CONCLUSION

The Tyco scandal has a lot of implications for the business world, especially in terms of ethical corporate
behavior. Dennis Kozlowski's example demonstrates what may happen when a company's power is
concentrated in the hands of a single person: it becomes a prerequisite to commit fraud. Tyco's case
also demonstrates how important business ethics is in a company; it was evident that the CEO, CFO, and
other board members violated the three values (Honesty, Integrity, Fairness) which were fundamentals
of business ethics. Due to this, expenses were abused, insider trading was prominent, and improper
presentation of information came to the surface. After said, we can see how important business ethics
is; it is a determinant of how a company will survive, if not practiced it would surely cause a company its
impending doom. On the positive side, Tyco's existence reveals that some businesses may withstand big
ethical problems provided they take the correct measures (i.e., Satyam). Tyco took steps in reaction to
the controversy that went above and beyond what was required. The new CEO reorganized the
structure of the company and put into position those elected by the shareholders themselves, he also
incorporated elements into Tyco’s system that strengthen the integrity of the business such as a strong
and ethical corporate leadership, accountability, and behavior tracking process. The expedient decisions
of the new CEO to enforce proper ethical behavior continue to restore the falling company back to its
former glory.