LAN 103 - ASSIGNMENT

ROLE OF ORGANIZATIONAL ETHICS AND

JUSTICE FOR BUSINESS
Name: Amay Dixit ID No: 12340220

In today's competitive economic environment, an organization's fairness and ethical practices

have a significant impact on its success, sustainability, and reputation. Fairness and ethical
behavior increase stakeholder trust while also increasing long-term profitability and stakeholder
value.

Organizational ethics are the moral ideas and ideals that govern behavior within a company.
Honesty, integrity, fairness, and respect for all stakeholders, including shareholders, clients,
employees, and the public, are all examples of ethical business behavior.

Trust is the foundation of all successful business relationships. When a corporation adheres to
moral ideals, its stakeholders begin to trust it. A company with a strong moral reputation is more
likely to have a favorable reputation, which can boost investor confidence, staff happiness, and
consumer loyalty.

Organizational justice refers to the equitable distribution of opportunities, resources, and

incentives within an organization.

Organizations that prioritize justice have higher levels of employee engagement and satisfaction.
Employees feel valued and respected when they believe they have been handled honestly. This
could result in increased productivity, fewer attrition, and a more positive work atmosphere.

Legal and Regulatory Compliance: Organizations can adhere to legal and regulatory
requirements by keeping principles based on fairness. Enterprises prioritizing equity in their
operations had a lower likelihood of facing legal challenges related to discrimination,
harassment, or unfair labor practices.

Boeing's 737 Max Crisis

The Boeing 737 Max incident is a current instance that highlights the significance of
organizational ethics and fairness. The Boeing 737 MAX passenger airliner was grounded
worldwide between March 2019 and December 2020 – longer in many jurisdictions – after 346
people died in two similar crashes: Lion Air Flight 610 on October 29, 2018, and Ethiopian
Airlines Flight 302 on March 10, 2019. By March 13, 2019, 51 regulators had grounded the
plane;

Investigations found that Boeing prioritized cost reductions and market speed over employee
safety. During the certification process, concerns surfaced regarding Boeing's alleged
inappropriate influence over the Federal Aviation Administration (FAA).

The relatives of the crash victims expressed their anger with Boeing's lack of accountability and
transparency in managing the disaster. They claimed that the corporation failed to adopt critical
safety measures, hold direct responsible, or provide adequate remuneration.

In summary, the prosperity and long-term viability of businesses depend on corporate justice and
ethics. While ethical behavior fosters trust, improves reputation, and supports long-term
sustainability, justice ensures fairness, compliance, and stakeholder satisfaction. The Boeing 737
Max tragedy serves as an upsetting example of the repercussions of violating these principles and
emphasizes how important it is to uphold moral principles and ensure justice in all organizational
endeavors. Businesses that prioritize morality and justice have a greater chance of long-term
success, which benefits all parties involved and society.