The root of any renowned and huge organization lies in the ethics, values and the functioning of its social responsibilities. In the 21st century, the modern era business culture includes in depth concern to corporate or work culture of a company. There are many organizations existing today that is focusing more on this particular concept along with quality management system and advancing techniques.
One of the well-reputed organizations admired from afar is the Southwest Airlines of the United States. In this case, study, an engaging elaboration of ethical and social responsibilities of Southwest Airlines shall be discussed.
The requirement for ethics and norms is huge in a company in today’s world. The increasing population in the world in influencing every existing mechanism in the planet including the work cultures of places. The internal traits beliefs and behaviors, business activities performed in a company and their typical way of functioning, holds up the concept of ethics, values and social responsibilities.
The entire management structure of Southwest Airlines is methodical and well organized. The company comprises of several layers to its management system. As stated by Carroll & Buchholtz (2014), the senior executive level crew is known to be highly experienced as well as cooperative to the level of employees below. Though there are never ending problems arising day by day, the responsibilities are maintained in effective manner with the help of appropriate leadership qualities by the board of directors.
The hierarchy also has a skillful functioning team that is Aviation security department, Air navigational department, Air transport sector and the flight operations. The firm possesses a neutral party that is the legal department of Southwest airlines, which acts as a constant leading medium in order to enhance organizational harmonization by taking significant and neutral decisions for the other members.
In the opinion of Freeman & Moutchnik (2013), one of the strongest qualities and reason behind immense growth and expansion is the organization’s cost management and customer friendly attitude. The company also holds a remarkable reputation for employer employee relationship. For these specific criteria, the senior management department is highly responsible. It is one of the rarest organizations that offer free and special services to its passengers inviting and attracting more every day. In contrary, though the company has been excelling in the mentioned field, the rapid expansion has also brought about several issues against the success story and the ethics and norms carried out in the organization plays a significant part in it.
The investors’ relation in the company has been dealing with conflicts to maintain a proper balance in business activities such as, meeting consumer expectations, stabilizing financial activities carried out in the company and balancing the criteria and regulations of internal financial requirements and a standard business class ticket fares. The company is also facing strong competition focusing on these areas lately.
As per Kolk (2016), the southwest Airlines has been on the verdict of implementing new ideas and bringing forward cost friendly strategies by arranging business meetings of the higher authority though the issues arising in the recent years has highly impacted the compliance, ethics and values of the company resulting in the formation of heavy atmosphere in work culture.
The cultural social responsibility aspect in an organization is being given a new perspective today. It has ended up being one of the core influencers to the other branches and its functions.
The airlines company as a whole experienced a great work culture over the years. The other competitions have been quite aware of the fact. The mission of this firm is to prioritize its employees and customers. The work environment has been made friendly and warm in order to establish stability among workers. The company expects its employees to be dedicated with well-maintained integrity at workplace.
Though Southwest airlines is known to consider its employees significant, similarly the employees are well trained and incorporated with standards habits and ethics of putting the guests and passengers demands first when it comes to the focus area of cultural and social responsibility (CSR). As per Haski-Leventhal et al. (2015), these particular groups of responsibilities include aspects of human rights, business principles, corporate and social ethics, privacy of consumers and employees, work re quality and diversity, efficient environmental factor supports and more. In the opinion of Panwar et al. (2017), the company puts effort to increase satisfaction in work culture continuously.
It is evident, that employees will only be satisfied and work in a firm, if they achieve job satisfaction and feel respected. Due to the lack of such regulation in many organizations, the attrition rate of employees has been increasing.
Almost every living being expects a set of esteem and respect towards themselves. The notion of spreading equity is diminishing the negative impacts such as racism, discriminations and distressing commentaries. In this scenario, the senior management team including the CEO of the company has been encouraging the members of the lower hierarchy keeping them aware of the fact.
According to Panwar et al. (2017), along with the smooth and constant flow of business management and cultural ethics, a great company like Southwest Airlines has been experiencing issues, which are eventually influencing the ethics, values and social responsibilities of the organization. There has been arising controversial discussions about such conflicts, which are quite time consuming for the company to resolve.
The recent controversial statements about the occurrence of the fuel price dispute. In observation, the company has been undergoing huge loss due to sudden increase in the fuel price, Since Southwest airlines was marked as one of the top companies for a low cost travel and customer friendly services at a lower cost compared to other organizations and its competitors, it has to go through plenty of hindrances in particular.
Balancing by impressing its customers and employees as well as maintaining profitable revenue of the company has been a tough challenge for the senior management team and the directors, ("Corporate Social Responsibility: How it Impacts Business in 2016 | Mondo", 2017).
The fuel price and the cost of the air tickets are directly proportional to each other. The rise in the cost of one factors lead to an impact on the mindsets and thought process of people.
Though a useful strategy has been taken by the organization to put up with the loss, such as fuel hedging, it has still not diminished the challenges completely. Hedging of fuel is a well-known process considered by airlines business companies in order to cope up with the high price services and to increase productivity more than loss.
As per Chan & Park (2015), the hedging of the contracts is aiding the method of cost reduction to some extent but it is claimed as per the reports that the main current expenditures of the airlines company are the cost of labor and the cost of fuel. Both of these factors are standing as an obstacle to overcome customer dissatisfaction.
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