July 9th, 2024

You Want to Fix Boeing? Prosecute Its Executives

Boeing settles with the Department of Justice for 737 Max crashes, pleading guilty to a felony, facing a fine, probation, and safety investments. Critics demand executive prosecutions for true accountability and change.

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You Want to Fix Boeing? Prosecute Its Executives

Boeing has agreed to a settlement with the Department of Justice, pleading guilty to a felony for the two 737 Max crashes that resulted in the deaths of 346 individuals. The settlement includes a probationary period, a nearly $500 million fine, and investments in safety programs. However, critics argue that this settlement is insufficient given the magnitude of the tragedy and the company's past behavior. They believe that prosecuting Boeing's executives is essential to ensure real accountability and drive meaningful change within the company. The families of the victims express anger over what they perceive as a lenient deal, allowing top executives to escape responsibility while continuing to profit. The Justice Department's approach of charging companies with felonies instead of holding individuals accountable is criticized for lacking the necessary deterrent effect. The call to prosecute executives highlights the need for personal accountability to prevent future safety lapses and prioritize ethical practices over financial gains.

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By @kombookcha - 10 months
>And that’s the larger point. The Justice Department seems to believe it’s meaningful to charge a company with a felony. But it’s not. Companies don’t commit felonies—people do. And if people aren’t held responsible—and sent to prison when necessary—then they’ll never have the incentive they need to change.

This is at the core of the issue, but as the author points out, it's extremely unlikely to happen.

>The settlement makes it obvious that the government is afraid of what would happen—not just to Boeing but to the Defense Department and even the larger economy—if it hit the company as hard as the company deserves to be hit.

Boeing is very much too Big™ to (be allowed to) fail, and thus the actual individuals who are responsible for killings hundreds of people will walk away and be replaced by another set of people who will know that they can do the exact same thing with impunity.

By @taylodl - 10 months
> “This airplane was designed by clowns, who in turn are supervised by monkeys.”

That feels like that would apply to half the software I use! Then again, it would describe some of the places at which I've worked. But I'm a software engineer and so I have lots of employment options. What's an aeronautical engineer, an aviation material engineer, or avionics expert supposed to do? They have limited options for employment - and that's why it's important to prosecute the executives.

It's bad for everyone that the DoJ offered a plea deal. I know that's SOP, but Boeing isn't a usual company, and this isn't a usual situation. We need to know what actually happened. Is this truly a failure of management as is being portrayed, or is this a failure of process? Has the complexity of design and manufacturing now exceeded our ability to ensure quality? These are the kinds of questions I would like to have answered and an actual trial would give us a better opportunity to learn the real issues.

By @raincom - 10 months
It is very hard to get guilty verdicts because prosecutors have to prove the culpability of any executive of any large corporation. In large organizations, executives are shielded by layers of bureaucracy along with legal counsel.

There is a way to get around this problem of proving culpability of individuals in large organizations. RICO was a way to go after mafia bosses. Thanks to the revolving door (of politicians, staffers of various committees, DOJ employees, prosecutors), it is impossible for the latter class to use RICO to go after any executive of any large company. Of course, one can say SBF was convicted; here, it was easy to find evidence to prosecute and convict SBF.

By @Stranger43 - 10 months
Going directly after the executives would at the very least be better theater then letting a company pay the government with the governments own money.

It probably wont fix the issue but this kind of non-action is why most people have lost all trust in the American Governments ability to regulate corporations at all.

It's very likely that the current court structure would be extremely reluctant to issue any guilty verdict against a member of the executive class for simply chasing short term profit at the cost of the public good/safety so that this is the best that could be do but if that's true it's basically demonstrating that the technocratic center have lost it's ability to be effective technocrats and that can/will have severe implications for who is considered electable to the point where we might not see another centrist government for a while.

By @bearjaws - 10 months
It feels like in the future Universe post Chevron vs. Natural resources defense council we are going to either have to punish executives or inevitably guillotines will start to come back.
By @lordnacho - 10 months
About this case specifically, is there anything the execs can actually be put in jail for?

In general, corporations need to be more fragile than people. A corporation can live forever, gathering up resources, eating up the useful work of tens of thousands of people. Corporations can also be born a lot more easily than people.

Making it easy to kill them would actually benefit a lot of people, since the people can be transferred along with their experience to other corporations.

Want to make real culture change at a company like Boeing? You make it easy for Boeing to die, so that the people who have other ideas about how to make planes can do so without a massive incumbent in their way.

By @nashashmi - 10 months
A culture of safety was transformed into a culture of results and productivity. That is not a crime. That’s a business achievement.

Do you remember when the Boeing 787 Dreamliner kept getting delayed? At some point I thought it was never going to get completed. And then they had to compete with Airbus. Competition is what killed Boeing safety culture.

By @djyaz1200 - 10 months
Counterpoint: How about the government subsidize Boeing on the same level as the EU does with Airbus?

The original sin of the Max disasters was rushing to make the 50+ year-old 737 something it wasn't meant to be to counter Airbus's success in the narrow body segment.

By @Havoc - 10 months
That’s not really how the law works though.

You need to actually prove with evidence actual wrongdoing on their part as a person. Or at a minimum prove that they failed in their fiduciary duties - a frustratingly murky concept.

Innocent until proven guilty, burden of proof etc all still applies.

Some general sense of well you were at the helm and everyone is angry thus you go to jail isn’t going to stick legally.

That’s not to say I’m against it, if they can manage to find suitable evidence they absolutely should. Just saying the article is big on emotion (rightly so) and thin on legal basis.

By @agentultra - 10 months
Echo this for security at tech companies. The industry would be much different if the liability were shifted to incentivize the right behaviors.
By @pydry - 10 months
The upper classes don't allow the prosecution of people like themselves unless their crime was extreme in some way (e.g. SBF, Epstein, Shkreli). It sets too awkward a precedent.

This is as true now as it was during the financial crisis. The most they will do is toss an engineer following orders under the bus like they did with Volkswagen.

By @techostritch - 10 months
But if we prosecute Boeing’s executives, what message would that send to other executives? That they shouldn’t sacrifice safety engineering standards in the pursuit of record profits? Will no one think of the shareholders!