Boeing's Corporate Governance Crisis

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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 : CGOX003 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges



Case Length : 9 Pages
Period : 2004
Pub Date : 2004
Teaching Note : Not Available
Organization : Boeing
Industry : Aerospace
Countries : Global


The Boeing Company (Boeing) is the world''s largest aerospace company. Towards the end of 2003, Boeing finds itself in the midst of a highly publicised scandal. The Justice Department, two investigative branches of the Defence Department, and the Senate Armed Services Committee have been investigating allegations that Boeing has acted improperly, in an effort to win two multibillion-dollar aerospace defence contracts. A second scandal, dating from 1998, involves the possession of 35,000 pages of competitor, Lockheed Martin''s documents during the 1998 bidding for a military rocket-launch contract. The Pentagon has indefinitely suspended Boeing from bidding on future rocket contracts pending a review of its ethical practices.

Lockheed Martin has sued Boeing over the alleged document theft. The CEO, Phil Condit has himself submitted his resignation. The case deals with the corporate governance problems at Boeing and how the company is coping with all the problems.


Boeing : Corporate Governance.


  Page No.
Introduction 1
About Boeing 1
Corporate History 2
The Pentagon Scandal 5
The Road Ahead 7
Exhibits 2


Boeing; Board problems; Corporate governance crisis; The Pentagon scandal; Condit; Boeing 767 tankers; Lockheed Martin; Scandal; 7E7; Jetlines programme.

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