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tyco international case study summary
tyco case study
tyco international case study summary
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Tyco Corporation Introduction During the course of this paper one will see addressed several issues of responsibilities that the Tyco Corporation must deal with. Some of these issues are ones that they have had to deal with quite recently. The responsibilities that one will see discussed are the legal, social and ethical issues that arise in a company that is nationally known. Legal Tyco provides products and services across the world. The company is global and diversified providing a variety of products including electronics, healthcare, fire and security services and engineered products and services. While employing over 250,000 people worldwide they grossed approximately $40 billion in revenue in the year 2005. In 2002 Tyco was involved with the corporate scandal where the management mis-appropriated corporation funds. The previous CEO Dennis Kozlowski was convicted in 2005 on 22 counts of the 23 that he was charged with. This is an example of not only a legal issue of responsibility but also one of an ethical issue that the Tyco Corporation has had to face. In the face of the legal and ethical issues that this mishap had placed the corporation in, Tyco placed Ed Breen in as chairman and CEO. Mr. Breen joined the company in 2002 after the scandal and immediately began the rebuild of the company’s name. With the appointment of Ed Breen and his changing of the company’s ethical standards (to be discussed in the next portion of the paper) he promotes the legal responsibilities of not only the company’s employees but the responsibilities of the suppliers and buyers to report any wrong doing. This reporting also speaks to the ethics of the Tyco corporation employees as well as those of the companies th... ... middle of paper ... ...al or social responsibility that is owed to a community from a corporation. They have fired the CEO that was responsible for the downfall of the corporation, who is now serving a jail term for his wrong doings, and hired Ed Breen who is diligently working on changing the public’s view of the corporation. Mr. Breen understands that corporation’s worldwide need to make a commitment to do right by the community or suffer the consequences of failing the public and possibly losing business for failing them. Under his direction Tyco is continuing to make strides in regaining the publics trust and growing the company into a nationally recognized socially coconscious name. References http://www.csrwire.com/PressRelease.php?id=7166 http://www.plantservices.com/articles/2006/128.html http://www.tyco.com/TycoWeb/WWW/Documents/pdf/SuppSocRespBrochure_ENGLISH_07.pdf
Hughes Microelectronics is a company that were found to have unethical practices during the 1980’s when handling government contracts. This was brought to light by two whistleblowers that worked for the company at the time. The purpose of this is to review four main questions concerning the situation and how it was handled ethically by the whistleblower. The first and second parts will be fairly similar what were the responsibilities of the company itself, what were the responsibilities of the main whistleblower Margaret Goodearl. Next, the conflict between the two parties will be examined and also whether or not the situation was handled ethically. Lastly the question of whether or not whistleblowing is the most ethical solution
The movie “Glengarry Glen Ross” presented a series of ethical dilemmas that surround a group of salesmen working for a real estate company. The value of business ethics was clearly undermined and ignored in the movie as the salesmen find alternatives to keep their jobs. The movie is very effective in illustrating how unethical business practices can easily exist in the business world. Most of the time, unethical business practices remain strong in the business world because of the culture that exists within companies. In this film, the sudden demands from management forced employees to become irrational and commit unethical business practices. In fear of losing their jobs, employees were pressured to increase sales despite possible ethical ramifications. From the film, it is right to conclude that a business transaction should only be executed after all legal and ethical ramifications have been considered; and also if it will be determined legal and ethical to society.
The board 's actions did not bring the most pleasure to the greatest number of people, and at no time did the company think of any other parties and the consequences of their actions. Tyco’s actions help to endorse the views of economist Milton Friedman, who is an advocate of the narrow view. The narrow view states that corporations only think of profit and care less for the stakeholders within the corporation. Possibly it is a mistake to see a corporation as being morally responsible or to expect it to display such moral characteristics as honesty, considerateness, and sympathy (Shaw, 2014, p. 155). The victims in this case were clearly the employees, shareholders, stakeholders, and the company
Although Hollate introduced a compliance program and code of conduct when it went public, the programs were put on “the back burner”. This outcome is not surprised for that the company does not pay attention to the programs. It is, therefore, important to “reinforce the values” and “employee a boundary system when actions are inconsistent with the code of conduct” for the purpose of early detection. Tyco provides a good example after its scandal, by initiating “mandatory annual compliance training for all its employees worldwide” and creating the Tyco Guide to Ethical Conduct to familiarize employees with company expectations and help them make ethical decisions. As tips is the most useful method for internal and external sources to detect frauds, the whistleblower hotline should be well communicated with encouragement on reporting any suspicious activity. In addition, to improve the effectiveness of the compliance program and code of conducts, Hollate should implement management monitoring and evaluation on a regular
...e corporate responsibility that is demanded of corporations to the community it deems to operate in.
