ipl-logo

Boeing Ethical Dilemma

819 Words4 Pages

In the situation between Boeing and McDonnell Douglas, the stakeholders would be the employees and investors of both companies. These individuals would be the stakeholders because they are the individuals who have an interest in the success and failure of the company. In the end of the situation, it states that after the $2.6 billion write-off due to cost overruns was announced, Boeing’s stock price had fallen 20%. This being because less people wanted to buy stock from this company due to the unethical practices and high cost overruns. Even though some investors left the company, McDonnell Douglas couldn’t because of their deal with Boeing. The main ethical issue in this case is the hiding of information from stakeholders by Boeing. They did not disclose the cost overruns in both their first and second financial statements because they knew their stock would have plummeted and their deal with McDonnel Douglas would have been revoked. One of the company 's public relations manager wanted to reveal the bad news on the dates of Princess Diana’s or Mother Teresa’s funerals in order for the …show more content…

This allowing investors and analysts who follow Boeing 's stock to imply that they wouldn’t have a problem doing this again. They can also imply the company isn’t going to change and isn’t going to be honest. The company may also lie about other problems within the business which could further hurt investors. Due to this situation investors and analysts could imply that they should start to look for other companies to invest in who have ethical practices and care for others and not just themselves. In conclusion, Boeing’s top management proved to their stakeholders that there number one priority is themselves and that they do not care about those who are investing in their

Show More
Related
259 Words | 2 Pages

A Stakeholder is any individual who has a vested interest in a business and is affected by the organisations decisions and strategies (Pride, Hughes & Kapoor 2015, p. 10). Therefore, the people most affected by Graeter’s decisions to take a long term view of the business rather than aim for short term profits are the family members who have a stake in the business. At the present, Richard Graeter II (CEO), Robert Graeter (vice president of operations) and Chip Graeter (vice president of retail operations) manage the business and are responsible for all the decisions regarding its operations. Graeter’s management team have chosen to forgo the opportunity for short term profits by adhering to the traditional manufacturing process used by Louis

Read More
705 Words | 3 Pages

In this assignment I am going to discuss the stakeholders of two contrasting businesses. Stakeholders of Cancer Research- Owners- For a charity the owners of the business will eventually want the firm to expand and grow over a certain amount of years, this will lead to the firm becoming more recognised and they can offer their service not just nationally but internationally.

Read More
563 Words | 3 Pages

Relevant Facts: Nurofen, the pain-relief medication is made by Reckitt Benckiser Australia, a multinational company. The company was found misleading customers for all its specific range that contained the same active ingredient ibuprofen lysine 342mg and was seen to have same effect. The product was advertised the products as been targeting back pain, period pain and tension headaches. The Company was fined $1.7m for misleading customers on range of ‘specific pain’ relief contravening Australian Consumer Law has been brought forward by ACCC. The ACCC had asked federal court to impose $6 million fine.

Read More
1452 Words | 6 Pages

When we hear of the apparel retailer, Lululemon, we usually think of really overpriced athletic clothing. Lululemon is a luxurious brand for those who want to invest in high quality athletic clothing. This retail company was originally founded in Vancouver, Canada in 1998. In addition, the founder of the company is Denis “Chip” Wilson, who is no longer affiliated with the incorporation due to his unprofessionalism. Over the past twenty years, Lululemon has faced a couple ethical issues, but their ethical culture has also impacted their relationship with customers and employees.

Read More
1461 Words | 6 Pages

At Lockheed Martin, shareholders represent a significant portion of this demographic. They are anyone who owns Lockheed’s stock and is impacted by its performance; positively when the stock rises and negatively in times of poor performance. Lockheed is concerned about its shareholders because they are entitled to earning profits from its stock as investors and owners of the company. If shareholders become dissatisfied they can change how the company is run; for example, they can replace the existing board of directors through a voting process. Consequently, Lockheed Martin’s decisions are focused on generating profit for their shareholders to increase stock valuation.

Read More
1528 Words | 7 Pages

Introduction In this extended essay, I will try to answer the research question “To what extent is Corporate Social Responsibility part of Arm Makers Companies? An assessment and evaluation of Raytheon’s and Northrop Grumman’s Business ethics”. Weapon companies face the issue of being socially responsible as it is a global matter. I will be mainly focusing on two companies; Raytheon and Northrop Grumman.

Read More
1172 Words | 5 Pages

Know Your Business Environment Unit No. 1: The Business Environment Pervez Ghazi Shaikh Date Submitted: 31/10/2016 Carl Loraine Cruz 20154176   Target is the organization that I have chosen for this assignment. Target is a famous discount retailer in United States that was founded by George Dayton. It was formerly called Dayton’s Company in 1910.

Read More
3270 Words | 14 Pages

Every stake holders has its own needs and demands from the organization. Every stakeholder which are directly attached to the company requires the information as it required and his role. These are the persons, groups or other company which have legitimate interest in the company and its functions. These persons or the group directly or indirectly communicate with the company. Stake holder analysis is done below to understand the needs and demands of the stakeholders.

Read More
755 Words | 4 Pages

Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.

Read More
730 Words | 3 Pages

Stakeholder define as a person, group or organization that has interest or concern in an organization. Some examples of key stakeholders are shareholders, employee, suppliers, customers and government. Not all stakeholders are equal. A company 's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company 's employees.

Read More
644 Words | 3 Pages

Lockheed’s movement towards a more ethical workplace. Prepared for Dr. Shah Trident University International Prepared by Timothy Rychecky Business Ethics 301 August 5th 2017 Some of the unorthodox strategies covered by Terris during the 1950’s was anything from making donations to a support widows and orphans in Indonesia to making deals with influential people in governments to include royalty in the Netherlands and Japan, political parties in Italy. All these entities were willing to convince the powers that made spending decisions to purchase the starfighter. In addition, Terris describes a time period where outright bribery was used as a way of doing business even though in the US it was against ethical rules, overseas it was

Read More
1848 Words | 8 Pages

This really means that Apple has not impose its ethical conduct thoroughly throughout the company. Therefore. according to multiple popular news sources, Apple does not really present as a very ethical corporation. This is on a level understandable providing the number of haters and competitors Apple has that may have had played a hand in exposing these scandals to the public. However, Apple is to blame for such appalling business conduct and ignorance in their monitoring not only Apple premises but also with

Read More
931 Words | 4 Pages

(Johnson , 2014 ) In this case , it shows that under normal circumstances the management level of a company or corporation will choose to hide the truth over honesty and integrity .In other way , profitability has override the important of ethics in the corporation .

Read More
946 Words | 4 Pages

Altinay and Miles (as cited by Appiah, 2016) suggested that stakeholders are a uniform group who display individual forms of stakeholder relationships. Many theorists have identified stakeholder groups, along with the expectations they hold according to Connolly; Johnson & Scholes; Kuratko,

Read More
1710 Words | 7 Pages

Ethical issues in accounting and finance. Summary This task analysis the issue of ethics in accounting and finance as discussed in the International Journal of accounting and finance. Currently, ethics of any firm is an important topic due to the numerous scandals that have taken place in different countries which have resulted in damage to the economy and society.

Read More

More about Boeing Ethical Dilemma

Related Topics

Open Document