Report: Unethical Behavior and Its Impact on Boeing's Business

This report examines the unethical behavior of Boeing, focusing on the significant repercussions of the 737 Max crashes and related incidents. The analysis explores the impact of these ethical lapses on Boeing's reputation, financial performance, and stakeholder relationships, including shareholders ...Read More

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Executive summary-
Unethical behaviour always make negative impact on any company, it decreases its sales,
growth, profit and revenue. The current study is based on Boeing business and unethical
behaviour that impact on its consumers base, reputation, shareholder and revenues negatively. It
can define that organization face many challenges after Max 737 aircraft land crash. In this
report recommendation part will be discussed below that direct company to take appropriate
actions in term of several benefits.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impact of unethical behaviour on Boeing's reputation................................................................3
Unethical behaviour impact on the revenue of the business.......................................................4
Impact of unethical behaviour on shareholders of Boeing's.......................................................5
Impact of unethical behaviour on customers of Boeing's business.............................................5
CONCLUSION................................................................................................................................6
Recommendation.............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Ethics refer to system of moral principles, it is concerned with what is good for people
and community and it also defines as moral philosophy. In simple term, ethics is means customs,
character or habit. It is perceptions about appropriate versus wrong, it also defined as code or
morals practised by one person or team of people. An ethics is moral principles that govern a
individual behaviour, nature or conducting of an action.
The current report is based on Boeing's case study, it explains the overall circumstances
of business faced by Max 737 crashed into sea 13 minutes after take off. Due to it, company face
many legal obligation that affect its productivity. CEO and Chairman of Boeing's initially refuse
to admit there were any issues in software. This case study also justified statement of company
CEO regarding their pilot and define its business situation faced after aircraft's crashes.
Reputation of Boeing company within airline industry play vital role, it is one of the most
essential key element of its success because reputation is not just on aspect of company, it was
made up of all the features of organization that provide many benefits as it help to increase
revenues and profit margin. It does not affect one specific area of business, but also permeates as
well as influences all aspects of Boeing. Firm market reputation is an interconnected system that
fuels itself.
The impact of unethical behaviour on Boeing's reputation, revenue, shareholders and
consumers will be discussed in this study.
MAIN BODY
Impact of unethical behaviour on Boeing's reputation
Unethical behaviour is an action or activity that falls outside of what is considered and
advised morally proper or right for a person, an industry or a profession (Chang, Ji and Arami,
2019). In context of Boeing's business, unethical behaviour of pilot impact on passengers lives,
the boss of this company has denied accusation that their two 737 max flights included in fatal
crashes lacked an optional safety features. It impacts negatively on firm reputation and position
within marketplace, it was serious consequences for company and its consumers. Among the
worst impact of unethical behaviour on Boeing reputation is that they are unable to sustain and
maintain their business any long period relationship with potential consumers. The CEO of
Boeing apologizes for lapses , vows to improve ethics standards, but it does not work any more
because the unethical behaviour of its pilot directly affect human lives as people lose their lives.

