Individual assignment on Boeing Company 2022

Finance
Individual assignment on Boeing Company Case Study
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Question 1
a. A review of the US Congressional committee report and the need for adopting a strong
corporate governance as well as ethical decision making in a bid to try and eradicate deadly crashes.
i. Corporate governance
The concept of corporate governance is a call for organizations to align their production and service
delivery strategies with national and international standards. The report is a clear revelation in the lapse to
conform to corporate governance practices that compel firms to be transparent and accountable for their
actions. Corporate governance principles require that individuals and firms practice actions that yield
maximum social benefits to the citizens and not just for organizational wellbeing. As documented in the
report, the company did not act in good faith and ended up with planes that do not meet the international
safety standards (The Age, Sunday 8th March, 2020). Moreover, as seen from the report, for corporate
governance practices to be fully implemented, all stakeholders must be actively involved from planning to
implementation stage.
ii. Ethical consideration of determined by APES 110 principles of processional practice
APES 110 codes of practice provide that professionals and business remain straightforward in their
dealings to win the trust of clients. The same goes for public servants who are expected to be fair and firm
by eliminating conflict of interest while delivering services to citizens and investors. Such officers would
exhibit professional competence and due diligence to guarantee safety of the citizens. The principle of
confidentiality was not effectively implemented in the organization as the firm concealed vital information
from the assessment teams that ended up approving its substandard products. As a matter of fact, Boeing
International neglected some simple safety procedures that led to accidents that would have been mitigated
with duty to care if the company adopted professional behavior.
b. Evaluation of the application of corporate governance practices and ethical considerations
with respect to regulator’s and societal standards:
Boeing Company suffered from self-review threat and focused on the financial benefits of the
initiative while designing the planes. This was clear when it was revealed that the administrators ignored
the opinion of their technical staff regarding safety measures. The staff had adequately reviewed the plans
and hinted that there were security issues with the model but the managers overlooked the report. Secondly,
the firm focused solely on profit generation motive of operation instead of taking a wholesome approach to
structural design. Another set of lapse was evident when the regulating authority over-trusted the company