Impact of Unethical Behavior on Boeing's Reputation and Revenue

This report analyzes the impact of unethical behavior on Boeing's reputation, revenue, shareholders, and customers.

Report On A Study
Case
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EXECUTIVE SUMMARY
It is essential for each and every company to conduct their business operations and
function according to legislation developed by government bodies because through that they can
avoid ethical issues. Ethics is determined as moral philosophy which will include different
aspects like defending, recommendation and systematizing that are based on wrong or right
activities. Boring Business is conducting its business in airline industry but they get engaged in
some unethical activities due to which several passengers get injured as well s dead. This
unethical practice impact on respective company on several aspects i.e. reputation, revenue,
stakeholder and customers.
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Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
ANALYSIS .....................................................................................................................................4
Impact of unethical behaviour on Boeing’s reputation and whether the company should be
allowed to continue to operate....................................................................................................4
Impact of unethical behaviour on Boeing’s revenue and whether the company should be
allowed to continue to operate....................................................................................................5
Impact of unethical behaviour on Boeing’s shareholders and whether the company should be
allowed to continue to operate....................................................................................................6
Impact of unethical behaviour on Boeing’s customers and whether the company should be
allowed to continue to operate....................................................................................................7
CONCLUSION ...............................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFRENCES.................................................................................................................................10
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INTRODUCTION
Ethics is also determined as moral philosophy that considered systematization,
recommendation and defection that are related to the right or wrong activities. In context of
business, ethics considered as business policies and practices that help a firm in regulating its
functions and operations properly (American Library Association, 2020). There are numbers of
aspects which are considered in the company ethics such as bribery, social responsibilities,
corporate governance, fiduciary responsibilities, insider trading and so on. Business ethics is also
of different types i.e. personal responsibility, personal loyalties, technical morality, legal
responsibility, official responsibility and many more. This report is based on the case of Boring
Business, they are operating their business in airline sector and they are get engaged in some
unethical activities. In October 2018, there are approx 189 individual are killed in flight of
respective company named Boeing 737 Max Lion Air Flight at Indonesia. This take place
because that flight get in to the emergency nose dive and it get crashed in sea after the landing of
more than 13 minutes. Same case happen to next flight of Boeing Business i.e. Boeing 737 Max
Ethiopian Airlines flight at March 2019 into countryside of Addis Ababa as well as due to it near
by 157 people died.
Respective company senior authority blamed whole incident on software issue that
related to sensor, specifically as well as on MACS (Manoeuvring Characteristics Augmentation
System). These system are generally used in order to make or keep flight stable at time of
malfunctioning and it is also used when pushing nose of flight get down due to overriding of any
specific practice by pilot (Choporova and Serostanova, 2019). In case of Boeing, their chairman
and Chief Executive officer refuse to considered that it is their flaws and due to them software as
well as other system not work effectively. The main aim of conducting this report to understand
impact on respective company unethical practices on company's revenue, customers, stakeholder
and reputation.
ANALYSIS
Impact of unethical behaviour on Boeing’s reputation and whether the company should be
allowed to continue to operate.
Unethical behaviour is determined as practices that are conducted by avoiding legal
aspects as well as these are illegal activities for company (Conrad, 2019). While doing unethical
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practices an organisation avoid all the necessary rules, policies and legalisation that are
developed by nation government. The main reason behind conducting unethical behaviour is to
earn more profit in short period of time. Unethical behaviour impacted directly or indirectly on
the company reputation which decrease its market value and shares. In context of Boeing
Business they get engaged in unethical practices due to which two incidents get take place i.e. of
Boeing 737 Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines (Jagadheeswari, Priya
and Gayathri, 2019). Along with this they also blamed whole situation on their pilot that they not
able to handle software and system properly which lead to such big incident. But after the
examination. This will impact on the company reputation, brand image and value which lead to
decrease in profitability and market shares. Moreover after finding issues in software, wings and
sensor system The Federal Aviation Administration has temporarily banned the respective
company. This community mainly banned Boeing Business because they not properly maintain
system as well as software which are essential in flight. So when potential customers get to know
about these issues related to Boeing 737 Max Lion Air Flight and Boeing 737 Max Ethiopian
Airlines their trust get loss and they feel they get cheated. This will directly impacted on the
company reputation at the potential marketplace. Now company is planning to upgrade whole
flight software by the end of summers as they want to comeback before finishing of 2019. So it
can be say that company can allowed to conduct their operations because they are realising their
mistakes as well as they also conducting practices to overcome their mistakes properly.
