Face Of An Organization: Dennis Koslowski, CEO of Tyco International

Face of an Organization
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July 9, 2019
‘Faces of the organization’ can bring companies their own risks and benefits. Specifically, while it helps the company to bolster its own the name through the reputation or fame of the person, it could also cause significant damages if the public personality commits a blunder. In this article, the negative publicity brought about by Dennis Koslowski, former CEO of Tyco International, would be discussed in terms of its effects to the organization itself.
Dennis Kowlowski was well known for his ability, success, and consequently, his blunder. Kowlowski joined the Tyco Company in 1975 and rose to the ranks, until he became the CEO in 1992 CITATION Prend \l 1033 (Prentice, n.d.). As he took control of the company’s helm, he focused on the rapid expansion of its assets by engaging in mergers resulting in the company’s outstanding financial performance compared to others of those times. Consequently, it was for his risk-taking character and ability to (seemingly) deliver results that made him popular in the public’s eye. However, as Kowlowski left the company in 2002, he was accused and convicted of corruption as he received massive bonuses and transferred funds indiscriminately to individuals and institutions both within and outside the company. His reputation has become severely tainted as he stood public trial and was convicted thereafter.
While it was Kowlowski that experienced the most severe punishment among the top ranks of Tyco, it is undeniable that the company has suffered itself. Prior the discovery of his illicit acts, Tyco had reached its peak due to its increase in performance and Kowlowski’s popularity in the public eye. He was almost viewed as an oracle that could outdo the expectations of the market, which are heavily based on the analysis of financial data. After his fall, however, the company also felt the severe repercussions as a majority of its clients have withdrawn their support and investment towards the company. In fact, during the end of 2002 fiscal year, the company has “reported a net loss of $9.1 billion after a series of write-offs” CITATION Sor02 \l 1033 (Sorkin & Berenson, 2002). This would be followed by several other setbacks as Kowlowski’s conviction made the company subject to several scrutinies, which then uncovered the deficiencies that it has when it comes to management, security, and performance.
Consequentialism
In light of business ethics, this situation can be viewed from different angles. If viewed from the perspective of consequentialism, Kowlowski’s actions could both be ‘ethical’ or ‘unethical’ based on the effects of the actions to the personalities being considered. Consequentialism is defined as “the view that normative properties depend only on consequences”. Thus, if his actions were not discovered and the company’s profits continue to grow, then his actions cannot be consi...