Corporate Strategy and Social Responsibility, Essay Example

Introduction

Corporate Social Responsibility (CSR) represents an opportunity for organizations to reflect upon their core values and to recognize the importance of different approaches to providing customers and the surrounding environment with resources and tools to promote change and progress. It is imperative that organizations demonstrate their core values and their ability to impact society in a positive manner. The practice of CSR is critical to the success of organizations and their ability to be successful in influencing outcomes for employees and customers. The organization must exercise sound and reasonable ethical approaches in order to ensure that its business practices are appropriate and are in consideration of customer and employee needs. Southwest Airlines is a successful organization with a strong reputation in CSR, which has enabled the company to experience great success as an airline that stands out from the rest. The following discussion will address the significance of CSR to Southwest Airlines its impact on customer service and general operations throughout the organization. Using the teachings of Porter and Kramer, the business will be examined in an effort to determine its continued viability and customer service acumen in a highly competitive marketplace.

Analysis

Southwest Airlines supports its mission and core values through its approach to customer service, which recognizes the importance of convenience, value, low-cost travel to accommodate customer needs and meet their expectations (CRS Report Final Presentation). This is an important discovery that has a significant impact on organizational operations and impacts customers in many positive ways. The organization is grounded in its ability to extend its core values to its customers through the delivery of high quality customer service, affordable flights with many options, and pride in the work that is performed (CSR Report Final Presentation). Southwest Airlines supports its primary mission through the activities that it supports at all levels of the organization and also influences the organizational culture and the employees that work for the business at all levels.

In using Porter and Kramer’s beliefs regarding CSR, it is important to recognize how Southwest Airlines makes the grade or performs below the desired expectations with its current strategy. First and foremost, CSR is of critical importance because it reflects the values of the organization, its moral and ethical responsibility to its customers, employees, and stakeholders, and its ability to give back to local communities (Porter and Kramer, 2009). In this context, Southwest Airlines has established a strong level of CSR through its commitment to its customers, the relaxed approach to the corporate culture and work environment, and its obligation to its shareholders (CSR Report Final Presentation). Perhaps the key to success for Southwest Airlines is its relaxed and no frills atmosphere, which has provided the company with many opportunities for continued growth and success as customers recognize the value of this approach and its impact on their own experiences with air travel. Furthermore, the company’s perspective regarding ticketing, boarding, and seating are also successful contributors to its overall profitability and its ability to give back to the community in a positive manner (Werther and Chandler, 2010). This perspective supports the continued expansion of the Southwest strategy to attract new customers who have become increasingly weary of the obstacles and challenges of air travel in the modern era (Werther and Chandler, 2010). For these customers, Southwest is a welcome change.

Although Southwest Airlines is particularly successful in its CSR efforts to date, there is always room for improvement, particularly in the area of innovation and its relationship to value (Porter and Kramer, 2009). From this perspective, it appears that Southwest may be lagging in its efforts to be successful because the company’s business model is rather simplistic and straightforward, thereby leading to a number of weaknesses that are reflected in the organization’s lack of bells and whistles. However, it remains popular and attractive to many customers because they are not always seeking frills and extras; some customers simply want to arrive at their destinations safely, without delays, and without excess inconveniences. It is important for the organization to focus on its core strengths and to minimize its weaknesses by attracting a large and diverse customer base to overcome the potential loss of customers who might otherwise prefer an airline with elaborate service offerings.

Southwest Airlines continues to support its value chain through its efforts to support its mission using its “warrior spirit” as a guide (Kelly, 2008). The organization continues to strive in its efforts to produce effective outcomes through value generation and an unwavering commitment to customer service (Kelly, 2008). These key principles of CSR are reflected in the organization’s ability to exercise effectiveness in all areas of operations, from ticketing and boarding to the in-flight experience and piloting, all of which require employee adherence to the corporate culture and superior customer service (Kelly, 2008). Each of these areas represents a means of expanding knowledge and supporting the direction of the organization for the foreseeable future as a profitable and value-driven firm (Kelly, 2008).

