Boeing 737 Max: Case Study on Ethical Failures and Governance Issues

This report examines the ethical and governance failures of the Boeing 737 Max crashes, focusing on the role of the Manoeuvring Characteristics Augmentation System (MCAS) and the company's ethical structure. The report details the background of the crashes, highlighting the loss of life and the software issues that contributed to the disasters. It analyzes the ethical failures, including the prioritization of profit over safety, lack of informed consent, and the violation of the precautionary principle. The analysis covers issues such as inadequate pilot training, lack of transparency, and leadership failures within Boeing. The report proposes alternative solutions, including organizational restructuring, runway condition awareness measures, and continuous monitoring of aircraft systems. Recommendations emphasize the need for improved training, enhanced safety protocols, and a customer-centric approach that prioritizes safety. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

Running head- Ethics and Governance
Ethics and Governance
Name of the Student
Name of the University
Author Note

1Ethics and Governance
Background of the Case of Boeing 737 Max
Ethics is taken from the Latin word “ ethos” that outlines the central moral and the
ethical values that persist in humanity. Business ethics standardize the demeanor that decrees
to go outside the jurisdictive requirements and track the situations and the circumstances that
will be ethically and morally right. Boeing is one of the first corporations in aeronautics,
measured a front-runner in manufacturing and conveying aircraft worldwide, with customers
ranging in over 100 nations and workers in over 65 (Gioia, 1992). During the year 2018, in
October, there was a news headline all over about the Boeing Max crash. The issue was
regarding the Boeing model 737 max of Lion Air, that leaped into the Java Sea, soon after the
departure of the flight from Indonesia. The mortality rate was seen to be near 189 passengers
that were on board. Five months later, after the previous crash in the year 2019, March, the
similar model airplane of the Ethiopian Airlines, plunged in the town, just outdoor to the
capital Addis Ababa, triggering the demise of 157 people (Intereconomics, 2018). Both the
mishaps caused the catastrophic deaths of nearly 346 people.
As a consequence of the catastrophe, the responsibility was upon the software
disputes primarily that was due to the faulty software system known to be the Manoeuvring
Characteristics Augmentation System (MCAS). The unique plan was structured in a way that
will be able to preserve the airplane and keep it steady during the take-off. Unfortunately, the
break down superseded any activities that could have further saved it from such a disaster.
Further, due to such issues, the “Federal Aviation Administration” forbidden the
manufacturing and the usage of such aircraft in aviation temporarily. The Boeing company
planned to correct the malfunctions that were present in the software and correct it by the end
of the summer. The primary issues that the Company was facing were definitely the software
and the engineering issue, but apart from that, the main issue that the Company needed to

2Ethics and Governance
look out beforehand was the ethical structure. There was a lack of a proper ethical structure
that was needed by the Company to follow after the first crash that would have saved it from
facing such an after effect of the occurrences. The primary aim is to analyze the ethical
failures of the Company and provide an alternative solution to combat that situation
(Contributor, 2020).
Issue
The primary element for the casualty was due to the lack of governance and the
technical miscarriage in the airplane that they were unsuccessful in delivering to the aviators
that would have protected the airplane from colliding. The structure that was finished to
safeguard the protection of the publics rebounded, which led to a disastrous condition
(Duppati, Scrimgeour & Stevenson, 2018). In addition to that, the deficiency in the governing
patterns of the Company includes the lack of information with the pilots as they were
unaware of the software that was installed in the aircraft in order to protect it from any kind
of turbulence during the aviation. “The Boeing airplane was planned in a mode that allowed
for a durable expertise by the processor owing to the software that was mounted that would
generate with a single defective sensor.” “Even though together the airplanes were mounted
with such software due to the absence of drill to the pilots, they were completely uninformed
about the sensor and were not capable to routine it in while they depart.” The principal
obligation was not upon team only, and it was also an obligation of the Corporation to
comprehend their elections and deportment of an appropriate ascendancy as it comprises the
harm of existence of many people that might have been circumvented with appropriate
governance. The chief obligation encompassed the perilous plan selections and the safety
assessments that were observed as defective subsidizes to the mortalities and the calamity in
the airplane.

