Tyco Ethical Case Study

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Introduction Whether you consider Dennis Kozlowski a victim or villain, one thing is for sure; his ethical and human values were somewhat lacking. He has been referred to by some as a charismatic and personable guy, to the poster boy of excess, to a ‘corporate psychopath’. He managed to work his way up to CEO of Tyco International and grow the company into a multi-billion dollar organization. His downfall would ultimately arise from greed and a need to be accepted by the social elites. There were numerous ethical issues that revolved around Tyco during Kozlowski’s tenure, including conflicts of interest, embezzlement, bribery, and fraud. Kozlowski was charged with 23 counts from conspiracy to grand larceny, he was convicted of 22 of those …show more content…
“Corporate culture that integrates strong ethical values and positive business practices has been found to increase group creativity and job satisfaction and decrease turnover” (Ferrell 2017). Kozlowski clearly did not establish an ethical corporate culture during his time at Tyco. Personal gain became the corporate culture within the organization. This culture cultivated the assumption of the directors that embezzling funds is an acceptable practice within the company. The stock price suffered from the unethical corporate culture and if the scandal did not occur in 2002, then the company could have gone out of business. However, the new board of directors and management team helped save the organization by touting the new ethical guidelines that were put into …show more content…
“Bribery is the practice of offering something (often money) in order to gain an illicit advantage from someone in authority” (Ferrell 2017). The most important part of bribery isn’t necessarily the bribe itself, but whether or not there was an advantage gained in a relationship. Bribery can be an unlawful act but in some culture’s it can be a standard business practice. The issue relates to the Tyco scandal as a conflict of interest because the directors of the company used their position of trust to gain a personal advantage instead of doing what is best for the stakeholders and shareholders. Bribery is considered an unethical behavior because it is in direct contrast with the Moral Philosophy of Utilitarianism. “Utilitarianism seeks the greatest good for the greatest number of people” (Ferrell 2017). When a bribe is accepted, it benefits a select few and can be a detriment to a large group of

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