Essay About Evaluate Qantas And Business Report

Business Report on Qantas
BAE Business Report on QantasStudent: Thi Hong Phuong BUI (Phoebe)Student number: 35578Class: BAE-6Date of submission: 19/01/2016Introduction:Purpose: Evaluate Qantas in terms of ethical behavior/financial performanceDefinition: Socially responsible investment – integrating social, environment of ethical criteria into financial investment decisions (Cowton and Sandberg 2012, p. 142)Name and description of company:Qantas – Australia’s largest domestic and international airline. Registered originally as Queensland and Northern Territory Aerial Services Limited (QANTAS) (Qantas 2015a)Employed over  30,000 people with approximately 93 per cent of them based within Australia (Qantas 2015a)Earned $975 million in 2015 (Qantas 2015a)Evaluation of ethical behavior:Issue: Employee rightsPara 1:Qantas fined 15,500 for mistreating worker (Guest, 2012)The aircraft engineer worked excess hours and heavy tasks (Guest 2012, para. 9). He did not get additional payments (Guest 2012, para 9).Qantas broke workplace laws by attempting to coerce the worker into not exercising his workplace rights (Zillman 2012, para. 4).Para 2:Qantas was fined $13,200 and Mr Cawthorne – manager was fined 2,200 (Guest 2012, para. 14)Qantas refused to be interviewed (Guest 2012)The fines sent a strong message to employers and to bullies in workplace (Guest 2012, para. 16)Bullying workplace is associated with worker mistreatment (Neumon and Baron 1998, cited in Leck and Galperin 2006)“Mistreatment is costly numerous ways to both the individual who feel mistreated and the organization” (Olson-Buchanan and Boswell 2009, p. 9)“Employee rights is one of the most important issue in the field of business ethics” (Rodwan 2000, p.1)It is an unethical behavior to employees.Evaluation of financial performance: ProfitabilityLocation: Net profit of Qantas from 2000 to 2013 (Qantas annual report)Horizontal axis: years/ vertical axis: net profit in millions of dollars[pic 1]Figure 1:  Qantas net profit from 2000 to 2013Main trends:2000 net profit: $517.9 millionA slight decrease in 2003: $350 millionA remarkable increase: more than $675 million in 2005Downward trend – 2006: $392 millionHighest point in 2008: $1,000 millionPlummeted in 2009: $275 millionLowest point in 2012: -$300 millionGrowth back in 2013: $250 millionReason – GFCPlummeted  – $275 million in 2009Slight rise – $300 million in 2011ReasonA robust demand environment during the first three quarters of the year both domestic and international markets in 2008 (Qantas 2008a).2012 dropped: higher fuel costs, excess capacity in domestic market, intense competition in international market (Qantas 2012a)A steady international improvement in its international business (Qantas 2013a, cited in Parker 2013).Limitation – just focus on profitabilityOverall – a good financial investment despite fluctuationRecommendations:Breaking workplace laws – Unethical behavior Poor ethical performance – Qantas is not a wise choice Financial issue – fluctuation, profitability is not good enough.References:Annie Guest 2012, ‘Qantas fined $15,500 for mistreating  worker’ , Australian Broadcast Channel (ABC), 15 August, viewed 22 December 2015.        <