Boeing 78y

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Boeing 787

2 Table of Contents Brief Background: ........................................................................................................................... 4 Reason for Choosing Boeing as the Case Study: ......................................................................... 4 Unethical Business Practices by Boeing: .................................................................................... 5 Design Flaws: .......................................................................................................................... 5 Lack of openness: .................................................................................................................... 6 Regulatory Influence: .............................................................................................................. 6 Moral Philosophical Bases Infringed Upon: ................................................................................ 6 Utilitarianism: .......................................................................................................................... 6 Deontology: ............................................................................................................................. 7 Virtue ethics: ............................................................................................................................ 7 Impact on Ethical Decision-Making and Stakeholders: .............................................................. 7 Impact on Stakeholders: .......................................................................................................... 8 Response of Leaders and Employees: ..................................................................................... 8 Recommendations ........................................................................................................................ 8 Enhance Safety Protocols and Prioritize Them Above All Else: ............................................. 8 Enhance Communication Transparency: ................................................................................. 9 Strengthen Ethical Culture: ...................................................................................................... 9 Implement Robust Whistleblower Protection Mechanisms ..................................................... 9 Closely Partner with Regulators: ............................................................................................. 9 Conclusion ..................................................................................................................................... 10

3 Brief Background: Boeing has a long and distinguished history since its foundation by William Boeing in 1916, making it one of the world's foremost aerospace and military firms (Kumar, 2022). The firm has been at the forefront of aircraft technology for well over a century, during which time it played a crucial part in the growth of the aviation sector. Boeing has its main office in Chicago, Illinois, although it sells its wide range of goods and services all over the world. Commercial and military aircraft design, manufacturing, and sales are among Boeing's major operations. Boeing's contributions to aviation's development are indisputable; the 707, 747, and 777 are all household names. Boeing is a major participant in the aviation industry since its planes are flown by airlines all over the globe (Kumar et al, 2021). The Boeing 737 Max, released to the public in 2017, is a innovative narrow-body passenger aircraft. It's an improved variant of the Boeing 737, already one of the most ubiquitous planes in commercial aviation. To better compete with Airbus's A320neo series, Boeing developed the 737 Max with improved fuel economy and cutting-edge technologies. Tragic incidents helped bring the Boeing 737 Max to the public's attention. Shortly after departure from Jakarta, Indonesia, on October 29, 2018, Lion Air Flight 610 crashed into the Java Sea, killing all 189 persons on board. All 157 passengers on board the Ethiopian Airlines Flight 302 were killed when it went down soon after takeoff in March of 2019. There was a connection between malfunctions in the aircraft's Maneuvering Characteristics Augmentation System (MCAS), which was installed to avoid stalling, and both disasters (Mazlan et al, 2022). Reason for Choosing Boeing as the Case Study: There are numerous strong reasons why Boeing was selected as the case subject for this review. The primary factor is the broad impact and media coverage that the Boeing 737 Max disaster received throughout the world. More than 400 people lost their lives in the two plane disasters involving Lion Air Flight 610 and Ethiopian Airlines Flight 302. This tragic incident on commercial planes has reverberated throughout the world, capturing the attention of the public and providing a compelling argument for ethical examination. Due to the nature of air travel and the lives at risk, aviation safety is also an ethical priority (Pandian et al, 2020). The disasters prompted serious inquiries into whether or not Boeing had lowered its safety standards to

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4 increase profitability and competition. This subplot of the case allows for a more in-depth examination of the ethical consequences of putting profit before people, a topic that is not exclusive to the aviation industry. Corporate accountability and disclosure were also brought into the limelight by the crisis. Pilots and airlines have complained that Boeing withheld vital information regarding the new MCAS system. Concerns about safety are closely related to ethical issues, and this lack of openness and responsibility highlights the need of being forthright and honest in business dealings. In addition, claims of regulatory capture, in which business interests may have impacted regulatory decisions, were leveled against Boeing's partnership with the Federal Aviation Administration (FAA). There is a delicate balancing act between industrial expansion and public safety, and this case provides an excellent chance to examine the ethical implications of such regulatory dynamics (Paul et al, 2018). Passengers, airlines, Boeing workers, and the families of those lost were all deeply touched by the issue surrounding the Boeing 737 Max. Ethical evaluation of the case as a whole requires a thorough understanding of the financial and emotional impacts on these stakeholders. Finally, the crisis reaction from Boeing's management and staff is an important part of the case study. It is possible to learn a lot about the company's ethical culture and its dedication to fixing problems by analyzing how its executives and workers dealt with the ethical concerns coming from the accidents and their actions in reaction to the crisis. Unethical Business Practices by Boeing: The unethical business practices related to the Boeing 737 Max include: Design Flaws: Both fatal incidents involving the Boeing 737 Max may be traced back to problems with the aircraft's MCAS (Maneuvering Characteristics Augmentation System). The primary purpose of MCAS is to avoid stalling by automatically adjusting the aircraft's angle of attack. However, problems were discovered with how it was put into practice. Data from a single angle-of-attack sensor was used by the system, and any inaccuracies therein might result in unintended nose- down trim directives (Rutkowski, 2019). MCAS repeatedly pulled the nose of the airplane downward, sending both the Lion Air and Ethiopian Airlines flights into uncontrolled dives,

