MGT 401 Week 2 Discussion 2

Ethics are the foundation of successful organization and its reputation has a significant impact on how consumers view the corporation. This 787 Lithium-Ion battery issue is a classic case of an organizations choice of profit over safety. I do not believe that Boeing made the right choice in lowering its ethical standards in order to save some money. Changing to the heavier nickel-cadmium batteries may have added to the operating cost but this would be minimal compared to the losses incurred through fires and loss of consumer confidence. Even though Boeing thought that they had a good fix for the problem they still needed to make sure they are adhering to the FAA’s standards and practices. As stated in the text “The regulations are quite comprehensive and require an entire volume of the Code of Federal Regulations (CFR). Title 49 of the CFR gives the specific rules that must be followed when hazardous substances are placed into the transportation system” (Gantt, 2012, p 169). This decision should have been discussed at the upper levels of management with input from the legal department. They may have convinced upper management of the legal implications of a mishap. In light if the accidents Boeing should either switch to the safer batteries or design a new aircraft that uses the nickel cadmium battery.

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