Globalization is very influential on all operations of an organization, especially in regard to communication. This is often because communication on a global scale requires more thorough and cohesive clarity in order to uphold a business that functions optimally. Globalization illustrates a number of challenges in relation to communication such as language barriers. In the case that language barriers are eliminated, misunderstandings or even conflict can occur as a result of cultural or ethical differences. Organizational communication directly contributes to the performance of a firm. As such, it is integral for globalized collectives to recognize the potential risks of poorly managed communication and address them in ways that are appropriate. Globalization can be seen as the fundamental factor that allows firms to facilitate effective and appropriate communications for widely diverse workforces. With constant progress in technological utilities, firms enjoy much easier access to tools and methods that remove obstructions, educate, and promote effective cross-cultural communication. This is another example of the extent to which globalization can influence organizational communication.
Participatory Leadership
In a highly globalized environment, a diverse workforce is likely to benefit from a participatory leadership approach. This leadership style promotes an increased democratic dimension instead of a hierarchical top-down system. This approach also observes employees as stakeholders within the firm and assures that they each have a unique voice that has value. The central focus of a participative leader is to empower employees, especially throughout decision-making processes. This is because this leadership approach recognizes that certain employees may be more affected by certain organizational changes and decisions and should have the opportunity to participate in the process of change. While value-based leadership is also beneficial, participatory leadership is more appropriate within a globalized setting as it prioritizes the values of the diverse workforce above organizational needs. Additionally, the more democratic and involved style allows for the discussion of issues, conflicts, miscommunication, and changes. As a result, employees within a globalized setting will be empowered to rely on their cultural and ethical values while experiencing the values of others as well as the integrity both leadership teams and colleagues have for their cultural background.
Southwest Airlines
The first organization selected is Southwest Airlines. Southwest has referred to participatory leadership in the past, such as during the 9/11 attacks during which the former CEO had made the decision to retain employees despite dropping profits. The corporate citizenship and social responsibility statement of the company can be divided into three categories including society, the environment, and firm governance. The company’s mission statement and core values express the need to connect people to what they find important in their lives while providing services that are reliable, low-cost, and friendly. The responsibility statement expresses the necessity to serve clients, employees, and communities within the social sphere. In terms of environmental concerns, Southwest aims to reach carbon neutrality by 2050 and proceed with a 10-year sustainability plan (Southwest, 2022). Southwest also supports a business model that upholds its corporate values which include a continuous and stable financial performance while providing clients with affordable prices. These values are also presented in their workplace culture and customer services which rely on globalized perspectives to function cohesively.
American Airlines
American Airlines is noticeably larger than Southwest but considers similar elements vital for corporate social responsibility. The firm offers an especially detailed and thorough approach to its environmental policies. The firm aims to improve carbon neutrality, include more evidence-based standards, and increase fuel efficiency. Similarly, the safety of passengers and employees is vital as American Airlines works to renew fleets and equipment at appropriate intervals (American Airlines, 2020). This is essential as American Airlines currently reports the largest fleet internationally in terms of plane units. American Airlines focuses on the improvement of its workforce through the promotion of diversity, equality, and inclusion. These values are upheld through activities such as training, retention, recruitment, and providing relevant support to employees. The firm also emphasizes the importance of stable growth and the maintenance of current operations. This is especially relevant with the effects of the pandemic on the market for air travel. Overall, American Airlines can be said to have an increased focus on environmental policies in relation to their corporate and social responsibility.
Differences in CSR
Both firms address the areas of social factors, the environment, and finance and governance. However, American Airlines has a more thorough and sustained focus on the effects the firm has on the environment. This is logical due to the size differences between the companies. Similarly, Southwest benefits and values positive interactions between the firm and employees, and customers. As such, their statements prioritize the ways in which both employees and customers can be better served. Both companies feature little greenwashing as much of their environmental policies are based on science-based changes and long-term suitability plans. As such, the firms reduce the promotion and sales of ‘green’ products and address environmental issues on a larger scale that is related to the fuel use of planes. Both firms address goals in regard to social responsibility but lack policies and ambitions in regard to social accountability. Having social accountability can benefit firms, especially in a globalized sphere, as they can implement guidelines when solving conflict or addressing any forms of failure to meet responsibility standards.
Global Perspective
Both firms operate within an internal market and therefore correlate with globalized values. While Southwest has a more substantial focus on promoting employee values, American Airlines implements policies to diversify its workforce. Both firms are able to utilize techniques that promote these changes while being considerate of a globalized setting. These include bias and inclusion training, achieving certification for equal pay, and advocacy for laws that promote equity and justice. While these firms operate mainly within the U.S, they rely on international client bases as well as employees that work at their destinations outside the U.S. As such, the firms aim to promote a higher quality of work throughout the countries in which they operate.
Recommended Leadership Style
A leadership approach that can greatly benefit a firm operating within a globalized space is situational leadership. Situational leadership aims to modify a leader’s behavior appropriately to the performance needs of employees and the firm. The style can be outlined in four distinct steps which include an analysis of an individual’s performance, the adaption of the leadership, communication with employers in regards to the performance needs, and an advance to higher performance. Due to the diverse and evolving nature of globalized collectives, this leadership style provides necessary advantages to increase communication and effectiveness. As such, the situational leadership style is appropriate for both firms.
References
American Airlines. (2020). Environmental, social and governance report: 2020 performance review. American Airlines.
Southwest. (2022).Corporate citizenship at Southwest. Southwest.