This paper analyzes human resources management and corporate social responsibility (CSR) practices at Boeing, the world's largest aerospace manufacturer. It examines Boeing's corporate citizenship framework, which centers on products and services, business practices, and community engagement. The paper outlines Boeing's corporate governance structures and discusses the critical need for effective CSR and ethical training to translate corporate values into operational practice across Boeing's 160,000+ employees and global supply chain. The analysis draws on organizational learning theory and best practices from the high-tech sector to propose that Boeing must develop tailored, multilevel training programs that account for cultural differences, industry-specific applications, and employee motivation to successfully embed CSR principles throughout the organization.
Boeing is the world's largest aerospace company and the leading manufacturer of commercial jetliners and military aircraft combined. The company designs and manufactures rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles, and advanced information and communication systems (Boeing, n.d.). Boeing sells its goods and services internationally to more than 150 countries, making it one of the United States' largest exporters. The organization also serves as a prime contractor for the International Space Station and provides services to NASA to further space exploration (Boeing, n.d.).
Boeing's history and current operations are impressive. The company employs over 160,000 people in the United States and more than 65 countries. When including Boeing suppliers throughout the international supply chain, employee figures reach into the hundreds of thousands. The company's international headquarters are located in Chicago. In 2014, Boeing's total revenues exceeded $90 billion, with 70 percent of commercial airplane revenues coming from outside the United States (Boeing, 2015).
Boeing recognizes that sustainable growth and responsible corporate citizenship are essential to its future strategy. The concept of corporate citizenship emerged in academic literature during the 1980s and has continued to develop, though scholars have not yet agreed on a single definition (Matten & Crane, 2006). The model shares many parallels with corporate social responsibility and corporate ethics frameworks.
Many scholars compare the roles of corporate citizens to those of private citizens. For example, corporations should bear the same responsibilities as private citizens, including economic, legal, ethical, and philanthropic components (Carroll, 2003). This model is relevant because corporations possess many of the same rights as individual citizens and therefore should also bear similar responsibilities.
Boeing defines its aims as a good corporate citizen by highlighting three essential functions: products and services, business practices, and community engagement (Boeing, 2012). By establishing this definition, the organization creates a foundation for building citizenship principles into its culture. This approach also enables a more systematic framework for training programs, ensuring that the concept of Boeing as a corporate citizen is disseminated throughout the organization and its suppliers across the global supply chain.
Boeing's organizational structure is designed so that business is conducted by employees, managers, and corporate officers, ultimately led by the Chief Executive Officer and overseen by the Board of Directors. The Board's Governance, Organization and Nominating Committee is responsible for periodically reviewing and updating Boeing's corporate governance principles and practices (Boeing, 2012).
The board and corporate officers recognize the importance of responding to shareholder concerns—both internal and external. Because responsible corporate citizenship is central to the organization's strategy, Boeing has developed a Code of Ethical Business Conduct. This code serves to assess different areas of ethical risk, provide guidance to help employees recognize and address ethical issues, and foster a culture of honesty and accountability (Boeing, 2012).
The Governance, Organization and Nominating Committee annually reviews the skills and characteristics required of directors in light of the board's composition. This assessment includes consideration of experience relevant to Boeing's global activities, such as operations, international business, manufacturing, finance, government, marketing, technology, and public policy. Directors must demonstrate a reputation for personal and professional integrity, honesty, and adherence to the highest ethical standards, and must be committed to serving the long-term interests of all shareholders. Boeing recognizes the value of diversity and actively seeks diversity of background, experience, and skills among board members (Boeing, 2011).
Despite Boeing's well-developed corporate citizenship platform and effective corporate governance structure, these elements do not automatically guarantee that organizational values will permeate throughout the company. For these values to manifest in operations, employees must receive effective training to ensure they understand and apply these principles. Various approaches to CSR and corporate ethical training exist, and organizations must select or develop methods appropriate to their culture and goals.
Organizations face significant pressure to fulfill CSR obligations both internally and externally. Companies such as Exxon, Nike, and Pfizer have learned through costly experience that negative CSR images and resulting adverse publicity can damage competitiveness. Additionally, new legislation increasingly mandates CSR reporting requirements.
Conversely, companies such as Ben and Jerry's and The Body Shop have leveraged their dedication to CSR principles to create distinct market niches. These organizations base their entire business models on CSR practices to gain competitive advantage (Maon, Swaen, & Lingreen, 2008). CSR principles therefore serve not only to prevent damage from unethical actions and negative publicity but also function as assets that differentiate companies from competitors. Boeing appears to be pursuing a proactive approach to corporate citizenship that can add value to its brand from consumers' perspectives.
However, research on ethics and CSR in organizational settings continues to develop. These subjects are complex and difficult to reduce to universal principles. In most cases, training programs must be developed specifically for organizational culture and the outcomes the organization hopes to achieve. In Boeing's case, effectively integrating its stated commitment to corporate citizenship across hundreds of thousands of individuals throughout the organization and its worldwide supply chain presents a significant challenge.
Many organizations have developed working sets of best practices that can inform Boeing's efforts. Boeing can adapt these best practices to its specific corporate citizenship goals. Sekerka (2009) identified best practices utilized in CSR and ethical training among high-tech companies in Silicon Valley. These practices were categorized based on content and context. Research found that many companies take a proactive approach to CSR training and include institutionalized ongoing education to reinforce effectiveness (Sekerka, 2009). Boeing should similarly integrate ongoing training into its CSR programs to maintain their relevance and impact.
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