Introduction on Tyco International Leadership Crisis -Free Sample

Questions: What role did Tycos corporate culture play in the scandal? How did Dennis Kozlowski have the opportunity to steal $137 million in unauthorized bonuses? Why is Kozlowski, now a prisoner for a long time, unrepentant about his conduct as CEO of Tyco? Answer: Introduction In the paper, the case analysis of Tyco International is to be discussed. It is being identified that the leadership crisis inside the company held responsible for its downfall. The leaders of the company do not realize the value of ethical leadership as far as functions and operations were concerned. The high level of fraud and hiding the actual position to the investors comes out to be the biggest crime. The people behind the scene were brought in the limelight and were sentenced imprisonment for a period of 25 years. The lack of ethical leadership results in high level of mismanagement and chaos. Moreover, it badly spoiled the reputation and credibility of the company (Martin, 2011). Tycos Corporate Culture Tycos corporate culture plays a chief role in the scandal. The person liable for this scam named Dennis Kozlowski, took on the CEO position with the intention to raise the level of personal profits. The decentralized nature of the power and development of his own board are all responsible for creating such issues. In this way, the corporate culture fails to assess his working area and the way he was making his own team conceal his wrong doings (Maxcy, 2002). The corporate culture does not give importance to the ethical leadership concept. In the absence of this concept, Kozlowski drew undue advantage of his position and develop the culture of hypocrisy. Due to this only, he carried upon all the fraudulent practices under the name of the company and whistleblowers were also stricken away from their positions in a planned manner (Goodenough, 2008). Opportunity Dennis Kozlowski has the opportunity to steal $137 million in unauthorized bonuses by making wrong use of the power. In the very initial, his conduct and sincere role towards company do not create any doubt in the mind of the investors. This backs up in getting on the CEO position and to win over the trust of the companys investors. Slowly and gradually, he becomes close to the companys business aspects and aware of the profitable avenues. The wrong use of the power and concealing the facts from the investors led to the stealing of the amount. Along with this, the misappropriation of the funds took place and get affirmed by the team of fraudulent people working under the concerning Board of the Company. Along with this, the auditors does not play their role effectively and honestly. All these together are the reasons behind giving Dennis an opportunity to carry upon such illicit activities (Bellingham, 2003). Unrepentant Kozlowski, now a prisoner for a long time, unrepentant about his conduct as CEO of Tyco. This comes out to be the situation and it really makes one feel bad about the same. His deeds were not at all well and that makes the company highly affected. Its revenues go on lowering down and badly impact trust of the investors. Dennis actual aim was just to raise the personal income and not thinking about the companys downfall. His greatest achievements made him offered stock of the company, and he makes wrong use of it (Sims, 2003). From that time only, his intentions took more bad shape, and he started playing games by forming his own board filled with officials that were also aimed to be a part of this scam. The only reason he is not sorry for his conduct was that he lacks morals and ethics in his behavior. His conscious do not allow him to figure out the difference between what is right and wrong (McMahon, 2004). Ethical Leadership and Corporate Culture The ethical leadership and corporate culture are the main areas that serve to be the cornerstone of the company. Its presence is very much necessary to help the key professionals move in a right direction and support the company to grow and prosper. Corporate culture is helpful to bind the workers with the company and to carry their duties accordingly. In the business world, these two hold great relevance and importance with regards to the accomplishment of the goals and objectives. The presence of these two aspects would surely aim to support the firm enhance and augment in the most positive way. In the business world, these two act as the role models and make the company members carry upon practices in the most decent and honest manner. The conduct of the members needs to be favorable on the part of the company (Leigh, 2013). Research The two companies to research on are Wal-Mart and McDonalds. In Wal-Mart, the global ethics can be very well seen and it is gaining an immense level of popularity. The company is having a worldwide presence and it moves forth with the concept of Global Ethics. According to this, the key features of the program are to act as a pathfinder and resource for ethical decision-making, maintaining privacy within the system of reporting, and works as an ethics education in an incessant manner. The same goes with the company McDonalds, it also gives a great level of importance to the ethical aspects. Ethical leadership together with the corporate culture is considered by making it a constituent of the company. This seems to be of great assistance to permit the workers to perform their duties towards their customers at its best. These two companies direct others to give importance to these concepts in an organizational format (Ethics Integrity, 2016). Conclusion Ethical leadership and the Corporate Culture are to bind with each other, such that the functioning goes on successfully and effortlessly. By doing this, it would automatically raise the image and character of the company in the most positive manner. It is a must from the part of the company members to understand the worth of ethics and morals. This has to be considered in the working procedure just to back up the firm maintain its enduring presence. Along with this, the employees would also serve well to the expectations of the company and making shareholders pleased with the level of performance and functioning. References Bellingham, R. (2003). Ethical Leadership: Rebuilding Trust in Corporations. Human Resource Development. Ethics Integrity. (2016). Retrieved from https://corporate.walmart.com/our-story/ethics-integrity Goodenough, P.L. (2008). Ethical Leadership, Values Congruence, and Work Place Deviance: An Exploratory Study. ProQuest. Leigh, A. (2013). Ethical Leadership: Creating and Sustaining an Ethical Business Culture. Kogan Page Publishers. Martin, R. (2011). Fixing the Game: How Runaway Expectations Broke the Economy, and How to Get Back to Reality. Harvard Business Review Press. Maxcy, S.J. (2002). Ethical School Leadership. Rowman Littlefield. McMahon, T.F. (2004). Ethical Leadership Through Transforming Justice. University Press of America. Sims, R.R. (2003). Ethics and Corporate Social Responsibility: Why Giants Fall. Greenwood Publishing Group.