Business Code of Ethics

Code of Ethics is define as a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards (businessdictionary, 2011). For my paper I chose Southwest Airlines because of their excellent customer service that hey provide. I will give some general information on Southwest Airlines and the mission statement. I will determine the type of ethical system that the airline uses and the reason upon which I based my decisions.

I will include the ethical system driven, relativistic, entitlement, and duty- driven (legal or religious) ethics. I will identify and discuss how the code of ethics is used. Include several paragraphs on each use: one for the employees, one for management, and one for the board of directors. I will explain why the code of ethics is used, how it is used, and when it is used. I will explain why the organization needs to modify their existing code of ethics? I will explain how I might modify the code if I were the new CEO and how I would implement the changes.

I give the possible reactions to the code are to be expected from employees and managers. I will explain the effects the code have on organizational culture have on the acceptance of the code? Lastly I will explain the effect of the code on the organization. Southwest Information Southwest Airlines started operations on March 25, 1967 with $5000 in the bank they, filed application with the Texas Aeronautics Commission on November 27, 1967 (Southwest Airlines, 2011). The company wanted to provide customers with a pleasurable and safe way to travel.

The company net income is $500 million a year (Southwest, 2011). At Southwest Airlines, diversity means having a modern and multifaceted workforce as a key competitive advantage in the national marketplace. The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness individual pride, and company sprit (Southwest Airlines, 2011). This is the mission statement for everyday operations. This brings me to my next point. I will determine the type of ethical system used and the reason.

The Ethical System used and the Reason The code of ethics for Southwest Airlines was update last by the Board of Directors on September 18, 2008 (Southwest, 2011). The Code of Ethics for Southwest Airlines is to deliver Legendary Customer Service, with Spirit and LUV, leavened with Common Sense and Good Judgment while keeping Safety paramount. Treat our customer and each other the way we would like to be treated. Southwest Airlines place a high importance on honesty, integrity, and personal responsibility (phx. corporate, 2008).

The ethical system that is used in the Southwest code of ethics is humanistic and duty based ethics. My reason for choosing these two ethics is humanistic- when Southwest interviews a potential employee they are not looking for skills to fill their openings but they look at a person attitude and the way they carry themselves and then train them the Southwest way and for duty based which is an obligation and commitment, Southwest have an obligation and commitment to give their customer the highest level of customer service and it’s been proven to be true, because I have been a Southwest customer several times.

Driven ethics comes from within a person and the kind of individual Southwest hire for their company, these employees are driven to please their customers and this is one reason Southwest is one of the top airlines. Southwest employees are cared for and respected by the company and they shows with actions. For example the benefits and rewards they are given medical, dental, 401k, and the employee and their spouse and eligible dependents flies free. The rewards an employee that have perfect attendance are entitle to a Ford Explore which the entitlement ethics are an individual thic that says moral decisions are based entirely on what is in best interest of the individual(Trevino, L. K. Nelson, K. A. 2007). The reward or incentive that the employee receives is an individual goal. When a Southwest employee goes out his or her way to please a customer because of the kind of person is this is what we call the relativistic ethics. Most of these ethics fits Southwest Airlines because the kind of organization they are they care and their actions shows it.

This brings me to my next point how the code of ethics is used for employees, management and Board of Directors? How is the Code use for Employees, Management, and Board of Directors? Ethics are important in the airline industry because they are the support that guides individuals in the process of making good business decisions. Southwest code of ethics places a high value on honesty, respect, and integrity. This code applies to all employees and Board of Directors addition to other individuals who perform services for Southwest (phx. orporate, 2008). For the owners and managers the highest standards of ethical conduct are how the company was founded on and they are upholding the integrity, respect, and personal responsibility as leaders of the corporation. This brings me to my next point. Why how and when the code of ethics is used. Why the Code of Ethics is used? The function of the code is to give members and interested persons of Southwest Airlines with guidelines for making ethical choices for their work.

For example at work another group has completed a major project and I put my name on it and take the credit for it. The actions that I have taken are disrespect of others and or fail to declare personal responsibility. How the Code of Ethics is used? The code of ethics affects all employees who conduct and interferes with any operations, brings shame to the company or is offensive to customers or coworkers this type of behavior will not be tolerated in the workplace.

All employees from directors, supervisors, and employees will be held accountable for adherence to code of ethics and conduct. When the Code of Ethics is used? When an ethical violation has occurred it’s an act that goes against the conduct code of ethics that is expected of the employee. The code infractions will be sent up the chain of command to see what actions to taken and if this fails, it would than be sent up to a higher office to handle the violation. This brings me to my next point. Why modify the code of ethics?

Why Modify the Existing Code of Ethics? Code of Ethics is vital to ensure ongoing process to keep up with changes in the company and the environment. Pressure from code team, investors, or employees may push for an increase or modify the existing ethical standards. Also if the organization or corporation is expanding to a global market it will very important to update the code of ethics for this reason. This brings me to my next point. How would I modify and implement the code if I was the CEO? How would I Modify and Implement the Code as a CEO?

Coming in as the new CEO employees reactions towards me may not be so pleasant to all because of the changes that may be coming. The steps I would take modifying the code of ethics will be meeting with the Board of Director to discuss the existing code of ethics and review the current guidelines that are in place, such as review any values needed to adhere to relevant laws and regulations, identify values needed to address current issues in the workplace and consider any top ethical value that might be prized by stakeholders.

I would implement it by meeting with the human resource and schedule meeting with all departments and employees to get their input before I make any decisions and some pray to help make these decisions because it not just about me but others and their lively hood. I want to make the right decision and be fair from top to bottom. This brings me to my next point reactions I expect from employees and managers. The Reactions from Employees and Managers

Often employees react to codes with doubt believing the values are peaches and creme and the code are for window dressing, but when changes come, it’s like sour lemons. The reactions can bring about two solutions either some people may oppose the system of instinct and not favor of a change or some may find it necessary and able to go with the flow and the system turn out to be a successful system. This brings me to my next point the effects the organization culture on the approval of the code. The Effects of the Code on the Culture

For Southwest Airlines an ethical culture is one of their top priorities because in the course of a day they have many live in their hands by flying across the airways. This is an organization that is always providing training to all employees who is part of the Southwest Airlines family (Southwest, 2011). This brings to my final point. What the effect of the code on have on the organization. The Effect of the Code on the Organization The effects of the code of ethics on Southwest organization is very effective, because the company have and reputation to uphold.

Southwest leadership has relied on company values –concern, respect, and caring for employees and customer. Southwest likes to think of itself as a customer service organization that flies airplanes (Kelleher, Barrett, 2006). Conclusion Code of Ethics is vital to any organization, corporation, or small business which governs and guides all employees that apart of the organization. Southwest Airlines code of ethics is top priority because millions of people are depending on them for safety and excellent customer service because it is their reputation at hand.

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