Business Ethics of Etihad Airways - Case Study Example

Business Ethics of Etihad Airways Name: Institute: Business Ethics of Etihad Airways Introduction Ethics can be defined as a code of morals or moral philosophy practiced by an individual or group of persons. Besides that, ethics can be described as the fundamental principles as well as basic concepts of well-mannered human behaviour, and it incorporates study of universal values like the fundamental egalitarianism of all people and compliance to the rule of land. Etihad Airways is the United Arab Emirates’ flag carrier airline, which was instituted in July 2003 by royal decree and is located in Abu Dhabi (Etihad, 2014). What’s more, Etihad started its undertakings in November 2003, and hitherto Etihad operates over 1,000 flights weekly to 96 destinations in the America, Middle East, Australia, Asia, Europe, and Europe. Besides passenger transportation, which is its core activity, Etihad as well operates Etihad Cargo as well as Etihad Holidays. Etihad Airways CSR The environment Etihad’s environmental program as well as strategy is enacted in tandem with industry customers, suppliers and partners. While concentrated mainly on measuring, handling and reducing the environmental effects of its operations, it is connected to wider sustainability objectives and entails initiatives that are proactive to generate cleaner technologies like biofuels; to support improvements within the environment across Etihad’s supply chain (Etihad-csr-report, 2014). Etihad has espoused a wide-ranging waste management program as well as initiatives to connect with its customers in encouraging environmental accomplishment. Sponsorship Etihad sponsors a lot of social activities across Asia, and its sponsorship covers sporting, cultural, community, and arts activities and which endorse and improve its profile and brand both locally and in main markets across the complex. Etihad as well participate in strategic national and regional sponsorships which permit for grassroots activities that involve the local community. Health and safety At Etihad, health and safety of the community lies at the heart of its business and it remains to be the core value inside and outside the company (Cornwell, 2014). In this regard, the statement of commitment, procedures and policy, supported by training as well as practice, shows Etihad’s commitment to health and safety (Etihad-csr-report, 2014). Company’s policy on ethics Etihad believe that responsible operation starts with a basis of thorough commitment to the main standards of business ethics as well as adherence to the letter as well as the will of the law in all the company does and in all countries wherein it does business (Etihad, 2013). In this regard, Etihad have espoused Standards of Business Conduct that is applicable to every member of staff, regardless of where they work across the globe. Such Standards as well apply to every contractor, consultant, agent and others when acting on behalf of the company. Etihad anticipate its suppliers and vendors to be led by these principles too. The company trains all staff through its Safety and Compliance Program Training and Business Ethics, and the training comprises lessons on business ethics as well as anticorruption (IAPP, 2013). At Etihad, there is a mutual comprehension that all and sundry have to take responsibility for their individual actions. Staffs are for that reason anticipated to report any suspected unethical or illegal activity without delay. The company has set up a number of confidential alternatives to report unethical or illegal activity, which includes anonymous channels. What’s more, the company takes every supervisor and manager accountable for the behavior of any worker reporting to them and so holds them answerable in case they are unable to take rational steps to avert and identify illegal or unethical activities (Etihad, 2014). Etihad Airways core values comprise integrity, adherence to law, and admiration for person unique traditions as well as communities’ cultures where the company operates. The company acknowledges the principles of international human rights as stated in the United Nations Universal Declaration of Human Rights and attempt to carry out business in a way that is in agreement with those principles. Agrees of Disagrees with Etihad airways policy on ethics In view of Etihad’s policy on ethics, I agree with policy since managers and workers while performing their duties and responsibilities have to adhere to pertinent rules and regulations as well as laws. However, I disagree with the mode of reporting a violation of any securities or other laws through anonymous channel, instead the organisation must introduce and incentive and reward program that will see individuals awarded for reporting any form of violation. This is for the reason that most cases of violations within the company perhaps go unreported because workers are not monetarily motivated (IAPP, 2013). Still, I agree will the company policy that managers and employees must make an effort to encourage ethical behavior as well as to hearten staff to report proof of unethical or illegal behavior to suitable Company personnel. Sadly, the policy does not offer protection to retaliation against any worker who volunteers to report about a potential infringement of this Code. I think Etihad must encourage such volunteers to report the suspected infringements of the Code of Ethics to the Chairman of the Audit Committee or Chairman of the Board, since a reported case at this level will undoubtedly