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In: Economics

Case 2: Dennis Kozlowski came from modest circumstances. He began his career at Tyco International in...


Case 2: Dennis Kozlowski came from modest circumstances. He began his career at Tyco International in 1975 as an auditor, and worked his way up the corporate ladder to become CEO in 1992. Kozlowski gained notoriety as CEO for the rapid growth and success of the company, as well as his extravagant lifestyle. He left the company in 2002 amid controversy surrounding his compensation and personal spending. In 2005, Kozlowski was convicted of crimes in relation to alleged unauthorized bonuses of $81 million, in addition to other large purchases and investments all for himself.


Questions of case 2:

a. What is the ethical dilemma here?
b. What could be a problem here? How can it be avoided? Explain.

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