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.