Controversy
United Airlines |
United Airline, Inc. is one of the
world’s largest airlines providing customers with domestic and international
flights all around the world. In the past, the company has made quite a lengthy
list of horrible headlines like the one where two teenagers weren't allowed to board a flight because they were wearing leggings as bottoms. The most recent incident that left United under
scrutiny was in April of 2017, when a man was dragged off an overbooked flight,
beaten up and bloody. Dr. Dao, a passenger, boarded his flight and was seated
when the flight announced that it was overbooked. They asked passengers to
volunteer to give up their seats for some of the four extra crew members that
needed to board that flight. When no one volunteered, they randomly selected
Dr. Dao and his wife as some of the passengers that were going to be removed. Removing passengers from flights due to overbooking is legal in
the United States, but the problem was how they removed the man off the flight
and handled the situation after the news made headlines.
When Dao refused to get off the
flight after crew members asked him and his wife to give up their seats,
security enforcement was called in to try to escort him off the plane and
that’s when things went south. After he still refused to get off the flight, saying he was a doctor and had to make the flight back home to get to work the
next day to see his patients, the security officers forcibly dragged him off the plane. Video
footage taken by other passengers showed the horrific incident resulting in Dao losing his two front teeth, getting a concussion, a broken nose, and other
injuries. The footage taken of him being dragged off the plane went viral, sparking outraged complaints from thousands of people. To only make things
worse, the CEO of United, Oscar Munoz, released a statement about the
altercation that was insensitive and didn’t offer a sincere apology to Dao or anyone about how the employees handled the situation. He later then sent
out an email defending and praising the employees for how they handled the
situation, calling Dao “disruptive and
belligerent”. (Shen)
Stakeholders
United's stock activity after Dr. Dao's incident went viral. |
There were many stakeholders
affected by how United Airlines handled the entire situation. First off,
shareholders were affected when the news of the story went viral. People
boycotted United and it brought so much bad press that United lost $1.4 billion
in shares the day after the video was posted and went viral. That didn’t last
long though since United’s share surprisingly slightly increased in the
following month since investors decided to join in and buy the extra stock
because they were expecting United to do better as a company after the
incident. The shareholders that left United were affected because they not only
were upset with the treatment towards customers but many didn’t think the
company would do well with these reoccurring negative headlines they were
receiving. Consumers who previously flew, were going to fly, or wanted to fly
with United were outraged and disappointed with the airline. The airline was
mercilessly mocked on social media. It brought fear to people who booked
flights, fearing a similar situation could happen to them. United employees
were also affected. Passengers on the flight called out and harassed the flight
crew that had taken the seats of the removed passengers blaming them for what
had happened. Though what happened wasn’t their fault, it still affected them
because they had to board an awkward and tense flight. Everyone on the flight
that witnessed the violent incident were also affected. Kids were crying and
people were traumatized. Dao was another but certainly the most important
stakeholder affected by this incident. He was disrespected by the airlines
employees including the CEO. He was violently removed from the flight,
physically harmed, humiliated, and fears he can no longer do his job as a
doctor due to the brain damage caused by the physical abuse. Dao said that
since that day, no one from the United company had tried to communicate with
him and offer any apology to him. His lawyer was the only one who spoke to
anyone from the company. The CEO, Oscar Munoz was also affected by the story.
This brought an incredible amount of bad publicity to him and his company. The
PR team took a hard hit and had to work and find a way to help bring a positive
image back to United. They did make a few changes on their policies and how
they would handle overbooked flights. Dao agreed to an undisclosed
settlement with United Airlines.
Individualism
As defined in the in-progress book, The Case Manual by Professor Heather
Salazar, Individualism states that “Business actions should maximize profits
for owners of a business, but do so within the law.” (Salazar, Pg. 17) An
individualist may view this case and say United acted unethically and should’ve done the complete
opposite of what was done in order to maximize profits for the business. An
individualist would say that the security enforcement should’ve escorted the
man without forcefully dragging him off the flight. A more calm and respectful
approach should’ve been used to get him to get off the plane. If he was still
dragged off the flight, CEO Oscar Munoz still could’ve avoided a total PR
nightmare by releasing a very sincere apology to Dao, his wife, and to
everyone else involved in that situation. He should’ve also contacted Dao
himself to apologize and figure out what happened and find a way to make right
of what had happened. This could have helped United not further destroy their
reputation and help keep their shares from dropping and losing potential
profits for the company since the point of individualism is to help maximize
profits.
Utilitarianism
Dr. Dao being dragged off his flight by airport security. |
Utilitarian’s would have a slightly
different approach to this case study. They would deem United's actions as ethically wrong. As defined in The Case Manual, utilitarianism follows the rule that
"Business actions should aim to maximize the happiness in the long run for
all conscious beings that are affected by the business action." (Salazar, Pg.
