Tyco Case Study
Sherri Calvert
Module 3
Tyco International: Leadership Crisis in Business Ethics. 1. What role did Tyco’s corporate culture play in the scandal? Tyco’s corporate culture would have been led by the CEO, Dennis Kozlowski. Since Kozlowski enjoyed the more extravagant luxuries in life he incorporated that into his leadership of the company. By doing so he set the cultural foundation of the company. The leader of any company has control of the corporate cultural. If a leader values his own income and lifestyle above what is best for all others than that is going to have a negative impact on the company as a whole not just him. Had Kozlowski been more concerned with the positive welfare of the company and its stakeholders he would not be spending the rest of his life in Prison. Being a selfish leader will only have dire consequences that not only impact one’s self negatively but it impacts the entire company as well. 2. How did Dennis Kozlowski have the opportunity to stead $137 million in unauthorized bonuses? Kozlowski had the opportunity to steal the $137 million because he pretty much had control of everything and everyone involved in the company. He was paying people off to help cover up the missing funds. Kozlowski strategically placed the “right” people where he wanted them, and could control their moves. He chose him team carefully and made sure they were people who would stay quiet as long as they were reaping in the rewards as well. He was very well aware of what he was doing but he didn’t see it as being “wrong”. Some place in his mind he would have known it was wrong or else he wouldn’t have tried to cover his tracks. Since he had a lot of control over every aspect of the corporation it enabled him to get away with stealing the money as long as he did. 3. Why is Kozlowski, now a prisoner for a long time, unrepentant about his conduct as CEO of Tyco?
Kozlowski is unrepentant because he feels that what he
Module 3
Tyco International: Leadership Crisis in Business Ethics. 1. What role did Tyco’s corporate culture play in the scandal? Tyco’s corporate culture would have been led by the CEO, Dennis Kozlowski. Since Kozlowski enjoyed the more extravagant luxuries in life he incorporated that into his leadership of the company. By doing so he set the cultural foundation of the company. The leader of any company has control of the corporate cultural. If a leader values his own income and lifestyle above what is best for all others than that is going to have a negative impact on the company as a whole not just him. Had Kozlowski been more concerned with the positive welfare of the company and its stakeholders he would not be spending the rest of his life in Prison. Being a selfish leader will only have dire consequences that not only impact one’s self negatively but it impacts the entire company as well. 2. How did Dennis Kozlowski have the opportunity to stead $137 million in unauthorized bonuses? Kozlowski had the opportunity to steal the $137 million because he pretty much had control of everything and everyone involved in the company. He was paying people off to help cover up the missing funds. Kozlowski strategically placed the “right” people where he wanted them, and could control their moves. He chose him team carefully and made sure they were people who would stay quiet as long as they were reaping in the rewards as well. He was very well aware of what he was doing but he didn’t see it as being “wrong”. Some place in his mind he would have known it was wrong or else he wouldn’t have tried to cover his tracks. Since he had a lot of control over every aspect of the corporation it enabled him to get away with stealing the money as long as he did. 3. Why is Kozlowski, now a prisoner for a long time, unrepentant about his conduct as CEO of Tyco?
Kozlowski is unrepentant because he feels that what he