Impact of Unethical Behavior on Boeing's Reputation, Revenue, Shareholders, and Customers

This report analyzes the impact of unethical behavior on Boeing's reputation, revenue, shareholders, and customers. It discusses the incidents of Boeing 737 Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines and the measures taken by the company to address the issues. Recommendations are provided to improve the company's reputation and regain trust.

Academic and
professional skills

EXECUTIVE SUMMARY
It is essential for each and every company to conduct ethical practices because that will
help in boosting business successfully. Boeing Business conducted unethical practice due to
which Boeing 737 Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines flight get
crashed and various people get died. This will directly impact on their several aspects i.e.
revenue, reputation, customers and shareholders. But after realizing mistakes authority of
respective company take corrective measures and update system as well as software of all
aircraft.

Contents
EXECUTIVE SUMMARY.................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
ANALYSIS.....................................................................................................................................................5
Impact of unethical behaviour on Boeing’s reputation and whether the company should be allowed to
continue to operate.................................................................................................................................5
Impact of unethical behaviour on Boeing’s revenue and whether the company should be allowed to
continue to operate.................................................................................................................................6
Impact of unethical behaviour on Boeing’s shareholders and whether the company should be allowed
to continue to operate............................................................................................................................6
Impact of unethical behaviour on Boeing’s customers and whether the company should be allowed to
continue to operate.................................................................................................................................7
CONCLUSION...............................................................................................................................................8
RECOMMENDATION....................................................................................................................................8
REFRENCES................................................................................................................................................10

INTRODUCTION
Ethics is determined as term which denotes moral philosophy and that will include
recommendation, defending and systematizing concepts which are related to the right or wrong
practices (Beagon and Bowe, 2019)(Beard, Schweiger and Surendran, 2019). In context of
business ethics, it is considered as an effective policies and practices which help a company in
regulating its business operations and functions in successful manner. There are various aspects
which are considered in business ethics such as corporate governance, social responsibilities,
bribery, fiduciary responsibilities, insider trading and many others. A company can adopt
different types of business ethics like personal loyalties, official responsibility, technical
morality, legal responsibility, bribery and many more. For ever firm it is necessary to conduct
ethical business practices because if they not do so then may face several issues like decline in
sales, profit and many more.
This report is based on the case study of Boeing Business which is operating its business
operation in airlines industry. According to case in October 2018 there was 189 individuals death
in Boeing 737 Max Lion Air Flight at Indonesia. The main reason behind this is that respective
aircraft emergency nose was not working due to which it get crashed into sea after the landing of
13 minutes. Then in next year i.e. 2019, similar situation take place in which near about 157
people died in Boeing 737 Max Ethiopian Airlines flight when it is dived into countryside Addis
Ababa. In both incidents there is fault of company that their systems are not working properly
but authority of company not ready to accept their mistake (Bowe and Dowson, 2020). But after
investigation some strict action are taken and authority realize their mistakes as well as now they
are planning to update their whole aircraft systems. The main objective of preparing respective
report is to understand about how unethical behavior of a company impacted on its different
business related aspects i.e. reputation, revenue, shareholders and customers.

ANALYSIS
Impact of unethical behaviour on Boeing’s reputation and whether the company should be
allowed to continue to operate.
Unethical practices or behaviour is determined as actions that are conducted by a company
in illegal manner. In order to do unethical activities company employer or employees avoid or
break all rules, regulations or legislations which are developed by government (Cottrell, 2019).
The main aim behind conducting unethical activities is to earn more profits in less duration of
time. In the case of Boeing Business, their senior authority conducted unethical activities and
according to that they blame that in the incidents of Boeing 737 Max Lion Air Flight and Boeing
737 Max Ethiopian Airlines there is total fault of pilots because they didn’t able to handle system
properly.
But after investigation The Federal Aviation Administration found that there is an issue in
software, sensor and MACS (Manoeuvring Characteristics Augmentation System) as well as
they also banned aircrafts of respective company. After all these issues due to unethical
activities, reputation of Boeing Business get affected negatively which can be determined by
decrease in its sales, profitability ratio, footfall at airline and many more. This is generally take
place because all defaulted parts plays essential role in take off time of aircraft but due to
negligence of respective company numbers of people loss their life and family (Evans,
Henderson and Ashton-Hay, 2019). Due to such behavior of Boeing Business customers or
passengers feel cheated as well as they also feel that company’s main motivate is to earn profit
and for that they even not considered anyone’s life. But now respective airline is planning to
update their software as well as systems till the end of summer as they want to start their
operations before the end of 2019. By considering the efforts of company, they may get second
chance to continue their operations at marketplace because authorizes are understand their
mistakes as well as they are taking steps to solve their mistakes.