be investigated. Reflection At Etihad Airways, the corporate social responsibility program supports charitable causes across the world. Individual as well as corporate philanthropy is a crucial element of Etihad’s CSR policy. The company enjoys a high level of respect in the midst of its various stakeholders in the United Arab Emirates as well as the communities wherein it operate. This comes with it a related responsibility as well as expectation of participation in such communities by means of charitable and philanthropic projects as well as activities that improve the economic and social health of the people (Berger, 2012). Etihad manage its philanthropic projects as well as community participation transparently and ethically to meet the criteria of its corporate governance and the stakeholders’ expectations. In comparison, The Emirates Airline Foundation offers charitable, philanthropic services and aid for needy children. The Foundation aspires to improve the life quality for children; irrespective of religious, political, or geographical boundaries, as well as to aid them improve and maintain their human dignity. The Foundation also aspires to assist wipe out poverty from the communities where the airline operates. Compliant with Etihad Airways’ concentration on supporting causes associated with child education as well as development in the community, Etihad tries to open up the aviation world to these unique children. Etihad works with local communities to assist improve the access to, education, healthcare, and protection for children and the community in general. Etihad Airways supports the global programme Educate a Child programme, which intends to considerably decrease the number of children globally deprived of their basic right to education. Etihad Airways promised its support to educate a child by signing the Memorandum of Understanding with the programme to convey quality education to those children out of school. The airways also engages itself in other community-based development such as donating blankets and mosquito nets to poor-stricken countries like Nepal, offer free mobile health services in Asian countries like India, and sponsor poor children in sporting activities (Berger, 2012). Emirates Airline on its part also takes part in community-based development activities like offering free food and medical services to countries hit by disaster, such as Haiti in 2010, and Japan in 2013. What’s more, Emirates through the Emirates Airline Foundation, takes part in development of hospitals, schools, and playgrounds. At Etihad, the company culture is shaped by its shared values that have been crafted through years of partnership with its customers as well as employees. Etihad spirit is the heart of Etihad airways, and it arises from the company’s prosperous heritage wherein aviation plays a very important part in the life of all locals. All through Etihad system, the Etihad spirit describes the inimitable temperament of Etihad airways. According to Etihad-csr-report (2014), the company high-spirited, active and adventurous individuality comes from this spirit, and this spirit also breeds belief in the company’s community involvement as well as service. From this spirit come the satisfaction, the infatuation and the determination that makes Etihad Airways more successful (Etihad, 2013). The company actions reflect its total dedication to honest as well as ethical behavior, and when experiencing uncertainty, the company at all times use its best judgment to perform the correct thing. I have observed that helping and caring about poor people is the essence of Etihad, and the company often goes an additional mile to assist its customers, environment, community and one another with openness, compassionate, and authentic concern. On the other hand with regard, to Emirates Airline they bring an advanced level of individual commitment, expertise and t skills to the work. The company takes huge pride in view of the fact that the company collective as well as individual achievements have earned expansive admiration in addition to a reputation for secure, quality, and reliable service. Besides that, Emirates prejudice toward action as well as its willingness to become accustomed to change and to master complicated setbacks demonstrate the "go-getting" heritage of Emirates Airline. The airline embraces an environment where firm work, plan and collaboration are a custom, and where innovation as well as creativity flourishes. References Berger, H. (2012, December 8). Etihad Airways sending blankets to Nepal. Retrieved from The National: http://www.thenational.ae/news/world/etihad-airways-sending-blankets-to-nepal Cornwell, A. (2014, January 19). Etihad Airways in partnership to develop local bio jet fuel industry. Retrieved from Gulf news: http://gulfnews.com/business/aviation/etihad-airways-in-partnership-to-develop-local-bio-jet-fuel-industry-1.1279358 Etihad. (2013). Our commitment to sustainability. Retrieved from Etihad.com: http://www.etihad.com/en-us/about-us/our-commitment-to-sustainability/ Etihad. (2014, June 13). About us. Retrieved from Etihad.com: http://www.etihad.com/en-ie/about-us/ Etihad-csr-report. (2014, February 9). Etihad CSR report 2012 . Retrieved from Slideshare: http://www.slideshare.net/yvancg/etihad-csr-report-2012 IAPP. (2013). Manager, Ethics & Compliance, Etihad Airways, Abu Dhabi, UAE. Retrieved from International Association of Privacy Professionals (IAPP): https://www.privacyassociation.org/resource_center/manager_ethics_compliance_etihad_airways Read More

