Classic Airlines

Stakeholder Perspectives/Ethical Dilemmas

Classic Airlines senior management team is under extreme pressure to decrease cost and increase customer satisfaction and loyalty. A potential conflict between managerial self-interest and the ethical responsibility of managers to perform in an ethical way is an issue that can be faced within the company. Independent and open procedures must be in place in order to monitor managerial ethical performance and avoid any wrongful behavior.

As a corporation Classic Airlines main interest is to increase profitability and reduce operating cost, with the right to remain competitive by implementing the necessary strategies to accomplish their goals. The union's main interest is to maintain their members employed and rewarded, with the right to have the company honor the collective bargaining agreement. Since previous bargaining agreements have already been made any changes to the agreements might be consider dishonest.

The issue concerning Classic Airlines management vs. Classic Airlines stockholders could be a threat towards company growth. The company's main goal is to increase profitability and reduce operating cost in order to maximize shareholder wealth, while improving customer satisfaction. Stockholders with a different set of values and ethics might apply pressure to cut corners if the company was to under perform or to increase profits, and sacrifice customer satisfaction.

Risk Assessment

Reducing the required mileage amount for each tier per calendar year (Basic member up to 25,000 miles/Silver member 25,001 to 75,000 miles/Gold member over 75,000 miles) could take a long time to generate results. The measure also has no guarantees of increasing customer loyalty, therefore, prior to implementing all members should be surveyed and polling should be done from potential members.

Improving Classic Rewards'