Business and Society Stakeholders Ethics Public Policy
17th Edition by Ann T. Lawrence & Weber Chapters 1 to 19
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,Table oƒ 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: Inƒluencing the Political Environment
Chapter 9: Sustainable Development and Global Business
Chapter 10: Managing ƒor Sustainability
Chapter 11: The Role oƒ 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 Workƒorce
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
ƑAILURE BY DESIGN: BOEING AND THE 737 MAXTEACHING NOTE
This case illustrates the ƒollowing themes and concepts discussed in the chapters listed:
Theme/Concept Chapter
Conƒlict oƒ 5
Interest
Organizational Ethics 6
Business Government Relations; Government Regulation 7
Product 14
Saƒety
Case Synopsis
On Monday, October 29, 2018, Lion Air Ƒlight 610 crashed into the Java Sea in Indonesia shortly
aƒter takeoƒƒ, killing all 189 people on board. The aircraƒt was a nearly new Boeing 737 MAX,
delivered to Lion Air, a low-cost regional carrier and one oƒ Boeing’s major customers, just ƒour
months earlier. The MAX was Boeing’s newest aircraƒt and the centerpiece oƒ the company’s
strategy ƒor the short to mid-range commercial market. CEO Dennis Muilenburg ƒaced an urgent
an urgent task: to determine what had gone wrong and why with Boeing’s newest and so-ƒar
successƒul new model. The case presents the history oƒ Boeing and its externalcompetitive
environment; the evolution oƒ its strategy, governance, and ethics practices; and its relationship
with U.S. regulators during the design and certiƒication oƒ the 737 MAX. What organizational
and environmental ƒactors had contributed to Boeing’s development oƒ an apparently unsaƒe
aircraƒt? What could Boeing, government regulators, and its airline customers
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, and other stakeholders do to prevent unsaƒe aircraƒt ƒrom being manuƒactured and sold in
theƒuture?
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 oƒ the course as a ƒinal, integrative assignment, or with the study oƒ Chapters 5 and 6
(EthicalReasoning and Organizational Ethics) or Chapter 7 (Business Government Relations).
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