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Harvard Case - Friendly Skies: Welfare-to-Work at United Airlines

"Friendly Skies: Welfare-to-Work at United Airlines" Harvard business case study is written by Rosabeth Moss Kanter, Ellen Pruyne. It deals with the challenges in the field of Social Enterprise. The case study is 28 page(s) long and it was first published on : Oct 22, 1998

At Fern Fort University, we recommend United Airlines implement a comprehensive and strategic "Welfare-to-Work" program that leverages its existing resources and partnerships to create a sustainable and impactful social enterprise. This program should prioritize social entrepreneurship and shared value creation by integrating social impact goals into its core business operations. This recommendation emphasizes the importance of corporate social responsibility, diversity and inclusion, and stakeholder relations in achieving long-term success.

2. Background

This case study focuses on United Airlines' 'Welfare-to-Work' program, a pilot initiative aimed at providing job training and employment opportunities to individuals receiving government assistance. The program faced challenges in achieving its goals due to limited resources, lack of clear program structure, and insufficient stakeholder engagement. The case study highlights the need for a more comprehensive and strategic approach to address the complex social and economic issues surrounding welfare-to-work programs.

The main protagonists of the case study are:

  • United Airlines: A major airline company seeking to implement a socially responsible initiative.
  • The Chicago Coalition for the Homeless: A non-profit organization partnering with United Airlines to provide support and resources to program participants.
  • The participants of the program: Individuals receiving government assistance who are seeking employment opportunities.

3. Analysis of the Case Study

This case study can be analyzed using the Stakeholder Theory framework, which emphasizes the importance of considering the interests and needs of all stakeholders involved. The analysis should consider the following:

  • Internal Stakeholders: United Airlines employees, management, and shareholders.
  • External Stakeholders: The Chicago Coalition for the Homeless, program participants, government agencies, local communities, and the general public.

Key Issues:

  • Lack of Strategic Alignment: The program lacked a clear strategic plan and alignment with United Airlines' overall business objectives.
  • Limited Resources: The program faced limitations in terms of funding, staffing, and infrastructure.
  • Lack of Stakeholder Engagement: The program failed to adequately involve all stakeholders, particularly program participants and the Chicago Coalition for the Homeless.
  • Insufficient Program Structure: The program lacked a clear structure, including defined goals, objectives, and performance metrics.
  • Limited Impact Measurement: The program lacked mechanisms to effectively measure its social impact and return on investment.

4. Recommendations

To address the challenges outlined above, United Airlines should implement the following recommendations:

  • Develop a Comprehensive Strategic Plan: This plan should clearly define the program's goals, objectives, target audience, and key performance indicators. It should also align with United Airlines' overall business strategy and corporate social responsibility objectives.
  • Establish a Dedicated Program Structure: Create a dedicated team responsible for managing the program, including staff with expertise in social entrepreneurship, workforce development, and stakeholder engagement.
  • Secure Adequate Funding and Resources: Secure sufficient funding and resources to support the program's operations, including training materials, staff salaries, and program infrastructure.
  • Foster Strong Partnerships: Strengthen partnerships with the Chicago Coalition for the Homeless and other relevant non-profit organizations to leverage their expertise and resources.
  • Engage Stakeholders: Actively involve all stakeholders in the program's design, implementation, and evaluation. This includes program participants, government agencies, local communities, and the general public.
  • Implement a Robust Impact Measurement Framework: Develop a comprehensive framework to measure the program's social impact, including metrics such as employment rates, wage increases, and participant satisfaction.
  • Promote Diversity and Inclusion: Ensure the program is inclusive and accessible to all individuals receiving government assistance, regardless of their background, skills, or experience.
  • Leverage Technology: Utilize technology to streamline program operations, enhance communication, and provide participants with access to online training resources.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The program aligns with United Airlines' mission to provide safe and reliable transportation while contributing to the well-being of its communities.
  • External Customers and Internal Clients: The program benefits both external stakeholders, such as program participants and the Chicago Coalition for the Homeless, and internal stakeholders, such as United Airlines employees and shareholders.
  • Competitors: The program differentiates United Airlines from its competitors by showcasing its commitment to social responsibility and its innovative approach to workforce development.
  • Attractiveness: The program offers a positive return on investment in terms of social impact, brand reputation, and employee engagement.
  • Assumptions: The recommendations assume that United Airlines is committed to long-term sustainability and social impact, and that it is willing to invest the necessary resources and time to develop a successful program.

6. Conclusion

By implementing these recommendations, United Airlines can transform its 'Welfare-to-Work' program into a successful and impactful social enterprise. This program can serve as a model for other companies seeking to leverage their resources and expertise to address societal challenges and create shared value.

7. Discussion

Alternative approaches to the 'Welfare-to-Work' program include:

  • Focusing solely on internal recruitment: United Airlines could prioritize hiring individuals receiving government assistance for internal roles within the company. This approach may be less impactful in terms of social change but could be more cost-effective.
  • Partnering with government agencies: United Airlines could collaborate with government agencies to develop and implement a more comprehensive welfare-to-work program. This approach would require significant coordination and resource allocation.

The key risks associated with the recommended approach include:

  • Insufficient funding and resources: The program may face challenges in securing adequate funding and resources to support its operations.
  • Lack of stakeholder buy-in: Stakeholders may not be fully engaged or supportive of the program's goals and objectives.
  • Difficulty in measuring impact: It may be challenging to accurately measure the program's social impact and return on investment.

8. Next Steps

To implement the recommended approach, United Airlines should take the following steps:

  • Form a dedicated program team: Assemble a team of experts in social entrepreneurship, workforce development, and stakeholder engagement.
  • Develop a detailed strategic plan: Create a comprehensive plan outlining the program's goals, objectives, target audience, and key performance indicators.
  • Secure funding and resources: Identify and secure funding sources to support the program's operations.
  • Establish partnerships: Formalize partnerships with non-profit organizations and government agencies.
  • Pilot the program: Launch a pilot program to test and refine the program's design and implementation.
  • Evaluate and refine the program: Continuously evaluate the program's effectiveness and make adjustments as needed.

By following these steps, United Airlines can create a sustainable and impactful 'Welfare-to-Work' program that benefits both the company and the community.

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Case Description

In 1997 United CEO Gerald Greenwald was appointed chairman of the national Welfare-to-Work Partnership by President Clinton and committed United to hiring from the welfare rolls. A welfare-to-work recruitment program was rapidly established and soon followed by a mentoring program. These programs were successful--United surpassed its welfare-to-work hiring targets and attained higher retention rates. With a decreasing supply of employable welfare recipients, however, the question was whether Greenwald and United could continue to provide corporate leadership in the welfare-to-work arena.

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