Company’s policy on ethics Etihad believe that responsible operation starts with a basis of thorough commitment to the main standards of business ethics as well as adherence to the letter as well as the will of the law in all the company does and in all countries wherein it does business (Etihad, 2013). In this regard, Etihad have espoused Standards of Business Conduct that is applicable to every member of staff, regardless of where they work across the globe. Such Standards as well apply to every contractor, consultant, agent and others when acting on behalf of the company.

Etihad anticipate its suppliers and vendors to be led by these principles too. The company trains all staff through its Safety and Compliance Program Training and Business Ethics, and the training comprises lessons on business ethics as well as anticorruption (IAPP, 2013). At Etihad, there is a mutual comprehension that all and sundry have to take responsibility for their individual actions. Staffs are for that reason anticipated to report any suspected unethical or illegal activity without delay.

The company has set up a number of confidential alternatives to report unethical or illegal activity, which includes anonymous channels. What’s more, the company takes every supervisor and manager accountable for the behavior of any worker reporting to them and so holds them answerable in case they are unable to take rational steps to avert and identify illegal or unethical activities (Etihad, 2014). Etihad Airways core values comprise integrity, adherence to law, and admiration for person unique traditions as well as communities’ cultures where the company operates.

The company acknowledges the principles of international human rights as stated in the United Nations Universal Declaration of Human Rights and attempt to carry out business in a way that is in agreement with those principles. Agrees of Disagrees with Etihad airways policy on ethics In view of Etihad’s policy on ethics, I agree with policy since managers and workers while performing their duties and responsibilities have to adhere to pertinent rules and regulations as well as laws. However, I disagree with the mode of reporting a violation of any securities or other laws through anonymous channel, instead the organisation must introduce and incentive and reward program that will see individuals awarded for reporting any form of violation.

This is for the reason that most cases of violations within the company perhaps go unreported because workers are not monetarily motivated (IAPP, 2013). Still, I agree will the company policy that managers and employees must make an effort to encourage ethical behavior as well as to hearten staff to report proof of unethical or illegal behavior to suitable Company personnel. Sadly, the policy does not offer protection to retaliation against any worker who volunteers to report about a potential infringement of this Code.

I think Etihad must encourage such volunteers to report the suspected infringements of the Code of Ethics to the Chairman of the Audit Committee or Chairman of the Board, since a reported case at this level will undoubtedly be investigated. Reflection At Etihad Airways, the corporate social responsibility program supports charitable causes across the world. Individual as well as corporate philanthropy is a crucial element of Etihad’s CSR policy. The company enjoys a high level of respect in the midst of its various stakeholders in the United Arab Emirates as well as the communities wherein it operate.

This comes with it a related responsibility as well as expectation of participation in such communities by means of charitable and philanthropic projects as well as activities that improve the economic and social health of the people (Berger, 2012). Etihad manage its philanthropic projects as well as community participation transparently and ethically to meet the criteria of its corporate governance and the stakeholders’ expectations. In comparison, The Emirates Airline Foundation offers charitable, philanthropic services and aid for needy children.

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