Its impact on Boeing reputation begin to tell with time as line between wrong and right beings to
blur. Unethical behaviour of workers and other member affect negatively on business reputation
as they cannot be able to sustain for longer within Airlines industry and enhance their growth.
While unethical practices and behaviour succeed for a while it soon found out. Boeing's found
guilty of such practices would then be publicly shamed and scrutinized. For example, unethical
behaviour put negative effect as company often end up losing their business licence to conduct
practices and their reputation is damaged forever.
Company should not be allowed to continue to operate, when the Boeing's reputation get
affected by unethical behaviour, in outcomes will be that their business partners stop doing
business with then and take one step back. In addition, it becomes vulnerable to expensive and
long litigations. Unethical behaviour or practices in form of low level incivility that includes
rude behaviour, lack of concern and avoidance of consumer safety (Fairchild and Marnet, 2018).
Unethical behaviour impact on the revenue of the business
Unethical behaviour in the organization will impact the revenue of the business will see a
good rise but for short period of time but after some sort of the period revenue of the business
will fall very smartly. Reason behind the same is that in the initial stage as organization was just
focusing on the revenue and overlooking different factor in the organization. This has eventually
helped the company in improving the level of revenue of the organization in short run. This will
increase the revenue of the company. Looking at the bigger or the wider picture in context it can
be said that it will impact the revenue of the business in the negative way (Koh, Scully and
Woodliff, 2018). Reason behind the same is that unethical behavior of management in the
organization used to impact the growth of the employee in the organization, this eventually
means that organization is not able to maintain a good sort of human resource in the
organization. Another reason behind highlighting the same is that unethical behaviour in the
organization also used to increase the employee turnover in the organization. As employee does
not love to the organization. This eventually used to impact the performance of the business and
result in downfall of revenue of the business in long run. Also unethical behavior in the
organization will promote wrong image of the company in the market in front of the employee
who are looking to join the organization. This eventually means that organization has to make
extra benefit in term of cost and efforts to recruit new employee in the organization. This will

eventually lower down the revenue of the company in the market, as cost of the company and
revenue of the company is in the negative relationship with each other.
Not only that, unethical behavior of the company will eventually impact the good will of
the company in the market, this is not that good sign of the company. As all the consumer in the
market always look to use the services of the company who is having good name in the market,
this eventually means that sales of the company will fall in the organization. Fall in the sales of
the company will eventually means lower down of the revenue of the company in long run.
Also, working environment of the organization is impacted by the unethical behavior in the
organization. Impacted working environment in the organization will have indirect impact on the
revenue of the business. Looking at all of this above organization should not allow to operate the
unethical behavior as it may increase the revenue for sort period but it will be difficult to go
forward with the same in the long run (Karabay, Elçi and Akpınar, 2018).
Impact of unethical behaviour on shareholders of Boeing's
It can be said that unethical behaviour of company might be impact on overall business
function along with their relationship with shareholder and business partners. It impacts on
Boeing's shareholder negatively, crash of second Boeing Max 737 aircraft within different
months had moved airline sector to deploy their continuous post-modern method. Max 737 staff
members and Boeing owner are the two main stakeholder of this company. They are highly
accountable for safety of passengers, but workers avoid issues arise in aircraft and do not
consider it as major concern that effect people live, they all are died in plane crash. It can
consider as unethical behaviour of staff which affect negatively on their job role. Unethical
behaviour impact on workers job, and they had to face legal issues that effect longer in their lives
(Lawrence and Thornton, 2017). Along with it, firm doe not permit all above things to continue
to operate because it affect negatively for example, owner or leader of Boeing company also
affected due to unethical behaviour because they only focus on its business growth more than
consumer safety as it decreases its revenue and market share more than last few years after plane
crash.
Impact of unethical behaviour on customers of Boeing's business
Unethical behaviour of company effect every aspect of business such as consumer base
(Clark, Rose and Myers, 2018). Due to lack of concern and safety many people lost their lives as
it impact on consumers of Boeing's, people do not prefer to travel in Boeing aircraft after crash

