Boeing Business: Ethical Issues, Analysis, and Recommendations Report

This report examines the ethical issues surrounding the Boeing business, specifically focusing on the 737 Max crashes and the company's response to them. The analysis delves into technical malfunctions, including faulty sensors and software flaws, as well as concerns about pilot training and the Board of Directors' handling of the incidents. The report highlights instances of unethical behavior, such as prioritizing profitability over public safety and ignoring warnings about safety issues. The conclusion emphasizes the importance of ethics in business and the need for Boeing to address these issues to regain public trust and ensure safe flight operations. Recommendations include updating software, investing in pilot training, and integrating ethical practices into all aspects of the business to prevent future accidents and maintain the aviation industry's ethical standards. The report underscores the need for Boeing to prioritize safety and ethical conduct in all its operations to avoid further incidents and rebuild its reputation.

Academic and Professional Skills

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysis............................................................................................................................................1
Importance of ethics in business..................................................................................................1
Ethical issues in Boeing Business................................................................................................2
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Ethics is that branch of knowledge, which mainly deals with moral principles and
perceptions about right thing over something wrong. It can be defined as philosophy or certain
codes of morals, which practiced by an individual or group (Warith, 2019). In context with
business, ethics refers to code of conduct that govern about ethical standards of a company.
Therefore, concerning on the moral judgements about anything wrong or right, it becomes
essential for every organisation to operate business ethically. People that associated with
companies must know about right course of actions, so that occurrence of ethical issues could be
minimised (Bouwer, 2019). The present report is evolving about a case study of Boeing business,
to determine if this company is engaged any unethical behaviour. As per this case, it has been
found that in 2018, due to sudden nosedived by Boeing 737 Max Lion Air Flight, it has crashed
into Indonesia, where near about 189 people have lost their lives. Similar case happened in 2019,
which results in 157 deaths of people. Considering similarity of both case, allegations have been
made on software flaws and some issues related with sensors like MACS (Manoeuvring
Characteristics Augmentation System). However, CEO and Chairman has respond that it was
pilot mistakes and there were no issues regarding with software.
Considering this case of Boeing Business, the main aim of present report is to identify the
unethical behaviour and examined if respective company should allow to continue to operate.
For this purpose, a deep analysis will be conducted about importance of maintaining ethics in
business. This would help in determining about unethical behaviour in the mentioned case study
and recommendations will be given, for maintaining its ethical standard.
Analysis
Importance of ethics in business
Ethics are concerned on moral judgements of an individual or a group for certain course of
actions. In business, ethical beliefs and system of morals guides right values, behaviours as well
as decisions in business, that doesn’t harm others (Wang and Xu, 2019). In business, ethical
requirements include entire activities must be codified into law, with environment regulations,
labour laws and restrictions against any type of collusion. In case of companies found to have
any type of unethical behaviour then it highly effects on business reputation. In context with
aviation industry, safety depends on ethics and high professionalism, which is required by every
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associated people from designer to pilot, for ensuring safe light operations (Patankar, 2020). For
this purpose, before next flights it is essential for operators to concern about maintenance, in
terms of proper installation of entire mechanism. In case of any mechanical or software related
problem, flight has to be cancelled so that occurrence of major accidents which may involve loss
of lives should be minimised. Therefore, it is essential for businesses especially those, who are
involved in airlines sector to integrate ethics into curriculum (Peksatici and Ergun, 2019).
