Lockheed Martin's Ethics Transformation: Bribery to Integrity
This paper examines the ethical evolution of Lockheed Martin, from its widespread use of bribery and questionable sales strategies during the 1950s–1970s to its emergence as a model of corporate ethical conduct. The paper describes the unorthodox practices the company employed abroad, analyzes whether those practices were unethical given their ubiquity at the time, and explains why the Defense Industry Initiative of 1986 was pivotal to leveling the competitive playing field. It also explores how CEO Norman Augustine leveraged Scott Adams' "Dilbert" character through a mandatory board game called "The Ethics Challenge" to embed ethical values across the organization and rehabilitate Lockheed Martin's global reputation.
- Introduction: Overview of Lockheed Martin's history and paper scope
- Unorthodox Strategies in the Mid-20th Century: Bribery, middlemen, and overseas sales tactics
- If Everyone Plays by Shady Rules, Is It Still Unethical?: Ethical analysis of industry-wide corrupt practices
- The Defense Industry Initiative and Lockheed Martin's Ethics Program: How the 1986 DII reshaped corporate ethics standards
- Norman Augustine, Dilbert, and Turning the Corner on Ethics: Augustine's board game initiative and culture change
- Conclusion: Synthesis of Lockheed Martin's ethical transformation
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What makes this paper effective
- The paper uses a clear chronological structure that traces Lockheed Martin's ethical failures and eventual reforms in logical sequence, making the argument easy to follow.
- Direct quotations from Terris (2013) and Bonime-Blanc (2011) are integrated smoothly to support each claim with authoritative evidence rather than assertion alone.
- The paper engages a genuine ethical question — whether it is wrong to follow universally shady rules — and answers it with principled reasoning rather than simply condemning the company.
Key academic technique demonstrated
The paper demonstrates effective use of contextual ethical analysis: rather than judging mid-20th century practices solely by modern standards, the author first establishes the legal and cultural context of the era, then argues that universality of a practice does not confer ethical legitimacy. This nuanced approach strengthens the argument and reflects graduate-level critical thinking.
Structure breakdown
The paper opens with a framing introduction that previews all major sections. It then moves through four substantive sections — historical practices, the ethics-of-ubiquity question, the DII's structural importance, and Augustine's culture-change initiative — before closing with a tight conclusion that synthesizes the findings. Each section addresses a distinct sub-question, giving the paper a cohesive essay-style structure built on targeted source integration.
Introduction
"Do What's Right." — Lockheed Martin Corporate Values, 2022
Founded on August 16, 1912 by Glenn L. Martin (Our history, 2022), the entity that would become Lockheed Martin is currently a leading aerospace company headquartered in Bethesda, Maryland, which employs approximately 114,000 people at more than 370 facilities in the United States and around the world (About us, 2022). Although the company enjoys positive global brand recognition today, Lockheed Martin experienced significant fallout as a result of its sales strategies beginning in the 1950s that adversely affected its reputation.
The purpose of this paper is to describe some of the unorthodox strategies used by Lockheed Martin during the 1950s and 1960s and to analyze whether those strategies were ethical given their ubiquity at the time. In addition, the paper examines why the Defense Industry Initiative was important to the eventual success of Lockheed Martin's ethics program and discusses Norman Augustine's and Dilbert's contributions in helping the company turn the corner on ethics. A summary of key findings is presented in the conclusion.
References
About us. (2022). Lockheed Martin. Retrieved from https://www.lockheedmartin.com/en-us/who-we-are.html
Bonime-Blanc, A. (2011). The Defense Industry Initiative: From business conduct program innovator to industry standard? In S. P. Sethi (Ed.), Globalization and self-regulation. Palgrave Macmillan.
Meisler, A. (2004). Doing right and doing well. Workforce Management, 83(3), 50–51.
Our history. (2022). Lockheed Martin. Retrieved from https://www.lockheedmartin.com/en-us/news/features/history.html
Terris, D. (2013). Ethics at work: Creating virtue at an American corporation. Brandeis University Press.
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