CEO Ethics and Behaviors
The United States Air Force
controls the skies. Whether flying over
the Middle East or in its own backyard, the aircraft deployed by the U.S. is
unmatched in air superiority and maneuverability. One of the key defense contractors
responsible for their success is Lockheed Martin. Holding the title as the largest defense
contractor in the world, Lockheed has designed, built, and fielded a number of
weapon systems used by nations all over the globe.
I spent 20 years on active duty
with the United States Air Force (USAF) and am now embedded with them as a
Lockheed Martin (LM) employee supporting the F-22 Raptor. As an Airman, I learned the importance of
core values, ethical principles, and teamwork.
One of the great rewards of working for Lockheed Martin are the values I
prided myself in while on active duty are now the same values espoused by
Lockheed Martin.
In the USAF, we were taught, Integrity First, Service Before Self, and
Excellence In All We Do. As a
Lockheed employee, my new (similar) values are Do What’s Right, Respect Others, and Perform With Excellence. Whether my business attire was USAF blue or
LM gray, ethics and excellence undergird everything we did. However, even a strong ethical culture cannot
eliminate all indiscretions. Therefore,
there must be a system that both rewards positive ethical behavior and punishes
individuals who violate the company’s ethical code of conduct.
The current CEO of Lockheed Martin,
Marillyn Hewson said, “Lockheed Martin has always been a company driven by its
values. While we are known for
breakthrough innovations and exceptional performance, we are defined by our
commitment to ethics and integrity” (Lockheed Martin, 2013). In Lockheed’s code of ethics, Hewson said,
“Being honest and ethical in all our dealings builds trust and secures our
future. Acting with integrity is the
responsibility of each Lockheed Martin employee, and it goes beyond simply
complying with laws, rules, and regulations that govern our business. It requires embracing our values in every
decision we make and every action we take” (Lockheed Martin, 2013).
Employees have quit, retired, and
been fired from Lockheed since their inception and short of an office party, a
luncheon, or some cubicle gossip, much else isn’t said. However, when an executive leader, the next
CEO is asked to resign, it gets plenty of attention. Christopher Kubasik, Lockheed’s chief
operating officer was slated to become CEO on January 1, 2013. However, he was asked to resign after the
company discovered he was having an inappropriate relationship with a
subordinate. In short, Kubasik, who is
married, was caught having an affair with a junior employee (Ratnam, 2012).
The Lockheed code of ethics states,
“All employees are responsible for adherence to the standards of conduct set
forth in this code.” More specifically,
the code has a section labeled: Avoid
Personal and Organizational Conflicts of Interest. Under the heading, it states, “You must avoid
situations in which your personal interests might conflict with, or appear to
conflict with the interest of Lockheed Martin.”
And for Kubasik, the real kicker was the following requirement: Examples
of How a Personal Conflict of Interest Could Occur: Having a close, personal relationship with a subordinate employee
(Lockheed Martin, 2013). Kubasik was
quoted as saying, “I regret that my conduct in this matter did not meet the
standards to which I have always held myself” (Ratnam, 2012).
In Chuck Gallagher’s Unethical Continuum, Kubasik slid right
past what’s good for the customer and the company, and camped out in the areas
of policy violation and unethical behavior.
So far as we know, there was nothing illegal about Kubasik’s actions,
but it most certainly proved unethical (Gallagher, 2013).
While Kubasik provides a virtual
buffet of water cooler gossip and unethical organizational behavior, his
replacement, Marillyn Hewson shows great ethical vision. One of the first initiatives of Hewson was
renewing Lockheed’s commitment to sustainable business practices.
In her message title, “Tomorrow
Matters: Building a Sustainable Future,” she said, “Sustainability encompasses
many activities that promote responsible growth, protects our environment, and
strengthens our workforce and our communities.
It means that we will continue to act with integrity in everything we
do, and we will take action to: ensure the safety and health of our employees,
develop a diverse and inclusive workforce, increase the environmental and
social benefits of our products, and make our operations greener, volunteer in
our communities, and support science and technology education” (Hewson, 2013).
Hewson stresses ethics and
integrity. She leaves no stone
unturned. She discusses the environment,
the people, the community, and the products.
One of the ways Hewson demonstrates Weinstein’s framework of ethics is
her motivation for community involvement and volunteerism. She recognizes, as Weinstein stated, “When
you make people feel better, it makes you feel better” (Weinstein, 2012).
As an employee of Lockheed Martin,
my hat is off to Ms. Hewson. Her ability
to step in and take the reigns of a company this size after the unethical fall
of her predecessor shows great courage, deep leadership, and a vision for people
and the product that isn’t easily attained.
Steve
References:
Gallagher, C. (2013). Business
Ethics Keynote Speaker: Chuck Gallagher Shares Straight Talk
about Ethics.
Retrieved from http://www.youtube.com/watch?v=gUJ00vNGCPE
Hewson, M. (2013). CEO &
President Marillyn Hewson Addresses 1Q Results. Retrieved from
http://www.lockheedmartin.com/us/employees/enr/0426-hewson.html
Lockheed Martin Corporation.
(2013). Code of Ethics. Retrieved from
http://www.lockheedmartin.com/us/who-we-are/ethics/code-of-ethics.html
Ratnam, G. Lockheed’s Incoming CEO
Kubasik Quits After Relationship. Bloomberg
Businessweek.
Retrieved from
http://businessweek.com/printer/articles/361862?type=bloomberg
Weinstein, B. (2012). Keynote
Speech Excerpts from The Ethics Guy. Retrieved from
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