A CEO took power too far that lead to himself behind bars. Dennis Kozlowski, CEO of Tyco International, and Mark Belnick, former general counselor, were both charged with more than 30 accounts of misconduct. Power lead Dennis to an unethical decision when it came to stealing money from his company and because of his actions, he was arrested and charged with millions of dollars’ worth of fines. Abusing power to benefit yourself only leads to consequences.
Company Background
. Johnson Controls is a global multi-industry company and Tyco is a security system company, together they combine the Johnson Controls International. Johnson Controls together with Tyco International brings the best technology, products, services, and installations across …show more content…
Power was more important than the company and that lead to their downfall. In a company, the directors or management do not have ownership to t. The company belongs to itself, so Dennis, the CEO, could in fact be guilty of stealing form the company and he was. As the CEO, Dennis has a fiduciary duty to the members of the company and Dennis decided not to. He as well as other board members were in the act of embezzlement with company funds. There were millions of dollars taken from the company for selfish needs such as decorating apartments for executives as well as employees, unauthorized bonuses, artwork, avoiding imported taxes, and loan forgiveness’s to employees (Case No. 4: Tyco International: Leadership Crisis, n.d). When Dennis chose his board members, he made sure to choose the ones who knew about his way of work, which was stealing money. Other people who most likely deserved the position may have been turned down because of Dennis favoritism. Not only were most Tyco employees in harm, but Tyco’s shareholders had a fall as well because money was being taken, without their acknowledgement. Because of Dennis acts’, investors lost millions of dollars and retirement savings were plummeted due to the decrease in company stock price. Most of Tyco’s employees were shareholders so they saw how their number decreased and Jerry Boggess, president of Tyco Fire and Security Division, was fired and accused for wrongfully keeping track of financial records. There was an accounting fraud, meaning financial records were fixed so that it may seem that everything is to keep Dennis and the others in the clear. In conclusion, too much power leads to a failing
Company Background
. Johnson Controls is a global multi-industry company and Tyco is a security system company, together they combine the Johnson Controls International. Johnson Controls together with Tyco International brings the best technology, products, services, and installations across …show more content…
Power was more important than the company and that lead to their downfall. In a company, the directors or management do not have ownership to t. The company belongs to itself, so Dennis, the CEO, could in fact be guilty of stealing form the company and he was. As the CEO, Dennis has a fiduciary duty to the members of the company and Dennis decided not to. He as well as other board members were in the act of embezzlement with company funds. There were millions of dollars taken from the company for selfish needs such as decorating apartments for executives as well as employees, unauthorized bonuses, artwork, avoiding imported taxes, and loan forgiveness’s to employees (Case No. 4: Tyco International: Leadership Crisis, n.d). When Dennis chose his board members, he made sure to choose the ones who knew about his way of work, which was stealing money. Other people who most likely deserved the position may have been turned down because of Dennis favoritism. Not only were most Tyco employees in harm, but Tyco’s shareholders had a fall as well because money was being taken, without their acknowledgement. Because of Dennis acts’, investors lost millions of dollars and retirement savings were plummeted due to the decrease in company stock price. Most of Tyco’s employees were shareholders so they saw how their number decreased and Jerry Boggess, president of Tyco Fire and Security Division, was fired and accused for wrongfully keeping track of financial records. There was an accounting fraud, meaning financial records were fixed so that it may seem that everything is to keep Dennis and the others in the clear. In conclusion, too much power leads to a failing