Impact of Unethical Behavior on Boeing Travel and Tourism Industry

This report discusses the impact of unethical behavior on Boeing's reputation, public confidence, share price, and the travel and tourism industry. It highlights the crashes caused by malfunctioning systems and the resulting loss of confidence among passengers. The report concludes with recommendations for improving the company's image and ensuring the safety of passengers.

ACADEMIC WRITING
COURSEWORK REPORT
RELATED TO ON THE BOEING
TRAVEL CASE STUDY

Executive summary
This report explains about Boeing travel the way it has follow unethical practices that has
impacted on performances and image of company. It has also discussed about impact on
unethical practices on people confidence and would firm will able to operate its function in near
future or not. At last it had analysis and evaluated that what are the result of unethical behaviour
on tourism industry and various recommendations are also provided so that firm can uses them
and improve its performance.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Analysis:......................................................................................................................................1
Impact of unethical behaviour on Public confidence:.................................................................2
Impact of unethical behaviour on share price of firm:................................................................3
Impact of unethical behaviour on travel and tourism industry:...................................................4
Conclusion:......................................................................................................................................4
Recommendation:............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Ethics refers to branch of philosophy or moral principles that an individual can used to
perform various function in systematic and valuable process or right form to live its life
peacefully. Therefore ethics are values and belief that guide a person about what things are right
and what are wrong that can impact adversely on its behaviour and gaining other people
confidences and trust. This report is about an case study of Being Travel that has not follow
ethical principle while operating its function that has adversely impacted on firm image and
customers confidence. Boeing know that its system such as Manoeuvring Characteristics
Augmentation System were under performing or malfunctioning that are most crucial for
keeping flight stables. Due to ignorance of Boeing travel in October 2018 approx 189 people
were killed in Boeing 737 Max Lion Air flight in Indonesia (Barber, 2019). And in 2019 march
157 people died in Boeing 737 Max Ethiopian Airlines that has resulted in reduction of
confidence among people. It has also impacted on travel and tourism industry as many people are
fear of flying due to all such incidents. Brand image and sales volume of Boeing has decreased
as people are less interested to travel through company as it does not ensure health and safety of
people. Boeing reputation has been adversely impact due to death of large number of people
because of malfunctioning of system, pushing nose of aircraft down and overriding action by
pilot (Dhaigude, Kapoor and Ambekar, 2016). Firm was well known for one of the fastest selling
aircrafts as out of 700000 commercial flights per week almost 6548 were run and operated by
Boeing 737 Max Aircrafts. Thus it has play important role in travel and tourism industry having
large number of Aircraft flight. The aim of report is organisation has to follow ethics and rules
while operating various functions in order to grow and expand its business across nation. Firm
by ensuring health and safety of people and following ethics can build strong brand image and
increase its profitability and sales volume.
Analysis:
The aim of report to explains role that ethic, values plays in effective operation and
succession of business within industry. Ethic and values need to be considered by each and
every firm so that it can attract large number of customers and enhances its brand image. There
are various impacts of unethical behaviour on Boeing reputation, public confidence, and share
price of firm and tourism industry (Ali, 2018). Various impacts of unethical behaviour are as
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follows:
Impact of unethical behaviour on Boeing reputation:
Unethical behaviour has adversely impacted on Boeing reputation as firm was known for
manufacturing aircrafts but due to malfunctioning of system there are many crashes in Ethiopian
and Indonesia. Therefore image of firm has impacted that its aircraft has malfunctioning, pushing
nose of aircraft down that helps in keeping flight stable. People are afraid to travel due to such
crash that result in death of more than 157 people in March thus sales volume, profitability and
market share of firms has adversely impacted. Financial position of firm has also impacted and
other Airlines wants compensation for their losses as that they have to bear financial losses
because of Boeing (Brondoni, 2016). Thus, Boeing reputation is high at risk as every company
wants its compensation of losses that they have to bear because of unethical behaviour of
Boeing. But now firm is planning to build strong brand image by becoming more transparent and
fixing unveiled software and making some improvements in Max fleet so that it can recover or
regain faith in its airplanes. It has use online sites in order to regain its positioning by marketing
product through various social sites. Boeing airplanes software are vetted by trained pilots and it
has to followed by regulatory agencies in order to gain reputation in the market. All such policies
and changes will help firm in rebuilding its reputation and meeting needs and requirement of
each individual by ensuring their safety. Company should not to be allowed to operate because it
has not followed ethics and values while performing various functioned. Because of unethical
behaviour of firm many life has been loosed and tourism industry has to bear large amount of
losses. All such factors state that firm should not continue its operation as it will be risk for many
people life and travel and tourism industry. But as it is changing and updating its system to
ensure safety of people and regain its reputation so chances can be given to enterprise but it
involve large risk.
