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Legal and Ethical Environment in Business: Corporate Social Responsibility and Whistle-Blowing

Overview of Social Corporate Responsibility in Etihad

The essence of corporate social responsibility is to ensure the ethicality and legality of actions carried out by business organizations, which should act in accordance with the ethical and legal standards. The implementation of corporate social responsibility must serve for increasing and contributing to social welfare. The main purpose of corporate responsibility is to enhance long-term profits through positive public relations, reducing the risks and negative consequences and taking responsibilities for all corporate actions. Furthermore, CSR strategies focus on the company’s initiatives that affect the stakeholders and environment, including employees, consumers, communities, and investors. The major approach to management should correspond with the purposes that are pursued by the community. In this respect, as a large airways company, Etihad should focus on the welfare of both its clients and employees to bring the maximum benefit to the community. It should also focus on long-term profits, which could be increased by operating from the CSR perspective. Critics focus on the unrealistic expectations, which emphasize the role of governments and powerful operations. The political sociologists are interested in regard to neo-liberalism and globalization and, therefore, the company should also take into consideration the external environment that is composed of cultural, economic, and political issues.

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Company’s Major Aspects of Social Corporate Responsibility

Etihad has its unique corporate social responsibility strategy that relies on the principle of working together to reach growth, profitability, green environment, and delivery of high-quality services. To address the issue, the company works on constant growth and reflects its economic contribution to the Abu Dhabi vision in 2030. It also reflects the welfare and development of the company’s employees from over 140 countries. Further, the company is committed to supporting and delivering the humanitarian aid along with charities all over the regions, in which the company’s subsidiaries are located. Finally, the company is also dedicated to minimizing the environmental influence of airways. It also recognizes the support of community involvement and charities, which can be managed transparently and ethically to adhere to the corporate governance requirements that are presented in accordance with the shareholder mandate.

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Main Perspectives of Company’s Whistle-Blowing Policy

On the one hand, the concept of corporate social responsibility requires the management of specific approaches such as transparency, communication, and healthy competition. On the other hand, the company’s manager should strike the balance between transparent reporting and whistleblowing because the latter can distort the internal relations and make employee afraid of the current trends in the communication and interrelation process. In the context of Etihad’s whistle-blowing policy, there are certain positive and negative outcomes of their initiatives. Specifically, Etihad is considered one of the airways companies, which permit the passengers to check-in their baggage before going to the airport (Flight Centre Travel Group, 2016). The company’s passengers have the possibility to check-in in different cities of the UAE up to 24 hours before the plane is departed. The passengers can also have their bags left at the facility and use most of their time travelling in the city. However, employees should be more loyal and tactic when it concerns the personal things of their clients. They should not reveal personal information to the third party. There should be healthy competition, which can support and strengthen communication and interaction in the company.

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Overall, Etihad Airways seeks to develop the best of Arabian openness and hospitality – which implies warm, considerate, and generous invitation – along with the development of the prestige and reputation of Abu Dhabi, being the centre of traditions and hospitality. The company’s goal is to develop a modern 21st century airline, which is constantly challenging and changing the traditions and norms of airline hospitality, which is also a part of a comprehensive CSR framework (Flight Centre Travel Group, 2016). The constant cooperation and collaboration within the company are a significant advantage that strengthens its ethical and legal framework and overall atmosphere. However, the external factors should also be taken into consideration to promote new standards of ethical growth (Flight Centre Travel Group, 2016). Hence, the company is dedicated to the strategy of collaborative development and growth for gaining the scale required for becoming competitive in the air transport market. Apart from the organic growth, the collaborative growth is also reached through the introduction of external partnership with other organizations.

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Hence, the external and internal initiatives of Etihad are approved, but their operations could not be developed due to the whistle-blowing initiatives. Therefore, there should be specific strategies that can provide freedom of communication within the employed environment. The clientele should also be free in their options and orders not to be afraid that the confidential information is revealed to the third party. At the same time, interaction and spread of information is the key to successful problem solving and decision-making.

At the same time, whistleblowing implies constant update of information about rivals and other competitors in the sphere of airways industry, which makes the company more aware of their gaps and pitfalls that could be eliminated. Due to the fact that the currently existing companies in the UAE are in the rigid competition, they still strive to grasp the first places in the world. Therefore, whistleblowing is among the strategies that can facilitate the process and enhance the communication due to the constantly incoming new information. Despite the rich passenger’s domestic market, the international market should become the first issue to be considered by the Arab airways (Dorsey, 2016). The cooperation with sports companies, for instance, could also become a valuable investment because it can attract more celebrities and sports teams to use the airlines for transportation. The task of the company, therefore, is to develop a globalized, culturally diverse culture, which could attract more employees all over the world and develop a new organizational environment in which trustful relationship are ensured.

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The idea of whistleblowing is not favorable for any company because it can distort the overall working environment. Therefore, the company should develop new strategies and frameworks, which could enhance their legal and ethical standards. In such a manner, they can also contribute to the company’s reputation and overall productivity and respectability. Furthermore, the organization should also provide new opportunities for employees to self-determine and advance their skills and knowledge. As soon as the training is ensured for employees, they will be more encouraged to invest in the company’s success.

In conclusion, it should be stated that the company should still be more concerned with the idea of corporate social responsibility initiatives, which should not be associated with whistleblowing. The analysis of these problems could rely on the development of new approaches and methods of understanding how Etihad Airline could sustain their competitive edge in the light of the rigid competition. Whistleblowing, therefore, is not the valuable solution in this situation because it contradicts the current ethical and legal standards and promotes unethical and limited perspectives for employees. To eliminate these trends, one should introduce alternative strategies and philosophy for employees to be more transparent and trustful in their endeavors. Employers should make everything possible to ensure career perspectives and favorable working environment for improving the overall climate within an organization.

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