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« Stand up and be counted | Main | Chicago Tribune features Bonnie Soodik, Boeing's top ethics officer »

The Cost of Corrupt Business

By Steve | May 18, 2006

Boeing's $615 million dollar settlement with the government was prominently featured in the news this week. Today, it even made it to the editorial page of the Chicago Tribune, where Boeing CEO Jim McNerny's speech to the Conference Board's Business Ethics Conference (which we organize) was dissected in an editorial titled "The cost of corrupt business."

The Tribune highlighted McNerny's analysis of the Boeing culture: "Too many people who thought something 'didn't feel right' failed to raise a red flag . . . They wanted to win a contract, they feared retaliation, they just didn't want to rock the boat, or they lacked the courage to speak up in a command and control culture."

McNerny's speech can't be captured in one quotation, which is why it's great that Boeing has made it available at www.Boeing.com. Boeing as a company and McNerny as a leader are clearly utililizing all the appropriate levers of management power and influence to create a culture of integrity.

And this cultural and behavioral change is the right goal, according to the Tribune. In a slam at the Department of Justice, they contrasted the deferred prosection agreement reached with Boeing to "the ill-fated Andersen prosecution," which only served to "kill the company and penalize thousands of innocent employees."

Maybe a little home town bias there, since Andersen was a Chicago icon. But they do grasp the central points of a good ethics program: change behavior, change culture, get rid of bad guys. Now if only it were as easily done as said.

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Climate Change: Tilting at Windmills - the rush on renewables
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Hewlett-Packard and ‘pretexting’ - A rose by any other name
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Invite Your Lawyers to the Corporate Responsibility Dance
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The Anti-CSR Lobby: House of Straw
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Making the Business Case for the Business Case
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Ethical Reporting and the Law
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Ethical Sourcing – Good News for Industry-wide Initiatives
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When Mars meets Venus
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Reputation Roulette
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Corporate America's Hidden Risks
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Win or Lose in Court
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