Business Ethics and Leadership: Harry Stonecipher's Impact at Boeing

This report provides a comprehensive analysis of Harry Stonecipher's leadership and its effects on business ethics at Boeing. It explores Stonecipher's personal ethical perspectives, decision-making abilities, and his influence on the company culture. The report examines his approach to ethical decision-making, including the application of nine ethical steps, and the significance of moral sensitivity, judgment, motivation, and character. It also covers interpersonal communication, ethical influence, and the impact of his policies on group ethical performance. Furthermore, the report discusses leadership and followership ethics, the ethical culture at Boeing, Stonecipher's contribution to reducing antisocial behavior, and his promotion of corporate social responsibility, including the instrumental theory of CSR. The analysis highlights the challenges and successes of Stonecipher's leadership in transforming Boeing's ethical landscape, offering insights into his strategies and their consequences.

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2A
Personal ethical perspectives
Harry’s character
In reference with the case study of ‘Harry Stonecipher-Boeing’, decision making
ability was greatly influenced by his personal attribute adopted and pursued at the same
time. Therefore, character portrayed by him was formed by exercising leadership qualities.
Harry believed in analysing weaker sections and getting rid of executives with a failure to
deliver business objective. This attribute made him analytical, responsive leading to quick
responses in non-objectified business techniques and also an experienced personality with
an overcoming ability of disastrous consequences. His decision making ability changed
the culture at Boeing where motive was to run it like a profitable business rather than it
being just an engineering firm. The reason was countered as effective responsive nature, as
he firmly believed in being responsive in returns for investors as money making step
(Grunberg & Moore, 2015).
Harry’s spirituality
Three aspects of Harry Stonecipher in connection with spiritual values which is a
quality of being anxious about human soul regardless of any physical or materialistic stuff
at workplace which influenced his decision making ability are:
i. He emphasized on sustainability where with all potential he believed in increasing market
capture which would even attract investors with a long term impact.
ii. He also promoted position (vocation) by going beyond learning and development and making
employees realise and identify with their development in passion and dedication for work.
iii. He also followed incorporation of values with decision making where a core value defines
priorities and commitment with company working in (Shrivastava, 2018).
Transformation in action
Three aspects of transformation in action as an evident are:
i. Envisioning the productivity community lead to transformation in action due to a forceful
pressure and push towards results. This push was considered by him as a great leadership
quality but resulted in break of ethical rules or laws embedded with.

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ii. Transcending fear was another aspect which made after merger situations for employee even
worst. They faced more challenges when they started getting treated as numbers and not as
a human which made them work with productivity pressure simultaneously.
iii. By disturbing the system, it laid a shocking impact on current employees. It resulted in
employee termination with appointing an internal intelligence working towards ethical
indulgence while neglecting unethical approach which made difficult to perform as more
pressure was laid on productivity.
Harry Stonecipher convinced every integral part to have a good thought of company with
a belief of it being a company with high integrity and values. He employed internal
governance which was answerable directly to him. Also, he tried to soothe government
relationship which tightened up ethical values under him (Drucker, 2016). His firm believe
in integrity and with highly captive awareness in regards to threat was pleasant and
awarding.
Ethical decision making and action
Effectiveness of nine steps applied to sound ethical decision making
Harry applied 9 steps to sound ethical in decision making at Boeing quite effectively
by working towards ethical issues and working upon it. He started his work with initially
gathering factual knowledge to know the cause and the problem. Then he very well
worked with it impact and consequences by which he formulated certain obligations
creating limits. Furthermore, he just laid importance towards productivity and 0 tolerance
level in case of any unethical move.
Significance of moral sensitivity, judgement, motivation and character in decision
making
Moral sensitivity is an ability to identify problem (ethical) and to understand what
consequences (ethical) could be faced related to decision made which makes decision
making ability more strong and courageous (Woof, 2016). Though, moral judgements
formulates opinions measured against some rationale outline of good which is definitely
important while decision making in order to be more practical and fair. Morale motivation
gives rise to decision with a motivational and leading impact and channelizing behaviour
of human resources towards task performance. Furthermore, moral character defines
stability in morale qualities which could be cherished and also at times is helpful while
decision making. Not morale sensitivity but definitely a mixture of morale judgement,
motivation and character is considered as major key factors seen in decision making of

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Harry Stonecipher. With a major culture change decision by him turned pages for Boeing
which resulted in fulfilment of learning principle ability related to judgements by being
fair, motivational and learning aspect by terminating non-productive source and character
fulfilment was made by him as a responsible attribute inbuilt in him. Sensitive approach
was hard to find in him as productivity was only target of his which made him treat people
as number and not as people (Barber, 2017).
Interpersonal communication at Boeing
Interpersonal communication is exchange of emotion and knowledge either through
verbal or non-verbal means. Whereby, an aspect of interpersonal communication in
reference with Boeing subject includes conflict management where he just meant to limit
negative aspect and increase positive influence to enhance learning and effective
performance. For example, after becoming CEO at Boeing he changed the ethical culture
requirement in a different way. He was more authoritative and blunt then someone who
promotes harmony with increase in work dedication and ethical values which just
concentrated towards performance and result to set good results. Another aspect related to
conflict management is effective listening, interest in what speaker trying to inform about.
For example, harry and his bluntness made every corner of office paced up with their
performance because he kind of dominated his responsibilities (John & Roberts, 2017).
Exercising ethical influence
Harry’s power influence over his staff
Harry Stonecipher changed whole scenario of ethical problems Boeing was going
through. He was trying to hold company at a high standard for which he exercised his
power by hiring a law firm to deeply analyse ethical failure and comes out with
responsible cause for ethical failure. He focused on integrity and high alert awareness
regarding threats (EUROPEAN RIVAL AIRBUS). He exercised his power and people
who were enjoying profits by unethical means were found guilty and punished
accordingly. He centralised leadership aspect and laid more influence and controlling
alternatives over 3 hierarchies in Boeing. Furthermore, he also considered to pay
considerations and rewards amongst team and hierarchies which included promotion of
integrity and not coping up with unethical behaviour. He also focused on human element
as a priority with caring leadership style (Boeing, 2019).

