Since my arrival in July 2002, my biggest challenge has been to begin the process of restoring genuine trust in the leadership of this company.

One of my first actions after taking the CEO job was to create the position of Senior Vice President of Corporate Governance. I hired Eric Pillmore, an outstanding executive with an impeccable reputation, to develop what I hope will become the leading program for good corporate governance.

We've already come a long way in rebuilding Tyco's credibility-by demanding of ourselves the highest standards of integrity.

For example, we have devoted considerable time and effort to drafting a new employee Guide to Ethical Conduct. That document, approved by the new Board of Directors, sets forth our rules in such areas as harassment, conflicts of interest, compliance with laws, and fraud. All the senior executives, including myself, will be evaluated annually on their adherence to the Guide.

In addition, the new Board has enacted Delegation of Authority policies that clearly delineate the lines of authority and accountability to commit or expend funds, and have adopted Board Governance Principles to direct how they will oversee the strategic planning and operations of the company.

What does this culture of accountability and good corporate citizenship mean for those who have a vested interest in Tyco?

For employees, it means working for a company they can trust to meet its obligations to them and to the vendors and customers with whom they work. It means having pride, not just in the products and services they provide, but also in the company as a whole.

Our customers benefit from the knowledge that we will do what we say we will do for them. They can be sure they will be buying the highest quality products and services we can provide, and that Tyco will stand behind what we produce.

The financial community, especially Tyco investors, can rely on our commitment to good governance to nurture the long-term value and health of the company. A solid reputation for honesty and integrity is essential to building our business. And by strengthening our accounting practices and striving for corporate transparency, we give investors the necessary tools to make informed decisions about our business.

For enforcement and regulatory agencies, it means that Tyco can be depended upon to act within the law and to strive to be an example of best practices in compliance.

Tyco's corporate culture today is built on the premise that every employee, without exception, is responsible for the conduct and success of the firm. We are working hard to make ethical business practice and personal integrity an inextricable part of this enterprise and strive to continue to identify, develop and adhere to the highest standards of corporate governance.

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