5 which ultimately led to their destruction. An essential moral problem is brought to light by this design flaw: Boeing has a responsibility to take extra precautions throughout the design and testing of its planes to guarantee passenger safety. Lack of openness: After the accidents, allegations of a lack of openness was another issue. The existence and operation of MCAS was a secret kept from pilots and airlines by Boeing, it has been discovered. Many pilots didn't even know the system existed, much less what to do if it accidentally went off. This absence of open dialogue is a major ethical problem. Aircraft manufacturers like Boeing are trusted by passengers and airlines to offer accurate and comprehensive information on the aircraft's systems and features. Flight safety might have been compromised due to Boeing's inaction (Schmuck, 2021). Regulatory Influence: During the approval of the Boeing 737 Max, Boeing was accused of having improper influence on the Federal Aviation Administration (FAA). This prompted worries of regulatory capture, in which special interests from business sway policymaking. The FAA's capacity to conduct an impartial safety review was called into question by some who claimed that Boeing's cozy connection with the agency hindered that review. The regulatory bodies' ability to remain impartial and to act in the public interest is at the heart of this matter, which touches on the ethical ideal of regulatory integrity. There is a risk to public trust and safety when business interests exert undue influence on regulators. Moral Philosophical Bases Infringed Upon: The unethical behavior violated a number of different moral philosophies, including: Utilitarianism: An ethical theory that places premium on doing the most good for the most people. A problem with utilitarianism arises with regards to the Boeing 737 Max. Boeing as a company may have put concerns about making money and staying competitive ahead of those of passengers. Concerns have been raised regarding the company's priorities if it chose to prioritize profits above passenger safety when making the choice to build and certify the aircraft with a defective MCAS system. The larger aviation sector shares this utilitarian ethic's need to put passenger safety ahead of financial gain ( Collings et al, 2022) .

6 Deontology: A ethical philosophy that stresses the value of moral obligations and principles is known as deontology. With regards to the Boeing 737 Max, there has been a failure to provide pilots and airlines with accurate and honest information. As the maker of the planes in question, Boeing had a moral obligation to properly warn pilots and mechanics about the MCAS system ( Cusumano, 2020) . Some say this ethical obligation has not been met since there has been inadequate transparency and pilots have not been provided with enough training materials. Passenger safety was endangered, and faith in Boeing's ethical standards was shaken, because of this breach of deontological norms. Virtue ethics: Virtue ethics is concerned with the growth of moral character and virtues like honesty, integrity, and bravery. There are concerns that honesty and integrity were compromised in the handling of the Boeing 737 Max incident. The early hesitation Boeing showed in admitting design problems and the lack of full information concerning MCAS raise questions about the company's dedication to these qualities ( Mongan and Kohli, 2020) . When it comes to matters of life and death, virtue ethics urges people and institutions to behave with the utmost honesty and integrity. Some people may see Boeing's recent activities as being in odds with these admirable goals. Impact on Ethical Decision-Making and Stakeholders: The lack of ethical behavior around the Boeing 737 Max had a significant effect on the company's ability to make ethical business decisions. To begin, there was an obvious contradiction between prioritizing profit above safety. Boeing's choice to go on with the plane's defective design despite safety concerns and without proper disclosure to stakeholders showed that the company valued profit above ethics. Boeing's ethical decision-making was undermined because it prioritized profit above the well-being of its passengers ( Herkert et al, 2020) . Furthermore, the crisis brought up questions of regulatory capture and a lack of openness in policymaking. The FAA's claimed capitulation to Boeing throughout the certification process raises serious concerns about the impartiality of regulatory bodies. If accurate, this influence points to a shady connection between the aviation business and regulators that might lead to unethical policymaking.

