Tyco International Ltd. is a diversified company that provides products and services, operating in more than 60 countries. Tyco aims to be one of the leading companies in electrical and electronic components. Tyco has maintained over 40 acquisitions from 1986. Tyco’s International former chief executive officer, L. Dennis Kozlowski, and former chief financial officer, Mark Swartz were both involved in major unethical and illegal fraud which have pushed the company to suspend them from their jobs, arrest them and charge them with more than $170 million. Both directors were accused of stealing more than $430 million through Tyco’s stocks and enclosing false information to the public What are the ethical and legal issues in this case?
There are a lot of legal and ethical issues in this case. In this case the CEO of the company Kozlowski used company funds to build a secret headquarters for him and other high ranking executives. Also he used funds from the company to buy and furnish luxury apartments for him and his colleagues. These funds could have been used to make the company headquarters better or use them to invest in legal, social and renovation programs to benefit the company. For Kozlowski and Swartz, they were found guilty on 38 felony counts for allegedly stealing $170 million from Tyco and selling an l $430 million in stock options. In addition, Kozlowski was accused of taking $240 million from a program intended to help Tyco employees buy company stock but rather he used them to buy personal property. Swartz was also found guilty in a charge of forging documents of employee loan waiving that he embezzled $14 million from. That ruined many employees’ lives and investments because the heads of the company were unethical. As for other moral mistakes they made was dismissing of Jeanne Terrile, the analyst at Merrill Lynch after the meeting between Kozlowski and CEO of Merrill Lynch, they dismissed her because she wrote a...
Please join StudyMode to read the full document