Business Strategy For Competitive Advantage

Business Strategy For Competitive Advantage
Pre–requisite Module: Business Strategy for competitive advantage Previous Module: Introduction
to people management (Hill, 2009) state "Molex's competitive advantage is based on a strategy that
blends low costs, excellent customer service, and the mass production of standardized products that
are sold globally". Using a pre–requisite module like business strategy for competitive advantage, it
can be assumed that Molex are using theoretical concepts from porters generic strategies like
focused low cost and differentiation in order to gain an advantage over their competitors as
previously mentioned in the case study. (Sowell, 2006) further illustrates this point stating firms like
Molex "will drive their cost lower through investments in plant efficiencies". Linking this back to
(Hill, 2009) where it goes on to say that "manufacturing sites are located in countries where cost
conditions are favorable". We can therefore see that these countries, which are cost favorable, were
not chosen at random, but instead selected using a focused low cost strategy. This informs
companies like Molex to invest their resources in plant efficiencies, further suggesting that these
'plant efficiencies' means an area where capacity utilization can be met but keeping both fixed and
variable costs low. This favorable country that is not specified in the case study, could be less
developed a country where exchange rate is favorable to the US dollar. Hitt et al. (2006) states a
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Joe Perco's Trial
After taking over $300,000 dollars from various companies, Joe Percoco was found guilty of three
felonies. Which included of two counts of conspiracy to commit honest services wire fraud and one
count of solicitation of bribes of or gratuities. The executives of Cor Development and CPV were
accused of relying on Percoco to take state actions that benefited their own projects. The jury was
able to see proof that Percoco was still using his position in government office even when he was
supposed to be off the payroll. During the trial, prosecutors established motive to all of these bribes
and found that Percoco could have been struggling to pay for his upscale home Also, numerous
other companies put their trust in Percoco and paid him substantial

The Culture Of An Organization
The culture of an organization is like a river. It can be fluid, strong and consistent, serving as
lubricant while guiding its members in the right direction. In contrast a river can become stale and
toxic, silently killing those who drink at its shore.1
–Ron Kaufman
Tyco International was nearly ruined because of the unethical corporate culture Kozlowski was
implementing. According to a study on leadership and organizational culture by T. Gilberson et al.,
the values within the organization can be linked to the personality characteristics of the CEO. It is
upper management that is believed to be the primary influence on the creation and development of
organizational culture.2
Kozlowski put policies in place to misappropriate the funds of the company, these policies directly
violated company culture. The other directors began to follow these policies even thought they knew
it went against company policy. Why? According to social cognitive theory, individuals are
proactively involved in their own development; "What people think, believe, and feel affects how
they behave". 4 If we believe this statement to be true than why were the subordinates at Tyco
influenced by the leaders to engage in unethical corporate culture. We could consider D. Lease's
explanation that control through culture is so powerful that once these values are internalized; they
become part of the individual's values, and the individual follows organizational values without
thinking about them.5 Another

The Traitorous Tyco Scandal: Sentencing of L. Dennis...
The Traitorous Tyco Scandal:
Sentencing of L. Dennis Kozlowski and Mark Swartz Business Law 447–A
Written By:
Lindsey Proffitt
White collar crime is not a victimless crime, and affects many people. These crimes can devastate a
company, force investors to lose billions of dollars, and destroy people's life savings. Through L.
Dennis Kozlowski's and Mark Swartz's scandal reported in 2002, the Tyco Company lost over $28
billion dollars in debt. However, the biggest lash came to its shareholders who lost over $90 billion.
The Tyco two were tried and found guilty in 2005, and are currently serving a 25– year– sentence.
Crime never pays and it is only a matter of time before one is caught. The damage done affects all
people involved ... Show more content on Helpwriting.net ...
The article states that, "Kozlowski expended $2 million dollars on a birthday party for his wife, as
well as a $6,000 shower curtain." (Crawford, P.2). Mr. Kozlowski's also purchased expensive one of
a kind artwork pieces that came from transferred funds out of a "stock loan plan" that was intended
to help executives' pay taxes on stock awards. He also stole from the employee relocation program
designed to help workers afford the adjustment from relocating within the business. Yet, in
Kozlowski's and Swartz's minds, they feel these extravagances were acceptable. They stated that the
company was aware of these expenses, and gave the money to them for their wages. A chairman for
the board stated that "the wording of the stock plan could be interpreted to allow the funds to be
used for other purposes" (Cohen, et al). As a result of this vagueness in policy, Mr. Kozlowski used
the funds like his own personal credit card.
Kozlowski left a huge paper trail leading up to his demise. Either he started to get careless with his
spending and embezzled artwork, or he was too smug to care. Tax fraud charges were the first to
come into light. Shipping documents indicating that one of a kind expensive artwork was sent to
Tyco headquarters in New Hampshire, when no one on the board even knew about or approved this
spending, is what alerted the authorities. Kozlowski had empty crates of the art pieces sent to there
to

Case Study Of Tyco's Case
2008). In September 2002, Kozlowski and Swartz were accused of stealing more than $170 million
dollars from Tyco and swindling $430 million in the sale of company shares. Tyco's former chief
corporate counsel Mark A. Belnick was also found to have forged business records to hide over $14
million dollars that he received in company loans (Timeline of the Tyco International scandal,
2005). The first trial began in October 2003, which was declared a mistrial in April 2004, because a
juror said she received a letter pressurizing her to convict Kozlowski and Swartz. The second trial
began in January 2005 and ended in June 2005, with Kozlowski and Swartz found guilty and in a
separate trial, Belnick was freed of all charges against him (Timeline of the Tyco International
scandal, 2005).
The spending and loans were able to go on for so long because of Kozlowski's unethical leadership
style. However, Kozlowski felt right and content about his doings and continued to do so. He was
shrewd enough to understand the loopholes that existed in the company which he could use to his
advantage and was successful in soliciting several confidants who were willing to be his partners in
crime. He intelligently built the required trust with his leadership team, employees and stakeholders,
hence effective in portraying the needed picture to encompass the success of the company. Tyco had
two complex methods of avoiding tax to enhance its financial performance which Kozlowski and
Swartz used

