Ethics and Airbus

Boeing could enter a joint venture with foreign government. Provide a different set of valued propositions. Quality aspect Higher technological aspects Better passenger capacity Question 3 8. Marketing strategies were different between the two. Boeing acted more responsibly and ethically. Followed standards and procedures to get the sale. Airbus used bribery and kickbacks.

Airbus allegedly bribed foreign officials, but it has never been proven Airbus may have acted unethically, but did not act illegally, because France had not yet adopted the OECD convention Conclusion. Accessed December 14, We will write a custom paper sample on Ethics and Airbus specifically for you. Leave your email and we will send you an example after 24 hours If you contact us after hours, we'll get back to you in 24 hours or less. Ethics and Airbus Paper. Still, Airbus was successful and a better offer from Boeing was rejected on grounds that are still unclear today.

This deal was suspected to have been achieved through questionable commissions. This consultancy company had close ties to Canadian and European politicians and assisted Airbus in securing the AC order. The extraordinary facet of this case is that Airbus openly admitted to these payments.

These three men have forced Syria to purchase Airbus aircraft, incurring big financial losses to Syrianair and the nation of Syria. The conclusion drawn by reports is that bribes were paid, the reason for which is quite doubtful because Boeing was not competing for the order for political reasons. All these examples have occurred well in the past, with one case dating back as far as the early s. Murray confirms the case study in saying that Airbus was able to take a tax deduction for bribes until and she cites the following incentives and threats used by Airbus in the past:.

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All these airlines were given more favorable slots or landing rights following orders for Airbus. Next, Murray accuses Airbus of selling aircraft below the cost of production. According to her findings, Airbus does not have the same commercial accountability due to its support from EADS and European governments. This will be highlighted at a later stage of this report, however Murray points out that Airbus regularly sells aircraft below cost to gain market share.

According to Murray , Airbus promises airlines that its aircraft will hold their value in the future. Finally, Murray links Airbus sales to unrelated trade issues. She cites five cases in which European trade policies appear to have been linked with aircraft purchases.

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Also, Airbus aircraft were a part of EU accession negotiations, with Murray claiming that a Central European airline official told her that the Europeans insist on Airbus purchases, making EU accession easier for the country in question. Not few experts would deem reducing the workforce in such dramatic numbers to be unethical behavior. The examined case study concerns the topic of ethics and how Airbus approached this field in the past.

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In order to analyze any potential wrongdoings by Airbus, the term ethics needs to be defined and explained. From a business perspective, Deresky , p. Behavior is dependent on values and since these differ significantly from one cultural background to another, a generally accepted form of doing business might be normal practice in one country but regarded unethical in another. This leads to a variety of ethical standards globally, thus posing difficulties for international corporations as their behavior has to be adapted so as to not being suspicious of acting unethically.

One specific ethical issue Deresky , p. In general, questionable payments include any payment made with the objective of accelerating business transactions and examples are bribes, sales commissions and grease money. Established in , US companies were prohibited from making illegal payments, aiming improve the US image and handing out severe fines for not playing by the rules.

This Convention obliges signing nations to make bribery of foreign public officials a criminal act on an extraterritorial basis Pacini, Swingen and Rogers, As such, the OECD Convention paves the way for clean business practices, providing for fair play and leveling the marketplace.

Having been signed by 33 countries at its introduction, 36 countries have now enacted anti-bribery laws based on the OECD Convention, making bribery a punishable offence.

In addition to the aforementioned laws, Deresky points out that many multinational corporations have confronted the topic of ethics aggressively. The next chapter examines how Airbus and Boeing have adapted the field of ethics in their strategies, comparing their different approaches afterwards. Business economics - Operations Research. Business economics - Business Management, Corporate Governance. BWL - Handel und Distribution. Business economics - Economic Policy. GRIN Publishing, located in Munich, Germany, has specialized since its foundation in in the publication of academic ebooks and books.

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