This assignment analyzes the business issues faced by Easy Jet, including discrimination, brand effectiveness, and environmental concerns. An action plan is proposed to address these issues, with a timeline for implementation. The document also includes references to relevant research studies and articles on similar topics.
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TABLE OF CONTENTS 1. INTRODUCTION.......................................................................................................................1 2. CORPORATE GOVERNANCE ISSUES...................................................................................1 3. THEORIES OF CORPORATE GOVERNANCE.......................................................................2 4. LITERATURE REVIEW............................................................................................................3 5. ISSUES ENCOUNTERED AND ADDRESSED.......................................................................3 6. DRAFT TIMELINE.....................................................................................................................4 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
1. INTRODUCTION Easy Jet is a company who is not for cheap flight tickets. The are operating in 30 countries and they and over 820 routes. This company is taken in the project because they have faced some serious issues relating to ethics. This enterprise was fined for discrimination and some other significant matter. They refuse to give seat to a 65 years old lady who was paralysed from one side, the reason behind not giving seat is that she was unaccompanied.(Garnett, Szabo and Dutson, 2011). 2. CORPORATE GOVERNANCE ISSUES Easy Jethas faced several ethical, CG (Corporative Governance), environmental and more issues which negatively impacted on company. Due to this, company's profitability and productivity level as well as market share has reduced. Thus, there are some corporate governance issues ofEasy Jetexplained which are as follows: Brand effectiveness and leadership This company have strict policy and they wanted to make a image that they do not make any compromise against the rules which they have made for their employees and customers also. Their rigidity is unethical. They have committed same mistake for more then one time. Once they denied a women to travel in the flight because she was on wheelchair and she did not have anyone who could take her to the emergency gate. These kind of rules sometime make a negative impact on the brand of the company. Ethical and Environmental issues Stock price of Easy Jet rapidly decreased by 40% because of their fines which they paid for unethical acts.This the prime reason that Easy Jet's market share went down by 20%.The fuel used in Airline are harmful for environment. It does not motivated thatEasy Jetcase bucks not that much harmful for the environmental of the country(Ring and et. al., 2011).Nitrous Oxide, diesel combustion and particulates very harmful for the society's persons. Hence, some analystsrecommendedtoEasyJetthatadditionallypollutionhasbeenledduetothis approximately up to 100 deaths had done in US. Audit independent 1
Easy Jet has to be pay penalty of 60000 euros because it was they were found culprit for the act of discrimination. The have committed same mistake for than one time and this is serious issue.(Fukui and et. al., 2011). 3. THEORIES OF CORPORATE GOVERNANCE There are mention some major theoretical concepts of corporate governance in a effective and efficient style such as follows: Agency theories:Basically, this theory helps to represent the differentiation between shareholders of businessfirm and principles.Thus, who employeeshired forthe managing the controlling activities and operations of the organisations that called “Agent”.This theory is based on goals of agents which is totally different from principles. Therefore, this aspect helps to provides appropriate financial rewards to the organisation so that they can enhance their profitability and productivity in an effective and efficient way. On the other hand, in this theory concludedmanagerial decision making procedure and accountable to the shareholders of the business firm(Haas, 2010). Stewardship theories:In context of this theory, managers of the business firm are stewards of company who can share theircommon goals. Thus, broad of directors of the enterpriseplayasupportiverolewithintheorganisationforemployeessothat respectively increased the empower of staff members as well as enhanced their working performance in a significant style. Apart from this, in which defining the relationship of board and executives. Hence there are concluded training, mentoring and decision making process. Stakeholder theories:This theory of corporate governance is based on company's stakeholders.Stakeholder is the group of persons who play an important role within organisation such as clients, customers, suppliers, competitors, shareholders and so more (A Hurried Man’s Guide to Volkswagen emission scandal,2015). All these contents are directly impacts on company due to this it can be get success or failure in competitive market place. In the other hand, managers or executives of the company have some special rights and powers. Thus, it is required to be aware about their stakeholders.So that they can get fair return from their stake of the business firm. As per this theory must be effectively follows Corporate Social Responsibilities even whenever if decrease the 2
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long term revenue of the organisation. However, this theory said broad of the business firm has major responsibility is that, they should be ensure about the interest of stakeholders as a guardian so that they can take principle of sustainability in the corporate practices for the environmental communities (Barrett and et. al., 2015). 4. LITERATURE REVIEW According toOldenkamp, (2016)Easy Jet is too rigid with their rules that they do not even care about the ethical issues. If a person is unaccompanied that this does not mean that he/she cannot travel. First they refused a 65 year old lady to travel because no one was her and then they committed same blunder by doing discrimination with other a 35 year old lady. They may have provided same better facility to the men but they did have same behaviour with a women. But one should also think about the norms that is made by the company. If they will not make rigid rules then they cannot run their business in an effective manner.However, it is necessary for every business firm have to be effectively followed ethics and norms of the company in a impressive manner. 5. ISSUES ENCOUNTERED AND ADDRESSED As per the above defined major ethical and corporate governance problems ofEasy Jet, someissues were effectively addressed bybroad of directors ofthe business firm. Whereas, major cause forEasy Jetis that it has to pay penalty of approximately 60000 euros to courtas well as have to be give appropriate justification to the government and court why it had used unethical actlike discrimination at the operating at such a high level process. This problem may will be addressed in approximately 10 years by the country. Due to this, there has been produced an action plan for theEasy Jetin a effective and efficient manner. 6. DRAFT TIMELINE ISSUESADDRESSED OR NOT ADDRESSED TIME LINE Brandeffectivenessand leadership Addressed by the court2 months Ethical issuesAddressed by the court4 months Environmental issuesAddressed by the court3 months 3
Auditive independent (Have to be pay 19 billion to court) Not addressedMore than 10 years CONCLUSION From the above mentioned action plan, it has been concluded thatEasy Jetdid discrimination by using the ''face'' of rigid rules. Thus, it has been faced several ethical, environmental, auditive independent and brand effectiveness issues. Due to this, share price of the company has been decreased as well as there are elaborated the impacts of scandal on business firm. In this last, has been produced an appropriate draft time for all issues ofEasy Jet with proper time line. 4
REFERENCES Books, Online and Journals Barrett, S. R. and et.al., 2015. Impact of the Volkswagen emissions control defeat device on US public health.Environmental Research Letters. 10(11). p.114005. Fukui, S. and et.al., 2011. Effect of Wellness Recovery Action Plan (WRAP) participation on psychiatric symptoms, sense of hope, and recovery.Psychiatric Rehabilitation Journal. 34(3). p.214. Garnett, S., Szabo, J. and Dutson, G., 2011.The action plan for Australian birds 2010. CSIRO PUBLISHING. Haas, D. A., 2010. Preparing dental office staff members for emergencies: developing a basic action plan.The Journal of the American Dental Association. 141.pp.S8-S13. Oldenkamp, R. and et.al., 2016. Valuing the human health damage caused by the fraud of Volkswagen.Environmental Pollution. 212.pp.121-127. Ring, N. and et.al., 2011. Understanding what helps or hinders asthma action plan use: a systematic review and synthesis of the qualitative literature.Patient education and counseling. 85(2). pp.e131-e143. Online A Hurried Man’s Guide to Volkswagen emission scandal.2015. [Online]. Available through: <http://blog.themancompany.com/a-hurried-mans-guide-to-volkswagen-emission- scandal/>. [Accessed on 31stOctober, 2017]. 5