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
There are many questions surrounding the moral responsibility on corporations, but how can a resolution be reached. In the case study for Timothy & Thomas North America, three models of ethical standards will be cited. From the Stakeholders article, decision-making guidelines will need to be understood for Jonathan Stein, the new Vice President (VP) of International Contracts to have a clear vision of
Business is an organisation or economic system where products and services are traded for money, a product or services. Businesses need investment or customers to make a profit and survive. In business, ethical issues may arise for example false advertising, misleading the public, exaggerations and disclaimers. In this case study the ethical issue identified is an exaggeration of how much the company makes and falsifying of documents by signing off on an order that has not yet been finalised. Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are evaluated. “Business ethics, ultimately, is just business in its larger human context” (Solomon, 2009, p.37). Ethical dilemmas such as financial management, corporate social management, corporate governance, shareholder relations, insider trading, and discrimination are examined by business ethics. Ethical dilemmas arise in situations where there is no right or wrong answers, usually a complex moral issue that needs to be resolved, a choice needs to be made between ‘right’ and ‘right’; choosing the best of the worst. It is not normally easy to reach an outcome but the dilemma can be solved in different ways depending on each person’s situation, background, personality, beliefs, life experiences as well as taking factors of law, morals and society norms into account when analysing, processing and making a fully informed morally ethical decision. The process of solving such complex issues involves analysing the issue itself, looking at possible consequ...
Tyco International Ltd was one of the well-renown companies in America for their security systems, fire protection and healthcare. The company was founded in 1960, but it was not until 1964 did Tyco went public to rapidly expand their acquisition. Later in the years, Dennis Kozlowski was employed to the company as an associate controller, which he then moved up to Tyco’s board to become the president and chief operating office. At the same time, the Tyco International decided to change its attention from expansion to revenue. Later on, Kozlowski was appointed as chief executive office (CEO) in 1992; he became a great successor for diversifying the organization into healthcare. In acknowledgement of, Kozlowski hard work he brought Tyco to become the second largest producer of medical devices in North America during 2001, which led them
Tyco International is a large global multinational corporation that manufacturers an extensive variety of products that include electronic components, fire systems, security systems and health care products. Some of their main markets have been in municipal and industrial water treatment, emissions monitoring systems, and hydropower generation. Tyco has reported a net income of 14.50 billion for fiscal year 2004; however, in early 2002 the corporation began to unravel. Questions arose regarding the bookkeeping practices of the company and this lead to a criminal investigation of its former Chief Executive Officer, L. Dennis Kozlowski, Chief Financial Officer, Mark Swartz and chief legal counsel Mark Belnick. They flagrantly stole more than $170 million from the company through loans to themselves without the knowledge of the shareholders and gave themselves many lavish perks. Swartz and Kozlowski convicted on 22 counts of fraud and thef...
The business Tyco was first established in 1960; four years later the company went public and became primarily a manufacturer of products for commercial use. Since then Tyco has grown rapidly with a presence in over 100 countries and over 250,000 employees. During the dates of 1991 to 2001 when Dennis Kozlowski was the CEO of Tyco, the annual sales grew tremendously from $3 billion in annual sales to $36 billion. However, later in 2002 Tyco faced issues with stockholders being extremely cautions after the bankruptcy of Enron, Kozlowski attempted to reassure the public that their accounting was correct. As time passed we learned that Dennis Kozlowski was not being truthful with this statement.
Corporate governances actually illustrate that no entity or agent is immune from fraudulent practices (Arjoon, 2005 p 342-344). Therefore, it is crucial for an organization to have a stable ethically healthy corporate culture, Patagonia is "doing things right" by influencing the actions of the workforce. Through the integration of ethical conduct in an organization, employees see the complexity of making ethical choices; also, it helps the staff understand what an ethical decision entails and how to talk about hard ethical choices and taking responsibility for making moral choices carefully and
Tyco’s goal of governance establishes policy and procedures encouraging employees to practice integrity and accountability dealing...
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.
The Tyco accounting scandal is an ideal illustration of how individuals who hold key positions in an organization are able to manipulate accounting practices and financial reports for personal gain. The few key individuals involved in the Tyco Scandal (CEO Kozlowski and CFO Swartz), used a number of clever and unique tactics in order to accomplish what they did; including spring loading, manipulating their ‘key-employee loan’ program, and multiple ‘hush money’ payouts.