Tyco: A Top-Down Approach to Ethical Failure

Abstract

In the midst of a time plagued by corporate scandals, Tyco has captured headlines and undoubtedly shocked and appalled many inside and outside the business world. While there is little doubt of Tyco's absence of morality and ethics, blame cannot be simply placed on the organization itself. Within this paper, we explore the concept of top-down corporate ethics, delineate between individual and corporate values, examine the individual values of CEO L. Dennis Kozlowski, as well as analyze the impact that societal influences may have had on his values. Further, we expound the need for ethical reform by means of constructive external influence by society upon top management. Finally, we conclude by stating that such occurrences of ethical failures are not limited to Tyco, nor are they both the consequences of external influences and the need for strong ethical individual values.

Keywords: Tyco, corporate governance, ethics

JEL Classification: A13, D80, G34, M14, M40