Tyco's Fall Essay
Case 4.13 Pg 218 – Tyco's Fall
Tyco's stock price began to fall when they reported a 24% decrease in earnings. In evaluating the market observers comment is that it makes you question what is next? When a CEO steps down for tax evasion it make you wonder what else is behind the curtain. When the leader of a huge company like Tyco displays unethical practices in his person life what has he done in his business life. How much trouble is the company really in? This would make investors step away from the company until it became apparent that nothing is wrong with the company.
Even though Mr. Belnick was acquitted of all his charges does not mean that he was acting ethical. Mr. Belnick's actions in receiving …show more content…
What are the consequences?
Do I need to hide this?
How will this affect my company and employees?
I think these warnings were unheeded because they did not want this information to go to the public. They wanted to keep it a secret because if it did hit the papers then the company could take a major downfall.
Mr. Kozlowski made many unethical decision while he was CEO of Tyco. The biggest lines that he crossed were taking the “KELP” loans for personal use and not using them as the company would like for them to be used. By taking the Kelp loans he prospered even more by taking on business adventures that were not related to Tyco. Another line that he crossed was giving the loan forgiveness to top executives. I think you can use these examples f bad credo to help you create yours. These are the things that you do not want to do.
I think Mr. Kozlowski became complacent and was not able to see his conduct. I think once he began making unethical decisions it became easier and easier to make them on a daily basis. I think he was over come with greed and only saw money signs. I think we can can see ethical breeches but once they became of your life then the affect of being “unethical' becomes