Business Report on Qantas
Autor: Hong Phuong • January 12, 2016 • Business Plan • 630 Words (3 Pages) • 1,394 Views
BAE Business Report on Qantas
Student: Thi Hong Phuong BUI (Phoebe)
Student number: 35578
Class: BAE-6
Date of submission: 19/01/2016
Introduction:
Purpose: Evaluate Qantas in terms of ethical behavior/financial performance
Definition: Socially responsible investment – integrating social, environment of ethical criteria into financial investment decisions (Cowton and Sandberg 2012, p. 142)
Name and description of company:
- Qantas – Australia’s largest domestic and international airline. Registered originally as Queensland and Northern Territory Aerial Services Limited (QANTAS) (Qantas 2015a)
- Employed over 30,000 people with approximately 93 per cent of them based within Australia (Qantas 2015a)
- Earned $975 million in 2015 (Qantas 2015a)
Evaluation of ethical behavior:
Issue: Employee rights
Para 1:
- Qantas fined 15,500 for mistreating worker (Guest, 2012)
- The aircraft engineer worked excess hours and heavy tasks (Guest 2012, para. 9).
- He did not get additional payments (Guest 2012, para 9).
- Qantas broke workplace laws by attempting to coerce the worker into not exercising his workplace rights (Zillman 2012, para. 4).
Para 2:
- Qantas was fined $13,200 and Mr Cawthorne – manager was fined 2,200 (Guest 2012, para. 14)
- Qantas refused to be interviewed (Guest 2012)
- The fines sent a strong message to employers and to bullies in workplace (Guest 2012, para. 16)
- Bullying workplace is associated with worker mistreatment (Neumon and Baron 1998, cited in Leck and Galperin 2006)
- “Mistreatment is costly numerous ways to both the individual who feel mistreated and the organization” (Olson-Buchanan and Boswell 2009, p. 9)
- “Employee rights is one of the most important issue in the field of business ethics” (Rodwan 2000, p.1)
- It is an unethical behavior to employees.
Evaluation of financial performance:
Profitability
Location: Net profit of Qantas from 2000 to 2013 (Qantas annual report)
- Horizontal axis: years/ vertical axis: net profit in millions of dollars
[pic 1]
Figure 1: Qantas net profit from 2000 to 2013
- Main trends:
- 2000 net profit: $517.9 million
- A slight decrease in 2003: $350 million
- A remarkable increase: more than $675 million in 2005
- Downward trend – 2006: $392 million
- Highest point in 2008: $1,000 million
- Plummeted in 2009: $275 million
- Lowest point in 2012: -$300 million
- Growth back in 2013: $250 million
- Reason – GFC
- Plummeted - $275 million in 2009
- Slight rise - $300 million in 2011
- Reason
- A robust demand environment during the first three quarters of the year both domestic and international markets in 2008 (Qantas 2008a).
- 2012 dropped: higher fuel costs, excess capacity in domestic market, intense competition in international market (Qantas 2012a)
- A steady international improvement in its international business (Qantas 2013a, cited in Parker 2013).
- Limitation – just focus on profitability
- Overall – a good financial investment despite fluctuation
Recommendations:
- Breaking workplace laws – Unethical behavior
- Poor ethical performance - Qantas is not a wise choice
- Financial issue – fluctuation, profitability is not good enough.
References:
Annie Guest 2012, ‘Qantas fined $15,500 for mistreating worker’ , Australian Broadcast Channel (ABC), 15 August, viewed 22 December 2015.
< http://www.abc.net.au/news/2012-08-15/qantas-ruling-a-warning-to-bullies/4201296>
Christopher J. Cowton & Joakim Sandberg 2012, Encyclopedia of Applied Ethics (Second Edition), viewed 26 December 2015
< http://philpapers.org/rec/COWSRI
Joanne D. Leck and Bella L. Galperin 2006, Worker Responses to Bully Bosses, pp. 85-97, viewed 27 December 2015
Justin Parker 2013, ‘Qantas back in the black as international loss shrinks’ , Australian Broadcast Channel (ABC), 26 August, viewed 27 December 2015
< http://www.abc.net.au/news/2013-08-29/qantas-back-in-the-black-with-wafer-thin-profit/4920882>
John R. Rowan 2000,’ The Moral Foundation of Employee Rights’, Journal of Business Ethics, p. 1, viewed 27 December 2015
Qantas, 2000a, Annual Report 2000, viewed 26 December 2015
Qantas, 2008a, Annual Report 2008, viewed 26 December 2015
Qantas, 2012a, Annual Report 2012, viewed 26 December 2015
Qantas, 2013a, Annual Report 2013, viewed 26 December 2015
Stephanie Zillman 2012, ‘Qantas fined thousands for mistreating worker’ , HCOnline, 16 August, viewed 26 December 2015
< http://www.hcamag.com/hr-news/qantas-fined-thousands-for-mistreating-worker-142592.aspx>
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