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

ACADEMIC AND
PRFESSIONAL SKILLS

EXECUTIVE SUMMARY
After two consecutive crashes of Boeing 737 Max jets in Indonesia and then in Ethiopia led to
some many serious questions not just on the safety aspect but also on the ethical aspect. In this
report, the impact of the unethical aspects of the activities undertaken by management of Boeing
will be discussed and mapped thus presenting a proper analysis.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
ANALYSIS......................................................................................................................................4
Impact of unethical behaviour on Boeing’s reputation................................................................4
Impact of unethical behaviour on Boeing’s revenue...................................................................5
Impact of unethical behaviour on Boeing’s shareholders............................................................6
Impact of unethical behaviour on Boeing’s customers................................................................7
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Ethic refers to values and certain moral principle of people behaviour that defines the way it
performs various activities and function. Ethics helps people in identifying things which are right
and wrong that need to be followed by individual or not. If a person has good ethical behaviour
and values it will never harm others for its satisfaction and happiness. Therefore ethics and
values defined nature and behaviour of individual that is the way it interact with other peoples.
Boeing is an American company that is established to design, manufacture airplanes, rockets and
telecommunication equipments (James, 2017). It is known as second largest defence contractor
on the basis of revenue generated and have 153,027 employees that are provide various services
to its customers. This report is about a case of Boeing where most of the people lost their lives
because of unethical behaviour of company. Due to malfunctioning of Manoeuvring
characteristics Augmentation System two accidents happened first was on October 2018 that
killed approx 189 people and in March 2019 157 people had lost their life in Boeing 737 Max
Ethiopian. Thus, all such accidents has impact on company image and reduce confidence of
public in Boeing so such unethical behaviour has impacted on image an d reputation of company
(Banks, 2016). Boeing was one of the well know company in term of fast selling aircraft but due
to such accidents and loss of life client have lost their trust and its has loss its brand image and
reputation. The aim of the report is to explain about importance of ethical behaviour in gaining
customers satisfaction, loyalty and building strong brand image in the market.
ANALYSIS
The crashing of Boeing’s plane was a bgi question on the ethical compliance of the company
and it is necessary to evaluate the effect that this crash will have on the different aspects
associated with the company.
Impact of unethical behaviour on Boeing’s reputation
The crashing of the planes were due to the faulty MACS software systems being
implemented in the Boe4ing 737 Max and the revenue of the business is bound to be affected by
it (Jones, 2017). The fear regarding air travelling is already omnipresent amongst majority of
fliers because they are apprehensive and this crashing of the two planes consecutively has
affected the airline companies majorly. This disaster has affected the reputation of the company
heavily as the majority of 737 aircraft is being grounded by the airline companies where they are
claiming the uncertainty of the Boeing Max 8 model and the reason behind this act (Hatton and
4