Boeing culture Archives - Corruption, Crime & Compliance

26 Nov, 2021

Boeing’s Board Governance Failures and the 737 MAX Safety Scandal (Part III of IV)

In its decision, the Chancery Court methodically analyzed the weaknesses in Boeing’s board processes and its fundamental failure to meet basic Caremark standards in tackling airplane safety issues, particularly after the Lion Air crash in 2018. First, the Board did not implement or prioritize safety oversight at the “highest level of the corporate pyramid.” None of Boeing’s Board committees were specifically assigned responsibility for overseeing...

General

24 Nov, 2021

The Delaware Court’s Decision Highlights Boeing’s Defective Corporate Culture and Board Governance Failures (Part II of IV)

When considered in light of the Chancery Court’s decision, DOJ’s essential findings in its Boeing investigation are problematic at best. The Chancery Court’s decision outlines how Boeing’s culture of safety deteriorated into a culture of cost-cutting and profits, while under supervision of a board with star-studded credentials. The Delaware Court’s decision provides a perfect example of how weak corporate governance can have a direct and...

General

29 May, 2020

A Window into Boeing’s Defective Culture (Part III of III)

Boeing is still under investigation. A grand jury is investigating potential safety and obstructions allegations. Congressional investigations are continuing. Civil litigation surrounding the 737 Max are continuing. Boeing’s long path out of this nightmare appears to be rocky and filled with continuing risks, financial harm and reputational risks. In reviewing the wreckage surrounding Boeing’s culture and safety performance, public disclosure of over 100 pages of...

General

27 May, 2020

The Boeing Scandal and the Demise of a Corporate Culture (Part I of III)

When a company suffers from serious misconduct, the source of such a failure usually lies in its corporate culture. I know this theory sounds relatively obvious, but bear with me here. The CEO and senior management and the corporate board are responsible for creating, oversight and monitoring of a company’s culture. Corporate boards and senior management work together, communicate regularly and should set an example. ...

Podcasts

24 May, 2020

Episode 143 — The Boeing Safety Scandal and the Demise of Boeing’s Corporate Culture

Boeing Airlines was the leader in safety and financial success. Unfortunately, Boeing has suffered a significant fall from grace as a result of its 737 Max safety record and two devastating crashes in Indonesia and Ethiopia. The Boeing safety scandal has had a devastating impact on Boeing’s performance and uncovered a corporate culture that has been obsessed with financial performance to the detriment of safety...