Summary of the case
Michael Sears and Darleen Druyun were fired due to unethical practices. The board of directors fired the two employees because they failed to promote ethical standards. Sears employed Druyun in 2002 at the Boeing Company. This happened when Druyun was working with the U.S. Air Force as an acquisition officer. Sears violated the ethics policy of the company. He also violated the Procurement Integrity Act. The Act does not allow a government employee to have a discussion about employment opportunities with suppliers when a contract review is in progress. Sears offered Druyun the position of a vice president, and he was to earn $250,000 annually. He was also to get $50,000 as the signing bonus. This process was done when Druyun reviewed a contract worth $21 billion between the company and the U.S. Air Force. The contract required Boeing to lease 100 Boeing 767 airborne refueling tankers. Druyun was also required to provide details about Airbus bid to get a contract for a military tanker. Druyun also urged the Congress politicians to give the tanker contract to Boeing. The contract was offered to Boeing without conducting a public hearing, and other bids were not solicited. Boeing benefited three times than any other normal contract for a commercial plane because the price for the contract was exaggerated. The Air Force was affected by the scandal, and the core values of the Air Force were violated. The discussion involving the employment was done between Sears, the daughter and son-in-law to Druyun, who was employed at Boeing. Condit, the Boeing chairman, was also involved in the process of hiring Druyun. Sears and Druyun were fired from Boeing Company. However, Druyun continued to work with the U.S. government. Druyun was jailed for nine months after pleading guilty. She was also confined for seven months, and was required to pay $5,000 as a fine. Sears was jailed for four months, and had to pay a $250,000 fine.
Boeing was also accused of accessing trade secrets of the Lockheed Martin Company. Larry Satchell, who was a former executive employee at Boeing, was accused because he obstructed justice and conspired in violating the procurement laws. He was also accused of conspiring to steal trade secrets of a competitor.
Boeing was also accused of manipulating its financial statements when merging with McDonnell Douglas. This happened during the leadership of Condit. The transaction was not transparent because the financial statements were manipulated to make Boeing appear to have good financial performance. Investors at McDonnell Douglas perceived that Boeing was attractive to venture into the business.
The ethical issue
The ethical issue in this case is that the management conspired to commit fraud. The company also manipulated its financial statements to attract investors at McDonnell Douglas.
Why this is an ethical issue
This is an ethical issue because the Procurement Integrity Act does not allow a government employee to discuss employment opportunities with suppliers when a contract review is in progress. In addition, a company should provide accurate financial statements. A company cannot access the trade secrets of another company without permission.
Who is affected and how
Sears and Druyun were affected because they were punished for committing the felony. The investors at McDonnell Douglas were affected because they relied on wrong information when making a decision to work with Boeing. Larry Satchell was also affected because he was fired for accessing the trade secrets of the Lockheed Martin Company.
Leadership issue that needs to be addressed
The leaders should be transparent when conducting all transactions of the company. All legal systems must be obeyed when conducting business.
Case 5: WFP
Summary of the case
The World Food Programme (WFP) was created in 1961 with the aim of eliminating hunger. The WFP promotes the United Nation’s aim of eradicating poverty. It also helps eliminate the need for food aid in the world. Food scarcity and the high cost of food are the major causes of hunger. The WFP has enough resources to respond to relief emergencies. The organization is shifting from giving food aid, and now it is focusing on distributing cash so that people can support the farmers in the local areas.
The WFP has established several initiatives. For example, in 2009, the organization started customizing the food rations. This imitative helps provide unique products to the people from different regions. People from different countries cannot have similar problems. Thus, providing a common product may not solve the problems facing the people from different countries.
The WFP also established another initiative to enrich the food that is donated to the people. This initiative helps the organization to provide nutritious food in small amounts. The organization also develops micronutrient powders to support children.
The organization also started the 1,000 Days Plus Program. This initiative supports children aged at least 1,000 days. The 1,000 days are considered the most critical days in the child’s development. Malnourishment during this age can cause major brain and physical damage to a child. In addition, mothers who were malnourished during the childhood age are likely to give birth to weak children. On the other hand, malnourished mothers have a high likelihood of dying during child delivery. The WFP started an initiative to empower the girl-child by providing 10% to 20% of the school fees.
The WFP has also established an initiative to feed people with terminal diseases. People affected by HIV/AIDS and TB have a high risk of death if they lack nutritious food. The WFP provides food to these people so that they can regain strength. People suffering from terminal diseases are assisted to do their normal duties. In this case, they can support their families and work normally.
The WFP experiences many challenges such as insecurity when distributing food. The employees are intimidated, harassed, and detained. The organization also experiences theft and some employees are killed or kidnapped. For example, there was an incident experienced in Pakistan during the year 2009 where a suicide bomber killed 15 WFP employees. The organization also provides food when natural disasters affect a country.
The organization applies financial transparency to ensure that the finances are safeguarded. The financial accounts are audited annually. The WFP has learnt that innovation is an important aspect when dealing with emergencies. The organization has learned that it must develop innovative strategies to solve each problem experienced. It has also learned that leaders should be committed to promoting sound financial performance. Lastly, the WFP has learned that free market systems are important in promoting food aid programs.
The ethical issue
The WFP has supported poor people through food aid. It has also conducted its activities with transparency.
Why this is an ethical issue
The WFP provides a good example about how an organization can be successful by embracing transparency. The WFP has practiced transparency in the financial management and all other management activities.
Who is affected and how
The people in need of food aid, as well as donors have been affected. The people in need of food aid get nutritious food while the money donated is properly used.
Leadership issue that needs to be addressed
There is no leadership issue that needs to be addressed.
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