Tyco International: Leadership Crisis

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Tyco International: Leadership Crisis

Case Study #14
Ethical Decision Making
LDR

Case Study Prepared by:

Tyco International: Leadership Crisis

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
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8 Tyco did not really have this blueprint until after the scandal. Now they have a ethics code that everyone must read and be reminded each year. Funny how everyone in the company needs to do this because of a few others that had no ethics. The people that have ethics and morals already know how to act.
The chief executive officer, (CEO) is the corporate executive responsible for the operations of the firm and reports to a board of directors. The chief Financial Officer (CFO) is the corporate executive having financial authority to make appropriations and authorize expenditures for a firm. Could the blame of the scandal be put on Executive Compensation? Executives are compensated with high salaries to lead and ensure that the vision and goals of the company are followed, common vision is to be ethical while building the future of the firm and be profitable. The executive board and senior officers are the responsible people that decide how the company will make the profits. Hopefully, ethically and legally. I think most of the people that go wrong such as the Enron, Tyco and BP lose focus on how to stay profitable. If someone offered you millions to produce, you would do what you could to make it happen. Then after having a taste of the “other” side and what wealth can bring you, it is hard to stop. I know this may be a stretch but could Kozlowski’s family
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