FACULTY OF ECONOMY

AND MANAGEMENT

COURSE CODE : MGM 4136

COURSE NAME : ISU- ISU SEMASA PENGURUSAN
PROGRAM NAME : BBA EXEC (HM)
ASSIGNMENT : ASSESSMENT 3
TITLE OF ASSIGMENT : BUSINESS ETHICS AND INTEGRITY
DATE : 08 APRIL 2017

SUBMITTED BY:
MAGES RAO NARAYANA RAO EX03036
MASTURA ALIYAH BT ZULPAN EX 03037

LECTURER NAME:
PM.DR.NOOR AZMAN ALI
INTRODUCTION OF BUSINESS ETHICS AND INTEGRITY

Business ethics is the study of proper business policies and practices regarding potentially
controversial issues, such as corporate governance, insider trading, bribery,
discrimination, corporate social responsibility and fiduciary responsibilities. Law often
guides business ethics, while other times business ethics provide a basic framework
that businesses may choose to follow to gain public acceptance.

Business ethics ensure that a certain required level of trust exists between consumers and
various forms of market participants with businesses. For example, a portfolio manager must
give the same consideration to the portfolios of family members and small individual
investors. Such practices ensure that the public receives fair treatment.

The concept of business ethics arose in the 1960s as companies became more aware of a
rising consumer-based society that showed concerns regarding the environment, social causes
and corporate responsibility. Business ethics goes beyond just a moral code of right and
wrong; it attempts to reconcile what companies must do legally versus maintaining
a competitive advantage over other businesses. Firms display business ethics in several ways

Integrity is the qualifications of being honest and having strong moral principles; moral
uprightness. It is generally a personal choice to hold oneself to consistent moral and ethical
standards.
In ethics, integrity is regarded by many people as the honesty and truthfulness or accuracy of
one's actions. Integrity can stand in opposition to hypocrisy, in that judging with the
standards of integrity involves regarding internal consistency as a virtue, and suggests that
parties holding within themselves apparently conflicting values should account for the
discrepancy or alter their beliefs. The word integrity evolved from the Latin adjective integer,
meaning whole or complete. In this context, integrity is the inner sense of "wholeness"
deriving from qualities such as honesty and consistency of character. As such, one may judge
that others "have integrity" to the extent that they act according to the values, beliefs and
principles they claim to hold.
ISSUES OF ISSUE OF BUSINESS ETHICS IN MAS AIRLINES COMPANY

Malaysia Airlines have formal declarations of their codes of ethics. Usually, this can be
categorized under a series of topics such as conflict of interest, asset protection and
working together. Conflict of interest refers to those scenarios where employees or
company representatives have to decide between their interests to their employer or their
personal, investment, relationship obligations.

Ethics in the Malaysia Airlines Industry stems from the safety of passengers. Malaysia is
known as one of the safest airlines worldwide. Malaysia has developed their civilian airline
infrastructure along the regulations of the International Civil Aviation Organization
(ICAO). The ICAO is under the jurisdiction of the United Nations as the technical agency
for aviation. This was done with the aid of the US Federal Aviation Administration (FAA)
by way of the International Aviation Safety Assessment (IASA) program, whose purpose is
to bring about proper following of ICAO regulations for flight procedures, operations, and
maintenance. All around us, we see companies cutting corners to save money, sometimes at
the expense of our safety. Every day we see a car company installs a cheaper alternative in
a car that turns out to be incredibly dangerous. Scarily enough, this happens in the airlines
as well. As we all know, airplanes are very maintenance intensive modes of transportation.
Malaysia Airlines makes sure that the appropriate maintenance and inspections are being
done according to plan. In a recent case, Malaysia airlines officials will never let the planes
to take off without completing mandatory safety inspections.
Employees/ Union

Thousands of Malaysia Airlines workers are protesting about alliance with budget rival
AirAsia, warning the flag carrier would lose in the long run if it pulls out of the profitable
low-cost sector. AirAsia and Malaysia Airlines inked share swap agreement to end their long
rivalry and boost business. Under the deal, Malaysia Airlines will focus on the premium
market and give up low-cost routes to AirAsia. Malaysia Airlines Employees Union, says the
deal benefits only AirAsia. Over 80% of MAS staff will move over to the new airline
Sapphire that is to be set up under the new MAS-Air Asia deal. Malaysian Airlines System
Employees' Union (Maseu) is worried that the move could affect the strength of the unions
within the national carrier. It was reported that Sapphire would take over regional jet
operations from MAS and Firefly."The affected staff could lose their seniority as well as
other benefits tied to their length of service with MAS. Maseu will also be weakened by this
transfer. Malaysia Airlines employees have a lot of interest that do not seem to be addresses
by the company. However, efforts to educate employees about the importance of Airlines
have been made the Human Resources. The employees have several needs and some of these
needs are job security, better compensation, growth and advancement opportunities and many
other benefits

Harassment
Malaysian Airlines says passengers want 'young and pretty' stewardesses. The company said
that it had no intention of discriminating against women, Customers prefer to be served by
young, demure and pretty stewardesses, especially Asian ladies. The employees union has
begun a campaign against sex discrimination, pointing out that women must retire from
flying by the age of 45 if they are supervisors, and by the age of 40 otherwise 15 years
earlier than their male counterparts

Whistleblowers

Malaysia Airlines has introduce a whistleblower policy inviting employee to report

corruption, abuses of power, security risk and other bad practices to an independent
committee. This policy is being introduce to provide a safe and acceptable way for the
employee to raise their concerns about malpractice affecting MAS without fear or effect .It
allows to raise matter in independent and fair manner. Employee would not be ask to prove
their accusations and warned any attempt to react against victimize or threaten a
whistleblower making a good-faith reports is a serious violation and will be deal with
disciplinary action
Conclusion

Airlines must not be distracted by economic, regulatory, safety, environmental and other
external influences beyond managements control and must maintain a very important
customer relationships and brand management. Airlines have many consumer touch points
and each is an opportunity to reinforce brand value and loyalty. Often these opportunities are
squandered with irritating service, petty fuel, baggage or other surcharges that can make
airlines seem a distasteful commodity.

Marketing plays an important role in addressing the issues that have diminished brand
perception and in restoring a positive consumer experience. Marketers must understand
every stage of the customer journey and ensure that customers are engaged throughout.
There is a transformation underway in the business world as social media force
companies to reinvent the way they build brands. This has made brands more
participatory. The new brand is much more collaborative. Airlines need to build strong
brands and influence to compete in a much-changed environment. A new approach to
the challenges of the digital world Influence allows us to determine the most successful
strategies for brands in every channel. The customers have a right to be given quality
services, flexibility and also easy access to their various destinations. They need to be
safe and rest assured that the services received will be timely and that there is safety to
their luggage. It is important for Malaysia airlines to tailor and provide their services in
a way that customers heartily values are given a priority. The management team needs
to restructure the rewards program and at the same time put the customers needs first.

Shareholders need a promising return on their investment and they should be assured of
security and knowledge that Malaysia Airlines is working for their interests. All the
shareholders and investors have a right to be informed of the companys whereabouts for
instance when the company is facing difficulties, they should be informed and know the
strategies and measures taken to solve the mentioned problems.