Impact of Unethical Behaviour on Boeing Business

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Added on  2023/01/13

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This report analyzes the impact of unethical behavior on the reputation, revenue, stakeholders, and customers of Boeing business. It provides recommendations for the company to overcome this ethical issue.
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·EXECUTIVE SUMMERY
This report has conduct report on Boeing business who are selling Aircraft to the many
Airline companies in the industry their customers are South-west Airlines, Air Canada and
American Airlines. This report has analysis case study of this company and identify the impact
of Unethical behaviour on their business.
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Table of Contents
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................4
Main body .......................................................................................................................................4
1) Impact of unethical behaviour on company's reputation...................................................4
2) Unethical behaviour impact on revenue............................................................................5
3)Impact of unethical behaviour on the stakeholders.............................................................6
4) Unethical behaviour impact on customers of the Boeing business...................................7
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................9
REFERENCES..............................................................................................................................10
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·INTRODUCTION
Unethical behaviours in the business is the situations where moral conflicts arise and must
be addressed. Unethical issues arise when given activities, decision and scenarios creates a
conflict within company. Both the business and individuals are involved in the conflicts since
any of their activities might be put to question from an ethical standpoint. Individuals are subject
to these issues in their relationships with other individuals or in their relationships with
organizations and same goes for organizations.
This is an case study of Boeing business , they are airways company who manufacture
aircraft for the Airways company and their customers are South-west Airlines, Air Canada and
American Airlines . In 2018 their one of the aircraft 737 Max air flight creased into the sea after
the take off. In this incident 189 people die who were travelling in that aircraft (Alzghoul and
et.al., 2018). And their one more aircraft Ethiopian airlines flight creased in 2019. both the
accidents were blamed on the software issues and sensor specially but executive chairmen deny
accepting that it was because of saws in the software. Apart from this also concerned about the
airspeed issues and most recently a component of the wings was found to be susceptible to
fractures. This impact on Airline companies and create scarcity in customers mind.
Aim
·Main aim of this chase study is to analyse the impact of unethical behaviour on Boeing
reputation and company should continue to operate take this (Arif and et.al., 2019).
·This analysis is the impact of unethical behaviour on public confidence.
· The aim of this report is to analyses impact of unethical behaviour on companies share prices.
· In the end of this report will cover impact of unethical behaviour on this industry where this
company is operating their business.
·Main body
This study has cover the impact of unethical behaviour on the reputation of the Being
business and also cover the impact of unethical behaviour on the companies revenue. It also has
analysis how unethical behaviour has impact on the stakeholder and customers of the Boing
business.
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·1) Impact of unethical behaviour on company's reputation
Unethical behaviour from the Boeing business has huge impact on the company's reputation
in the market because this incident affect on the travellers mind, and they are fear to travel from
the Aircraft made by Boeing company. (Carmona-Osorio Ángel-Gallego, S. and Arias-Pérez.,
2017). This news spread amongst the people so fast and now people doest wanted to travel by
these companies flight. Boeing company give more importance to the companies profitability
and this was unethical behaviour from them. Business cannot be successful in the market if they
are caring about their profit more than shifty for their customers. Customers loyalty can be
gained through the care about their shifty and provide them facilities which can give them
satisfaction, but they do not consider shifty first and does not add shifty features in their aircraft
Boeing 337 Max. They do not care about the customers shifty and this affect not only on their
business but it also affect on the reputation in the market (Chua and Ng., 2017).Airline
companies deny to order new aircraft for the Boeing Business because of their unethical
behaviour. They need to provide shifty facility to their customers, so they book some of the
flight tickets in the Ait ways companies, after this incident Boeing company have lost their
reputation among the whole airline industry, companies who was purchasing Aircraft from
Boeing business , started approaching other companies to by new Aircraft.. In both the
incidents more than 256 people died which affect the reputation of these airways in the market.