Impact of unethical behaviour on Public confidence:
Unethical behaviour of Boeing has also impacted on confidence of people as many
previous records such as 189 people died in Boeing Max Lion Fight in Indonesia because
airplane has crashed into sea just after 23 minute takes off (Tiffany Rhodes, 2019). The second
records in March 2019, 157 people lost their lives because Boeing 737 Max Ethiopian Airlines
fight nose-dived to countryside outside Addis and Ababa. Therefore such incident that have
impacted on mind of people and they had fear of flying thus resulting in reduction of confidence
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among people. They think it might happen to them so they try to avoid travelling through
airplanes due to unethical behaviour of Boeing. After listening to news of deadly airlines crashes
people have become more sensitive and scared of such events thus travel and tourism industry
has to suffered large amount of losses in terms of customers. Reputation and decline in sales
volume, profitability shows that customers have losses their confidence in Boeing. Decline in
Travel and tourism industry has also stated that less confidence among people and they are not
willing to travel any more. It can also be illustrated that people have losses confidence as
according to National safety council that approx 103 people died from car crashes and only one
out of 188,364 chances of dying through airplanes crashes. Thus despite of so much odds people
easily drive and choose car to travel but they fear from travelling in airplanes. Continuous news
about various planes crashes has impacted and triggered confidence of people leading decrease
in sales of Boeing Travel (Scott, Hall and Gössling, 2019). Whereas other competitors of Boeing
are enjoying great success by removing fear of flying, flight phobia among classes. But now it is
just 1% of global flights are planned thus it state that demand of people have decreased due to
decline in confidence among peoples. Due to Ethiopian Airlines crash North American has faced
large disruption as there are three largest operators of 737 Max aircrafts such as Southwest
Airlines, American Airlines and Canada. Therefore all such above information stated that people
have less confidence in Boeing airplanes and are scared to fly. Thus, company should try more
and more to improve its image by ensuring health and safety of people by installing appropriate
system for stable flight. As per the opinion of public Boeing operation should be closed down
so as it has not follow ethical behaviour while operating its unction that has lead to loss of life’s
of huge amount of people and impacted on adversely on travel and tourism industry (Hooper and
Lennon, 2016). Other company think that Boeing should close it operation so that they can gain
confidence of people by bringing innovative technologies that ensure health and safety of them.
Travel industry can also grow by gaining confidences from customers that prioritise of Airlines
industry is to ensure health and safety of people.
Impact of unethical behaviour on share price of firm:
Unethical behaviour or certain rules and regulation not followed by firm have impacted
on share price of firms. Share of prices of firm has impacted as dissatisfaction among customers,
decrease in reputation of firm, sales and profit margin has resulted in decreasing share prices of
firm in the market. Due to many crashes news people have losses confidence to invest in such
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company that follow unethical behaviour while operating its various function. People that
belong to travel and tourism industry think that they have suffered huge amount of losses just
because of malfunction of Boeing Travel so it also impacted upon share value of company. Due
to crashes news people are less willing to travel through airplanes thus result in reduction in sales
and profitability of firm and thus impacting on shares price of company (Becken, 2019). 737
Max aircrafts are forbidden to fly till the caused of crash could not be found out and it will
extended to more few weeks to identify security issues. Financial positioning of Boeing is also
not good due to less sales and compensation demand for Airlines thus all such factors affect on
share prices of firm, Boeing has to ceased its operation as it has to pay large amount of liabilities
and compensation to other Airlines that have to suffered losses because of unethical behaviour of
company. At the same time it does not have enough financial requirements to meet and ensure
health and safety of people,
Impact of unethical behaviour on travel and tourism industry:
It can be illustrated from above analysis that unethical behaviour of Boeing has impacted
on functioning of travel and tourism. Grounding has affected on travel industry as it has limited
uses and shifted to planes that can accommodate grounding. It has disrupted number of
international travel flying as fights have been subsequently cancelled and re-routed to Steward
Airport in New York (Ana Nicolaci da Costa, 2019). People are less interested to travel through
planes as they does not ensure health and safety of people. Malfunctioning system are used that
lead to unstable fights and lead to large number of crashes and death of people. Therefore it can
state that it has adversely impacted on travel and tourism industry. Boeing has not stop its
operation as it by following unethical behaviours has not only affected its growth but also impact
on whole travel and tourism industry and economic condition.
