Business Ethics Assignment Ryanair
Introduction
In today’s competitive environment, every organization wants to earn as much profit as they can by entering and exploiting not only resources from the domestic country but also from country across the globe. Ryanair was established with a share capital of only £1 as well as the staff of 25 by the Ryan family (Ryanair, 2014). Ryanair is recognized as being the only ULCC (ultra-low cost carrier) within Europe, operating over 1,600 flights every day (more than 500,000 every year) from 57 bases, all through 1,600 low cost routes, linking 180 different destinations within 29 nations and managing a fleet of approximately 303 new Boeing 737-800 aircraft (Ryanair, 2014). The company has lately declared firm orders for additional 175 new Boeing aircraft that would be delivered amid the years 2014 and 2018 (Ryanair, 2014). At present, Ryanair comprises of a team of over 9,000 exceedingly capable experts and has an exceptional 29-year security record (Ryanair, 2014). However, despite such outstanding growth and progress, Ryanair has been under high debate and controversies lately. The company has devised several charges, which has resulted in high controversy.
Currently, Ryanair charges around $208 for change in name on the boarding pass, additional luggage charges of $28 per kilo, boarding pass charges of $40, credit card usage fee of 2 percent of the complete amount and others. The chief stakeholders associated with this controversy are the company’s customers. The customers are greatly impacted by all these additional charges. If Ryanair decides to continue charging their customers with such additional charges, the customer would persist to be a key stakeholder affected by this issue. Several travelers have forwarded complaints about the corporation as well as the fees they have been charged. Moreover, the staff members of the company are also a fraction of the stakeholders affected by the controversy. Staff members are compelled to charge customers with additional fees that might appear awkward sometimes, like charging passenger for being overweight. Further, taking the above discussion into consideration this particular paper examines the case of Ryanair by taking into consideration different theories i.e. Individualism theory, and Kantianism theory.
Individualism Theory
Individualism theory is applicable when an organization is concerned about maximizing its overall profits (Albrecht, 2012). Individualism refers to a moral stance, ideology, political philosophy or social viewpoint, which lays focus on the moral significance of the individual. Moreover, the individualists support the practice of one's objectives and wants and thus, value self-reliance and autonomy and assert that individual’s interests should get preference over a social group or the state (Albrecht, 2012). It opposes the external interference on one's individual interests by institutions or society like the government.
In case of Ryanair, the company employs the concept of Individualism since it is only concerned about making profits. Since Ryanair is trying to perk up its profit levels, it is performing ethically as per this theory. The company is charging needless fees from the customers, like charges for being overweight or using the bathroom. Instead of concentrating on travelers’ satisfaction, Ryanair is just worried about generating profits.. Moreover, the corporation has witnessed their fair portion of negative publicity and feedback but this has still to have an impact on their profit levels. As a result, Ryanair is just concentrating on itself, instead of customers. The corporation has observed a rise in profit and revenue after charging the customers with extra fees.
Moving ahead, Individualism theory has several advantages associated with it. Firstly, individuals and companies in an Individualistic community hold several features; nevertheless, they also hold the autonomy to remain diverse (Hursthouse, 2001). These different personalities and perspectives insert innovative lifestyle habits and way of social interaction. Secondly, Individualism aids individuals and companies to be highly tolerant as well as acceptable of outside groups or individuals that are considerably diverse from themselves (Albrecht, 2012). Thirdly, Individualism motivates being free and free-spirited that makes a contribution towards individual progress (Albrecht, 2012). However, there are also few drawbacks related to the theory of Individualism that should not be overlooked. Firstly, few might follow short-term incentives at the cost of long-term advantages, like sustainable advancement (West, 2004). Secondly, Individualism theory lays high focus on individual interests than group (Pojman and Fieser, 2011).
The Kantianism theory involves four different principles. The foremost principle is to perform rationally. This implies towards the fact that one shouldn’t perform disconnectedly in their own acts or view themselves as being excluded from regulations (Gary, 2003). Moreover, as per the second principle one should permit and aid individuals in forming practical decisions. The third principle involves respecting individuals, their independence and individual requirements and disparities (Gary, 2003). Lastly, the fourth principle refers that one should be encouraged by way of goodwill and perform what is correct since it is correct (Gary, 2003).
In case of Ryanair, it can be clearly stated that the company is simply going against all the four discussed principles of Kantianism theory. Ryanair is not performing reasonably, since the company feels that what it is doing is right, however ethically it is unreasonable. The second principle of the theory is also not being applied by the company. Ryanair is not permitting its pilots and flight attendants to do what is correct, rather they are forcing them to charge travelers for using the bathroom as well as pay for water. In addition the next principle that Ryanair is not following is respecting individuals. The corporation is demoralizing people by charging them for things like being overweight. Ryanair is also not following the fourth principle that involves being encouraged by goodwill and performing what is correct. This corporation is just concerned about generating profits.
Moving ahead, there are several advantages associated with Kantian theory. Firstly, Kantian theory puts forward moral laws, which hold universally, in spite of individual situations or culture. Secondly, Kant holds highest admiration for human autonomy and dignity (Hooker, 2002). Thirdly, Kantian theory is not influenced by emotions (Hursthouse, 2001). The theory doesn’t allow individuals to demonstrate favoritism towards friends. It’s a completely rational approach. Fourthly, the theory of Kant offers the basis for modern concepts of justice and equality (Hursthouse, 2001). Lastly, Kantian theory provides objective standards, autonomous of individual interests, cultural partiality etc. However, there are several drawbacks related with Kantian theory that should not be overlooked. First of all, there are few circumstances when upshots are so strict that several believe that it is better to go against a rule or regulation than permit unpleasant things to take place (Hooker, 2002). Secondly, one should be capable of breaking an uncooperative regulation in case if the individual situation warrants it (Hursthouse, 2001). Thirdly, considering that something is unreasonable does not give any impetus to perform the correct thing (Stanwick and Stanwick, 2009). Fourthly, the theory asks to tag along maxims since if they were universal policies, however since because one acts in this manner, it does not imply that others would also (Moore, 2005). Lastly, universal policies are not supportive in the actual world where each circumstance is different (Padilla, 2004).
Conclusion
References:
Albrecht, J. M., 2012, Reconstructing Individualism: A Pragmatic Tradition from Emerson to Ellison, Fordham University Press
Gary, B., 2003, Kant's Practical Philosophy: From Critique to Doctrine, Palgrave Macmillan.
Hursthouse, R., 2001, On Virtue Ethics, Oxford: Oxford University Press.
Hooker, B., 2002, Ideal Code, Real World: A Rule-Consequentialist Theory of Morality, Clarendon Press
Moore, G. E., 2005, Ethics : and "The Nature of Moral Philosophy" :and "The Nature of Moral Philosophy". First ed. New York: Oxford University Press.
Padilla, R., 2004, Business Ethics' 2004 Ed. Philippine: Rex books.
Pojman, L. P. and Fieser, J., 2011, Ethics: Discovering Right and Wrong. Boston : Cengage Learning.
Ryanair, 2014, About Us [Online] http://www.ryanair.com/en/about, Date Accessed: 02/04/2014
Stanwick, P.A. and Stanwick, S.D., 2009, Understanding Business Ethics. Pearson Prentice Hall: Upper Saddle River, NJ
West, H. R., 2004, An Introduction to Mill's Utilitarian Ethics. First ed. Cape town: Cambridge University Press.
