Boeing Business: Ethical Failures and Performance Impact Analysis

This report provides a comprehensive analysis of Boeing's ethical challenges and their impact on its business performance. It examines the company's recent ethical failures, including the 737 MAX crashes, and their consequences on customer trust, revenue, and shareholder confidence. The report delves into the significance of business ethics, emphasizing the importance of customer safety and ethical conduct in the aviation industry. It explores the impact of unethical behavior on Boeing's reputation, revenue, shareholders, and customers, highlighting areas where the company has faced negative consequences. The analysis includes recommendations for Boeing to regain customer confidence and improve its ethical practices, such as implementing advanced technology, providing better training for staff, and adhering to ethical business responsibilities. This report is a valuable resource for students studying business ethics and related fields, providing insights into real-world case studies and the importance of ethical decision-making in business.

Academic and
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TABLE OF CONTENT
Executive summary.....................................................................................................................................3
INTRODUCTION.......................................................................................................................................4
ANALYSIS.................................................................................................................................................5
CONCLUSION...........................................................................................................................................8
RECOMMENDATIONS.............................................................................................................................8
REFERENCES..........................................................................................................................................10

Executive summary
The report has explained various scenarios of business ethics, responsibility towards
customers and the various factors which enable company to get high success within future
perspectives of business. Report has analyzed the problems which Boeing aircrafts have gone
through in recent years, which have lowered its goodwill among world and the various
recommendations which can leverage high performance in various departments.
INTRODUCTION
Business ethics refers to aspects of business conduct in an organization where entire
functioning within departments is performed with utmost clarity in functions for bringing utmost
satisfaction among customers. Ethics can be understood as fair construction of all management
functions and keeping safety and preferences of customers in offering products and services first
before profit in sales. Business ethics enables company to get high rank in competitive industry
among other new brands or companies, with high goodwill and reputation ethics enable to
produce more leveraged functional performance among revenue profitability. This report
explains Boeing Business which has gone under various changes in the recent scenario due to
slow competitive growth and less innovation in machinery of aircrafts, which have lowered its
productive sales and goodwill among people (Crane, Glozer, and Spence, L., 2019).In October,
189 people were killed in Boeing 737 air flight in Indonesia when the aircraft crashed into sea
after 13 minutes of take –off. And later in 2019, 157 people lost lives when another aircraft of
Boeing nose-dived into countryside which was another major accident occurred due software
flaws and issues within sensors. It was found in investigation MACS, which is main component
designed to keep flight stable was malfunctioning and there were airspeed issues detected within
fight. These incidents affected reputation and goodwill of Boeing Company around world due to
which Federal Aviation Administration has banned the jets. Significance of reputation can be
analyzed by the fact it is highly important to gain customers strength and confidence within
services, profit and revenues are correlated with reputation. The main aims of this report is to
analyze the various parameters where Boeing business lacked the strength, technological tools
which needs to be restored and are responsible for accidents. Report in elaborates company by
putting profit before safety are not able to gain long term success in industry and are less
competitive in gaining customers goodwill.

ANALYSIS
In the changing dynamic business world, companies in aviation industry need to bring in
large innovative technology and advanced machinery which are important parameters in gaining
customers confidence and long term stability. Boeing business has gone into slow productive
range due to less customer support affected by the latest crash incidents in world where many
people lost their lives. Due to sensor problems and untrained air pilots, with major weakness in
technology used within components of wings the aircrafts are losing its efficiency with large
margins. Company reputation has highly been degraded with the huge competition among other
brands and low capacity within internal structure to bring innovation in services. Boeing airlines
have preferred profits first before customer’s safety standards, due to which relatively they have
lost confidence within company operations (Rodríguez-López and Souto, 2020).
Boeing aircrafts are not up to mark with the technology factors in machinery of aircrafts,
where it has lost the factor of gaining confidence among public. Recent accidents around world
due to negligence of air pilots and technical staff to check the parameters of technical
equipments, sensor problems and airspeed issues have made the company to loss its reputation.
The company has been facing decline in major operations of efficiency where revenue margins
have been massively hit due to low customers opting for airlines services. Below are the various
paradigms where company has been negatively impacted due to unethical behavior among
customers, low cultivation of integrity within information and less trained staff members.
Aim of report: To analyze business criteria of Boeing company which have affected growth and
parameters development, which have resulted in slow performance among gaining customers
confidence. The impacts of unethical behavior on Boeing company reputation, goodwill and the
potential areas where it needs modification.
Impact of unethical behavior on Boeing Reputation
The unethical behavior conducted by Boeing business where it has lately kept hidden
various essential information among customers about the internal management functions, old
technology forms used in aircrafts has severely affected customers goodwill and confidence.
Boeing Company has lately been insufficient in continuing the operations with high efficiency
due to latest accidents where with sensor problems and airspeed issues in aircrafts airplanes are

