Tora Mahoney
Case of Boeing. Board of Director’s standpoint.
Boeing is an American international corporation that manufactures and sells airplanes, rotorcraft, rockets and satellites. It also provides leasing and product services. Boeing is also the second largest defense contractor in the world and the largest exporter in the United States by dollar value. It is also one of the most checkered ethical records of any large corporation. The issue we going to discuss happened in 2003. Boeing hire Darleen Druyun, who was a Air Force procurement officer for the U.S government, as the Vice President of Boeing’s Defense missile systems. As a Air Force procurement officer, she was working on a $21 billion deal with Boeing while she …show more content…
First, there is a legal way to hire people in our company, which are clearly stated in our book, and this way was not respected; They had been direct emails between the CFO and Druyun regarding employment. Second, we never had Vice President of Boeing Missile System before, meaning; this position was only created to put Mrs Druyun in. Those facts and ethical issues associated with them clearly establish that we are facing both a corruption issue and a conflict of interest. So as the Board of Directors, we have to admit that she was giving the position because she gave Boeing the deal with the government, and then identify whom are the parties affected by this behaviors and what can be the consequences. First, our reputation is at stake which will directly affect bottom lines numbers because our trustworthiness decrease so people invest less in our stock, the government which is our major client and other clients will now doubt on our integrity which can make us loose some contracts. Now that we narrow down facts, the ethical issues and the consequences, we recalled that as the board of directors we represent shareholders interests. Shareholders are major investors who want major returns. Such behaviors will, as we explain on the consequences, reduce their profits, which mean poor performance from out part. So there is a need of actions to stop the …show more content…
Individualism is the moral stance of a person and considers personal benefit to be most important factor when making a decision without affecting others. In this case, The CFO and Druyun behavior did not follow this theory. She wanted the position for herself and protection for her daughter job, the CFO wanted the billion dollars deal. They acted in their own interest instead of society interest. The Utilitarianism claims that you should maximize utility for both yourself and society. It’s clear that the violates this principle by only maximizing utility for themselves. The company had to pay almost a billions dollars to the government and suffer from bad publicity. The Kantianism requires people to act rationally with respect of people and behave with good faith. Druyun did not behave in good faith because she accepts the position in exchange of favoring the contracts. Social contract suggest that “individual moral and obligations depends upon a contract or agreement among them for form the society in which they live” but again this theory was violated. Both Druyun and CFO actions were not socially oriented but self-oriented. The Virtue theory leans on courage, honesty, justice fairness and self-control. Every problem with this case is violating a part of the virtue