Business Ethics

The Challenger Disaster

Spring Summer 09-11HRMIIPM, Bangalore3rd August 2010

Pratibha SPrerna Goyal

Prayag Sunder

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Executives Comment on Reputation

“A reputation, good or bad, is tough to shake”

-Richard Teerlink, CEO, Harley-Davison

“Integrity is doing the right thing, even if nobody is watching.”

“Live so that when your children think of fairness and integrity, they think of you.”

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STARS???

Crater???

Flag’s Bright & Fluttering???

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Questions that NASA Brushed Aside

Buzz Aldrin- “the second man on the Moon”

Virgil Grissom- NASA astronaut who baited the Apollo program

“If there is ever a serious accident in the space program, it's likely to be me.”

Neil Armstrong ???

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So How Ethical Is NASA ?

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Facts & Figures

Challenger flight 51-L was the tenth launch of the Challenger series

28th Jan,1986Exploded after 73 seconds after

flightEmployed Solid Rocket Booster

Companies Involved:

Morton Thiokol, Marshall Space Flight Center, Johnson Space Center and NASA Headquarters

The Night Before The Launch

Pressure CreatedO-Ring ConfusionThe TeleconferencePut On Your Management Hat

Engineering Design Problem

The ambient temperature;The diameter of the O-rings;The thickness of the shims;Loads on the segment.

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Technical Aspect

What Went Wrong?

Only executives votesWork place ethicsPower distanceOrganizational structureEconomical & social pressuresPoor decisionsTop executives were behind fame &

fortuneProblem fixation –wrong approach

Problem Solving ProcessFind & define problem

Generate & evaluate alternative sol

Finding sol & alternatives

Preferred sol & double check

Implement & evaluate results

Steps To Prevent The Disaster

More then one answer or best way

Let your thinking roam

Challenge rules

What if?

Ambiguity helps

Don’t be afraid of error

Take time to experiment

Open up

Believe in creativity

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Challenger Flight 51-L

A case history in whistleblowing

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Introduction

Relevance

Culture within the Organization & Risks Involved

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You did the right thing, whistleblower.So naturally, we have to fire you.

Good-Bye!

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The Dilemma

To Stay Silent

To Blow The Whistle Internally OrWith A Responsible Person

To Blow The Whistle Outside To TheAuthorities Or The Media

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Aims Of A Whistleblowing Culture

Look at the whistleblower as a witness and not as a complainant

Communication channels in the organization

With a culture of secrecy and silence, temptations to indulge in malpractice is high

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Essentials Of A WhistleblowingCulture

Honesty is the Best Policy

Action Speaks Louder Than Words

The Last Resort

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21st Century Methods

The Corporate ImageFlat Organizational StructureEducation and Ethics

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• The American taxpayer bet about $14 billion dollars on the shuttle.

• NASA bet its reputation.• The Air Force bet its reconnaissance

capability.Thank You

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Thank You For Your Attention