Ethical issues in Boeing Business
Since safety of aviation industry is highly depended on its ethics and professional code of
conduct. Therefore, before taking next flight, it is essential for each and every associated people
to govern about ethical behaviour integration into curriculum (Vo, Xiao and Ho, 2019). In
context with present case of Boeing Business, the ethical issues can be identified into following
way –
Technical Malfunctions
It has been found that CEO and Chairman of Boeing business has completely denied for
allegations that have been put on its two major crashes of flights. Through investigation, it has
been found that two aircrafts – Boeing 737 Max Lion Airlines and Boeing 737 Max Ethiopian
Airlines were involved in fatal crashes, due to technical issues (Tavlin, 2019). An optional safety
feature in software that installed in aircrafts used to alert timely the pilots about any technical
malfunctions which may cause major accidents. But due to lack of such safety features in Boeing
aircrafts, results into the severe accidents in 2018 and 2019, where lots of people have lost their
lives. A preliminary investigation conducted into Ethiopian Airlines 737 Max crash, it has been
found that due to faulty “angle of attack” sensor, that mainly helps in monitoring the inflight
position of plane, has resulted into fatal crashes of aircrafts (Satardien, Jano and Mahembe,
2019). Through erroneous readings from sensor, it activates the Maneuvering Characteristics
Augmentation System (MCAS) of aircrafts. Such system in aircrafts consists an auto-pilot
program, which encourages plane’s nose to dip down. In this case, due to faulty sensor, it has
activated MCAS in both cases, where without notification of alert to pilots, they have lost
controls of operations. This technical malfunction has resulted into fatal crashes (Rahanu and et.
al., 2020).
Untrained Pilot
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Another main issue which has been found in this case study is related to allegations made
by Boeing’s Board of Directors, that it was not technical malfunctions, only pilots are
responsible for both of the fatal crashes (Warith, 2019). As per their perception, it has been
revealed that due to not following the exact procedure, MCAS and safety features haven’t work
correctly. In this regard, through examining refusal of CEO and Chairman to admit about any
flaws in software, indicates that pilots are not trained professionally for using this software,
which indicates ethical issues about Boeing business. Because it is essential for every company
that they must follow regulatory laws i.e. before any flights, pilots must be trained professionally
(Wang and Xu, 2019). They must be trained to handle any technical issue during flight, so that
chance of major accidents can be reduced. Similarly, another main concerned issue is related
with airspeed, where wing components that helps in providing lift to aircrafts during take-off,
was found as susceptible to fractures. So, this also may be considered a major cause behind fatal
crashes of aircrafts.
Unethical behaviour
Through case analysis, it has been examined Board of Directors of Boeing had ignored
the warnings related to malfunction in pitch sensor from its standard safety package 737 Max
(MCAS). It has indicated the unethical behaviour of them, which has resulted into crash of two
flights with loss of many lives (Vo, Xiao and Ho, 2019). Along with this, in both accidents a
chain of events has been found that causes occurrence of accident. It includes, faulty sensors,
lack of safety operators, not properly trained pilots to handle such technical issues and
unresponsiveness behaviour of company’s BOD on both cases. After first case of Boeing 737
Max Lion Airlines’ fatal crash, if stakeholders take ethical actions regarding with software
updates then it would help in prevention of another crash which has happened just few months
later (Tavlin, 2019). Taking proper actions regarding with responsibility to maintenance, design,
build and any further options, could support the grounded 737 Max fleet or safest airplanes in
sky. So, considering the ethical issues, inappropriate respond of company’s Board of directors
and happening of two major accidents, Boeing Business has lost its reputation in aviation
industry. It has also faced issues related to rebuild the public trust on providing safe flight
(Satardien, Jano and Mahembe, 2019).
Moral issues
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After analysing whole case study of Boeing business, it has been analysed that main
ethical issue which arise in this company is related with concern to increase profitability, instead
of public safety. But as per ethical standard of aviation industry, it is foremost duty of
professionals that safety should take precedence instead of profits, in order to gain public trust
and run business ethically (Rahanu and et. al., 2020). Therefore, under this case, considering the
moral concern when any business in aviation industry has found to take its profitability over
safety, then it completely diminishes the company’s reputation. Along with this, happening of
two major fatal crashes just within few months, raise question about public safety in further
flights. In this regard, Boeing business must not allow to operate further, if it do not take any
actions for installation of updated software and corrective features (Peksatici and Ergun, 2019).