of Max 737. Ultimately it occurs when they effect how customers view firm. Organization
ethical missteps cause their passengers to lose faith and trust, consequences will be catastrophic,
specially in area with a low switching cost. Boeing is public service firm, its unethical behaviour
lose potential consumer and new as well. It directly impacts on buying and purchasing behaviour
of people, they think twice before utilizing company services and then switch to other airlines
who are able to show their concern and comply with consumer safety law. Potential passengers
share their personal experience while using the services of company as let other know about poor
and unethical practices of firm, that leading others to stay away from such organizations like
Boeing's, it further damages chances of business (Brown Jr, 2018).
Consumers always seek to obtain better service and quality products, but unethical
behaviour of company impact on it negatively. People switch to other firm and suggest other as
well, do not drive towards those companies who behave unethically. There is no upside to
unethical behaviour, it means that firm is extremely lax in planning their business and lack
consumer focus. It is theorized to have an asymmetrical influence on clients purchase behaviour
and attitude. Unethical behaviour of company towards their customers will more negatively
impact on people attitude than positive. As organization cannot be able to retain their number of
passengers with its business for long and gain attention of new one, which is not suitable and
appropriate for growth of companies.
CONCLUSION
From above analysis it has been concluded that ethical missteps towards company such
as Boeing put negative impact on its overall business growth and profitability. They face many
issues and challenges after Max 737 crash, this incident highlight the unethical practices of cabin
crew member including pilot. It impacts market share, business growth, sustainability,
productivity and consumer base. From above analysis, it has been summarized that unethical
behaviour can outcome significant fines and financial loss. It drops in profit margin of company
and increase legal obligation that effect negatively on its market reputation and position. From
above evaluation, it can be said that ethical missteps in company lead to very major
consequences which consume time and money of organization in trying to repair their brand
reputation and legal problems that arise depending on severity of above situation.

Recommendation
 After going through the report it has been recommended to Boeing that they can invest
toward training of the employee, this will reduce the revenue of the company in the
starting stage but doing the same in the organization will help the company in improving
the revenue in long run. Reason behind the same is identified that with the help of
training to the employee organization will able to maintain a good amount of the human
resource in the organization this will eventually help the company in improving the
revenue for the organization in a long run.
 After analysing the above study it has been suggested to organization that they can focus
on consumer safety, because it helps to make their brand reputation in market place better
than its competitors. Firm must assure passenger safety and privacy, ground handling
staff must comply with law and adhere to it. Recheck systems in aircraft and hire skilled
applicants who are able to address technical issues before take off and after landing at
parking area.
 Furthermore, unethical behaviour impact on shareholders of company which is not
suitable for its growth. In order to reduce the negative affect, Boeing recommended
guiding workers how to behave ethically and practices accordingly. CEO of company
make clear statement about all circumstances and explain it briefly so it clear the negative
perception of shareholder towards them.
 It has been suggested to Boeing that they need to retain their consumers and gain
attention of new one by social media marketing. Management must show their concern
towards consumers and implement new system that detect issues occur while providing
services. Ground handling staff should check and assure safety of passengers, clean
setting areas before arrival and after departure that keep environment clean and ensure
firm concern for customers.

REFERENCES
Books and Journals
Brown Jr, J.R., 2018. Shareholder Proposals and the Limits of Encrypted Interpretations. Vill. L.
Rev.. 63. p.35.
Chang, V., Ji, Z. and Arami, M., 2019, May. Privacy and ethical issues of big data in the airline
industry. In 4th International Conference on Complexity, Future Information Systems
and Risk (pp. 139-148). SciTePress.
Clark, M., Rose, S. and Myers, A., 2018. The ‘dark side’of customer relationships-determining
the dark side.
Fairchild, R.J. and Marnet, O., 2018. Fraud-Perception, Superegos, and Cultural Spread of
Unethical Behaviour: Theory and Evidence from Enron. Available at SSRN 3283883.
Karabay, M. E., Elçi, M. and Akpınar, Ö., 2018. Analysing the Effects of Unethical Culture and
Organizational Commitment on Employees’ and Managers’ Unethical Behaviours:
Evidence from Turkish Insurance Industry. In Regulations and Applications of Ethics
in Business Practice (pp. 77-95). Springer, Singapore.
Koh, H. P., Scully, G. and Woodliff, D. R., 2018. Can Anticipating Time Pressure Reduce the
Likelihood of Unethical Behaviour Occurring?. Journal of Business Ethics. 153(1).
pp.197-213.
Lawrence, P.K. and Thornton, D.W., 2017. Deep stall: the turbulent story of Boeing commercial
airplanes. Routledge.