Free «International Ethics on Leadership Policy-Making» Essay
Table of Contents
The study of ethical governance has become of vital concern in the running businesses (Blome & Paulraj, 2013). The downfall of Lehman Brothers and the flop of Enron are examples of companies that have collapsed due to unethical conduct (Fontrodona, José, Sison, & De Bruin, 2013). The collapse of Enron reduced the client’s assurance of the financial industry. Moreover, it caused damage to the thousands of employees and brought greater disturbances for governments. The case study in the discussion is the Emirates Airlines Company with its headquarters in Garhoud, Dubai, the United Arab Emirates (Floyd, Xu, Atkins, & Caldwell, 2013). The paper seeks to analyze an ethical quandary that has confronted or could face the company when it operates on an international level. It will explore the impact the company’s ideals have on moral policymaking (Goetsch & Davis, 2014). The paper will also look at how a leader should react when faced with such situations in the firm. The paper seeks to analyze the effect of ethical concerns in the local and global perspective in Emirates Airlines.
Ethical Dilemma in Emirates Airlines
According to Dinh et al. (2014), the Dubai-based company Emirates Airline soared into a predicament in 2009-2010. The business society criticized the business and investment climate of the country. Ethical practices in banks and other institutions were the main reasons that had led to the collapse of Dubai during that time (Voegtlin, Patzer, & Scherer, 2012). However, the ruler Sheikh Mohammed Bin Rashid Al Makhtoum worked hard to redeem the lost glory of the country in the global business (Phipps, 2012). Today, the nation boasts of being a financial, sporting, and tourist destination of the Gulf. The success of the company is attributed to the implementation of policies that encourage sustainability, CSR, and business ethics. However, it is still difficult to enforce business ethics due to the resistance to change by the leadership of numerous companies (Kuntz, Kuntz, Elenkov, & Nabirukhina, 2013).
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As Dinh et al. (2014) claim, the ethical dilemma is a situation that requires the organization to choose among alternatives, and this decision is evaluated as ethical or unethical. The corporate culture of Emirates Airlines affects business ethics both locally and globally. The issue revolves around the mistreatment of workers. Therefore, the practice affects the local employees and the workers sourced globally. According to Shapiro and Stefkovich (2016), the employees of this company are overworked and underpaid. They are told to resign in case one is unsatisfied with working for the corporation (Blome & Paulraj, 2013). There is no discussion when the management gives warning letters to the personnel. After firing an employee, Emirates Airlines stops paying for their medical insurances. The workers cease to enjoy the benefits regardless of the number of years the employees have served the company (Floyd et al., 2013). The leadership exhibits an autocratic way of dealing with the employees, thus creating fear and silent desperation among them. The mistreatment may lead to the employee’s turnover, which will affect the conduct of business and the quality of service. The enterprise leadership should ensure that it addresses the employees’ concerns before they escalate to this level (Voegtlin et al., 2012).
In the future, the organization may be confronted by the employee’s strikes if they do not solve their grievances on time (Fontrodona et al., 2013). The action can be used to exert pressure to the leadership of Emirates Airlines so that they could have a review of the policies that negatively affect the employees in the workplace. The effect of strikes on the company is harmful and it can affect its investment reputation globally. It can also result in the loss of revenue by the corporation. However, this should be the last resort when the employees seek justice (Voegtlin et al., 2012). The leadership of the company should quickly address the ethical dilemmas to avoid the disruption of the business activities and tarnishing of the company’s good name (Phipps, 2012).
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Assessing the Effect of Organizational Values on Moral Decision-Making
Organizational values are the set of ideals, beliefs, cultures, and norms, whether written or not written down, that guide the actions of Emirates Airlines (Goetsch & Davis, 2014). According to Blome and Paulraj (2013), the values guide the decision-making process and help solving issues that arise within the organization. The organizational values aid society to understand the principles and beliefs of the firm. They provide information on the conduct of business and its outlook on ethical issues (Voegtlin et al., 2012). Emirates Airlines’ organizational value is to have an unwavering leadership team that is also dynamic and ambitious and that has great decision-making ability (Phipps, 2012). Further, they believe in treating their stakeholders and employees well as well as caring for the environment and the community through Corporate Social Responsibility (CSR).
Organizational Leadership and Business Ethics
As Dr. Martin Luther King Jr. once said, “Cowardice asks the question ‘Is it safe?’ Expediency asks the question ‘Is it politic?’ Vanity asks the question ‘Is it popular?’ But, conscience asks the question, ‘Is it right?’ And there comes a time when one must take a position that is neither safe, nor politic, nor popular, but one must take it because one’s conscience tells one that it is right.” The management should do what is right in the conduct of business. Leadership is fundamental to the business ethics in Emirates Airlines. According to Phipps (2012), leadership can have a negative or positive impact on the culture of the organization. The top leadership should support a change in the culture to ensure there is efficiency in the service delivery (Voegtlin et al., 2012). For a leader of an organization like Emirates Airlines, it is essential to integrate and to keep real to the CSR values. Through the activities, there will be team bonding and effective change management that is vital to the success of the organization (Goetsch & Davis, 2014). In addition, the employees in the organization should be well compensated regarding salary and bonus according to the labor laws. Effective organizational values attract investors and talented employees who can invest their financial and human resources in the company to ensure success (Phipps, 2012). The strategic approach, when faced with ethical situations, equips the leader with the ability to avoid biases, job pressures, and problems (Kuntz et al., 2013).
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Ethically Persuading Followers
In should be noticed that the leader can be able to sway employees if he has developed ethnic maturity (Fontrodona et al., 2013). Thus, the words of the leader should reflect his actions. The manager should work towards gaining the trust of his workers so that he could be able to influence them ethically. The strategy should revolve around assessing one’s emotions and judgments, considering other people’s opinion, assessing the demand of the situation, defining the best action among alternatives, planning for the consequences, and evaluating the results (Blome & Paulraj, 2013). The managerial and subordinate effort is what will ensure operational change in the company. Failure to influence the workers to act ethically will have negative consequences for the operation of Emirates Airlines (Voegtlin et al., 2012).
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The leadership of Emirates Airlines follows a materialistic approach as opposed to an ethical approach when making critical decisions. That is why they poorly compensate and make their employees overwork to retain a big proportion of the profits from the company. The company should be aware of the fact that organizational values assist a business in gaining a competitive advantage in the global domain. Emirates Airlines can attract new markets and retain customers when the employees are satisfied by the benefits they derive from the company. A contented employee can offer excellent customer care services to the clients who are a significant aspect of this industry. The paper has addressed the ethical dilemmas in Emirates Airlines, the impact of organizational values on the ethical decision-making, corporate leadership, and business ethics. It has also discussed practical strategies that can be used by a leader to influence the followers. In conclusion, to avoid a downfall of the company, ethical decision-making is essential when faced with quagmires.