Southwest Airlines
In today’s competitive market, consumers look to companies that not only provide outstanding service and goods, but also, a business that recognizes taking care of its employees, stockholders, consumers and the community as a priority. One company that is consistently recognized for their corporate social responsibility initiatives is Southwest Airlines. Southwest is a successful organization that perfectly blends operational focus with social obligations which translates into increased revenue and customer support. For several years, Southwest Airlines received recognition as one of the 100 Best Corporate Citizens by Corporate Responsibility Magazine (Corporate, 2015). Analyzing Southwest Airlines’ commitment to corporate social responsibility will demonstrate the keys to their long-term sustainability.
Southwest’s Corporate Social Responsibility
Southwest is a company with a strong reputation for valuing its employees and it is also gaining recognition as a conscientious steward of the environment. Its heightened awareness of social responsibility is evident in their continued domination of the airlines industry. According to Hughen, Lulseged, & Upton (2014), “Corporate Social Responsibility is a term used to describe an organization’s awareness of its operations’ impact on economic, social, environmental, and governance concerns, as well as the steps it takes to address them” (p. 57). Southwest achieves corporate social responsibility by focusing
Southwest Airlines is dedicated to incorporating all servant leadership principles throughout their organization. Accordingly, their mission statement is clear and concise it evidently exemplifies all principles and acknowledges a servant-led organization. Their mission statement embraces their commitment to serve the highest quality of customer service through a sense of warmth, friendliness, individual pride, and company spirit (Southwest, 2014). Therefore, through Southwest’s’ mission statement it makes it explicitly apparent that they seek to listen and commit to the growth of their people. Southwest empathizes with their employees because they are dedicated to providing
There are interesting facts that Southwest’s approaches to business are based on fun, trust, community, and family. For example, at Southwest, there is little cross training except for only two formal teams: the marketing and reservations department. This means that Southwest promotes mingling with the employees for informal networking and helping each other out, in spite of their job assignments. “Flight
Southwest Airlines’ triple bottom line consists of performance, people, and the planet. Corporate social responsibility reflects how the company 's reputation can be affected by the public 's perception and based on their perception, financial performance could be affected negatively or positively. Southwest is known for giving back to the environment, in 2013, more than 140 Southwest employees from across the country joined the All Hands Volunteers after a tornado in
Southwest Airlines has a very clear competitive advantage of keeping their customers happy. The organization has a clear focus on the employees they employ and the customers they service. The organization has very clear corporate values, that help engage the staff to get excited about their positions and serving customers. Instead of using words like trust, integrity, and customer service; Southwest encourages their employees to have “A Warrior Spirit,” “A servant’s heart,” and “A Fun Loving Attitude.” (Makovsky) Southwest has put a significant amount of time and energy into promoting employees from within, based on these attributes.
The domestic airline industry transports 711 million souls a year. That translates into a staggering $709 billion a year revenue flow (statista.com). One firm, named Southwest Airlines, accounts for 18.3 percent of that market. That 18.3 percent market share places Southwest at the number two spot, behind American Airlines. How does Southwest Airlines successfully compete and thrive in this environment? How do they differentiate themselves from the hoards of legacy carriers? Southwest Airlines encapsulates its strategy in a simple statement: “Meet customers’ short-haul travel needs at fares competitive with the cost of automobile travel (Grant, p.23). As a pioneer in low cost air travel, Southwest has successfully brought down airfares through its short route point-to-point business model, “no-frills” service, single flight strategy, and highly productive employees (Cederholm, 2014). In the following analysis we will investigate Southwest Airlines standing within the industry as a whole and their differentiation models driving success. We will also identify the firm’s competitive advantages as they relate to similar firms in the industry.
