Preview

Tyco

Better Essays
Open Document
Open Document
1757 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tyco
Introduction
This story begins with a brief history of Tyco, followed by an explanation of Tyco CEO L. Dennis Kozlowki’s rise to power. As Kozlowki rose to become the second-highest-paid CEO, some red flags pointed toward the impending disaster. Most notably, Kozlowski’s aggressive approach to business, his lavish lifestyle, his clashes with the former, more conservative CEO, and his ousting of those who criticized Tyco’s activities all acted as indicators of Kozlowki’s unethical behavior. (Tyco International: Leadership in Crisis (2003).
Company History
Tyco was founded in 1960, by Arthur J. Rosenberg, Tyco initially an investment and holding company focused on solid-state science and energy conversion. It developed the first laser with a sustained beam for use in medical procedures, than shifted the focus to the commercial sector. In 1964, Tyco became a publicly traded company and rapidly acquired 16 companies by 1968. The expansion continued until 1982, between 1973 and 1982, the firm grew from $34 million to $500 million in consolidated sales. In 1982 Tyco was organized into three business segments: Fire Protection, Electronics and Packaging. (Tyco International: Leadership in Crisis, 2003). Tyco continued to grow though acquisitions through the 1990’s. The company changed its name to Tyco International, to signal its global presence. By the early 2000’s the company had acquired more than thirty major companies, including ADT, Raychem and CIT group (Tyco International: Leadership in Crisis, 2003).
The Kozlowski Era
The story of the Tyco Corporation is nothing short of the type of drama you would watch on the movie of the week, money, power, lavish lifestyles. L. Dennis Kozlowski, armed with an accounting degree, joined Tyco in 1975, where he spent the next 27 years rising through the ranks as an exceptionally enterprising and effective manager (Dennis Kozlowski. (2013). The Biography Channel website). Kozlowski found a friend and mentor in then CEO



References: 1. Dennis Kozlowski. (2013). The Biography Channel website. Retrieved 01:33, Sep 10, 2013, from http://www.biography.com/people/dennis-kozlowski-234610. 2. Tyco Details Lavish Lives of Executives (2002). The New York Times website. Retrieved 11:10am, Sep 11, 2013, from http://www.nytimes.com/2002/09/18/business/tyco-details-lavish-lives-of-executives.html 3. Tyco International: Leadership in Crisis (2003). Daniels Fund Ethics Initiative University of Mexico Retrieved 11:11am Sep 11, 2013 http://danielsethics.mgt.unm.edu/pdf/Tyco%20Case.pdf 4. Tyco Leadership; (2013) Retrieved 1:51pm Sep 11 2013 http://www.tyco.com/about/leadership

You May Also Find These Documents Helpful

  • Good Essays

    Tyco Case Study Essay

    • 885 Words
    • 4 Pages

    Section 2: Content. In 2002, the situation at Tyco was a huge debacle, in which the then CEO Dennis Kozlowski and his associate, Mark Swartz, robbed the company's funds for…

    • 885 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    I think Alameda Point should be modified because there are many abandoned buildings, and there should be extra room for schools, hospitals, stores, and additional residency. There are about one hundred abandoned buildings on Alameda Pointbecause nobody uses the buildings so they end up collecting rodents and insects, especially termites. Alameda is crowded the way it is and we need the additional space for more guises news buildings, stores, hospitals, and residency. More schools are needed in Alameda because the public schools are overflowing with students,and if there are more schools with less students there will be more one on one help, and the teachers can be more aware of the students social situations. Additional stores are necessary…

    • 222 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    The author offers observations on Dennis Kozlowski, the former chief executive officer of industrial conglomerate Tyco, who is serving up to 24 years in prison. The author argues that if greed alone were grounds for imprisonment, much of Wall Street would be in jail. He questions whether Kozlowski was unfairly demonized as opposed to the corporate leaders who nearly took down the international economy in 2008.…

    • 1217 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Mgmt 5590 Final

    • 3138 Words
    • 13 Pages

    Few business episodes have been the subject of so much debate and despair as the swift descent of once-admired energy trader Enron. The saga of this firm, which rose to prominence as rapidly as it subsequently fell, serves as a kind of morality tale of corporations, regulators, and investors. As we have discussed in class, the tragic effects of Enron’s overreaching arrogance provide a textbook example of both the best and the worst of American business culture and practice. Although the catastrophe’s complete impact may never be completely determined, it seems likely that Enron’s collapse caused more than one major company to cease to exist, several industries experienced radically changed environments, regulators and investors modified their behavior, and all firms are now subjected to greater scrutiny and regulatory oversight. So how did one of the brightest stars of American…

    • 3138 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    There has been a tremendous focus within the media in the past decade about the ethics of leadership within corporations. Corporate scandals and government corruption seems to be all too common these days. Lately, we have heard an abundance of stories in reference to top executives within multi-million dollar companies found guilty of conspiracy, theft and fraud; also known as unethical or pseudo-transformational leadership.…

