Qantas: CSR, Ethics, and Leadership in Management Report

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This report provides an in-depth analysis of Qantas' corporate social responsibility (CSR) initiatives and managerial ethics. It examines Qantas' CSR activities, particularly its efforts to reduce carbon emissions, and its commitment to maintaining ethical business practices, including safety and employee well-being. The report also addresses criticisms of Qantas' CSR performance, specifically concerning carbon emissions per passenger and its failure to meet emission reduction promises. Furthermore, it includes a PESTEL analysis, evaluating the political, economic, social, technological, environmental, and legal factors affecting Qantas, as well as a SWOT analysis, assessing its strengths, weaknesses, opportunities, and threats. The report also discusses the leadership style of Qantas' CEO and how it has influenced the management of teams and contributed to the company's success. The report concludes with a critical evaluation of Qantas' sustainability efforts and the impact of its business practices on stakeholders and the environment.
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Running Head: INTRODUCTION TO MANAGMENT
Qantas
Introduction to management
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INTRODUCTION TO MANAGMENT 1
Executive summary
This report focuses on the CSR activities of Qantas along with managerial ethics followed by the
company. In addition to this, report is also focusing on the negative aspects of their CSR activity.
It is also including PESTEL and SWOT analysis related to the Qantas Company. In addition to
this, it is also covering how CEO of Qantas Company has transformed the business operation of
the company.
Introduction
Qantas Company is considered as one of the biggest airline company in the world and is very
successful to expand its business on the global level. This company was established in
Queensland in Australia in 1920. The main business of this company is airline services and is
known for its quality service. The main focus of this company is on the safety of the customer
which is using this service (Qantas, 2019). In addition to this, Qantas Company is known for its
CSR policies which they have connected with the people wellbeing along with community
wellbeing. CSR or corporate social responsibility is considered as one of the most important
aspects of this business environment. It is also considered as the responsibility of the company
towards the community in which they are operating. Qantas Company is known for adopting
continuous improvement in its business operation (Qantas, 2019). CSR activities are also
considered as one of the most important sustainability strategy adopted by the organization in
present business world in order to survive in this dynamic business environment. Present
communities are very serious related to environment protection as well ethics which connects
them with the business world (De Jong and van der Meer, 2017). In this situation, if the
organization is not able to maintain these two important aspects of their business operation, then
it will become very difficult for them to survive.
Task 1
Managerial ethics is considered as one of the most important social approachability of an
organization. It is also considered as rules and regulation which is being followed in the
organization to create a difference line between good and bad. It basically decides the moral
conduct of the business operation in the organization. It is also considered as behaviour which is
being introduced in the organization in order to maintain ethical work practice in the
organization (McMahon, 2015). While corporate social responsibility is considered as the
approach which helps in connecting the organization with the community in which they are
operating. In addition to this CSR is also considered as a strategy which offers the organization a
unique platform to establish their brand image in the minds of the community. Currently one of
the best CSR activity followed by Qantas Company is reducing their carbon footprint emission.
Qantas believe that they are working in such a business line in which the possibility of carbon
emission increase every year due to their business activities which impact the environment and
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INTRODUCTION TO MANAGMENT 2
its surrounding. Because of this issue the company was targeted by much social organization
which has created a negative image of the company. In this situation, management of the
company decides to reduce their carbon emission in their all business stream with the help of
advanced technology. In addition to this, they are continuous research for some other fuel option
which will help them to reduce carbon emission. Company is also focused on using renewable
resource as a source of power instead of fuel with the help of solar energy and wind energy.
Qantas Company is truly dedicated toward following managerial ethics in their all business
operations. According to their top executives of Qantas, company is truly dedicated to the safety
of the person who is availing their service. In addition to this, this company is responsible for
maintaining rule and regulation in the organization in which individuals are treated with respect
(Qantas, 2019). It also includes the policy which is encouraging for maintaining honesty and
integrity in their all business operation. In any situation, company will not manipulate their
financial capital in order to maintain its brand image in the market. Company is responsible for
upkeeping a positive work environment in the organization in order to take care of their
employee health and work safety (Prezi, 2019). In addition to this company is truly committed to
maintaining the environmental sustainability in their all business operation in order to maintain
ethical discipline in their business operations.
