Tyco International Ltd. Case Study: The Implications of Unethical Behavior

Abstract

The following analysis of the Tyco International Ltd. (Tyco) case will discuss an historical summary of Tyco, including a backdrop on its former CEO, Dennis Kozlowski and Tyco’s culture at the time. The case will also define the role of ethical leadership’s contribution to the organizational success and the unethical and illegal conduct of Tyco’s leaders including the costs to its internal and external stakeholders, such as gross misappropriation of company funds on personal expenditures and duplicitous stock sales. Additionally, the case study will describe the importance of corporate social responsibility (CSR) to the organization, specifically, how Tyco failed to meet its CSR obligations. It also depicts the consequences to stakeholders with regard to cultural, environmental, and legal implications of CSR failures. Further, an examination is made of the outcome and punishment of events including the fairness of those punishments. Finally, the study will propose recommendations for ethical behavior with regard to corporate actions and organizational sustainability.