Case Studies Of Enron And Tyco

1237 words, 5 pages

Intro Sample...


RUNNING HEAD: Case Studies of Enron and Tyco

Case Studies of Enron and Tyco
MGT625 Leadership Styles & Development (OL202)

June 28, 2009
The corporate culture of Enron contributed to its bankruptcy was by not upholding an ethical culture to maximize and guide the organization’s rules and principles. The goal of the ethical culture in which Enron failed to capture was because of the lack of ethical reasoning and did not have proper management which supports, shares and values cultural initiatives which develops organizational ethical values. Enron slowly turned its back toward asking questions and acknowledging of what the discrepancies were in the net income and cash flow areas of the company. The corporate cultural of Enron... View More »

Body Sample...



The legal issues of this case is not paying state taxes. The second legal issue is the conflict-of-interest between board members and companies. The third legal issue in the Tyco corporation is the falsifying of business records to cover up loans in which Mr. Kozlowski received or taken from the company. The fourth legal issue is stealing and selling stock options to buy personal items. The fifth legal issue is that the former top executives have secretly looted the company which spread throughout management.
The role of the Tyco corporate culture played in the scandal by secretly authorizing the forgiveness of millions of dollars of loans to dozens of executives to keep their loyalty which is partially ethical issue. The former executives of Tyco believed in not getting caught or reprimanded for their actions. Tyco’s executives’ fantasies of what is right and wrong was questionable due to the idea of nothing and no one can stop them. The executives have lost their

Case Studies of Enron and Tyco 4
Case Studies of Enron and Tyco
sense of what is ethical and what is not over a course of time while working at Tyco.
The role of the board of directors, CEO, CFO and legal counsel played in the Tyco scandal is that everyone followed the leader and did not ask questions whether any action is legal or ethical. The board of directors knew of what the bounces were but was unaware of it because it was received in their compensation packages. The CEO (Mr. Kozlowski) and CFO (Mr. Swartz) was caught for stealing from the company and falsifying business ...

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