Boeing Ethical Issues

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Suhas Christy (1321721) Ethical issues in strategic management Strategic managers face a wide range of ethical issues such as conflict between goals of the enterprise and individual goals, the fundamental rights of individual stakeholders including stockholders, customers, employees, competitors and the general public. Stakeholders of the company have the right to receive accurate and timely information about the money that they have invested into the company. This is the basic right of every stakeholder and it is unethical to violate that right by the company. Those who understand the stakeholder perspective argue that the managers should always behave in an ethical manner by recognizing the fundamental rights of the stakeholders and not…show more content…
After Titanium metals already spent $100 million in order to expand its production capacity to fulfill the contract, Boeing asked for a renegotiation in the terms of the contract, asking for low prices and an end to minimum purchase agreements as major purchaser of Titanium, managers at Boeing probably thought they had the power to push this contract revision through, and investment by Titanium meant that they would be unlikely to walk away from the deal. Titanium promptly sued Boeing for breach of contract. The dispute was settled out of court and under a revised agreement Boeing agreed to pay monetary damages to Titanium metals and entered into an amended contract to purchase Titanium. Irrespective of the legality of this action, it was arguably unethical because it violated the right of suppliers to have buyers who deal with them in a fair and open…show more content…
Corruption: corruption can arise in a business context when managers pay bribes to gain access to lucrative business contracts. For example, it was alleged that Halliburton was part of a consortium that paid some $180 million in bribes to win a lucrative contract to build a natural gas plant in Nigeria. Corruption is clearly unethical because it violates a bundle of rights, including the rights of competitors to a level playing field when bidding for contracts and, when government officials act in the best interest of the local community or the nation and in not in response to corrupt payments that feather their own
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