Question
United Airlines flight on April 9th, 2017. This incident is an ethical, business, and professional failure on various levels by United Airlines. The organization's culture
United Airlines flight on April 9th, 2017. This incident is an ethical, business, and professional failure on various levels by United Airlines. The organization's culture failed to function in a way that is consistent with what the airline states are its values and responsibility to its stakeholders. The epic failure brings to light many questions surrounding culture - beliefs, norms, problem-solving tactics. The incident evokeda far-reaching outcry from people all over the world, with many people pledgingto boycott United Airlinesfor their future travel plans. Immediately following the incident, theUnited Airlines stock price plummeted, causing the company to lose $1.4 Billion in a matter of days.
References:
https://money.cnn.com/2017/04/11/news/united-passenger-pr-disaster/
https://www.cnn.com/2017/04/11/travel/questions-united-trnd/
Questions for Discussion:
- Even with theflight overbooked and passengersrefusing to give up their seats, whatdo believe United Airlines should have done instead of forcefully removing the passenger from the airline?
- What do you think about the legality of airlines being allowed to oversell flights every single day (a widely employed practice across the industry)? In other words, do you believe airlines should be allowed to sell more seats for flights than are actually available? Why or why not?
- What do you believe the passenger from the video who was physically injured and forcefully removed from the plane should do in response to this incident?
- If ever in a situation like this, as a passenger, what would you do in response to being told you must de-board the plane due to the flight being oversold?
- As consumers, responding to this horrific incident by boycotting United makes sense and perhaps feels like the right thing to do. However,the airlinehas more than 82,000 employees, all but a few who did nothing wrong, butmany of whomwill be adversely affected and could soon lose their jobs as the company's value continues to plummet (stock down $1.4 Billion since the incident). Imagine you're running United Airlines, how do you address this terrible incident while also trying to salvage the value of your company and the jobs of many thousands of workers who could be negatively affected as a result of a few poorly behaved people? Explain in detail.
References:
Short letter from the United Airlines CEO, which is included in the United Airlines Code of Ethics booklet that every employee receives when he/sheis hired with the company:
Dear Fellow Employees,
At United, our Ethics and Compliance commitment means conducting our business ethically, honestly and legally, each and every day. Our Code of Ethics and Business Conduct applies to everyone at United and helps all of us make the right decisions to do our jobs with integrity. Please join me in doing your part by taking a moment to review our Code of Ethics and Business Conduct.
Remember that if you have a concern, there are a number of resources such as your manager, division leadership, Human Resources partners and the Ethics and Compliance Helpline available to you to ask questions or report concerns and possible violations. Any question or report will be treated seriously and confidentially. It is also important to remember that at United we do not permit retaliation.
By working as a team to conduct United's business with integrity, we are ensuring our airline operates lawfully and ethically.
Thank you for doing your part.
Oscar Munoz President and Chief Executive Officer
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