Tyco International Leadership Crisis Essay
Case Study: Tyco International: Leadership Crisis
Case Study: Tyco International: Leadership Crisis
Gupta Bhagirath, BUS604
Grand Canyon University
Abstract
Tyco International Ltd. NYSE: TYC is a highly diversified global manufacturing company
incorporated in Switzerland, with United States operational headquarters in Princeton, New Jersey
(Tyco International (US) Inc.). Tyco International is composed of five major business segments:
ADT Worldwide, Fire Protection Services, Safety Products, Flow Control and Electrical and Metal
Products. This case study describes the Leadership crisis faced by Tyco International and its
rebuilding an empire again.
In 2001, Dennis Kozlowski, chairman and CEO of Tyco International, was identified by ... Show
more content on Helpwriting.net ...
The Act made securities fraud a criminal offense and stiffened penalties for corporate fraud.
Additionally, it created an accounting oversight board that requires corporation to establish a code of
ethics for financial reporting and to develop greater transparency in financial reports to investors and
other interested parties. Much of what occurred at Tyco took place because the CEO was
allowed/permitted too much power and was not required to be accountable. The Act also requires
top executives to sign off on their firms' financial reports, and they risk fines and long prison
sentences if the misrepresent their companies' financial position. Finally, the Act requires company
executives to disclose stock sales immediately and prohibits companies from giving loans to top
managers.
7. Can the SEC trust Tyco's new board?
Yes.
Tyco International's Board of Directors is responsible for directing, and providing oversight of, the
management of Tyco's business in the best interests of the shareholders and consistent with good
corporate citizenship. In carrying out its responsibilities, the board selects and monitors top
management, provides oversight for financial reporting and legal compliance, determines Tyco's
governance principles and implements its governance policies. The board, together with
management, is responsible for establishing the firm's operating values and code of conduct and for

The Scandal Of The Enron Scandal
Accounting is a necessary and vital part of maintaining any business, it is needed to file taxes, know
how much one has in assets and liabilities, and indicate to investors whether the company would be
a profitable undertaking. However, sometimes the accounting goes horribly wrong when people,
even those who seem to be moral and uncorrubtable, fudge the numbers. By inflating books, they
can get away with billions of dollars in fraud and make nice bonuses for themselves. However, these
acts of greed affect not only the fraudulent person, but their families, coworkers, and other
businesses. There are several ways massive accounting fraud has taken place in companies, from
increasing depreciation, to not reporting debt, to right–out making up numbers to report. These
frauds have been detected in multiple ways as well whistleblowers, internal audits, and even the
fraudulent people themselves. The effect of these scandals have taken a heavy toll on businesses
financially and on people involved emotionally. One scandal that had a lot of family involvement
and heartache was the Bernie Madoff scandal in 2008. Bernie Madoff, along with his accountant
David Friehling and Frank DiPascalli orchestrated the largest Ponzi scheme ever with his investment
securities business. Madoff's company Ascot managed a diverse portfolio of clients, from high–
profile multi–millionaires to hospitals to non–profits. They all suffered losses, and some even lost
all that they had because of investments in

Dennis Kozlowski Business Ethics Paper
Ryan Todd Ethics Paper Dennis Kozlowski was the former CEO of Tyco International. He was born
on November 16, 1946, Agnes and Leo Kelly Kozlowski. Kozlowski's mother worked for the
Newark Police Department while his father worked for the Public Service Transport. Kozlowski
graduated from Seton Hall in 1968, then in 1970, he to a job as an auditor for SCM Corporation
where he stayed until 1975. He then joined Tyco where he remained a manager until 1989, where he
was then named the chief operating officer. Then in 1992, Kozlowski was named the chief executive
officer of Tyco and is partly responsible for Tyco's expansion in the late 1990s as well as successful
mergers and acquisitions that continued to grow until 2002 when Kozlowski resigned ... Show more
content on Helpwriting.net ...
Many auditors were too busy checking to see if they were using their merger–related accounting to
see if they were showing false inflation ratings instead of looking at their internal books and seeing
they were approving loans within the company to executives that were basically using the company
as their own personal bank. Kozlowski went to great lengths to keep outside directors from
becoming aware of how their business dealings were going within the company. It became clear that
he was taking care of the directors within his circle when some were receiving $20 million annually
for their fees and he was creating bonuses that were outrageously high (Symonds). Kozlowski and
Swartz had given themselves approximately $150 million in illegal bonuses including houses that
were paid for by the company and affording luxurious items amongst home décor and even
extravagant parties that were all footed under the companies bill. They were also accused of giving
themselves loans through the company and then forgiving them to avoid payment back to the
company. They were able to do this by keeping the amount of internal audits at a minimum and
overstepping the their legal department and forging their own documents with the SEC. They were
also accused of selling stocks and manipulating the stock price to make the stocks sell at an elevated
price. Kozlowski was initially

The Moral And Ethical Ethics Of Tyco
Introduction
This paper is about the lack of moral and ethical leadership of Tyco International's former highest–
paid chief executive officer (CEO) Dennis Kozlowski (Kaplan, 2009). Tyco International is a
business leader in Global Fire Safety and Security Solutions. Tyco's United States headquarters are
in Princeton, New Jersey and the Corporate Headquarters in Schaffhausen, Switzerland. According
to Kaplan (2009), over a decade, Dennis Kozlowski was a charismatic and ambitious CEO who had
earned the nickname "Deal–a–Day" Dennis because of his notorious business decisions including
aggressive and speedy acquisitions. Dennis was a leader determined to make Tyco the greatest
company and succeeded well in transforming it from a $1.5 billion manufacturer into an industrial
corporation worth more than $100 billion (Kaplan, 2009).
Ethical issues
In June 2002, Kozlowski was accused by the Manhattan district attorney Robert Morgenthau, of
evading $1 million in sales tax on the purchase of rare artwork (Timeline of the Tyco International
scandal, 2005). This investigation opened up a can of worms indicting Kozlowski along with Tyco's
former chief financial officer (CFO) Mark H. Swartz of looting millions of dollars from the
company, misconstruing financial records and doctoring business records (Brickey, 2008). In
September 2002, Kozlowski and Swartz were accused of stealing more than $170 million dollars
from Tyco and swindling $430 million in the sale of company shares.

The Scandal Have Paid For Their Unethical Behavior Essay
Punishment
Those who were responsible for the scandal have paid for their unethical behavior. Kozlowski and
Swartz were accused of giving themselves more than $150 million in illegal bonuses and forgiving
loans to themselves, besides fraudulently selling an additional $430 million in the company's stock
options. Kozlowski and Swartz were convicted on 22 counts of grand larceny, falsifying business
records, securities fraud and conspiracy, sentenced from eight and one–third years to twenty–five
years in prison, and ordered by State Supreme Court Justice Michael Obus to pay a total of $134
million in restitution, in addition of $70 million and $35 million fines respectively (Associated
Press, "Ex–Tyco Executives..."). Belnick, the former general counsel, shelled out $100,000 to settle
charges with the U.S. Securities and Exchange Commission over $14 million in undisclosed loans.
Federal regulators imposed heavy sanctions against Richard Scalzo, a partner at
PricewaterhouseCoopers, over his auditing work at troubled Tyco International Ltd., by permanently
barring him from conducting public company audits (Countryman, "SEC Bans...").
Although the Tyco scandal has been attributed solely to Kozlowski's character flaws, the industrial
conglomerate was also alleged by the Securities and Exchange Commission due to the failed
corporate governance and a weak board, and agreed to pay "a $50 million civil penalty to settle
allegations the high–tech conglomerate's prior management violated

