Boeing is a company of incredible, fascinating and amazing
people working in one of the most exciting industries in the world - aerospace.
Considering the many accomplishments, creativity and building a foundation of innovation,
from designing and building the earliest biplanes to creating and supporting today's
supersonic aircraft and spacecraft, one might think Boeing would be content
with how far the company has come. But a company of Boeing's size (166, 000 employees worldwide) and
scope ($95 billion 2014 revenue) doesn't succeed by resting on its laurels and
being complacent; Boeing is constantly re-examining capabilities and processes
to ensure that the company is as strong and vital as heritage. In fact, the culture
mirrors the heritage of aviation itself, built on a foundation of innovation,
aspiration and imagination. (Boeing, 2015)
The Boeing Vision is:
People working together as a global enterprise for aerospace industry
leadership. How will we get there?
- Operate
as One Boeing
- Deliver
customer value
- Lead
with innovation
- Fuel
growth through productivity
- Leverage
global strength
In order to realize our vision, Boeing considers where it is
today and where it would like to be tomorrow. There are certain business
imperatives on which Boeing places a very strong emphasis.
- Detailed
customer knowledge and focus
- Technical
and functional excellence
- Large-scale
systems integration
- Lifecycle
solutions
- Lean
global enterprise
Boeing Values
Boeing is committed to a set of core values that not only
define who it is, but also serve as guideposts to help the company become what
it would like to be. Boeing aspires to live these values every day.
Integrity
We take the high road by practicing the highest ethical
standards and honoring our commitments. We take personal responsibility for our
own actions.
Quality
We strive for first-time quality and continuous improvement
in all that we do to meet or exceed the standards of excellence stakeholders
expect of us.
Safety
We value human life and health above all else and take
action accordingly to maintain the safety of our workplaces, products and
services. We are personally accountable for our own safety and collectively
responsible for each other's safety. In meeting our goals for quality, cost and
schedule, we do not compromise safety.
Diversity & Inclusion
We value the skills, strengths and perspectives of our
diverse team. We foster a collaborative workplace that engages all employees in
finding solutions for our customers that advance our common business
objectives.
Trust & Respect
We act with integrity, consistency, and honesty in all that
we do. We value a culture of openness and inclusion in which everyone is treated
fairly and where everyone has an opportunity to contribute.
Corporate Citizenship
We are a responsible partner, neighbor and citizen to the
diverse communities and customers we serve. We promote the health and wellbeing
of Boeing people, their families and our communities. We protect the
environment. We volunteer and financially support education and other worthy
causes.
Stakeholder Success
By operating profitably and with integrity, we provide
customers with best-value innovation and a competitive edge in their own
markets; enable employees to work in a safe, ethical environment, with a highly
attractive and competitive mix of pay and benefits, and the ability to further
share in the company's success; reward investors with increasing shareholder value;
conduct business lawfully and ethically with our suppliers; and help to
strengthen communities around the world.
(Boeing, 2015)
Boeing believes that the same behaviors that drive strong
performance – leadership, openness, accountability and inclusion – also enable
a robust and effective ethics and compliance program. Ensuring that the Boeing
values remain foundational to our work reflects a daily commitment from every
employee who wears a Boeing badge. This message is delivered by the chairman
each year with a videotaped message to every employee, and in numerous external
remarks given by senior leaders in various forums.
While each employee is accountable for upholding our Code of
Conduct and following all applicable laws, regulations and company policies,
Boeing advances its unified approach to ethics and compliance through the
integration of four key functions: Ethics and Business Conduct, Global Trade
Controls, Corporate Audit and Compliance Risk Management. These organizations
constitute the Boeing Office of Internal Governance (OIG).
This integrated group creates a sustainable advantage for
Boeing by enabling compliant company performance while building on its legacy
of integrity. The nearly 500-person team of professionals focuses on:
- Advancing
an open, accountable and transparent culture;
- Independently
and objectively evaluating processes and controls;
- Leveraging
One Boeing through strong integration and collaboration;
- Applying
expertise, business acumen and strong functional discipline; and
- Educating,
training and informing Boeing employees worldwide.
(Boeing, 2015)
Speaking
up is a cornerstone for building an open and accountable workplace culture. Boeing
believes that creating an environment where employees are comfortable raising
issues and concerns without fear of retaliation enables openness which can lead
to improved business performance and inspire greater innovation. Boeing
maintains policies and procedures to encourage employees to report concerns and
seek guidance, using confidential and, when preferred, anonymous methods,
including contacting local ethics advisors, using toll-free phone numbers and
accessing web-based portals. Retaliation against employees who raise concerns
is not tolerated and is cause for appropriate corrective action, up to and
including dismissal.
(Boeing, 2015)
Unfortunately, there are several
examples of unethical leadership.
In 2003, Mike Sears, CFO, and
Darlene Druyun, Vice-President and Deputy General Manager of the Missile
Defense Systems unit, were fired and both received prison terms – he for four
months and she for nine. She sought and received a $250,000 a year job at
Boeing while she was working as an Air Force procurement officer at the
Pentagon. She and Mike Sears negotiated her position along with a $22 billion
contract to supply the US Air Force with (100) 767 refueling tankers. Congress
later cancelled the contract after the scandal was disclosed and went public. (Boeing, 2015)
In December 2003, the board of
Boeing announced that it had accepted the resignation of Chairman and CEO,
Philip Condit. Condit stated, “Accountability begins at the top”. (Boeing, 2015)
The
tanker program competition was reopened for re-evaluation and proposals to all
airframe manufacturers including European Airbus. After an intense review and
evaluation for several years, the 767 was selected as the winner.
Harry Stonecipher, former Boeing
vice chairman and COO, who also headed McDonnell Douglas when it merged with
Boeing in 1997, was brought out of retirement to run Boeing. Stonecipher soon
restored credibility to the aerospace giant along with increasing market
valuation by over 50%. He also promoted corporate ethics as a top priority.
However, it was then disclosed that Stonecipher was having an extramarital
affair with a female company executive. The board ordered him to stop but he
refused. He was then asked by the board to resign. The relationship violated
Boeing’s code of conduct which ironically Stonecipher implemented and all
employees must sign once a year. His “poor judgment… impaired his ability to
lead.” "His downfall was that he failed to practice what he preached. ” (Boeing, 2015)
So, what is the root cause of all these examples? It is entitlement, greed, self-interest and focus on oneself along with human nature and ego. And these examples do not demonstrate leadership in fact just the opposite. This is white-collar crime (WCC) and fraud. What is the fix? Ethics training, ethics curriculum and code of conduct and most importantly leadership by example. And regulation monitoring too, e.g., Sarbanes-Oxley Act.
References
Boeing
(2015). Available http://www.boeing.com/
YouTube (Poster, The Ethics
Guy; Uploaded August 24, 2012)
https://www.youtube.com/watch?v=eLxbHBpilJQ
YouTube (Poster, Chuck
Gallagher; Uploaded January 27, 2013)
https://www.youtube.com/watch?v=gUJ00vNGCPE
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