Tyco International was composed of two major business segments: security solutions and fire protection. Thus, codes of ethics and relevant assessments of the organization must include employees at all organizational levels, as well as significant third parties that interact in operations. The Tyco International scandal refers to the 2002 theft by former company CEO and Chairman Dennis Kozlowski and former corporate Chief Financial Officer Mark Swartz of as much as $600 million from the firm. Tyco’s case shows that the problem was the unethical business practices of a number of its top ranking officers, especially CEO Kozlowski. In their march 2004 trial, they argued strenuously that the then-board of directors of Tyco had authorized the principle questionable $150 million they had received as compensation for services rendered.

The mer At this second trial, they were both declared guilty of more than 30 individual corporate violations.The first trial ended in mistrial because of a suspicious incident that happened during the final jury deliberations.

Kozlowski received a minimum of eight years and four months of jail time with a maximum sentence of 25 years possible.

While she insisted that had not been the gesture she made, the publicity of incident by the In the June 17th jury verdict of the second trial on the Tyco International scandal in 2005, the pair Kozlowski and Swartz received convictions on every one but a single one of the over 30 counts leveled against them.

Tyco’s programs were a weakness in the organization. Former Tyco International CEO L. Dennis Kozlowski and finance chief Mark Swartz have been sentenced to eight and one-third to 25 years for stealing hundreds of millions of dollars from the company.

The major ethics issues in Tyco’s case were as follows:Kozlowski’s motivation for trying to avoid sales tax on his art purchases were (1) his materialistic desires, and (2) his avoidance of raising a red flag on his illegal activities at Tyco.Kozlowski’s materialistic desires pointed to greed for financial or material gains. Tyco International plc was a security systems company incorporated in the Republic of Ireland, with operational headquarters in Princeton, New Jersey, United States. The company had programs that enabled Kozlowski to unethically use assets for personal needs. Commingling of assets occurred when Kozlowski considered the assets of Tyco as his own personal assets. State Supreme Court Judge Michael Obus had mandated that Kozlowski and Swartz repay $134 million as restitution and forfeit another $70 million in fines from Kozlowski and an additional $35 million in fines from Swartz.The executives had only made their guilt seem more obvious by the ridiculously extravagant lifestyle which they had lived during the years when they supposedly absconded with the up to $600 million from the international giant’s corporate treasury. Kozlowski and other officers from Tyco were imprisoned. Even outsiders or third parties could get involved in these ethics issues. Tyco declined as investors lost confidence in the company.Tyco’s case shows that ethics issues can occur in different parts of an organization.

The Tyco two were tried and found guilty in 2005, and are currently serving a 25- year- sentence. Court proceedings proved that Kozlowski stole millions of dollars from Tyco, and that his illegal financial transactions were extensive. The trial ended in mistrial and a retrial occurred in 2005.

The case of Tyco’s corporate scandal of 2002 focuses on the problem of unethical business practice and related issues. Through L. Dennis Kozlowski’s and Mark Swartz’s scandal reported in 2002, the Tyco Company lost over $28 billion dollars in debt. The scandal turned into a long, drawn out trial as the two accused men vigorously denied any wrongdoing and fought the charges vehemently. These were such well known corporate crimes as grand larceny, Among these were WorldCom, Adelphia Communications Corp, and Enron. Tyco was a large organization that grew through numerous acquisitions. It was also an exploitation of the weakness of the financial loopholes in the firm at the time of his leadership.It would have been possible for the board of directors to see the adjustments taking place in programs at Tyco. Swartz experienced the exact same sentence for his role in the Tyco International scandal.A class action lawsuit followed the Tyco International scandal criminal trial with a verdict handed down by Federal District Court Judge Paul Barbadoro in May of 2007. However, the biggest lash came to its shareholders who lost over $90 billion. The financial programs were opportunities for Kozlowski’s illegal financial transactions and unethical business practices.The board of directors should have examined these programs to evaluate their appropriateness. Tyco International has operations in over 100 countries and claims to be the world's largest maker and servicer of electrical and electronic components; the largest designer and maker of undersea telecommunications systems; the larger maker of fire protection systems and electronic security services; the largest maker of specialty valves; and a major player in the disposable medical products, plastics, and adhesives markets. He also used Tyco’s money to cover the costs of properties he purchased. The Tyco scandal of 2002 clearly demonstrates that the firm’s moral compass was askew.