Impact of Unethical Behavior on Boeing Business and Tourism Industry

This report analyzes the impact of unethical behavior on the reputation, public confidence, and share prices of Boeing business, as well as its effect on the tourism industry. Recommendations are provided to overcome these issues.

Academic and
professional skills

EXECUTIVE SUMMARY
This report has covered case study of the Boeing business which deals with the Aircraft
selling, and they are having huge reputation in the Global market. They were selling their
Aircraft to top Airline companies. One of their flight has been meet an accident which was
because of their unethical behavior. This report has been analyses the impact of unethical
behavior on their business and other industries like Travel and Tourism.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTROSUCTION ...........................................................................................................................4
ANAYLSIS .....................................................................................................................................4
CONCLUSION ...............................................................................................................................7
RECOMMDATION........................................................................................................................8
REFERANCESS..............................................................................................................................9

INTROSUCTION
An ethical behavior is the application of the moral principles in a given situations which
means to behave according to the moral standards set by the society winch people live. Ethical
behavior can be found in the work relationship and individual relationship and this concept can
also be applied on the corporation as entities.
This is a case study of Boeing travel who used to make Aircraft for the Airline
companies. Their of the Aircraft 737 Max is one of the fastest selling Aircraft Globally but in
October 2018 Boeing Lion Air Flight crashed into sea which took live of the 189 people,
similarly in 2019 one more incident happened with the Boeing 737 Max Ethiopian Air-flight in
which almost 157 people died. Both the incident blamed on the software installed in the Aircraft
called MACS. This affect on the travel and tourism industry as well (Dimitrova., 2018). Which
includes the increase in the travel anxiety. This effect the selling of online flight ticks and people
fear to go with the aircraft. Social media also affected and one of the online booking site Kayak
give option to the travelers to select their flight, or they can also avoid.
It is important for the Boeing business to have good reputation in the market which also
affect on the companies business. Reputation in the market shows the brand name of the
business. Before the incident happened with the Aircraft Boeing business was having huge
reputation in the airline industry and their aircraft 737 Max was the fastest selling Aircraft in
the airline industry.
Aim of this report is to analysis the impact of unethical behavior on the Boeing business
reputation, public Confidence, share price of the business and tourism industry and it will also
talk about company should continue their business or not.
ANAYLSIS
This is a case study of the Boeing business and their unethical behavior impact on their
business. Their mistakes in the sensors and old software took lives of the more than 346 people
in the two flight crash (Gonin, Palazzo and Hoffrage., 2012). They give importance to earn
profit more than shifty of the people through better shifty features and better software. This was
the main reason behind the those incidents and this affect on the travel and tourism industry.
Because of unethical behavior not only affect on the Boeing business but also effect the tours
and traveling industry. It is because when people take travel plan to the other country than their
main transposition is the Air flight.

 Impact of unethical behavior on the reputation of Boeing business.
Unethical behavior on the Boeing business has huge impact on their business. They give
importance to the profit more than the shifty features in their air-flight which took life of rte
many people and their reputation among the people and big airline companies who were
purchasing Aircraft but after this incident they started ignoring and people also 737 Max aircraft
top customers of the Boeing business are Air Canada, Southwester Airlines and American
Airlines etc. they were purchasing air crafts front the Boeing business but after this incident they
stop purchasing aircraft from this company. Their goodwill in the market which they make with
the long time get finished and their profitability in the business also fall down. Not online
airline industry but traveling industry also effect from the unethical behavior from the Boeing
business. People fear to take flight after the incident (Kaptein., 2019). It is very rare to have an
accident in the air-plane and 2 continuously incidents create a fear among the people and in the
Hospitality and tourism industry. They also give transportation with the travailing package but
people stop taking Travailing packages because of their fear. Some online booking sides give
option to the people to select the flights which shows how people are and whole traveling
industry is affected from this. This shows that how their reputation among the people and
traveling industry does down, and they started ignoring the Aircraft which are made by the
Boeing business. It is important for this company to apologize their mistake to the people and
give compensation to the family of the people who died in this incident, so they can gain
sympathy from the people. Company can again start their business and make reputation in the
market if they come up with the better technology and up-gradation in the Aircraft software. This
can decrease the fear of the people and not eminently, but they can boost their business with the
time and some good charity work which can help them to make good reputation in the Airline
companies and people both. Apologize is necessary from the company first before doing
anything in their business.
 Impact of unethical behavior on the public confidence.
Unethical behavior from the Boeing business impact the mostly on the public. Most of
the people who used to travel with the Flights listen to this news, and they started fear by
traveling from the aircraft. Not online with the Max 737 but people are scaring to travel with the
other Aircraft as well. This rise the question among the air industry that traveling from the
Aircraft is safe for the people or not. This affect the profitability of the airline companies in

