Boeing: How Low Can They Fly?

Topics: Boeing, Ethics, Business ethics Pages: 2 (440 words) Published: January 30, 2013
Boeing: How Low Can they Fly?

Case Study

1.Identify the stakeholders in this case

A. The shareholders because they invested their money into the production of the Boeing’s Company. B. The employees were next because there were some layoffs and cut backs.

The Chief Financial Officer of Boeing (Michael Sears) and the official in charge of Air Force contract acquisitions (Darleen Druyun) pled guilty to aiding and abetting acts affecting financial interest and acts affecting financial interest respectively. Sears offered Druyun a high-level position within Boeing. At the time of this exchange, Druyun was overseeing contract negotiations between the Air Force and Boeing regarding the modification of the Boeing aircraft for military use.

During the employment negotiations (including salary, compensation, and bonus) the two also discussed awarding the modification contract to Boeing. Upon Druyun’s retirement from the Air Force, she accepted a high-level position within Boeing; When questions arose about the connection between Druyun’s awarding the contract to Boeing and her receiving a position with them post-retirement, Sears failed to disclose that he had met with Druyun while she was still an employee with Boeing in charge of contract acquisitions. Sears subsequently pled guilty to a single count of the aiding and abetting charge; his sentence is pending.

2.What is the procurement integrity act? What are the ethical implications of the act? What is the relevance of this case?

The Procurement Integrity Act prohibits the release of source selection and contractor bid or proposal information.   Also, a former employee   who served in certain positions on a procurement action or contract   in excess of $10 million is barred for one year from receiving compensation as an employee or consultant from that contractor.     What are the ethical implications of the act?   The ethical implications on the act are that the post-employment...
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