Conclusion:
From the above report it can be concluded that ethical behaviour plays an important role
in growth and success of company as well as in individual life. One should considered values
and ethics so that no harm or disadvantages is caused to another person. It can also be concluded
from above analysis that if Boeing has followed ethical behaviour them firm not have to faces
situation of losses of large customers (Koh and Kwok, 2018). Unethical behaviours has not only
reduces its reputation but also its customers trust, prices of share at the same time impact on
travel and tourism industry. Therefore it can be explained that ethical behaviour helps in gaining
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customer’s satisfaction and increasing market share and profitability of firm.
Recommendation:
From the above analysis various recommendations can be given to Boeing travel that it
can use to gain customers satisfaction and increase its shares prices. The following
recommendation for Boeing growth and survival in industry are as follows:
o Boeing should provide appropriate training and development courses to its pilot
so that they can ensure health and safety of people by handling situation of planes
crashes and to avoid overriding (Huang, 2017). Thus, able to gain customers
satisfaction and confidence by hiring skilled and trained pilots to operate plane.
o Other point that needs to be considered by firm is it has to designed, appropriate
system such as Manoeuvring Characteristics’ Augmentation System so that
Malfunctioning of such system can be removed.
o It should improve its fleet safety so that able to attract number of customers to
experience travelling through Boeing Airplanes. Therefore it promotes growth
and survives of Boeing in the Airlines industry.
o Firm also needs to work to improve its brand image and reputation by taking
various steps that ensures health and safety of people and using social media to
create awareness among people about various changes that firm is planning to
avoid crashes.
o Operation of Boeing if regulated by specific agencies it will help in gaining
maximum support from customers to enjoy safe and secure travelling.
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REFERENCES
Books and Journals
Barber, H., 2019. Interstellar Travel and Tourism: The Possibilities in the Dawn of the New Face
of Business and its Structure.
Dhaigude, A .S., Kapoor, R. and Ambekar, S., 2016. A conceptual model for adoption of
information communication technology in the travel and tourism industry. Tourism
Recreation Research, 41(1). pp.49-59.
Ali, A., 2018. Travel and tourism: Growth potentials and contribution to the GDP of Saudi
Arabia. Problems and Perspectives in Management, 16(1). pp.417-427.
Brondoni, S. M., 2016. Global Tourism Management. Mass, Experience and Sensations
Tourism. Symphonya. Emerging Issues in Management, (1). pp.7-24.
Koh, S. G. and Kwok, A. O., 2018. ASEAN beyond talk shop: a rejoinder to regional
tourism. Current Issues in Tourism, 21(10). pp.1085-1090.
Huang, H. Y., 2017. Travel Characteristics, Tourism Image and Revisiting Willingness
Correlation Analysis of Penghu Winter Tourists.
Hooper, G. and Lennon, J .J. eds., 2016. Dark tourism: Practice and interpretation. Routledge.
Scott, D., Hall, C .M. and Gössling, S., 2019. Global tourism vulnerability to climate
change. Annals of Tourism Research, 77. pp.49-61.
Becken, S., 2019. Decarbonising tourism: mission impossible?. Tourism Recreation
Research, 44(4). pp.419-433.
Online
Ana Nicolaci da Costa. Boeing grounded: What it means for air travel Boeing grounded: What it
means for air travel. 2019., [Online]. Available Through: <
https://www.bbc.com/news/business-47549327>.
Tiffany Rhodes. BOEING PLANE CRASHES: HOW THEY COULD IMPACT. TOURISM.
2019., [Online]. Available Through: < https://online.jwu.edu/blog/boeing-plane-
crashes-how-they-could-impact-tourism>.
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