Leaders in power can either engage in ethical or unethical behavior. According to BExceptional, (2019), ethical leadership is when an individual behaves based on a set of doctrines and values accepted by many people as the basis for the common good. It includes aspects such as respect, integrity, fairness, honesty and transparency. On the other hand, an unethical leader is when an individual engages in an action considered to be wrong. Unethical actions undertaken by individuals in powerful positions continue to make the headlines worldwide. Based on this, when looking for unethical organizations, one is more likely to meet Tyco international due to the behavior of Dennis Kozlowski (Jiambalvo, 2019). As a result, the organization is ranked in the top ten corporate scandal list across the globe. Although leaders understand the consequences of engaging in unethical behaviors, they engage in these behaviors due to profit.
Dennis Kozlowski used his power and position to engage in unethical behavior. He is the former CEO of Tyco International, involved in unethical acts. Kozlowski was convicted of theft of business funds in 2005 (Jiambalvo, 2019). Throughout the majority of his employment, Kozlowski engaged in illegal and unethical activity. The discoveries that led to the former CEO’s conviction resulted from shareholders’ and stakeholders’ persistent questioning and interrogation tactics since Kozlowski held the authority to make decisions that may influence the direction of the organization (Jiambalvo, 2019). The company’s loss of millions of money will have long-term implications for business ethics, auditing standards, and government legislation. As such, this scandal had a significant influence on the economy and the corporate sector. Kozlowski is now a leader famous for wrong reasons and continues to attract public attention.
References
BExceptional. (2019).Ethical leadership – Ethics should be monitored & managed up, down & across the hierarchy[Video]. YouTube.
Jiambalvo, J. (2019). Managerial accounting (2nd ed.). John Wiley & Sons.