Ethics and Policies

Ethics and Policies

Ethics definition

Ethics in managements is concerned with those parts of organisational, operational, occupational and professional conduct that relate to absolute standards and moral principals. More generally, it is concerned with human character and conduct, the distinction between right and wrong, and the absolute duties and obligation that exist in all situation.

It is more likely that consumer to use the organisation that they can trust and have confidence in it. This trust and confidence can be achieved in time by having and keeping satisfactory relationship. Moreover if there is a good relationship between staff based on integrity and honesty as well as keeps the promises that have been given, more demand for work to be expected. In practice dealing with trustable organisation is not possible in all set of circumstances.

Ethics include managerial and supervisory practice in terms of attitude to all stakeholders and constitutions, attitudes to finance and attitudes to those parts of the operational environment that they are able to dominate. There are additionally social and cultural pressures, norms and standards that have to be taken into an account.

It is a very difficult to draw relationship between ethics and profitability. The reason is that until people have not recognized the evidently bad or unethical practices of organisation which will lead to profit. On the other hand, when people notice unethical practices such as dishonesty as well as unlawfully, this lead to business lost.

Psychologists still debate that whether people by nature are ethical or not. Sociologists argued that two key reasons are the cause of unethical behaviour of organisations.

Firstly, organisations from time to time encourage behaviour that go against ethical standards. As an example some business executives do not mentioned anything about unethical behaviour that they have witnessed. The most obvious example is Shell Company. Shell agreed in September 2005 to pay Ј5m to settle lawsuits stemming from the disaster. The company director has been lawsuits from stakeholders after Shell admitted that it had overstated its oil and gas reserves by around 20%. Moreover this led to sacking of the group's top management. Under the settlement, Shell agreed to adopt undefined policies and standards in financial reporting and controls and corporate compliance and ethics.

Secondly, some managerial values undermine integrity. Most managers believe that good ethics is good business. On the other hand some managers do not consider ethics as a factor when they make a decision. If a manager of the company does not consider ethics, it will influence the company in general given to the influence of the manager to the company.

The ethical use of organisational development involvements requires that they be supervised by professionals in an organisation that places a high value of ethics. To extent that top management officials embrace ethical values and behave ethically themselves, norms for behaving ethically are likely to develop in organisation.

Ethical pressures on Airlines and Solutions

Lufthansa corporate and business area group is stable but not static. They thoughtfully anticipate changes in the business environment, in which they operate, and adapt their group to accommodate them. They operate in the market under the core Lufthansa brand and other brands. All those brands manifest their commitment to providing customers with a service noted for safety, reliability, punctuality, technical competence, quality, flexibility and innovation.

One of the ethical pressures on Lufthansa is the environment. Lufthansa has received a number of awards related to this matter. The main reason behind this success is investment in the research and development as well as the continuous renewal of their fleet. As a result Lufthansa reduce the fuel consumption per passenger kilometre by 27 percent since 1991.

Air pollution as well as noise pollution is another criterion that Lufthansa take into consideration. By ordering the most modern aircrafts available today, such as the Airbus A330-300, A340-600 and A380, Lufthansa has set their course to further reduce energy consumption, aircraft noise and harmful emissions over the years ahead. By investing billions of euros, Lufthansa moves closer to their goal, increasing their energy efficiency, by about another 20 percent over the next ten years.

The way that staffs deal with passengers is crucial. In order to train young executives and give them better international and practical emphasis, Lufthansa and the European business school in cooperation have developed a new "Aviation Management" course. The Bachelor of Science degree will be awarded at the end of six terms. All lectures and related studying to the course are in English. This course benefits staff directly which will lead to Borden their horizon. Certainly, with better understanding and knowledge of how to control the situations, costumer service and safety on board is guaranteed.

Comfort is another crucial factor towards customer satisfaction. There are seats in new business class that have the ability to convert to flat bed by pressuring a button. Lufthansa is the first airline in the world that has broadband internet on the aircraft. From this year at Frankfort terminal, exclusive service on the ground with personal service right through to departure and special shuttle services direct to the aircraft. The Best Practice Award 2006 from the Travel Industry Club has been rewarded to Lufthansa thanks to their logistics and service chain of its First-class terminal at Frankfurt airport

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Privacy is another ethical pressure on Lufthansa. Airlines tend to gather information about customers such as financial and travel data. Most of the airlines share the information with the host of business partner which is mostly United State of America. However Lufthansa never give information regarding to its customers away unless they agree to it.

Safety of the passengers is one of the main pressures on Lufthansa. This can be further divided into safety regarding aircraft and concerning about terrorists. As I mentioned above by adding new aircrafts alongside well trained staff, Lufthansa is trying to full fill its responsibility. In case of terrorist, Lufthansa is seeking to make use of more security at check in time as well as on board.

Lufthansa, Air Canada, SAS, Thai Airways und United Airlines create the Star Alliance, the world's first multilateral airline grouping, later to be joined