Case 20: Boeing 737 Max Case study analysis Questions

1.     Does it seem that Boeing has made a commitment to operating in a socially responsible manner? Based on the five components of a socially responsible strategy depicted in Figure 9.2 in Chapter 9, is Boeing’s strategy socially responsible? How does it address the needs of all of its stakeholders? Explain.

Employee Diversity

·       Boeing has policies in place to support employees, including safety initiatives, professional development programs and a commitment to diversify and inclusion within the workforce.

      Environmental Sustainability

·       Boeing has made commitments to improve its environmental sustainability. This includes initiatives to reduce carbon emissions, enhance fuel efficiency, and invest in research for sustainable aviation fuels.

Community involvement

·       Boeing engages in philanthropic efforts through its charitable contributions and community engagement programs. Their portfolio focuses on education, workforce development and veteran support, aiming to positively impact communities where the company operates

Corporate governance

·       Boeing has a system of governance that includes a board of directors responsible for overseeing the company's performance and ensuring compliance with laws and regulations.

      Ethics

·       Boeing is expected to maintain high ethical standards in its marketing practices, ensuring accurate and honest representation of its products and services. Consumer safety is a significant concern.

For shareholders, it strives for financial growth and stability through innovation and market leadership in aviation. For employees, it emphasizes safety, professional growth, and a diverse work environment. For communities, it invests in philanthropy and sustainability initiatives. For customers, it prioritizes delivering safe and reliable aircraft.

 

2.     How does Boeing link rewards and incentives to strategically important employee behaviors and the company’s targeted sustainability outcomes?

Performance–based incentives. Employees involved in sustainability initiatives, such as designing fuel-efficient aircraft or improving manufacturing processes to reduce waste, may be eligible for performance-based bonuses.

Employee Recognition Programs. Employees engaged in developing eco-friendly technologies or proposing innovative sustainability ideas might receive recognition awards, fostering a culture that values sustainability contributions.

Training and Development Opportunities. Employees might receive incentives like access to specialized training, skill development, or mentorship, encouraging them to align their behaviors with sustainability goals.

3.     In what ways, if any, is Boeing exercising corporate social responsibility? Are there any changes to its CSR strategy that you would suggest? If some shareholders complained that Boeing has been spending too little or too much effort on corporate social responsibility, what would you tell them?

Boeing has been exercising its corporate social responsibilities through Environmental Sustainability, Philanthropy, Diversity, and Ethical Business Conduct.

Boeing should include in their Corporate Social Responsibility the stakeholder engagement. Improving engagement with a broader range of stakeholders, including local communities, environmental organizations, and shareholders, can provide a more comprehensive understanding of CSR expectations and concerns.

Boeing’s CSR initiatives demonstrate a commitment to environmental sustainability, community engagement, and ethical business conduct. Balancing CSR efforts to align with both business interests and society expectations is essential for sustainable growth and long-term shareholder value.

4.     What grade would you give to Boeing for its efforts thus far to become a socially responsible, environmentally sustainable corporation?

Grade B. Boeing has shown commitment to environmental sustainability, community involvement and philanthropy, and its efforts in diversity and inclusion.

5.     What recommendations would you make to David Calhoun to increase Boeing’s triple bottom-line performance? Provide a justification for these recommendations based on the outlook for Boeing and the attendant risks.

Sustainable innovation. Boeing should invest in research and development to create more fuel-efficient aircraft, reduce carbon emissions, and minimize the environmental impact of air travel.

Diversity. Strengthen efforts to enhance diversity within the company.

Stakeholder engagement and transparency. Actively engage with stakeholders including customers, employees, suppliers and the wider community to understand their expectations and concerns.