Corporate Compliance Report: Boeing
Established by William Boeing in 1916, Boeing is the world’s largest aerospace technology company with business segments in commercial airplanes, defense and space and communications. “Headquartered in Chicago, Boeing employs more than 150,000 people across the United States and in 70 countries, with major operations in the Puget Sound area of Washington State, southern California and St. Louis” (Boeing, 2008, p. 27). The company’s total revenue in 2006 exceeded $61.5 billion.
Boeing finds itself under strict regulations in multiple areas including marketing, political, environmental, legal and financial. This Compliance Report will examine Boeing’s current situation internal controls, opportunities and issues with those controls, and recommend a solution to minimize enterprise risk. Specifically, this paper will concentrate on Corporate Governance in the organization, risk management, and effective internal controls in managing enterprise risk.
Situation Analysis
Issue and Opportunity Identification
In response to federal mandates, as well the desire to self-police, Boeing introduced its Corporate Governance Principles. “The Board and the corporate officers recognize that the long-term interests of the company are advanced when they are responsive to the concerns of communities, customers, employees, public officials, shareholders and suppliers” (Boeing, 2008, p. 1). The Board expects all employees to act with the highest ethical standards. The company will disclose any breach of the company’s ethical code. “Boeings Board of Directors has adopted a Code of Ethical Business conduct to focus the Board and each director on areas of ethical risk, provide guidance to help them continue to ...