Case 4.3.2 (Part Two) Boeing and the Employees Who Brought the Documents with Them

After the scandal of Boeing with Lockheed Martin (explained by my partner, Eka Yulianti), the CEO Philip Condit said that Boeing must and will live by the higher standards of ethical conduct. However, Condit departed abruptly on December 1, 2003. When Condit resigned, analysts, observers, employees, and others took stock of Boeing and had gone wrong. Engineer skills and ethics seemed to lose sway. As the culture of company deteriorated, Boeing missed strategic opportunity and shareholders were in revolt.
Since the time of the management shake-up and all the fallout from the documents and the defense employee recruitment, Boeing has repositioned itself and worked toward a culture change. However, the issues continue to arise. In April 2004, U.S Attorney’s Office expanded its investigation of The Lockheed Martin documents were used on NASA projects. The documents are different and involve different managers, but the pattern of abuse is same.
However, Boeing repositioned itself and refocused on its private jetliners business. As a result, Boeing has performed well. When former CEO Harry Stonecipher returned from retirement to reassume his role following Mr. Condit’s resignation, he told to business press that they are cleaning their company.
In 2005, Mr. Stonecipher was removed as CEO after the internal investigation revealed that he had had an affair with one of company executives. The affair was uncovered by an employee responsible for monitoring e-mails, and Mr. Stonecipher’s e-mails to the executive demonstrated not only an affair but also a poor judgment in the use of company e-mail. He had violated the provision of Boeing’s code of ethics; in conducting its business, integrity must underlie all company relationships, including those with costumers, suppliers, communities, and other employees. Employees will not engage in conduct or activity that may raise questions about company’s honesty, impartiality, reputation or otherwise cause embarrassment to the company.
These cases tell us that what a poor judgment impaired his ability to lead, Mr. Stonecipher. He violated his own judgment, that can’t gives good behavior for other employees.