Boeing Organizational Behavior

1562 Words7 Pages
1a). Breach in individual rights is evident in the case of ex-Lockheed manager Kenneth Branch who unlawfully gained access to “25000 documents containing proprietary technical and cost information of Lockheed”. This concerns Lockheed’s copyright and privacy issue. Distributive injustice is shown in the investigations that proved male employees were paid more relatively to their female counterparts. It is also evident in the scandal involving ex-CEO Harry and a female vice president; Harry is inconsistent towards the company’s code of conduct which he wants his employees to uphold. Due to their personal relationship, she might have gained exclusive rewards and privileges which her colleagues could not enjoy. Lastly, by holding unlawful job negotiations with a Pentagon official, the Boeing former financial officer was seen to be breaching the utilitarianism principle. Moreover, concealing of the findings of the internal studies regarding gender’s pay further illustrates this ethical lapse in Boeing. 1b). The author felt that Boeing is plagued by bad company norms. Previous CEOs were people with low ethical sensitivity who had not been leading by example. Stonecipher committed an ethical lapse by having a relationship with an employee while Philip and Stonecipher travelled in luxurious business jet with personal handlers. Subconsciously, they were conveying a message across the company: Boeing tolerates ethical lapse; power and privileges are entitlements for higher ranking staff. McNerney agrees that bureaucracy has given higher ranking staff too much autonomy such that breaching ethical codes can be overlooked since little or none in the company can penalize them. The company has a culture of unquestioning when something wrong surfaced in the company. Take for example the Lockheed documents incident, where the 25000 documents were seen in the company for nearly 3 years before someone voiced his concerns regarding it. This unhealthy culture not only allows unethical practices to prevail, it also hinders company’s growth. Strong internal rivalry between the after-merged Boeing and McDonnell Douglas Corp is also contributing to company’s ethical scandals. As competition between each party gets stiffer, employees might tend to resort to ethical breaches to gain competitive advantages so as to outshine each other. I certainly agree to the author and McNerney that the unethical dysfunctional company norm is the root cause of the ethical issue. It is this norm created by the predecessors who never set good ethical examples that influences the employees. They believed the politically safest way of executing tasks would be mimicking how their superiors get their jobs done.

More about Boeing Organizational Behavior

Open Document