Executive Summary

The most appreciated CSR work Qantas is conducting is raising global funds to help out

the needy people and enforcing anti bribe law is one of their managerial ethics practices. The

organisation is facing a few threats but the CEO is coming up with unique strategies to overcome

all the obstacles.

Introduction

Qantas is a pioneer of Australian aviation industry for over a century. The organisational

analysis helps understanding the corporate social responsibility (CSR) and managerial ethics of

the organization. It’ll also help to understand both the internal and external environment of

Qantas. CSR activities and managerial ethics always bear a great deal of importance for any

organization (Prowle & Lucas 2016). As it determine the business is taking interest in broader

social issues. It’s not just about impacting on profit margins. CSR shows how much an

organization is devoted to improve a society. On the other hand managerial ethics is also very

important for every organization, because it’s about following their leader. Managerial ethics is

also essential to reduce morale and pride of the employees. That’s why understanding CSR and

managerial ethics is very crucial for any organization. There are a few underlying factors that

drive both positive and negative changes in an organization. Internal and external environment is

one of them. As it refers to the systems, factors, people and conditions inside an organisation.

Understanding organisational leadership style of a company is very important as it is an essential

function of management which helps to achieve organisational goals at the same time boosts the

efficiency of employees.

Practiced Social Responsibility

Qantas airways is the largest airline in Australia not only by fleet size but also in international

flights and international destinations. It is also known by its nick name- ‘The Flying Kangaroo’.

Social responsibility normally refers to the idea through which an organization contributes and

tries its best for the advancement of the society and the environment (Taylor & Francis, 2019). It

is considered as a voluntary procedure. And not all the organization takes effective steps

regarding this. Qantas Airways is Australia’s largest airline and one of the world’s oldest

Airlines. One of the most noticeable social responsibilities of Qantas Airways is the group has

worked together with various communities by engaging in donations and also they manage

global funds to fight diseases. No doubt this is one of the most appreciated humanitarian works

for those who are badly in need of medication, treatment and support to fight off the diseases that

are leading them to a disaster. And the impact of this noble work is enormous. Raising funds and

donations play a vital role for their acceptance in mass population. Not only it’s an advancement

of the society but also it helps out large number of needy people who are suffering for long term

diseases and cancers.

Practiced Managerial Ethics

Managerial ethics refers to the principle and rules that tends to decide by upper

management. The management explains the rights and the wrongs in an organization. When any

kind of conflict or unexpected situation comes up it is managerial ethics that make it easier to

make right decisions. One of the most effective and appreciated managerial ethics that is

practiced by Qantas Airways is their Anti-bribery law compliance policy. (Qantas, n.d. ) Which

is applicable to all the officers, agents, consultants, directors, representatives and employees of

Qantas Airways. It’s such a policy that prohibits offering, giving, promising, agreeing, receiving

or accepting bribes. It’s really useful that can help protect an organization. By conducting this
managerial ethics, Qantas Airways proves their stakeholders that they are trustworthy and

nothing unethical can ever be found within the organization. It also provides transparency among

the employees which is very effective for building a positive image of Qantas Airways. It further

proves that the entire workforce in Qantas Airways is educated and they are aware of everything

about bribery and all the code of conducts regarding this. Enforcing this managerial ethics

creates a culture of integrity. Which ensures that all the employees are entitled with the skills and

necessary knowledge to maintain integrity within the organization.

Criticism of one Social Responsibility

Qantas reportedly gave their consent to transport refugees back to their homelands on

behalf of the Government of Australia (Price, 2019). And this activity of Qantas were hugely

criticised all over the world. They were avoiding contribution to human rights. Some

humanitarian organizations and activists stood together and conveyed their message to Qantas

Airways. They said if Qantas do not want to be a part of the human right abuses, they need to

stand with them. And they also need to withdraw the deportations. For a long period of time it

was seen that a huge number of people are being returned to their homelands. Which was surely

a violation of international human rights. A few months ago a Tamil asylum seeker who was

living in Australia for nearly six years, was removed forcibly and it was in the middle of the

night. He did not get any protection either. Some of the organisations described the asylum

seeker policy as toxic and Australia and no other organisations could do anything regarding this

issue. While some said proper steps should be taken to stand up for these vulnerable people. And

Qantas were requested to reflect their opinion which is to protect the needy.

Criticism of one Managerial Ethics

 Customer service is considered one of the most important managerial ethics and the act to

take care of the customer’s needs by delivering and providing helpful, professional

(Eprints.usq.edu.au, 2019). High quality service to meet the customer’s requirement. There are

many characteristics of an effective and appreciated customer care. It means use of the skill of

the professional. Professionalism is something that shows the customer they’re cared for. Next,

politeness plays another important role in effective and good customer care service. And the

customer service of Qantas got even worse when top management failed to redeem its previous

glory with solutions. The stakeholder got panicked and resulted a huge drop in its revenue.

Which, consequently decreased the evaluation and the top management decided to make  5000

full time employee the scapegoat to cut loose these shrined revenue scale. The major point of

such disaster echoes the failure of management. Which in turn gave birth to high operating cost,

poor customer care and staffing and the deliberate pressure from other Australian airways. The

decision took was not foreshadowed, neither this was even considered as being a wrong move.

The introduction of new fleet by the CEO resulted devastatingly increasing pressure in the fate of

Qantas.

General Environment of Qantas

Qantas Airways being the largest aviation industry in Australia. And there are mainly six

factors that contribute to the General Environment.

