Impact of Unethical Behaviour on Boeing Business

This report analyzes the impact of unethical behaviour on the reputation, revenue, stakeholders, and customers of Boeing business. It also provides recommendations for overcoming this issue.

KNOWLEDGE &
CREATIVITY

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. This report has provided brief introduction of the
Boeing business and explain the both incidents happened with their Aircraft Boeing Max 737.
After the compilation of the introduction of the company this report has cover the analysis
section in which it has analyzed impact of Unethical behaviour impacted overall Boeing’s
reputation in the market, their revenue and their customers.
This report had focused on conducting research on the other companies react on those
incidents and how their reputation in the market falls down because of this their revenue
generation also fall down because their top customers stop taking Aircraft from them because of
their unethical behaviour. This report had briefly explained the how their stakeholders react on
their business and their investors stop investing of the Boeing business company will affect on
their share prices. In the analysis, this report has cover customers because they were impacted
by this incident mostly. Costumers do not want to take their flights with the Boeing Max 737, not
only this but it also creates fear from the take transportation services from the air travel. This
report also covers the impact of unethical al behaviour on the travel business and what solutions
they find to overcome from this problem. This have been included in the analysis part. In
recommendation section this report has been provided recommendation to the Boeing business
so they can overcome from this problem and they can again start their business. It has been been
included some suggestion strategies etc. This also talk about that company should continue their
business or not. This suggestion will help Boeing business to start their business again and they
can gain make their reputation in the market. This whole report has been included text citations
which shows the author who have include the impact of the Unethical behaviour on the business
and also provided strategies to overcome from those issues. This report has been concluded
references of the top which is unethical behaviour and also add the tiles of the report which
shows the areas which have been covered in the project Unethical behaviours in the business is
the situations where moral conflicts arise and must be addressed. In the end of this report has
been briefly provided the conclusion of the report which shows that what report has been

discussed in this report and what was the conclusion report writer has god in the end of this
report. This all has been discuess in whole report which makes this report successful.

TABLE OF CONTENTS
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................5
Main body........................................................................................................................................5
1) Impact of unethical behaviour on company's reputation...................................................6
2) Unethical behaviour impact on revenue.............................................................................6
3)Impact of unethical behaviour on the stakeholders.............................................................7
4) Unethical behaviour impact on customers of the Boeing business...................................8
CONCLUSION................................................................................................................................8
RECOMMENDATION.................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business Ethics can be defined as implementing appropriate business policies and practises
with regards to arguably controversial subjects. It plays a vital role within an organization as it
helps in corporate governance, reduction of discrimination, social responsibility and many more.
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 a 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.

ANALYSIS
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.
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 traveller’s 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.

2) 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
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.
3)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
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.
4) 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 Unethical situations and 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. As per
the analysis Unethical behaviour of Boeing impacted their overall reputation because of which
after a pint their investors stopped investing within their business as a result their overall market
share was decreased. Their market reputation was affected in a drastic manner which further
resulted in reduction within their overall profitability. This report has been impacting 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 revenue of this company (Chua
and Ng., 2017). It also included impact of unethical behaviour on the company’s 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.

RECOMMENDATION
 It is important for Boeing to stop operating their business in Unethical situation where ethical
issues arises, 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 focus on using an effective brand management strategy which will help them to regain
their trust and loyalty within their customers and it will also help the customers to forget the
incident that happened.
 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.

REFERENCES
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Online
The Boeing Company. 2020.[Online]. Available through:< https://www.boeing.com/>