The primary ethical issue in the Airbus Company is transparency. The firm has witnessed official investigations by the US Department of Justice on alleged corruption cases. The company has been investigated for fraud and bribery cases which are concerning the Airbus Company incorporating external consultants in the sales of its commercial planes(Orudzheva, Salimath & Pavur, 2018).
Due to the alleged cases of corruption, the Company has had a bad reputation in the airline industry; thus customers lost trust in the firm. The loss of confidence is evident in the decreased sales of Airbus planes as it projected to sale 1200 jets but instead ended up selling only 234 aircraft. The primary customer of Airbus’ planes –EmiratesCompany based in Dubai decreased its purchase to 70 aircraft. The reason behind the reduced sales and cases of corruptions is due to the middlemen in the company sales involving themselves in fraud and bribery cases.
However, Airbus has created awareness on the impacts of the investigations resulting into heavy penalties on the firm and promised to change its operations thus secluded middlemen in the sale of commercial planes (Larkin, 2016). The issue of transparency has significantly affected stakeholders in Airbus Company. The stakeholders include the middlemen and financial partners. The middlemen would be locked out of business as payments for commercial planes are made directly to the firm. On the other side, business partners have to spend a lot of time on formal business procedures.
For the essence of reducing adverse effects of transparency to the middlemen and business partners, the company decided can decide to automate its payments transactions during commercial planes activities. The middlemen can, however, link up with plane inspections. Business partners also may be provided with online platforms to carry out all their activities with the firm.
Larkin, S. P. (2016). The Age of Transparency: International Relations without Secrets. Foreign Aff. 95, 136.
Orudzheva, L., Salimath, M. S., & Pavur, R. (2018). Vortex of Corruption: Longitudinal Analysis of Normative Pressures in Top Global Companies. Journal of Business Ethics, 1-23.
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