Moving Toward an Ethical Workplace

As you can see from your reading for the case assignment Lockheed Martin has a
very interesting history and this history has had an impact on where the company is
today with respect to its existing ethics program.
Case Assignment
After reading Chapter 2 of the text, please write a 4-5 page essay that addresses the
following:
Lockheed has an interesting history that seemed innocent enough up until around
the 1950s. You'll note on p. 56 of Terris’ book that the company began to engage in
some questionable sales strategies with other nations in an effort sell the F-104
Starfighter so as to recoup costs when their US sales strategy failed.

1. Describe some of the unorthodox strategies covered by Terris during this era that
   made Lockheed become "…a byword for the shady practices of American multinational corporations, and a major impetus for new legislation…".
2. On the issue of overseas bribes, Terris asks the questions, "Who was hurt by the
   [overseas bribes to secure sales of aircraft]? The competitors, of course, but what
   was unethical about beating out the competition that was playing by the same
   rules?” (p.59). What do you think about a situation where underhanded and back
   door deals are the way the game is played if everybody is on the same playing
   field? That is to say, if everybody is playing by the same shady rules, is it
   unethical to compete?
   In your reading you will note that defense contractors continued to find
   themselves in hot water well into the 1970s as a result of overpricing and
   additional charges of bribery. In the late 70s Lockheed established its first code of
   ethics and later the major defense contractors came to the table to level the
   playing field with the Defense Industry Initiative (DII), by agreeing on a set of
   ethical principles. This was an important turning point as was bringing Norman
   Augustine on board.
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   1/28/22, 6:25 PM Case - ETH301 Business Ethics (2022JAN24FT-1)
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3. Why was the DII so important to the eventual success of Lockheed Martin’s ethics
   program?
4. Discuss Norman Augustine's and Dilbert's contribution in helping Lockheed Martin
   turn the corner with its ethics program.