CONCLUSION
It has been concluded from entire case study that ethics are important for companies to run
businesses effectively. In case of any firm, if found to operate business unethically, then it highly
affects their reputation. Since, under this present assignment, case of Boeing business has been
studies, where due to faulty sensors, technical malfunctions and unresponsiveness behaviour of
company’s board of directors, has resulted into two major accidents, under which many people
have lost their lives. So, it raises allegations on moral issues that this company has put profit over
public safety. Therefore, considering this case, it has been evaluated that Boeing business must
be banned to operate further, till then all major issues have been resolved. If this action will not
be taken, then it may result into more similar cases of fatal accidents of plane crash. This would
be possible if Boeing business integrate ethical practices into its curriculum, range from design
to operations.
RECOMMENDATIONS
In order to maintain ethics and prevent business from further fatal accidents, it has been
recommended to Boeing to take essential steps. Because relatively the small mistakes in any
operations, could result in terms of occurrence of disproportionately dire consequences. To
balance the demands of public safety and profitability of business, this company requires to
avoid running the financially aground. This firm must take steps to update software, replace
older aircraft, wing component, sensors and more, that are evaluated to be less safe, with more
reliable models. This step refers to important way which Boeing airlines helps in ensure the
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proper safety of operation, before take-off any flight. Along with this, it needs to make more
investment in training programs, for enhancing skills and knowledge of pilots to instruct them
what safety procedures they need to take, in case of failure of any technology. As in both cases
of 737 Boeing accidents, aircrafts have been crashed during sudden nose-dived, therefore,
training for this procedure must be provided appropriately to pilots. Along with this, engineers
and technician team of Boeing also need to inspect regularly the aircrafts before flight off. This
would help in ensuring proper safety and prevent any failure of aircrafts. Along with this, since
ethical standards of aviation industry includes social responsibility towards environment and
public safety. Therefore, to maintain this standard, it is essential for Boeing to integrate ethical
practices into business activities, by responding immediately towards any failure of operations.
Along with this, it is also essential for this company to must concern on integrating regulatory
laws within business practices. This would help in maintaining company’s sustainable position
and prevent business for further allegations as well, if any case related to crash of planes could
happen in future.
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REFERENCES
Books and Journals
Bouwer, J. ed., 2019. Ethical dilemmas in the creative, cultural and service industries.
Routledge.
Patankar, M. S., 2020. Safety ethics: Cases from aviation, healthcare and occupational and
environmental health. Routledge.
Peksatici, Ö. and Ergun, H. S., 2019. The gap between academy and industry-A qualitative study
in Turkish aviation context. Journal of Air Transport Management. 79. p.101687.
Rahanu, H. and et. al., 2020. Health, safety, and well‐being through ethical behaviours in
computer and information systems development and deployment. Journal of Software:
Evolution and Process. 32(3). p.e2225.
Satardien, M., Jano, R. and Mahembe, B., 2019. The relationship between perceived
organisational support, organisational commitment and turnover intention among
employees in a selected organisation in the aviation industry. SA Journal of Human
Resource Management. 17. p.8.
Tavlin, L. J., 2019. Aviation Communication: Strategy and Messages for Ensuring Success and
Preventing Failures. Routledge.
Vo, T. T., Xiao, X. and Ho, S. Y., 2019. How does corporate social responsibility engagement
influence word of mouth on Twitter? Evidence from the airline industry. Journal of
Business Ethics. 157(2). pp.525-542.
Wang, Z. and Xu, H., 2019. When and for whom ethical leadership is more effective in eliciting
work meaningfulness and positive attitudes: The moderating roles of core self-evaluation
and perceived organizational support. Journal of Business Ethics. 156(4). pp.919-940.
Warith, M. F. A., 2019. Assessment of Green IT/IS Within the Aviation Industry Using the
Analytic Network Process Approach. International Journal of Hospitality & Tourism
Systems. 12(1).
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