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Autor: anton 24 March 2011
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Environment of Suvanabhumi Airport
The new Suvarnabhumi Airport was scheduled to open in June 2006. However, this date was delayed until 28 September 2006 for testing and validation by cracked runways. The main reason for replacing Old Bangkok International Airport to the new one was unexpanded the old one. (BKK/VYB 2007)
2.1 Internal environment
Boyatzis (1982) discuss the idea that internal environment is composed of the elements within the organization.
According to airline industry information, construction workers at the new Suvarnabhumi international airport have been accused of sexual harassment by several female employees. The airline employees alleged that they were verbally or physically assaulted while working evening shifts at the airport. (M2 Communications Ltd 2006)
In this case, the new airport is lacking enough security management at the airport. As the area of the new airport is huge, security guards are not enough to take care of all airport area.
2.2 External environment
The external environment is outside situation, which cannot control. The external environment that divided to two components, the specific environment and the general environment (Robbins et al., 2006, p.82).
Figure 1 The external environment
(Robbins et al., 2006, p.83)
According to report of Airports of Thailand Public Company Limited, Airports of Thailand Public Company Limited has laid down a policy for environmental management that complies with national rules and regulations. (Airport of Thailand Public Company Limited 2005)
Figure 2 Suvarnabhumi Airport
(Airport of Thailand Public Company Limited 2005)
2.2.1 Specific environment
The part of the environment that is directly relevant to the achievement of an organizationÐ²Ð‚â„¢s goals. It combines as the following information (Robbins et al. 2006, p. 82).
1) Customers- An organization exist to meet the needs of customers. (Robbins et al. 2006, p. 83)
According to research of Narin Turakavongsakun, a consultant of Chefron Co. Ltd mentioned that there are three groups of Suvarnabhumi AirportÐ²Ð‚â„¢s customer. Domestic and foreign airline company, logistic business groups and passenger of the airport (Narin Turakavongsakun 2006)
In this case, as the new airport has been replaced the old one, there would be more tourists and may become the center of business in Asia Pacific region.
2) Suppliers- Firms provide materials and equipment. (Robbins et al. 2006, p. 83)
According to a report of the Japan International Cooperation Agency, the Japanese government has been offering a Japanese Yen Loan to Thailand under Japan's Official Development Assistance Program through the Japan Bank for International Cooperation since 1996. (The Japan International Cooperation Agency 2007)
3) Competitors- All organizations have one or more competitors. (Robbins et al. 2006, p. 83)
According to managing director Foo Sek Min said, Suvarnabhumi Airport could become a formidable competitor to the award-winning Changi Airport with Singapore's Changi airport and Kuala Lumpur International Airport. (New Bangkok Airport Guide 2006)
4) Pressure groups- The special interest groups can influence the actions of organization. (Robbins et al. 2006, p. 85)
According to Kum Chad Luk Newspapaer, 359 residences who were affected noise pollution from Suvarnabhumi Airport had claimed to the government that there was the impact from the construction of Suvarnabhumi Airport such as noise pollution and no one has been responsible for this. (Kum Chad Luk 2006)
2.2.2 The general environment
External conditions includes economic, political, socio cultural, demographic, technological and global conditions. (Robbins, et al. 2006, p.86)
1) Economic Condition- The economic factors can affect management practices in an organization. (Robbins, et al. 2006, p.86)
According to economic review of Nondhanada, the capacity to handle 45 million passengers and 3.3 million tons of cargo a year of the airport in its first phase, Suvarnabhumi Airport is the key to Thailand's bid to double the number of tourists to 20 million by 2008. (Nondhanada Intarakomalyasut economic review 2004)
2) Political Condition- Government plays the major roles that have an impact on business. (Robbins, et al. 2006, p.86)
According to Suvarnabhumi Aeropolis Development research, the Thai government planed to develop land use, transportation, flood control, water supply, wastewater, solid waste management, and utilities in Suvarnabhumi area to become a as good as Bangkok area. (Suvarnabhumi Aeropolis Development research 2006)
It seems that the government was trying to target Suvarnabhumi area to become another business center in Thailand.
Figure 3 Proposed New Zoning Plan for Bangkok
(Suvarnabhumi Aeropolis Development research 2006)
3) Social Cultural Conditions- It concerns about practices that changing expectations of the society. (Robbins, et al. 2006, p.87)
According to Suvarnabhumi Aeropolis Development research, the BMA Governor announced that five local positions would be revoked. (Suvarnabhumi Aeropolis Development research 2006)
It seems that revoking household for the new airport will affect cultures of people in that area because of their life style and religion.
4) Demographic Conditions- It encompasses trends in the physical characteristics of a population. (Robbins, et al. 2006, p.87)
According to a research of Suvarnabhumi Aeropolis Development, the average number of family members in each household is 3.9. The average age of the family members is 32. The majority of households were found to have a monthly income of 10,000 to 25,000 Baht. (Suvarnabhumi Aeropolis Development research 2006)
Table 1 Population and Households in the Study Area
( Suvarnabhumi Aeropolis Development research 2006)
According to the above table, they are sure that after Suvarnabhumi airport opens, Suvarnabhumi area will become the Air logistic center of Thailand. As more tourists are coming to Thailand, it will make the rate of income for people who live in Suvarnabhumi area are higher.
5) Technological Conditions- It is the most rapid changes. (Robbins, et al. 2006, p.88)
Thailand attaches great importance to safety and security at the new Suvarnabhumi Airport. Prime Minister Thaksin Shinawatra stated that, as safety and security are uppermost in Thailand consideration, further trial runs and operations testing involving international flights are envisaged. This will make Suvarnabhumi Airport become one of the most important world centers for passenger and cargo services. (Suvarnabhumi airport Thailand 2007)
6) Global Conditions- It is one of the major factors affecting managers and organizations. (Robbins, et al. 2006, p.89)
According to an article of the International Air Travel Association, after its inauguration, more airlines start using it as their regional hub. (New Bangkok Airport Guide n.d.)
It seems that the aviation industry will grow rapidly in line with the boom in air travel in the Asia Pacific region.
3. Managerial Ethics
According to Robbins mentioned that ethic is the rules and principles that define right and wrong conduct which there are four views of ethics. (Robbins et al.2006, p.174)
3.1 Stage of moral development
1) Preconventional level is a personÐ²Ð‚â„¢s choice between right and wrong are based on the personal consequences involved. (Robbins et al.2006, p.176)
2) Conventional level indicates that moral values reside in maintaining expected standards and living up to expectations of others. (Robbins et al.2006, p.176)
3) Principled level is individuals make a clear effort to define moral principles regardless of the authority of the groups to which they belong or society in general. (Robbins et al.2006, p.176)
Figure 4 Stages of moral development
(Robbins et al.2006, p.176)
Figure 5 Factors that affect ethical and unethical behavior
(Robbins et al.2006, p.176)
3.2 Four views of ethics
In the case of borrowing Japanese Yen from the Japanese government to construct the new airport, Thailand would become in a huge debt, even though it would develop Thai industry to grow rapidly in line with the boom in air travel in the Asia Pacific region (The Japan International Cooperation Agency 2007). Suvarnabhumi Airport has been constructed for expanding the old international airport to develop the capacity to handle 45 million passengers and 3.3 million tons of cargo a year of the airport and face the competition to become the trade center hub of the Asia Pacific region by no consider the impact to the residences of Suvarnabhumi area from the outcome which the situation would be occur from these external environment such as the noise pollution. (Grant Peck n.d.)
