The Lockheed Incident and Corporate Crime in the Aerospace Industry

Essay by kidddynamteUniversity, Master'sB+, December 2004

download word file, 12 pages 2.5

Downloaded 45 times

The case of the Lockheed Incident, is one which deals with bribery and kickbacks between corporations to officials and political figures in return for contracts, a type of figurative "grease machine". The Lockheed Corporation, which is what this essay will concentrate on, was scrutinized during the 1970's for its "questionable practices" in going about getting aerospace contracts. They were seeking favor through financial inducements. 1 Their practices became public when the Northrup case broke, and the Subcommittee on Multinational Corporations began a huge investigation, which resulted in the arrests of the major players and downfall of the company. Another angle of what crime was committed may be that this corporation was not only corruption against foreign companies but to American ones as well. These contracts were diverted from companies with more superior products such as the McDonell Douglas Corporation, which affected the stockholders of the firm and the military capabilities with inferior planes, such as the Starfighter.

On the other front, the participants from foreign countries were charged with violations of the foreign exchange laws. President Carter signed a bill in 1977, which tried to stop corporate bribery, by giving a jail sentence and a fine to the company for those who were found guilty. This particular case was considered cresive or emergent, and was a crime by the corporation. Jack Northrup, and the Lockheed brothers began Lockheed in the early 20th century. They began it as a legitimate enterprise, but along the way competition put strain on legitimate means of making capital. Daniel Haughton the former chairman provided his stance, " If you are going to win it is necessary, especially in such a highly competitive business as selling planes."

This pattern of capital expropriation is a little different then some of the previous cases studied. In this...