Tyco 's Money Hungry Executives Essay

Tyco 's Money Hungry Executives Essay

Length: 1200 words (3.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Tyco’s Money Hungry Executives
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.
The Fall Of Tyco’s Stock Prices
All was well for Tyco throughout the late 90’s and early 2000’s, but that all came to abrupt change when Tyco saw a 20 percent decrease in stock prices during the middle of January of 2002. The decease of Tyco’s price per share initially dropped due to the loss of investor’s confidence after the bankruptcy of Enron. Kozlowski attempted to reassure the stockholders that Tyco’s accounting was correct and not to worry, but the public did not listen, by February the stock price had dropped 50 percent to $29.90 a share. The loss of confidence from the public also knows as “crisis in confidence” lead Tyco to have borrowed funds. This was the initially reasoning behind the fall of Tyco’s stock prices, however in January of 2002 Tyco withheld information regarding a $9.5 billion dollar acquisition on the companies SEC Filings. Once the SEC began to look deeper into this issue the company witnessed a major decrease of 80 percent stock price.
Ethics of Employees
Mark Belnick was ...

... middle of paper ...

...t and most important thing I learned was to look at how my behavior may affect the people around me. If your actions do not benefit the business and your co works then they are probably not ethical. I also learned to only accept what you have earned. My Kozlowski had not earned the money to buy all the fancy things he had bought in this case; he used money that he took away from the business as well as the stockholders.
In conclusion, this case described a company that started out very strong, but as soon as they seen a decline in stock prices they fell apart. When the stock prices fell the CEO, Kozlowski started making poor choices, such as falsifying financial information and stealing from the business. From my observation, companies that give out large bonuses for reached goals find themselves fighting with executives that put their morals aside for money.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

A Brief Background Of Tyco International Essay

- 1. Tyco – A Brief Background Tyco International was founded in 1960 and was regarded as an important electrical and electronic components provider, fire protection system maker and electronic security service provider. It is a diverse producing and serving corporation. Tyco has done business in over 1000 locations in 50 countries and hires 69,000 employees around the world (TYCO, 2012). Tyco International has expanded rapidly and broadly since its IPO in 1973 and has numerous companies among the Fortune 500....   [tags: Dennis Kozlowski, Tyco International, Enron]

Better Essays
2321 words (6.6 pages)

Tyco; Management Planning Essay

- “Planning activities include analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies, and determining the resources needed to achieve the organization’s goals” (Bateman & Snell, 2009, p. 19). The management planning of Tyco International affects the future success of the business. The planning process includes identifying the mission statement and goals of the company. Tyco also analyzes the internal and external influences of legal, ethical, and social responsibilities of the company....   [tags: tyco case study]

Better Essays
1872 words (5.3 pages)

The Management Failure Of Tyco International Essay

- The Management Failure of Tyco International Tyco International was founded by Edward Breen in 1960 (Wikipedia, 2007). According to Wikipedia, (2007), Tyco International’s operational headquarters is located in Princeton, New Jersey, and employs 247,900 employees. Dennis Kozlowski became the CEO in 1992, leading with aggressiveness acquiring several other companies into the organization (Wikipedia, 2007). In 1999, after a stock split, rumors began to spread about Tyco’s accounting habits....   [tags: Business Management Analysis]

Better Essays
1205 words (3.4 pages)

Tyco & the Price of Unethical Behavior Essay

- Unethical Perspectives: Tyco & the Price of Unethical Behavior Prior to what has become known as the Tyco scandal, the company was among one of the largest conglomerates, with a market capitalization of more than $1 billion. The CEO of the company Dennis Kozlowski was thought of as one of the top 25 manager of the year, and had been included on a list of people to watch by Fortune Magazine because of his turn-around of the company’s sprinkler-system division at the beginning of his rise into management....   [tags: financial scandals]

Better Essays
1737 words (5 pages)

Giving to the Hungry Essay

- In early 2001 the people of Queensland suffered from natural disasters that caused loss of life and property. Charitable support for these people of was overwhelming and the loss was sweetened by the generosity of fellow humans helping those in need. Can this generosity extend beyond our borders to help those that are suffering from the (preventable) lack of basic needs such as food. Or should Australians – and in fact all global citizens – only reach out to their own nations, turning a blind eye to those beyond their borders....   [tags: Poverty ]

Better Essays
1589 words (4.5 pages)

Essay Management Planning At Tyco International Incorporated

- Management Planning at Tyco International Incorporated The year 2000 was a year marked by scandal over the accounting practices of some of the biggest corporations in the world, including Tyco International Incorporated. Tyco's top executives were indicted and convicted of fraud charges stemming from both improper accounting practices as well as improper personal use of company funds....   [tags: Business Management Analysis Strategy]

Free Essays
1064 words (3 pages)

Tyco's Turnaround Team Essay

- Tyco’s Turnaround Team According to Gerard and Teurfs transformation methods, listening, having dialogue and community building can be used to transform the different cultures of a global organization, by developing newer, improved cultures. For the transformation to be successful the turnaround teams engaged in collaborative dialogue with participants to emerge the new culture and mutually agree to a newer direction for the company. The staff had to suspend their judgment of others from the past, and attach their thoughts, opinions to their new identity by actively being engaged in forms of comprehensive and therapeutic listening, living their new ethical direction that was set from the ne...   [tags: Business Analysis ]

Better Essays
1354 words (3.9 pages)

A Hungry World Essay

- Most people know that world hunger is a problem- they know it’s a serious one too. Food is a necessity. Without it, we don’t survive. People come up with their own reasons as to why this is a growing problem, and they’re usually not correct. People are easily convinced if they are told that this is a problem simply because not every country’s climate can support the crops that it’s people need to survive. Yes, this is part of the problem, but only a minuscule factor in the big picture. The real problem at hand....   [tags: Economy, Rinehart, hunger]

Better Essays
1197 words (3.4 pages)

Tyco International Management Planning Essay

- Tyco International Management Planning The markets change, costs rise and fall, stocks adjust and all this happens within one day of business, and then there are organizations that have experienced scandals and have never recovered such as, Enron and WorldCom. Then there are organizations like Tyco International Ltd, which has experienced scandal and financial difficulties, bounced back by implementing new policies and procedures to make its operations more ethical and productive all of which has allowed the organizations to conti...   [tags: Business Management Analysis]

Free Essays
1196 words (3.4 pages)

Tyco International Case Study Essay

- 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....   [tags: Corruption, Unethical Practices]

Better Essays
1151 words (3.3 pages)