Irish Airline: Ryanair Essay

1645 words - 7 pages

Ryanair an Irish airline founded in 1985 has seen huge growth with workforce of just 25 to now over 9000 skilled professionals, branding themselves as Europe’s only ultra-low cost airline they are always looking for new ways too save on costs and increase on profits. This essay will draw upon, at what point they become ‘un-ethical’ i.e. the extra charges they add to the total bill e.g. a £160 charge for a name change in high season ( 2014,a), They have even been accused of carrying less emergency fuel to improve both fuel efficiency and competiveness (The Economist, 2013). Then justify what is morally right and wrong from the views of different ethical theories and stakeholders, in particular egoism and utilitarianism because these two theories will exhibit totally different views. Which will show different perspectives of a single action can be both ethical and un-ethical at the same time depending how you look at it.

Smith argues that there are two fundamental goals in nature in all life forms: “the preservation of the individual and the reproduction of the species” (Bragues, 2009, p. 453, para 2). Essentially the theory is based around the form of compulsive selfishness. This is similar to Michael Friedman’s approach to individualism because of the similarities between the self-interested motives of the egoist, and the legal obligation of a firm to produce the highest profits and shareholder wealth that it can, which is exactly what Ryanair are doing, adding extortionate charges for example a 2% charge to the total bill when using a credit card (, 2014, b). According to this theory Ryanair is acting ethically because they are composing a morally appealing result for society through the ‘invisible hand’ of the marketplace (Adam, 1793). A major criticism of egoism is the fact that it provides completely different approaches to life as being identical (Crane and Matten, 2010), for example a young professional partaking in the use of recreational drugs every evening is just as admirable as the young professional staying behind after work to keep ahead of his colleagues, providing they have followed their desire. As you can see this now creates this divide between initial desire and long-term interests i.e. health in the example I used, because its not in the long term health interests of the young professional to take recreational drugs, yet is an initial desire. This can be applied to Ryanair, because the extra charges they have in place initially giving them an increase in profits and bettering their margins, yet potentially damaging their brand for the future, having said that they are increasing their revenue year on year (, 2014). Ryanair haven’t just added additional charges, they had even drawn up plans for stand-only aircrafts to increase their margins even further; this fortunately this was not passed (Milmo, 2012).

Ryanairs approach to corporate social responsibility is one very much self indulged...

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