The Moral And Ethical Ethics Of Tyco

A. Belnick, Dennis Kozlowski, and Mark Swartz. They were charged with falsifying business records in order to conceal their questionable tactics in regards to getting loans without obtaining anyone’s approval. The earnings per share was affected negatively by the fraudulent record keeping, and the president of the Fire and Security division, Jerry Boggess, was an accomplice and fired as a result . After avoiding a million dollar tax bill for the purchase of artwork worth $14 million, Dennis Kozlowski was indicted for tax evasion by the DA of New York. Richard Scalzo was responsible for auditing the financials of Tyco. He participated in improper conduct because he did not implement the proper measures within his audit duties as it pertains

The SEC found three of Cardillo’s executives, CEO A. Walter Rognlien, COO Esther Lawrence, and Vice President of Finance William Kaye, guilty of violating several federal securities laws. All three executives provided false

In 1983, Jim Sinegal’s idea for a new business was a place where there were no signs identifying isles, no advertising, no way for customers to bag their purchases, and before customers would be allowed to shop, they had to pay an annual fee. That business is Costco and during Jim’s 30 years as founder and Chief Executive Officer (CEO), he grew that business into the fourth largest retailer in the country. Looking back on the legacy Jim left behind when he retired, it is clear that Jim is one of the most visionary and ethical leaders of our modern times. First, we will look at how Jim implemented his vision while demonstrating idealized influence by setting aside his self-interests and gaining the trust of the customer for the good of the company. Then we will explore Costco’s code of ethics that employs Dr. Toner’s principles of owing, ordering, and oughting. Finally, we will explore how Jim’s leadership style has impacted me and influenced my leadership.

When one thinks of the retail giant Home Depot they think of reasonably priced items that will aid them in home improvement projects. In the business world though, the mention of this chain store brings to mind the controversial CEO Robert Nardelli who left an organizational path of destruction upon his departure from the company. Nardelli had an interesting leadership style that bordered on the edge of being considered unethical and was considered by many as not being beneficial for the company overall. By evaluating Robert Nardelli’s leadership style against known leadership theories such as trait, behavioral, situational and contingency theories it is easy to dissect his leadership style and make a final decision as to how ethical he

Enron’s ride is quite a phenomenon: from a regional gas pipeline trader to the largest energy trader in the world, and then back down the hill into bankruptcy and disgrace. As a matter of fact, it took Enron 16 years to go from about $10 billion of assets to $65 billion of assets, and 24 days to go bankruptcy. Enron is also one of the most celebrated business ethics cases in the century. There are so many things that went wrong within the organization, from all personal (prescriptive and psychological approaches), managerial (group norms, reward system, etc.), and organizational (world-class culture) perspectives. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys

1. As the former chief executive officer of WorldCom, Bernie Ebbers was hailed as a great leader during those days when the company was doing extremely well from the Wall Street standpoint. However, when the company was swamped by financial scandals which turned to be one of the largest bankruptcies in the U.S. history, he was discredited for his failure to provide moral leadership with destructive deviant behavior. His behavior exhibited characteristics of hypocritical leader who was high on the communication of an ethics agenda but not perceived as a moral person (Trevino & Brown, 2005).

Collins illustrates a persuasive profile of what it takes to be the leader of not a good but a great organization in the modern day. He also demonstrates the development of successful organizations as a consequence of ethical behavior rather than despite

According to Johnson (2012) leaders are powerful role models, and policies will have a little effect if leaders do not follow the rules they set. In Enron case, corruption and ethical misconduct were deeply embedded in their business culture where profitability was more important than ethics. In this paper, I will address the factors that had led to the development of the culture of profit before principle at Enron. Also, I will create my personal code of ethics that will guide me in my professional and personal decision making and doing the right thing when faced with ethical challenges.

