Business Ethics: Etihad Airways Case Study Essay

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International labor laws prohibit making employment decisions regarding individuals’ age and disabilities. It means that Etihad Airways infringed on the existing regulations by introducing its approach to layoff. Considering the fact that social justice is a central demand for multinational corporations, Etihad’s conduct can be viewed as unethical and irrelevant. The more significant employee involvement in the decision-making process could have helped to avoid this situation. It directly influences performance and guarantees that fair decisions considering the workers’ input are made. Thus, Etihad attained success in compensating employees for their contribution and work. Payment processing is a critical factor influencing job security and employees’ motivation, meaning that this decision helps Etihad to generate benefits and rehire them in the future.

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From the case, one can also see that reduction in job security was a critical factor associated with the change process in Etihad. The decision to fire workers resulted in a lack of confidence among specialists and reduced their motivation and long-term plans in the corporation. For this reason, it is critical to secure employee positions to ensure individuals are engaged and fulfill their duties effectively. Discrimination was another factor peculiar to the change process at Etihad Airways. The corporation disregarded the corporate social responsibility issues, which resulted in the growth of dissatisfaction, lack of motivation, and engagement. It means that the company ignored possible alternatives that could have been used instead of its discriminative practices undermining job security and individuals’ readiness to work with such entities.

Altogether, the case shows that lack of employee involvement was one of the fundamental issues in the case. The company’s top management made changes with minimal employee involvement. It resulted in creating an unpopular and ineffective strategy that cultivated dissatisfaction among workers. Etihad Airways ignored employees’ need for self-actualization, decreasing their motivation. The remaining workers did not feel their importance to the corporation and the power to influence its development. It demonstrates that modern workers should be provided with the chance to participate in corporate decision-making to realize their significance and become motivated.

Trying to manage the wage bill, Etihad Airways accepted the wrong decision, viewing layoff as the only possible option. The choice of disability and age as criteria for decision-making infringed on the existing labor laws. Moreover, it undermined job security as employees realized their vulnerable position. Outcomes prove the low effectiveness of this strategy. Regarding the absence of available manpower, the remaining employees started to suffer from burnout because of the high level of stress. Moreover, the lack of motivation and engagement because of the processes mentioned above influenced their performance. As a result, Etihad Airways’ ability to achieve existing objectives was hindered. The case proves the critical importance of employee involvement in decision-making during the change process as it helps to motivate them and select the most acceptable options.

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IvyPanda. (2023) 'Business Ethics: Etihad Airways Case Study'. 8 January.

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IvyPanda. 2023. "Business Ethics: Etihad Airways Case Study." January 8, 2023. https://ivypanda.com/essays/business-ethics-etihad-airways-case-study/.

1. IvyPanda. "Business Ethics: Etihad Airways Case Study." January 8, 2023. https://ivypanda.com/essays/business-ethics-etihad-airways-case-study/.


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IvyPanda. "Business Ethics: Etihad Airways Case Study." January 8, 2023. https://ivypanda.com/essays/business-ethics-etihad-airways-case-study/.

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