Tyco: I’m Sure That It’s a Really Nice Shower Curtain
Tyco: I’m Sure That It’s A Really Nice Shower Curtain
Ann Samantha Nelson
Columbia Southern University
Business Ethics
Tyco CEO Dennis Kozlowski worked for the company for 27 years. In the 27 years that Kozlowski worked for Tyco, he along with many other board members and employees looted millions of dollars from the company. In the beginning of his career at Tyco, it seemed that Kozlowski meant well for the company, considering he grew the company from $2 billion, it showed that he wanted to see it be more successful, however at some point, he got greedy. It seemed that Tyco was the type of company that could be easily manipulated, considering it had been stolen from for so many years. Tyco lost $86 billion in market capitalization because of concerns investors had about the company’s strategic focus. (Stanwick& Stanwick, 2009) Considering the Kozlowski was given generous compensations and the company’s money was being mismanaged, there was concern. In less than 6 months in 2002 Tyco’s stock had fallen by $43.95 and investors had every reason to be concerned. (Stanwick & Stanwick. 2009) Kozlowski used his power and manipulated the system by purchasing several homes, expensive artwork, overly lavish items for his homes and extravagant parties. It was hard for me to believe that Kozlowski paid $6000 for a shower curtain. According to Karen Freifeld of Reuters, the shower curtain was custom gold and burgundy and it hung in the bathroom of his maid at his fifth avenue apartment in New York. (Freifeld. 2012) When I think about some of the lavish items he purchased with Tyco’s money, I think of all of the lower level employees who could have benefited from having raises or bonuses with that money. With as much money as he was making legally, he made more than enough to pay taxes on the paintings he purchased, he just did not want to pay them. Kozlowski was not the kind of person who should have been running Tyco. In reading this study
Ann Samantha Nelson
Columbia Southern University
Business Ethics
Tyco CEO Dennis Kozlowski worked for the company for 27 years. In the 27 years that Kozlowski worked for Tyco, he along with many other board members and employees looted millions of dollars from the company. In the beginning of his career at Tyco, it seemed that Kozlowski meant well for the company, considering he grew the company from $2 billion, it showed that he wanted to see it be more successful, however at some point, he got greedy. It seemed that Tyco was the type of company that could be easily manipulated, considering it had been stolen from for so many years. Tyco lost $86 billion in market capitalization because of concerns investors had about the company’s strategic focus. (Stanwick& Stanwick, 2009) Considering the Kozlowski was given generous compensations and the company’s money was being mismanaged, there was concern. In less than 6 months in 2002 Tyco’s stock had fallen by $43.95 and investors had every reason to be concerned. (Stanwick & Stanwick. 2009) Kozlowski used his power and manipulated the system by purchasing several homes, expensive artwork, overly lavish items for his homes and extravagant parties. It was hard for me to believe that Kozlowski paid $6000 for a shower curtain. According to Karen Freifeld of Reuters, the shower curtain was custom gold and burgundy and it hung in the bathroom of his maid at his fifth avenue apartment in New York. (Freifeld. 2012) When I think about some of the lavish items he purchased with Tyco’s money, I think of all of the lower level employees who could have benefited from having raises or bonuses with that money. With as much money as he was making legally, he made more than enough to pay taxes on the paintings he purchased, he just did not want to pay them. Kozlowski was not the kind of person who should have been running Tyco. In reading this study
References: Stanwick & Stanwick, (2009.) Understanding Business Ethics, (1st ed.). PearsonHall Education, Inc. Karen Freifeld (June 13, 2012) Reuters. Kozlowski’s $6,000 shower curtain to find new home. Retrieved August 28, 2012 from http://www.reuters.com/article/2012/06/14/us-tyco-curtain-idUSBRE85D1M620120614I