Unethical Behavior and its Cost
Unethical Behavior and its Cost 1
The Fall of Dennis Kozlowski
Many leaders work hard and strive diligently to lead companies to success and wealth in an ethical manner. In doing so, the reputation of the company is enhanced as are the benefits to the shareholders and the public. That notwithstanding, some leaders have been identified with exhibiting poor judgement and gross unethical behavior (Stephens, Vance, Pettegrew, 2012). The underlying reasons for these failures on the part of individual leaders can be traced back to a lack of moral and ethical standards. The downfall of former Tyco International CEO, Dennis Kozlowski, is just one of many examples.
Background
Kozlowski reputedly came from a middle-class background. His parents were public service employees and sent their son to Seton Hall University, a Catholic school. Kozlowski graduated from Seton Hall University in 1968 and gained employment in auditing. Later, in 1975, Kozlowski gained a position with Tyco and had a phenomenal rise in the company. In 1989, his was promoted to President and Chief Operating Officer and three years later, he was promoted to Chief Executive Officer, only 17 years after joining Tyco. Somewhere along the way, the good Catholic education and standards provided by his second-generation Polish-American parents went astray (biography). Undoubtedly Kozlowski excelled in his executive position raising Tyco's mergers and acquisitions to unprecedented levels and to vastly increasing revenues, up 48 % for four years in his last four years with TYCO. At the same time, Kozlowski dramatically increased his own wealth. Living lavishly, even extravagantly, Kozlowski lived an over-the-top lifestyle (Kaplan, 2009). There is no crime or sin in doing well in America, it's a capitalist country, but doing so in an illegal manner is a crime and doing so unethically is a
The Fall of Dennis Kozlowski
Many leaders work hard and strive diligently to lead companies to success and wealth in an ethical manner. In doing so, the reputation of the company is enhanced as are the benefits to the shareholders and the public. That notwithstanding, some leaders have been identified with exhibiting poor judgement and gross unethical behavior (Stephens, Vance, Pettegrew, 2012). The underlying reasons for these failures on the part of individual leaders can be traced back to a lack of moral and ethical standards. The downfall of former Tyco International CEO, Dennis Kozlowski, is just one of many examples.
Background
Kozlowski reputedly came from a middle-class background. His parents were public service employees and sent their son to Seton Hall University, a Catholic school. Kozlowski graduated from Seton Hall University in 1968 and gained employment in auditing. Later, in 1975, Kozlowski gained a position with Tyco and had a phenomenal rise in the company. In 1989, his was promoted to President and Chief Operating Officer and three years later, he was promoted to Chief Executive Officer, only 17 years after joining Tyco. Somewhere along the way, the good Catholic education and standards provided by his second-generation Polish-American parents went astray (biography). Undoubtedly Kozlowski excelled in his executive position raising Tyco's mergers and acquisitions to unprecedented levels and to vastly increasing revenues, up 48 % for four years in his last four years with TYCO. At the same time, Kozlowski dramatically increased his own wealth. Living lavishly, even extravagantly, Kozlowski lived an over-the-top lifestyle (Kaplan, 2009). There is no crime or sin in doing well in America, it's a capitalist country, but doing so in an illegal manner is a crime and doing so unethically is a