Article comprehension and question analysis

Cleaning Up Boeing

List the reasons that McNerney and the author of this article identify why Boeing experienced and possibly other ethical behaviors. Are these explanations reasonably accurate in your opinion? Are there any other causes that come to mind?

The corporate heads of the multi-billion dollar Boeing had exhibited gross disregard for the company's well fare and image. Several former employees had been convicted of white collar crimes and the CEO had resigned in embarrassment after several scandals reached the media. Lavish company parties, such as the "Palm Springs fling," scandal cover-ups, employee felony convictions, and even breaking attorney-client privilege included the long list of ethics abuses in the upper management of the Boeing Corporation before W. James McNerney Jr. was appointed as the company's CEO. These outrageous behaviors shocked many outsiders and were becoming too blatant to keep wrapped up behind corporate doors. McNerney himself publicly announced his disappointment over recent behavior at the company retreat in 2006 and has since made strenuous efforts to clean the company's moral and ethical code of conduct.

2. What steps did McNerney take to improve Boeing's ethical conduct? In your opinion what other steps would you take, if in McNerney's situation, to improve company's ethical conduct?

As the new CEO, McNerney has implemented several strategies to improve business practices. McNerny did some major cleaning house and has shown success in his attempt to improve Boeing's image. First McNerney brought in General Counsel Douglas Bain to help clean up the corruption from the inside. He also plans on quelling all management feuds within the company. The rift within Boeing had haunted production since the merger of the McDonell Douglas Corp. with Boeing in 1997. Successfully uniting the still arguing groups of what is now Boeing would increase company profits and improve ethical behavior. McNerney has made a prime example of himself for his company to follow. Insiders report his extremely personal effort to change Boeing's environment including excellent employee treatment. He has also set in place rewards for management based on employee treatment and relations. McNerney has also reduced the company's legal, P.R., and finance departments at the corporate head quarters site in order to further unite the corporate head quarters under one general practice. Personally, I think McNerney should continue his personal effort to improve ethical conditions for his employees. This shows the everyday employee that the company's interests are their interests as well. McNerney should definitely be wary of focusing too much on solely improving the company's image to outsiders, and focus on truly rebuilding the company in order to achieve his goal thoroughly.