Strategic Management- Case study - Essay Example

As humans we sometimes believe that ours actions are natural behavior that can be expressed in any setting without consequences. This may be true in the civil society, but in the business world there are norms, behavioral standards, ethical and moral expectations, fiduciary obligations, and bylaws that must be followed to the letter in order for a business entity to run smoothly and in a professional matter. The higher the position a person holds within an organization, the higher the expectations are because the public places in these individuals their trust.

In the corporate world the chief executive officer position with the corporate hierarchy outside the board of director of a public company. This paper analyzes a scenario of a high level executive who had romantic affair with another manager inside the company he was suppose to lead. The setting of our analysis takes place at Boeing Corporation where Harry Stonececher its chief executive officer (CEO) and a board member of the corporation got involved in an unethical act by starting a romantic relationship with a subordinate.

His affair was discovered through unofficial information channel known as whistle blowing. A whistleblower is a person that revels to the general public or the authorities. Unethical or illegal activity within an organization (Schermerhorn, Hunt, Osborn, 2003). The situation was very awkward and let a bad taste in the minds of many stakeholders who did not take this news lightly. When something like this happens the general public gets ideas that bad things may be happing within the organization such as collusion, favorism, corruption, money laundering, human rights violations and cooking up the books scenarios such as the infamous Enron case (Kotler, 2002).

The bylaws of the corporate which are part of its corporance governance framework are against such type of behavior generally speaking. If such a things happens between two floor workers the course of action a supervisor should take is simply separating the workers between division and areas of work to prevent labor efficiencies from occurring as a result of unnecessary socialization. The case at hand takes the rules to another level because the Boeing situation involved executive laborers at the peak of the chain of command.

The fact that such individuals have so much power implies that there action affect all stakeholders thus social responsibility comes into play as an integral part of the equation. There are many stakeholders group whose company’s action are relevant and importance to them. Some of these stakeholder groups include lenders, customers, shareholders, suppliers, environmental, and vendors among others. A person that has an intimate affair with co-workers who is her subordinate is a person that is not trustworthy.

People in high managerial position have the power to make decisions of global implications. Lack of ethics is major business and people in the 21st century can not stand it anymore. It is time for the corporate world to shape up and begin to act in an ethical and passionate manner in order to gain back the consumer confidence in the business world intention for the well being of our race and planet. ReferencesKotler, P. (2002). Marketing Management (11th ed.). New Jersey: Prentice Hall. Schermern, J, Osborn, R.

, Hunt, O,. (2003). Organizational Behavior (8th ed.). New: York: John Wiley & Sons.