Dennis Kozlowski: The Implications of Unethical Behavior Essay

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. â€Æ' 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 â€Å"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... ...934 USA Today. (2005) Timeline of Tyco International Scandal. Retrieved from http://usatoday30.usatoday.com/money/industries/manufacturing/2005-06-17-tyco- timeline_x.htm Valentine, S., & Fleischman, G. (2008). Professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Journal of Business Ethics, 82(3), 657-666. doi:10.1007/s10551-007-9584-0 Bandsuch, M., Pate, L., & Thies, J. (2008). Rebuilding stakeholder trust in business: An examination of principle-centered leadership and organizational transparency in corporate governance. Business & Society Review. 113(1), 99-127. doi:10.1111/j.1467- 8594.2008.00315.x Caldwell, C., Hayes, L.A., & Long, D.T., (2010). Leadership, trustworthiness, and ethical stewardship. Journal of Business Ethics. 96:497–512. doi: 10.1007/s10551-010-0489-y Dennis Kozlowski: The Implications of Unethical Behavior Essay 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. â€Æ' 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 â€Å"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... ...934 USA Today. (2005) Timeline of Tyco International Scandal. Retrieved from http://usatoday30.usatoday.com/money/industries/manufacturing/2005-06-17-tyco- timeline_x.htm Valentine, S., & Fleischman, G. (2008). Professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Journal of Business Ethics, 82(3), 657-666. doi:10.1007/s10551-007-9584-0 Bandsuch, M., Pate, L., & Thies, J. (2008). Rebuilding stakeholder trust in business: An examination of principle-centered leadership and organizational transparency in corporate governance. Business & Society Review. 113(1), 99-127. doi:10.1111/j.1467- 8594.2008.00315.x Caldwell, C., Hayes, L.A., & Long, D.T., (2010). Leadership, trustworthiness, and ethical stewardship. Journal of Business Ethics. 96:497–512. doi: 10.1007/s10551-010-0489-y