Employee Grievance Redressal and Corporate Ethics: Lessons from the Boeing 737-MAX Crashes

Abstract

Two Boeing 737-MAX passenger planes crashed in October 2018 and March 2019, suspending all 737-MAX aircraft. The crashes put Boeing’s corporate practices and culture under the spotlight. The main objective of this paper is to use the case of Boeing to highlight the importance of efficient employee grievance redressal mechanisms and an independent external regulator. The methodology adopted is a qualitative analysis of statements of various whistleblowers and Boeing and the Federal Aviation Administration (FAA) stakeholders. It suggests that employee feedback flowing up the chain of command should be more flexible and dealt with more seriousness. It recommends that companies adopt a cooling-off period or a lifetime restriction for employees who have gone through the revolving door between regulators and the industry. The Boeing 737-MAX case, which emphasizes the ethical obligations of the job, can offer value to engineers, engineering educators, managers, ombudsmen, and human resource professionals.