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.
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