Impact of Unethical Behavior on Boeing's Reputation and Operations

This report analyzes the impact of unethical behavior on Boeing's reputation, revenue, customers, shareholders, and operational capacity. It discusses the importance of ethics in an organization and provides recommendations for Boeing to improve its ethical practices.

Boeing Business

EXECUTIVE SUMMARY
Ethics is important for an organisation to adopt for operating business functions effectively.
This report covers about unethical choices adopted by Boeing in operation of business and
failure in market through facing of two back to back incidents of plane crash. The impact of such
exercises is also analysed over their reputation, revenue, customers, shareholders and operational
capacity. It is determined from the analysis that Boeing faced the negative impact in all terms
over all different determinates along with ability to continue the operations without any
corrective measures to improve working situations.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Analysis...........................................................................................................................................1
Impact of unethical behaviour on the reputation of Boeing along with their operations............2
Impact of the unethical behaviour of Boeing on its revenue and operations...............................2
Impact of unethical behaviour on shareholders of Boeing along with ability to continue the
operations.....................................................................................................................................3
Impact of the unethical behaviour of Boeing upon customers and ability to operate in market
effectively....................................................................................................................................3
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Ethics is the branch of philosophy that includes the activities related to systematization,
defending and recommendation of determinants that are write or wrong. It is the discipline that
covers the dealing related to what is good and bad attached with some moral duty or obligation
(Ethics, 2020). The importance of ethics within an organisation is optimum as help in
performance of functions with fulfilling the moral duty. Basically, the presence of ethics within
an organisation is important to govern the behaviour of employees in positive direction along
with aligning the interest of each other towards adoption and performance of functions that are
morally correct in nature. This will provide an opportunity to build positive working
environment where everyone understands the requirement of each other and support in
completion of functioning by adhering moral principles. This brings equality within an
organisational culture and allows performing to build positive image within the market. The
principles covered in ethics include value, integrity, honour, justice, honesty, fairness etc. The
case cover in this report to analyse is related to business of Boeing. The two major incidents
were occurred in past that puts impact over the operations of an organisation because they
provide emphasis over profit instead of safety of general public. It was noticed in October 2018
that 189 were died in a Boeing 737 Max Lion Air Flight in Indonesia due to the sudden nose dive
after take-off of 13 minutes. Same was seen in March 2019, where 157 people were died due to
nose dive of Boeing 737 Max Ethiopian Airlines flight into the countryside outside Addis Ababa.
The main reason behind the both incidents was system flows where Manoeuvring Characteristics
Augmentation System (MACS) stopped working due to sensor issues. Also, there are many
issues that became the cause behind such incidents includes high airspeed and susceptible
fractures to wings. These fractures impact the ability to take-off. The main aim of this report is to
ascertain the impact of unethical behaviour over different aspects of an organisation.
The aspects cover in report includes the impact of unethical behaviour of Boeing over
shareholders, revenue, reputation, customers and operational ability within the market (Gordon
and et. al, 2018).
Analysis
Ethics is important to present within an organisation, not only for taking morally correct
decisions but ensuring the formality in between the functioning standard of employees. The main
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aim of this analysis part is to ascertain the influence of Boeing unethical behaviour over different
aspects related business along with operational ability (Woodliff, Scully and Koh, 2018).
Impact of unethical behaviour on the reputation of Boeing along with their operations
The two major incidents were occurred with Boeing in different years due to non-
adherence of ethical principles. First in 2018 and second one is on 2019. This is about the crash
of flight due to same reasons i.e. system flaws and fractured wings. The main cause behind the
occurrence of this situation was focusing over earning instead of safety of passengers. This was
the reason that unethical practices were followed within an organisation where allowed to take-
off the flight even after the presence of major issues that leads to the death of consumers (Skorin-
Kapov, 2018).
