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Tyco Case

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Submitted By larylara
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1. Tyco’s corporate culture was set in motion with Joseph Gaziano as CEO in the 60th, 70th. Gaziano has a very lavish management style with company jets, extravagant vacations, company cars, and country club memberships. After Gaziano, Fort became CEO, conducting a different management style. Kozlowsky became more powerful and when the board sided with the Fort he became CEO, thus showing their preferences in management style.. When Kozlowsky became CEO he followed the former CEO Gaziano’s lifestyle. He was determined in making the company the greatest company of the century, focusing on maximizing shareholders’ profits. Tyco’s corporate culture played a big role in the scandal, since everything was in the hand of a person, there was no ethical culture and the people who were responsible for protecting Tyco’s shareholder were implied themselves in the scandal. Actually, Kowlowsky chose few trusted individual to cover key positions and the board’s members were all people, who served him for more than 10 years and they were familiar with his management style. The corporate culture was itself corrupted, since, as the investigations revealed, the majority of the board’s members received an huge amount of money to conduct some inappropriate activities. This example shows how without an ethical conduct the company can face huge problems for all shareholders and stakeholders. 2. He had the opportunity to steal them in a crafty way: he made a huge decentralized empire with trusted people in key position. With such a wide empire it was easy for him to hide misconduct. Moreover the power of the society was pretty much all in his hands and board members did not necessarily maintained their responsibilities since some of them were also guilty of stealing money. 3. I believe, that through his previous experience with his mentor Gaziano, Kozlowsky didn’t learn morals and values, which are essentials for people as for companies. According to the study Kozlowski is still claiming to be innocent even after he was found guilty of crimes and sentenced to prison, by saying that jurors sentenced him because they were jealous of his success.…...

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