Read Case Study 20, “Tyco: I’m
Sure That It’s a Really Nice Shower Curtain.” Summarize the overall...

Question

Read Case Study 20, “Tyco: I’m
Sure That It’s a Really Nice Shower Curtain.” Summarize the overall viewpoint
of the author, and discuss the major issues presented in the case.

Review the Questions for
Thought. Answer these three questions using the business ethics principles from
the textbook. (Attached: Read Knowing
right from wrong to assist in deciding which ethical principles to use,
this is from the textbook)

Your discussion of the ethical
issues facing Tyco must be in paragraph form. However, your responses to the
four Questions for Thought can be answered either in paragraph form or as a
numbered list.

Minimum word count requirement
for each answer is 300 words(900 words total).

You will be graded on your
discussion of the ethical issues facing Tyco and your responses to the
questions.

******IMPORTANT: use in-line referencing
of resources, you should cite at least 4
credible sources(1 per question) following the APA style citation guidelines.

Robert · Accepted Answer

P a g e  | 1
 
 
 
 
 
 
 
 
 
Tyco; I am sure that it’s a really nice 
shower curtain
P a g e  | 2
Major ethical issues in Tyco  
The given case discusses various ethical, legal and moral issues faced by Tyco. According to 
the given case, Kozlowski, CEO of the company was involved in number of unethical 
practices including commingling assets, manipulating company’s fund, stock price, etc. 
further analysis showed that CFO of the company Mark Swartz and legal advisor Mark 
Belnick was also involved in the dispute. Analysis showed that there is violation of Fiduciary 
Principle, Property Principle and Fairness Principle took place in the case of Tyco (Peter, 
2009).  
Question 1 
What do you think Kozlowski’s motivation for trying to avoid sales tax on his art 
purchase was? Explain?  
Answer  
Tax evasion  
According to the given case Kozlowski has avoided huge amount of sales tax on his art 
purchase. Initial investigations showed that he avoided the tax on the purchase of art work 
worth US $ 15 million at the rate of 8.5 percent that he supposes to pay to New York 
government and Manhattan. Further analysis reported that in 2002 he bought six paintings 
worth $ one million. Besides evading sales tax on the purchase of several paintings, 
Kozlowski also shipped empty boxes in the name of Tyco.  
Personal factors  
The reasons for Kozlowski’s motivation can be divided into two broad factors that are 
personal factors and organizations factors. Major motivational elements were power and 
P a g e  | 3
position that Kozlowski had as a CEO of Tyco; he was not accountable to any person in the 
organization, which gave him freedom for taking risk and manipulating his purchases 
(Trevino & Nelson, 2010). Other factor includes element of greed and self centeredness as a 
personal characteristics of Kozlowski, which motivates him to evade tax and save more and 
more for the future.  
Organizational factors  
Window dressing  
Accounting system of Tyco is equally responsible in motivating unethical behaviour among 
employees; according to the investigation undertaken by SEC in 1999 it was found out that 
management of the company was involved in artificially inflating organizational profits,

Read Case Study 20, “Tyco: I’m Sure That It’s a Really Nice Shower Curtain.” Summarize the overall viewpoint of the author, and discuss the major issues presented in the case. Review the Questions...

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