The Causes And Cons Of The Tyco Scandal 2002
Tyco Scandal 2002
➢ Abstract Tyco International, a company started as research lab eventually became a billion dollar
enter–prise through successive financial strategies. In 2002 Tyco came under headlines when it was
accused of fraudulent accounting practices. As it turned out, this whole scandal was true the
company was ripped off of $600 million by the CEO and CFO. Trials conducted penalized the
corrupt and Tyco ended up paying $2.29 billion to its defrauded shareholders.
➢ A brief introduction to scandal:
Tyco International Ltd was founded by Arthur J. Eventually Tyco shifted its focus and entered into
the commercial business sector where it targeted the major businesses or industries which ... Show
They used firm's money for their own personal interests, falsified expense accounts and selling the
stocks without informing the investors. The details are given below.
➢ The main players involved in the scandal:
The main players involved in the Tyco scandal 2002 were:
The former CEO of Tyco Dennis Kozlowski
The former CFO Mark Swartz
The former General Counsel Mark Belnick
The Chairman of Compensation Frank Walsh
Other high rank Tyco's officers and lower level employees
They were accused of reaping $170 million from the company and stealing $430 million more by
selling Tyco stock without the consent of the investors by artificially inflating the value of that
stock.
➢ How were they caught
During the indictment of the CEO and CFO of Tyco, Dennis Kozlowski and Mark Shawrtz, the
district attorney labeled the whole scenario as "top executives' criminal enterprise" which they used
as source of spending firm's money for their own personal

An Enterprise Corruption : Tyco International Ltd
Brian Mowery
Research Paper
April 19, 2015
An Enterprise Corruption
Tyco International Ltd. is a security systems company founded in 1960 by Arthur J. Rosenberg. The
company is incorporated in Switzerland with U.S. headquarters in Princeton, New Jersey. It is
currently composed of two major business segments: Secu–rity Solutions and Fire Protection. For
fiscal year 2001, the company had revenue of $36 billion and roughly 240,000 employees
worldwide. Tyco shares closed at a high of $59.76 on the New York Stock Exchange in December
2001. After the corporate fraud scandal of 2002, the company stood $28 billion in debt and its
shareholders had lost over $90 billion, more than 80% of Tyco's peak market value.
After being founded in 1960, Tyco Laboratories did mostly experimental work for the U.S.
government and had two segments: Tyco Semiconductors and the Materials Research Laboratory. In
1964, the company went public and began expanding (mostly by acquisitions), acquiring 16 other
businesses over four years. Tyco expanded even fur–ther in the 1970's. They became listed on the
New York Stock exchange in 1974 and by 1979 had a net worth of approximately $140 million. In
1975, future CEO Dennis Kozlowski joined Tyco as an assistant controller.
Kozlowski rose through the ranks as an "exceptionally enterprising and effective manager" ,
eventually being promoted to President and Chief Operating Officer (COO) in 1989, CEO in 1992,
and chairman of the board in 1993.

Planning Functions of Management
Planning Functions of Management
"Planning is concerned with the future impact of today 's decisions. It is the fundamental function of
management from which the other four functions stem" (Erven, 1999).
Considering planning is the first of the four functions of management, one can appreciate the
importance and impact it has on the other functions. Production cannot begin and staff cannot be
mobilized unless the planning phase has been completed. Factors however, do exist which affect the
planning phase and if not considered can set the organization on a detrimental course. This paper
will examine to what degree different management planning functions impact the Tyco Corporation
as well as factors that influence the planning phase. ... Show more content on Helpwriting.net ...
While corporate responsibility can be negative if presented in the wrong context, corporate
responsibility can also be a positive influence on the planning phase. If Tyco has been synonymous
for honesty, integrity and responsibility one will find it likely those in charge may have taken a more
productive path. Once respect for corporate responsibility is lost, one will find it difficult to
reestablish it. One additional step to establishing the value of corporate responsibility at Tyco was to
"remove Kozlowski, Swartz, Belnick and other members of its board of directors, and replace them
with outside professionals, Edward Breen, David Fitzpatrick, and William Lytton (Einstein
Industries, 2008). Understandably, corporate responsibility carries with it a level of implied social
responsibility. To promote a management plan that is legal, ethical and corporately responsible, the
organization must consider how society in general will be affected.
Social Responsibility "A former Tyco International Ltd. executive agreed to pay $450,000 to settle
financial reporting and record–keeping charges connected to a fraud case in which Tyco overstated
income by more than $500 million" (Reuters, 2006). Instances such as these have caused Tyco to
rethink their commitment to social responsibility. Considering many stockholders lost money in
Tyco while the stock was in decline,

Tyco
NHBR: 30 years and counting: Tyco scandal and its aftermath By Kenny, Jack Publication: New
Hampshire Business Review Date: Friday, October 10 2008 No petty thieves, Tyco International
Ltd. chief executive Dennis Kozlowski and chief financial officer Mark Swartz took over $170
millions in "loans" from the company without the shareholders knowledge. A Securities and
Exchange Commission investigation in 2002 also found the pair had made more than $400 million
in stock sales without disclosure. All told, losses from fraudulent practices were estimated at $600
million. Kozlowski and Swartz both resigned in the summer of 2002. On June 17, 2005, a
Manhattan jury found both men guilty of stealing more than $150 million from Tyco, a ... Show
Dec. 17, 2002: Former Tyco board member Frank Walsh pleads guilty in an alleged scheme to hide
the $20 million in fees for the CIT Group deal. Oct. 7, 2003: The first trial of Kozlowski and Swartz
begins with opening statements in which prosecutors characterize them as crime bosses who looted
Tyco. Defense lawyers call them honest executives who deserved and disclosed all corporate
payments and perks. Oct. 28, 2003: The jury is shown a video of a birthday party Kozlowski threw
for his wife at a resort in Sardinia. Tyco paid roughly half the $2 million cost of the event, which
featured entertainers clad in togas and an appearance by singer Jimmy Buffett. Nov. 25, 2003:
Prosecutors show the jury a video of the $6,000 shower curtain and other lavish furnishings that
decorated Kozlowski's Tyco–owned apartment in Manhattan. April 2, 2004: A mistrial is declared
after a juror says she received a letter pressuring her to convict Kozlowski and Swartz. Some
observers said the juror, Ruth Jordan, had previously appeared to make an "O.K." sign to defense
lawyers. She subsequently denied making any gesture toward the defense team. July 15, 2004: In a
separate trial, former Tyco corporate counsel Mark Belnick is acquitted of charges that he received
millions in loans from the company and failed to disclose the payments. Jan. 26, 2005: The second
trial of Kozlowski and Swartz begins with opening statements in which prosecutors switch tactics to
focus on