    • 785 Words
    • 4 Pages
    Good Essays
  • Good Essays

    TYCO Embezzlement

    • 883 Words
    • 4 Pages

    Embezzling funds as a financial fraud which causes an act of conflict of interest. In order to fulfill self-interest (luxurious life) the leaders embezzled the company funds that should be used to manage the company in the best interest of the shareholders and stockholders. Kozlowski had exploited the company by using company funds to fulfill his own desire of have a lavish lifestyle. According to the principle of they must never exploit others to achieve their own objectives. Also, Kozlowski and other directors had their duties to manage the company well. However, they failed to manage the company well because they had misappropriated the funds which embezzling the funds caused them not to fulfill their duties and violated them instead. TYCO also did not emphasize an ethical corporate culture during the empire of Kozlowski. The unethical corporate culture in TYCO was due to the unethical leadership of the CEO of the company, Kozlowski. Another ethical issue under the conflict of interest in the scandal of TYCO is bribery. One instance of bribery was when Frank E. Walsh Jr., the director of TYCO had received $ 20 million for helping the arrangement of the acquisition of CIT group without the knowledge of the rest of the board of directors. The third ethical issue that relates to the conflict of interest is accounting fraud. The auditors, accountants, and the executives of TYCO sacrificed the quality of financial reporting information for their personal interest. TYCO failed to give a true financial picture for several years. Kozlowski, Swartz, and Belnick…

    • 883 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    It is important to note here that the strong, well planned discipline that Tyco utilized as an organization allowed them to optimize their financial resources, even in a bad economy, so much so that they were able to return capital to share holders and authorize a share repurchase program of up to $1 billion. In a time where most companies are going under due to consumer spending and a weak economy made worse by a prolonged recession, Tyco not only made profits but they managed to make…

    • 2142 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The author questions the impact that the Board of Directors had on the dealings by Kozlowski. Several board members were friends of Kozlowski and business was conducted with their knowledge, but not the entire board’s approval. All of the illegal and unethical activity by Kieslowski and friends dropped the Tyco stock dramatically and it continued to drop as evidence against Kozlowski increased.…

    • 1129 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Management Planning - Tyco

    • 1063 Words
    • 5 Pages

    In this paper we will evaluate the planning function of Tyco management and the impact that legal issues, ethics and corporate social responsibility have had on the companies’ management planning. Lastly, this paper will analyze at least three factors that influence the company’s strategic, tactical, operational and contingency planning.…

    • 1063 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Throughout the many business scandals that have occurred over the years, some have had the same violations and some were different; however, all of them have consistently had ethical wrong doings involved in their scandal. In this paper we look specifically at the Tyco Industries scandal which resulted in indictments of the top executives of the company in 2002-2003. There are several ways that this scandal could have been avoided.…

    • 729 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Business Failure Ldr/531

    • 999 Words
    • 4 Pages

    Tyco International Ltd. is a multi- national company which manufactures products and provide services to customers all over the world. Its products are quite diversified and range from residential and commercial security systems, fire suppression systems, electrical components, firefighter and medical diagnostic equipment, water purification systems, and building construction materials. In 2001 it reported revenues of $ 34 million. At the end of September 2002, Tyco revenues climbed to nearly $35 billion but it also had a loss of $9…

    • 999 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Vietnam War Notes

    • 14746 Words
    • 59 Pages

    During the war he established the Viet Minh, or the Revolutionary League for the Independence of Vietnam…

    • 14746 Words
    • 59 Pages
    Powerful Essays
  • Powerful Essays

    Enron Scandal

    • 2940 Words
    • 12 Pages

    Two years after Enron filed for bankruptcy in 2001, Nancy b. Rapoport wrote this essay expressing her unique perspective on the real cause of Enron’s demise. This essay catches the reader’s attention instantly, because unlike abundant other articles written on the biggest corporate scandal in American history, the author here rejects Jeff Skilling’s (former president of Enron) argument1 of what brought about Enron’s downfall. She instead uses another metaphor, arguing that Enron’s downfall was more like Titanic’s- hubris and over reliance on checks and balances that led to its demise rather than a ‘Perfect Storm’ of events. The purpose behind her preference of the metaphor ‘Titanic’ over ‘Perfect storm’ clarifies and warns readers about not being misled into believing that Enron’s downfall was based on factors ‘outside of the company’s control’ rather was caused by a ‘synergetic combination of human errors’. In justifying the Titanic as a more apt analogy to the downfall of Enron, the author offers strong arguments such as how the Enron is in some sense a larger-than-life disaster much like the Titanic. While Titanic’s failure was tied to the unrealistic faith in technology to protect passengers, Enron’s failure was tied to the unrealistic faith that formal and informal checks and balances could always keep the market honest. However, her strongest argument of ‘hubris’ found both in the top executives of Enron as well as the officers of Titanic is not convincing. As much as the greed for money is evident in Enron employees and their arrogant behavior, her equivalent assertion that the Titanic can trace the loss of life directly to human arrogance (pg 209) lacks adequate evidence. Whether her proof of…

    • 2940 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    The central text for this project is the film Enron: The Smartest Guys in the Room by filmmaker Alex Gibney. This film investigates, documents and then exposes the many moves that led to the collapse of Enron. The director focuses on the chief leaders of the corporation as his principal characters in order to develop the story as a human tragedy. Throughout the course of the film, each leading character is revealed. All players were found to be distinct in their strategies and methods. However, all were alike in their attitude and way of thinking. Each one was goal-driven and each found a way, by whatever means possible, to achieve their desired end: making money. Gibney incorporates many strategic moves into this film that contribute…

    • 764 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Tyco Fraud

    • 1126 Words
    • 5 Pages

    During the fiscal years 2006-2009, Tyco Inc. was found to be involved in several illicit payment schemes. The company filed misstated financial statements with the SEC, failed to place and maintain efficient internal controls, paid false commissions and payments through a third party, and violated anti-bribery provisions set by the FCPA. By using Tyco’s international business, illegal acts were easily hidden within the financial statements and the company was able to earn $10.5 million in profits by employees’ commissions and promises with third party contracts.…

    • 1126 Words
    • 5 Pages
    Powerful Essays