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Boeing: How Low Can They Fly?

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  • Pages: 2
  • Word count: 431
  • Category: Contract

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1.Identify the stakeholders in this case

A. The shareholders because they invested their money into the production of the Boeing’s Company. B. The employees were next because there were some layoffs and cut backs.

The Chief Financial Officer of Boeing (Michael Sears) and the official in charge of Air Force contract acquisitions (Darleen Druyun) pled guilty to aiding and abetting acts affecting financial interest and acts affecting financial interest respectively. Sears offered Druyun a high-level position within Boeing. At the time of this exchange, Druyun was overseeing contract negotiations between the Air Force and Boeing regarding the modification of the Boeing aircraft for military use.

During the employment negotiations (including salary, compensation, and bonus) the two also discussed awarding the modification contract to Boeing. Upon Druyun’s retirement from the Air Force, she accepted a high-level position within Boeing; When questions arose about the connection between Druyun’s awarding the contract to Boeing and her receiving a position with them post-retirement, Sears failed to disclose that he had met with Druyun while she was still an employee with Boeing in charge of contract acquisitions. Sears subsequently pled guilty to a single count of the aiding and abetting charge; his sentence is pending.

2.What is the procurement integrity act? What are the ethical implications of the act? What is the relevance of this case?

The Procurement Integrity Act prohibits the release of source selection and contractor bid or proposal information. Also, a former employee who served in certain positions on a procurement action or contract in excess of $10 million is barred for one year from receiving compensation as an employee or consultant from that contractor. What are the ethical implications of the act? The ethical implications on the act are that the post-employment restrictions on receiving compensation are in addition to the post-employment restrictions. What is its relevance in this case? The relevance in this case is because of the employees leaving and has held certain positions in the company on the procurement action contract must abide by the Leaving Government Policy.

3. The cover-up of an unethical actions always seems worse than the crime. Do you agree or disagree?

I agree. I agree because when one covers-up an unethical action shows what kind of character one has built for them, it also shows what type of person you are or have become. And that causes others to want to question your every move. Unethical behavior is like having bad conduct and it can destroy you or maybe even the company you work for.

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