Southwest Airlines continues to demonstrate its dedication to the success of the firm and its employees through its value chain, which serves as a key component of its competitive advantage. In recent years, however, Southwest has experienced a number of critical communication challenges in the form of its merger with AirTran Airways and the continued increase in fuel prices, both of which threaten the integrity of its current business model and value chain proposition (Ressner, 2012). These issues are critical to the continued success of Southwest Airlines and therefore, must demonstrate the importance of maintaining superior customer service in spite of these challenges (Ressner, 2012). From this perspective, Southwest Airlines requires an effective understanding of its own obstacles so that any required changes do not reflect poorly on its CSR to its customers, employees, stakeholders, and communities (Ressner, 2012).

Southwest Airlines must continue to explore its options with respect to sustaining an acceptable level of CSR so that its employees and customers are satisfied with the direction of the firm and its operations. One of the key advantages for the organization is its focus on the relationships between managers and employees, which demonstrate a mutual understanding of core values and principles that are instrumental in executing the value-driven business model (Corporate Excellence, 2011). In this context, managers encourage employee contributions and feedback regarding business operations in order to make the necessary improvements (Corporate Excellence, 2011). These practices facilitate a positive corporate culture and reflect a means of expanding knowledge regarding the future direction of the firm (Corporate Excellence, 2011).

Through low-cost flight alternatives, Southwest has set itself apart from the competition in many ways and set the standard for other airlines to follow suit (University of Exeter). Furthermore, the concept of servant-leadership must be considered because Southwest has successfully used this strategy to motivate its employees and improve customer satisfaction rates (Kincaid, 2012). These efforts have been instrumental in supporting the company’s approach to CSR and its ability to achieve great success and a longstanding reputation within the industry and beyond (Kincaid, 2012). When employees are motivated on the job to perform to their maximum potential, the organization where they are employed plays a role in this process through its commitment to excellence and dedication to its workforce (Kincaid, 2012).

Southwest Airlines continues to achieve great success in its efforts to deliver quality customer service and affordable fares to its customers. Furthermore, the organization has adopted a unique organizational culture that is flexible in nature and is dedicated to providing maximum support for surrounding communities (Chapter 7). These contributions are essential to the delivery of high quality yet no frills service to a vast customer base that is appreciative of the conveniences that Southwest provides (Chapter 7). Under these conditions, Southwest continues to exercise sound and reasonable judgment in its guiding principles and in its efforts to sustain successful CSR in the communities that are served. Furthermore, employee satisfaction rates also support these dimensions and enable managers and other leaders within the firm to realize its greater potential through the eyes of its employees.

Conclusion

Southwest Airlines holds a strong reputation within the airline industry for its excellence in customer service and its corporate culture. These contributions are critical to the overall success of the organization and its efforts to provide superior value for the money. Southwest may struggle in some areas because of its level of simplicity and limited attention to detail; however, the company more than makes up for its weaknesses in its ability to offer a unique and satisfying corporate culture and a strong level of attention to its customers. These efforts are critical in enabling Southwest Airlines to exercise sound and reasonable CSR in many areas of business practice. This also reflects the importance of new opportunities for growth in the future, as the company attempts to maintain a steady stream of growth in spite of challenges in the form of mergers and fuel costs. Southwest Airlines must remain undeterred and must continue to focus its efforts to be a successful provider to its customers and to expand relationships between managers and employees in order to ensure that the organization’s value proposition and growth model are satisfied.

References

Chapter 7: Organizational factors: the role of ethical culture and relationships. Retrieved from http://cengagesites.com/academic/assets/sites/3903_9781439052242_ch7.pdf

Corporate Excellence (2011). Reputation: Southwest: the quality management and a good customer service focused on the employees. 1-4.

Kelly, G. (2008). Southwest cares: doing the right thing. Retrieved from http://www.southwest.com/assets/pdfs/corporate-commitments/southwestcares.pdf

Kincaid, M. (2012). Building corporate social responsibility through servant leadership.  International Journal of Leadership Studies, 7(2), 151-171.

Porter, M.E., and Kramer, M.R (2009). Strategy & Society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, May 2009, 78-92.

Ressner, R. (2012). A comprehensive communication plan for Southwest Airlines. Retrieved from http://rachelressner.files.wordpress.com/2012/02/southwest.pdf

University of Exeter. Corporate social responsibility among low-fares airlines: current practices and future trends. Retrieved from http://www.exeter.ac.uk/media/universityofexeter/centreforsportleisureandtourism/pdf/CSR_and_LFAs_Current_Practices-Future_Trends_Dbl_Side.pdf

Werther, W.B., and Chandler, D. (2010). Strategic corporate social responsibility: stakeholders in a global environment. Sage.