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2B
Improving group ethical performance
Harry’s improvement policies regarding group ethics
Steps taken by Harry to improve group ethical performance at Boeing are:
i. Honesty and straightforwardness made a force of managers to perform and he use to tell
straight that what they are lagging at.
ii. He then centralised leadership which also resulted in pay to those who perform. He
encouraged ethical values and behaviours by rewarding alliances amongst teams and
hierarchies also rewarding those who stand and follow Boeing’s value. By values it meant
to promote integrated values and neglecting offensive behaviours.
iii. He used to ask less technical aspect and more about focusing on humanitarian approaches
which was quick to go in establishing trust, faith and confidence.
By the above initiatives he was able to be salvage and brought back life (reputation) at
Boeing. But still his efforts lacked and there was still a room with a hope of
improvements. Hence, these measures could have been more approachable if there would
be more clear and strong content in terms of importance of ethical deportment and
behaviour (Chell, Spence, Perrini, & Harris, 2016).
Leadership and followership ethics
Harry’s ethical challenges of leadership
First example could refer to the condition within which Harry was appointed with the
position of CEO at Boeing. Earlier ethical conceptual understanding was bit dicey and
needed a room of improvement which as a challenge took time to develop understanding
within the workers at Boeing. Also his blunt attitude created an impression of dominance
where all employees and workers wanted an era with democracy and free exchange of
thoughts (Werhane, 2019).
Another example at Boeing that caused ethical challenges of leadership includes
establishment of way high standards to be fulfilled and failed in delivering strong and
clear message which he wanted to convey to develop importance of ethical working and
behaviour. Furthermore, Boeing lacked ethical value due to which Harry tried with his
reckless ethical value initiation steps to balance the current culture which did caused many
disruptions and it took time to settle the environment there (Johnson, 2017).

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Harry’s leadership at Boeing
Harry’s leadership at Boeing was demonstrating and changed scenarios at Boeing. It
was more work ethic oriented, pacing with work progress and generation of output. Yes, it
was transformational and changed ethical value at Boeing. It got upgraded in terms of
relationship building and generating output. Hence, it was a relational leadership style
which focused on idea of creating positive relationship within organisation to be more
effective. It could be said in this style as it needs courage to speak which Harry did
showed regardless how uncomfortable or resistant his employees at Boeing were (Gale,
2005).
Harry’s exemplary followership
A female employee (follower) at Boeing was the one who exposed the affair of Harry
and Ms Peabody. She was an alienated follower who by her action proved this principle of
being an exemplary follower. These types of followers often attempts to bring people
down by continuously questioning decision and abilities of leader because of which later
Harry resigned and took all blame on himself (Merle, 2005).
Building an ethical workplace
7.1 Ethical culture at Boeing
Ethical culture before Harry being CEO at Boeing caused failures where in 2003, it
was discovered that within the company there were some employees who let competitors
use company’s assets. Another scandal was done when there was made an illegal
employment of a former Air force procurement officer due to which CFO Michael Sears
received for month imprisonment. In this regard, Harry handled situation very well and
drew a dark line with the message that no single violation would be tolerated. He changed
ethical system and later even adopted and appointed internal governance to look after
ethical values and also track its non-fulfilment (Shenaq, 2015).
7.2 Harry’s contribution in reduction of antisocial behaviour
Harry reduced destructive behaviour by terminating employees who were the cause
for fraud at Boeing which resulted at great failure. It was came to the knowledge of Harry
where he founded that two of his employees were transferring company’s products which
lead to copyright issue which later resulted in huge cost to company. By breaching the
confidentiality related policies of the organisation enforced Harry to take a serious yet
corrective action so that in future no same cause is to be entertained with. Also, those who

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were not fruitful and gave 0 outputs were offered with resignation letters (Crane, Glozer,
Matten, & Spence, 2019).
Promoting Corporate Social Responsibility
8.1 Harry & his demonstrative CSR at boing
Boeing demonstrated CSR during the span of Harry as a CEO where, it got the hold
of it by knowing its importance and responsibility towards company, stakeholders and
public. He enforced everyone to work and generate output because no one likes to invest
into something which is not at all financially beneficial. He also focused on building
relationships to make future more secure at the time of crises and with much of his
experience and outlook towards society made his corporate social responsibility more
strong (Nolan, 2012).
8.2 Theory of CSR used
In the context of Boeing its CEO- Harry Stonecipher utilised instrumental theory of
CSR as it used it as an instrument for wealth creation and social activities with a motive to
achieve objective. It could be related as even Harry focused on investors who would only
find Boeing attractive if its output is great (Schipper & Silvius, 2017). Whereas,
significance of this theory includes:
i. Maximum value for shareholders in order to fulfil the criteria for evaluation of specified
corporate related social activities.
ii. Strategies for grasping competitive advantage where, it has made a competitive move through
social investments and performed better than competitors.
iii. Aiming at revenue and sales boost with enhancement of customer.
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