Political Factor

It plays a vital role to determine the underlying factors that can impact the long term

advantageousness of Qantas in the market. They can look closely to analyze the following factor

right before investing in a specific market.

  Level of corruption in Transportation sector.

 Risk of the invasion of military.

 Wage legislation.

Economic Factor

Following are the factors that should be considered conducting PESTEL analysis

 Unemployment rate.

 Interest rate.

 Inflation rate.

Social Factor

 Demographics and the level of skills of the population.

 Leisure interest.

 Environmental consciousness.

Technological Factor

 Impact of technology on product offering.

 Technological diffusion rate.

 Recent development in technology by Qantas.

Environmental Factor

 Weather.

 Attitude towards ecological products.

  Recycling.

Legal Factors

 Laws of discrimination.

 Health and safely law

 Consumer protection and e-commerce.

Specific Environment of Qantas

Customers

 Qantas’s airline model is mainly divided into several sections. These includes: first class,

business class and economy class.

 So basically three types of customers are being targeted by Qantas.

 The price of those respected sections varies. And only a few percentages of passengers

are their first class customer. But they are the major ones that yield a huge profit for the

company.

Partners

 Qantas has reportedly working with several affiliations more than 50 entities in the airline

industry. They happen to cover around 1200 destinations in the world.

 The alliances include American Airlines, Cathay Pacific, Mexicana, and British Airways.

 Qantas has also started working with Jestar; their international and domestic partner.

 Dragonair, Jet airways and Aer Lingus are their international partners.

Competitor
  Virgin Airline is considered the biggest competitor of Qantas Airways.

 Besides Virgin Airline, there are a few other competitors including: Singapore Airlines,

Emirates, Air New Zealand, Lufthansa and Etihad Airways.

Internal Environment of Qantas

Process and System

 Qantas has relatively a few in-build process and systems. These includes: engineering for

quality support. Different kinds of line and maintenance systems.

 There are also various types of innovative systems regarding load control. These are

essential to run all the internal operations more swiftly and smoothly without any hiccup.

Management

 More focused on cost reduction than growing rapidly.

 Concerned about best customer service.

 Ensures quality service under any circumstances.

Employees

 Qantas is the largest aviation industry in Australia has an enormous numbers of

employees more than 26000. There were many reviews and analysis that were conducted

upon the employees of Qantas Airways. And after proper investigation, it was obvious

that most of the employees are loyal to their company and they have spoken highly about

the organisation they work for.

 Qantas had some minor issues with employees few years back. But the issues were

resolved peacefully without any complication.

SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The SWOT Analysis gives

an overview of what is happening and what is the future of an organisation . The SWOT analysis

shows an overview and things to do to improve facilities to make the organisation successful in

the long run. Here the SWOT Analysis of Qantas Airways is explained.

Strengths

 Strong and effective dominance in the market o Australia.

 Growing globally through various types of partnerships (SAGE Journals, 2019).

 Strong support for growth and stable earning platform.

 Public relation and marketing strategies are relatively strong.

 Excellent management system.

 Great and high quality customer service is ensured.

 Well trained employees and satisfactory customer service.

Weaknesses

 Reduction in non core assets.

 Lack of creativity with international brands.

 Old fleet of crafts.

 Lack of enough motivation and encouragement for employees.

Opportunities

 Huge opportunity in digital marketing and loyalty program.

  Operational expertise and customer experience by leveraging big data analytics.

 Excellent technological innovation.

 New possible markets are opening for Qantas due to suitable government agreements.

Qantas have to maintain a good relation between the Government of Australia.

Threats

 Disbelief in fuel and foreign exchange is a major concern.

 Business expansion is likely to be crippled by regulatory issues.

 Competition from Asian rivals is increasing alarmingly which needs to concerned.

 Rise of new entrants which provides comparatively low cost services.

 Losing suppliers because of financial condition might be a threat and proper backup plan

must be included by any means.

Alan Joyce : The CEO

Alan Joyce; the CEO of Qantas Airways is an Irishman from Dublin. He joined Qantas in

early 2000. And after 8 years of hard work, network and schedule planning, in 2008 he became

the CEO of Qantas (Statebeachclassic.com, 2019). He is one of the most influential leader in the

business world.

Alan Joyce: Motivation to employees

Alan Joyce always finds it effective to inspire and motivate his employees. He tells his

employees to be creative. He always motivates them by encouraging to come up with new ideas,

new things, and exploring new opportunities. The passion and motivation Joyce has, he always

tries to make his employees feel exactly the same.

Alan Joyce being Competent

After being the CEO of Qantas Airways back in 2008, Alan Joyce introduced different

competencies for the organization (Qantas News Room, 2014). His vision was to take the

company to the highest level of Australian aviation industry. He made sure to solve any kind of

obstacles together. Being honest and genuine dealing with clients and stakeholders. He tells his

employees to be innovative, to think outside the box, to come up with something new and

unique. Then and only then something revolutionary will happen.

Strategy Implementation by Alan Joyce

Alan Joyce prefers to focus on strategies that are associated with the steady growth of the

organisation. Here all the actions are turned into project management plans and several project

managers deal with these as different projects. Finally each and every action is implemented as

an individual project. This is the most effective way of turning strategies into actionable moves

for implementation. And this is ensured by Alan Joyce (Gordon, 2018).

Conclusion

Qantas is doing great in the emerging markets. But they should be more careful avoiding

the threats they have and overcome the weaknesses. Qantas is hugely appreciated as they

practice lots of CSR and managerial ethics. The CEO is doing his job relentlessly with lots of

positivity and innovative strategies.

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