Please use the media to select a real-world business ethics dilemma
Alternatively, you are welcome to use the Jet Airways case, which can be found on the course website (under Assignments).
You should clearly state the ethics dilemma and the actors facing this dilemma. You should analyze the dilemma according to the relevant psychological issues (4 issues), explaining each psychological concept, and explaining why it is relevant.
You should also discuss your chosen dilemma from 3 philosophical perspectives: act utilitarianism, rule utilitarianism and Kant’s deontology, building upon the material covered in this course.
Jet Airways started by Naresh Goyal in May 1993, is one of the most renowned companies of India. The time when the private companies started to rise in the Indian Aviation industry Jet also made its entry to the business market. Previously private companies acted as “air taxis” and were allowed to fly in the domestic fields but after the huge privatisation and the change in government there was tremendous rise of private sector Aviation Companies in India. The case study focuses on the psychological issues faced in Aviation Industry by Jet airways and how they ultimately tamper the ethical dilemma of Business rule.
Brief Case study of the Psychological Issues
High Fuel Price
2008 has been a strong year for the Jet Airways as Air fuel Price hiked in a sky rising attitude which was more than 50 % of the previous year’s price. According to the statistics provided by Burlea & Idowu (2016) this price hiking was a tremendous challenge faced by the company as the Air Industry was unable to maintain costs of Air travelling. Jet experienced a loss of 33.2 million dollars which totally destabilised the company’s financial security. Domestic air travel dropped 22% in Sept. compared to the previous year. This one problem gave rise to 3 consecutive issues, capacity reduction, fare increase and reduction in travel spending leading to global economic shut down (thecasecente.org, 2009).
Loss in International Route
The hike in fuel prices led to many other challenges which Jet faced. The company started to face a great amount of loss in the international route. As per views of Alshammari, Almutairi & Thuwaini (2015), the rapid deteriorating global economic outlook was another cause for the loss international route losses. Just two routes San Francisco to Mumbai and Amritsar to London had been responsible for the company’s losses. Another important factor for the loss was the hiring of expatriate pilots. India already has a shortage of pilots especially on the wide body aircrafts flying for international purposes. There was a dissimilar salary for the international pilots and the Indian pilots. The international pilots earned roughly 10,700 US Dollars per month whereas the Indian Pilots earned about 7,700 per month (thecasecente.org, 2009).
Due to this sky rising price of fuel the company started to lose its labours as they were not capable of paying the employees successive amount of salary. As per the views of Burlea & Idowu (2016) this problem started in the industry as the company started to cut off its employees. Immense amount of flights attendants were hired and ultimately as the company were in stake Jet cut of hundreds of employees unable to pay them salary.
Alternatives of Jet Airways
Alternative companies of Jet Airways already took the business at this high problematic situation of Jet. Jet knew that they have to increase their economic condition and secure their financial situations. Crane & Matten (2016) opined that various companies started to emerge in the industry as the peak season of Diwali started. This Diwali time is crucial for the company to involve in business process. Due to the problem of competitiveness in the market other Aviation Companies started to boost themselves and Jet Airways was in complete trouble waters as it was far from secure condition and was trying to gradually develop and failed to compete in the then Aviation Industry.
Relevance of the Psychological Issue
Every company involved in business process is bound to obey the ethical norms placed by the government of the country. In this case Jet Airways also faced certain dilemmas in psychological perspectives. Depending upon the case analysis there are four issues which led to the loss of Jet Airways in 2008. Depending upon the discussions of Crane & Matten (2016) there was a huge psychological mistake in the strategy planning of the company. Analysing the four challenges faced by the company it can be stated that Jet did mistakes in psychological planning in 2008 which led to the loss of the company in both Ethical and practical grounds.
The fundamental and most important ethical issue is trustworthiness. Any company devoid of its segmentation of business has to generate and maintain trust with the company officials and its customers. Analysing the comments of Saha (2015) this case it can be stated that the company did not maintain trustworthiness with its domestic customers and tried to attract more international customers neglecting its domestic customers. Jet’s second mistake has been disrupting the decent atmosphere in the workplace where the potential employees have been sacked of by the company because of its wrong decision of hiring hundreds of flights attendants which indirectly impacts on the stabilized workplace atmosphere by disrupting it (thecasecente.org, 2009).
The third issue of the company was making faulty decisions in haste of recruiting more flight attendants, starting international flights and cutting of the employees in the Indian sectors whom the company appointed and many of whom were under training and suspiring for jobs in Jet. The last and the most important fault of the company was its low efficiency of governance and compliance. According to Schwartz (2017) Federal State Safety Regulations were not been complied and there was an anarchy in the sector at the time of high fuel prices as it caused a number of governance problems in the company. There was no strict governing body in the company to successfully solve the problems which Jet was facing at that time frame.
Philosophical Perspective of Dilemma Act
There was a philosophical problem which the industry faced after 2008 which hampered the brand name of the company. Due to the rapid fall of the company Jet Decided to start from the beginning as it faced many downs in both national and international market. The consequences of dilemmas faced by Jet Airways can be philosophically structured. Tangpong, Li & Hung (2016) opined that Jet after 2008 had to maintain a stable governing body to largely secure the company’s financial grounds. Jet after 2008 had to abide by the ethical norms of the governmental policies to make a sustainable business environment in the company which will provide the company a stable economic ground. Jet had to face huge consequences in business process for both hampering the ethical norms and breaking the trust of its customers and hired flight attendants who were cut off (thecasecente.org, 2009). Analysing these facts it can be stated that Jet had to face philosophical drawbacks in terms of business.
John Stuart Mill proposed the theory of Utilitarianism which is an ethical theory which calculates the right and wrongs based on the results. As per the views of Tangpong, Li & Hung (2016) is a somewhat similar to Consequentialism. This theory holds the ethical choice that one produces for the greater good of all in greatest number. It is also the most common theory to understand moral reasoning used in business.
This Rule utilitarianism theory describes the positivity or rightness of a particular act in various methods. It is determined by the value of consequences of abiding by particular rule. According to Wang & Calvano (2015) it is considered as the best rule for understanding the positive aspects of a particular rule. John Austin and John Stuart Mill who gave Utilitarianism theory proposed that it is the best rule of conduct found.
Immanuel Kant was the person to propose the theory of Deontology, which can be considered as the most notable theory which differs from the theory of Utilitarianism. As per the views of Trevino & Nelson (2016) this theory of Ethics is based on the conditions of humans possessing unique capacity for rationality. According to this theory the positive and the negative attributes of human actions does not depend on their consequences but on the fulfilment of the duties of human beings.
This case study points out about the philosophical perspectives of the dilemma pointing out the relevance of the Psychological issues, and conclude the study by Explaining John Stuart Mill’s Utilitarianism Theory and Immanuel Kant’s Deontology Theory to relate the dilemmas of the issues and understanding the ethical rules and Regulations of business Environment.
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