Tyco International Scandal

Recent corporate scandals prove that the lessons of previous scandals have not yet been learned. As Jennings (2012) relates, “management still blames rogue employees, and pundits still blame business schools. Most companies would rather not touch the real cause: pressures that push management to test the boundaries of the permissible” (p. 164). As a result, some executives are inevitably confronted with more temptation to do the wrong thing, and more opportunity to do it, than they can resist.

Can you please help with notes and thoughts in addressing the following about Tyco International?
How did Tyco’s initial problems establish this connection as a very real one for the U.S. markets?
What made Tyco’s stock price fall initially?
How do you think the spending and the loans were able to go on for so long?
What questions could Mr. Kozlowski and Mr. Swartz have asked themselves to better evaluate their conduct?
Formulate a list of the lines Mr. Kozlowski crossed in his tenure as CEO.
Is it difficult for us to see ethical breaches that we ourselves commit?
Your answers should not simply be your opinion. For each response, support your thoughts with scholarly research that you can cite in order to validate your answer. Tyco International scandal

Don't use plagiarized sources. Get Your Custom Essay on
Tyco International Scandal
From $10/Page
Order Essay

How did Tyco’s initial problems establish this connection as a very real one for the U.S. markets?
Two problems took place during the time of the initial problems, which were outlined in the reference below.
1) Two high ranking Tyco executives were involved in the purchase of CIT Group for $9.2 billion – CEO Dennis Kozlowski and Director Frank Walsh.
2) From initial observation, it looked like the executives were just conducting shrewd business. In fact, one executive was cited as one of the top 25 corporate managers of 2001 by the popular US journal Business Week.

What made Tyco’s stock price fall initially?
The split of Tyco into four independent, publicly traded companies, which took place in January of 2002.

How do you think the spending and the loans were able to go on for so long?
Apparently the ethical problems with the actions of these executives were not noted or discovered by the people who selected these corporate managers for praise. This fact suggests that their actions were not out of the ordinary in the eyes of business observers and the press.

What questions could Mr. Kozlowski and Mr. Swartz have asked themselves to better evaluate their conduct?
Koslowski could have asked whether or not the purchase of CIT Group was beneficial to their company, Tyco, or did it only benefit them. It turned out that as a result of this purchase and the subsequent splitting of the company, Tyco’s share value decreased significantly. Kozlowski and Tyco CFO Mark Swartz sold more than $100 million of their Tyco stock the previous fiscal year despite public statements that they rarely sold their stock. Swartz could have asked if his knowledge of their plans for the upcoming year gave them a financial advantage that others did not have in the form of insider information.

Formulate a list of the lines Mr. Kozlowski crossed in his tenure as CEO.
– Kozlowski initiated a purchase with Tyco money of a finance company for 9.2 billion in cash and stock. Both he and Tyco director Frank Walsh personally benefited from this deal.
– A year before initiating this sale, Koslowski and Swartz sold 100 million of their own stock shares, utilizing his insider information to benefit from Tyco’s assets before it lost them in the split of the company.
– Koslowski was indicted in a sales tax evasion case that involved $1 million dollars of state and federal taxes over a purchase of art.
– In 2002, a criminal indictment was brought against Kozlowski and Swartz accusing them of enterprise corruption for allegedly stealing more than $170 million from Tyco and obtaining $430 million by fraud in the sale of company shares.
– Koslowski saw to it that half of a 2 million dollar birthday party for his wife is paid for by Tyco.
– In 2005, Koslowski and Swartz were found guilty of stealing $150 million from Tyco.

Is it difficult for us to see ethical breaches that we ourselves commit?
Yes, often human nature will look at the illegal benefits that are received as payment for hard work, rather than seeing their salary as sufficient compensation.

In the textbook Business in Legal Ethical and Global Environment, Jennings lists many of the excuses that people make for behaving unethically, in the form of statements that are made:

Everybody else does it
If we don’t do it, they’ll get someone else to do it
That’s the way it’s always been done
We’ll wait until the lawyers tell us it’s wrong
It doesn’t really hurt anyone
The system is unfair
I was just following orders

Jennings here stated that the first way to spot an ethical dilemma is by watching the language those involved use. A person could have a strong ethical background personally but when confronted with the complexities of business, that person often needs help in recognizing these kinds of dilemmas. (Jennings, 2000, p 48-49)

The second way to spot them is by category, Jennings listed twelve of them:

Taking things that don’t belong to you
Saying things you know are not true
Giving or allowing false impression
Buying influence or engaging in …

Solution Summary
This is a consideration of the Tyco scandal involving bribery, stock, and business ethics. It further discusses the difficulties involved in determining what is acceptable ethical behavior for head executives of multinational and multimillionare companies.

To continue with the answer check on mycoursewriter.com/

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Course Writer
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
English 101
Customer 452547, March 22nd, 2022
English 101
Thank you guys for always being there and helping me always get a 100% on my assignments!
Customer 452483, August 16th, 2021
Healthcare Writing & Communications
Perfect! Thank you so much for all of your help!
Customer 452483, October 31st, 2021
Introduction to Sociology
Thank you very much for all of your hard work!
Customer 452483, October 15th, 2021
Good job! Thank you.
Customer 452487, October 26th, 2021
Appreciate all of your hard work! Thank you so much!!
Customer 452483, September 14th, 2021
Classic English Literature
Great paper, thank you!
Customer 452591, May 5th, 2022
Healthcare Writing & Communications
Perfect! Thank you for also remembering to highlight the necessary words. Appreciate all of your help and hard work!
Customer 452483, November 7th, 2021
You're awesome! Thank you so much!
Customer 452483, July 27th, 2021
came in earlier than I thought and has all the sources listed and cited in APA format, overall all perfect!
Customer 452461, May 24th, 2021
Good job!! Thank you!!!
Customer 452487, September 9th, 2021
Thank you for your help
Customer 452555, February 16th, 2022
Customer reviews in total
Current satisfaction rate
2 pages
Average paper length
Customers referred by a friend
20% OFF your first order
Use a coupon 20OFF and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat
Open chat
Chat with us Live Here
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.