Using a contemporary business case study from the past four years, evaluate business practice against theory, considering how corporate social responsibility can be incorporated into the change process. 10 marks
Hi, recently did this 10 marker in a trial exam. This is my response. Hope it helps!
Qantas is a publicly listed company and in 2014, it recorded a $300 million loss. Alan Joyce, the CEO, has implemented a range of cost reduction strategies to rectify this issue. This includes introducing smaller aircrafts, re-routing plane routes to minimise fuel usage and reduce employee numbers. Alan may adhere to Lewin's three step change model when implementing this change and also has to consider the corporate social responsibility issues. CSR is how a business conducts in an environmental, sustainable, ethical and social manner that goes above and beyond legal obligations.
The first step in Lewin's three step model is unfreeze. Alan needs to break the status quo during this time. This includes challenging and altering daily operations such as in-flight services, customer service and the routes that the plane takes. Additionally, Alan must also inform and explain to stakeholders on why the change is necessary. For this instance, Alan could report to stakeholders that the change is vital for the survival of Qantas. During this time, employees are fearful and anxious as they may feel that the change may be unsuccessful or affect their job security. Alan has implemented a wage freeze to show that he is being ethical. Employees will then feel valued and motivated and thus embrace change.
The next step is change. This is a process of transitioning. During this time, Alan may implement and adopt the new practices such as reducing employee numbers and the re-routing of plane routes. To be ethically responsible and show CSR, Alan may provide outplacement services to employees that are made redundant. This involves providing job seeking assistance such as developing interview skills, being a good referee for the next business or provide further training. An advantage of this is, is that it creates a positive business reputation and image. Furthermore, employees will feel valued as Alan is going above and beyond legal obligations. A disadvantage however, is that it may damage and increase Qantas's expenses and may be timely. Providing training, counselling, and job seeking assistance may be costly which will further decrease Qantas's profits in the short-term.
The final step is refreeze. This is where Alan must make the newly implemented practices become the status quo. Alan may develop new policies, culture, job description or a rewards and recognition program to reinforce the change. To be environmentally sustainable, Alan should ensure that suppliers are sourcing renewable fuel. This renewable energy source will preserve natural resources for the future generations such as fossil fuels. An advantage is that it will paint and develop a positive image and reputation towards Qantas showing the general community that Alan cares about the welfare of future generations. A disadvantage is that it may be costly to source renewable fuel. This may put Qantas under financial pressure and decrease profits in the short-term.
Despite the costs and time involving the outplacement services and sourcing renewable fuel, the long-term gains outweigh them. In 2016-2017, Qantas has recorded a $1.5 billion profit and increase their market share by 4.5% indicating that Alan's strategies were successful.