Boeing's Unethical Practices

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BECG037 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Ethics in Business
Case Length : 12 Pages
Period : 1997 - 2004
Pub. Date : 2004
Teaching Note : Available
Organization : Boeing
Industry : Aerospace
Countries : USA


Boeing's Board had independent directors in the majority. The company was also well-known for the values and ethical code of conduct it had laid down.

However, the company came under criticism on several occasions for its alleged unethical practices. The case focuses on these ethical lapses that are alleged to have occurred in Boeing.

The case gives detailed information about the various lapses at Boeing - an accounting scandal, the Lockheed Martin controversy and the tanker lease deal controversy.


Impact of ethical lapses on the company's image and its standing in the market

How elaborate ethical procedures do not always guarantee ethical behavior in an organization


  Page No.
Troubles at Boeing 1
Background Note 2
Code of Ethics at Boeing 3
Accounting Lapses 4
Lockheed Controversy 6
Tanker Lease Deal Controversy 7
What's Done Cannot be Undone 8
Exhibits 10


Boeing, directors, values, ethical, code of conduct, criticism, unethical practices, ethical lapses, accounting scandal, Lockheed Martin, tanker lease deal controversy

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