Boeing Case Study: Impact of Unethical Behavior on Business Operations

This report analyzes the Boeing case study, focusing on the ethical and professional skill failures that led to the 737 MAX crashes. It examines the role of ethics, professional skills, and the impact of unethical behavior on the company's reputation, revenues, shareholders, and customers. The report delves into the consequences of software flaws, lack of adherence to procedures, and sensor issues, and how these failures impacted the business. It also explores the importance of ethical behavior, the role of managers, and the need for the company to follow ethical principles to maintain its operations and rebuild trust. The report provides recommendations for Boeing to improve its ethical practices, adopt new technologies, and enhance its relationships with stakeholders, emphasizing the importance of ethical behavior in business operations.

ACADEMIC AND
PROFESSIONAL
SKILLS
Table of Contents
Table of Contents.............................................................................................................................2
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Role of ethics in case Study in relation to Boeing business........................................................3
Impact of unethical behaviour on Boeing’s reputation and should it allow to keep continue.....3
Impact of unethical behaviour on Boeing’s revenue...................................................................4
Impact of unethical behaviour on Boeing’s shareholders............................................................5
Impact of unethical behaviour on Boeing’s customers................................................................5
Recommendation.............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCE..................................................................................................................................9

EXECUTIVE SUMMARY
Boeing business is related to behaviour that states if someone is going to start its business
then it should follow all laws and legislations which are important to run. On the other side,
professional skills means to get training and experience in their working so challenges can be
accepted. This report is based on case study of Boeing business that states many people were
killed due to not following laws and unethical behaviour and problems. This involves knowledge
about ethical and unethical behaviour that influences operations.
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INTRODUCTION
This report is based on case study of Boeing business which states that many people were
killed in a Boeing 737 Max Lion Air flight Indonesia. The reason behind this flaws in software,
not following procedure exactly by pilots, air speed and sensor problem due to which has
impacted on business negatively. If such business is following all laws and regulation in relation
to business then it can run effectively and could maintain trust of people. This report will help to
figure out like how organisation is handling problems, employees, and corporates with other
team and positive feedback which helps to run a business. This is important for Boeing business
to follow all laws and business ethics which can helps to operate a business continuously. This
case study will help to increase knowledge about managers, revenues, customers and
shareholders in context to ethical behaviour which support to operate business continuously
(Case of Boeing business, 2020). Ethics are consider as moral principles and values which
governs a person’s behaviour or conduct activities. Mainly this deals with brand of principles
and values which are followed by businesses in order to run a business and maintaining
profitability. This is important for all to maintain ethical behaviour while working which helps to
get new idea and supports to deal with typical situations. A professional skill includes
capabilities that are technical skills or communication skills that are learned as part of the course
work that no one teaches. In comparison, academic skills require the study of knowledge, rather
than the direct application of scientific or practical skills. Skills are important for every person
which helps to accept the challenges and encourages working effectively (Bhatia, 2014). Many
of the technical skills that are required in career are project management, crisis management,
leadership, training, etc. These skills are needed in business, since professional skills determine
an employee's success and failure in the market.
MAIN BODY
About organisation
Boeing is a type of business which is providing different types of services such as
military aircraft, commercial aircraft and satellites which helps to maintain a business
effectively. In 1934, manufacturer was acquired to be separate from air transportation. It was
seen that 189 people were killed in a Boeing 737 max Lion Air Flight in Indonesia in October
2018, when airplane plunged into a sudden nosedive 13 minutes after take-off. In march 2019,
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Nose-dived airlines venture into the countryside south of Addis Ababa. The crashes was blamed
for software glitches and sensor issues, in particular the Manoeuvring Characteristics
Augmentation System (MACS), which was designed to keep the flight steady was
malfunctioning, forcing its aircraft's nose down, overcoming any pilot behaviour. In past period
this was fastest aircraft selling company that sold out approximately 700,000 commercial flights
in a week. In current period the productivity and profitability of organisation is going to be down
continuously due to not focus on ethics and employee needs. Moreover, there is lack of some
features in aircraft due to which sale of organisation is going to be down (Ciulla, 2014).
Role of ethics in case Study in relation to Boeing business
Ethics definition – Ethics is considered as study of human behaviour which states that
what is right and wrong. Different behaviour is shown by people as according to their nature that
encourages them to work by showing their interest. Ethics is a philosophy which defines the right
from wrong for the civilization. Ethics is playing an important role in this case study as pilots
should follow the ethical principles and software system properly which helps to maintain the
business activities effectively and complete the task. They should be in regular contact with
engineers and other operation executive so crashing chances can be reduced. It is a valuable tools
that helps in addressing the righteousness of human beings by providing them with the collection
of various kinds of appropriate and wrong, good or evil directions of operating. These are needed
for modern society well-being, and entities 'overall good. This is important for organisation and
employees to behave well and maintain attractiveness in organisation so operation and business
can be maintain in effective form. Due to unethical code and arrogance of software engineer a
heavy loss has bared by Boeing business where number of people were killed to lack of
efficiency. If people are able to make good behaviours and relevancy in their businesses (Coates,
2016). People are behaving good and sharing their problems then it can face all problems and
challenges efficiently that helps to work accordingly and increase profitability. The ethic’s
philosophy is very crucial and playing important role in professionalism and academics because
it is considered as essential part of organisation that states how to behave in working. Due to
unethical behaviour such as software flaws and sensor issue the operation and working capacity
of flights has been down which has affected a business negatively (Dilshad, Hussain and Batool,
2019).
