Boeing_737_MAX_Ethics_Case_Study_Updated.pptx

Boeing_737_MAX_Ethics_Case_Study_Updated.pptx

1. The Boeing 737 MAX Crisis: Ethics vs. Profit A Case Study in Corporate Responsibility Presented by: [Your Name] Course: Business Ethics Date: [Your Presentation Date]

2. Introduction • Boeing is one of the largest aerospace manufacturers. • In 2018–2019, two Boeing 737 MAX crashes killed 346 people. • Investigations revealed serious ethical violations in design and approval.

3. What Happened • Boeing developed MCAS (Maneuvering Characteristics Augmentation System). • MCAS automatically adjusted the plane’s nose to prevent stalling. • Boeing failed to properly inform pilots and regulators. • The system relied on a single faulty sensor, causing deadly malfunctions.

4. Ethical Issues 1. Profit over Safety – Boeing rushed development to compete with Airbus. 2. Deception – Critical MCAS details were hidden to avoid delays. 3. Lack of Transparency – Internal concerns were ignored. Quote: “This airplane is designed by clowns who in turn are supervised by monkeys.” — Boeing Employee, 2017

5. Key Stakeholders Affected • Passengers & Families – 346 lives lost. • Pilots – Inadequate training. • Regulators – Misled by Boeing. • Employees – Pressure to hide safety issues. • Shareholders – Lost over $60 billion in value.

6. Ethical Analysis • Utilitarianism: Actions should maximize well-being; Boeing’s actions caused harm. • Deontology: Boeing failed its duty of honesty and safety. • Virtue Ethics: Leadership lacked integrity and courage. Key Point: Ethics should guide engineering, not the other way around.

7. Legal & Corporate Consequences • Global grounding of all 737 MAX planes for 20 months. • Boeing paid $2.5 billion settlement for fraud. • CEO fired; major reputation loss. • Congressional investigations followed.

8. Lessons Learned • Transparency saves lives. • Shortcuts cost more long-term. • Corporate culture must empower engineers. • Ethics should drive decisions. Quote: “When ethics fail, systems fail.”

9. What Boeing Could Have Done Differently • Conduct full independent safety tests. • Be transparent with regulators. • Train pilots thoroughly on MCAS. • Promote a culture of openness and safety.

10. Discussion Questions 1. Should Boeing executives face criminal responsibility? 2. How can firms balance profit and safety? 3. How can employee voices be strengthened?

11. Conclusion • Boeing’s crisis shows ethics outweigh profit. • True leadership chooses integrity over shortcuts. • Business ethics is not theory—it’s life and death.

12. References • U.S. House Committee on Transportation and Infrastructure (2020) • The New York Times: 'Inside Boeing’s 737 MAX Crisis' • Reuters: 'Boeing to Pay $2.5B Over 737 MAX Fraud Case' • BBC News: 'Boeing 737 MAX: What Went Wrong?'

13. Ethical Reflection “When I do good, I feel good; when I do bad, I feel bad — and that is my religion.” — Abraham Lincoln