Dennis Kozlowski: The Implications Of Unethical Behavior

2612 words - 10 pages

Brief Historical Summary
Dennis Kozlowski, is the former Chief Executive Officer (CEO) of Tyco International Ltd. During his tenure, Kozlowski engaged in activities that were considered unethical. In 2005 Kozlowski was convicted of misappropriation of corporate funds. Kozlowski had been involved in illegal and unethical behavior during most of his tenure. The findings that lead to the conviction of the former CEO were due to the persistent questioning and interrogating tactics of the shareholders and stakeholders because Kozlowski held within his authority to make decisions that could change the course of the company. Business ethics, auditing practices, and government regulations will forever be affected by the $500 million loss endured by the company. Needless to say this scandal had an major impact on the economy and the business world.
Kozlowski’s long line of bad decision making is used by businesses as well as academics as an examples of unethical behavior and why internal controls are important to corporate governance. As the primary indicator of performance, corporate governance reports often display the strength and weaknesses of the company but are only as reliable as the set of values and ethics of the person’s implementing the rules.

Unethical behavior/event examined
Was it unethical practices, poor governmental regulations, or bad organizational behavior that lead Kozlowski to make the decisions that lead to the 2005 conviction? Vasile (2004) defined business ethics as “learning what is right and what is wrong and simply doing what is right” (p. 2). However, the actions attached to the decisions are not always as easily derived. In most instances, leaders are faced with making the decision as to what is better for the company versus what is best for the public. Joosten, Dijke, Hiel, and De Cremer (2014) argued “that the constant pressure that organizational leaders face can limit the willpower that is required to act ethically” (p. 1). However, Joosten et al. also point out the possibility that a leader’s ego may also direct the decision to act unethically. To this effect, the conditions by which the decisions to act unethically may stem from the lack of values or the how the framework for the values are designed. This could mean that the leader does not necessarily lack values but instead the values by which the individual stands are not in conjunction with those of the company and possibly society at large.
In the case of Kozlowski, the decisions made were in the best interest of neither the general public nor the stakeholders and investors. The fact the Kozlowski used company funds to make extravagant purchases for personal gratification, only proved that the decisions made were not in line with any definition of ethical behavior. In short, Nelson and Quick contend that “doing the right thing can have a positive effect on an organization…thus, organizations depend on individuals to act ethically” (p. 64).


...

Find Another Essay On Dennis Kozlowski: The Implications of Unethical Behavior

The Unethical Treatment of Animals Essay

1870 words - 7 pages “Man is the highest rated animal, at least among all the animals who returned the questionnaire (Brault, 2009).” For years humans have been using animals for experimentation, food, clothing, sport and entertainment, manual labor, and let us not forget man’s best friend. The unethical treatment of animals can best be resolved by deontology contrasted with ethical egoism. Being human indicates the feeling of pain, pleasure, fear, and love; if

The Unethical Issues of the Tuskegee Study

2100 words - 8 pages " (Wynia, 2003). The doctors wanted the participants to die to have information for their research study. Throughout this study, there were many unethical procedures that were conducted. There was no informed consent in this study whatsoever. Informed consent is when one has full knowledge of a certain situation before accepting the treatment. The doctors never explained what syphilis was to the African Americans, instead they constantly used the

The Unethical and Illegal actions of Enron.

1554 words - 6 pages reports. Thispaper will cover the following: (1) Unethical climate at Enron (2) Definition of Law,its purpose, and the specific illegal activities of the Enron Corporation andassociates. Let us first delve into the meaning of ethics and look at whatexpert in business ethics, Linda Trevino has to say about corporate ethics.In her book, Managing Business Ethics, Linda K. Trevino discussesthe issue of ethics and her definition states, " It is the

Is the Corporate Strategy of Downsizing Unethical?