Task 2
Although Qantas Company has mentioned that they are working towards reducing C02 emission
in the surrounding environment but still no progress has been seen up till now. According to
Mikey Slezak, 2018, it has been found that Qantas Company is emitting more carbon dioxide in
the surrounding environment per passenger across Pacific which is clearly mentioned in the
international council on clean transportation group. In addition to this, it has been found that
Qantas is not maintaining its promise of using effective fuel consumption. In fact, its carbon
emission percentage has gone up and it has become one of the most pollute airlines in the whole
Pacific (The conversation, 2019). It has been found that Hainan and ANA airline was able to take
passenger to a distance of 36 Km on one-liter fuel as compared to Qantas airline which is able to
take passenger up to 22 Km.
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INTRODUCTION TO MANAGMENT 3
(Source: Gaurdan, 2018)
All the promises that were made by Qantas of reducing carbon dioxide in their airline seem to be
shaded because no change has been seen in their airline business strategy. According to Guardian
magazine, it has been found that Qantas is not maintaining any efforts towards this issue and has
just mentioned in their sustainability report just to misguide the public (Creedy, 2017). This was
done to minimize the impact of their business activity on the brand image of the organization in
the community in which they are operating their business. It was a plan to keep media
entertained in favour of their company because media is considered one of the most important
medium of spreading information.
Task 3
PESTEL
Political
Political factor plays a very important role in the progress of any transportation business.
Political factor has the capability of impacting the profitability of their business operation. At
present political environment of Australia is in a stable position and is in full support of such
type of business. But at the same time, it has been seen that Australia transportation business is
suffering from corruption issue which can impact the growth of the company (Alshubaily, 2017).
In addition, Australian government has the power to interfere in the business operation of the
company with the help of their legal framework policies. In addition to this, it also offers
intellectual property safety to the business operation of the company.
Economical
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INTRODUCTION TO MANAGMENT 4
At present economic position of Australia is stable which is offering financial support to the
business operation of Qantas Company. In addition to this, Qantas business operation is also
supported by the stable currency rate of the company. Transportation business segment is fully
supported by the high-quality infrastructure of the country which is good news for Qantas
Company.
Social
Social power structure of Australia is not in support of these transportation businesses because
they believe that the transportation businesses are the main factors which are impacting the
environment which is not good news for Qantas Company (Romano et al., 2018). Cultural aspect
of Australia is in favour of Qantas business because it is linking it with employment.
Technology
Australia is considered as one of the most important technology hubs on the global level.
Therefore in this situation, Qantas Company will take help of technology advancement to reduce
competition in their industry (Argemi et al., 2018). In addition, Qantas can use innovative
technology in their product offering in order to create a unique image in the minds of the
potential customer. But there are changes that technology can impact the supply chain structure
of the Qantas Company due to fluctuation in their operating price.
Environment
As business world is moving toward green operation and therefore it will be difficult for Qantas
Company to maintain their positive image in the market due to carbon emission issues in their
business operation. Laws related to environment protection are getting stronger day by day
which is not good news for Qantas. Therefore they have to introduce a new strategy in their
business operation to control their carbon emission percentage.
Legal
Laws related to airline serve are getting very strict in order to minimize their pollution content in
the environment. In this situation, one of the biggest challenges for Qantas airline will be using
their fuel efficiency in order to reduce their carbon emission rate. In addition to this, laws of
many countries are not supporting their business due to environment protection which is creating
restrict in their business expansion strategy.
SWOT
Strength
At present Qantas airline is able to maintain a high level of dominance in the Australian market.
In addition to this, company is very successful in expanding their business on the global level
with the help of their strategic partnership. Company is able to attain a stable income platform
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INTRODUCTION TO MANAGMENT 5
which supports their overall business development (Bull et al., 2016). At present Qantas
company is using dual-brand strategy in order to impress their potential customers with the help
of marketing segmentation. With the help of a strong marketing strategy, company is able to
create a strong public relation.
Weakness
This company is struggling in fulfilling the exact demand of the potential customers which has
impacted their business. In addition to this, due to heavy competition company has to lower
down operational cost which results in the layoff of employees and has created tension in the
workplace environment (Phadermrod et al., 2019). Company is being criticized for increasing
carbon footprint in the environment which is impacted the health and safety of common person
living in that area.
Opportunity
Present world is of digital marketing and therefore it is one of the best opportunities for Qantas
Company to promote their business operation with the help of all digital marketing tools,
especially social media such as Facebook, Instagram and so on. In addition to this, the company
has a better opportunity to make use of data science in its business operation. Data science will
help the company in bring effectiveness and efficiency in their business operation which will
help them in improving their performance on the global platform.