Impact of unethical behaviour on Boeing’s revenue and whether the company should be allowed
to continue to operate.
Revenue is determined as total amount of income that is generally generated by an
organization by selling of its products or services at the potential marketplace. This is also
determined as top line as it is started at the top of income statement or analysis. Along with this,
it is also determined as numbers that are generated by income before any types of expenses are
deducted from the statement (Guraya and Chen, S., 2019). It is essential for a company to always
conduct ethical practices because if they conduct unethical practices or activates then its outcome
will directly impacted on its revenue. This is so because unethical activities leads to decrease on
sales as goodwill as well as market value of company get decreased and trust of customers also
get lost. In respect of case of Boeing Business they are operating in airline industry and in that
industry customer prefer trusted firm because every person want to travel safe. Respective
company get engaged in unethical activities due to which two incident take place i.e. of Boeing
737 Max Lion Air Flight as well as Boeing 737 Max Ethiopian Airlines. Due to this trust of
customer get break and there is rapid decrease in sales of tickets which leads to decrease in
revenue of respective airline company.
In addition to this after conducting investigations The Federal Aviation Administration
temporarily banded Boeing Business due to which their business operations and functions get
hampered (Leal-Rodriguez and Albort-Morant, 2019). This situation also leads to decrease in the
revenue of respective company because they not able to operate business at the industry. But
after realizing their mistakes, respective company authorizes decide to update or improve all
systems and software till the end of summer because want to operate business again. So by
analyzing the efforts of Boeing Business authority it can be say that they must get chance to
continue their operations because they realize their mistakes as well as they are also taking
measure to resolve those mistakes.
Impact of unethical behaviour on Boeing’s shareholders and whether the company should be
allowed to continue to operate
For every company shareholder is necessary and it is necessary for management to develop
strategies by considering them. Shareholders are considered as individual or institutions that are

legally owned by one or more shares of the stock in any private or public corporation. These
people generally provide funding or financial supports to company so that staffs conduct their
work effectively and successful which lead to attainment of desire goal. A company gain
numbers of benefits from shareholders as they get proper funding as well as these people also
help by providing guidance. In the case of Boeing Business which is conducting its business
operations and functions at the airline industry and while conducting business they get engaged
in some unethical practices (Mahanal and et. al., 2019). Due to this situation respective company
market value, market shares and goodwill get decrease as well as shareholder also not want to
invest in company because company is not operating effectively. Along with this, no shareholder
wants to invest in any company which are engaged in any unethical activities because that will
also impact on their image and market value (Woods, Briedis and Perna, 2019). At respective
company shareholder feel cheated because in the starting authority are saying that their
machines, software and system are perfect and incidents of Boeing 737 Max Lion Air Flight as
well as Boeing 737 Max Ethiopian Airlines are take place due to fault of pilots. But after the
analysis and examination it is determined that both aircraft’s machines, system and software are
not working properly due to which incident take place. But at the end authorizes realize their
mistakes and update all the system and software so that in future no such incident occur. So it
Boeing Business can get next chance to conduct their business again because they realize their
mistakes. By this they able to rebuild trust of customer and shareholder which help them in
gaining high profitability ratio.
Impact of unethical behaviour on Boeing’s customers and whether the company should be
allowed to continue to operate
Customers are determined as person who receives services, goods, ideas or products that
are generally offer by seller, suppliers or vendor by financial transaction. In simple term, a
customer refers to a person who buy services and products which are offer from a specific shop.
Customer is of different types such as relationship buyer, price buyers, poker player buyers and
many more (Meissner and Shmatko, 2019). For every company it is essential that they must
considered customers perspective, need and demand while developing any decision related to
market, products or services. In respect of Boeing Business they are operating in airline industry
in which customer’s trust is very important because it help in enhancing sales and grow business.

