12

docx

School

North Carolina State University *

*We aren’t endorsed by this school

Course

MANAGERIAL

Subject

Management

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by DukeLobster2355

1. The ethical dilemma was centered on whether to give precedence to the well-being of the customers and the public at large or to prioritize the organization’s financial interests by minimizing costs and possible delays associated with resolving safety concerns.  Pressure to compete with rival aircraft manufacturers and maintain market share.  Desire to minimize costs and maintain profitability, as addressing the safety concerns could have led to increased expenses and potential delays in delivering the aircraft to customers. 1. Competitive pressures from rival aircraft manufacturers, such as Airbus. 2. The expectations of shareholders and investors for continuous growth and profitability. 3. The need to maintain a positive public image and strong reputation within the industry. 4. Regulatory pressures from government agencies like the FAA, which had the power to ground the aircraft or impose penalties on Boeing.  Confirmation bias, or the tendency to focus on information that confirms one's preexisting beliefs (believing that the 737 Max is safe and dismissing any evidence to the contrary).  Overconfidence bias, or the belief that one's abilities and judgments are superior to others (assuming that Boeing's engineers and executives know better than external critics or regulators).  Groupthink, or the tendency for groups to conform to a dominant viewpoint and suppress dissenting opinions (discouraging employees from raising concerns about the 737 Max's safety).  The sunk cost fallacy, or the inclination to keep investing in a choice because of the amount of resources actually allocated to it, rather than assessing the decision's actual costs and potential advantages (continuing to promote and sell the 737 Max despite safety concerns due to the resources already invested in its development).  Passengers and crew members could potentially be put at risk by flying on the 737 Max.  Airlines that had purchased or were considering purchasing the 737 Max, as the aircraft's safety issues could impact their operations and reputations.  Boeing's employees, particularly those involved in designing, manufacturing, and testing the 737 Max, could face job losses or reputational damage if the aircraft's safety issues were not adequately addressed.  Boeing's shareholders and investors could experience financial losses if the company's reputation and profitability were negatively affected by the 737 Max's safety issues.  The general public, as the safety concerns surrounding the 737 Max could undermine trust in the aviation industry and potentially affect people's willingness to fly on any aircraft. Voluntarily disclose the safety concerns to the FAA and the public, immediately ground all 737 MAX aircraft, and collaborate with the FAA and other regulatory bodies to address the issues and ensure proper training is provided to pilots.

Quietly address the safety concerns internally by improving the MCAS system, enhancing safety controls, and updating pilot training materials without disclosing the issues to the FAA or the public. Maintain the status quo, avoid drawing attention to safety concerns, and focus on protecting the company's reputation and financial interests. 1. By voluntarily disclosing safety concerns and grounding the aircraft there will be potential financial losses due to grounding the aircraft and compensation claims. Moreover, there will be damage to the company's reputation. Additionally, there will be a loss of trust from customers and regulatory authorities. Consequently, there will be a risk of potential legal actions and fines. Accordingly, there will be an opportunity to rebuild a strong safety culture and regain trust in the long run. 2. By quietly addressing safety concerns internally there will be a reduced immediate financial impact and potential damage to the reputation. Moreover, there will be a risk of future incidents if internal actions are insufficient. Additionally, there will be further legal and financial consequences if the issues are discovered later. Consequently, there will be continued erosion of trust from customers and regulatory authorities. 3. By maintaining the status quo and focusing on reputation and financial interests there will be short-term financial stability and preserved reputation. Additionally, there will be an increased risk of further incidents and loss of lives. Furthermore, there will be potential catastrophic consequences when the truth is eventually uncovered. Consequently, there will be irreparable damage to the company's reputation and the potential collapse of the business. As the CEO, I would implement the first alternative - voluntarily disclosing the safety concerns, grounding the aircraft, and collaborating with regulatory bodies to address the issues and ensure proper pilot training. The underlying rationality behind my decision is that, as an aircraft manufacturer, Boeing must prioritize the safety of both passengers and crew. By disclosing safety concerns and promptly implementing corrective measures, it is possible to avert other calamities and showcase our unwavering dedication to safety. As a result, despite the immediate financial implications and potential reputational harm, this resolution has the potential to facilitate the restoration of a robust safety culture and the re-establishment of trust in Boeing over the long term. By transparently addressing the issues, we can exhibit our dedication to remedying the situation and gaining knowledge from our errors. Sustaining the confidence of clientele, regulatory bodies, and the general populace is imperative for the corporation’s longevity. Through the implementation of resolute and accountable measures, it is possible to reinstate the public's confidence and reconstruct our standing as a pioneer in aviation security.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Exploring Green Marketing, Greenwashing, and White-Collar Crime

Order 6197438 Discussion Ethical Dilemmas.docx

BRIO.docx

OB Project - Part 1.docx

23166-Arshiya.docx

Quiz 6 Q 18.png

Analyze The Evidence Based Practice.docx

Unit 11 sample.docx

Part 3; Budget and Risk Management.docx

BSC Accounting and Finance.docx

edr.pdf

Accounting Answers.docx

Recommended textbooks for you

Purchasing and Supply Chain Management

Operations Management

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Cengage Learning

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning