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Fundamentals of Management Assignment 3

Academic and Professional Skills Assignment (GC01923)

  • Categories Operation Management

Executive Summary

Ethical conduct is very important for each and every type of business firm to establish a reputation, public trust and sustainable growth. On the contrary, unethical conduct has several effects on the business. This paper is made for evaluating the unethical conduct of Boeing travel that affects their reputation, public trust and sustainable growth. This report will be demonstrated the overall effect of unethical conduct on the tourism industry. Not only the effects will be described but also some suggestions will be given to tourism firms to overcome the problem of unethical conduct. Finally, this report will be concluded the overall discussion of the case study on Boeing travel with impacts and suggestions.

Table of Contents

Executive Summary.

1.0        Introduction.

2.0 Analysis.

  1. 1 Impact of unethical behavior on Boeing’s reputation.

2.2 Impact of unethical behavior on public confidence of Boeing Travel

2.3 Impact of unethical behavior on Boeing’s share prices.

2.4 Impact of unethical behavior on the tourism industry.

3.0 Conclusion.

4.0 Recommendations.

5.0 References.

 

1.0     Introduction

David Oliver (2016) stated that ethics defines good and evil, right and wrong, and justice and crime that a people should be done. It is the conduct standard, moral judgment and philosophy as well as the code of morals of a person, religion, group, business or profession. According to CFI (2019), Business ethics indicates good and accurate business policies and practices for the wellbeing of the business stakeholders. This report is prepared on a case that Boeing Travel and stated that 189 were killed in a Boeing 737 Max Lion Air flight in Indonesia in 2018 and 157 people lost their lives outside Addis Ababa in 2019 (Boeing, 2020).

These accidents were happened due to software flaws and sensors that were the negligence of the employees of Boeing Travel. Due to these crashes, the customers don’t feel comfortable traveling in this tourism industry. According to National Safety Council, the rate of a plane crash is very low but the recent crashes were negatively affected the overall performance of Boeing Travel as well as the overall tourism industry.

At this time; Boeing Travel has to understand the effect of unethical behavior on its reputation, public trust and growth and take corrective actions. This report is made to identify the area of organizations including Boeing Travel in which they involve in unethical behavior. This paper evaluates the unethical conduct of Boeing travel that affects their reputation, public trust and sustainable growth. This report demonstrates the overall effect of unethical conduct on the tourism industry. Not only the effects are described but also some suggestions are given to tourism firms to overcome the problem of unethical conduct.

2.0 Analysis

According to Dean (2017), Unethical behavior can occur in every type of workplace. It is considered as misconduct by the stakeholders of an organization. Normally, the outcomes of unethical behavior are not fruitful for the organization because it damages a company’s credibility, loses customers and finally shuts down the company (Eva Tsahuridu, 2016). For this reason; business owners and managers work jointly to identify the potential area of unethical behavior and remove the unethical behaviors.  Firstly, it is a wise decision to understand the real influence of unethical behaviors on the functions of Boeing Travel. Some of the impacts are presented here.

2. 1 Impact of unethical behavior on Boeing’s reputation

Gerlis (2016) stated that the effect of unethical conduct on the reputation of Boeing travel can be described in several ways. Firstly, the reputation of Boeing travel is damaged due to unethical conduct. Secondly; the unethical decisions lead to an increase in the turnover rate of employees that also hampers the reputation of Boeing travel. After losing reputation, it is not an easy task to gain back the reputation in the current competitive market.

Gerlis (2016) also stated that if the reputation decreases, several problems are created to run the business activities successfully. According to Rimmer (2017), unethical conducts lead to a poor corporate culture that also hampers the reputation. Employees feel that their reputation is decreasing with the falling of business’s reputation due to ethical misconduct. The ultimate objective of Boeing travel is to provide better service to the customers and to maintain a strong position in the global field (Boeing, 2020).

Unfortunately, unethical behavior reduces the productivity and quality of services that increase plane crashes. Ultimately, the airplane crashes led to dissatisfaction of the customers and Boeing travel can’t maintain its reputation as before (Boeing, 2020). That is why. it is a very vital point that Boeing travel has to identify the sources and impact of unethical conduct and remove the unethical practices to establish a strong reputation and brand equity in the global market. ………………………………………..

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