Cultural Change in Ethical Redemption: A Corporate Case Study

Abstract

Imbedded within a larger culture of defense contracting and an organizational culture that rewarded the blurring of ethical boundaries, Sundstrand Corpora tion found itself in a crisis situation: facing federal charges of fraud, falling company stock prices, a lawsuit initiated by stockholders, and a serious threat of debarment. This study describes the transformation that occurred at Sund strand which moved it from a culture of crisis to an organizational culture more ethical, more communicative, more financially healthy, and with a"rehabili tated" image.