3Ethics and Governance
Analysis
The decisive characteristic that was spotted was the motorized problems of the
airplane that was accountable for the disaster, along with the ethical structure of the
Company. Firstly, Boeing was constructing the airplane using modern machinery starting
from the year 2011, so there shall have been appropriate preparation facilities for the crew to
make them accustomed to such software and the usage of it. “To attain such stages of the
practice of the technical progresses it armed more locomotives that would be substantial for
the convention of such software, it was located on a high level upon the wings of the aircraft,
these fluctuations required shifting the whole aerodynamics of the plane.” In command to
alleviate the aeroplane with the convention of the new apparatuses, Boeing shaped an
advanced software identified as the MCAS ( Maneuvering Characteristics Augmentation
System). Nonetheless, it is evident from the crashes that MCAS software that was fitted was
not functioning correctly as both the aircraft crashed in transcripts earlier. The take-off took
place, and notwithstanding the abundant efforts to fright the software, the planes kept sinking.
Later reports displayed the pilots were not adequately qualified about the procedure of such
software, but they were also ignorant of the fitting of such software (Ladd, 2019). This makes
it evident that the first stroke that was mandatory by the Enterprise was inadequate. The
supplementary uneasiness was owing to the absenteeism of evidence
Ethical Failure by the Company
The misfortunes results into the loss of lives of all the 346 crew members and
passengers. As per the statistics, the two aircrafts stipulate that the fault was in the faulty
engineering that the design created to save them was ultimately the reason of the demise of so
many people due to the lack of proper training and governance. The Boeing 737 MAX 8
lately went into examination, in May 2017 (Cunningham, 2018). Without any hesitation, the

4Ethics and Governance
quandary in the moral and the ethical structure rose instantly as to where the profit made by
the Company was considered supreme than the safety and the lives of the passengers and the
crew members (Jones & Ryan, 1998). The primary ethical issues in the Company are stated
as follows:
Ultimate Rule
As stated in The National Society of Professional Engineers (NSPE) Code of Ethics,
the welfare, safety, and strength of the individuals shall be considered as a supreme priority
for any organization. Rendering to original effects from the continuing inquiries, both
calamities were initiated by a single defective device, that triggered a novel instinctive anti-
stall method to thrust the plane’s nose down recurrently (Jones & Ryan, 1997). Several
correspondents have quantified that Boeing is suspect of reasonably inexpensive and
forthright cautionary displays in the battleground that alert aviators to deviating radar
interpretations (Peterson, 2019). If such displays had been fitted on both the 737 MAX 8s that
worn-out, it is added prospective that aviators would have been able to recognize the
damaged anti-stall classification. There has been a boundary concerning the sum
of cash the plane builders devote to mark their goods more harmless to
use, but that was not the contemplation in the circumstance.
Cognizant Sanction
Aviators were not familiar that the original form of the 737 MAX 8 model had been
equipped with the diverse reflex anti-stall arrangement, that a damaged interpretation of a
solo radar could activate it. Aviators were not polished about the new descriptions of the 737
Max ideal of the airplane that fortified a new anti-stall scheme that the aviator was ignorant.
Aviators were undoubtedly not known that a defective solo interpretation of the device could
trigger the software as the aviators were not sufficiently qualified to activate such software.

