New CEO cleans up Boeing

Essay by robdado2University, Master'sA+, April 2006

download word file, 2 pages 3.0

Downloaded 119 times


In the Business Week article "Cleaning up Boeing" we are introduced to W. James McNerney Jr. who is Boeing's CEO since July 5, 2005. McNerney, oversees the strategic direction of the Chicago-based, $54.8 billion aerospace company. With more than 153,000 employees, Boeing is our country's largest manufacturer of commercial jetliners and military aircraft. McNerney won respect for his integrity, ethical leadership and personal business style wherever he went. In this McNerney took the responsibility of the company from benefits of the composite technology being used on the 787 to the wake-up call to the chief executives.

McNerney, the former chairman and CEO of Minnesota's 3M Co., took the helm of Boeing last July several months after former chairman and CEO Harry Stonecipher resigned after admitting a romantic relationship with a subordinate. The Board actions were taken following an investigation by internal and external legal counsel of the facts and circumstances surrounding a personal relationship between Stonecipher and a female executive of the company who did not report directly to him.

The Board determined that his actions were inconsistent with Boeing's Code of Conduct. The Board concluded that the facts reflected poorly on Harry's judgment and would impair his ability to lead the company. "The resignation was in no way related to the company's operational performance or financial condition, both of which remain strong. However, the CEO must set the standard for unimpeachable professional and personal behavior, and the Board determined that this was the right and necessary decision under the circumstances" (Platt 2005)

The Board ordered an immediate and comprehensive investigation of the matter after Platt received information that was sent anonymously to him and to the company's legal and ethics leaders. The investigation determined the relationship was consensual and had no effect on the conduct of the company's...