Tyco International: Leadership Crisis
Tyco International: Leadership Crisis
1.) Being in a high ranking position doesn’t mean one can take advantage of its power. The executive officers of Tyco faced numerous charges because they abused their power over the company and used it for their own benefit. The company’s board of directors should have manage and prevented this kind of situations most specially their role is to protect the firm’s shareholders from inappropriate or unethical situations. As a result, they faced consequences for their unethical behavior which is the decentralization of the corporate structure.
The misconduct of Dennis Kozlowski, the former chairman of Tyco and Mark Swartz, the former CFO lead them 30 counts of corruption, conspiracy, fraud, conspiracy, grand larceny, and falsifying business records. While Mark Belnick , the former general counsel was charged of obscuring $14 million.
2.) The scandal of Tyco happened in the rise of Kozlowski as the new CEO of Tyco. He greatly admires his friend, mentor, and previous CEO of Tyco, Joseph Gaziano. His style also became extravagant and lavish like his mentor. He had also implemented the company jets, extravagant vacations, company cars, and country club memberships. Due to Kozlowski’s aggressive approach to business, it had led to Tyco’s many scandals. Even the board of directors is finding it difficult to monitor the company’s dealings and finances due to the decentralized corporate structure of Kozlowski. Kozlowski had picked his corporate governance team. All the employees he picked know his management style.
The leaders of Tyco had shown characteristics of a psychopath. They focused more on the wealth that they will gain rather than serving the company. Disregarding the feelings of the people, they shot down at those who will accuse Tyco, including Jeanne Terrile at Merrill Lynch and David Tice, the one who questioned Tyco’s use of large reserves. They also have no second thought in eliminating segments of the company that
1.) Being in a high ranking position doesn’t mean one can take advantage of its power. The executive officers of Tyco faced numerous charges because they abused their power over the company and used it for their own benefit. The company’s board of directors should have manage and prevented this kind of situations most specially their role is to protect the firm’s shareholders from inappropriate or unethical situations. As a result, they faced consequences for their unethical behavior which is the decentralization of the corporate structure.
The misconduct of Dennis Kozlowski, the former chairman of Tyco and Mark Swartz, the former CFO lead them 30 counts of corruption, conspiracy, fraud, conspiracy, grand larceny, and falsifying business records. While Mark Belnick , the former general counsel was charged of obscuring $14 million.
2.) The scandal of Tyco happened in the rise of Kozlowski as the new CEO of Tyco. He greatly admires his friend, mentor, and previous CEO of Tyco, Joseph Gaziano. His style also became extravagant and lavish like his mentor. He had also implemented the company jets, extravagant vacations, company cars, and country club memberships. Due to Kozlowski’s aggressive approach to business, it had led to Tyco’s many scandals. Even the board of directors is finding it difficult to monitor the company’s dealings and finances due to the decentralized corporate structure of Kozlowski. Kozlowski had picked his corporate governance team. All the employees he picked know his management style.
The leaders of Tyco had shown characteristics of a psychopath. They focused more on the wealth that they will gain rather than serving the company. Disregarding the feelings of the people, they shot down at those who will accuse Tyco, including Jeanne Terrile at Merrill Lynch and David Tice, the one who questioned Tyco’s use of large reserves. They also have no second thought in eliminating segments of the company that