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Tyco and Corporate Malfeasance

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Faced with the task of rebuilding investor and public confidence in Tyco, newly-appointed Edward Breen has invited an outside group to advise him as he takes steps to restore the company's viability and reputation. Called to assist your consulting firm in this project, you have been asked to study the Tyco situation and prepare a report with the following content:

1. Kozlowski certainly misused his authority in distributing bonuses, extending loans, and misreporting material items. How do you account for this behavior?

2. Tyco's Board of Directors and senior executives had legal obligations to fulfill. How do you account for the board's failure to carry out its fiduciary duties? Why did they disregard corporate and federal reporting rules?

3. As Tyco's new CEO, Breen has to regain trust from shareholders, employees and the firm's other stakeholders. What actions should he take immediately? Within the next year? Over the long term? What resources does he have at his disposal to enhance the reputation of the firm and turn it round?

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Kozlowski certainly misused his authority in distributing bonuses, extending loans, and misreporting material items. How do you account for this behavior?

This behavior can be considered extremely unethical as well as illegal. Kozlowski's actions can said to be arising out his greed. Kozlowski engaged in such unethical and illegal practices along with other senior executives to manipulate funds for personal benefits and to support his extravagant lifestyle at the expense of shareholder's money.

2. Tyco's Board of Directors and senior executives had legal obligations to fulfill. How do you account for the board's failure to carry out its fiduciary duties? Why did they disregard corporate and federal reporting rules?

They disregarded corporate and federal reporting rules for their personal benefits and greed. The manipulation and fraud as well as non-adherence to reporting rules and guidelines were done in order to make huge personal profits ...

Solution Summary

Kozlowski certainly misused his authority in distributing bonuses, extending loans, and misreporting material items. How do you account for this behavior?

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See Also This Related BrainMass Solution

Tyco International Case Study

Individual Assignment: Case Study Analysis

Case Study Tyco International: A Case of Corporate Malfeasance Prepare a paper analyzing strategic implementation at Tyco that includes the following:

-Describe how the lack of corporate governance at Tyco contributed to its downfall.
-Explain how Dennis Kozlowski used organizational structure and controls to implement his strategic plan.
-Analyze the role of Tyco leadership in strategic implementation.
-Evaluate the role of strategic entrepreneurship in creating firm value at Tyco.
-Reference your readings and at least two other sources, including the Internet, or other properly cited sources.

Format your paper according to APA standards.

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