Airway companies who was regularly buying aircraft from Boeing business stop taking
Aircraft fro them which totally affect on the company's profitability. It is important for this
company to apologize their mistake and give compensation to people who have lost their lives in
both the accident, so they can at least get hope, and they can again start their business. They
should look for the better facilities and conceder shifty for the travellers, so they can gain
customer loyalty and make their reputation again in the market.
l2) Unethical behaviour impact on revenue
Unethical behaviour has huge impact on the revenue of the Boeing business because
before they have considered profit more than their passengers shifty and their security in their
Aircraft, which result an accident. Customers are most valuable asset of any business without
providing shifty to them business cannot grow (Guan, Xie and Huan., 2018). They were selling
their aircraft to the many airline companies which now deny taking aircraft from them Boeing
business because their aircraft are not safe for the customers which affect on their selling, and
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they lose their profitability in the business. Airway companies started taking aircraft from the
other companies because it was affecting their own reputation in the market and people do not
wanted to travel with these companies' aircraft. They should look for the shifty features in their
aircraft more than the profitability in the business that time. They Boeing 737 max is the fasted
selling aircraft in this companies whole history most of the aircraft in the air industry are from
Boeing business. 2 accidents in two years make this companies reputation down and this affect
on the company's profitability in the market. Their sales goes down and this company suffer
from the losses, Boeing company administrate has temporarily banned the jet and now they are
plaining for the up-gradation of software which will be finished by the end of the summers and it
is estimated that aircraft that this companies aircraft will be come back in the operation before
the end of 2019. up-gradation of the software will cost high and this will also affect on their
profitability (Huang and Wang., 2019). 1 year gap will affect on their aircraft which are already
makes by the company till that they have to maintain those aircraft and give salaries to the
workers without making any profit which will affect their profitability.
l3)Impact of unethical behaviour on the stakeholders
Unethical behaviour from the Boeing business has also impact on their stakeholder because
investor of the company will not invest on this company because of their down reputation in the
market and it will also affect on their future business. Investors of this company will fear to
invest their money in this company because those incidents happened in last two years (Link and
Scott., 2019). This will be challenge for this company top find new investors and it is important
for them to have investors for their company because they will need money to overcome from
this situation. This will also impact on the employees who were working in Boeing business
they all will lose their jobs, and they will have to find new jobs. It will be challenging for this
company to start their business again because they will have to recruit new employees which
will take time, and they will also need money to recruit new employees. Boeing company have
to change their leaders and mangers in the company because they cannot work with the same
leaders and mangers. They are also responsible for the company's failure , they were responsible
to manger all the shifty and security features in the company, but they do not take care of this
main issue. This become the reason behind both the accidents so company will have to find new
leaders and mangers to run their business activities (Neubauer And et.al., 2018). It will be better
for the company to discontinue their business because it will be very difficult for them to
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overcome from this business. They should make their business exit strategy and pay their losses.
They cannot come back to this business because they will need support from the shareholders of
the company. Without them they cannot come back to the business. They should try to talk with
their shareholders to invest in their business and this is the last option they have to come back in
the business.
l4) Unethical behaviour impact on customers of the Boeing business
On the basis of Boeing business case study it will affect on the customers of this company
which are South-west Airlines, Air Canada and American Airlines. They all airlines are affected
by the both the incident and customers of those companies does not want to travel on the Boeing
737 aircraft (Šafránková and Šimonová., 2017). This affect on-third profitability and all the
airline deny taking aircraft's from the Boeing business. They are not providing swifty features
and their software and sensors have faults so those airline may can deny to purchase aircraft
from the Boeing business. Many people effect the both incidents and many people have lost
their lives on those incident so it will be hard for the people to travel and trust on the Boeing
737 aircraft. Customers have other option to travels with, so they will conceder other flights to
travels rather than travelling with the Boeing aircraft. Fear of the aircraft will affect on the
company's reputation among the customers, so they will deny to travel in this company's
aircraft . Boeing company should not allow their business to operate in this situation they should
try to find proper solution for this because people are not ready to travel with them and it is
difficult for them to overcome from this problem (Sánchez-Moral, Bontje and Musterd., 2018).
They should make some strategy to attract customers such as apologize their mistake with the
both customers of their aircraft and encourage them to motivate their customers. They should
make their aircraft more features and provide better salsify for the customers, so they can feel
Sharif to travel in their aircraft. They will also have top change their name of aircraft or change
their companies name to overcome from the customers fear.
