Building an Ethical Culture in the Workplace
This is the question that all ethics educators should ask. If we can’t make a link between teaching ethics and enhancing ethical behavior in the workplace, then why are we doing it in the first place. In fact, teaching ethics to a group of uninterested employees could have the opposite effect. It could develop a cynicism that infects the culture and spreads throughout an organization.
I’m always amazed by the fact that many organizations have a code of ethics, yet unethical behavior still persists. A good example is Boeing. Boeing had ethics training in its guidelines for ethical behavior, but it didn’t do any good at the end of the day.
Boeing Puts Profits Ahead of Safety
Has Boeing been held sufficiently accountable for the disasters that occurred in 2018 and 2019 when two fatal crashes led to the deaths of 346 passengers and crew? Both accidents were caused by the faulty flight control software, Maneuvering Characteristics Augmentation System (MCAS), that led to the worldwide grounding of the 737 MAX fleet. Mintz and Miller analyzed the safety culture at the company and concluded that Boeing had put profits ahead of safety.
Boeing’s claimed ethical principles center on core values like Safety & Quality, Integrity, Transparency, Accountability, and Respect. These are consistent with the concept of Responsible Leadership. The Code outlines expected behaviors for all employees and includes the following provisions most related to Responsibility.
- Complying with all applicable, laws, rules, and regulations.
- Prioritizing safety, quality, and integrity above profit.
- Acting transparently in dealings with regulators, employees, and customers.
- Being respectful of colleagues and not tolerate harassment.
- Supporting an inclusive environment.
- Protecting Boeing proprietary information and not seeking personal gain.
- Reporting illegal, improper, or unethical conduct to management or through appropriate channels.
- Avoiding retaliation or punishing anyone who speaks up to report a concern.
A brief look at these core values shows that Boeing did not follow their own principles. The company did not comply with all applicable laws and regulations, especially those of the Federal Aviation Administration (FAA). A 6-week FAA audit in early 2024 revealed 33 failed audits out of 89, with a total of 97 instances of alleged noncompliance regarding Boeing’s 737 MAX production, including issues with the door plug, manufacturing process, parts handling, and storage. The FAA also identified hundreds of quality system violations during this period.
The following two violations compromised the trust of the FAA and flying public.
- Reporting illegal, improper, or unethical conduct to management or through appropriate channels.
- Avoiding retaliation or punishing anyone who speaks up to report a concern.
The bottom line is the public lost faith in Boeing because of the lack of honesty and integrity with respect to its adherence to safety guidelines and not accepting responsibility for the failure of the MCAS system.
Ethical Leadership
Ethics is important for leaders to build a culture of integrity. Pressures exist in the workplace and conflicts need to be resolved. Employees may feel threatened if they don’t “go with the flow.” At Boeing, there were internal reports of problems with the 737 MAX planes. There were defective parts. Yet, Boeing management went ahead, believing no actions were necessary perhaps because the safety issues were not significant enough to sacrifice profits. Moreover, there were internal whistleblowers whose concerns were not heeded.
Ethical leaders should ask themselves: “I can do something, but should I?” Leaders should consider in advance what they might do in complex situations. While they need to balance the good and bad, it is not sufficient to make difficult decisions solely on that basis. Additionally, ethical leaders should consider whether the rights of any party would be sacrificed in deciding on a course of action. In the case of Boeing, the flying public had a right to expect the company did a risk assessment before deciding to what to do about reports that there were defective parts in some of the planes thereby compromising safety.
BP Deepwater Horizon
The story of Boeing is just one of many that have left me shaking my head. It seems as though businesses do not learn the lesson of ethics in the workplace, often revolving around safety issues. For example, back in 2010, technicians on British Petroleum’s (BP) Deepwater Horizon oil rig continued drilling even though their blowout preventer was defective, faulty software was causing their systems to crash, their emergency alarms were disabled and a $500,000 acoustic trigger, which could have shut down a busted well, was not installed. Eleven employees were killed, 17 more were injured, and nearly 5 million barrels of oil leaked into the Gulf of Mexico.
At BP, the management ignored critical warning signs, bypassed safety protocols, and prioritized cost-cutting over safety, directly leading to the 2010 Deepwater Horizon disaster. A “culture of complacency” allowed known risks, such as a faulty cement seal, to be overlooked, culminating in the explosion that killed 11 people.
One of the drivers of unethical behavior, such as ignoring safety issues, is putting short-term gains ahead of long-term responsibility. This occurred at both Boeing and BP. The management at both companies failed in risk management. A former BP consultant described a culture of greed that led to worst oil spill in US history. Bob Bea, an expert in catastrophic engineering failures and a former BP consultant, said the disaster was a “classic failure of leadership and management in BP”.
Conclusion
It’s time for businesses to recommit to their social responsibility. It’s time for them to put the interests of stakeholders—especially investors and creditors; employees and the public—ahead of self-interests. The public expects nothing less.
Warren Buffet is quoted as saying, “In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And, if they don’t have the first, the other two will kill you”.
Blog posted by Steven Mintz, Ph.D., on February 20, 2026. Dr. Mintz is a professor emeritus from Cal Poly San Luis Obispo. You can find out more about his activities at: https://www.stevenmintzethics.com/.