BUS 5113 - WRITTEN ASSIGNMENT Unit 7.pdf - Written...

Written Assignment – Unit 7
BUS 5113: Organizational Theory and Behaviour
Business case – Tyco International: Leadership Crisis
University of the People
March 17 th , 2021

Tyco, a long history company with over forty years of presence in the market, in 2002 was
involved in corruption by the CEO, CFO and the Board of Directors. The case raised the question of
corporate governance: under investigation there are also ethical aspects of corporate leadership and
conduct. After the corruption scandal only the introduction of effective ethical programs give to
opportunity to the company to survive.
CEO of Tyco Corporation, Kozlowski, between 1997 and 2002 posted 48.7% in profits in 2002, the
four major segments of the company were split.
Later during that year, corruption and ethics scandals involved the company's top
management including the CEO, CFO and many members of boards of directors. They were
involved in larceny, fraud, falsifying documents and stealing money from the company and selling
stock options from insider information (insider trading).
Approx. an amount of $420 million was lost and it caused immense loss to shareholders and
discussion of various corporate governance and conduct issues.
This case can be considered an abuse of leadership power, unethical behavior, and corruption for
the following reasons: