Sustainable Value Framework in the Boeing Company

Sustainable Value Framework in the Boeing Company

Several individuals across the globe think that sustainability is an aspect that is quite expensive to nurture; however, their thoughts are irrelevant based on the underlying facts. Businesses strive to attain their success by integrating strategies to potential elements of transformation within their operations. Sustainability is a business strategy that drives an organization to look impressive and substantial in front of its consumers, shareholders, and other individuals (Spechler, 2017). I chose Boeing company to center my analysis and application of the Sustainable Value Framework. The multinational corporation manufactures, designs and vends airplanes, rockets, rotorcrafts, satellites, telecommunication equipment, and missiles worldwide. The company based in the United States form part of the top manufacturers and exporters of aerospace products. It has been recognized as a global firm that embraces sustainability and innovation, leading to the emergence of the following five divisions. The Boeing Space, Boeing Capital, Boeing Security, Boeing Commercial Airplanes, and Boeing Defense. As a result, the wider role played by this company in the global market poses notable issues. Developing a culture that aids swift resolution or crisis prevention is a global challenge Boeing is working towards achieving. The company faces enormous systemic issues, cultural differences, environmental concerns, improper manufacturing, engine exploding, crashes' adverse impacts, crashes, and compensations (Petrescu et al., 2017). The SVF embraced within the multinational firm has helped extend the life cycle of their products and services as they maximize the quality, mitigate risks, and embrace advanced technologies. Therefore, this paper will discuss the sustainable value framework and apply it to the Boeing Company.

An Overview SVF

According to Yacob et al. (2020), SVF is a model that assists an organization in identifying strategies and practices that pave the way for a sustainable world while boosting shareholders' value. Mark Milstein and Stuart Hart constructed a quadrant that shows how sustainability leads to added value. If the framework is applied correctly, creating the sustainable value and win to win approach becomes simpler in a business setup. In simple terms, the framework entails making informed decisions, fostering value creation, and considering sustainability challenges. The quadrat constructed involves four essential components. Clean technology, pollution prevention, product stewardship, and the base of the pyramid. Below is a quadrat's model of SVF:

Figure 1.0: SVF (Hart, n.d.).

#1. Clean Technology

In the sustainable value framework, clean technology is a substantial component for companies in attaining a competitive edge and opportunities in the future. This denotes that developing advanced technologies and practices within a business setup forms aspects seeking to develop future opportunities (Yacob et al., 2020). The common segments that the Boeing Company operates with include global services, security, commercial airplanes, space, and defense. The segment that entails commercial planes involves manufacturing and marketing them across the globe. In addition, the segment entails managing essential fleet services. For the segments dealing with defense, space, and security, their aims entail participating in continued research to enhance the production within the company while advancing the military aircraft. On the other hand, this segment engages the development of modern weapons while improving the current ones to enhance their usage during global strikes. Boeing has facilitated battles' control, command, and management (Lehmann, 2016). For instance, the company manufacturers missile systems, global mobility equipment, and combat rotorcraft aircraft.

 Subsequently, the elements within these varied segments form part of clean technologies and their relevant practices. Technological innovation and modification create value in business; the modern world encounters several upcoming trends that demand active participation to adapt and embrace them in developing current products, services, and sustainable skills. Suppose fewer adverse impacts on the local communities and environment, the products' life cycle will be longer. The clean technology component of SVF aids in developing future business opportunities. The Boeing Company successfully utilizes this component to recognize where their business is well endowed with product opportunities, the communities to engage, and activities with less adverse environmental impacts. These activities gravitate around clean technology to aid space surveillance and transform commercial airplanes worldwide. Some of the terms used across the company are innovation, customer-responsive, efficiency, and quality. These terms are substantial in enhancing the productivity of the internal services, which stimulate the desire to advance their productivity in due course (Lawrence & Thornton, 2017). Furthermore, the value chain of this multinational company is developed based on a back and forward channel that engages the supply of raw materials and the final consumer of the services.

2#. Pollution Prevention

Pollution prevention is another component of a sustainable value framework that entails mitigating waste and emissions from the existing facilities and operations. Cost management and risk mitigation take the core value of the businesses. For the case of sustainability value, the Boeing company has been evaluating its practices while engaging its workers and relevant stakeholders while searching and identifying means to minimize waste and efficiently utilize the available resources. As a result, the multinational company had succeeded in lowering the tendency to risky situations, diminishing the operational costs, stimulating engagement within the task force. Boeing's organizational culture and policies have impacted several processes across its units like other companies. Some individuals might think about mitigating waste despite implementing sustainable practices in the internal management being a notable activity forming part of the pollution prevention aspect of the SVF (Yacob et al., 2020 and Hart, n.d.).

 The manufacturing company engages its employees and other individuals to offer solutions and interventions for addressing an issue. Integrity is a cultural aspect that companies embrace to ensure the existence of honesty among their owners, clients and the task forces. For the case of Boeing company, the chairperson usually hosts the broadcast event annually with the company's workers from places across the globe to create awareness about ethical decision-making. Air pollution is a common environmental concern that companies like Boeing encounters. Responding to environmental issues demands informed decision-making and policy formulation. For instance, commercial airplanes are manufactured and designed to emit fewer chemical gases detrimental to human survival and climate change. In addition, the company faces several lawsuits, online insecurity and unprecedented events such as craft crashes. For example, between the years 2018 to 2019, Boeing incurred fatal crashes that left 346 individuals dead on the spot.

3#. Product Stewardship

Product stewardship is another component of a sustainable value framework that engages stakeholders in managing the company's products. Sustainability leads to reputation development with other stakeholders from other companies operating in the same line of production (Hart, n.d.) Due to this, Boeing, the multinational company, can differentiate itself from a larger pool of competitors. Engaging third parties and a full value chain will enable the company to develop and manage its products, meaning liaising with sustainable companies in the value chain adds value. Companies promote respect by abiding by the views of their employees and stakeholders. Boeing considers its varied team players' strengths, skills, and perspectives. It creates a situation where employees are engaged in finding the solutions concerning their products. Also, Boeing company incorporates a collaborative workforce, stakeholders, customers, and suppliers. The vision of the company considers collaboration and teamwork. The vision denotes that the corporation embraces diversity while taking advantage of the disparities within varied groups within a company (Agyeman, 2021).

On the other hand, the multinational company maintains its reputation and brand for being a global enterprise as stipulated in its mission statement. It achieves these through the proper organization of teams with relevant knowledge and skills to attain the set goals. Moreover, this company arranges internal events like training programs to sharpen their employees' skills and embrace diversity and inclusiveness (Hart, n.d.). Boeing company manufactures airplanes, rotorcrafts, and missiles. These products are fatal if mishandled; the company considers safety part of core values that influence their daily operations. Boeing company values human health and life significantly compared to other aspects within the company; thus, considering all the recommended precautions to promote the safety of its workplaces, products, and services. The denotes Boeing considers the development and manufacture of safer products as they are rendered to the market. It is a safety policy in the company that employees are in charge of safety precautions; since there is no room for compromise when it comes to safety. For individuals to manage any business externally, they need to develop new products in the global market that incorporates core values of sustainability (Agyeman, 2021). Considering certification leads to legitimacy and development of a positive reputation among the stakeholders in the company while joining hands with collaborative groups to champion for and create sustainable practices for the value chain.

#4. The Base of Pyramid

This component of the sustainable value framework focuses on creating modern business activities and practices to address needs and gaps that emanate within a group of underserved and poor individuals. This component aids in developing business opportunities and utilizing distinctive techniques like bringing together companies, competitors and customers to recognize sustainable biofuels and developing appropriate air traffic management approaches within the Boeing company. A suitable corporate culture within the organization improves productivity and the employees' financial well-being due to the motivation it guarantees to them. The multinational company embraces a suitable corporate culture that depicts the highest level of its efficiency (Yacob et al., 2020 and Hart, n.d.).