worldwide. In the domestic traveling also people are scaring to take air-travel which cannot be
easy for the companies to give security to the people (Kashif, Zarkada and Ramayah., 2018).
This scare among the people are no letting people to take Air- transportation which is affecting
on the profitability of the industry. To overcome from this problem airline who were customers f
the Boeing business stop taking Aircraft from them because people are scared to travel with this
flight, so they started approaching other companies who are selling Aircraft which is affecting
the business of the Boeing company. People are expecting better security features from the
Aircraft companies, so they can ensure that nothing will happen to them if they will travel with
through the Aircraft. It is important for the Boeing business to implement new features in their
aircraft, so they can overcome from the fear but it is not the right time to again come in this
business because people have fear right now, and they are ignoring the traveling from the
aircraft. This time Boeing business should look for the up gradation on the Aircraft 737 Max and
implication new technology and new shifty features which can be used during the emergency,
and they can save the lives of the people. Otherwise, there is no option for them to overcome
from the fear of the people.
 Impact of Unethical behavior on the Boeing business shares.
Impact of the unethical behavior from the Boeing business also has on their market
shares. Before the incident their share was on their highest pick but after the 1 incident in 2018
its started going own and now they are on their lowest. Share of the Boeing business fall down
by the 40 % which is huge impact on their business. Its not possible for this company to again
recover those shares properly without having good investment on them but investors of this
company started withdrawing their money from their shares. Without having large investment on
this company they cannot come back on their normal business, it is important for them to find
investors to overcome from their crisis (Robertshaw and Asher., 2019). Investor have fear to
invest on this company because those incident creates negative impact on the investors mind,
when this incident happened 2nd time than investors started selling their shares and time reach
when company on their weakest point and still in 2020 their shares are on the lowest. Boeing
Max 737 was to fasted selling aircraft in the Airline industry but after the accident Airline
companies stop purchasing Aircraft from the Boeing business, and they started encouraging
other Aircraft companies which has the best technology and their safety features are well
maintained in the Aircraft. This make other companies to increase their hike and companies who

were not even close to the Boeing business, overtaking this company and recently their shares
are more higher than the Boeing business shares. This was because of the unethical behavior
from the Boeing business , they did not look for the shifty features because their first priority
was profit earning not shifty of the people who travel from the Max 737. they should find the
investors if they want to gain the competitive advantages and increase their market shares.
◦ Impact of unethical behavior on the tourism industry
Unethical behavior from the Boeing business unfortunately affect on the Hospitality and
traveling business as well because in this industry transportation is one of the major factor, and
they have to conclude both Domestic and in international Air transportation but after the incident
with the Boeing Max 737 people started scaring from the Air travel (Tarkiainen and et.al.,
2016). People do not wanted to travel with the flights because they were scaring, and they are not
sure about the shifty features. Some off the online booking sites such as Kayak now have
introduced a filter so that specific types of aircraft can be selected or people can also ignore or
avoid taking from the specific flights. This affect on the profitability for the Boeing business
because Airline companies doesn't want to buy Aircraft.
CONCLUSION
As per the report has been cover the case study of the Boeing business which conclude
the impact of unethical behavior on the company's reputation in the market. It has been explained
the affect o the companies reputation how other business partners reach on this incident. This
report has been also explained the impact of unethical behavior of the public. It has been
explained how public react on the Airline companies and how they were scaring to take traveling
from the Air-flights (Xiaoqin., 2017). It has been discussed the unethical behavior Boeing
business on their market shares. It has been properly explained how market shares of the
company fall down by the 40 present. In the end of this analysis section has been explained
impact on the travel and tourism industry and how their customers were reacting on the air
transportation and how they find a way to overcome.

RECOMMDATION
` Unethical behavior from the Boeing business effect the business , reputation and share
of the company. It is important for the company to have proper strategy to overcome from this
problem. Both incident from the Aircraft Boeing 737 took the lives of the more than 400
people. This also affect t on other industry's like tours and tourism because they are
interconnected with each other, and they this industry depends on the accommodation services of
the Airline company for the both international and Domestic tourism.
Here are three recommendation for the Boeing business to overcome from the unethical
problems-
1) – Market reputation of the Boeing business affect from their unethical behavior but t can
be fixed by apologize their mistake, and they should give compensation to the families of
the died people, so they can gain some sympathy from the people. Most importantly they
can help poor people by the charity which can also be good option to make good image
among the people and increase their reputation in the market.
2) - After this incident share prices of the company fall down so it is important for the
Boeing business to find the investors who can invest on their company otherwise it will
be hard for the to overcome from this problem. They can also decrease the prices of
their aircraft which can help them to take competitive advantages in the market.
3) Unethical behavior from the Boeing business affect on the Hospitality, tours and tourism
industry. It is important for Boeing business to implement changes in their aircraft and
implemented new security features in their aircraft so customers can overcome from
their fear, and they again started taking Air-flights from the Traveling agencies.

REFERANCESS
Books and journal
Dimitrova, S., 2018. Unethical labour practices in MNEs' business worldwide. Izvestia Journal
of the Union of Scientists-Varna. Economic Sciences Series.7(3). pp.231-242.
Gonin, M., Palazzo, G. and Hoffrage, U., 2012. Neither bad apple nor bad barrel: How the
societal context impacts unethical behavior in organizations. Business Ethics: A European
Review.21(1). pp.31-46.
Kaptein, M., 2019. The appearance standard: Criteria and remedies for when a mere appearance
of unethical behavior is morally unacceptable. Business Ethics: A European Review.28(1).
pp.99-111.
Kashif, M., Zarkada, A. and Ramayah, T., 2018. The impact of attitude, subjective norms, and
perceived behavioural control on managers’ intentions to behave ethically. Total Quality
Management & Business Excellence.29(5-6). pp.481-501.
Robertshaw, M. B. and Asher, A., 2019. Unethical numbers? A meta-analysis of library impact
studies (pre-print).
Tarkiainen, A. and et.al., 2016. Salesperson Role Stress and Unethical Behavior. In Marketing
Challenges in a Turbulent Business Environment(pp. 585-586). Springer, Cham.
Xiaoqin, L. I. U., 2017. The Impact of Supervisors' Unethical Leadership to Primary
Supervisors' Unethical Leadership: Based on Resource Drain Theory. Science of Science
and Management of S. & T..(1). p.16.