Abstract

The Boeing Company (Boeing) is the world’’s largest aerospace company. Towards the end of 2003, Boeing finds itself in the midst of a highly publicised scandal. The Justice Department, two investigative branches of the Defence Department, and the Senate Armed Services Committee have been investigating allegations that Boeing has acted improperly, in an effort to win two multibillion-dollar aerospace defence contracts. A second scandal, dating from 1998, involves the possession of 35,000 pages of competitor, Lockheed Martin’’s documents during the 1998 bidding for a military rocket-launch contract. The Pentagon has indefinitely suspended Boeing from bidding on future rocket contracts pending a review of its ethical practices. Lockheed Martin has sued Boeing over the alleged document theft. The CEO, Phil Condit has himself submitted his resignation. The case deals with the corporate governance problems at Boeing and how the company is coping with all the problems.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Boeing, Board problems, Corporate governance crisis, The Pentagon scandal, Condit, Boeing 767 tankers, Lockheed Martin, Scandal, 7E7, Jetlines programme