STAKEHOLDER THEORY IN THE UNITED AIRLINE CASE Essay Example
Stakeholder’s Theory in the United Airlines Case 2
STAKEHOLDER THEORY IN THE UNITED AIRLINE CASE
Stakeholder theory as one of the important core concepts in the socio-economic view of Corporate Social Responsibility (CSR) requires companies to consider benefits for all its stakeholders, such as customers and employees (Mujtaba & Cavico 2013, p. 68). In the United Airline case, apparently the company failed to balance the interests between customers and employees.
Stakeholder Theory in the United Airline Case
United Airline as a business has numerous social relationships and these relationships translate to obligations towards its stakeholders. Under the stakeholder theory, a business is required to ensure there is a balance of the interests of all stakeholders so as to benefit each and everyone (Mujtaba & Cavico 2013, p. 68). United Airlines as a business has to try to maximize its profits, but based on the stakeholder theory, it should always prioritize the benefits and rights of its stakeholder under all circumstances.
The key problems of the stakeholder theory are in identifying the stakeholders and their interests and how to actually balance those interests (Mujtaba & Cavico 2013, p. 62). This is the case of United Airlines, which forcefully dragged a customer off its plane just because it had to carry four extra crew members who were supposed to operate a different flight. By doing so, the airline failed to balance the interests between its customers and its employees.
Based on the business law, United Airlines had a duty to the customer since he had booked and paid in advance to travel in that particular plane and time. The stakeholder theory concurs with the rights theory which stipulates that all individuals or stakeholders in this case should have equal rights under all circumstances. Every stakeholder should be treated well not just because the business needs to make money, but because it is the right thing to do.
In brief, the carrier failed to fulfill its obligation to this particular customer when it forcefully evacuated him from their plane. In this case, they were liable for overbooking that flight and should have taken a more humane manner to address the problem on their end.
Mujtaba, B.G. and Cavico, F.J., 2013. Corporate social responsibility and sustainability model for global firms. Journal of Leadership, Accountability and Ethics, 10(1), pp.58-75.
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