Ethical Issues and Impact of Boeing Crashes

This report discusses the ethical issues surrounding the Boeing crashes and their impact on public confidence, share prices, and the travel and tourism industry.

Report

EXECUTIVE SUMMARY
The report is based on Boeing which is one of the renowned brand that deal with wide
variety of operations such as selling of air plane, satellites, rockets and so on and has gain
maximum exposure in different parts of the country. This firm lead a major crash that affected
the overall performance of the company and thus reduces the goodwill across the globe. This
report cover various aspects such as unethical behaviour of Boeing on share prices, confidence of
public and also on tourism industry. As it cause a serious concern and results in lost of lives of
large number of passengers within the confine sector of aircraft industry.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
ANALYSIS......................................................................................................................................1
CONCLUSION ...........................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
..........................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Ethics is defined as the branch of philosophy that consist of various suggestions
regarding the right or wrong conduct of people living in a society(Blundell, 2020). In other
words, it consist of moral duties, responsibilities and obligations of a human behaviour that
provide an aspect of defining rules and regulations and recommend an appropriate course of
action. It also seek to resolve various questions and depict the truth values within the society and
it is also regarded as an ideal of human character. This report is based on Boeing that involve in
manufacturing, designing and selling of air planes, rockets, missiles and satellites in different
parts of the country. This company was originates in 1916 by William Boeing and it also deal
with two major crashes that affect the overall growth of a company.
Lots of people lost their lives due to this major accidents as it has suffer decline in
reputation of a company and also reduces the confidence of public as they not chooses to prefer
travelling by this aircraft industry. This has give rise to several issues that reduce the goodwill
and also decrease the sale and profit margin within the confine sector of airline industry. Also, it
has affected the prices of share which create a adverse impact on a overall market growth. This
results as loss of people has lost their jobs and provide various adversities in the eyes of
public(Tüzün, Ergül, and Johnson, 2019). Travel and tourism are regarded as a major source
of revenue generators that aids in increasing the profits of a company. This report also covers the
threat of unethical behaviour on tourism industry as it create fear in them and thus hamper the
growth opportunities among the passengers.
ANALYSIS
Boeing 737 is a largest airline industry that provide the seat to across 85 to 215
passengers and also aims to provide fastest services to their customers across the globe(Hale,
2019). This report aims to provide various information regarding the crashed faced by Boeing
737 in 2019 and also has resulted in major economic crises across the globe. This report cover
an impact of unethical behaviour of Boeing on travel and tourism, public confidence and the
affect of share prices within the country.
Boeing 737 result in a two major crashes on October 2018, and on March, 2019 which
poses a big threat to the company. In October, in this case it has resulted in lost of lives of 189
people, MACS was designed so as to keep the flights stable and pulling the links of airline
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downwards. The disaster taken place in Indonesia in these two years has results in affect the lives
of 346 passengers in an around the globe.
According to the code of conduct of fundamental Canon, the main motive is to provide
welfare, health and safety to all the public(Hamilton and Webster, 2018). Pilots has been
crashed due to Max 8s that attempts to maximise its profit by charging extra prices does not
provide health and welfare to the public which create a major unethical issue.
Also, the reputation of a company in front of the public declines and affected the decisions not to
ground voluntarily. The concerned firm has also faces several issues like decline in the financial
position that results in an decrease in profit margin of a company. This create a lasting impact on
the overall performance of the reputation of Boeing. There are greater number of 4600 Boeing
737 that would not be delivered till it does not provide the solutions and thus ban is lifted.
After the two crashes done by the airline, it results in decline in the confidence of public
as they prefer to choose another flights. This hamper the sale and profit of airline industry and
decline the growth opportunities to a company. During peak season especially in summers, there
is major impact on a company as there is slow in communication process among the large
number of individuals by the CEO of Boeing(Jameson, 2016). In two crashes, this airline
industry has eroded the confidence of public. Boeing is facing multiple issues resulted from
victim families that affect the performance of a company and also it can allow cash cow in order
to regain the attention of public from different parts of the country.
The share prices of Boeing came down which tends to involve the biggest downfall in the
market. Decrease in market prices result in declining the performance of companies in several
ways such as reduce in prices and adverse the impact and thus create an unimaginable chaos in
all over the country. This was the biggest downfall in last two decades that results in huge losses
of money of several kinds of investors. This is the major aspect in lowering the index of a market
and cause a serious concern towards the safety and production cost. The inappropriate decision
taken by the manager of company specially at the time of crises is also one of the major reason
that facilitate improper coordination within a workplace. The shares of Boeing were sold off in
the market on the basis of speculation(Lawrence, and Thornton, 2017). Boing 737 is regarded as
the best selling aircraft at all the time that aims to provide excellent services to their clients but
due to uneven crashes it has affected the overall performance of the company.
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Travel and tourism play an important role in an airline industry that create a negative
impact on the overall performance of a company(Van Weele and van Tubergen, 2017). The two
deadly crashes in Indonesia has affected the overall performance as travellers are very delicate
towards the news of airline crushes and prefers to not to choose this airline craft. Various social
networking sites such as Facebook, Instagram, twitter and so on has spread the negative news
which possess a fear among the large group of individuals as a fear of flying. Online booking
sites like Kayak has provided the arrangement of filter so as to avoid specific type of aircraft.
There are several negative outcomes for respective firm that results in decrease in goodwill and
suffer a huge loss that provide competitive advantage to Airbuses at a global level. There is
