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Boeing strengthens, enhances ethics program.


In November, NDIA NDIA National Defense Industrial Association
NDIA New Doha International Airport (Qatar) 
 published its newly approved code of ethics Code of Ethics can refer to:
  • Ethical code, a code of professional responsibility, noting what behaviors are "ethical".
  • Code of Ethics (band), a 90's Christian New Wave/Pop band
. One example of a corporation that has taken a comprehensive look at its entire ethics program is the Boeing Company.

Boeing has strengthened and enhanced its ethics program, particularly as to hiring existing or former government employees.

In 2003, Boeing retained former Sen. Warren Rudman Warren Bruce Rudman (born May 18, 1930 in Boston, Massachusetts) was an American Senator from New Hampshire. He was elected as a Republican in 1980 and re-elected in 1986, and was known as a pragmatic centrist, to such an extent that President Clinton approached him in 1994 about  to review its procedures for handling sensitive competitor information, as well as the overall structure of its ethics programs. The Druyun matter prompted Boeing to return to Rudman to independently review procedures and practices covering recruitment, hiring and assignment of current and former government employees. The laws applicable included the Procurement Integrity Act and those federal, civil and criminal laws that govern recruitment, employment negotiations and post-employment conduct of government officials and prospective employers.

Boeing acted on all of Rudman's recommendations. The result was not broad new procedures, because the existing written procedures were essentially sound. Rather, enhancements were made to promote consistent action on written policies. In particular, to promote compliance with its policies, Boeing modified its organizational structure This article has no lead section.

To comply with Wikipedia's lead section guidelines, one should be written.
, process management and oversight mechanisms.

Before these assessments, Boeing's ethics organization was more decentralized de·cen·tral·ize  
v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es

v.tr.
1. To distribute the administrative functions or powers of (a central authority) among several local authorities.
, with 40 part-time ethics advisors who provided valuable service, but had other duties as well. Today, a centralized function with over 100 full-time ethics advisors who are no longer allocated or budgeted to individual business units, but rather, belong to Boeing's centralized Office of Internal Governance, with cognizance The power, authority, and ability of a judge to determine a particular legal matter. A judge's decision to take note of or deal with a cause.

That which is cognizable to a judge is within the scope of his or her jurisdiction.
 over import-export controls, government ethics, internal audits, and compliance. The head of this office reports directly to Harry Stonecipher Harry C. Stonecipher (born May 16, 1936 in Robbins, Tennessee) is the former President and Chief Executive of American aerospace giant Boeing. He submitted his resignation upon request of the Boeing Board of Directors on March 6, 2005, due to an improper relationship with a Boeing , the chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . This is consistent with NDIA code provisions, which place direct responsibility for ethics with the chief executive officer.

Boeing also strengthened its recruiting and hiring process. For instance, preliminary conflict of interest (COI) reviews of government employees now must occur before the interview process even begins. For every hire--including senior executives--employment applications and COI questionnaires are required in advance to trigger these reviews. Screening of COI questionnaires has been strengthened significantly and now covers family members as well.

Any employment application or questionnaire raising a COI issue immediately halts the process until the prospective employee presents a disqualification notice, which must be on file before the process can resume. Also, both an applicant and the hiring manager must sign the COI review, thereby acknowledging that they had it, read it and accept its requirements. Boeing's hiring manager also must certify that no prior employment discussions have occurred.

Boeing's law department addresses all disqualification issues. No offer letter can be issued without a complete and independent legal COI review by the law department.

These policies also apply to more casual communications where no conversations, emails or other innocent messages--such as "I'm going to be leaving government; any thoughts you may have would be very much appreciated"--can go forward on any basis, informal or otherwise, without following clear, enhanced procedures.

Finally, Boeing examined its oversight mechanisms, particularly its training and monitoring systems. A company-wide effort highlighted awareness of the procedures. Training now is mandatory for all Boeing hiring officials, and every new employee receives a mandatory ethics briefing and must sign a statement that they have read and understood Boeing's code of conduct. Record keeping and data monitoring now are more robust, particularly with pre-hire records. Boeing also has increased audits of its COI review procedures.

Another significant monitoring enhancement applies to Boeing employees previously with the government who are transferred internally. To track these former government employees, their files are flagged by the human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees.  department, which in turn triggers a mandatory, separate COI review. These employees now have a "G" indicator on their badge. Additionally, all new hires, for three years, now have an "N" on their badges for the requisite three-year period.

All of these procedures target isolated individuals in organizations who place personal ambition above ethical values. Boeing has taken some significant strides not only in heightening the overall awareness of potential COI's and government employees, as well as compliance with the law throughout the company, but also in underscoring, to its workforce, the expected standards of conduct.

NDIA members can find the Rudman report at: http://www.boeing.com/news/releases/2004/q1/nr_040309a.html

Boeing's hiring policies can be found at: http://www.boeing.com/companyoffices/aboutus/ethics/epolicy.htm

Joe Reeder and Dave Hickey For the football player of same name, see .

Dave Hickey is one of the best known American art and cultural critics practising today. He has written for many major American publications including Rolling Stone, Art News, Art in America,
 are attorneys at the Greenberg Traurig Greenberg Traurig LLP is an international law firm with approximately 1,700 attorneys and governmental professionals in 29 locations in the United States, Europe and Asia. Its presence in Europe is supplemented by strategic alliances with Olswang (offices in London, United Kingdom  law firm.

NDIA LEADERSHIP

Chairman of the Board

Thomas M. Culligan Executive Vice President for Business Development, Raytheon

Vice Chairman of the Board

Tofie M. Owen Jr. Senior Vice President for Corporate Development, SAIC SAIC - http://saic.com.  

Senior Staff

Lawrence P. Farrell Jr., Lt. Gen., USAF (Ret.) President, Chief Executive Officer, and Publisher

Barry D. Bates Bates   , Katherine Lee 1859-1929.

American educator and writer best known for her poem "America the Beautiful," written in 1893 and revised in 1904 and 1911.
, Maj. Gen., USA (Ret.) Vice President, Operations

James E. McInerney Jr., Maj. Gen., USAF (Ret.) Vice President, Membership & Chapters

Peter M. Steffes Vice President. Government Policy

Bronislaw P. Prokuski Jr., COI., USAF (Ret.) Vice President, Business Operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets  Secretary/Treasurer

Dino Pignotti Vice President, Advertising

Paul Greenberg, Maj. Gen., USA (Ret.) Vice President Emeritus

Affiliates

David Chesebrough AFEI AFEI Association For Enterprise Integration  President

Frederick L. Lewis, Rear Adm., USN (Ret.) NTSA NTSA National Training Systems Association
NTSA National Tuberous Sclerosis Association
NTSA National Technical Services Association
NTSA National Training and Simulation Association
NTSA National Traffic Safety Administration
 President

Carolyn Becraft Women in Defense President

Paul Greenberg, Maj. Gen., USA (Ret.) Executive Director Precision Strike Association

William R. Usher, Maj. Gen., USAF (Ret.) President, National Correlation Working Group
COPYRIGHT 2005 National Defense Industrial Association
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Title Annotation:Ethics Corner
Author:Hickey, Dave
Publication:National Defense
Geographic Code:1USA
Date:Feb 1, 2005
Words:876
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