Case Study

Also, we did not have the accounting policies and procedures in place as we do now. Tyco did not have any type of ethics training during this time. This was during a time when large corporations avoided paying corporate taxes. Big businesses were running the economy. He felt like Tyco was his company and he earned this right. During his era, the theft, deceit, and money laundering became too large for one person. He had to include key people and buy his way out during the way.

He included people when necessary and if they were about to blow the whistle. He manipulated and adjusted accounting documents as he saw fit. He coordinated programs to cover his loans and overspending. Overall, he felt he was untouchable and unstoppable. Several years later, he still feels what he did was not serious enough to warrant the sentence given. Kozlowski felt his actions were not morally and ethically wrong.

The authors suggest 8 governing ethical principles which taken together they call: The Global Business Standards Codex (GBS Codex). These 8 principles to create or evaluate a Code of Conduct and their most important aspects are:

1. The Fiduciary Principle (Diligence, Loyalty).

2. The Property Principle (Protection, Theft).

3. The Reliability Principle (Contracts Premises, Commitments).

4. The Transparency Principle (Truthfulness, Deception, Disclosure, Candor, Objectivity).

5. The Dignity Principle (Respect for the Individual, Health and Safety, Privacy and Confidentiality, Use of Force, Association & Expression, Learning & Development, Employment Security).

6. The Fairness Principle (Fair Dealing, Fair Treatment, Fair Competition, Fair Process).

7. The Citizenship Principle (Law & Regulation, Public Goods, Cooperation with Authorities, Political Noninvolvement, Civic Contribution.

8. The Responsiveness Principle (Addressing Concerns, Public Involvement).

1. What do you think Kozlowski motivation for trying to avoid paying sales tax on the art...