Synopsis One - The Boeing Company – Don Woullard
Boeing is one of the largest global aircraft manufacturers in the world. In a similar fashion McBride Financial wants to achieve the same global presence as Boeing and become the world leader in mortgage financial services (McBride Financial Services Mission, para. 1). For McBride Financial Services, possessing high ethical standards is very important. Ethics and integrity is also an imperative the Boeing Company. For nearly 80 of the 100 years in the aerospace industry, Boeing has been recognized for its high ethical standard. So in 2003 Boeing “was stunned to find itself among the companies that made headlines for high profile ethical lapses." (Brandes, 2007). For almost a decade, 1993-2003, the impact of poor management decisions drastically changed the once positive image of the company.
Several scandals plagued Boeing’s reputation. The first problem surfaced when a former employee of one of Boeing’s competitors used stolen documents to give Boeing an advantage in the proposal bidding process for a major contract. Another ethical issue surfaced when “behind the door” negotiations with a high-ranking government official after her retirement for an executive position. This arrangement involved the exchange of insider information and the awarding of a multi-billion dollar government contract. In addition to these unethical practices Boeing’s Chief Executive Officer (CEO), Phil Condit, was caught having extramarital affairs. Although these issues were solely individual decisions, their actions affected Boeings leadership image, the ability to secure future contracts, severe financial losses, and the pride of 160,000 employees. According to Loren Thompson, a defense analyst at the Lexington Institute in Arlington, Va. "Under Condit, engineering skills and ethics seemed to lose sway over senior management…Condit booked a huge amount of defense business by allowing his subordinates...