Tyco International Business Ethics Case Study

Tyco International was one of the largest manufacturer and servicer of many sections. Their product ranges from: security solutions, fire protection, undersea telecommunications, specialty valves, and famously known for their disposable medical products. In 2002, Tyco showed issues of unethical practices and other associated matters. Tyco was a large corporation, which made the acquisitions grow immensely. Since 1986, Tyco had declared over 40 major attainments as well as many smaller ones. Tyco’s problem was involved with the top-ranking officers, such as CEO Kozlowski, who were participating in unethical and illegal business practices. Kozlowski was involved in financial transactions that were not reported on the financial statements of

Their product ranges from: security solutions, fire protection, undersea telecommunications, specialty valves, and famously known for their disposable medical products. In 2002, Tyco showed issues of unethical practices and other associated matters. Tyco was a large corporation, which made the acquisitions grow immensely. Since 1986, Tyco had declared over 40 major attainments as well as many smaller ones. Tyco’s problem was involved with the top-ranking officers, such as CEO Kozlowski, who were participating in unethical and illegal business practices. Kozlowski was involved in financial transactions that were not reported on the financial statements of the company. He was also tangled in unethical transactions that were associated with other Tyco officers and employees that helped cover up Kozlowski’s illegal businesses. Not only did the employees of Tyco help cover unethical transactions, but as well as outsiders when Kozlowski’s second wife received money from the firm. When the public had uncovered these disputes, they proved that Kozlowski and other executives had stolen millions of dollars, and their illegal financial activities were widespread. In conclusion, Kozlowski and other officers were imprisoned and Tyco’s investors declined, because of their loss in assurance within the

Although in reality, CEO Dennis Kozlowski, CFO Mark Swartz, and former General Counsel Mark Belnick were suspects of giving themselves very low interest rate loans or no interests loans, (sometimes even reported as bonuses) that were never approved by the Tyco board and has also never been repaid. Some of these so called “loans” were a portion of “Key Employee Loan” program. This program had also been investigated and found that they have been selling stock without reporting it with their investors, which is a requirement with the SEC. Kozlowski, Swartz, and Belnick reportedly stole over $600 million dollars from Tyco through their unapproved bonuses, loans, and company spending. There are also rumors of their extravagant spending such as a $2,000 trash can, $6,000 shower curtain, and a $2 million-dollar birthday party for Kozlowski’s wife in Italy; these are only a few examples of their outrageous abuse of company spending! There were as many as 40 employees who had taken out these “loans,” but were later forgiven which was the Tyco’s loan forgiveness program. Although most pleaded that they did not know they were doing anything wrong. There were also people who had gotten paid to keep quiet about Kozlowski’s unethical