Tyco Scandal Of 2002: Creation Of The Sarbanes-Oxley Act
The Tyco scandal of 2002 was one of the biggest cases of corporate fraud and corruption that helped
lead to the creation of the Sarbanes–Oxley Act. At the center of the scandal is Dennis Kozlowski,
Mark Swartz, and Mark Belnick. Among them and members of associated businesses, multiple
crimes, including accounting fraud, larceny, embezzlement, and bribery, were committed. The U.S.
Securities and Exchange Commission (SEC) released a statement on September 12, 2002 in which it
stated the following:
Kozlowski and Swartz granted themselves hundreds of millions of dollars in secret low interest and
interest–free loans from the company that they used for personal expenses. They later caused Tyco
to forgive tens of millions of dollars they owed the ... Show more content on Helpwriting.net ...
These sections "prohibit any person from soliciting any proxy or consent ... by means of any proxy
statement or other communication containing untrue statement of material fact or omitting to state a
material act" ("SEC Complaint", 2005). Lastly, the fifth claim is for the violation of Section
30A(a)of the Exchange Act ("SEC Complaint", 2005). This section was violated when Tyco
corruptly used interstate commerce to pay foreign officials for the purpose of retaining

Hasbro Case Study
In the aftermath of Tyco's executive scandal in the early 2000's, Ed Breen and Tyco's newly elected
management team were vital elements to the repair of Tyco's corporate social responsibility and
company image. During this time, Tyco International began focusing on the repair of internal
weaknesses and devised several initiatives to improve their image and reform their values. During
Tyco's reform period they focused on multiple goals and company–wide achievements. Governance,
customers, growth, teamwork and culture, operational excellence, and financial strength and
flexibility were analyzed, scrutinized, and revamped. Tyco's new vision: "To be our customers first
choice in every market we serve by exceeding commitments, providing ... Show more content on
Helpwriting.net ...
Tyco facilities throughout the world have earned external environment, health and safety recognition
through rigorous international registration programs such as ISO 14001and OSHAS 18001 and
national standards such as the U.S. Department of Labor's Occupational Safety and Health
Administration Voluntary Protection Program (VPP)." (2010 Annual Review & Corporate
Responsibility Report: Compliance)
We are all stakeholders in Tyco when you take a look at the company's 3 business segments,
Covidien (formerly Tyco Healthcare), Tyco Electronics, and Tyco International.
"Tyco's security solutions protect nearly 7 million homes, 50 of the top U.S. Banks, 300
International Airports, and 80% of the top global retailers. Every day customers in more than 60
countries rely on Tyco's fire protection business to help protect lives and property on land and sea.
Tyco's flow control business is a leading manufacturer and marketer of valves and controls, water &
environmental systems, and thermal control solutions for multiple industries." (Our Businesses:
Security Solutions)
After researching Tyco, our group realized that Tyco's companies and many product lines have
affected some detail in each of our lives. Whether you've ever been in the hospital or flown the
friendly skies; you have experienced an extension of Tyco International. In short, Tyco protects the
world's most vital elements:

Business Failure Ldr/531
Examining a Business Failure – Tyco International Ltd.
LDR/531 Organizational Leadership
March 01, 2010
Examining A Business Failure – Tyco International Ltd.
Organizational behavior is concerned with human behavior in organizations. This essay seeks to
explain how organizational behavior theories could have predicted or explain the failure of Tyco
International Ltd.
The theories that organizational behavior are built on are psychology, social psychology, sociology
and anthropology. According to Robbins and Judge (2009) , psychology seeks to explain changes in
behavior in humans for example, impacts on learning, emotions, leadership, and decision making
principles in an organization. Social psychology examines people's ... Show more content on
Helpwriting.net ...
Mr. Kozlowski was once hailed as a paragon of corporate leadership but that all changed when he
was accused of corporate fraud. His actions caused the scandal because he had violated his fiduciary
duty because he was the agent of the shareholders and had misused their funds sustain his corporate
greed. He was more interested in personal gain than in the best interest of the company and its share
holders. The Chief Financial Officer and the Legal Counsel are also to be blamed for the scandal
because they should have reported the illegal activities and not join in this unethical behavior.
The Auditors also contributed to the scandal as they ignored the warning that were communicated
through the moving of Tyco's headquarters to Bermuda which is a tax haven, excessive bonuses,
ignoring due diligence and the huge salary increases of the CEO.
Explanation of Behaviors
With reference to the theories on organizational behavior, Mr. Kozlowski behavior can best be
explained using social psychology. Here was an individual who was hailed as a paragon of corporate
leadership. He used his behavior to build trust, influence other people and groups and exert power
and control. He was able to use his behaviors to influence the other persons in upper management to
deceive the shareholders. He was able to communicate with the board in such a manner that built
their trust. Using sociology principles, he formed a group and used

Case Study Of Tyco
The third moral issue in Tyco case that identify with irreconcilable circumstance is bookkeeping
misrepresentation. Bookkeeping misrepresentation can be depicted as any demonstration or
endeavor to control the monetary explanation for monetary benefit. It can be one of the legitimate
issues for this situation on the grounds that it comprises of extortion which is unlawful in composed
law. The irreconcilable situation emerges for this situation on the grounds that the reviewers,
bookkeepers, and administrators of Tyco International dissolve trust and their own advantage has
enormously fluctuated with the enthusiasm of shareholders and the partners in Tyco. They tend to
give up the nature of money related reporting data for their own advantage.
For this situation, Tyco International neglected to give genuine monetary picture for quite a while.
Dennis Kozlowski, Mark Swartz and Mark A. Belnick were those Tyco's officials who submitted
extortion by accused of distorting business record ... Show more content on Helpwriting.net ...
Taking into account this hypothesis, we ought to act in a way that creates the best joy to the more
noteworthy number of individuals influenced by our activity. The officials neglected to consider
certain persons who may be influenced by their activities. Since the organization's actual quality is
mysterious, the financial specialists can't assess and examiner the organization's execution which by
implication will bring about wrong choice making. Not just that, assessment avoidance of the
organization will bring about the administration lose the opportunity to contribute the cash for
advancement process. In addition, the organization does not has the chance to utilize those
additional costs that disguised by the administrators in different zones. What's more, top
administration couldn't contrast their organization exhibitions and other organization as their
budgetary explanation does not give genuine

A Fair Trial Summary
The New York grand jury indictments – including the charge against the former general counsel,
Mark Belnick, 55, who was an investigator in the Senates Iran–contra hearings in 1987 – also accuse
Mr. Kozlowski and Mr. Swartz of bribing a Tyco board member and several Tyco employees,
apparently to try to keep their scheme secret. The indictment accuses Mr. Kozlowski and Mr. Swartz
of enterprise corruption, a charge often used in Mafia prosecutions. The authorities accuse Mr.
Kozlowski and Mr. Swartz of stealing $170 million from the company itself and reaping $430
million more by covertly selling Tyco stock while artificially inflating the value of that stock.
Prosecutors, as well as the company, contend that Mr. Kozlowski defrauded Tyco by awarding