not working at optimum levels. The company business services should be continued only there is
innovation built within technology usage of aircrafts, and management should address all
concerns of public related to its operational structure. Unethical behavior not only diminishes
customers gained confidence in past, but impacts worldwide customers’ goodwill negatively on
various grounds. There should be proper training of pilots to operate flights in difficult
conditions where there should be main focus built in enhancing their competencies, inducing
advanced skills which will enable company to serve customers with best optimum efficiency (de
Bakker, Rasche and Ponte, 2019).
Impact of unethical behavior on Boeing revenue
The unethical behavior of Boeing Company has drastically impacted company revenues
with large margins, where it has vitally shown huge decline in customers segments. The
management has been highly inefficient in delivering the benchmarks of goodwill among
customers and there has been repeatedly 2 major accidents caused by Aircrafts where there was
shear negligence in checking the internal parts of technology. The reputation of company has
been highly diminished which have been recognized with decline in revenue shares, future
profitability leverage and unable to enter into new segments into market share. Top management
has been highly inefficient in cooperating with the demands of customers where there is high
decline in innovation within machinery parts (Pitt,Eriksson and Plangger, 2019). The business
scale has gone into complete loss and there has been implied shut down by Federal Aviation
department, where further in cooperation of business activities should be given only when
management integrates new functional technology and safety measures are strongly followed.
Continuation of operations should be governed only when company takes full responsibility of
all flaws within machinery standards and internal structure where new advanced machinery is
implemented for further customer confidence attainment.
Impact of unethical behavior on Boeings shareholders
The unethical behaviors of company to give importance to profits more than health and
safety of public have degraded its image among other companies in aviation industry.
Shareholders are highly disappointed due to recent accidents within aircrafts where negligence of
safety standards was the foremost factor investigated (David and James, 2019).Company

shareholders are withdrawing their shares due to stoppage in continuation of services, low
quality integration with technology and low confidence among customers. Shareholders
percentage has been highly declined and no people are further seeking for investment in
company, which impacts its internal strength majorly. Boeing shareholders have been neglected
by important information on various fields of its expansion and working conditions due to which
there is no confidence among market share. Shareholders are found to be withdrawing their
contribution among company shares due to less potential growth among industry, low class
safety standards which have impacted its presentation among customers worldwide. People
worldwide prefers to invest in shares of company whose technology is advanced, legal practices
of company delivers high growth and there is full communication and delivery of commitment
from top management to shareholders. Continuation of company operations at Boeing business
should be governed, only when company integrates fully customized high quality standards of
services for customers and are legally taking full responsibility of all functioning’s (Pitt,
Eriksson and Plangger, 2019).
Impact of unethical behavior on Boeings customers:
The unethical behavior of Boeing Company on customers can be analyzed by the fact that
major parts of world have lost trust and confidence among airlines due to old technology. Recent
accidents where there was major loss of human lives have created havoc in world and resulted in
shutting down of company operations and slow relativity within public. Boeing aircrafts due to
negligence of safety standards and giving more preference to profits have highly demoralized its
value globally. Moreover the top management is not reportedly highly active in dealing with
customer’s grievances and feedbacks on websites and there is no productive growth of
innovation within services. Boeing airlines have lacked massively in coming up with high
quality of services and benchmarks of company standards, also there is tough confidence among
airlines in aviation industry. Customer’s preferences are not served properly due to which there
has been high decline in company goodwill, long legacy incorporation and the synergy with
which management serves customers are not productive. Continuation in company operations
should be given only when Boeing management holds responsibility of safety standards within
customers highly evolves its structure with innovations and in cooperates new technology within
all machinery (Fotaki,Islam and Antoni, 2019).

