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by MrJohz 825 days ago
I think having a blameless culture is a separate issue.

Let's say Bob gets a job in a Boeing factory and on every plane he works on, he deliberately hides a bunch of broken components in the system, thereby causing the planes to fall out of the sky. We can talk blamelessly about how we can avoid every hiring someone like Bob again, or taking precautions against malicious employees, but Bob himself has to accept the criminal liabilities that come with the choices he made: his decisions caused people to die.

But what happens when Bob instead installs himself as the CEO, and deliberately makes choices that prioritise revenue and stock prices over safety, knowing full well the risks that he is forcing on people, and that his planes in some cases fundamentally don't work? From a blameless culture perspective, we again need to figure out how we can avoid hitting another Bob and having these mistakes happen again, but surely we also have to recognise that our CEO actively, and in some sense maliciously, made decisions that caused people to die?

In this case, thankfully (and ultimately lucky) nobody has died - although previous incidents have not had such good outcomes. But we still need to recognise that this culture came from decisions made at the top of the organisation. I fully support a blameless culture that doesn't punish people for making mistakes and tries to fix the long-term, fundamental issues rather than find a scapegoat for each incident. But this goes beyond simply making mistakes, especially when one remembers the pattern of behaviour within the Boeing organisation that has caused several incidents like this.

I picked the CEO as an example because it's a visible role, although in this case I believe several CEOs have overseen the decision making that has lead to these incidents. I am not saying that the CEO specifically is at fault here. But wilful decisions have absolutely been made that have put us in this situation, and I think it is absolutely right that if you make decisions that ultimately lead to potential injury and death, you need to suffer the consequences of those decisions. And for that, we have a criminal justice system.

1 comments

Someone has to make the final call on how much money to spend on making planes safe. The spend can't be $infinite and will be more than $1.

We can quibble with the amount that got picked. It turns out in this case the amount spent was too low. But it is unreasonable to talk about "... deliberately makes choices that prioritise revenue and stock prices over safety ...". At some point the call has to be made that the planes being built are safe enough, and that from there start to focus on profits. These companies have to produce more value than they consume (which is what "profits" represents at the macro level) otherwise there isn't any point producing.

In this case the call was made poorly, but the call had to be made. Holding the call maker personally responsible isn't the path to more successful outcomes in the future. The path that has been working quite well for around 2 centuries is to hold the company responsible for what the company did. If we start penalising CEOs for trying to build planes profitably, then it is possible that the industry will collapse. There is no justification here to hold people personally liable. It is enough to hit Boeing with an appropriate fine.

Maybe it should be okay to punish the decision makers when they decide to go against the recommendation of engineers for profit and it leads to hundreds of dead people. If not prison maybe they should be stripped of all their wealth rather than get a golden parachute as that's the worst outcome they have today.
When you consistently make decisions that knowingly prioritise profit over product safety[0], you have crossed the line between financial prudence and corporate manslaughter.

0: https://www.macrotrends.net/stocks/charts/BA/boeing/gross-pr...

Executives set cultural standards as well as budgets
> But it is unreasonable to talk about "... deliberately makes choices that prioritise revenue and stock prices over safety ..."

I can't see how that is unreasonable. Nobody here is arguing that Boeing officials should be held criminally liable because they didn't invest enough money into safety. The liability is because they are blatantly disregarding safety. They invented MCAS and didn't let pilots know about it. One plane crashes and they don't care. Second plane crashes and they don't care. For years, stupid things keep happening and they still don't care.

By your logic, a psychopath CEO may deliberately undermine safety culture to earn more profits and still won't be held responsible, because it's “limited liability”. Limited liability means that financial liability is limited, not criminal one.

> By your logic, a psychopath CEO may deliberately undermine safety culture to earn more profits and still won't be held responsible, because it's “limited liability”.

Yep. This is how it is generally done. Shareholder's in Boeing are literally responsible for installing "a psycopath CEO" who undermined safety and they aren't liable. I see little difference between that and extending the protection to the CEO as well. It gets better results because we don't chase risk-averse people out of the CEO position. In this situation, we WANT the most risk-averse people we can find in the CEO seat of the airline manufacturers. They won't take it if the response to a crisis is making the position more risky.

There is an argument that the CEO should be liable if it leads to more productive results. But I don't see why that would be true - it is more effective to adjust the profitability of the company when things go wrong and let the incentives do the rest. The default position is that doing your job poorly is not criminal.

Also; most CEOs are psycopaths. You don't need to include it as an adjective. It is built in to the title.