5Ethics and Governance
This is the likely damage of the code of informed consent as the aviators were uninformed
about such usage of the software that could have avoided from the crash that, in turn, could
save the flight from the crash. This ethical prerequisite is assumed as a suggestion of the
principle of “informed consent” (Nytimes.com, 2020)
Precautionary Principle
The third ethical issue comprised of the precautionary belief that was despoiled in the
instance. As per the credible induction of the precautionary principle, consisted the software
that was accountable for conservation in contradiction of the intimidations that happened.
The establishments of the Corporation were not revealing the motive for the bang initially. It
was apparent if two aircrafts had collided that lead to loss of life of the people; hence it was
the obligation of the establishments to report the faults and reveal it. The two clatters were
owed to the similar motive that demonstrates both the occurrences, the establishments were
not accountable sufficient to train the people. These presented that the purpose of the
Corporation is revenue making and was not alarmed with the security of the people at all.
Another clatter transformed the ailment adequate to certify upon a stern act on the Concern
even if it did not denunciate their software for the crashes. This was a sheer example of the
lack of the moral structure of the Company concerning the safety of the people.
Leadership Issues
As per the circumstances, it was apparent that the clash was owed to the absence of
management supervision of the establishments. The wide-reaching interpretations of this
substance are alike as it was accurate that if the aviators were not suitably qualified that the
crashes could be ignored with proper training (Monahan & Quinn, 2006). Even after the first
crash, the establishments were not simple enough to contest the condition and deliver
administration for the alike. Even after two cracks, the establishments were not responsible

6Ethics and Governance
enough. Initially, even the chairperson of the Corporation did not even approve of the detail
about the aim of the smash. For this reason, all the countries have opposed the usage and the
functioning of the Boeing Flights.
Alternatives
It is evident from the occurrences that it was a failure in the application of a proper
ethical structure that the Company failed to establish even after the first crash. Those
mortalities could have been easily evaded ensuing explicit actions. Such strategies comprise
several actions. The maximum extent would be a reorganization in the organization's
construction of the Corporation (Fischer & Dov, 2014). It comprises preparing their aviators
and other required crew associates, and they shall be prepared to be conscious of the smallest
alteration in the machinery fixed in the airplane. Another technique could be runway
condition attentiveness actions. This step comprises of the essential underpinning in
command to uphold the steadiness in the circumstances in situations of crisis. It would further
help the aviators to make suitable choices that would be mandatory to upkeep better-informed
conclusions that would sustain the many attitudes for safe arrival. Such platforms must be
intended in a technique where the training stage, through arrival rushing, the Runway
Situation Awareness measures would deliver a mixture of clarification in cases of runway
tricky. Another necessary amount will comprise continuous nursing that may be obliged to
evade any mortalities in the prospect. “Observing would benefit in possession of an suitable
note of the apparatuses that are waged appropriately, and it would also help identify any
casualty that might be triggered due to the mechanical problems in the plane.” Glitches would
be recognized naturally that would help in giving an immediate resolution to the issue. In this
situation, if the scrutiny and the analysis were done beforehand, then the accidents could have
been easily avoided (Miller, Danny & Xu, Xiaowei, 2018). There shall be adequate training

7Ethics and Governance
facilities been given to the crew members so they may be able to combat any kind of fatalities
faced during aviation. Finally, the Corporation should concentre on giving various strategies
to the customers that will defend the safety of the customers. The strategies must be planned
in a way where safety is the main priority.
Recommendation
Further, the recommendations are elucidated that shall be followed by the members to
avoid any kind of fatality or the reoccurrence of the situation in the future. The Company
shall modify its framework and follow the ethical structure that will profit the Company more
in the future. The following are mentioned below:
1. Restructuring the company policies:
The structure of the policies shall be such that it shall benefit all the passengers and
the crewmembers. Policies shall focus more on the safety of the passengers.
2. Developing new technologies
New technologies to be introduced that will ensure the functioning smoothly and
efficiently.
3. Management Reform
The Company shall restructure the policies that will ensure the smooth functioning of
the business without causing harm to any of the people or damaging the life of any other
person or the crewmembers.

8Ethics and Governance
4. Adequate training programs
The training programs shall be mandated that will make the functioning of the
aviators more smooth and easy for them to understand the functioning of the new
technologies required in the aviation process.
Conclusion
In conclusion, it can be stated that the misfortunes were the result of the improper
ethical framework that the Company followed. With the new infrastructure and new policies,
the government should enhance more that may be successful in battling with the moral
obligations that the Company faced. “It is evident that the breakdown was on the portion of
establishments and the absence of moral and decent outline that occasioned in the
malfunction.” Tallying to that, there was absenteeism of drill providing to the aviators that
instigated the incidence. As a result, the implementation should be made more robust to
combat such a situation in the future.”

9Ethics and Governance
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