Easy Jet Scandal Analysis and Action Plan

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.

Action Plan

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 Jet has 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 of Easy Jet explained 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 that Easy Jet case 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
analysts recommended to Easy Jet that additionally pollution has been led due to this
approximately up to 100 deaths had done in US.
Audit independent
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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 business firm and principles. Thus, who employees hired for the
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 concluded managerial 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 their common goals. Thus, broad of directors of the
enterprise play a supportive role within the organisation for employees so that
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
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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 to Oldenkamp, (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 of Easy Jet,
some issues were effectively addressed by broad of directors of the business firm. Whereas,
major cause for Easy Jet is that it has to pay penalty of approximately 60000 euros to court as
well as have to be give appropriate justification to the government and court why it had used
unethical act like 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 the Easy Jet in a effective and efficient manner.
6. DRAFT TIMELINE
ISSUES ADDRESSED OR NOT
ADDRESSED
TIME LINE
Brand effectiveness and
leadership
Addressed by the court 2 months
Ethical issues Addressed by the court 4 months
Environmental issues Addressed by the court 3 months
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Auditive independent (Have
to be pay 19 billion to court)
Not addressed More than 10 years
CONCLUSION
From the above mentioned action plan, it has been concluded that Easy Jet did
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 of Easy Jet
with proper time line.
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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 31st October, 2017].
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