ongoing news and updates of Boeing which create negative impact on the mindset of travel and
tourism sector. Boeing's share lost result in 12% as followed by the Lion Air crush that is one of
the major decline of the productivity and efficiency of the company(Ledgerwood, Vilderson and
Curtis, 2016). The two fatal crushes also affected the GDP of the country and create an adverse
situation to a economy which hamper the company to enhance its growth. Also, the company is
forced not to be in the air and also halt the overall production rate that decrease the efficiency
and effectiveness within the confines of aircraft sector.
Another issue faced by the firm is that the two crashes results in remaining grounded
across the globe without an appropriate time table that stop the overall production system. The
interim analysis and various problems related to wires and engines put a major questioning
towards the CEO of company. This create a major distress and cause a major milestone among
the passengers of a company. Other warning signals are related to technical issue that create a
malfunctioning and create a negative impact on company. Lack of communication strategy is
also considered as the major threat as it create misunderstanding and confusion among the staff.
This leads to shortage of staff and thus reduces the overall efficiency and also another reason is
improper training provided to pilots and lack of ability to cope up with challenges. These are
other reasons that are faced by the company and thus possess a big threat to the reputation of
firm in front of public(Long, Wann, and Brockman, 2016). Also. Pilots were never ever
informed about the latest version of 737 MAX 8 and automatic anti stall system that violate the
principal of informed consent. As according to this principal, they should have complete
information regarding this matter so as to facilitate the smooth operation of a business.
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The another ethical issue that has been violated by the Boeing is precautionary principal
that cause a serious concern towards the company around the world(Schleper, Blome, and
Wuttke, 2017). There is lack of safety measures that had caused the crashes within an airline
industry. Also, the foreign authorities has not provided data which create a major dispute and
thus decline the growth of a company. As according to the principal of precautionary measures,
the main purpose is to render proper safety measures so as to gain large exposure of customers.
This decrease the confidence level and determination of investors and thus reduces the overall
productivity and performance of Boeing firm due to the two crashes that had caused. The disaster
of crashes has cost the lives of so many passengers that create a sense of fear among the large
number of individuals who want to travel in such flights(Simon, 2018).
CONCLUSION
From the above furnished information, it can be summarised that ethics play an important
role in human's life that describes the norms, duties and moral conduct so as to ensure success in
a company. It also tell about what is right and what is wrong so that decision could be taken at a
faster rate and also help in ensuring proper code of conduct within the confine sector of aircraft.
It has been analysed that two fatal crashes of Boeing affect the overall reputation and also create
a negative impact on the confidence of a public. The management perform various functions
such as planning, organising, controlling and monitoring the activities so that it lead to timely
completion of task in an efficient manner. Through strategic planning, manager bring proper
coordination and cooperation and thus provide the overall efficiency and productivity of an
organisation. Also, it has been observed that manager also focuses on safety so as to increases
the attention of travel and tourism sector. This help in providing growth opportunities and thus
increases the profit of a company.
RECOMMENDATIONS
As per the analysis of above report, ethics are considered as important part in today's life
and every business has to abide by all rules and regulations so as to maintain proper and smooth
flow of activities. The manager should take care that an efficient training should be provided to
them so that they could work with greater zeal and thus also inculcate self confidence and
determination in them. By applying proper ethics and code of conduct would help Boeing to
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facilitate success and prosperity. The main emphasises of a respective firm is to to provide
welfare and safety to all passengers so as to gain positive reputation at a global level.
According to the principal of Fundamental canon, this focuses on providing safety and
welfare among the large group of individuals so that it could generate more sales and thus
increase the profit of the company. The concerned firm also adapt advanced technology so as to
provide fast and efficient services and also provide full information about the latest versions to
the pilot so they could be prepared to handle every worse situation within a company. According
to the principal of informed consent, it is mandatory for the compulsory to provide updated
information so as to ensure safe operation of a business. There should be internal changes in the
system and focus should be more on safety measure so as to rebuild trust among the public and
also gain goodwill in different parts of the country. Proper communication strategy and planning
among the staff help to avoid confusion and misunderstanding and also help to accomplish the
task in a best possible manner. This also ensure proper coordination and facilitate smooth
operation of a business and the manager of Boeing assign the work among the subordinates in
according to their specialised skills so that they could work in an efficient manner.
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REFERENCES
Books and Journals
Blundell, B.G., 2020. Ethics and the Organisation: Pervasive Best Practice. In Ethics in
Computing, Science, and Engineering (pp. 59-108). Springer, Cham.
Hale, R., 2019. Executive Team Leadership in the Global Economic and Competitive
Environment.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Jameson, B., 2016. Leadership Corruption and the Implications to the Corporate Brand
(Doctoral dissertation, University of Southern California).
Lawrence, P.K. and Thornton, D.W., 2017. Deep stall: the turbulent story of Boeing commercial
airplanes. Routledge.
Ledgerwood, J.R., Vilderson, A. and Curtis, T., 2016. An ethical dilemma: A case from the
aviation industry. Institute of Management Accountants.
Long, D.M., Wann, C. and Brockman, C., 2016. Unethical business behavior and stock
performance. Academy of Accounting and Financial Studies Journal. 20(3). p.115.
Schleper, M.C., Blome, C. and Wuttke, D.A., 2017. The dark side of buyer power: Supplier
exploitation and the role of ethical climates. Journal of Business Ethics. 140(1). pp.97-
114.
Simon, D.R., 2018. Elite deviance. Routledge.
Tüzün, I.K., Ergül, M. and Johnson, C. eds., 2019. Sustainable Tourism Practices in the
Mediterranean. Routledge.
Van Weele, A. and van Tubergen, K., 2017. Responsible purchasing: moving from compliance
to value creation in supplier relationships. In Sustainable Supply Chains (pp. 257-278).
Springer, Cham.
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