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Business Ethics TYCO Case Study

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Tyco International : The scandal and unethical behavior

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Business Ethics TYCO Case Study

  1. 1. GROUP 9 MD. MOHIUDDIN JILANI 1129141 NURHIDAYAH BINTI SALLEHUDDIN 1212620 MARDHIAH BINTI MOHD IDRIS 1213546 NOR HAMIZAH BINTI KHALIDI 1215056 NURULHASEENA BINTI KADER MAIDEEN 1221986
  2. 2. INTRODUCTION
  3. 3. Q1.WHAT WAS THE SITUATION BEING FACED BY THE ORGANIZATION THAT REQUIRED THE DECISION?
  4. 4. Q2. IN THE DECISION, DID THE MANAGER OR MANAGERS APPEAR TO USE GOOD DECISION MAKING SKILLS? WAS THE FINAL DECISION MADE BY A GROUP OR INDIVIDUAL? YES General action • Company filed suit against Kozlowski and Swartz for more than $100 million.  The SEC (The U.S. Securities and Exchange) allows companies to sue insiders who Profited by buying and selling company stock  To restore investors faith, new management team recovered some of the funds taken by Kozlowski.
  5. 5. EDWARD BREEN (New CEO) ERIC PILLMORE (Vice President of Corporate Governance) • Review company’s accounting and corporate governance practices New board of director voted to • make future executive severance agreement. • Require the board chair to be an independent person rather than a Tyco CEO. • Tyco Guide to Ethical Conduct • 90% of headquarters staff were replaced. • ConcernLINE
  6. 6. FINAL DECISION MADE BY GROUP
  7. 7. Q3: What are the ethical implications of this decision, and who is likely to be impacted? TOP MANAGEMENT EMPLOYEES SHAREHOLDERS FINANCIAL REPORT USERS & OUTSIDERS
  8. 8. Q4. DO YOU THINK THE SITUATION THAT REQUIRED THE DECISION COULD HAVE YES BEEN AVOIDED? IF SO, HOW? CENTRALIZED VS DECENTRALIZED INTERNAL CONTROL CORPORATE GOVERNANCE
  9. 9. Q5: Would you have made a different decision? If yes, what would it have been and why? If not, why? NO

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