Stenton: Out Of The Three Wise Men
Out of the three Wise Men, Stenton is the most dangerous person out of the three who runs the
company in The Circle novel. The first founder of the Circle is Ty, the person who started the whole
company and is always shy to show himself. During Mae's first day at the Circle, she talks about
how the Circle all begins with Ty, "Ty Gospodinov, the Circle's boy–wonder visionary" (Eggers 19).
Ty is the inventor of the company, he is the one going around and creating new inventions for the
company. Even though he was the one who started the company, he is never seen by anyone at the
company's building. Ty is almost like a ghost who hides in the shadows of the dark and never comes
out into the light of day, revealing himself to everyone. Therefore, he is not really dangerous, he has
no intentions of taking over the world by ... Show more content on Helpwriting.net ...
Mae also explains who Bailey is and what his job is at the company when she looks at the painting,
"Of the Three Wise Men, Bailey was the most likely to be seen on campus, to play Dixieland
trombone in the company talent show, most likely to appear on talk shows representing the Circle"
(Eggers 25). Bailey is the one who most likely would never do anything terrible or harm anyone, he
is an outgoing guy who loves what he does at the Circle. The only mission he wants to achieve is to
shine light on everything in the world, he wants to see and know all of what is happening. Mostly
this is to make the world a much safer place, but while he is the friendliest guy in the company and
one of the Three Wise Men. He really does not hold any power in the company, he only acts as the
figurehead who speaks for the company. This means that he is not really a threat to anyone since he
holds little power and only wants to help bring the world to a place where there are no secrets. There
were Three Wise Men and only one shall be the dangerous one and that is the person who controls
the

Essay on Examining a Business Failure
Examining a Business Failure: Tyco International Ltd. ®
LDR 531
August 23, 2010
Examining a Business Failure: Tyco International Ltd. ® Many have heard the proverb, "A chain is
only as strong as its weakest link." This can be directly applied to business organizations through
analysis of the three strongest and/or weakest links: managers, leaders and the organizational
structure. These three areas provide the central core to any organization and are often linked to
dramatic failures and consequences when weaknesses arise. In this paper, the student will discuss
the 2002 failure of Tyco International Ltd. ® (Tyco) in which the Securities and Exchange
Commission (SEC) filed a lawsuit claiming fraud, reporting violations, ... Show more content on
Helpwriting.net ...
While this was only one of many claims held by the SEC, it shows the fraudulent nature of the
accusations. Additionally, the SEC pursued harsh consequences for the crimes as a means to offer
restitution to all investors damaged by the executive's actions (U.S. Securities and Exchange
Commission, 2010).
Managers and Leaders While it is difficult to offer a specific definition of a manager and leader, the
type of control used to manage/persuade employees can offer a clear distinction. A manager often
uses a bureaucratic, authoritative style, and a leader most often relies on charisma and influence to
achieve goals. Neither style is better than the other; however, one may achieve greater results
dependent upon the situation. According to Yuki, within the management atmosphere, many
"decision processes are disorderly and political" (2006, p. 26). In the case with Tyco, many actions
completed by the accounting department were highly political, being based upon information
directly from the CEO. During the legal investigation, the SEC found that no employees (with the
exception of those specifically named in the lawsuit) were found in violation of any law. The SEC
concluded that

Common Brothers Case
among them Common Brothers, Inc. In 1991, Trust Company of the West (TCW) purchased a 48%
ownership interest in CBI from Robert Castello, the company's owner and chief executive. The
purchase agreement gave TCW the right to appoint two members of CBI's board, while Castell
retained the right to appoint three members. TCW also acquired the right to take control of CBI in
the event of the occurrence of a "control triggering event". Examples of such events could be the
failure to maintain certain financial ratios at a specified level and unauthorized loans to Castello and
other CBI's executives. Ernst & Young (E&Y) became CBI's independent auditors in June 1990. In
1992 and 1993, Castello made a fraudulent scheme for the company's reported financial ... Show
For both of those years, E&Y's opinions stated that E&Y conducted its audit in accordance with
Generally Accepted Accounting Standards (GAAS) and that, in the opinion of E&Y, the
consolidated financial statements presented fairly, in all material respects, the financial position of
CBI. During the 1992 and 1993 audits E&Y had discovered numerous disbursements made by CBI
in the first few weeks of the next fiscal year that were unrecorded liabilities. These disbursements
included payments to the company's vendors that had been labeled as "advances" in the company's
accounting records. The explanation that was given by the CBI's personnel was that "when CBI is at
its credit limit with a large vendor, the vendor may hold an order until they receive an advance, CBI
then applies the advance to the existing A/P balance". E&Y auditors readily accepted the
explanation and chose not to record the items as unrecorded liabilities. In fact, the financial
statements prepared by E&Y did not fairly present CBI's financial position because E&Y did not
detect certain unrecorded liabilities when it performed the audits. Although Ernst & Young auditors
had discovered a lot of red flags, suspicious activities and behaviors, unrecorded liabilities they did
not properly investigate those activities, they didn't require CBI to prepare appropriate adjusting
entries for them and as a result, failed to notify CBI's board of directors about the existence of all
these

Dennis Kozlowski's Leadership In Crisis
Tyco international is a corporation that was founded in 1960 Arthur J. Rosenberg. It began as an
investment and holding company that eventually expanded into Healthcare, Electrical and
Electronics, Specialty Products and Fire and Security Services. Tyco became a solid publically
traded company under its founder and leader Arthur J Rosenberg. Under his leadership, Tyco not
just expanded but grew that between 1973 and 1982 the company went from $34 million to 500
million in consolidated sales. (Ferrell, Fraedrich, Ferrell, 2011). The story of a leadership in crisis
reflects on the governance and unethical misconduct of its Chief Executive Officer (CEO) Dennis
Kozlowski. Dennis Kozlowski entered the corporation in 1975 and at the time was under the
leadership of Joseph Gaziano. Dennis was mentored by Gaziano and was quite impressed by the
lavish, opulent and affluent lifestyle. In 1982 Gaziano passed away and John F. Fort III became
CEO. His leadership style was that of one that was quite frugal in his spending. This was a change
within the culture of Tyco as it moved in a new direction and Kozlowski had to adapt to the changes.
Fort Leadership and Management style was to cut back on what he saw as wasteful spending. He
opposed the extravagance of that of his predecessor and directed the company focus more towards
making a profit for investors and shareholders. Kozlowski adapted to the changes made by Fort and
also supported the vision and new direction the

Ethical Dilemmas
Abstract According to the phase 2 individual project assignment instructions, each student is asked
to look at two scenarios and answer the related ethical questions following each one (CTU Online,
2013). Additionally, it is asked that each student provide a discussion on the new GAAP guidelines
for consolidating entities, and to provide an example of a firm that has experienced trouble for
failure to comply with the GAAP guidelines. Ethical Dilemmas in Partnerships Scenario 1: In the
first scenario, there are two partners in an antique business, Mr. Right and Mr. Wrong. Mr. Right
manages the store, and Mr. Wrong travels and purchases ... Show more content on Helpwriting.net
...
GAAP uses to models for consolidation which are variable interest entities (VIE) and voting interest
entities. A concept does not exist for a firm with less than a majority of voting rights. According to
Ernst and Young (2011), another aspect of consolidation is the principle–agent evaluation in control
assessment. This states that in VIEs, consolidation is based on economic considerations, while with
voting interest entities there is no explicit concept. Another aspect is consideration of kick–out rights
and participating rights in control assessment. In this concept "VIEs are substantive if unilaterally
exercisable by a single party" (Ernst & Young, 2011). Voting interest entities are exercisable by a
majority of parties. Consideration of related parties in control assessment states that VIEs have an
aggregated interest of related parties and de facto agents in some cases, while no consideration
exists in voting interest entities. In Investment Company accounting, the investment company
records all of its investments in entities at fair value. Where there is a decrease in ownership
provisions, guidance applies to non–profit activities and businesses (with or without loss of control).
Scope excludes conveyances of oil and gas mineral rights, and sales of in–substance real estate.
Significant events that happen between reporting dates must be included in the financial statements
when different dates are used. The reporting entity and the

Analysis Of Tyco International Ltd.
Tyco International Ltd. is a security systems company incorporated in Ireland, with United States
operational headquarters in Princeton, New Jersey (Tyco International (US) Inc.). Tyco International
is composed of two major business segments, Security Solutions and Fire Protection
Prior to July 1992, their net profit was $95 million, the return on sales was 3.1%, and the stock price
was $4.30. In July 1992, Dennis Kozlowski was appointed CEO of Operations.
Kozlowski knew Tyco from the bottom up, and stated that he was determined to make it the greatest
company of the next century. Because of Kozlowski's success the board rewarded Kozlowski's
performance by increasing his salary to $2.1 million and giving him shares of the company's ...
Show more content on Helpwriting.net ...
Also in 2002, the New York State Bank Department observed large sums of money moving in and
out of Tyco's accounts. What made this finding unusual was that the funds were transferred into
Kozlowski's personal accounts. Kozlowski was caught in the act and was facing jail time and having
to pay over $100 million in restitutions and back taxes.
Learning that he was about to be indicted for tax evasion, Kozlowski resigned as CEO on June 2,
2002. On June 3, he was arrested, but the scandal had barely begun. In September of that year,
Dennis Kozlowski and Mark Swartz, who also had resigned, were indicted on thirty–eight felony
counts for allegedly stealing $170 million from Tyco and fraudulently selling an additional $430
million in stock options. Among other allegations, Kozlowski was accused of taking $242 million
from a program intended to help Tyco employees buy company stock. Kozlowski was found guilty
on twenty–two of twenty–three counts of grand larceny, conspiracy, and falsifying business records,
as well as violating business law. The judge ordered both men to pay $134 million to Tyco.
Kozlowski was also ordered to pay a $70 million fine. Kozlowski 's jail time was about seven years
in a state facility.
This situation was harmful to the company, to the government, and to the integrity of the ex–CEO
and ex–CFO. It damaged the company 's reputation, resulting in a negative impact on its stock price,
performance, and other executives

Tyco
Tyco International | Week 8 Final Project | | | 4/26/2013 |
On September 12, 2002, national television showcased Tyco International's former chief executive
officer (CEO) L. Dennis Kozlowski and former chief financial officer (CFO) Mark H. Swartz in
handcuffs after being arrested and charged with misappropriating more than $170 million from the
company. They were also accused of stealing more than $430 million through fraudulent sales of
Tyco stock and concealing the information from shareholders. The two executives were charged
with more than thirty counts of misconduct, including grand larceny, enterprise corruption, and
falsifying business records. Another executive, former general counsel Mark A. Belnick, was
charged ... Show more content on Helpwriting.net ...
After Fort's departure, Dennis Kozlowski was appointed the new CEO of Tyco International. With a
new lifestyle – parties and multiple homes in Boca Raton, Nantucket, Beaver Creek and New York
City – and an aggressive management style, he appeared to be following in the footsteps of his
mentor, former CEO Joseph Gaziano. In early 2002, Kozlowski announced Tyco's split of its four
divisions into independent, publicly traded companies: Security and Electronics, Healthcare, Fire
Protection and Flow Control, and Financial Services. Soon after, everything began to crumble. The
board of directors learned that Frank Walsh (one of its members) had received a $20 million
commission for his part in securing and aiding the CIT merger, without the knowledge of the rest of
the board. Walsh was fined and later resigned. The board members were troubled by the notion that
Kozlowski had made a major payment without informing them so they launched an investigation
into whether the other board members had earned such commissions. The investigation uncovered
numerous expense abuses. Also in 2002, the New York State Bank Department observed large sums
of moving in and out of Tyco's account. What made this unusual was that the funds were being
transferred into Kozlowski's personal accounts. Authorities discovered that Kozlowski had sought to
avoid around $1 million in New York state import taxes. After purchasing around $14 million in rare
artwork, Kozlowski had the

The Fraud Triangle Consists Of Three Different Parts
In life, there are many times someone sees an opportunity that can better a situation in their life.
Whether morally right or wrong some still take the action to better their life even if it can potentially
be considered fraud. People tend to find ways to look past their morals. These situations can be
something so small as not splitting the tips at your job evenly, fixing an old gambling debt, even
cheating on your taxes. Some even take it as far as creating a fake business to receive money from
people or steal money coming into an already existent company. These opportunities are everywhere
we look. There are not many people in the world who would give up an opportunity to better a
situation in their life. The question is just how far are they willing to go and for what are they
receiving in the end. Most of these situations, if not all can be analyzed through the fraud triangle.
The fraud triangle consists of three different parts. The first part would be the perceived financial
need or the pressure upon the person. This could be caused by the person situation where they may
be in need, or possibly someone in their life pushing them to do the act. It could also be something
as simple as a want that they feel they should go after no matter what it takes or the cost. This will
lead into step two of the fraud triangle which is perceived opportunity or, in other words, the
opportunity to commit the fraud. This is what they do to actually do the crime. How they go about