Different topics are covered in case study that are:
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Impact of unethical behaviour on Boeing’s reputation and should it allow to keep continue
Managers - In Boeing business managers play an important role. They ensure that all the
operations are carried out in accordance with the plans and programmes, and in accordance with
standards. The ethical issue was of managers being dismissed of laws to run a Boeing business.
Many managers had their roles and responsibilities dismissed. The impacts, pilots were not able
to perform their duties effectively which has reduced the reputation of such business.
In Boeing business there was unethical behaviour which has impacted negatively on
organisation’s reputation such as airplanes were crashed shortly after take-off due to which many
people were died. Due to this people have lost their trust and confidence on such organisation
and employees did no0t get ready to work here. This organisation was not following any
principle an system to keep safe people and not offering them other services which reduced the
interest of people and they move on towards others organisation. To maintain a business at good
position it is needed to have ethical behaviour that can help to understand what is wrong and
what is right. If an organisation is having unethical behaviour that mean it is not maintaining it
business effectively (Case of Boeing business, 2020)
And yes this organisation should be allowed to continue to operate by following such
principle such as the fundamental Canon, Informed consent and Precautionary principle.
According to Fundamental Canon national society of professional Engineers code of Ethics
states that engineers in Boeing should hold paramount the safety, welfare and healthy of public
that can help to know incident and problem which can arise in organisation and get them a best
solution to run a business (eters, 2015). The second principle which is Informed consent says
that management should allow and getting permission before conducting a healthcare
intervention on a person. Such as in Boeing Pilots were never informed that new version of
737MAX8 model has been arrived that with the new automatic anti stall system not following a
single sensor that limits the operation and occurred an accident. This principle will help people
as it accepted the medical ethics where pilots are responsible for making the safe operations for
their products and services. And last precautionary principle states that pilots should follow such
formulation in which engineers should take safeguards and other action against uncertainty and
non-eligible threats. By following such principle Boeing business can keep continue its operation
that will help to maintain ethical behaviour and increase organisation reputation (Coates, 2016).
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Impact of unethical behaviour on Boeing’s revenue
Revenue - To earn more earnings, all the Boeing perform work. This is the amount of
money the company get during a given period of time by providing products and services.
Revenue describes the return on profit. The main issue in Boeing business is revenues reduction
due to decreasing number of passengers as after crashed of fight people have lost their trust and
they selected others to obtain services. This business can operate by maintaining ethical
behaviour and following all laws which are related to business such as accounting principles,
proper maintenance of flights and business in ethical manner.
Unethical behaviour is the main crucial factor which affects the business organisation and
its revenues negatively. As number of people were killed due to ignorance of safety and software
system that can keep safe people and maintain revenues properly. The unethical behaviour of
Boeing business affected revenues negatively as people started to choose other option to get
airline services which has reduced the number of customers so this has impacted negative. This
is important for organisation to maintain ethical and good behaviour in their organisation and
provide healthy and safety to people which helps to retain customers and increases revenues.
Due to unethical behaviour employees and customers do not started to work and get selling of
products and services were goes down due to which profitability of such organisation has been
challenged (Wang and et. al., 2019). To keep it continue and operating business there is need to
adopt new technology and system in order to increase sale of their aircrafts. For this, it has to
design aircrafts with special features and safety purpose that can help to maintain customers and
increase revenues (Cottrell, 2017).
Impact of unethical behaviour on Boeing’s shareholders
Shareholders: These are consider as owners of company who have right to get
information and share their ideas. In Boeing business, the main ethical issue was not sharing
information lose in profits value which has decreased the profitability. For operating,
management of such business should involves in all activities and take suggestions to eliminate
ethical issues and run it ethically.
Shareholders are the main assets of company who invests their money on organisational
activities in order to keep it continue and getting higher returns. They have higher interest and
high power to make decision in organisational activities. Therefore, it is important for
organisation share all information and new technology with shareholders so they can give their
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opinions and helps to continue a business effectively (Percival, 2014). In Boeing business,
shareholders are playing important role such as they make investment in order to make aircrafts
by purchasing raw material and adopting new technology which helps to increase organisational
productivity and profitability. Due to unethical behaviour in chosen organisation the
management has not consent with shareholders who impacted negatively as they stopped to
invest which has created challenges to collect money and run their business effectively. On the
other side, it has defined that this business can be allowed further in case of support of
shareholders where management need to behave properly and ethically so they can influence
positively and make decision to invest more. While running business managers should share
information and data relation to aircrafts and its productivity can be increase. Without support of
shareholder an operation of business can be difficult which can affect the productivity and selling
activities negatively. This is important for Boeing business management to maintain ethical and
good relationship with their shareholders by disclosing all information and new technology that
helps to take right decision on time and maintain effectiveness of business (Stewart, 2014).
