Boeing Co: Ethical Failures and Business Scandals

Authors

Bahia Benabbad Touirs, St. John’s University, Tobin College of Business, New York, USAFollow

Document Type

Article

Abstract

Recent advances in technology have completely changed people’s outlook on the world. Instant access to limitless information has revamped consumer behavior and expectations from the companies they interact with; therefore, social responsibility has become a crucial talking point in the business world as customers increasingly monitor their actions. A recent study showed that 70% of consumers want to know how brands are addressing social and environmental issues, and 46% of consumers believe it plays a decisive factor in their purchasing decision process (Duan, Hofer, & Aloysius, 2021). Even though this has its effects in every industry, this paper will focus on the aircraft manufacturer Boeing Co. Aviation is a rapid worldwide method of transportation; it is essential for modern globalization and global business as it facilitates trade and economic growth (Uniting Aviation, 2018). Given its significant impact on business and the high risks or consequences of unethical business practices, the commercial airlines production is under more scrutiny.

Boeing Co. has found itself under heavy public scrutiny after two of the newly designed 737 MAX planes crashed in 2018-2019, costing the lives of over 300 passengers and crew members. To gain profits, Boeing Co. looked to upcharge commercial airlines on unconventional basic safety systems and ‘cut corners’ with regulatory agencies such as the Federal Aviation Administration by downplaying the upgrades in the new aircraft to avoid retraining and informing pilots of said new systems. In addition to this, the company fell incredibly short in its response and in its approach to addressing the incidents to the public (Peterson, 2021).

This article will discuss in detail the organizational culture of Boeing Co., how their focus on economic success over ethical practices has stained their history in the aviation industry, and how the company works to overcome their unethical past for a prosperous future.

Recommended Citation

Benabbad Touirs, Bahia (2023) "Boeing Co: Ethical Failures and Business Scandals," Journal of Global Awareness: Vol. 4: No. 2, Article 9.
Available at: https://scholar.stjohns.edu/jga/vol4/iss2/9