Written Assignment Unit 7

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BUS 5113 - Organizational Theory and Behavior
Leadership, Power, and Ethical Behavior
Written Assignment Unit 7
Dr. Ram Shukla
29, December 2022

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Introduction:
Good departments are not only the basis for the success of organizations. There are even many
complementary issues for leaders or managers. Perhaps the most important thing is for administrations
to enjoy integrity and transparency, and to avoid corruption issues. And that the employees of the
organizations at all levels are aware of and sign the code of conduct for the ethics and behavior of
workers within the organization. The Code of Conduct is a guide for assisting professional and
academic workers to act with integrity, and The Code of Conduct provides guidelines for everything
related to the ethical and professional behavior of workers and guidance on safety and conflicts of
interest. (Hayes, 2022) Through this research, I will discuss the issue of corruption that occurred at
Tyco Corporation.
❖ Summary of the corruption case.
In 1960, Arthur J. Rosenberg established a company that combines science and energy. At the same
time, the company worked in the field of trade, acquired several companies, and increased its sales
from $34 million to $500 million. (Daniel Funds Ethics Institute, 2011) Later, the company was named
Tyco International and had branches in several countries. The company started strongly in America in
four areas of medical services, fire, packaging, and technology. In 1982 the CEO of the company died
of cancer and John F. Fort took his place, where he worked to reduce expenses and increase
acquisitions and appointed Kozlowski to receive the security and safety sector later Fort resigned due
to his fear of Kozlowski policy In the company, Kozlowski was appointed manager of the company,
where he acquired a large number of companies and achieved great success, as the board of directors
decided to increase Kozlowski’s salary from $8 million in 1997 to $170 million in 1999. Kozlowski
divided the company into four branches and appointed two people on his part, one of whom was an
accountant and the other a legal advisor. His party. In 2002, corruption cases began to unfold for the
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board of directors, where they noticed that Kozlowski had spent millions of dollars on his expenses in
his home and family, buying expensive paintings and luxurious curtains, and transfers from the
company’s balance in the bank to his account. He was accused of stealing millions from the dollar and
was sentenced to a large financial break for shareholders and imprisonment for 8 years. The
appointment of Edward as Chief Executive Officer of the company, where he worked on governance,
accountability, and strong leadership that follows behavior ethically to keep the company strong and
maintain its status.
❖ Abuse of leadership power, unethical behavior, and corruption in the case.
The importance of ethical behavior in the organization stems from everyone's feeling of a kind of
comfort and confidence in working with others, especially the manager. When the manager commits
unethical behavior, this leads to much harm to the organization. Ethical behavior is of high importance
because people and clients feel safe when working with a highly ethical company or manager .
(Leonard, 2018)
In my opinion, in the case of Tyco Corporation, there was a kind of abuse of authority and unethical
behavior, for reasons including:
1-The authoritarian way CEO Kozlowski used to work.
2-Using his position to work according to personal goals and acquiring large companies in the name
of the company.
3- Kozlowski's pre-planning of his intent to steal.
4-Appointing people on him to occupy positions in the company that helped him commit corruption .
5 -Using the company’s and shareholders’ funds for his and his family’s well-being and owning luxury
items at the expense of others.
6- Not working with honesty and integrity, and exploiting his position for theft and fraud.
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❖ Reasons why leaders hold high ethical standards.
The importance of having a leader committed to the ethics of professional behavior is very
necessary for the success of the organization and for giving a high-quality image to the organization
in the business world. There can be no compatibility between the leader and unethical behaviors. The
leader is considered an inspiration and guide for the employees in the company, so he must have high
professional behaviors and ethics. The ethical leader must earn the trust of the public and employees,
and this is a major reason for leaders to enjoy professional ethics. Leaders' professional ethics are
linked to public and community trust, especially in light of the frequent professional scandals.
(Williams, 2022)
❖ Changes made to address ethical conduct.
The new CEO had many practices as he worked on accounting practices auditing for fear that it might
be an unnoticed fraud. Formation of a new board of directors after being elected by all shareholders.
Establishing a clear code of conduct in multiple languages depends on reaching the leadership of a
morally strong company and always tracking behaviors and accountability. Work on an ethical
program in which many employees have been replaced. Release a hotline for the company to report
any ethical and professional
Conclusion:
in my opinion, whenever the company is large, there should be more than one CEO, or the board of
directors should be the same as the CEO. It is not possible to trust and rely on a single person, and it
is better to distribute the implementation tasks to that there will be deputies responsible for each
department. The need for a code of conduct and the existence of Constant monitoring within the
organization.
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References:
Daniel Funds Ethics Institute. (2011). Retrieved from Tyco International: Leadership crisis.
University of New Mexico:
https://my.uopeople.edu/pluginfile.php/1627364/mod_book/chapter/371100/Tyco%20Case%
20Study.pdf
Hayes, A. (2022, Jun 29). Code of Ethics- Understanding Its Types, uses through examples.
Retrieved from Investopedia: https://www.investopedia.com/terms/c/code-of-ethics.asp
Leonard, K. (2018, Oct 25). Professional & Ethical Behavior in the Workplace. Retrieved from
chron: https://smallbusiness.chron.com/difference-between-code-ethics-conduct-2724.html
Williams, A. (2022, May 08). What is Ethical Leadership- how to be an ethical leader. Retrieved
from Bovp: https://bvop.org/journal/ethical-leadership/

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BUS 5113 - Organizational Theory and Behavior

Leadership, Power, and Ethical Behavior

Written Assignment Unit 7

Dr. Ram Shukla

29, December 2022

❖ Summary of the corruption case.

maintain its status.

❖ Abuse of leadership power, unethical behavior, and corruption in the case.

behavior, for reasons including:

1-The authoritarian way CEO Kozlowski used to work.

3- Kozlowski's pre-planning of his intent to steal.

items at the expense of others.

❖ Reasons why leaders hold high ethical standards.

❖ Changes made to address ethical conduct.

any ethical and professional

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