17) In order for everyone on the flight to be happy, including Dao and the
four extra crew members, United wouldn't kick anyone off the flight. For that
to happen, the airline would make sure in advance that they didn't overbook the
flight in case extra passengers had to be boarded. If nobody had to be kicked
off the flight then Dao would remain on the plane and make it to his
destination. The entire incident would be completely avoided, not causing the
company to lose any shares. This would keep United, their employees, and their
customers happy which is the main goal of Utilitarianism.
Kantianism
The
Case Manual describes kantianism’s ethical rules as "Always act in
ways that respect and honor individuals and their choices. Don't lie, cheat, or
manipulate or harm others to get your way. Rather, use informed and rational
consent from all parties." (Salazar, Pg. 17) A Kantian would say that
United was unethical, violated almost every rule in that definition, and didn’t follow the
formula of humanity. First off, the company did not honor or respect Dao's
choice to stay on the flight. The security officers harmed Dao to get their
way which was an open seat for the extra flight crew. They didn't use Dao's
rational consent to get him off the plane. What a Kantian could recommend that
the security could've done is talk to Dao with respect. They should've
asked him why he didn't want to get off the flight and offer to find him an
alternate solution to get back home in time for his next day of work. They
could've explained that with the $800 voucher they offered him if he had got
off that flight, he could've went and tried to book a flight from a different
airline to get to his destination. They also could've offered him more money on
the voucher or randomly select another passenger to ask to depart the
flight.
Virtue Theory
Photo of Dr. Dao's injuries taken by another passenger. |
As described in The Case Manual, Virtue Theory follows the rule, "Act so as to embody a variety of virtuous or good character traits and so as to avoid vicious or bad character traits." (Salazar, Pg. 17) A virtue theorist would state that United acted unethically in this situation. There are many virtuous traits but there are four traits in particular that virtue theory emphasizes which are courage, honesty, temperance, and justice. For this specific situation, a theorist could recommend that the aggressive security enforcement would have had to adapt the trait of temperance when dealing with Dao's refusal to get off the plane. This trait would've helped them remain calm and restrain themselves from using brute force on Dao. The security team should've calmly approached Dao and talked to him with honesty, explaining that he was going to have to get off the flight regardless, even if he fought against it but they were going to help him find another way home and were going to reimburse him for his ticket. The CEO of United, Oscar Munoz could've also stopped a lot of the extra bad reputation by having the courage to publicly announce where the airline went wrong and give Dao justice by apologizing to him and offering him a settlement for his damages as soon as this incident was known. Oscar Munoz would've also avoided sending out the email bashing Dao and praising his employee’s actions for how they handled the situation. If all the company employees involved had more temperance, sincerity, and empathy, then maybe Dao would’ve understood why he needed to depart the plane and comply with the airline.
Works Cited
Disparte, Dante.
“United Airlines and Reputation Risk.” The Huffington Post,
TheHuffingtonPost.com, 12 Apr. 2017, www.huffingtonpost.com/entry/united-airlines-and-reputation-risk_us_58eda924e4b0ea028d568e26.
McCarthy, Sky.
“United Passenger Dragged off Flight Settles with Airline for Undisclosed
Amount.” Fox News, FOX News Network, 27 Apr. 2017, www.foxnews.com/travel/2017/04/27/dragged-united-passenger-settles-with-airline-for-undisclosed-amount.html.
Reklaitis,
Victor. “United's Stock Falls 1.1%, Wipes out $255 Million off the Airline's
Market Cap.” MarketWatch, 12 Apr. 2017,
www.marketwatch.com/story/uniteds-stock-is-set-to-fall-5-and-wipe-1-billion-off-the-airlines-market-cap-2017-04-11.
Shen, Lucinda.
“United Airlines Stock Drops $1.4 Billion After Passenger-Removal
Controversy.” United Airlines: Stock Drops Following Passenger Incident in
Chicago | Fortune.com, Fortune, 11 Apr. 2017,
fortune.com/2017/04/11/united-airlines-stock-drop/.
Shen, Lucinda.
“United Airlines' Stock Has Recovered After a Doctor Was Dragged Off a
Plane.” Fortune, 12 Apr. 2017,
fortune.com/2017/04/12/united-airlines-stock/.
Zdanowicz,
Christina, and Emanuella Grinberg. “Passenger Dragged off Overbooked United
Flight.” CNN, Cable News Network, 11 Apr. 2017, www.cnn.com/2017/04/10/travel/passenger-removed-united-flight-trnd/index.html.
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