Threats
One of the major threats associated with Qantas Company is volatile nature of fuel cost. Another
major threat for this company is fluctuation within the exchange rate of foreign countries. In
addition to this company is continuously facing issues related to business expansion because
many countries do not promote free trade policy and it will be costly for them if they enter the
agreement. Another major threat to Qantas is increasing competition from another Asian airline
which offers high-quality service with the help of advanced technology.
Specific environment
Customer – At present customers are satisfied with the service of Qantas company but have
issues related to the pricing policy of their service because customers believe that price of their
service is higher as compared to their available Asian competitors.
Partner- Overall partners of Qantas are satisfied related to income generation but are not
satisfied related to the brand image of the company in the market because company is blamed for
releasing high carbon emission in the environment (Stein et al., 2017).
Union- CEO of Qantas has done a marvelous job in bringing union on the negotiation table and
has settled all the union issues related to the Qantas Company.
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INTRODUCTION TO MANAGMENT 6
Industry – Airline industry is showing tremendous growth in recent years and has a great
capability of expanding this business. Therefore, it is offering business environment support for
Qantas to expand their business (Pjevac et al., 2017). In addition to this, industry is also
motivating an existing company to introduce advanced technology in their business operations in
terms of data science.
Competitors- Asian Company are offering a great amount of competition in this industry in the
form of advanced technology as well as financial capital which form the backbone of every
business operation. This has a created challenging situation for Qantas to remain sustainable on
the global level.
Suppliers- Qantas supplier is having medium level bargaining power because number of
suppliers available in the market is good and offer chances to Qantas to switch their supplier on
the base of price.
Internal environment
Process – Qantas is committed to offering high-quality service to the customer along with their
safety. In addition, company is highly using technology in their business operation in order to
offer high accuracy to their operations on the global level.
System – Qantas is able to maintain a high positive work environment in the organization to
support innovation and creativity in their business. In addition to this, CEO of Qantas was able to
manage a positive relationships between management and employees by offering them
opportunities to practice their ideas with the help of management within the organization.
Employee- Qantas is able to associate brilliant mind people in their organization which
understand importance of customer satisfaction and are offering every effort to support this core
value of the organization with their high-end skills and knowledge.
Management- Management of Qantas is very proactive in handling any issues related to
business operations. Recently there was dispute going in the company between workers and
management but Alan Joyce has excellently managed this issue by gaining the trust of the
workers and offered a stable position to the business operations.
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INTRODUCTION TO MANAGMENT 7
Resource base model analysis
Task 4
Alan Joyce is considered as one of the most successful CEO in the history of Qantas Company.
During his stay in the organization, Qantas has gone through various transformations it has seen
in Qantas history which helped the company in expanding its business on the global level,
especially in Asia. Alan Joyce has spent almost 15 years in the organization on various key
positions in Qantas organization which help him to understand the current need of the
organization from a business point of view (O’Neill, 2016). Alan Joyce belongs to
transformation leader category of leadership style because when company was struggling in 2005
related to their business operation, it was Alan Joyce who has motivated and encouraged the
employee of Qantas that they have the capability to achieve anything in their life. Alan Joyce
motivates its employee by showing confidence in their work and offering them freedom to
practice their own ideas within the organization premises. In addition to this, he first identified
the need for the change and then planed the change according to the need of the Qantas
Company (Fernando, 2018). Core values which are being developed by Alan Joyce in the
Resource
Tangible
Airline, offices,
transport
vehicles
Intangible
Goodwill of
Qantas
Capability
Offer excellent
airline service,
ability to reach
destination on
given time
Offer service
like air freight
and transport
passenger
Core
competency
Diversity service
Safety
reputation
Use innovative
technology to
offer Safety
service
Discovering
core
competency
Competitive
advantage
Multi brand
structure and
effective
marketing
Strategic
competitiven
ess
CSR activities
Strategic
partnership
with other
brands
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INTRODUCTION TO MANAGMENT 8
company were offering high-quality service in the airline industry along with customer safety
first. Another core value was to offer high operational reliability in its business operations.
Conclusion
Due to heavy competition in the airline industry, it is not easy for Qantas to remain sustainable in
the business for a long time. In order to remain sustainable in the business environment,
company must focus on a new strategy by introducing innovative technology in their business
operation which will offer them both cost benefit as well as efficiency.
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INTRODUCTION TO MANAGMENT 9
References
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INTRODUCTION TO MANAGMENT 10
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