Impact of unethical behaviour on Boeing’s customers
Customers: In Boeing business, customers are considering as passengers who obtain sir
services. The ethical issue was not providing safety and security to customers under unethical
behaviour which has impacted negatively on business. To operate it, ethical laws should be
followed by engineers, management and pilots where they need to make sure their safety and
security.
Customers are god for any business who decisions the goodwill and profitability of any
organisation. The business activities and success of any company depends of customers who
identify their needs and make decision to buy particular products and services by evaluating
various options (Houdyshell and Kirk, 2019). This is important for Boeing business to focus on
customers and provide them services according so they can make decision to further by and
increase organisational goodwill and profitability. It is also important for Boeing business as they
obtain flight services which helps to maintain revenues and increase organisational productivity.
In this organisation management are behaving unethically which has impacted negatively as in
the month of march 2019 many people were killed to software flaws and sensor issue which has
reduced or eliminate the trust of customers and they started to obtain flight services from others
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which has impacted more negatively. Due to this various challenges has faced by organisation
and profitability were going slow down.
It has examined that this can be operate its business continually by attracting customers and
providing them health and safety that can create a trust among people and encourage them to buy
services. Moreover, this is important for organisation to follow new technology and software
system where pilots and engineers become responsible to provide good health and safety to
people and increase number of passengers. So Boeing business can be operate efficiently and
will maintain good performance (Critchley, 2014).
CONCLUSION
From the above report it can be concluded that professional skills and academic skills are
different which helps to run a business by accepting challenges. There should be good ethical
behaviour while running a business which increases organisational revenues. If organisation is
having unethical behaviour then it impacts negatively on customers, revenues, shareholders and
productivity. Therefore, it is essential for any business to maintain ethical and good behaviour
which can helps to increase business activities effectively.
Ethics are playing important role in Boeing business that means should follow principles and
values which helps to run a business and operate it continuously. Unethical behaviour is creating
many challenges and problems for business and reduce customers trust. To maintain a business
effectively and reducing problems by maintaining ethical behaviour and principles
(Wahyuningsih, 2019). Skills are refers as knowledge and capabilities which is used by people to
get completion of their work effectively by managing and systematically. The mean of academic
skills is when people learn from schools and other others institution for increasing their
knowledge.
Recommendation
From the above case study it has recommended to management of Boeing business to focus
on health and safety to people who are travelling in airplanes and flights. Pilots should take
responsibility of customers’ safety as they will keep them safe and will let them reaches where
they wants. There should follow engineers software and technology properly which can help to
accept the challenges and increase organisational productivity. Moreover, managers should
create a good culture of shared accountability to offer safety and best accommodation or food
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services in planes that can attracts customers and make further decision to buy more. There
should maintain good and ethical behaviour among people who be always ready to accept
changes and maintain the business activities efficiently so business can be continuously (Gess,
2015).
 Manager of Boeing business should adopt training and development programme
and should hire experienced pilots who can provide safe journey to customers. They
should adopt monitoring techniques, software and proper maintenance of their
equipment that helps to save from incidents.
 The Boeing business has suggested maintaining the ethical behaviour in their
organisation that can help to identify the problems which can occur and get them a
best solution. There are different laws and legislation which are Autonomy, non-
maleficence, justice, veracity and confidentiality which helps to run a business
effectively.
 In context to shareholders - The management should follow all regulations and
share the information with employees and so future uncertainty can be denied. If
people are keeping ethical behaviour and sharing all important information with
customers then only a trust can be created which helps to run a business effectively.
 It is recommended to Boeing business to follow the ethical rules and to gain the
customer trust again it should follow all principle and software properly which helps
to provide services effectively.
 In context to customers - Moreover, there should be proper evaluation of engines,
sensors, updates, software and should follow exact procedure which helps to operate
the business and increasing profitability continuously by influencing customers.
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Percival, T., 2014. Medical ethics. Cambridge University Press.
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Case of Boeing business. 2020. [Online]. Available through:
< https://www.theguardian.com/business/2019/apr/29/boeing-boss-rejects-accusations-
about-737-max-jets-that-crashed >
(Dilshad, Hussain and Batool, 2019) (Wang and et. al., 2019) (Wahyuningsih, 2019) (Houdyshell
and Kirk, 2019) (Costa and et. al., 2020) (Dewi, Nurkamto and Drajati, 2019) (Ali, Qoura and
AlSheikh, 2019)
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