Harvard Case - David Dao on United Airlines
"David Dao on United Airlines" Harvard business case study is written by Benjamin Edelman, Jenny Sanford. It deals with the challenges in the field of Business Ethics. The case study is 17 page(s) long and it was first published on : May 23, 2017
At Fern Fort University, we recommend a comprehensive overhaul of United Airlines' corporate responsibility framework, prioritizing ethical leadership, transparency, and a commitment to stakeholder theory. This will involve a multi-pronged approach, including establishing clear ethical guidelines, enhancing employee training, and implementing robust communication strategies to rebuild trust with passengers, employees, and the public.
2. Background
The David Dao incident on United Airlines in 2017 exposed a deep-seated issue within the company: a lack of ethical leadership, transparency, and a disregard for the rights and dignity of passengers. The incident, where a paying customer was forcibly removed from an overbooked flight, sparked widespread outrage and significantly damaged the airline's reputation. The incident highlighted the need for a fundamental shift in the company's approach to corporate responsibility.
The main protagonists of the case study are:
- David Dao: The passenger who was forcibly removed from the flight.
- United Airlines: The airline responsible for the incident.
- The public: The broader audience who witnessed the incident and reacted to it.
3. Analysis of the Case Study
This case study can be analyzed through the lens of stakeholder theory, which emphasizes the importance of considering the interests of all stakeholders, including customers, employees, investors, and the community. United Airlines failed to prioritize the needs of its passengers, leading to a negative impact on its reputation and financial performance.
Ethical leadership plays a crucial role in shaping a company's culture and values. The incident revealed a lack of ethical leadership at United Airlines, as evidenced by the decision to forcibly remove a paying customer and the subsequent attempts to justify the actions.
Transparency is essential for building trust with stakeholders. United Airlines' initial response to the incident was characterized by a lack of transparency, further fueling public outrage.
Corporate governance is also a critical aspect of this case. The incident raised questions about the company's internal processes and decision-making mechanisms.
4. Recommendations
1. Establish a Clear Code of Conduct and Ethical Guidelines:
- Develop a comprehensive code of conduct that clearly defines ethical standards for all employees, including those involved in customer service and operations.
- Implement mandatory ethics training programs for all employees, focusing on ethical decision-making, conflict resolution, and customer service best practices.
- Create a whistleblowing system that encourages employees to report unethical behavior without fear of retaliation.
2. Enhance Transparency and Communication:
- Implement a policy of full transparency regarding overbooking and passenger rights.
- Develop clear communication protocols for handling situations involving customer dissatisfaction, including the use of social media and other online platforms.
- Establish a dedicated customer service team to address complaints and concerns promptly and effectively.
3. Foster Ethical Leadership:
- Appoint a Chief Ethics Officer to oversee the implementation of ethical standards and provide guidance to leadership.
- Encourage ethical leadership at all levels of the organization through performance reviews, incentive programs, and recognition initiatives.
- Promote a culture of respect and empathy towards customers and employees.
4. Implement a Stakeholder Engagement Strategy:
- Regularly engage with key stakeholders, including customers, employees, investors, and community leaders, to understand their concerns and expectations.
- Establish a stakeholder advisory board to provide input on corporate responsibility initiatives.
- Be responsive to stakeholder feedback and incorporate it into decision-making processes.
5. Focus on Corporate Social Responsibility:
- Develop a comprehensive corporate social responsibility (CSR) strategy that addresses key issues such as environmental sustainability, diversity and inclusion, and community engagement.
- Implement initiatives that demonstrate a commitment to ethical sourcing, fair trade practices, and labor rights.
- Measure and report on CSR performance to ensure accountability and transparency.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with United Airlines' mission to provide safe, reliable, and customer-centric air travel.
- External customers and internal clients: The recommendations address the needs of both external customers and internal employees, promoting a culture of ethical behavior and respect.
- Competitors: The recommendations aim to position United Airlines as a leader in corporate responsibility, differentiating it from competitors and attracting customers who value ethical business practices.
- Attractiveness ' quantitative measures if applicable: While quantifying the impact of these recommendations is challenging, they are expected to improve customer satisfaction, employee morale, and brand reputation, ultimately contributing to long-term financial success.
6. Conclusion
The David Dao incident serves as a stark reminder of the importance of ethical leadership, transparency, and stakeholder engagement in the business world. By implementing the recommended changes, United Airlines can rebuild trust with its stakeholders, improve its reputation, and create a more ethical and sustainable business model.
7. Discussion
Alternatives not selected:
- Ignoring the issue: This would have resulted in a continued decline in reputation and potential legal repercussions.
- Offering a token apology: This would have been perceived as insincere and further damaged trust.
Risks and key assumptions:
- Implementation challenges: Implementing these recommendations requires significant commitment and resources.
- Cultural resistance: Some employees may resist changes to the existing culture.
- Short-term financial impact: Implementing these changes may have a short-term impact on financial performance, but the long-term benefits are expected to outweigh the costs.
8. Next Steps
- Establish a dedicated team: Form a team of experts to oversee the implementation of the recommendations.
- Develop a timeline: Create a detailed timeline with key milestones for each recommendation.
- Communicate progress: Regularly communicate progress to stakeholders to demonstrate commitment and transparency.
- Monitor and evaluate: Regularly monitor the impact of the recommendations and make adjustments as needed.
By taking these steps, United Airlines can transform its corporate responsibility framework and emerge as a leader in ethical business practices.
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Case Description
In widely-circulated videos, United staff and Chicago security forcibly remove a passenger from his paid seat on an aircraft, injuring him severely. United leadership must decide how to respond to public outcry.
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