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    Tyco International: culture, opportunity, unrepentant

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    Tyco International Case Study
    1- What role did Tyco's corporate culture play in the scandal?
    2- How did Dennis Kozlowski have the opportunity to stead $137 million in unauthorized bonuses?
    3- Why is Kozlowski, now a prisoner for a long time unrepentant about his conduct as CEO of Tyco?

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    1 Tyco's "tone at the top" was aggressive and did not respect authorizations or internal controls. Most of their board of directors were insiders and officers could buy and spend unlimited amounts without approvals from anywhere else. This is a basic internal control (authorization) omission and would set the tone for others to fail to seek approvals or establish controls. Further, Tyco openly supported pushing of the rules and engineering transactions to arrive an desired financial amounts. The managers priced Tyco stock to make the deal look like a profit when it was, in fact, a loss, and paid large bonuses for ...

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