Southwest Airlines' strong organizational culture is reflected in its mission statement "dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest, 2012). Southwest serves not only as a prime example of a company that excels in customer service and profitability, but as one that has utilized employee development as a means to meet these ends. Southwest makes a strong commitment to foster ongoing relationships with human resources. They demand that their employees are responsible members, however
During the rapid globalization, being one of the topmost and sustainable airlines is not easy due to the highly competitive airlines industry. Southwest Airlines, founded by Rolling King, Herbert Kelleher, and Lamar Muse in 1967, is considered a very long history of success following its goal that emphasizes on customers’ satisfaction. The key of organizational success relies on human value of Southwest CEO, managers, and employees who try to help each other in order to reach the customers’ best service because these people are the major factors to justify their own images that represent their organization. Furthermore, Southwest has motivated its employees to be more creative and improvable by allowing suitable norms and
Southwest Airline’s mission statement is a demonstration that the company has a strong commitment to its employees. The company affords the same respect to its employees that is provided to its customers. The Southwest mission statement is unique in that it recognizes the importance of its employees within the broader business strategy, which emphasizes superb customer service and operational efficiency. The employees reciprocate the respect, loyalty and trust that Southwest demonstrates. Southwest employees are known for their loyalty, dedication, attitude and innovation. The employees are the distinguishing factor between Southwest airline and the rest of the airline
This ensures Southwest’s brand reputation, consumer confidence, and employee morale remains in tact. Currently, Southwest has a Supplier Diversity Commitment to guide ethical decision-making, as well as Diversity Council to ensure the greatest inclusion of all backgrounds in their recruitment efforts. Additionally, Southwest complies with financial ethics by filing properly with the Securities and Exchange Commission (SEC), with clear accounting practices outlines. Ethical initiatives that are needed to best align Southwest’s brand development, corporate strategy, and decision-making include the key topics of, health and safety and information technology protection from the National Business Ethics Survey of 2013 (The 5 Biggest Ethical Issues Facing Businesses,”
What is Southwest’s secret formula for success? The answer is simplicity! The airliner keeps it operation down-to-earth and consistent. This approach has kept its operational costs down which has allow them to maximize their assets and improve the expectations of their customers. This notion is reflected at the core of Southwest’s CEO and executives. The present CEO, Gary Kelly, still exemplifies the same business practices and ethics, as did the original founders. The airliner started and has continued the low-cost, no-frills, budget company way of thinking and leadership. Upper management positions remains limited but very well compensated for their loyalty and work. Southwest’s management relies heavily on positive relationships; shared goals, shared knowledge, and mutual respect among employees, managers, unions, and suppliers (Gittell, 2002). The company uses these business relationships to build the competitive advantage Southwest has in motivation, teamwork, and harmonization among all of its employees.
Since its creation in 1967, Southwest Airlines has established itself as a serious contender in the airline industry. The company grew from a small Texan company to a multimillion dollar airline giant over the past 50 years. Over the years, Southwest has seen continued growth and profit, and continues to outperform other airlines. “Sustained rapid growth has seen Southwest overtake rivals such as American and United to become the USA's top carrier of domestic passengers" stated Southwest Chief Executive Officer Gary Kelly.(Mutzabaugh, 2017). The company's success, however, can be attributed to many things, especially its organizational culture.
The type of corporate culture Southwest Airlines (Southwest) exhibits is a high-performance culture. According to Thompson et al. (2016) one of the traits of high-performance company is a “can-do” spirit (p. 351). Southwest’s can-do spirit derived from the company’s legal, regulatory, and competitive struggles during its formation, which was led by Herb Kelleher and supported by employees who were driven to assist the airline to succeed despite these oppositions and this attitude has endured within the company (Thompson & Gamble, 2014, p. C-344). This is supported by Colleen Barret’s, Southwest’s former president, comment that “The warrior mentality, the very fight to survive, is what created our culture” (Thompson & Gamble, 2014, p.C-344). This warrior mentality or “Warrior Spirit” is one of the elements of the company’s “Living the Southwest Way” which implores employees to work hard, desire to be the best, be courageous, display a sense of urgency, preserve, and innovate (Thompson & Gamble, 2014, p. C-366).
From 1972 to 2002, Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins, 2006, Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders Rollin King and Herb Kelleher to create a culture that was unique and ahead of its time: a people first culture. This culture is supported by Southwest 's human resource practices. Every aspect is dependant upon each
In my report I will briefly mention about the CSR of Emirates Airline, Firstly CSR is very important for every company these days to achieve success in sustainable society and to stay in humans mind.
The mission of Southwest Airlines is dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride, and company spirit. In 1967, SWA was incorporated and a proposal was submitted to the state to service the three largest cities in Texas, offering low fares, convenient schedules, and a "no-frills" approach that was completely contrary to the standards of the established airlines (Flynn, 2010). Based out of Dallas, Texas the airline proposal was completely a state matter because it was not prosing flying out of state and therefore did not fall under the regulatory tentacles of the Civil Aeronautics Board. After two years of state and federal court battles, the