The people who are affected by the actions of the company are all the stakeholders involved. Stakeholders is a any party that has interest in the company; in this case the stakeholders are the top management team at Boeing, the employees at Boeing, the government, the partnering companies and the customers.
The top management team is affected because they include the board of governance that is expected to make all the final and correct decisions. The government is affected because the company is involved in illegal and unlawful activities that hinder full exploitation of resources. The companies partnering with Boeing are affected because they get to be victims of unethical behaviour like manipulation of financial statements to make the company look better when it has several demerits in its production process. The employees are affected because they experience inequitable distribution of income and opportunities based on their gender and race, while the customers are affected because they get to lose faith in the production of the company. Chances are the clients may choose to shift to another product due to increased negative PR of Boeing.
The procurement integrity act is based on the premise of equality. A government employee who is involved in the procurement of contracts process is not allowed to personally interact with the companies that bid for the contracts. The employee is also not allowed to receive presents from the companies as well. At the same time the employee is discouraged from soliciting any gifts from the contract companies or disclosing any form of information to any party pertaining to the bid process.
The act is based on the premise that government contracts should be based on proper technical qualification and merit and fairness is vital. Obtaining of any sensitive information or favour affects the integrity of the bidding process and decreases the validity of the results.
The act is relevant in this case because it was violated by one Darleen Druyun; a former government officer who had an influencing position in the procurement of a project bid by Boeing. The then chief executive officer, one Mr. Michael Sears, had offered her a job at the company, and a very lucrative compensation package. In this case he was able to get sensitive information about the competing firms and adjusted the company’s position to be advantaged and was able to get the project. Boeing being a company that presents itself as being ethical it had to fire the CEO once there was a discovery of a breach of the procurement integrative act.
The cover up of any unethical crime is always termed as worse off than the act itself. This is because it shows that there is more than what meets the eye and at the same time it shows that the company does indeed condone unethical practices. A good example is when the CEO of the company, is found guilty of having extra-marital relations with an employees, he is asked to resign. At the same time he is awarded a 2million for his influence in the company. The cover up is meant to have a motive to show that the company does not appreciate what the person did.
The significance of the agreement is to act as a cover up so that the company can be said to be ethical. It is also to show the employees that they are expected to be ethical however the company is not ethical. It practices poor labour practices by discriminating against employees based on gender and race. The significance of the agreement is also to adhere to the ethical code that is expected to ensure that all moral and ethical codes. In this case there can be a document that ascertains that the company expects the employees to be ethical and once they break the code they will be dismissed on the basis of the agreement.