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TYCO Case Study

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TYCO Case Study
Assessment 6: Case Study 20 - TYCO
Ted O. Padgett
Columbia Southern University

The Case Study 20, Tyco: "I 'm Sure That It 's a Really Nice Shower Curtain" (Stanwick & Stanwick, 2009, pp.389-402), expresses the viewpoint the authors have about the former Tyco CEO Dennis Kozlowski 's lack of demonstrated ethical behaviors. Kozlowski 's actions professed the opinion that he was exempt from the very rules he established. Ethical guidelines for the very company he was tasked with leading. "If a corporation 's mission is to simply maximize profits anyway possible, unethical decisions by managers will surely follow. The CEO must exercise virtuous character traits in order to lead the many stakeholders who are dependent on the corporation for their well being. On all counts, Mr. Kozlowski failed his many constituencies, and the company almost fell into bankruptcy. In his vision for Tyco, the jailed CEO had an ethical blind spot, which was his undoing. He did not realize that ethical behavior—on the part of the CEO–is good business" (Mojonnier, 2006). "The ability to build an organization on an ethical foundation is vital in today 's complex business world. Being the CEO of a major corporation means giving more attention to your organization 's values and principles, especially in light of the changes in the corporate landscape wrought by high-profile scandals" (Hiris, Poncini & Porrini, 2008, p. 19). Dennis Kozlowski developed an ethical guidebook and training educational session for TYCO in an effort to set guiding principles for the rank-and-file employees. As noted by the case study authors, Tyco grew out of a small business into the current "conglomerate with annual sales of $36 billion at the end of fiscal 2001" (Stanwick & Stanwick, 2009, p. 390). Another TYCO researcher and author had similar findings. "During Kozlowski 's decade of leadership, TYCO successfully acquired hundreds of companies; many were small and



References: Heifetz, R., Grashow, A & Linsky, M. (2009). The practice of adaptive leadership: tools and tactics for changing your organization. Cambridge, MA: Harvard Business Press Hiris, L., Poncini, G., & Porini, P. (2008). Above the board: hoe ethical CEOs create honest corporations. New York, NY: McGraw-Hill Investopedia Dictionary. (2014). Comingled fund. Retrieved on May 22, 2014 from http://www.investopedia.com/terms/c/commingledfund.asp Mojonnier, T. (2006). A candidate for the business hall of shame. BusinessTheory.com. Retrieved on May 22, 2014 from http://businesstheory.com/a-candidate-for-the- business-hall-of-shame/ Neal, C.S. (2014). Taking down the lion: the triumphant rise and tragic fall of tyco 's dennis kozlowski. New York, NY: Palgrave MacMillian Stanwick, P. & Stanwick, S. (2009). Understanding business ethics. Upper Saddle River, NJ: Pearson Education. Symonds, W. (2002). Commentary: Tyco: How Did They Miss a Scam So Big? - Tyco: how did they miss a scam so big? Businessweek. (n.d.). Retrieved on May 22, 2014 from http://www.businessweek.com/stories/2002-09-29/commentary-tyco-how-did-they-miss- a-scam-so-big

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