Boeing Planning Function of Management at Boeing

Boeing

Planning Function of Management at Boeing

As a provider of military equipment, a developer of defense technologies and an innovator in the field of aeronautics, the Boeing Corporation is a complex global network of divisions, departments and geographic contexts. For a corporation such as Boeing, a leading force in the development and retail of military technology, and lately with a focus on missile guidance systems and other non-commercial endeavors, the era of globalization presents both opportunities and challenges in the areas of planning and management. Changes in the global marketing scheme have created a considerably more open market for the company which, given its recent history of decline and contraction, is in a position of need with regard to enthusiastic buyers and new markets. By contrast, its position of dominance in the American market is likely also to be imperiled by the competitive entrance of foreign firms in the American market. This dynamic provides a context for the present discussion on the various dimensions of the planning function of management at the Boeing Corporation and offers us some understanding for the questionable decisions made by Boeing in recent years.

Legal Issues:

In particular, Boeing has been embroiled in a number of legal scandals which have cast the global firm into internal and organizational chaos. Though today Boeing is still among the largest aircraft and defense contractors in the world, it operates under a heavy set of litigation-based pressures. Each of the cases which has been brought against Boeing in recent years is a clear demonstration of its willingness to risk legal breach in the interests of market dominance and profitability. So is this denoted by a 2010 decision by the World Trade Organization which, according to Boeing's own media center, has charged that Boeing received billions of dollars in illegal subsidies from the U.S. government. Boeing's management would respond to these charges by noting that the WTO's case against it was less damning than that presented against Airbus on the same grounds. Boeing would go further to attributed its malfeasant behavior to a lack of clarity over laws on the global trade front. Its official statement on the matter would note that "today's ruling underscores our confidence in the WTO processes and dispute-resolution procedures. We applaud the body for its work and continue to look to Airbus/EADS and the EU to recognize that in today's global market, it is essential that everyone play by the rules and abide by the WTO requirements. Playing by the rules, for Airbus/EADS, means withdrawing their still-outstanding A380 prohibited launch aid subsidy and financing the A350 on commercial terms." (Boeing1, p. 1)

Ethics:

The decision cited above would only be one in a recent litany of charges against Boeing, which today carries a wide array of scandals along with its name. Indeed, we find with closer consideration that there are detectable contradictions between Boeing's recent line of charges and its official business ethics policies. To the latter, Boeing's official position states that "Boeing will conduct its business fairly, impartially, in an ethical and proper manner, in accordance with the company's values and Code of Conduct, and in full compliance with all laws and regulations. In the course of conducting company business, integrity must underlie all company relationships, including those with customers, suppliers, and communities and among employees." (Boeing, p. 1)

This position carries many of the traditional ethical expectations of a major corporation operating from the United States and throughout the global community. Its continued importance on the global scale is underscored by such recent contracts as that awarding it the development of two new Chinese airlines. And yet, in addition to such decisions as that rendered by the WTO and described above, Boeing's behaviors on a number of fronts seemed to contrast the ethical orientation offered above. According to an article by Gates & Mundy (2006), the last decade has produced one scandal after another for Boeing, all to the demonstration that something within the company's ethical culture is seriously flawed.

One recent scandal, according to Gates & Mundy, demonstrates that in many instances, Boeing has not acted alone but has violated legal and ethical parameters with the patronage of the U.S. government. In one incident, "in 2002, Boeing Chief Financial Officer Mike Sears offered a job to Darleen Druyun, chief acquisitions officer at the Air Force, while she was overseeing work on Boeing contracts. At her sentencing hearing in 2004, Druyun said she favored Boeing on multiple contracts because of favors granted by the company, including hiring her daughter and son-in-law." (Gates & Mundy, p. 1)

This behavior occurs in clear contrast to the terms of ethical orientation cited by the Boeing Corporation itself. Simultaneously, this behavior is directly consistent with an array of other instances during the same point in the company's history that demonstrate a company-wide pattern toward unethical practice. As Gates & Mundy note, Boeing used its purchase of McDonnell Douglas in 1997 to steal key documentation on rocket development from Lockheed Martin, bringing about the indictment of key personnel within the company. In 2005, incidentally, a merger between the two contract giants would result in a dismissal of all litigation, demonstrating that even if Boeing's ethical behaviors are out of step with its own policies, they are consistent with behaviors in the cutthroat global business of defense contracting.

Corporate Social Responsibility:

Much as with its ethics policies, Boeing presents itself as a positive member of the corporate community. And on one level, its track record demonstrates that it has dedicated some of its considerable resources to improving lives in the international communities where it operates. According to its own report on the subject, "we work with educational systems and their communities to help better prepare students with the skills they will need as part of an interactive, networked and tech-savvy workforce. And we hone our leadership skills and take Lean+ or other skills-based principles into the nonprofit organizations where we volunteer." (Boeing Frontiers, 18-19) This is part of a global strategy of community engagement boasted by Boeing's personnel. Simultaneously though, its reputation has been sullied by its involvement in the host of unsavory activities described here above. Additionally, it is understood throughout the global scheme that Boeing is a major driving force in weapons and defense innovations, meaning that its economic contributions are often undermined by its role in the upswing of recent global conflicts. This denotes something of an inherent irony in discussion ethics and corporate citizenship where a company such as Boeing is concerned.