·CONCLUSION
As per the report has been analysed case study of Boeing business who are one of the best
aircraft seller in whole airline industry but unethical behaviour affect on their business. This
report has been impact of unethical behaviour on the reputation of the Boeing business in the
airline industry. This report also has been briefly explained impact of unethical behaviour on
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revenue of this company (Chua and Ng., 2017). It also included impact of unethical behaviour
on the companies stakeholder and their action after this incident. It has been analysed impact on
the customers which are popular airline companies how they can react and it has been provided
recommendation that company should allow to operate their business on those situations. In the
end of this report has been provided recommendation and suggestion for the Boeing business
company, so they can overcome from this ethical issue and show their presence in this industry
again.
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·RECOMMENDATION
It is important for the company to stop operating their business in this situation, so they
can make new strategies to upgrade their aircraft. One of the main thing they should consider is
shifty and security of the people who will travel from their aircraft so customers can feel safe in
the aircraft and travel without and fear (Tang and et.al., 2017). It will be difficult Boeing
business to continue their business with the same name so they should use any other name of the
business otherwise customers can remember about those incident and deny to travels from their
aircraft. Other thing they should focus on their software up-gradation and sensors. It should be
properly upgrade and better then before. It will be necessary for the Boeing business to talk with
the airline companies and provide them their companies aircraft in less price so those companies
will ready to use their aircraft with the better shifty feature. Shareholders are the people who
invest money in the company and it will be important for the company to talk with their
shareholders, so they can ready to invest in their company. They should insure them about their
new features and call them to review those features, so they can convey to invest in this
company (Xingyong and et.al., 2017). This strategies can help this company to overcome from
this situation, and they can again gain competitive advantages in this industry with the safety and
security features. Main thing they should not foes on the profitability, and they should look for
their customers shifty and their security, so they can feel safe to travel in the Boeing business's
aircraft.
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·REFERENCES
Books and journal
Alzghoul, A. and et.al., 2018. Knowledge management, workplace climate, creativity and
performance. Journal of Workplace Learning.
Arif, M. and et.al., 2019, September. Knowledge Sharing Through Social Media and its Impact
on Student Creativity. In ECKM 2019 20th European Conference on Knowledge
Management 2 VOLS (p. 60). Academic Conferences and publishing limited.
Carmona-Osorio, C., Ángel-Gallego, S. and Arias-Pérez, J., 2017. Strategic orientation and
strategies to manage organisational knowledge and creativity. Academia Revista
Latinoamericana de Administración.
Chua, R. Y. and Ng, K. Y., 2017. Not just how much you know: Interactional effect of cultural
knowledge and metacognition on creativity in a global context. Management and
Organization Review.13(2). pp.281-300.
Guan, X. H., Xie, L. and Huan, T. C., 2018. Customer knowledge sharing, creativity and value
co-creation. International Journal of Contemporary Hospitality Management.
Huang, C. F. and Wang, K. C., 2019. Comparative Analysis of Different Creativity Tests for the
Prediction of Students’ Scientific Creativity. Creativity Research Journal.31(4). pp.443-
447.
Link, A. N. and Scott, J. T., 2019. Creativity-enhancing technological change in the production
of scientific knowledge. Economics of Innovation and New Technology. pp.1-12.
Neubauer, A. C. And et.al., 2018. The self–other knowledge asymmetry in cognitive
intelligence, emotional intelligence, and creativity. Heliyon.4(12). p.e01061.
Šafránková, J. M. and Šimonová, K., 2017. Gender Differences in Approach to Knowledge and
Creativity by University Students. International Journal of Contemporary
Management.2017(Numer 16 (1)). pp.127-143.
Sánchez-Moral, S., Bontje, M. and Musterd, S., 2018. Understanding knowledge and creativity-
based development in well-established cities and urban regions. International Journal of
Knowledge-Based Development.9(4). pp.361-385.
Tang, G. and et.al., 2017. High-performance work system and employee creativity. Personnel
Review.
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Xingyong, T. and et.al., 2017. Knowledge workers' intrinsic motivation, knowledge sharing
intention and creativity. Science Research Management. (10). p.13.
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