The cost of corporate deception and the drive for a healthy bottom line.

[gordonfvckingramsay]

https://www.abc.net.au/news/2021-01-08/boeing-fined-by-justice-department-747-max-deadly-crashes/13041586

And the civil cases have not even started. (https://www.abc.net.au/news/2021-01-08/boeing-fined-by-justice-department-747-max-deadly-crashes/13041586)

[Paragraph377]

This is something that should concern everybody!
The question is, whether or not Boeing is now going to mandate the strictest safety policy measures or, find more crafty loopholes and cost cutting in order to repay their shareholders?
Lives are of little concern to corporations when profits are involved. So they got fined, big deal. Where is the accountability of the CEO (former) and the Board? No jail time for those who control the purse strings and resources? No accountability for all of those deaths? TBH, just a fine is a joke. A bit like the 2008 market crash. Not one Wall Street parasite went to jail. Not one.

[neville_nobody]

Pretty funny that the CEO is blaming the Boeing Test Pilots who determined the training requirements.

[gordonfvckingramsay]

https://www.abc.net.au/news/2020-12-21/activist-investor-group-acsi-louise-davidson-corporate-australia/12985854?utm_source=abc_news_web&utm_medium=content_shared&utm_content=messenger&utm_campaign=abc_news_web

Hopefully people like this will drive change in the corporate ethics.

[Boe787]

Nothing will change until the penalty for this kind of corporate behaviour, is some time in jail.

[gordonfvckingramsay]

Nothing will change until the penalty for this kind of corporate behaviour, is some time in jail.


Or when investment funds abandon those publicly listed companies whom they determine to be unethical.

[Lazyload]

So in round terms let’s do the math on this and see where the money goes:

US govt penalty. $244M. 10%
Airline customers $1800M. 70%
Victims $500M. 20%

What do we make of that?
1. The US govt, of which the culpable FAA is a part, pockets $244M pure profit from the crashes.

2. The max customers who didn't have crashes (I assume Lion and Ethiopia don’t count) get 70% even though they had no direct involvement

3. The 346 victim’s estates get $500M or $1.44M each

And just to note that the 346 victims consists of pax and crew so hopefully the families of the pilots who fought the beast are also compensated, assuming of course that the US funds ever make it to Ethiopia and Indonesia.

[Traffic_Is_Er_Was]

I thought the deception was in the ABC story's title.

[Sunfish]

Nothing will change until the penalty for this kind of corporate behaviour, is some time in jail.


NO. Nothing will change until half a dozen CEO's and Boards are convicted, sentenced and die years later in jail.

Don't hold your breath waiting. All criminal penalties will do is increase CEO's salaries, increase the costs of D & O insurance massively and increase the use of sham contracting.

[Qanchor]

Agreed Sunny, nothing will change. There isn't a transport industry CEO anywhere who wouldn't sell his mothers pacemaker or eat her young.
Hence the collective noun, "a miasma of CEO's".

[gordonfvckingramsay]

I thought the deception was in the ABC story's title.

I guess they got the Boeing bit right, that’s pretty high level reporting for a journo.

[Oriana]

How do you get a six figure job on a board or a corporation, if you make laws that put CEO's and corporates in jail? :ugh:

[DBMeridien]

Seems to be a lucrative game taking a highly regarded business like Boeing with an admirable history in aviation and decimating it to the point of near extinction. The total cost of the Max debacle is looking to be in the vicinity of $70Bn and counting - lost sales, rectification, deferred deliveries, cancelled contracts plus penalties and compensation. More than enough $$$ to lead the market with development of NMA and all new narrowbody families to take Boeing well into the future - with maybe $30Bn in change left over.

And, the great leader that ‘led’ Boeing into all of this - Muilenburg - picked up $60m on the way out the door. Thank you.

I find this to be a crime against the people of Boeing that will have harder and more uncertain times for many years to come. It is a crime against the customers and the shareholders.

investing $70Bn rather than p#$&ing it (plus $60m) up against the wall would build a positive and leading future v uncertainty and risk aversion.

These are USD too.

Back to Oz. What did Borghetti make out of VA for taking it to the brink of death? More than the lifetime incomes of many.

I have seen high level execs make major, structural stuff ups and seem to be moved further up the corporate ladder. It is insanity.

Muilenburg and Borghetti will never need to work again. Maybe that is a blessing for many?

[gordonfvckingramsay]

Muilenburg and Borghetti will never need to work again. Maybe that is a blessing for many?

But they will though. These types need to take their next step up in the world, it’s their egos that drive them.

[KRUSTY 34]

Jeeze! Where does one start?

Corporations and Politics are both rife with “Leaders” who fit the bill of Sociopath. A marvelous juxtaposition that almost ensures those responsible are never, or at the very least rarely, held responsible.

Have a read of Mary L Trump’s book. Professor Trump not only explains how her uncle Donald was “created”, but how the attending sycophants (a class of people whom I personally detest), are the ones who largely enable this abhorrent mindset.

[Traffic_Is_Er_Was]

Borghetti moved on to the boardroom of Brisbane Airport.

[KRUSTY 34]

Borghetti moved on to the boardroom of Brisbane Airport.

That figures!

[Paragraph377]

Borghetti moved on to the boardroom of Brisbane Airport.
I laughed when that was announced. The twerp took $30m from VA and turned the airline into a clusterf#ck and then gets handed a plumb Board position by the arrogant Brisbane Amsterdam Corporation (BAC). Maybe a big airport makes the little man feel big!

I read an interesting piece of medical/personality study work many years ago that found most CEO’s and Politicians have the one same personality trait - sociopath, and many to a lesser degree - psychopath. Very interesting when you study how dangerous a sociopath is to a business or a political party. These people have no conscience and no ethics, just a giant black hole in their chests. They feel no shame, guilt or empathy. They are just self obsessed parasites. You would obviously have to include narcissism on the list of a CEO’s personality traits. Just look at people like Trump, Rudd and Turnbull. Scary sh#t. But a copy of ‘The Sociopath Next Door’, it will help you to understand your Executive Managers better (but give you sleepless nights).