RESEARCH PART

1. Introduction

Qantas Airways is Australia's largest airline and has been linked with massive legal and ethical controversies; therefore, it is losing its reputation and eventually doubts its corporate governance and decision-making process. It has faced criticism over two major issues: the illegal sacking of almost 1,700 ground staff and the "ghost flights" scandal where Qantas was found to have operated flights with few or no passengers to retain valuable airport slots during the COVID-19 pandemic (The Economic Times, 2024). These not only point out the deficiencies in Qantas's operational & ethical strategies but also an opportunity for Qantas to rethink and reshape its practices. This research will analyze these issues through the concepts of organizational behavior, with particular emphasis on emotions, attitudes, stress, and decision-making. Recommendations for how these crucial issues can be resolved will be provided towards the end.

2. Organization & Issue/Opportunity

Qantas was founded in 1920, & since then it has always been felt as a source of pride by the Australians. After the recent controversies, there is a severe dent in this reputation. The illegal sacking of its ground staff during the pandemic has been cost-cutting-driven, but according to the Federal Court of Australia, the decision was unlawful since the intent was to blunt workers in the exercise of their right to industrial action. This decision resulted in not only potential compensation claims from the workers but also serious damage to employee morale and public perception.

Aside from the illegal terminations, Qantas recently received a $66 million fine for the "ghost flights" scandal. The company had flown the planes to retain lucrative airport slots because of the low demand during the pandemic. This only added another layer of controversy over the ethical implications of such actions and decision-making with regard to the company.

Supporting Evidence

The Federal Court ruling on the illegal sackings could lead to hundreds of millions of dollars in compensation claims. A $66 million fine over the "ghost flights" scandal, where planes were flown without passengers to retain landing slots, underlines further ethical lapses by the airline (Presse, 2024)

The Transport Workers Union-or TWU-delivers a heavy broadside against Qantas for undermining the rights of workers and giving precedence to profits over ethical considerations (TWU, 2024).

3. Application & analysis using course concepts

a. Emotions, Attitudes, & Stress

The illegal outsourcing & the "ghost flights" scandal has created a significant amount of negative emotion in Qantas employees & the public. Drawing on Affective Events Theory by Weiss & Cropanzano, 1996, events that are more emotionally important - like the illegal sackings - influence employees' work-related attitudes & behaviors. This sense of betrayal & injustice among workers can be related to increased stress, reduced job satisfaction, & lowered productivity (Press, 2024). Also, public perception about Qantas can continue to deteriorate areas of trust & brand loyalty, as further demonstrated in the "ghost flights" scandal.

b. Decision-Making

The decisions to outsource ground handling operations & conduct "ghost flights" during the pandemic reflect decisions taken with priorities of short-term financial gains rather than ethical long-term ones. The Rational Choice Model proposes that optimal decisions are derived through complete analysis of every possible outcome & consequences, considering the options, calculating the probability of a certain outcome, & then picking the highest option. Qantas's decision-making process appears to have been incomplete as the top leaders focused on cutting costs & maintaining the slot at all costs but failed to consider other potential consequences, namely ethical & legal consequences. This tunnel vision has now led to significant legal & financial ramifications; recently a $66-million fine, on top of the claims that are still being compensated (Parliament of Australia, 2024).

c. Organisational Ethics

Qantas' action raises serious aspersions on ethical conduct. To begin with, it has adopted outsourcing merely to prevent an industrial action in the first place, & its "ghost flights" squarely point to the fact that it does not believe in ethical standards & welfare of its employees (Sainsbury, 2023). The ethical theories, to begin with, deontological ethics put forth by Feess et al., (2022), emphasize duty as an imperative that ought to guide decision-making. Viewed from this prism, Qantas action is ethically improper because it prioritizes profit over welfare of employees & trust of shareholders & other stakeholders. Lack of adherence to the ethical grounds would, in the long run destroy the reputation of the organization, as well as stakeholder relationships.

d. Corporate Social Responsibility

The action which Qantas has indulged in the recent past has brought into question their commitment towards CSR. CSR involves companies taking responsibility for their impact on society. That includes ethical labour practices & stewardship of the environment. The fact Qantas commenced with illegal sacking of its employees & then resorted to running "ghost flights" is contrary to CSR principles; thus, it was a profit-driven decision rather than a socially responsible decision. This kind of situation does not only damage the company's brand reputation but stakeholder trust & loyalty too, which is highly important for long-term success (Ins Galhoz et al., 2024).

4. Recommendations

a. Regaining Trust & Morale: Qantas should embark on an all-embracing process of restoring confidence from the employees as well as the public at large. Specifically, this may be achieved through the introduction of honest dialogue with employees, giving more than legally required compensation, & finally making public statements of compliance with ethical standards of employment (Hughes, 2023). At this stage, it will seem like Qantas is actually worried about its employees' welfare & living standards based on ethical benchmarks, thereby restoring its bruised reputation.

b. Ethical Decision-Making

Qantas should review its decision-making procedures in the view to include ethics as an intrinsic part. This may include adopting ethical decision-making models, such as utilitarianism or deontology, within the company's corporate governance. This can help Qantas avoid controversies in the future & move towards sustainable & responsible business.

c. Improve Corporate Social Responsibility (CSR)

Qantas has to commit itself more to CSR through the formulation & implementation of effective policies of CSR with a focus on employee welfare, environmental sustainability, & ethical practices. For example, this may entail frequent auditing of its labor practices, investment in sustainable aviation technologies, & the hearing of concerns from various stakeholders. A sound CSR strategy could support Qantas in restoring its reputation & building long-term stakeholder trust (Hughes, 2023).

d. Legal & Financial Management

For the legal fall-out which would ensue, Qantas should be liaising with the workers that are affected & unions so whatever settlements are reached may be fair & on time. This can save further litigations in an attempt to show that this airline has atoned for the sins of the past (Press, 2024). Qantas also needs to go back to reassess its financial strategies as it executes them within the guide of what is ethical & legal to evade acts that may make it incur some penalties or fines in the future.

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