Creating a Plan for Positive Influence
Tyco International Ltd. was started by Arthur Rosenburg in 1960 and became owned publicly in
1964. Within 1973 to 2001, Tyco International Ltd. Grew swiftly amid the acquisitions of different
companies with "annual revenues of more than $500 million and a net worth of nearly $149 million
(Tyco, 2004–2009). The New York Stock Exchange depicts Tyco International Ltd. as a "diversified
global provider of security products and services, fire protection and detection products and
services, valves and controls, and other industrial products" (NYSE, 2009)." As a diversified
company Tyco International Ltd. Comprise of five sections: ADT Worldwide, Electrical and Metal
Products, Fire Protection Services, Flow Control, and Safety Products" (NYSE, ... Show more
Despite the fact that one can only wonder as to the capability of the ordinary level employees to
decline to adjust the financial statements of Tyco International Ltd., is it likely that only Kozlowski
and Swartz were enmeshed in the unprincipled acts? Are there other employees mixed up in the
misconduct of Tyco International Ltd.? Will the level of violations to which the SEC accused Tyco
International Ltd. entail the participation of various employees? If Tyco International Ltd. had put an
effective OCB program in place to prevent unethical behavior, would such an occurrence have
deterred or discouraged the irrevocable decisions of Kozlowski and Swartz? Or maybe the scandal
that ensued was merely the illustration of one's greediness overwhelming one's moral beliefs?
Conclusion
With the level of unethical conduct and the level of the executives involved, it will be difficult to
ascertain the impact OCB may have had on the alleged persons. Personnel are simply human who
will act up intermittently, but individual actions should not have the power to virtually bring down a
big organization such as Tyco International Ltd. Most companies are now realizing the effect of
OCB on refining the degree of performance and productivity within

Brief Historical Description Of The Tyco Company
Brief historical description of the company or individual involved:
.Tyco Incorporated was established in 1960 by Arthur J. Rosenberg, arranged in Waltham,
Massachusetts. In 1982, to fortify the organization, Tyco were partitioned into three business
portions which are flame insurance, gadgets and bundling. Tyco revamped the organization again in
the 1990s which included electrical and electronic segments, social insurance and strength items,
flame and security administrations, and stream control. By 2000 Tyco Inc., had gained more than
three noteworthy organizations, for example, ADT, the CIT Group, and Raychem.
In 1999, after a stock split, bits of gossip started to spread about Tyco 's bookkeeping propensities. It
was said that Tyco ... Show more content on Helpwriting.net ...
Tyco 's pioneers, especially Kozlowski and Swartz, had little, if any, see for its partners as seen by
the skeptical, extreme, exploitative spending of the partner 's cash on individual interests. As an
immediate aftereffect of this exploitative and illicit behavior, numerous representatives lost their
benefits. That can scarcely been sorted as enhancing the personal satisfaction of workers and their
families.
Kozlowski and other board individuals had cheated and misdirected speculators by keeping stock
costs falsely expanded, not increasing the value of the association for their partners. This type of
radicalism does not constitute moral or sound judgment and choice making by Tyco 's administrators
Two real pay off cases were happened. The primary case is Frank E. Walsh Jr., the executive of Tyco
International had gotten $20 million for helping the course of action of the procurement of CIT
Group without the rest 's information of the leading body of chief. Next, the second case is Stephen
W. Foss, the individual from Tyco 's leading group of executive got $751 101 for supplying a Cessna
Citation flying machine and pilot administrations. Renumeration is a dishonest conduct on the
grounds that it disregarded the Utilitarianism Theory
this organization likewise had manhandled the guideline of rights. Rule of rights is the obligation
based rule. In this guideline, one ought not settle on choices based upon the outcomes but

What Kind Of Ethics Does You Posses As A Person?
What kind of ethics does you posses as a person? You may have wondered this question about your
self but have you ever wondered it about the company you work for? All businesses have a code of
ethics. There are companies with posses good ethics and those who posses bad ethics. As the Mondy
(2012) text states, "companies that "out behave" their competitors ethically will generally
outperform them financially" (p.28). Ethics start with the company's motto, their code and how
upper management protects their statements. Ethics needs to be part of the company's culture.
Companies who back their code of ethics and mottos have positive work culture (Solomon, 1992).
Throughout, this paper we will compare companies culture with the Ethical Flaw text from Mondy
(2012). A motto is a short statement or sentence that guides a company (Palmer, 1999). Google's
motto is "Do no evil" (Code of Conduct). When Google says do no evil it is referring to anything
that causes harm to Google's stakeholders. They take their motto very seriously. Not only does
Google expect their entire workforce and board of directors to follow the code but also any
contractors, consultants or service providers. If an employee fails to follow the motto; disciplinary
actions or termination can follow. If a contractor, consultant or service provider fails to follow the
motto; Google will cut all ties with them (Code of Conduct). By doing this it protects and promotes
Google's culture of do no evil. The "Ethical

Failure at Tyco International, Ltd.
Failure at Tyco International, Ltd.
LDR / 531
January 31, 2011
Clance Doelling
Failure at Tyco International, Ltd. Tyco International Ltd is a diverse manufacturer who grew
tremendously in the 1990's and early 2000's. The company had big ambitions with an aggressive
program of acquisitions during this period where they spent an estimated $62 billion to purchase
more than 1,000 companies. However, unbeknownst to the shareholders of Tyco and the world, Tyco
was led by a management team and CEO (L. Dennis Kozlowski) that did not use wise or truthful
business practices and organizational behavior. In the following paper, I will examine the failure that
occurred at Tyco, compare, and contrast contributions of leadership, management, ... Show more
"Organizational behavior is concerned with the study of what people do in an organization and how
their behavior affects the organization's performance." (Robbins and Timothy, 2007, p. 10). A
healthy organization responds to globalization and increasing market share by understanding its'
foreign assignments, people from different cultures, managing diversity, and foreign implications.
Tyco quickly made acquisitions and developed offshore networks that were managed by executives
that did not enforce an ethical code of behavior. Tyco falsified accounting records in order to meet
U.S. standards and profitability. Tyco set their sights on strategies that would improve growth and
investments, with disregard to any type of business code of ethics or standards. Complications
surfaced that the company was not handling money correctly and top management was to blame.
Either the company did not properly train their management (especially those who handled the
financial aspects of the business) or management was not governing themselves by company
policies and procedures that would make the business successful. It appears Kozlowski and his top
executives were able to persuade many employees to overlook company policies and procedures to
pursue high margins of profitability. This demonstrates that the organizational culture and
management behavior was overlooking their ethical obligations to the shareholder, company, and
employees of Tyco. They were willing to