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7 Impact on Stakeholders: The problem with the Boeing 737 Max has far-reaching consequences. First, the families of the people who died in the two accidents were severely affected by their awful loss. The financial and emotional toll on these people was enormous, and their worries about the causes of the catastrophes just added insult to injury ( Qin and Wittman, 2020) . Second, the whole aviation industry's image was damaged by the issue. One of the most important groups whose confidence must be preserved is that of the passengers. Airlines too felt the effects of this lack of faith from their customers. The whole stakeholder group, including Boeing's workers, suppliers, and investors, felt the effect of the grounding of the Boeing 737 Max fleet, which led to financial losses and operational difficulties for airlines. Concerns about personal accountability and duty arose as employees worked on the 737 Max program, presenting them with difficult ethical challenges. The suspension of aircraft manufacturing had a negative financial impact on suppliers, and the stock price of Boeing fell as a result ( Sgobba, 2019) . Response of Leaders and Employees: At first, a lot of people didn't like how Boeing handled the situation. Lack of openness and responsibility in addressing design faults and system deficiencies weaken confidence in the company's management. Some Boeing executives stepped down in the wake of the catastrophe, admitting their own complicity in it via ethical and management lapses. Boeing workers were also impacted, with many being forced to grapple with difficult moral choices. Workers who had a hand in developing the 737 Max were forced to ask themselves whether or not they bore any of the blame for the disaster. It's possible that some workers felt ethical pressure to put business concerns ahead of worker safety. There may have been others who tried to voice concerns internally but met resistance ( Keil et al, 2022) . Recommendations Enhance Safety Protocols and Prioritize Them Above All Else: Boeing should always put safety first in every part of how it does business. That implies you should never sacrifice safety standards for the sake of profit or competition, and you should always do thorough testing and analysis throughout the design process. The company's number one moral obligation is to ensure the wellbeing of its employees ( Sterman and Quinn, 2023) .

8 Enhance Communication Transparency: Boeing must significantly enhance its communication transparency, not just with regulators but also with airlines and passengers. There has to be clear and thorough communication of crucial information about aviation systems, such as possible dangers and restrictions. To ensure the safe operation of the aircraft, it is essential that airlines and pilots have access to the relevant training and paperwork. In addition to being the moral thing to do, being open and honest may help restore credibility ( Spielman and Le Blanc, 2021) . Strengthen Ethical Culture: Boeing needs to promote an ethical workplace culture that values honesty and reliability. Integrity must be promoted at all levels of the organization, from management to the front lines. The necessity of placing safety and honesty at the center of business processes should permeate every level of decision-making at Boeing. To avoid such missteps, a solid ethical culture is essential ( Mongan, 2020) . Implement Robust Whistleblower Protection Mechanisms Boeing should design and promote comprehensive whistleblower protection systems to encourage the reporting of safety issues and unethical activity. Workers need to know they will get safety and backing if they speak out about problems or ethical concerns at work. Whistleblower protection that really works is crucial for preventing issues from becoming worse before they are ever discovered. Closely Partner with Regulators: In order to reestablish confidence, Boeing should adopt a collaborative strategy with regulatory bodies like the FAA. Industry and regulators should have a healthy partnership built on trust and a shared commitment to safety ( Cusumano¸2020) . Boeing should work with authorities to certify that all of its planes are built with integrity and safety in mind from the ground up. The problem with the Boeing 737 Max aircraft requires constant attention. Boeing must put safety first, be open and honest in its communications, foster a culture of ethics, encourage and reward employees who report unethical behavior, and work closely with government agencies if it ever wants to win back the public's confidence. These suggestions highlight the significance of ethics and safety in aviation, and provide a road map for Boeing and other companies to regain consumer trust. Ethical decision-making informed by the lessons of this catastrophe is essential for maintaining the greatest levels of security and honesty in the years to come.