This is so because in airline industry people prefer that company on which they trust more. But
respective company get engaged in some unethical activities which lead to accident of two
aircraft in which numbers of people loss their life i.e. Boeing 737 Max Lion Air Flight as well as
Boeing 737 Max Ethiopian Airlines (Roberts, 2019). Due to this customers trust get affect and
broke which lead to decrease in business but now authority realize their mistakes and improve it
by updating all system. So it can be say that respective company must get next chance to
continue their business at the respective airline industry.
CONCLUSION
By analysing above discussed point it can be summarise that for each and every company
it is necessary to do it all business operations and functions in ethical manner. This is so because
through that they able to conduct work properly by avoiding unethical practices. For this they
need to conduct several practices such as develop strategies, policies, rules and regulations
according to the guidelines provided by government. In addition to this it will also essential for
avoiding unethical practices which are conducted by a company in order to generate more and
more profit in less time duration. Moreover, if an organization conducts unethical practices then
their several business related aspects get affected such as revenue, reputations, customers and
shareholders. So it is essential for every company to develop proper strategies and action plan so
that each and every employees and employer follow all rules, regulations and policies in proper
as well as ethical manner.
RECOMMENDATION
By conduct evaluation of above mentioned situation of Boeing Business, it is determined
that their senior authority conducted unethical practices due to which its business operations and
functions get impacted negatively. Along with this, it also impacted on the several aspects which
are related to respective company such as revenue, customers, reputations and shareholders. So
there are some recommendations for Boeing Business that will help them in improving their
reputation in front of customers and shareholder as well as this also aid management in gaining
high revenue. Some of the main recommendations are given below:-

 It is necessary for Boeing Business authority and management to develop proper policies,
rules and regulations as well as it is also essential for them to create strategy so that each
and every staffs must follow it strictly.
 For respective company it is also important that their senior authority must apologies
with passengers and their family who get suffered at the time of incidents of Boeing 737
Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines. Along with this they must
also provide some compensation to passengers as that will help them in increasing
goodwill and rebuilding trust.
 Boeing Business authority also needs to hire experts or profession in order to check as
well as ensure that all software and system are working properly and there is not fault in
that. It is so because that will help them in rebuilding trust among the passengers,
investors and shareholders.
These are the main recommendations which are essential to be adopted by Boeing
Business in order to minimize impact of their unethical behavior and incidents of Boeing 737
Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines.

REFRENCES
Books and Journals
Beagon, U. and Bowe, B., 2019. Preliminary Findings of a phenomenographic research study
into academic conceptions of the term professional skills.
Beard, D., Schweiger, D. and Surendran, K., 2019. Integrating soft skills assessment through
university, college, and programmatic efforts at an AACSB accredited
institution. Journal of Information Systems Education. 19(2). p.11.
Bowe, D. and Dowson, P., 2020. International Experiences.
Cottrell, S., 2019. The study skills handbook. Macmillan International Higher Education.
Evans, S., Henderson, A. and Ashton-Hay, S., 2019. Defining the dynamic role of Australian
academic skills advisors. Higher Education Research & Development. 38(6). pp.1121-
1137.
Guraya, S. Y. and Chen, S., 2019. The impact and effectiveness of faculty development program
in fostering the faculty’s knowledge, skills, and professional competence: A systematic
review and meta-analysis. Saudi journal of biological sciences. 26(4). pp.688-697.
Leal-Rodriguez, A. L. and Albort-Morant, G., 2019. Promoting innovative experiential learning
practices to improve academic performance: Empirical evidence from a Spanish
Business School. Journal of Innovation & Knowledge. 4(2). pp.97-103.
Mahanal, S. and et. al., 2019. RICOSRE: A Learning Model to Develop Critical Thinking Skills
for Students with Different Academic Abilities. International Journal of
Instruction. 12(2). pp.417-434.
Meissner, D. and Shmatko, N., 2019. Integrating professional and academic knowledge: the link
between researchers skills and innovation culture. The Journal of Technology
Transfer. 44(4). pp.1273-1289.
Roberts, D. L., 2019. Mentoring in the academic library. College & research libraries
news. 47(2). pp.117-119.
Woods, D. R., Briedis, D. and Perna, A., 2019. Professional skills needed by our graduates.