Sub : Business: Ethics, Governance & Risk

Ans 2-

Several reasons cause the ultimate failure of jet airline. Five of them mentioned below
are ethical governance problems that caused failure of jet airways.

1-Changing Sahara Airlines' name

Sahara Airlines is now known as Jet Lite by Jet Airways. At the time, Sahara was a
major force whose name was on the lips of every Indian. Flyers who were drawn to the
Sahara brand image couldn't connect with Jet Lite, and this cost Jet Airways a
significant portion of its client base.

2-Mismanagement
There are no opposing views to this school of thinking, which holds that every
corporation and organization depends on the skills of its management board. The
founder of Jet Airways, Naresh Goyal, made the decision to run the airline alone and did
not appoint a competent management team to help him. His terrible financial judgement
is frequently discussed by insiders. For all Jet-related operations, he depended on a
single management group. It is not complicated to comprehend that diverse
departments require the management of specialized teams. You can't rely on your
current management board, which is already overworked, to take on more duties when
you buy another airline!

3-Expansion of traveler problems

Jet Airlines must provide morally superior customer service. By providing lounges and
other customer services on board, it develops its business model. But there are a lot of
grievances. as a means of saving money. Services provided to clients were poor.
Customers encountered problems such as expensive ticket rates, aircraft delays,
cancellations, poor baggage handling, and broken restrooms, which impacted the
airline's brand. Because of this, stakeholders' confidence was shaken. Customers then
began looking for other options.

4-Month-long delays and nonpayment wages

As a result of the lengthy delay in their salaries, the pilot and crew employees were not
pleased.
If the workforce wanted the airline to continue, they were urged to endure a 25% pay cut
for two years. The workforce rejected the plan as they had already agreed to two
compensation reductions. Then they thought high management ought to get involved. In
response, management made the decision to fire 100 senior executives in order to
reduce costs.

5-Dishonest practices
Naresh Goyal and the UPA government have enjoyed strong relations ever since the
start of the airlines. In order to encourage the expansion of jet airlines, policies were
created. Due to the allocation of all India slots and peak times to Jet, which resulted in
an increase in passenger traffic and financial success, A growth path existed as long as
the UPA government was in power. Indian Airlines reclaimed its routes and peak
periods as soon as the nda government took control. The downfall of jet airlines
followed this.

Ans 3a-

The value of business ethics goes far beyond employee loyalty, morale, and
management team effectiveness. Like all business endeavors, a company's ethical
conduct has a direct bearing on its short- and long-term prosperity
Business ethics have evolved over time, but they remain crucial for all organizations.
Integrity throughout the organization depends on running a firm with ethics at its
foundation from the top down.
A company can secure a strong reputation and long-term financial benefits by acting
consistently ethically. Employees are more likely to stick with and perform well for a
business that has high ethical standards.
When a firm acts ethically as a member of the community, the community frequently
lends its support in return, which may be extremely beneficial to the company's growth.
We can achieve this in a variety of ways, including getting involved with neighborhood
activities, contributing to local organizations, or just conducting yourself honestly when
interacting with other nearby businesses.
Business errors have the potential to have a devastating imp act on people,
communities, and ultimately, the environment. Business ethics aims to advance human
welfare by educating us on the factors that lead to and affect these wrongdoings.

Answer 3b-
Ethics incorporating in business helps in these ways
1-Investment is attracted by business ethics.
Business ethics helps company attract investors, maintain a high share price, and fend
off takeover attempts. There are several factors that a person or an organization
considers when investing in a specific stock. A corporation is taken into account from
the viewpoint of the qualitative features, such as their public image and the products
they happen to offer, in addition to the quantitative considerations relating to their profit
margin and future prospects. Before making the final investment, all of these factors are
taken into consideration.
Therefore, a company with a strong sense of business ethics is one that would like to
encourage additional corporate investment. Responsibility to the investor is a
component of business ethics, and as a result, businesses with a solid reputation for
ethical behavior also tend to draw more investment from newcomers to the market.
Investment is unquestionably crucial to success.

2-Corporate morality influences employee behavior

Employees are given example and helped to make decisions that are good for the firm
as a whole as well as for themselves by ethical leadership. In management models
ethical behavior inside an organization, employees take after them and use it as
guiding principle to make better decisions faster. This boosts productivity and overall
employee morale. The entire organization gains when workers carry out their tasks with
honesty and integrity. Employees who work for an organization that requires a high
standard of business ethics in all areas of operations are more likely to carry out their
job obligations at a higher level and are also more likely to stay loyal to that company.

3-Business ethics enhance the company's reputation in the public eye.

One of the biggest advantages is that it improved company reputation in the eyes of the
public and, in particular, of consumers, which boosts sales. Additionally, it prevents
costly and sometimes embarrassing public relations catastrophes.
A strong corporate culture boosts staff morale, which may lead to increased productivity
and employee retention, both of which have a favorable financial impact on the
business. Increased employee retention lowers the cost of hiring new staff while higher
levels of productivity increase the company's efficiency.
Since firm behavior generally determines public image, business ethics have a
significant impact on public image since they influence behavior. And one of the
reasons why corporate ethics are crucial to a company's overall performance is public
perception.