Summarize the overall viewpoint of the author, and discuss the major issues presented in the case. Review the Questions for Thought. Answer these three questions using the business ethics principles from the textbook. Thank you.
The overall viewpoint of the author is that in several ways the top management of Tyco had behaved in an immoral manner. He lists several issues that underline the immorality and impropriety committed by the top management. An issue that the author points out is how Dennis Kozlowski evaded sales taxes on a painting he had purchased in Manhattan. The dishonesty of Kozlowski is illustrated by the fact that he had the art gallery ship empty crates of paintings to New Hampshire to avoid paying taxes. Kozlowski's acquisitions of companies had increased the debt of Tyco to $27 billion. As the investigation expanded the prosecutors found that several residences of Kozlowski had been purchased with Tyco money. Kozlowski and CFO Swarz were indicted for illegally obtaining hundreds of millions from Tyco for their personal use. There were charges of racketeering in stock fraud, disbursement of bonuses that were not authorized, and falsification of expense accounts. Kozlowski had approved forgiveness of loans to fifty one Tyco ...
This solution explains how the management of Tyco violated basic ethical principles. The sources used are also included in the solution.