CONCLUSION
This report can be concluded with explanation that business growth capacity within
customer’s market share depends on ethical practices, strong quality standards and high legal
usage of new innovation within technology integration. Companies should not neglect
customer’s safety standards and give preference to profits as their first priority as when
customer’s preferences are not satisfied, unethical business practices highly lessens brand
reputation in world. Aviation industry has tough competition among companies and brands,
where new legal laws pertain to companies for using new upgraded sensors and machinery
within aircrafts. The report has concluded business activities should be governed with strong
ethical standards and its functional responsibility of company to take high precautions in keeping
all customers safe (Li, Z., 2020). Report has concluded with detailed explanation on recent
accidents by Boeing aircrafts where large people were dead, due to recognized improper sensors
and airspeed issues within internal machinery. Company reputation has been massively impacted
due to these factors and safety standards of customer’s negligence, where company has been
unable to take full responsibility. Impacts of revenue decline, low shareholders confidence and
slow growth of innovation has resulted in diminished brand value in globe. Boeing Company has
been stopped to function its operations by the Federal Aviation Association, due to high
percentage of accidents caused by airlines and emergence of investigation factors which have
shown internal parts of aircrafts are old and inefficient.
RECOMMENDATIONS
Boeing Airlines Company can reach the optimum functional levels within industry and
gain customers’ confidence by bringing large factors of integrated growth in technology, using
latest machinery in internal parts which will measure safety standards of customers. Top
management must hold responsibility of all decisions and periodic meetings shall be held within
internal stakeholders, shareholders to update them with all information regarding business
activities. Customer’s confidence and brand reputation can be earned back only when company
actively reaches out to all ethical business responsibilities, legally incorporate high ethical
practices to reach customers satisfaction benchmarks. Pilots and staff crew members should be
given advanced training to take care of customers in all dynamic situations at aircraft, this will
make employees highly functional towards their responsibilities. There should be various change

models of business integrated in company for structuring high growth and revenue scales in
future which will not only elevate its functioning scale, but also make the management
responsible towards customers and public around world. Lewis change model in which 3 phases
of unfreezing, freezing and refreezing the changes in company is one of the most innovative
model implementation of which will help company to evolve in its functioning’s. Unfreezing
phase will investigate the various old technologies which needs to be changed, capital structure
which needs to be investigated will be decided at this phase. Management must hold all
perspectives view which will help in gaining high confidence among customers and regenerate
future revenue scales (Pinto, Herter and Ferreira, 2020).
Freezing phase will enable company to train staff, employees in company along with air
pilots to evidently use latest technology and high equipped machinery in all functions. Later
refreezing phase will check the parameters of innovation and investigate the correct correlation
of outputs within services. Goodwill raised shall be evaluated among customers by seeking their
views among various paradigms, websites revenue and interaction on preferences of customers
shall be checked. Final check will provide data and outcomes gained on all perspectives of
revenue, leveraged profits and safety measures which will attract new segments of customers
too. These measures and recommendations will facilitate company Boeing Business to rise up its
services within competitive industry, leverage high scale goodwill and confidence among public
which will contribute in reaching out to set benchmarks.

REFERENCES
Books and Journals
Crane, A., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press, USA.
David, M. and James, W., 2019. Business ethics. HAL.
de Bakker, F. G., Rasche, A. and Ponte, S., 2019. Multi-Stakeholder initiatives on sustainability:
a cross-disciplinary review and research agenda for business ethics. Business Ethics
Quarterly. 29(3). pp.343-383.
Fotaki, M., Islam, G. and Antoni, A. eds., 2019. Business Ethics and Care in Organizations.
Routledge.
Li, Z., 2020. Impact of Executive Changes on Goodwill Impairment. Modern Economy. 11(2).
pp.561-569.
Pinto, D. C., Herter, M. M. and Ferreira, M. B., 2020. Reducing Ingroup Bias in Ethical
Consumption: The Role of Construal Levels and Social Goodwill. Business Ethics
Quarterly. 30(1). pp.31-63.
Pitt, C., Eriksson, T. and Plangger, K., 2019. Business Ethics and Corporate Social
Responsibility Reciprocity–A Study of Selected Companies. Business Ethics and
Corporate Social Responsibility Reciprocity–A Study of Selected Companies.
Pitt, C., Eriksson, T. and Plangger, K., 2019. Customer goodwill: how perceived competence and
rapport influence eWOM’s diagnosticity of peer-to-peer and professional access-
based services. In Handbook of the Sharing Economy. Edward Elgar Publishing.
Rodríguez-López, Á. and Souto, J. E., 2020. Empowering entrepreneurial capacity: training,
innovation and business ethics. Eurasian Business Review. 10(1). pp.23-43.