International Business – Eth301

Touro University International

Students Name

International Business – ETH301

Donna DiMatteo

Module #1 – Case

23 April 2007

The Boeing Company hired Harry Stonecipher because he was a veteran of the aerospace community and well respected. He had been on retirement from the McDonnell Douglas Corporation were he last held the position of CEO. Boeing’s former CEO had just resigned due to an ethics scandal also involving other executive officers and the U.S. Air Force. Mr Stonecipher was known for his work ethics and was hired to enforce standards of conduct and restore the company’s credibility. He would later resign himself due to a consensual relationship with an employee.

The Boeing Company has taken some powerful hits in the executive branch. Before Phil Condit resigned his position as president, the company was very competitive in the commercial aviation business. Condit’s departure came a week after the company dismissed its chief financial officer and another senior executive he helped recruit from the Pentagon. Their business dealings over a proposed $20 billion contract to supply aerial refueling tankers to the U.S. Air Force were being investigated. The Pentagon penalized Boeing’s satellite operations after finding that the company had stolen documents from its competitor Lockheed Martin Corp. This collective group of executives was out for the best interests of the company however in considering the consequences the ends were to justify the means.

Indeed, Boeing has executed the right move when they asked for the resignation of Stonecipher. Despite the positive direction that he was leading the company, Boeing was not in a position to overcome the embarrassment that came with his actions.

When Harry Stonecipher was approached with allegations of an improper relationship, he did admit to a consensual affair. However, according to Boeing he did not violate the company’s code of conduct because she did not...