Tyco International: Management Planning Analysis Essay
Tyco International: Management Planning Analysis Traditionally, along with leading, organizing
and controlling, planning is one of the main functions of management. As a function, planning has
to answer five questions; where does the company want to go, why they want to go there, how they
will arrive at their destination, what is needed to go there and finally, how they will know when they
have reached their goal. In this paper I will explore how Tyco International, Ltd. has used the
planning function to recover from a scandal and to begin again to build a new future. Planning is the
foundation that lays out the goals of a company however; factors such as ethics, technology, legal
issues and social responsibilities that can have direct ... Show more content on Helpwriting.net ...
Executives at the top of Tyco had to redefine the internal structure and develop new internal controls
in place. They address the ethical concerns of the employees, the shareholders and the public by first
coming up with a new vision that would express who they are now and it states as follows (Tyco
International, Ltd, 2008): To be our customers' first choice in every market we serve by exceeding
commitments, providing new technology solutions, leveraging our diverse brands, driving
operational excellence, and committing to the highest standards of business practices–all of which
will drive Tyco's long–term growth, value and success. As reported in an article by
Knowledge@Wharton (2005), Edward Breen, the CEO who replaced S Kozlowski, "He fired 290 of
the company's top 300 executives. Then he turned around and fired the board that had just hired
him. He closed Tyco's posh Manhattan offices and moved to West Windsor, N.J. He ordered
consolidations throughout the company, paid down debt and, lately, has begun to focus on growth
rather than simple survival." By restructuring the company's governance mechanisms, forming a
new board of directors independent of the company and developing a new reporting structure they
have made immense strides toward rebuilding their reputation (Jorgenson 2005). Even the culture
within the company has changed as a result of pressure from the

Tyco Scandal Essay
Part 1– Facts of the Case
Prior to the Tyco scandal, the company was one of America's largest conglomerates, with operating
revenues of 38 billion dollars and 240,000 employees, worldwide. Tyco Laboratories began
operations in 1960, performing experimental work for the U.S. government. The firm went public in
1964 and quickly expanded, mostly by acquisition, to exploit the commercial applications of its
work. Dennis Kozlowski joined the company in 1975 as an assistant controller. The company
subsequently shifted its focus from growth to profits within its three primary divisions: fire
protection, electronics, and packaging. Kozlowski joined Tyco's board in 1987 and became president
and chief operating officer two years later. Kozlowski ... Show more content on Helpwriting.net ...
The remainder of the 250 top managers resigned shortly after.
C. How was the scandal uncovered and by whom?
The situation began to unfold when the Securities and Exchange Commission was probing into a
restatement of the company's stock price. Kozlowski's business practices raised some eyebrows. In
1999, the Securities and Exchange Commission (SEC) initiated an inquiry into Tyco's practices that
resulted in a restatement of the company's earnings. In January, 2002, questionable accounting
practices came to light. Tyco had forgiven a $19 million, no–interest loan to Kozlowski in 1998 and
had paid the CEO's income taxes on the loan. It was found that he company's stock price had been
overrated, and that the CEO and CFO had sold 100 million dollars' worth of shares, and then stated
to the public that he was holding them, which was a misrepresentation and misled the investors.
The major conspiracy was uncovered by Manhattan District Attorney, Robert Morgenthau, who was
investigating Kozlowski for income tax evasion for some fine art work that he had purchased. As
Morgenthau kept digging into the record keeping of Tyco and Kozlowski, it was determined that
there were other situations that had occurred, such as a 10 million dollar loan that was totally
forgiven by Tyco, and all interest was billed to the corporation. It became apparent on January

Tyco International Case Study
Tyco International, a global company that was founded and established in Princeton, New Jersey
during the early 1960's and has expanded since to provide products and services to customers in
over 60 different countries. According to their website, Tyco "brings together best–in–class product,
technology and service capabilities across controls, fire, security, HVAC, power solutions and
energy storage, to serve various end markets including large institutions, commercial buildings,
retail, industrial, small business and residential" (Tyco). Unlike many other companies, Tyco
International made a name for themselves within their first decade of business and even managed to
be enlisted in the New York Stock Exchange. Following these accomplishments, the company
purposely slowed its growth in order to organize itself and be more effective. They recontinued
expansion during 1992, the same year Dennis Kozlowski became CEO of the company. Between the
years 1991 – 2001, Tyco International acquired more than 1,000 companies, many of whom had
respectable reputations.
Throughout all the years that Dennis Kozlowski was CEO, Tyco International recorded revenue in
range of billion dollar amounts. He was highly compensated for his hard work and commitment, but
his desire for more ultimately led to his downfall. During the Fall of 2002, Dennis Kozlowski and
his Financial Adviser, Mark H. Swartz, were indicted for a $600 million fraud scheme. According to
The New York Times, both men "created

Management Structures
WayerskiLMGT7019–8–3
|
.
–––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
–––––––––––––––––––––––––––––––––––––––––––––––––
August 17th, 2013 3
The year was 2002 and Tyco International LTD chairman of the board and also serving as the Chief
Executive Officer, Dennis Kozlowski announced his resignation due to soon to be accused of 30
counts of fraud to the amount of $150 ... Show more content on Helpwriting.net ...
I think Kozlowski was very clever on how he represented himself and would only tell the board
what they needed to know, making the board believing that without him the company would fail.
Complacency and ignorance come to mind; I think it took someone from the outside to really bring
it to attention and events such as the birthday party in Sardinia and countless authentic art pieces
that were being shipped to the headquarters for personal usage.
WayerskiLMGT7019–8–3 5 The party in Sardinia was a birthday celebration for Kozlowski's wife.
The event was $2 million dollars and Kozlowski wrote off $1 million as a stockholders event and
even sent out a company memo to justify the expenditure (Wilson 2008). I feel that is an act of
creative accounting; why would a CEO, Kozlowski pay for a company event that wasn't non–
charitable out of his own pocket? He knew what he could absorb without being questioned. I also
think with the loans that it became to accessible and it became an order of business. It was done so
often and the company had so much revenue that Kozlowski thought he could just absorb it through
company records. The complaint against Kozlowski from Tyco all its legal language came across to
me that he was trying to find ways not to pay taxes on personal items from job relocation to
purchasing art (www.FINDLAW.com 2012).

Tyco Case Study
Critique the Moral Aspects of Leadership
Introduction
This paper is about the lack of moral and ethical leadership of Tyco International's former highest–
paid chief executive officer (CEO) Dennis Kozlowski (Kaplan, 2009). Tyco International is a
business leader in Global Fire Safety and Security Solutions. Tyco's United States headquarters is in
Princeton, New Jersey and the Corporate Headquarters in Schaffhausen, Switzerland. According to
Kaplan (2009), Dennis Kozlowski reigned over a decade as an ambitious CEO who had earned the
nickname "Deal–a–Day" Dennis based on his notorious business decisions including aggressive and
speedy acquisitions. Kozlowski was a leader determined to make Tyco the greatest company and
succeeded well in transforming it from a $1.5 billion manufacturer into an industrial corporation
worth more than $100 billion (Kaplan, 2009).
Ethical issues
In June 2002, Kozlowski was accused by the Manhattan district attorney Robert Morgenthau, of
evading $1 million in sales tax on the purchase of rare artwork (Timeline of the Tyco International
scandal, 2005). This investigation opened a can of worms indicting Kozlowski and Tyco's former
chief financial officer (CFO) Mark H. Swartz of looting millions of dollars from the company,
misconstruing financial records and doctoring business records (Brickey, 2008). In September 2002,
Kozlowski and Swartz were accused of stealing more than $170 million dollars from Tyco and
swindling $430 million in the sale

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