The major aspects that were ignored related to ethics while performing work includes
honesty towards work, justice to performance and fairness in dissemination of information along
with carrying business activities. These incidents have negative impact over their reputation
where they lost the trust of customers towards their services along with support of government
and society (Overall, 2018). This resultant into decrement in brand image along with market
valuation. In current situation, suggested that not allowing the organisation to operate functions
till they not recovered all aspects in accordance to the government standards. In future,
permission to operate will be provided, only in case of attaining certificate from government
about safe operations.
Impact of the unethical behaviour of Boeing on its revenue and operations
The unethical behaviour of Boeing towards non application of ethical principles and
taking the morally wrong decision leads the incident of 2 major plane crash where large number
of passengers were died. The direct impact of these was ascertained over their ability to earn
sufficient amount of revenue as after two back to back incidents customers does not want to
entitle their services in future (Chandrarathne and Herath, 2020). This leads to reduction in
number of passenger and revenue too. Also, fine and penalties were imposed by government
along with payment of compensation amount to the families of such passengers that diminish the
amount of earnings. In overall nature, all these aspects eliminate the ability of an organisation to
earn profits. It is suggested that in current condition, organisation will not be allowed to operate
as this not only harm the safety of public but also provide negative return to shareholders.
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Impact of unethical behaviour on shareholders of Boeing along with ability to continue the
operations
The incidents occurred were the reason of unethical behaviour implemented by the
management with an organisation. They not followed the principles of ethics like honesty, justice
and fairness towards work. This resultant into two Airplane crashes. The direct negative impact
of this was ascertained by the shareholders too along with the organisation (Skorin-Kapov,
2019). These are the persons who have interest within an organisation and provide funds to an
organisation for carrying operations. They provide the funds by holding the shares of an
organisation and known as owners.
The negative impact was gained by all stakeholders in the form of loss in returns (Kashif,
Zarkada and Ramayah, 2018). This happend due to decrement in earning ability of an
organisation where they unable to get share. Also, the incident creates the pressure over
shareholders from the society side regarding their investments in such organisation that uses
unethical practices to operate business. This act diminishes the credibility of these shareholders
along with an image of an organisation. It is suggested that not allowing to operate as unable to
get the support from shareholders along with sufficient amount of investment. Further, the lack
of funds not allowed the organisation to improve current position and leads the occurrence of
same incidents that harm the safety of passengers.
Impact of the unethical behaviour of Boeing upon customers and ability to operate in market
effectively
The adherence of unethical behaviour and practices has major impact over customers as in
future these are the one who have to suffer due to inappropriate operations of an organisation.
The same was happened in the case of Boeing where their inabilities resultants into crash of two
planes in different years and the large number of passengers were deceased (Clerke and et. al.,
2018). The unethical behaviour followed by the management of Boeing created the safety issues
for customers where they cannot believe over their future operations and promises of safe
journey towards their destination. It is suggested that not allowing the organisation to operate as
safety of customers is optimum over their operations till they not get certification of accuracy
from government about their effective performance.
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CONCLUSION
It has been concluded from the above report that there is huge importance of ethics to
implement within an organisation. There are different number of benefits associated with this
concept that will be attained by an organisation in present and future. This will aid in
development of positive working culture where everyone helps each other in completion of
individual and organisational targets. It improves the engagement of employees within an
organisation and provides an opportunity to think towards delivering of morally correct
operations in market that does not have negative impact. In current case study, major focus is
provided by Boeing over earning of profit instead of safety. This was the reason that two major
incidents were occurred. The direct relation of this associated with application of unethical
behaviour where they give fake promises of effective performance and safe journey. This
resultant into decrement in market share and customer base that simultaneously reduced the
amount of profits. The image of an organisation also turned negative where no one has belief
over their practices. The presence of such image in market, negatively impacts the interest of
shareholders too. The integrated impact of all is definitely the discontinuation of business if right
practices will not be adopted in future.
