Complement and conflict of corporate social responsibilities
Application of corporate social responsibility in Airbnb will generate benefits and also attract conflicts on profit maximization goal in several ways. Firstly, application of educational and operational measures in efforts to limit product choice based on race and color will maximize profits. Potentially, this will increase demand for Airbnb accommodation services by black clients. Additionally, holding specific meetings to sort out reported cases on racial profiling will improve client satisfaction and cut the possibility of lawsuits prompted by reporting clients. Besides, installation of in-house data analytics applications will be essential in capturing cases on racial profiling. Consequently, the attractiveness of company's accommodation services will go up because of positive criticism and low customer’s complaints. Similarly, the introduction of specific features that limit the use of overly positive or negative feedback or reviews for specific properties and locales will shift management’s attention to other profit-maximizing ventures in the company.
Additionally, the decision by Airbnb to outsource background checks on unit owners and renters to tackle issues of tackle issues of discrimination in the case of business partners will improve the profitability of partnership formed since partners will be selected regarding mutual benefits and not based on race. Eventually, increase in revenue from additional clients will improve shareholders’ return on investments. Moreover, resisting social profiling will win potential clients due to a high standard of ethics.
However, the discussed company’s social responsibility policy incurs several conflicts regarding profit maximization goal. For instance, purchase and installation of in-house data analytics applications will incur heavy purchase costs. Additionally, these applications will require maintenance, manpower and will incur energy costs; therefore, it will reduce shareholders’ profit due to additional expenses. Again, outsourcing background check is a potential threat to discrimination as it could be applied systematically in selecting business partners oriented to certain race; this would reduce profit since partners will not be selected based on projected benefits. Besides, holding the meeting to solve reported race profiling cases will consume time that could be used in a marketing plan to increase clients.
Impacts of ethical dilemma
Apart from affecting shareholders’ profitability, the ethical issue in Airbnb has ripple impacts to other stakeholders such as employees, clients, and outside parties. Notably, each of stakeholders has a different concern regarding ethical issue in Airbnb due to the interdependence of company's services. For instance, clients of black decent are interested in fair charges and equal treatment. As such, their main concern is harmonization of rental prices and penalties between white and black hosts. Additionally, black hosts are concerned about prevailing negatively stereotyped perceptions on black race that portray white hosts are more preferred clients while black is subjected to higher penalties.
Secondly, employees are concerned about trust issues in establishing client loyalty among online users who purchase online accommodation services. Particularly, generalized stereotyped perceptions about specific hosts, renters, housing units and/locations and ultimately management of online profiles is under threat of trust collapse. Besides, holding meetings to deal with race profiling cases could be seen as a nuisance by employees since it is time-consuming and creates an unnecessary diversion from main activities such as profiting maximizing. As such, employees are worried that improper handling of ethical issues might lead to jobs loss in the foreseeable future.
Regarding outside parties such as business partners, there are concerns that Airbnb prefers to partner with whites more than black in business ventures. Thus, there is an unfair tender allocation between white and black business partners. Besides, outsourcing of background checks to handle discrimination in a business partnership is seen as a potential ground to the further systematic selection of partners.
Solutions to ethical dilemma
Use of technological applications
In this case, Airbnb will use design features that will provide clients, partners and other outsiders a fair access to company’s services with minimal or no racial discrimination. For instance, these features will be applied in filtering overly positive or negative reviews on properties offered by the company; therefore, clients would make decisions based on property features and not previous reviews. Additionally, use of in-house data analytics applications will capture race profiling automatically and thus shorted evidence searching in addressing reported cases, which will help in administering adopted affirmative action. Consequently, it will increase profits since customers put off by racial profiling will onward demand more services.
Application of users’ recommendations
Airbnb could leverage on users information, customer conjoint analysis, in developing new policies that would cut negative impacts of an ethical issue. For instance, users may recommend the use of certain applications or be dropping particular features inhibiting fairness in online service. If there is a large number of recommendations relating to certain aspects of business, it rational to apply them to increase demand for services as well as reduce negative impacts of racial profiling. Additionally, Airbnb can apply users’ recommendation to predict preference of services that will demand by potential clients since organization policy should take into account users tastes and preferences. This will improve clients’ satisfaction and maximize shareholders’ profits.
Solving reported race profiling cases
Company policy
The policy outlined below will constitute affirmative approaches to tackle race profiling and discrimination in Airbnb. The policy aims at improving employees’ ability to detect and deal with racial profiling cases in the organization due to increasing cases of this issue in many multicultural companies.
Educational and operational measures to counter racial profiling in an organization
The organization will hold frequently focused- meeting to tackle reported racial profiling cases. Here, relevant employees and stakeholders are required to attend to solve organization’s ethical issues comprehensively. Mainly, this policy aims at training employees on timely identification and proper address of racial profiling cases.
Effects of company policy
There are both positive and negative effects associated with creation and implementation of new company policies. For instance, the outcomes of this policy will help in reducing stereotyped perceptions on clients, facilitate valued based partnership, maintain trust in online users based accommodation services and maximize shareholders profits. However, it will require resources to hold meetings and shift employees’ attention from organization goal.
References
Business & Legal Reports (Firm). (2006). Managing an HR department of one. Old Saybrook, CT: Business & Legal Reports.
Jain, T. R., & Khanna, O. P. (2008). Business economics. New Delhi: V K Publications.
