All Chapters Included
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,Table of contents
Chapter 1: The Corporation and Its Stakeholders
Chapter 2: Managing Public Issues and Stakeholder Relationships
Chapter 3: Corporate Social Responsibility and Global Citizenship
Chapter 4: Business in a Globalized World
Chapter 5: Ethics and Ethical Reasoning
Chapter 6: Organizational Ethics
Chapter 7: Business–Government Relations
Chapter 8: Influencing the Political Environment
Chapter 9: Sustainable Development and Global Business
Chapter 10: Managing for Sustainability
Chapter 11: The Role of Technology
Chapter 12: Regulating and Managing Technology
Chapter 13: Shareholder Rights and Corporate Governance
Chapter 14: Consumer Protection
Chapter 15: Employees and the Corporation
Chapter 16: Managing a Diverse Workforce
Chapter 17: Business and Its Suppliers
Chapter 18: The Community and the Corporation
Chapter 19: Managing the Public and the Corporate Reputation
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,Chapter 1
FAILURE BY DESIGN: BOEING AND THE 737 MAX
TEACHING NOTE
This case illustrates the following themes and concepts discussed in the chapters listed:
Theme/Concept Chapter
Conflict of Interest 5
Organizational Ethics 6
Business Government Relations; Government Regulation 7
Product Safety 14
Case Synopsis
On Monday, October 29, 2018, Lion Air Flight 610 crashed into the Java Sea in
Indonesia shortly after takeoff, killing all 189 people on board. The aircraft was a nearly
new Boeing 737 MAX, delivered to Lion Air, a low-cost regional carrier and one of
Boeing’s major customers, just four months earlier. The MAX was Boeing’s newest
aircraft and the centerpiece of the company’s strategy for the short to mid-range
commercial market. CEO Dennis Muilenburg faced an urgent an urgent task: to
determine what had gone wrong and why with Boeing’s newest and so-far successful
new model. The case presents the history of Boeing and its externalcompetitive
environment; the evolution of its strategy, governance, and ethics practices; and its
relationship with U.S. regulators during the design and certification of the 737 MAX.
What organizational and environmental factors had contributed to Boeing’s
development of an apparently unsafe aircraft? What could Boeing, government
regulators, and its airline customers
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, and other stakeholders do to prevent unsafe aircraft from being manufactured and
sold in thefuture?
TEACHING TIP: WHERE TO USE THE CASE IN THE COURSE
This case is integrative, in that it draws on many themes in the text. Instructors may use it at the
end of the course as a final, integrative assignment, or with the study of Chapters 5 and 6 (Ethical
Reasoning and Organizational Ethics) or Chapter 7 (Business Government Relations).
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