Case Study on Boeing: How Low Can They Fly

Case Summary

The Bocing case can really be considered to be four mini$-$ethics cases under the Bocing umbrella. The first mini$-$case pertains to the relationship between Bocing employees and the United States Air Force. It was alleged that a high ranking acquisition manager for the Air Force, Darleen Druyun gave some "sweetheart" deals to Bocing in exchange for being hired by Boeing after she retired from the Air Force. Of course these types of relationship violated the codes of conduct at both Bocing and at the Air Force, but these deals were not discovered until after Druyun had retired from the Air Force and started her position at Boeing It was alleged that Druyun not only made sure the Boeing received the military contracts, but she also made sure Bocing receive a large profit on the sale and she disclosed information about Bocing competitor's, Airbus, bid for the same contract. Both Druyun and her contact at Bocing, CFO Mike Sears, were fired by Bocing onec contradicting evidence was presented pertaining to Druyun being involved in the negotiations as an Air Force employee even though she had atready started discussions with Boeing for a job after she retired by the Air Force. Druyun was sentenced to nine months in prison and Sears was sentenced to four months in prison.

The second mint casc relates to Bocing obtaining $35,000$ pages of documents from one of its critical competitors, Lockheed Martin A top executive at Boeing. Larry Satchell was charged withrobstruetion of justice and conspiracy to violate U$.$S$.$ procurement laws. It was also discovered that Bocing, in the past, had oblained proprietary information from another efitieal competitor. Raytheon. After Boemg's acqusition of the Lockheed Martin documents has been made public, the Pentagon withdrew St bittion in$-$military contratets: Boemg was also accused of manipulating its financtal statements during its merger with Mebonnell Douglas to make the merger look more attractive. Simfar to Enron's mark to markerapproach. Boemgrecurded the operating profitwhen a program wits still being attractive when the merger did takeplace.

Another ethical issue of merit related to Bocing is its treatment of women and minoritics they were compensited. It wat itso deternined the Boemg was givmg fower fevels of componsttion to Asian and Black Workers in compared with Whte worken. In addition. Beemg: CEOAPlip Condit had been romanticatly linked isth Boemg employees.

Tins leads to the fourth ethical isslle wheh was the now CFO. Harry Stonecipher. In less Boemy employes.