Boeing is a company that also follows Carroll's pyramid of CSR that forms four main business responsibilities: legal, economic, ethical, and philanthropic. The concept in the company is a view in the form of a pyramid, stating the four business responsibilities are developed to address all aspects of the CSR and the expectation of stakeholders concerning both social and economic issues. The importance and implementation of the company's responsibilities rely on the company size and the economic status. In addition, innovation helps address the existing market needs and meet the new requirements that have been put in place. The company presents dynamism in various dimensions like the products, consumer preferences, and evolving technologies (McCurdy, 2019). On the other hand, global services form part of the major divisions existing in the Boeing company that focuses on the offering which offers its services to the defense and commercial aircraft while the capital segment offers product financing to the consumers of the multinational company (Lehmann, 2016). The process of financing when the need arises, the process of financing forms part of the activities for the pyramid base component. In addition, the segment manages the overall financing. Boeing seeks to advance its interest by strengthening competition while safeguarding its reputation.

Conclusion

In the final analysis, Boeing manufactures, designs and vends airplanes, rockets, rotorcrafts, satellites, telecommunication equipment, and missiles worldwide. The company based in the United States form part of the top manufacturers and exporters of aerospace products. Sustainability is a business strategy that drives an organization to look impressive to its consumers, shareholders, and other individuals with relevant interests. SVF is a model that assists the organization in recognizing strategies and practices that pave the way for a sustainable world while boosting shareholders' value. Mark Milstein and Stuart Hart constructed a quadrant that shows how sustainability leads to added value. As a result, the wider role played by this company in the global market poses notable issues. Boeing seeks to address a global challenge by developing a culture that aids swift resolution or crisis prevention. They face enormous systemic issues, cultural instilling, environmental concerns, improper manufacturing, engine exploding, crashes' adverse impacts, and huge fines and compensations. The sustainable Value Framework embraced with the multinational firm has helped extend the life cycle of their products and services as they maximize the quality, mitigate risks, and embrace advanced technologies. The framework entails making informed decisions, fostering value creation, and considering sustainability challenges. The four components embedded in the sustainable value framework are clean technology, product stewardship, pyramid base, pollution prevention. The framework components pose substantial changes in the Boeing company due to inclusivity. Clean technology is a substantial component for companies in attaining a competitive edge and opportunities in the future. This denotes that developing advanced technologies and practices within a business setup forms aspects that seek to develop future opportunities.

References

Agyeman, N. E. S. (2021). The impacts of principles on the production of civil aircraft in Boeing. Aircraft Engineering and Aerospace Technology.

Lawrence, P. K., & Thornton, D. W. (2017). Deep stall: the turbulent story of Boeing commercial airplanes. Routledge.

Lehmann, C. F. (2016). Strategy and business process management: Techniques for improving execution, adaptability, and consistency. Auerbach Publications.

McCurdy, H. E. (2019). How Corporate Executives Approach Business Decisions: Financial Planning for the Boeing 707 Jetliner. In Financing the New Space Industry (pp. 27-32). Palgrave Pivot, Cham.

Petrescu, R. V., Aversa, R., Akash, B., Corchado, J., Berto, F., Apicella, A., & Petrescu, F. I. (2017). When Boeing is dreaming–a review. Journal of Aircraft and Spacecraft Technology, 1(3).

Sustainable value: Stuart L. Hart. (n.d.). Retrieved January 1, 2022, from https://www.stuartlhart.com/sustainablevalue.html

Spechler, J. W. (2017). The Boeing Company and the International Association of Machinists and Aerospace Workers Union. In Reasonable Accommodation (pp. 45-55). Routledge.

Yacob, P., Nodeson, S., Yee, C. F., & Sai, M. L. (2020). Operationalization of Sustainable Value Framework. In Charting a Sustainable Future of Business and Social Sciences (pp. 287-306). Springer, Singapore.