Tuesday, March 08, 2005

The Facelift

Harry Stonecipher has been ousted from his position of CEO and President of the Boeing Co. He was found to have violated the Boeing code of business conduct for being involved in a relationship with a female Company executive. While the Company can not attest to a conflict of interest resulting from the relationship, Harry, a staunch advocate of the code of conduct, exercised poor judgment in his decision and this reflects on his ability to lead. However, a spokesperson for Boeing readily admits that a consensual affair in and of itself is not a violation of the code. However, other problems came to light in the investigation, initiated by an anonymous tipster, which resulted in the forced removal. The female, presumably obliged to conduct herself accordingly to the same code, remains with the Company. No sexual harassment allegations are suggested.

Boeing has been the issue of scandal for the past two years. An ex- CFO and an ex military procurement officer have been sentenced to jail for a scheme designed to favor Boeing on defense contracts. A multi billion dollar contract with the Air force went down the tubes. Scandal upon scandal involving the giant military contractor, not all on Stonecipher's watch, has come to light. So, is the ouster of Harry truly attributable to the finding that he can not separate the operation of a business and leading a personal life? While policies prohibiting fraternization are often the norm in many companies, enforcement is the exception and not the rule and officers of the companies face no severe discipline. Boeing would rather not comment on the so called juicy tidbits unearthed in the investigation citing the need to keep Harry's life private. So why the public disclosure of the story? Could they not have asked for a resignation alluding to the customary health or devotion to family matters? What was the necessity of the public outing? Passing on a moral judgment concerning infidelity, is this a reason to force exile? Seems like it might be a most excellent way for the aerospace giant to save face.

Likewise, take the case of the Italian journalist, Giuliana Sgrena, kidnapped and held hostage by Iraqi insurgents only to be wounded by American forces after the Italians negotiated her release. Accounts surrounding the incident differ. The American military insist that the car conveying Sgrena disregarded warnings as the car approached a road block and the Americans were forced to use deadly force resulting in her being wounded and the fatal wounding of an Italian security agent. Sgrena contends that there were no warnings and that the Americans were purposely firing with the intention of killing her because of the negotiated release. After all she was told by her captors that the Americans would attempt to kill her. Sounds like the Stockholm Syndrome at its very worse. Whatever her motives, Americans once again become the fall guy. Obviously the GI's manning the roadblock were not faced with the mundane day in day out decisions faced by CEO's of big business. Now the Monday morning quarterbacks takeover possibly looking to save face.

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