Southwest Regulatory Issues

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In the business decisions needing to be made with regard to business ethics and regulatory issues, business sustainability and corporate culture can be impacted. For example, noncompliance with regulations set forth by the FAA for safety and security, and well as the FTC, can impact Southwest’s ability sustainably operate in their environment. This is so, legal ramification can be brought against Southwest that are costly. Also, consumer’s trust can be broken, brand image can be blemished, and employee’s sense of pride and trustworthiness can be fragmented. Thus, leading to a decrease in passengers, as air travel with Southwest is not a requirement or necessity. In addition to, a loss of positive employee morale, negatively influencing corporate culture, which is a competitive advantage Southwest has been able to cultivate over the last few decades. Ultimately, overshadowing the philanthropic work, as well as community involvement Southwest prides itself on. …show more content…
The basis for the penalty was inadequate repairs to Boeing 737 jetliners operated by Southwest, which went into service not in compliance. Repairs were to be conducted by Aviation Technical Services, Inc. (ATS), who were found to not have followed required procedures. However, Southwest was responsible for ensuring that the proper procedures were followed. In essence, “The airplanes were each operated on more than 20 passenger flights after Southwest Airlines became aware of the discrepancies but before the airline corrected the problem (“Press Release,” 2014).” Resulting was a wakeup call, that not only is Southwest responsible for themselves but, the individuals that they contract with. The sustainability of Southwest was negatively affected for a short time yet, was regained with establishing a comprehensive oversight and control directive for
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