Phl 320 - Ethics and Social Responsibility

Ethics and Social Responsibility

PHL/320

This week’s paper I will review the ethics and social responsibility of The Boeing Company’s decision to outsource work to manufacture the 787 Dreamliner. I will identity the potential ethical implications with making this decision.  Evaluate the influence that corporate social responsibility to the business. Also, discuss the application of critical thinking to corporate social responsibly.  

Decision within the organization

        The decision that was made to outsource locally and internationally when Boeing was in the stage of the development of the 787 Dreamliner airplane.  By outsourcing everything this was Boeing’s idea to help low the cost of the aircraft and accelerating the development of it. The project ended up costing Boeing more money than they projected and they were three years behind schedule. Instead of having the mechanics and engineering and labors that have experience working on the Boeing aircrafts, Boeing had engineers from Japan, Australia, France and other counties make components and then the employees at the Boeing plant in the United States would assemble the aircraft in Seattle Washington.  

Potential Ethical Implications

        The ethical implications that Boeing faced that was inevitable. When Boeing made the decision to outsource the work this means loss of many jobs on the production line at the plant in Seattle Washington.  This will cause a snowball effect in the surrounding area of the production plant.  People that are layoff will have financial problems and eventually could lead to losing their homes and an increase of foreclosure in the surrounding area.  This will then lower the value of the housing market.   Another problem was the they are using batteries that overheat and cause fires. This was a serious design mistake. This is a result of outsourcing work to people that are not experienced with aerospace designs in engineering.   Local supplier that have always supplied Boeing with parts will lose income. Small suppliers depend on purchase orders from Boeing to keep the business up and running.  If the work in small business decreases they will also have to let employees go.  

Effect on Decision Making

        Every decision a company make may address the problem at that time. Some decision can affect the main purpose of a company.  Usually the main propose of decisions is profitability.  Businesses to look at all the factors that impacts the effect of profitability.  Decision making is part of business every day.  These decisions are made from first levels managers up to the board of directors. For every decision, has some kind of impact of all future decisions. Managers must approach decisions carefully. They are the ones responsible for steering the company in the right direction