9 Conclusion In summary, the Boeing 737 Max disaster serves as an important reminder of the ethical dilemmas that can emerge when corporate objectives conflict with the fundamental priority of protecting human well-being. The present case study has shed light on the extensive ethical implications caused by a sequence of tragic occurrences, encompassing design problems, an absence of openness, and claims of regulatory manipulation. The disaster had extensive effects on several parties within the aviation sector, encompassing not only the unfortunate loss of life but also impacting individuals and entities such as passengers, airlines, employees, and investors. The ethical complications and issues encountered by leaders and workers in their reaction to the crisis highlight the difficulties involved in managing such a situation. However, just examining the unethical shortcomings shown by the Boeing 737 Max disaster is insufficient. The analysis presented in this study holds significant academic merit due to its capacity to provide valuable insights and guidance for ethical enhancement. The above- mentioned suggestions, which encompass an expansion of safety measures, heightened openness, a strengthened ethical culture, comprehensive whistleblower protection, and cooperative interaction with regulators, offer a strategic framework for Boeing and the wider aviation sector. The resolution of the challenges arising from this crisis necessitates a continuous and unwavering dedication to ensuring safety, promoting openness, and upholding ethical principles. By applying the aforementioned measures and placing a strong emphasis on ethical principles, Boeing and other comparable firms have the potential to restore confidence, mitigate the occurrence of future ethical breaches, and preserve the utmost standards of safety and integrity. In the end, the Boeing 737 Max issue serves as a tragic reminder that ethics must always take precedence over business and security must be the first priority in sectors where human lives are on the line.

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10 References Collings, D., Corbet, S., Hou, Y.G., Hu, Y., Larkin, C. and Oxley, L., 2022. The effects of negative reputational contagion on international airlines: The case of the Boeing 737- MAX disasters. International Review of Financial Analysis, 80, p.102048. Cusumano, M.A., 2020. Boeing's 737 MAX: a failure of management, not just technology. Communications of the ACM, 64(1), pp.22-25. Herkert, J., Borenstein, J. and Miller, K., 2020. The Boeing 737 MAX: Lessons for engineering ethics. Science and engineering ethics, 26, pp.2957-2974. Keil, M., Gregory, R.W., Almandoz, J., Dougherty, S. and Walrave, B., 2022. A Productive Tension Decoupled: An Institutional Account of the Boeing 737 MAX Disaster. In Academy of Management Proceedings (Vol. 2022, No. 1, p. 14928). Briarcliff Manor, NY 10510: Academy of Management. Kumar, B.R., 2022. Case 39: Boeing 787 Project. In Project Finance (pp. 279-284). Springer, Cham Kumar, V., Yeole, P.S., Hiremath, N., Spencer, R., Billah, K.M.M., Vaidya, U., Hasanian, M., Theodore, M., Kim, S., Hassen, A.A. and Kunc, V., 2021. Internal arcing and lightning strike damage in short carbon fiber reinforced thermoplastic composites. Composites Science and Technology, 201, p.108525. Mazlan, N., Hua, T.C., Sapuan, S.M. and Ilyas, R.A., 2022. Evolution of Aerospace Composite Materials. Advanced Composites in Aerospace Engineering Applications, p.367 Mongan, J. and Kohli, M., 2020. Artificial intelligence and human life: five lessons for radiology from the 737 MAX disasters. Radiology: Artificial Intelligence, 2(2), p.e190111. Pandian, G., Pecht, M., Enrico, Z.I.O. and Hodkiewicz, M., 2020. Data-driven reliability analysis of Boeing 787 Dreamliner. Chinese Journal of Aeronautics, 33(7), pp.1969-1979. Paul, S., 2018. Crisis in Boeing 787 Dreamliner: An Investigation from Project Management Control Perspective. International Journal of Human Resource Studies, 8(4), pp.242251- 242251.

11 Qin, Y. and Wittmann, X., 2019. Boeing: The 737 MAX Crisis. University of Zurich. Rutkowski, M., 2019. „Assessment of the impact of the Boeing 787 Dreamliner fleet on the development of Lot Polish Airlines”. In 11th International Scientific Conference “Analysis of International Relations 2019. Methods and Models of Regional Development. Winter Edition”. Conference (pp. 56-67). Schmuck, R., 2021. Global supply chain quality integration strategies and the case of the Boeing 787 Dreamliner development. Procedia Manufacturing, 54, pp.88-94. Sgobba, T., 2019. B-737 MAX and the crash of the regulatory system. Journal of Space Safety Engineering, 6(4), pp.299-303. Spielman, Z. and Le Blanc, K., 2021. Boeing 737 MAX: Expectation of human capability in highly automated systems. In Advances in Human Factors in Robots, Drones and Unmanned Systems: Proceedings of the AHFE 2020 Virtual Conference on Human Factors in Robots, Drones and Unmanned Systems, July 16-20, 2020, USA (pp. 64-70). Springer International Publishing. Sterman, J. and Quinn, J., 2023. Boeing’s 737 MAX 8 Disasters. Travis, G., 2019. How the Boeing 737 Max disaster looks to a software developer. IEEE Spectrum, 18.

Boeing 78y

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