Managers Bangkok's new international airport had responded the residents around Suvarnabhumi airport by paying compensation that offered buying the victims' houses or paying for home repairs. (Hrdefender 2006)
Figure 6 Noise pollution area
( Hrdefender 2006)
Preconventional level Conventional level Principled level
Utilitarian view of ethics Unethical
The right view of ethics Ethical
Theory of justice view of ethics Unethical
Integrative social contracts theory Ethical/Unethical
1) Utilitarian view of ethics states a view of ethics that says that ethical decisions are made solely on the basis of their outcomes or consequences. (Robbins et al.2007, p.174)
In the case of construction of Suvarnabhumi Airport, it seems to be unethical in the sticking to rules to avoid physical punishment of preconventional level that Suvarnabhumi Airport has been constructed for expanding the old international airport with no consider the impact to the residences of Suvarnabhumi area from the outcome which the situation would be occur from these external management such as the noise pollution. Residents living nearby the airport continue to complain of extreme noise pollution from planes taking off and landing and are calling for the AOT to buy their houses so they can resettle in quieter areas. The residents said they would submit a petition to the AOT today, calling on the airport operator to adopt a runway management scenario that reduces the impact of noise on local communities and speeds up compensation payments to eligible recipients under an agreement signed by the AOT, the affected villagers, and the Treasury Department. (Bangkok Post 2007)
2) The right view of ethics is a view of ethics that is concerned with respecting and protecting individual liberties and privileges. (Robbins et al.2007, p.175)
In the case of construction of Suvarnabhumi Airport, it seems to be ethical in valuing rights of others and upholding absolute values and rights regardless of the majorityÐ²Ð‚â„¢s opinion of principled level. As the government had responded the residents around Suvarnabhumi airport by paying compensation that offered buying the victims' houses or paying for home repairs.
3) Theory of justice view of ethics is a view of ethics in which managers impose and enforce rules fairly and impartially and do so by the following all legal rules and regulations. (Robbins et al.2007, p.175)
In the case of construction of Suvarnabhumi Airport, it seems to be unethical in living up to what is expected by people close to you of conventional level. The project of constructing the new airport did not seem to be fair to the residents who lived around Suvarnabhumi area because some of them had to be revoked by the government.
4) Integrative social contracts theory is a view of ethics that proposes that ethical decisions be based on existing norms in industries and communities in order to determine what constitutes right and wrong. (Robbins et al 2006, p.175)
In the case of borrowing Japanese Yen from the Japanese government to construct the new airport, Thailand would become in a huge debt, even though it would develop Thai industry to grow rapidly in line with the boom in air travel in the Asia Pacific region (The Japan International Cooperation Agency 2007). This case can view in both ways as ethical and unethical in living up to what is expected by people close to you of conventional level. In the view of ethic, Thai government borrowed huge money from Japanese government to develop the country. This would make Thailand become the business center of the Asia Pacific region. In other hand, borrowing money for the construction of the new airport from Japan would make Thailand be in debt. It seems to be unethical. This would affect to Thai population that tax of Thai citizens would be paid for the debt of Thailand.
3.3 Example of Managerial Ethics
An example that concerns about the Managerial ethics which is the case of construction workers at the new Suvarnabhumi international airport, there were accused of sexual harassment by several female employees. The airline employees alleged that they were verbally or physically assaulted while working evening shifts at the airport (Airline industry Information 2006). As there was an officer who was working there, she told me about the physically assaulted information that there are not enough security guards. As the area of Suvarnabhumi airport is very big, the guards could not be able to check all the area. It was very dangerous or harmful to the all females there.
4. Corporate social responsibility
According to Mallen Baker mentioned that CSR is a business term in search of an ironclad definition. The World Business Council for Sustainable Development stated that CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. There are two views of social responsibility, the first is the classical view and the second is the socioeconomic view. (Mallen Baker n.d.)
Figure 7 Socioeconomic view
(Mallen Baker n.d.)
4.1 Social involvement
1) Social responsibility - obligation beyond that of law and economics for a firm to pursue long term goals that are good for society (Robbins et al.2007, p.164)
2) Social obligation - obligation of business to meet economic and legal responsibilities (Robbins et al.2007, p.163)
3) Social responsiveness - capacity of firm to adapt to changing societal conditions (Robbins et al.2007, p.164)
4.2 Two opposing views of social responsibility
In the case of borrowing Japanese Yen from the Japanese government to construct the new airport, JBIC signed loan agreements with New Bangkok International Airport Company Limited and Metropolitan Electricity Authority for financing the total amount of 45,170 million yen. The agreement with NBIA will finance a loan to carry forward the construction of Suvarnabhumi Airport. These two projects will make city function of Bangkok stronger and reliable to meet the increasing demands for new international airport and more electricity (JBIC Bangkok Newsletter 2002)
The Suvarnabhumi Airport, it has been constructed for expanding the old international airport to develop the capacity to handle 45 million passengers and 3.3 million tons of cargo a year of the airport and face the competition to become the trade center hub of the Asia Pacific region by no consider the impact to the residences of Suvarnabhumi area from the outcome which the situation would be occur from these external environment such as the noise pollution. (Grant Peck n.d.)
