Chapter 2 - Lost in Aerospace Case Study

Name: Adelson B.
Arado ID Number: 190000002087

Code & Subject: BA203 Human Behavior in Organization July 06, 2019
Lost in Aerospace
I. Introduction
Boeing is one of the world’s largest aerospace firms. It manufactures airliners
forcommercial and military segments. It happens in February 2008, when Pentagon
initiated to surprise the entire industry by awarding its project/contract to the Northrop -
EADS partnership (worth $35 billion contract on air force / jet tanker), putting an end to
its all-time favorite jet tanker provider-Boeing. After all the speculations and
investigations on the moral problems and violations perceived by Boeing together with
management selections, staff concerns/issues and organizational reputation. There
might be a problem with its culture most specifically the ethical code of conducts that
affects its decision making and the operation of the organization as a whole.
II. Issues underlying the problem

According to Rushworth M. Kidder with his assessment on problem about morality-
play that going on with Boeing’s company, not to mention the many problems/trouble
background provided in the case, management ethics could pose an assertive problem
(congressional inquiry into ethical and legal violations in aerospace, theft of Lockheed
Martin's trade secrets, trade jobs issue). And despite its measures / changes, including
corporate governance morality, signing a company code of conduct by employees and
actions initiated to improve service by McNerney still lose the battle of winning the bid
and worst its credibility as a whole in the eyes of its stakeholders and the industry.
III. Alternative Solutions to the problem

With Boeing's current performance, which has a major impact on people including
staff, the organization, and its stakeholders. The following set of solution may be
applicable in coping with their present problem:

 Managing ethical behavior (by establishing ethical standards). Ethical standards
has great impact on any organization for that reason many organizations have
establish its own ethical standards and ethical committees that maintain and
promote this. The Boeing top management should initiate by starting in their level
establishment of ethical standard. They must create an organizational culture and
define what will and will not be acceptable behaviors. For which they arrange
different events and training program. They may also formulize their ethical
standard by preparing guidelines of ethical code that benefits economic agents or
the stakeholders. In order to avoid unpleasant effect of ethic code, experts suggest
three steps model of establishing code of ethics, namely:

1. Gather the relevant factual information.
2. Determine most appropriate moral values.
3. Make ethical judgment based on the propose policy.
After following set of guidelines must effect the full-implementation and educating
them of the ethic codes, conduct review of its effectiveness and may add or drop
values that are more meaningful or not.

 Improve / review corporate governance. This solution may include modification by
increasing diversity of the company. It also involves conducting scrutiny and
appointing qualified board members-the nominating committee should devote
sufficient time to identifying board members with industry abilities. The board of
members should be a balance between those who know the organization, those
who have a helpful expertise and those who offers fresh perspective. Improvement
on corporate governance also impose an evaluation of board performance, their
willingness to examine their own strengths and weaknesses. On regular basis, the
board should conduct a self-evaluation process including the performance of
individual directors.
IV. Conclusion
With Boeing’s remarkable loss of confidence in corporate conduct, there is an
urgent need to work towards restoring its ethical code of conduct. Although ethical
education appears to generate restricted proof of evolving behaviors, Boeing's
management's commitment to monitoring all employees ' annual ethical schooling will
yield the required beneficial outcomes. Clear communication of honorable and
anticipated behaviors in the organisation should be provided to staff. They must retain
and stand firm on a clear cutting policy that the only way to do company well is through
ethical techniques. Through this, Boeing may be able to capture the attention of the
industry again, satisfy fresh customers, gain government confidence and interest, or
even develop more, not just in company, but as a person on their own level.
V. Recommendations
To restore and preserve a culture that upholds honest and ethical and ethical
behaviors, the organization leader of Boeing must verbally promote ethical environment
and relentlessly “walk the talk” by making ethical behavior part of the organization’s
agenda. They need to establish codes of business conduct to guide employees’
behavior. And also, there should be a need for establishing annual business ethics
training for the employees to fully-engage themselves in the actualizations of aim of
ethical standardization.
VI. Factual Experience

So far, I don’t have experience any problems that involves ethical misbehaving like
Boeing company described in the case scenario. Last March 2019, I travel to outside of
the country with Filipino owned Aviation Company. I was accommodated by the staff and
crew in a good way. They value and treated all the passenger very well and with all the
big smile in their faces.

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Name: Adelson B.

Arado ID Number: 190000002087

forcommercial and military segments. It happens in February 2008, when Pentagon

management selections, staff concerns/issues and organizational reputation. There

II. Issues underlying the problem

corporate governance morality, signing a company code of conduct by employees and

III. Alternative Solutions to the problem

applicable in coping with their present problem:

establishment of ethical standard. They must create an organizational culture and

standard by preparing guidelines of ethical code that benefits economic agents or

three steps model of establishing code of ethics, namely:

values that are more meaningful or not.

increasing diversity of the company. It also involves conducting scrutiny and

appointing qualified board members-the nominating committee should devote

on corporate governance also impose an evaluation of board performance, their

board should conduct a self-evaluation process including the performance of

education appears to generate restricted proof of evolving behaviors, Boeing's

yield the required beneficial outcomes. Clear communication of honorable and

agenda. They need to establish codes of business conduct to guide employees’

training for the employees to fully-engage themselves in the actualizations of aim of

VI. Factual Experience

big smile in their faces.

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