The CEO Elevation Group

The Imperative of Ethical Leadership: Lessons from Boeing

Honestly,

(Okay, I’ve never said “to be honest” or “honestly” in my expression, as I feel that we’re always honest right? Why do we have to say it? However, I now finally get it… It’s not that they’re not honest when they don’t say it. It’s that they want to emphasize things when they say.)

So, to be honest, I have been waking up at night ever since I saw the news about a panel of an Alaska Airlines-operated Boeing 737 MAX 9 jet blowing off.

The teenager who sat close to that door had his shirt sucked off his body when the panel blew out due to the pressure.

The consequences of being unbelted at such a moment are unthinkable.

However, what could have happened if that teenager was unbelted?

It could be that he was just go to the toilet or coming back to his seat.

What could have happened if less than a two-year-old baby?

Babies aren’t required to wear a seatbelt, sat in that seat.

These imaginings keep me awake at night.

I believe many people, especially parents, think the same.

And this incident is just one small example of many from Boeing’s aircraft crises.

A series of crises at Boeing underscore the critical importance of ethical leadership in business.

From safety failures to production scandals, Boeing’s missteps serve as poignant reminders of the profound impact that ethical lapses can have on organizations, stakeholders, and, most importantly, people’s lives.

1. Ethical Business

a. Breaches at Boeing
From flawed safety certifications to substandard materials, Boeing’s decisions were not small errors. They were conscious choices that traded safety for speed and profit.

You are building planes that carry lives thousands of feet above the ground. This isn’t furniture manufacturing. This is life and death.

How do leaders justify cutting corners on quality control?

Ethics in leadership is not optional. It must come first, always.

b. The Human Toll
Unethical choices don’t just damage reputation; they cost lives. Families have been torn apart. Trust has been destroyed.

This is the weight leaders carry. Every choice affects human beings, not just financial statements.

2. Choose Leaders for Who They Are

Leadership is not just about hitting performance metrics. It is about living values and integrity in every decision.

Boeing’s crises show what happens when this is ignored. Had authentic, values-driven leaders been at the helm, safety would never have been compromised for profit.

It took over a hundred years to build Boeing’s brand. Unethical leadership destroyed it in a fraction of that time.

What failed was not the company, it was its leaders.

  • Unethical decisions driven by profit pressure.
  • Lack of transparency with regulators and the public.
  • A culture that silenced concerns and rewarded speed over safety.
  • Cozy regulatory ties that weakened oversight.

When leaders forget their purpose, organizations collapse from within.

3. Purpose of the Organization

Profit is not a company’s true purpose. Purpose is why an organization exists at all.

Boeing’s mission is “to protect, connect, and explore our world and beyond.” Yet the company’s leadership strayed far from this. Two CEOs left in disgrace, their decisions betraying both Boeing’s mission and the public’s trust.

When purpose is abandoned, no amount of profit can save you.

4. Board Leadership and Integrity

Boards hold the ultimate responsibility. Selecting leaders cannot be reduced to performance numbers and shareholder returns.

Boards must choose CEOs who lead with integrity, who protect purpose over short-term gain. For Boeing, this is no longer optional. The company’s survival now depends on it.

Final Reflection

Ethical leadership isn’t about compliance. It is about courage- the courage to put human lives above quarterly earnings, the courage to tell the truth, the courage to lead with values when it costs you something.

Boeing’s story is a stark reminder: when leaders betray ethics, they betray trust, purpose, and humanity itself.

And if I’m honest- my head still hurts.

My heart does too.

By Catherine Li-Yunxia
Top Global CEO Coach & C-Suite Coach 2023 | Keynote Speaker on Human Leadership | Author of Integral CEO

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