RECOMMENDATIONS
It has been recommended to Boeing business that they must ensure to implement ethical
practices within an organisation. It is necessary for them as in past their practices have huge
negative impact over the security of public which was not morally correct in nature. The main
aim of the organisation must be to provide optimum safety to their customers instead of earning
profit. In this regard, the three different recommendations must to be adhere by an organisation
that are defined below:
Honesty: It is must for the management of an organisation to work with honesty. This
will help in delivering the same message to lower level where they also perform the activities
with honest nature. The benefit of this will be ascertained as completion of activities in reliable
and effective nature that does not have negative impact over society. If this principle is followed
perfectly then having an option in future that never the incidents will be occurred related to
system flaws and operational disqualifications. The level of honesty persuades the behaviour of
everyone to work with fairness and deliver the safe facilities to customers. In end, this will help
in formulation of culture where organisation always deliver best to their customers in market. In
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future, it helps in formulation of positive image in market along with ascertaining the support of
customers towards the services where they suggest others to utilise the services of Boeing.
Fairness: This is the most importance principle that needed to be followed within an
organisation by everyone irrespective to the position and working nature. The importance of
same is that help in formulation of end products which are viable in nature and does not have
adverse impact over anyone. In respect to the above case, if followed the principle perfectly, then
able to resolve the issues at ground level along with providence of safety to the people who died
in such bad incidents. The lack in fairness is the reason that they ignored the system flaws and
fractures in wing that creates the issue in take-off and plane crashed after 13 minutes. Also, flaw
in system put the nose down that diminished the chances of safe lending. Adoption of fairness
principle at initial stage is always beneficial to identify flaws with the aim of delivering best. The
future benefits will be occurred in nature of high revenue, large customer and market base.
Justice: This is the principle which is must to be followed by all within an organisation.
If anyone does not provide full justice to their work receives the bad results only. This is the
responsibility over everyone’s shoulder belongs from different department to work with justice
while performing their work. This help in formulation of trust and deliver the best quality of
product or services which will be free from every kind of flaws. In the above case, if this
principle is followed properly then technical team is able to identify the flaws along with
repairing of wings at very initial stage. The positive impact of same will be ascertained in the
form of safe joinery of passengers towards their destination. This will help in future towards
increment of reputation of Boeing in market along with continual operations in market.
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REFERENCES
Books and Journals
Chandrarathne, W. R. P. K. and Herath, H. M. A., 2020. Impact of Organizational Factors on
Sales Force Unethical Behavior in the Sri Lankan Life Insurance Industry. Vidyodaya
Journal of Management.
Clerke, A.S. and et. al., 2018. Association between social class, greed, and unethical behaviour:
A replication study. Collabra: Psychology. 4(1).
Gordon, M. S. and et. al, 2018. Self-driving vehicle's response to a proximate emergency vehicle.
U.S. Patent 9,869,560.
Kashif, M., Zarkada, A. and Ramayah, T., 2018. The impact of attitude, subjective norms, and
perceived behavioural control on managers’ intentions to behave ethically. Total
Quality Management & Business Excellence. 29(5-6). pp.481-501.
Overall, J., 2018. All around the mulberry bush: a theory of cyclical unethical
behaviour. International Journal of Business and Globalisation. 20(2). pp.251-267.
Skorin-Kapov, J., 2018. Professional and Business Ethics Through Film: The Allure of
Cinematic Presentation and Critical Thinking. Springer.
Skorin-Kapov, J., 2019. Professional and Business Ethical Challenges. In Professional and
Business Ethics Through Film (pp. 187-246). Palgrave Macmillan, Cham.
Woodliff, D. R., Scully, G. and Koh, H. P., 2018. Can Anticipating Time Pressure Reduce the
Likelihood of Unethical Behaviour Occurring?.
Online
Ethics. 2020. [Online]. Available Through: <https://www.scu.edu/ethics/ethics-resources/ethical-
decision-making/what-is-ethics/>
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