Boeing Case Study
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Boeing Co. is the worlds leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined… Headquartered in Chicago, Boeing Co. employs more than 150,000 people across the United States and in 70 countries (About Boeing). During the 1990s and early 2000s, there were many discrimination related suits filed against Boeing Co. The dominate of these were filed by female employees with the allegations that Boeing Co. systematically paid and promoted women less than men. In this study, I will cover the details around Boeing Co. perceived failure to create an organizational culture which demands ethical values and equal treatment of its employees, and conclude with my opinion and recommendation.
In 1994, workers at 10 facilities of Boeing filed a case against the companys alleged discriminatory practices with respect to compensation. They alleged that the company paid them less than their male counterparts. The US Department of Labor and its Office of Federal Contract Compliance Programs started to investigate the complaint.
Boeing Co. began an internal investigating surrounding these allegations. The outcome of numerous studies concluded that there was a problem. One report in 1998 said “men are more likely to be hired into the high paying positions.” A statistical analysis completed the same year noted that the pay gap for entry level managers was three thousand, seven hundred, and forty one dollars (Jones/George). Despite the outcome of these reports, Boeing’s leadership did nothing with this information and continued to deny that any problem existed.
In 2000, a group of female employees working at Boeing filed a case against the company. The plaintiffs alleged discriminatory practices at Boeing Co. Boeing employees began to remove payroll planning documents about pay discrimination from the company’s files. They also denied access to payroll files to the courts citing attorney-client privilege. This continued until 2004, when Boeing was ordered to disclose there internal documentation. Boeing finally settled out of court for $72.5 million