Ethical or Unethical Behaviour at Boeing Case Study

Ethical or Unethical Behaviour at Boeing - Case Study Example It has been observed that as a consequence from the cancellation of the order from Pentagon, the company had to bear an extra cost burden of more than $1 billion in its sales. Moreover, the firm was also banned from bidding in the federal contracts for around 20 months which in turn affected its shareholders, employees as well as investors by a large extent. Additionally, the company was also found to be frequently changing its CEO’s in quick succession which created confusions and cost burden as well as other leadership hazards within the internal business environment of the organisation. For instance, in 2002 the company was led by Philip Condit. After few years Condit was replaced by Harry Stonecipher, but he was also soon taken over by McNerny. Such frequent changes in the CEO’s of the company eventually affected its financial performances by a large extent. From the overall analysis, it could be concluded that the ethical or unethical practices of the company in th e presence ultimately affected the stakeholders of Boeing including the investors, the employees and the shareholders among others (Griffin 111-112). Q.2. Which Organizational Approach To Social Responsibility Did Boeing Appear To Use Under The Leadership Of Condit And Stonecipher? How Do You Think the Approach Changed Under McNerney’s Leadership? Under the leadership of Philip Condit, Boeing was observed to be highly inclined towards mergers, both in the horizontal and vertical directions within the airlines industry as a strategy to obtain competitive advantages. It has been observed in this regard that the merger led by Philip Condit was not successful which rather gave rise... Apart from that in another issue of stolen documents from the rival company and thus practicing unethical competition, Boeing had to face cancellation of the already placed order form Pentagon and a ban of 20 months from bidding in federal contracts (Griffin 111-112). Therefore, it can be observed that Boeing, under the leadership of Condit was mostly focused on competitive positioning of the company owing to which it can be stated that the company followed a compliance-based approach towards its CSR initiatives, which however, resulted in a failure.After the leadership of Philip Condit was replaced by Harry Stonecipher, the company also had to deal with many such issues. In the year 2005, Pentagon further cancelled some of its deals with the company because of ethical issues that depicted discrimination against female workers with Boeing. The female workers also claimed that they were underpaid and filed a suit against the company. The company suffered a loss of billions of dollars from the cancellation of the Pentagon deal apart from spending almost $73 million in order to settle the suit filed by its female workers. Furthermore, Stonecipher was also under the scanner for his affair with one of the female subordinates of the company which fuelled the allegation of sexual harassment against him. As a result of such issues, Stonecipher was forced to resign from his position as the CEO of Boeing. From the analysis of both the leadership styles of the CEO’s in Boeing, it can be affirmed that the organisational approach.