Provide a brief summary of the corruption case.

The corruption case happens to do with the former chief executive officer (CEO) L. Dennis
Kozlowski and former chief financial officer (CFO) Mark H. Swartz of Tyco international,
who took advantage of the decentralized corporate structure of Tyco international. Both of
them were charged with more than 30 counts of misconduct, including grand larceny,
enterprise corruption, and falsifying business records. They misappropriated over $170
million from Tyco and were also accused of stealing more than $430 million through
fraudulent sales of Tyco stock at an inflated rate. Also, the former general counsel Mark A.
Belnick, was charged with concealing $14 million in personal loans. Boostrom, 2011 in the
article mention that “Kozlowski claimed that jealous jurors sentenced him out of spite, not
because he had done anything wrong. Kozlowski to this day feels that he was wrongly
sentenced and claims to have no regrets over his dishonest behavior”. Months after the initial
arrests, charges and lawsuits were still being filed—making the Tyco scandal one of the most
notorious of the early 2000s (Boostrom, 2011).

Why is this a case of abuse of leadership power, unethical behavior, and corruption?

The former chief executive officer (CEO) L. Dennis Kozlowski and former chief financial
officer (CFO) Mark H. Swartz of Tyco international were accused of fraudulent sales of Tyco
stock and concealing the information from shareholders which is purely unethical in business.
They also sold stocks at an inflated rate, misappropriated over $170 million from Tyco and
were also accused of stole more than $430 million (Boostrom, 2011).

Discuss why leaders are held to a high moral standard.

What changes were put in place to address ethical conduct?

Tyco international took efforts to correct the courses of action by restructuring the company
and implementing safeguards to ensure greater objectivity on the part of the board of
directors. (Boostrom, 2011).
 Conclusively, the need for putting structures in a company is very vital to its
sustainability in the industry in other to keep leaders and executives in check.

References
Boostrom, R. (2011). Tyco International: Leadership Crisis. Mexico: Daniels Fund Ethics
Initiative University of New Mexico http://danielsethics.mgt.unm.edu.