A corporation is an artificial person established by the law. It nurses the same rights as humans contrariwise; they are not equally responsible for their actions. A corporation cannot face the same charges a human would: if illegal actions took place. Bakan illustrates the traits of a corporation to closely resemble the traits of a psychopathic individual human being. These traits are, but not limited to: “1) unconcern for others, 2) incapable of maintaining relationships, 3) disregard for others safety/health, 4) repeated lying, 5) incapable of experiencing guilt, and 6) failure to conform to social norms.” Therefore, executive’s means for earning high returns for shareholders can be seen as a trait of a psychopath. Yet, the corporation’s attributes are not based on the qualities of the executives outside of their careers. As Bakan would say, “the people who run corporations are, for the most part, good people, moral people.”

It is only during moral lapses and corporate scandals that interest groups and the broader public ask themselves the fundamental ethical questions, who are the managers of the organization and were they acting with the ethical guidelines. For a long time, the issue of ethics was largely ignored, with organizations focusing on profit maximization. However, this has changed, and much attention is now focused on ethics management by researchers and leaders. The issue of ethics has arisen at a time when public trust on corporate governance is low, and the legitimacy of leadership is being questioned. Leaders are expected to be the source of moral development and ethical guidance to their employees.

The situation began to unfold when the Securities and Exchange Commission was probing into a restatement of the company's stock price. Kozlowski's business practices raised some eyebrows. In 1999, the Securities and Exchange Commission (SEC) initiated an inquiry into Tyco's practices that resulted in a restatement of the company's earnings. In January, 2002, questionable accounting practices came to light. Tyco had forgiven a $19 million, no-interest loan to Kozlowski in 1998 and had paid the CEO's income taxes on the loan. It was found that he company's stock price had been overrated, and that the CEO and CFO had sold 100 million dollars' worth of shares, and then stated to the public that he was holding them, which was a misrepresentation and misled the investors.

A corporation is an artificial person established by the law. It nurses the same rights as humans contrariwise; they are not equally responsible for their actions. A corporation cannot face the same charges a human would, if illegal actions took place. Bakan illustrates the traits of a corporation to closely resemble the traits of a psychopathic individual human being. These traits are, but not limited to: “1) unconcern for others, 2) incapable of maintaining relationships, 3) disregard for others safety/health, 4) repeated lying, 5) incapable of experiencing guilt, and 6) failure to conform to social norms.” Therefore, executive’s means for earning high returns for shareholders can be seen as a trait of a psychopath. Yet, the corporation’s attributes are not based on the qualities of the executives outside of their careers. As Bakan would say, “the people who run corporations are, for the most part, good people, moral people.”

This research paper will explore the fraud at Tyco and focus primarily on accounting and auditing issues related to the fraud. One thing worth noting about this case is that fraudulent financial reporting was not at the core of the fraud, which was the case with majority other big frauds at the time, such as Enron and Waste Management. On the contrary, fraud consisted of misappropriation of assets, and fraudulent financial reporting came as a consequence of trying to hide misappropriation of assets and the use of corporate money for personal benefit.

The overwhelming facts point to a shady underworld of self-dealing and opportunistic exploitation of the poor and working class, which was until recently, well hidden from the commoner. The executives of WorldCom and Enron provide real world examples of unethical business practices, where the desire to make money for their shareholders transcended into an addiction to greed and self-dealing that were displayed by their, “excessive pay, perks, and golden parachutes”(Carson 392) at the expense of all stakeholders. All is not lost, there are corporations that pride themselves in their sound business model and commitment to ethical business practices. Such companies as Eaton Corporation, and Weyerhaeuser, who according to Ethisphere.com, a business ethics watchdog, are among the “2010 World`s most ethical companies.” (Ethisphere)

In my analysis of Jeff Bezos, founder and CEO of Amazon.com I investigate if his leadership exemplifies the qualities of effective and ethical conscious leadership. I also examine an alternative perspective into the ethics and dynamics of how Jeff interacts with his employees. In order to be an effective leader it is imperative to develop a distinct leadership philosophy statement. Establishing this personal leadership philosophy will serve as a guide and reminder to consistently live out these principles. To improve leadership, it is essential to evaluate other leaders and equally important to reflect on one’s personal leadership and philosophy.