as lots of temptations, it does not mean that an individual has to take advantage of his or her newfound power. Our case study this week is a perfect example of identifying how easy it is to abuse power. Tyco is a company who is facing some serious charges after the executives of Tyco were accused as well as convicted of stealing from the company. The executive officers of Tyco are faced with numerous charges because they had an extreme amount of power that they were unable to handle which ultimately led to them abusing their company power by using the companies assets for their own personal benefits. There is a multitude of ways that this type of behavior could have been prevented, or minimized throughout the executive officer positions in Tyco. The company Tyco has a board of directors that is set into place to prevent this type of behavior. The board of directors is supposed to protect the shareholders from inappropriate actions in the company; they are the voice for public. Since the board of directors were blind to this type of behavior the entire Tyco company is now facing consequences for a few of their executives unethical behavior and decisions, which is how the company became to be a decentralized corporate institution.

Tyco International Ltd. was started by Arthur Rosenburg in 1960 and became owned publicly in 1964. Within 1973 to 2001, Tyco International Ltd. Grew swiftly amid the acquisitions of different companies with “annual revenues of more than $500 million and a net worth of nearly $149 million (Tyco, 2004-2009). The New York Stock Exchange depicts Tyco International Ltd. as a “diversified global provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products” (NYSE, 2009).” As a diversified company Tyco International Ltd. Comprise of five sections: ADT Worldwide, Electrical and Metal Products, Fire Protection Services, Flow Control, and Safety Products” (NYSE,

Tyco international is a corporation that was founded in 1960 Arthur J. Rosenberg. It began as an investment and holding company that eventually expanded into Healthcare, Electrical and Electronics, Specialty Products and Fire and Security Services. Tyco became a solid publically traded company under its founder and leader Arthur J Rosenberg. Under his leadership, Tyco not just expanded but grew that between 1973 and 1982 the company went from $34 million to 500 million in consolidated sales. (Ferrell, Fraedrich, Ferrell, 2011).

Cendant Corporation, one of the world’s largest hotel and real estate franchises was known as the largest accounting fraud before Enron. Cendant Corporation was created in 1997 when Hospitality Franchise Systems (HFS), Inc. merged with Comp-U-Card international (CUC). Chairman Walter Forbes and Vice-chairman Kirk Shelton were the perpetrators to a decade long accounting and securities fraud. The day after Cendant exposed evidence of accounting irregularities the corporations stock and convertible bonds lost nearly $14 Billion (Morgenson, 2004). This paper will address the issues that went wrong with Cendant and how the crimes fit into to Friedrichs’ typologies.

This paper is about the lack of moral and ethical leadership of Tyco International’s former highest-paid chief executive officer (CEO) Dennis Kozlowski (Kaplan, 2009). Tyco International is a business leader in Global Fire Safety and Security Solutions. Tyco’s United States headquarters is in Princeton, New Jersey and the Corporate Headquarters in Schaffhausen, Switzerland. According to Kaplan (2009), Dennis Kozlowski reigned over a decade as an ambitious CEO who had earned the nickname “Deal-a-Day” Dennis based on his notorious business decisions including aggressive and speedy acquisitions. Kozlowski was a leader determined to make Tyco the greatest company and succeeded well in transforming it from a $1.5 billion manufacturer into an industrial corporation worth more than $100 billion (Kaplan, 2009).

Executives at the top of Tyco had to redefine the internal structure and develop new internal controls in place. They address the ethical concerns of the employees, the shareholders and the public by first coming up with a new vision that would express who they are now and it states as follows (Tyco International, Ltd, 2008):

The paper is based on the evaluation of unethical behaviour that occurred in Tyco International. This paper will discuss the historical summary of Tyco international, why the spending went on for so long without being detected or stopped, the outcomes of the event and last but not least, justification of the punishments. According to the Tyco’s internal investigation, results indicated that the top management engaged in several unethical behaviours such as awarding them with loans that were interest free plus huge pays, (Stephens, Vance, & Pettegrew, 2012). There is no replacement for ethical leadership when endeavoring to achieve organizational success (Cohen, 2009). It’s clear that Tyco’s management failed to fulfill the standard.

Tyco International, one of the most notorious scandals of this decade. Tyco International is a diversified manufacturer that had a big ambition in the late 1990s: to become the next General Electric. The company provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products. On September 12,2002, Two of Tyco International top executives, CEO L. Dennis Kozlowski and CFO Mark H Swartz were arrested and charged with misappropriating more than $170 million from the company. Another executive and general

Here are some company specific ethical issues. These should be dealt with pretty strictly as to serve an example to the rest.