Impact of unethical behaviour on Boeing’s revenue and whether the company should be allowed
to continue to operate.
Unethical practices conducted by a company directly impacted on their revenue because
their sales get deceased. Revenue is determined as total amount of income that are generated by
an organisation by selling its goods or services in potential marketplace (JOLSELT, 2019).
Revenue is considered as the top line element because it initiate at top of income statement. It is
numbers that are generated by income before the expenses taken out from income statement. If it
is determined that an organisation is conducting unethical practices or behaviour then it will
directly or indirectly affect their revenue as these activities decrease their sales at potential
marketplace. In context of Boeing Business, they operate in airline industry and while
conducting their business they get engaged in several unethical behaviour which affect their
work, goodwill and profitability ratio negatively.
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Furthermore, conducting of unethical behaviour at the respective company impact on the
revenue because when trust of customers, investors and stakeholder get broke they didn't want to
invest in company (Le, and et. al., 2019). That lead to decrease in sales of tickets of respective
firm which lead to decrease in profitability as well as revenue. Potential customers are thinks
after the incidents of Boeing 737 Max Lion Air Flight as well as Boeing 737 Max Ethiopian
Airlines they are not safe in any flight of respective company. Due to which they are not
preferring Boeing Business flights for travelling one place to another. For conducting unethical
practices respective company get temporarily banned from The Federal Aviation Administration
which also considered as main reason for decrease in company revenue. But after some time
respective company realise their mistake and started taking corrective actions such as they are
updating and improving their software till the end of summers. So it can be considered that
Boeing Business can conduct their business again in marketplace because they are taking
corrective measures for improving reputations at the marketplace.
Impact of unethical behaviour on Boeing’s shareholders and whether the company should be
allowed to continue to operate.
Unethical practices or behaviour also impact on shareholders of a company. Shareholder
are those individuals and institution that generally legally owned one or more than one shares of
stocks in public or private company. They are also considered as members of a company or
corporation. These people generally provide financial support to organisation through which they
can conduct their work properly and effectively (Lee, 2019). A company have different types of
shareholder such as informational, administrative and financial transactions. There are several
benefits gain by a company through shareholder such as they get financial support, help in
operations, governance of business properly and many more. The Boeing Business is conducting
their business at the airline sector and they have numbers of shareholder who help them in
conducting business practices in effective way. But they get engaged in some unethical activities
or practices which lead to decrease in their market value and shares. Along with this it will also
impacted on the company numbers of shareholder because they feel that they get cheated
because respective firm say they are operating in ethical manner but at the end they are practising
unethical practices (Muratori and et. al., 2019).
In addition to this, for avoiding this situation and getting over from issues, Boeing
Business management take some actions such as improving condition of software and related
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systems so that employees as well as passengers feel safe and secure at flight. Through this they
also try to attract more and more shareholder who provide financial support to company by
which they can conduct their business operations and functions in effective manner (Ribchester
and Healey, 2019). So it can be say that respective company can allow to continue their business
operation in their potential market because they are taking measures to overcoming mistakes. For
this they are upgrading or improving software and other systems of flights so that shareholder get
attracted and encouraged to invest in company.
Impact of unethical behaviour on Boeing’s customers and whether the company should be
allowed to continue to operate.
