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Case Study: Tyco International: Leadership Crisis

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Case Study: Tyco International: Leadership Crisis
Case Study: Tyco International: Leadership Crisis

Case Study: Tyco International: Leadership Crisis
Gupta Bhagirath, BUS604
Grand Canyon University

Abstract

Tyco International Ltd. NYSE: TYC is a highly diversified global manufacturing company incorporated in Switzerland, with United States operational headquarters in Princeton, New Jersey (Tyco International (US) Inc.). Tyco International is composed of five major business segments: ADT Worldwide, Fire Protection Services, Safety Products, Flow Control and Electrical and Metal Products. This case study describes the Leadership crisis faced by Tyco International and its rebuilding an empire again.
In 2001, Dennis Kozlowski, chairman and CEO of Tyco International, was identified by Business Week as a manager to watch. In 2002, it turned out that he certainly was the man to watch!!! Tyco International is an American conglomerate, operating in the electronics, healthcare, fire and security systems, underwater cables, commercial finance and flow control industries. (http://www.auburn.edu/~stanwsd/tyco.html).

The aim of this case study is to answer some questions which given in next pages.

1. What are the ethical and legal issues in this case?
There are many legal and ethical issue has been given in this case. The ethical and legal issues at Tyco International range from discrimination, accounting fraud, grand larceny. The issues involved cohesion on the part of the CEO, and the members of his team. In addition, they placed great emphasis on placing their own values ahead of what was good for the organization.
Ethical Issues: Leo Dennis Kozlowski handpicked a few trusted people and placed them in key positions. One of these individuals was Mark Swartz, who was promoted from director of Mergers and Acquisitions to CFO. Kozlowski also recruited Mark Belnick to become Tyco’s general counsel. The majority of the directors had been on the board for ten to twenty years, and they were very familiar


References: http://www.tyco.com/wps/wcm/connect/tyco+home/Home, Retrieved September 9, 2009 http://knowledge.wharton.upenn.edu/article.cfm?articleid=1317&specialid=41, Retrieved September 9, 2009 http://www.businessweek.com/magazine/content/08_07/b4071062403578.htm, Retrieved September 9, 2009 http://www.auburn.edu/~stanwsd/tyco.html, Retrieved September 9, 2009 http://www.auburn.edu/~stanwsd/tyco.html, Retrieved September 9, 2009 http://www.wsws.org/articles/2002/jun2002/tyco-j18.shtml, Retrieved September 9, 2009 http://www.tyco.com/wps/wcm/connect/7ec1ae004d67be70bdc3ff790dc56802/Board+Governance+Principles.pdf?MOD=AJPERES, Retrieved September 9, 2009 978-1-111-08264-2, Business Ethics: Ethical Decision Making and Cases, 2009 Update, 7e, O.C. Ferrell, John Fraedrich, Linda Ferrell - © Cengage Learning Not all references listed in the paper appear here
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