1396 words - 6 pages sometimes expressed in the statement that those similarly situated should receive similar treatment" (Gilbert 38). Usually when being laid off, the employee has performed well and done nothing to cause being fired, there is no equality between the action of lying off and the behavior of satisfactory performance. If layoffs are used in an already profitable firm no one would see this action as just. When deciding who should be laid off, when being

THE UNETHICAL PRACTICE OF GRADE INFLATION

2234 words - 9 pages grades to students who have not fairly earned them an ethical act? Grade inflation is an unethical practice because it causes students to have an inflated perception of their skills and abilities, it stifles the student's ability to learn from their assignments and master a skill and students who are performing at a high level might feel a loss of motivation knowing high grades are given and not earned.Defining Grade InflationGrade inflation has

The Unethical Abuse of Todays Elderly

2126 words - 9 pages THE UNETHICAL ABUSE OF HUMAN RIGHTS ON THE ELDERLY Waking up in the middle of the night frightened and shaken up is a terrible time that each one of us can remember feeling. Then having someone close to us who we trusted come in, pick us up, and hold us tight produced a sense of security. We were able to take that security, and build a dignified and confident person that grew wiser with age. It seems though that in some instances, as we

The Implications of Rapid Urbanization

1977 words - 8 pages especially the Rapid ones come with implications; both positive and negative. Other countries especially developing and less developed are not well prepared for the growth in population at the cities thus causing a strain on the available resources. Global negative implications are increase in traffic, environmental pollution, overcrowding among public institutions and facilities and increase in the cost of life at the cities (University of Michigan

The Implications of Digital Convergence

566 words - 2 pages Anthony McKeeComputer ApplicationsUnit 6 EssayThe Implications of Digital Convergence Digital convergence is defined as the concept by which all forms of media become digital, in order to supply users with said media via a single method. While the idea sounds complex, it is, in fact, fairly simple and comprises the core of the concept known as "new media". In this essay I will attempt to break down what exactly is meant by the term

The Implications Of Self-expression

1215 words - 5 pages The Implications of Self-expression "The Awakening" by Kate Chopin begins with 28 year old Edna Pontellier summering with her husband and their twin sons on Grand Isle. It is there on the island where she begins to change from an abnegated wife and mother to an independent and self-involved woman. This begins her journey into awareness, which sadly leads to her death. In this Strum und Drang novella, Chopin tells of the solitude

Unethical Pursuit of the American Dream in The Great Gatsby

957 words - 4 pages themselves to a life corrupted by those who pursue that same ideal. The American dream, like the conspiracy between the baseball players and gamblers involved in throwing the 1919 World Series (73), is a conviction held so strongly that those who pursue the American dream become the corruption and deceit in it or, at least, the facilitators of such unethical behavior and immorality. Works Cited Nietzsche, Friedrich Wilhelm. Human All-Too

The implications of the British Revolution

1655 words - 7 pages The Implications of RevolutionsIn this paper I am going to talk about the debate that Britain had from within and the debate they had with the Americans and the French dealing with the revolutions that they were going to be a part of. Obviously these revolutions changed the face of Britain politics and economics forever, and furthermore they changed the way people thought about Great Britain. Britain was no longer seen as the power of the world

Similar Essays

Paper On Business Ethics Of Dennis Kozlowski And Tyco Fraud.

1333 words - 5 pages and a birthday cake in the shape of a woman's breast with sparklers mounted on top. Jimmy Buffet and his group were flown in to perform at a cost of $250,000. The party also had guests wearing togas and tight briefs, gladiators and chariots dancing around the pool. The party in which Kozlowski billed Tyco for half of its expense is an evidence of Kozlowski making personal use of company money. This further proves Dennis Kozlowski's unethical

Tyco & The Price Of Unethical Behavior

2157 words - 9 pages 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

Impact Of Unethical Behavior Essay

688 words - 3 pages how unethical behavior impacts business and how the Sarbanes-Oxley Act has established new or enhanced standards for accounting and reporting practices.One of the most well known examples involving unethical behavior is the Enron Corporation scandal. Enron Corporation was previously known for being one of the world's leading electricity, natural gas and communications companies but will now always be known for accounting fraud and corruption. The

Addressing Unethical Behavior In The Criminal Justice System

1840 words - 7 pages only the training he/she was given in their respective academy’s or in the case of attorneys Law School, and with the Oath of office they had just sworn to, hopefully still in, and the men and women they are placed with to guide them; above all their own sense of ethical behavior and morality. Ethics is a very personal thing; it means many things to many people. There is the mind set of “do unto others as you would have done to you”, the golden