In the developed business world we live in today, companies are using all possible approaches and tactics in order to outperform their competitors and be on the top of their industry’s hierarchy. However, different CEOs use various approaches to achieve it. And if they desire a positive outcome, they must comply with the public’s vision. Otherwise, too aggressive tactics may turn out to have the opposite effect. Vivid examples of the two possible options are John Mackey – Whole Foods’ CEO and Michael O’Leary – Ryanair’s CEO. While the former is mainly interested in stakeholders’ well-being, the latter is strictly profit-oriented. Considering the enormous scandals Ryanair is being а part of, we can clearly understand why ignoring customers,
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That forecast remains unchanged and in the late September the company recorded an 11% rise in post-tax earnings. (Moore, www.independent .co.uk) It means that the recent scandals had almost no effect on the company’s earnings and its overall performance. These results indicate only the short-term profitability. Such a tremendous damage on company’s reputation should ring the bell for all investors because it might lead to price drop of the stocks and losses in the long run. This potential damage should be a good incentive for the shareholders to constantly monitor the situation if they want their investments to be …show more content…
However, when we look at John Mackey’s approach to run the business, he considers all of the stakeholders while making important decisions. His leadership style is not aggressive, but empowering. Maybe this is the reason why Whole Foods’s name does not pop up in one’s head when it comes to unethical behavior. Unfortunately, the same does not apply to RyanAir. The company is associated with numerous scandals, and in order to stop this, the strategy should be changed. Mackey’s approach seems to be the reasonable to be adopted by Ryanair. If it happens, the overall image of the company might turn in the right direction in terms of ethical behavior. This would positively affect not only stakeholdetrs’ satisfaction, but also the profits and general reputation of the
That forecast remains unchanged and in the late September the company recorded an 11% rise in post-tax earnings. (Moore, www.independent .co.uk) It means that the recent scandals had almost no effect on the company’s earnings and its overall performance. These results indicate only the short-term profitability. Such a tremendous damage on company’s reputation should ring the bell for all investors because it might lead to price drop of the stocks and losses in the long run. This potential damage should be a good incentive for the shareholders to constantly monitor the situation if they want their investments to be …show more content…
However, when we look at John Mackey’s approach to run the business, he considers all of the stakeholders while making important decisions. His leadership style is not aggressive, but empowering. Maybe this is the reason why Whole Foods’s name does not pop up in one’s head when it comes to unethical behavior. Unfortunately, the same does not apply to RyanAir. The company is associated with numerous scandals, and in order to stop this, the strategy should be changed. Mackey’s approach seems to be the reasonable to be adopted by Ryanair. If it happens, the overall image of the company might turn in the right direction in terms of ethical behavior. This would positively affect not only stakeholdetrs’ satisfaction, but also the profits and general reputation of the