Managers Bangkok's new international airport had respond the residents around Suvarnabhumi airport by paying compensation that offered buying the victims' houses or paying for home repairs. (Thai News 2007)
1) The classical view
The view that managementÐ²Ð‚â„¢s only social responsibility is to maximize profits. The primary responsibility is to operate the business in the best interests of the shareholders. (Robbins et al.2007, p.161)
In this case of borrowing Japanese Yen from the Japanese government to construct the new airport, Suvarnabhumi Airport has been constructed to develop the capacity to handle 45 million passengers and 3.3 million tons of cargo a year to make the competitive advantage from the competitors of the Asia Pacific region. This seems to be social responsibility to receive the long term goals to make advantages of Thai trading. (JBIC Bangkok Newsletter 2002)
2) The socioeconomic view
The view that managementÐ²Ð‚â„¢s social responsibility goes beyond making profits to include protecting and improving societyÐ²Ð‚â„¢s welfare. The position is based on the belief that corporations are not independent entities responsible only to shareholders. They also have a responsibility to the larger society that creates and sustains them. (Robbins et al.2007, p.161)
In this case of the impact to the residences of Suvarnabhumi area from the outcome which is the situation would be occurred from the noise pollution. This seems to be social responsiveness that Suvarnabhumi Airport offered to respond the damage caused by noise pollution either by buying the victims' houses or paying for home repairs. (MCOT English News 2006)
4.3 Example of Social Responsibility
For example of business that I familiar and though it has good CSR in Thailand which is Somboon Group is a conglomerate of Thai-owned companies who have played an important role in the automotive parts manufacturing industry for more than 40 years. The Group produces hundreds of kinds of auto parts, supplying both domestically and overseas in seven countries. Somboon Group became a public company limited and joined the Thailand Stock Exchange Market in January 2004. Currently, the GroupÐ²Ð‚â„¢s companies have approximately 1,400 employees. Somboon Group was also one of the first to enact Corporate Social Responsibility initiatives in Thailand. In doing so, they developed a good working environment with civil society actors, including White Factory, White Elephant project, Nice and Clean Factory from Our Hands, Green Factory or Biological Therapy for Environment Project, 20/20+ project, Somboon Group Smart Club, Somboon Group and the National Strength Campaign, Somboon Group Fit for Fun To Be Number One Club and Factory Cops Quality of Working Life Project. The idea of working with communities originated from a company philosophy policy regarding the need to be involved in the community to improve employeesÐ²Ð‚â„¢ lives. However, it wasnÐ²Ð‚â„¢t easy at first. It took time for the founders to develop a clear vision of how to work with communities. Because the company is still primarily run by members of Kitapanich family, they have benefited from greater flexibility in implementing such programs. (Somboon Kitapanich n.d.)
They provided many projects and programs to develop Thai socializations which they realize that family institution is very important to protect the children with love from bad environment.
The Suvarnabhumi Airport is the case study of the Assignment to analysis about the internal and external organizations that it is important to know how the organization run or manage their business, environment and the impact which occur from mistake management can effect to many factors of the organization by directly and indirectly.
For managerial ethic, the study found it has many reason to analysis or consider the organization that are ethical or unethical but that the people in the organization should have the ethic for their company and working. And the organization should pay back the profit to the society.
For social responsibility, the case study shows how the organization responds what it has done to the society. In this case, it seems to be good things that the impact that had affected to the residents can be solved fairly but the government should find areas that the respondents are able to move; the government should not just pay money to the residents to solve the problems.
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