Vietnam Airlines with Bussiness Ethics in Research & Develop

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  • Topic: Ethics, Tan Son Nhat International Airport, Vietnam Airlines
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  • Published : October 6, 2011
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VietNam Airlines with bussiness ethics in Research & Develop

Nguyen Le Phuong
International University
MBA03025

Abstract

When conducting business in VietNam, Vietnam Airlines (VNA) managers find that the codes of ethical play an important role in doing business. Some research from the recent collapses of business in the Maylasia, Indonesia and Vietnam shows that air service, national’s image and culture are key factors of airline business. There is many stories which have foundered in Vietnam, Malaysia and Indonesia. This paper shows how VNA shows ethical behavior, social responsibility in regards to the communities it operates in. This report is made on a master student who works for VNA. The results based on the writer’s knowledge and some published stories that involve to main discussion.

1 Introduction

The history of Vietnam Airlines dates back to January 1956, when the Vietnam Civil Aviation Department was established by the Government, marking the birth of the civil aviation industry in Vietnam. At that time, the fleet was small with only five aircraft of IL-14, AN-2, Aero-45… which started to serve domestic flights in September 1956. April 1993 was a major turning point when Vietnam Airlines was officially established as the country’s national flag carrier. On the 27th May 1996, Vietnam Airlines Corporation was born with the gathering of 20 aviation enterprises and the airline itself as the core business. On 20th October 2002, Vietnam Airlines introduced the new logo of the Golden Lotus.  For 15 years of development with an average annual growth rate of over 10 percent (except 1997 when the Asian financial crisis broke out), the national flag carrier has marked an obvious advance to become a major competitor in the Asian aviation market, owning a modern fleet of Airbus and Boeing planes flown by well trained professionals. In June 2010, Vietnam Airlines officially joined SkyTeam, the world’s second largest global airline alliance, affirming the carrier’s new position on the global aviation map and the strategic partner of the alliance in Southeast Asia region as well as its international standard services. Positioning its internationally recognized brand as a young and modern carrier, Vietnam Airlines excelled further when signing large purchase orders of world’s most modern, environment-friendly aircraft, such as Boeing B787 and Airbus A350-900. The airline is expected to reach 115 and 165 modern aircraft in 2015 and 2020. With respect to its stakeholders, VNA doing business in ethical and social responsible manner such as VNA’s statement “ bring culture to the world ”. In VNA, stakeholders include passenger, bussiness partners such as Tan Son Nhat Airport Ground Services (TIAGS), Vietnam Airlines Engineering Company (VAECO), Catering, employees, stockholders and communities.

2 Literature review

To understand how VNA acts ethically, we need to look at what ethics is. “ethics in business is simply the application of everyday moral or ethical norms to business”. ( Richard T. De George ). According to professor Philip V. Lewis from Abilene Christian University (USA), he defined a definition of “business ethics” as following: “ Business ethics is rules, standards, codes, or principles which provide guidelines for morally right behavior and truthfulness (of an organization) in specific situations”. If we followed the rules, standards, codes or principles, unethical behavior will be prevented. For VNA instance: if the labour law shows that employees do not allow to work over 48 hours per week in a dangerous environment, it could prevent employees work overtime and help employees have good health for working. Morally right behavior that conform to justice, law or another standard; individual actions in accord with fact, reason, or truth. Truthfulness conform to facts or that have the appearance of reality. The difficult part in business ethics is to define what is right or...
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