Through unethical activities company's customers ratio also get impacted because they
feel cheated. Customers refers to an individual who is recipient of goods, products, services or
ideas that are obtained through a seller, vendors or suppliers (Salamonson and et. al., 2019). This
is generally done through exchange of money or any valuable consideration as well as it may
take place by financial transactions. In other word customers refers to that person who buy
particular products or services from store in order to fulfil their need, demand and requirements
in effective manner. There are different types of customers according to which company offer
products or services such as price buyer, poker player buyers, relationship buyers and value
buyers. For every organisation management it is essential to design products, services or goods
according customers because if they not do so it impact on company profitability as well as firm
also need to consider security of customers.
In respect of Boeing Business, they are offering airline services at the marketplace and
according to that it is essential for them to ensure safety and security of customers. But they not
do so and conduct unethical practices which impact on the company business as well as due to
that unethical behaviour airline also get temporarily banned by The Federal Aviation
Administration (Zito, 2019). Due to which trust of customers also get loss and they prefer
competitive airline company instead of Boeing Business for travelling purpose. But respective
company realise their mistake and in order to resolve it they are upgrading and improving their
software and system. So Boeing Business can get chance to again operate in respective industry
successfully.
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CONCLUSION
By conducting analysis of above discussed point it can be summarise that for every
company it is necessary to conduct their work in ethical manner because it help them in avoiding
legal punishable practices on them. For them it is also necessary to develop strategies, policies
and regulations according to legislations provided by government as that will help them in
ensuring proper ethical practices. Moreover, by adopting proper rules and regulation companies
also able to avoid unethical practices or activities at the workplace that may impacted directly or
indirectly on various business activities such as revenue, reputations, shareholders and
customers. So it is necessary for all industries companies to conduct proper as well as ethical
activities as that will help them in avoiding legal issues and it is also important for all employers
and employees to follow all legal practices effectively and successfully.
RECOMMENDATIONS
Through the analysis of whole case of Boeing's Business which is conducting their
business in airline industry and it is evaluated that their senior authority conduct unethical
activities in order to growth business at it impact negatively on them. This is so because the
unethical practices numbers of passengers loss their life due to two flights system issues i.e.
Boeing 737 Max Lion Air Flight and Boeing 737 Max Ethiopian Airlines. The unethical
practices directly impacted Boeing Business through several aspects such as reputation, revenue,
customers and shareholders. There are several recommendations for respective company which
help them in improving situation and condition, from which few are mentioned below:-
 For the seniors of respective company it is essential to conduct its business functions in
ethical way by following legalisation that are developed by legal bodies of nation
according to industry.
 It is also essential for Boeing's Business senior authority to apologize their mistakes in
front of passengers and their family who suffered in parenthetic of Boeing 737 Max Lion
Air Flight as well as Boeing 737 Max Ethiopian Airlines. In addition to this they must
also offer compensation to passengers as that will help in rebuilding trust among the
society.
 Senior of respective company also need to hire experts or professional as they will ensure
the effectively working condition of software and systems of flights. Through this firm
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able to ensure security and safety of their potential passengers as well as it will also help
in rebuilding trust among the society.
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REFRENCES
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Conrad, L. E., 2019. Teacher Perceptions of Curriculum Revisions, Standards, and 21st Century
Skills in a Northern Delaware School District. Wilmington University (Delaware).
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EDUCATION AND LEARNING TECHNOLOGY. 1(2). pp.62-71.
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Between Academic Achievement and Social-Emotional Skills?. American Educational
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Lee, A., 2019. Successful research supervision: Advising students doing research. Routledge.
Muratori, P. and et. al., 2019. Universal Coping Power for pre-schoolers: Effects on children's
behavioral difficulties and pre-academic skills. School Psychology International. 40(2).
pp.128-144.
Ribchester, C. and Healey, R. L., 2019. Realism, reflection and responsibility: The challenge of
writing effective scenarios to support the development of ethical thinking skills. Journal
of Further and Higher Education. 43(1). pp.101-114.
Salamonson, Y. and et. al., 2019. Language support improves oral communication skills of
undergraduate nursing students: A 6-month follow-up survey. Nurse education
today. 72. pp.54-60.
Zito, A. J., 2019. Broaching Threshold Concepts: The Trouble with “Skills” Language in
Defining Student Learning Goals. To Improve the Academy. 38(1). pp.67-81.
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