Importance of Ethics and Csr in Ryanair

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The Importance of Ethics on Ryanair

Ryanair is featured in surveys frequently as being one of the weakest brands in European aviation. (CAPA, 2013) Ryanair’s public perception is often regarded as mean, money-grabbing and uncaring. In the past, Ryanair always behave unethically and ignore how important of ethics are to their reputation. However, over time, Ryanair's profile had become more unpleasant though there were countless scandals. For instance, Ryanair was fined by French court for more than 8 million euros (£6.7m) after proofing that it has actually broken local labor laws (BBC, 2013) The court discovered that Ryanair had acted illegally when it hired more than 120 staffs on Irish contracts at its former Marseille operating hub between 2007 and 2010. In 2005, Ryanair was fined £24,000 for misleading customers about the prices of the flights. (BBC, 2005) Decision was made by a jury at Chelmsford Crown Court which discovered that the Dublin-based firm was involved in six breaches of the Consumer Protection Act. According to Global Brand Simplicity Index conducted by Siegel+Gale (2014) Ryanair had named second-worst brand in the world for customer service. Siegel+Gale conducted a survey for more than 12,000 customers from eight countries to have such result. (Magrath, 2014) From above three examples can see that Ryanair is kind of giving their brand image and reputation. However, according to Ryanair Holdings PLC (2013) indicated that Ryanair has made a series of improvements in different ways. For examples, Ryanair has committed to fair dealing; they are not looking for competitive advantage through unethical or illegal business practice. Every employee or even director should strive to deal with customers, competitors and employees more fairly. It is forbidden to take unfair advantages of any businesses via concealment, manipulation, misrepresentation of facts, abuse of privileged information or any unfair dealing practice. (Ryanair Holdings PLC, 2013) Ryanair committed that all employees are forbidden to obtain, process, use or disclose confidential and private information of any third parties without appropriate authorization from the applicable third party. Employees must not use any illegal or unethical means of gathering data about competitors. (Ryanair Holdings PLC, 2013) Hopefully, the improvements of Ryanair made can rebuild a great and ethical brand image and reputation and change their past public perception.

The Importance of CSR on Ryanair

With the quick development of Ryanair, Corporate Social Responsibility has become a very important factor in determining the success of Ryanair. Corporate Social Responsibility refers to companies taking responsibility for their impact on society. (European Commission, 2011) Corporate Social Responsibility has taken its root very deeply in business management and customer value creation. In recent years, Ryanair has started working on CSR and they uses comprehensive CSR programs to build a distinct image among the competitors. (Researchomatic, 2014) For example, Ryanair invested on the new aircrafts that use the sustainable fuel in hope of providing more mileages. The company also invested in the technologies that fuel-efficient engines will only have 50 percent fewer emissions and burn 45 less fuel than long haul, flag-carrying airlines. (Hurriyet Daily News, 2007) One of the improvements for Ryanair is an increase in terms of green service provider Ryanair has actually made a lot of changes and its image and reputation still remain in a disadvantageous position, for many years Ryanair is always byword for the feverish acquisition of profit. Therefore, more CSR campaigns are expected to be hold and public perception will hopefully become better.

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