Ethics and Airbus Case Summary Airbus being one of the two known global aircraft manufacturing companies has engaged in unethical practices. The airbus management had engaged in practices that were not ethical to a point they were caught with ethical lapses on taking bribes from customers. It has been discovered that the company has been cheating customers convincing them to purchase aircrafts from its company. This is where the competitor of Airbus Boeing gets into the market with full force.
It is imperative that we compete on the merits alone. Integrity is a core company value and in support of it, Boeing provides employees and other stakeholders with clear guidance and detailed procedures to ensure compliance with the U. Foreign Corrupt Practices Act and other global anti-corruption laws and regulations.
This guidance is clear that we must never sacrifice our ethical principles to win or keep business—that no business is worth it. Our anti-corruption program is organized into nine areas and includes extensive controls tested regularly to ensure effectiveness. Employees are encouraged to report concerns and potential issues.
Confidential and anonymous reporting methods are provided. Retaliation against reporting parties is strictly prohibited, and action is taken against violators of anti-retaliation policies.
The company also makes its employees aware of their federally protected whistleblower rights which are designed to protect employees against retaliation for reporting potential wrongdoing by a U.
Assessment results are used to make improvements to further strengthen the program and sustain effectiveness. Business Courtesies, Giving and Receiving Boeing employees are required to be vigilant in ensuring that any business courtesy is reasonable, lawful and fully justified under the circumstances, and does not suggest the appearance of impropriety.
Company policies and procedures strictly prohibit offering any courtesy that could be misinterpreted as an attempt to gain an improper business advantage, and include elevating thresholds of management approval.
Before any courtesy is offered, an employee must determine that it is lawful and appropriate and would not cause embarrassment to the company or recipient. Additionally, employees must follow strict guidelines when determining if an offered courtesy can be accepted.
Employees are prohibited from soliciting courtesies, or accepting any courtesies when a real or perceived attempt is being made to influence action by Boeing.
Employment Decisions Boeing policies and procedures require that all hiring decisions be made fairly, ethically and in accordance with all relevant laws and regulations. Additional precautions, including Law Department review, are taken for hiring decisions involving current or former non-U.
Financial Controls, and Books and Records The Boeing financial management system is designed to assure, among other things, that company resources are effectively and efficiently managed and that reporting requirements are satisfied with integrity and reliability and in compliance with all relevant laws, regulations and generally accepted practices and principles.
Specific to anti-corruption controls, all employees are required to maintain accurate financial records and appropriately document and obtain approval of costs and expenses. Employees may not approve expense reports for themselves or their peers. Use of company credit cards for non-business expenses is strictly prohibited.
Personal credit cards may not be used for business expenses, except in very limited circumstances. Company policy prohibits falsification of accounting or other business records.
Grants, Business Donations, Sponsorships, Memberships Boeing makes investments in communities where employees live and work through charitable grants, in-kind donations, sponsorships, volunteer time and memberships to various organizations in order to promote positive and sustainable change.
Boeing policy requires that all grants, business donations, sponsorships and memberships be made in an ethical manner and in accordance with all laws and regulations.
All requests for payments or donations to support an organization or project outside of the United States are reviewed by the Law Department.
International Consultants Boeing recognizes that good business practices include drawing on the expertise of outside consultants and professional service providers. To ensure those relationships comply with applicable laws, the company has detailed requirements for creating, maintaining and renewing consultant relationships.
Hiring, renewing or expanding the scope of work of any consultant requires multi-layer executive management approvals and review by the Law Department. Additionally, Boeing takes seriously its industrial participation commitments, and when warranted, engages service providers to help Boeing ensure it meets those commitments.
Boeing policy requires that proposed industrial participation service providers undergo the same degree of due diligence and approvals as described above. All such transactions are accompanied by comprehensive due diligence to examine rigorously the books, records, corporate filings, operations and compliance history of the candidates for the transactions.
Non-sale Agreements including Teaming Agreements Boeing policy sets out detailed procedures for review and approval of teaming agreements and other non-sales agreements with companies, including appropriate levels of due diligence to ensure compliance with the U. Foreign Corrupt Practices Act and other applicable anti-corruption laws.
Terms and conditions in those agreements must include warranties of compliance with all applicable anti-corruption laws.
Political Contributions Boeing maintains detailed requirements for all political activities inside and outside the United States. For activities outside the United States, Boeing policy prohibits company contributions to political candidates, political parties and party officials, and political advocacy groups.
This prohibition covers both monetary contributions and in-kind donations. Supplier Management Boeing contracts with suppliers around the world to provide products and services in support of its diverse business portfolio.
Company policies and procedures are designed to ensure that supplier relationships follow the highest standards of ethical business conduct.
Appropriate due diligence is conducted for potential suppliers. The terms and conditions in all supplier agreements require that suppliers provide assurance of compliance with all applicable anti-corruption laws, granting Boeing contractual rights in the event of a breach.CASE 2?
4 Ethics and Airbus One September, a fraud squad, led by Jean-Claude Van Espen, a Belgian magistrate, raided Airbus’s headquarters in Toulouse. Airbus Company benefited simply because Sabena increased its order and on the other hand, Sabena Company suffered due to unplanned purchase that led to the collapse of the company.
On the case Kuwaiti Kickbacks, Airbus Company suffered simply because Kuwait Airways Corporation did not honor the order that it had planned to place with the company.
1. In each of the cases who benefits and who suffers from the alleged ethical and legal lapses of Airbus? The case study shows that politics play a major role in ordering the aircrafts from the manufacturers.
In each of the cases described, who benefits and who suffers from the alleged ethical and legal lapses of Airbus? How should the public relations staff at Airbus respond to the articles appearing in The Economist, The Guardian, and Reuters News?
The Boeing Ethics Line () is staffed during U.S. business hours ( a.m. to p.m. Central time, Monday through Friday) and is available to Boeing employees and others inside and outside of the company. Competing Globally with Honesty, Integrity and Compliance.
Boeing’s anti-corruption program is organized into nine. The Airbus Ethics and Compliance Programme seeks to ensure that the company's business practices conform to applicable laws, regulations and ethical business principles, as well as developing a .