Industry Appraisal Of Southwest Airlines Company

INDUSTRY APPRAISAL 1

Adnan Alrashdi

30 OCT 2017

INDUSTRY APPRAISAL OF SOUTHWEST

AIRLINES COMPANY

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Executive Summary

Information communication technologies have changed the way business operate in the current

global economy. Airlines for instance, have become more dependable on data, and thus there is a

need to invest in better information technology initiatives. The aviation industry keeps on coming

up with new ways to improve consumer experience, boost customer loyalty, empower passengers,

enhance connectivity among employees, customers, procurement officials and businesses.

However various benefits that might be enjoyed by the company (due to better integrated

information systems) maybe compromised by ethical issues directly associated with information

technology systems. Information technology ethics is increasingly becoming important due to

costs associated with unethical information technology conducts and the complexities associated

with information technology issues. This paper therefore aims to analyse various ethical issues that

directly affect information systems in aviation industry. The paper will further suggestion some of

the solutions that might be implemented in order to counter such issues.

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Table of Contents

Executive Summary ...................................................................................................................................... 2

1. Introduction ........................................................................................................................................... 4

1.1. Information Technology in Aviation industry .............................................................................. 5

1.2. The Current Problem ..................................................................................................................... 7

2. Ethical issues pertaining information technology in aviation industry ................................................. 8

2.1. Privacy Issues ................................................................................................................................ 9

2.2. Safety of Clients and Employees’ Information ........................................................................... 11

2.3. Information Integration ............................................................................................................... 12

3. Plan ..................................................................................................................................................... 13

3.1. Surveillance ................................................................................................................................. 13

3.2. The Company Obligations .......................................................................................................... 14

Conclusion .................................................................................................................................................. 14

Reference .................................................................................................................................................... 16

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1. Introduction

Ethics is a topic that has gained tremendous interest in information system researches.

Despite the growing importance to look more into ethical issues concerning information system

more needs to be done in order to add more onto existing literature. Over the past two decades

there has been an increase in use of computers and other information technologies to run businesses

all over the word. As more businesses invest in information technology innovations, the

availability and accessibility of large amount of sensitive data increases (Halawi & McCarthy

2013, p. 106). The rising significance of information technologies calls for a need to look into

ethical issues pertaining information systems within a company. This is because unethical

information technology conduct can adversely affect operations and financial position of a firm.

Due to significance of information knowledge to a firm, this paper addresses the issue of

information ethics in the aviation industry, using the case of Southwest Airlines (which is

headquartered in Dallas, Texas). The firm has an outstanding reputation in matters dealing with

information technology. The use of information systems in the aviation industry is crucial because

of the need for communication between the pilots and air traffic controllers. Moreover, information

within the aviation industry plays many roles— from proper function of the firm to the creation of

a sustainable competitive edge. The issues affecting the aviation industry include the receipt and

dissemination of information, the maintenance of data privacy and accurate record keeping (which

preserves the integrity of the required information) (Smith et al. 2011, p. 998). The aviation

industry faces numerous challenges during its operations because of its reliance on computer

systems to transmit information (Paek et al. 2013, p. 400). As this airline continuously becomes

flooded with new and current clients, it becomes obvious that the firm will need more sophisticated

information systems.

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To completely assess ethical issues concerning information technology, it is essential to

understand what information technology is all about and how firms (such as Southwest Airline)

benefits from information technology. Information technology, as described by Halawi and

McCarthy (2013, p. 107), is set of tools that deals with information and performance of tasks

relating to use, storage, transmission and manipulation of information within a firm. In most cases,

information technology is a term used collectively to refer to computer, computer networks,

telephones, televisions, and any other device that can be used to transmit information from one

recipient to another. Any technology that can be used to retrieve and store information qualifies to

be information technology (Khan 2013).

Based on the definition of information technology, it is evident that information technology

is an important component of any business’s operations and should only be used to benefit both

the firm and its clientele. An ethical issue concerning a company’s information system arises when

one party related to the company (whether inside or outside) engages in an action that adversely

affects another party related to the company (whether inside or outside) who is trying to pursue

their goals. (Halawi & McCarthy 2013, p. 108).

Due to the increasing use of computers and other information technology in our daily lives,

the ethics of information system is becoming an important issue that should be looked into. The

purpose of this paper is to examine ethical issues that affect information technology (particularly

in aviation industry) and how these issues can be addressed or controlled to prevent destroying a

firm’s reputation and making that firm face adverse financial obligations

1.1. Information Technology in Aviation industry

This papers investigates ethical issues directly connected to information system in the

aviation industry. Its aim is to assess the role of information technology in the aviation industry

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and identify strategies that can be adopted to counter ethical issues pertaining information

technology. Technology has expanded the aviation industry’s capacity and has brought about

different capabilities. Communication is one of the most important factors when it comes to air

transport and advancement in information technology furnishes communication capabilities

between the airport staff and clients (Law 2012).

Trends in technology impact all industries, and aviation industry is no exception. To stay

competitive in the airline market, firms must invest in information technology. Due to various

information technology trends in the aviation industry, proper information system should be

implemented to manage the large amounts of data accessible to the firm. The aviation industry is

an industry very dependent on data (compared to other industries). Without proper systems that

can be used to manage such large amount of data, the industry might find it difficult to stay survive.

Most of the services that are offered by the aviation industry can be accessed by clients through

the internet (Law 2012).

The aviation industry has also contributed to the globalization of the world’s economy. It

connects businesses and individuals all over the world. As airline becomes more competitive,

carriers have been able to add more capacity— especially in customer services and self-service

initiatives and s-Travel projects (Kelemen 2002, p. 48). Such trends enhance the connectivity

between passengers, airline employees, firms within the aviation industry, procurement

professional and networks (Law 2012). This connectivity enhances growth within the industry and

may boost loyalty among customers. In addition to more connectivity, innovations in information

technology empowers passengers. Such technology improves customers’ experience and may

improve their loyalty as a result. Another growing trend in information technology in the aviation

industry is tracking technology, sensors, and biometrics. Such devices are used for check-ins and

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baggage solutions. These devices were created with the intention of improving customers’

experience and enhance flight safety (Law, 2012). An increased use of such devices increases the

risk of data breaches and puts airlines at risk of losing data to cybercriminals. Firms in aviation

industry, therefore, need to invest in secure integrated networks (Kelemen, August, 2002 p. 48).

1.2. The Current Problem

Currently, society is based on information, and most people live and work within the

context of information technology. Airlines have been investing in proper information technology

systems since the 1950s. Airlines (compared to other industries) rely heavily on modern

information technology because of the low costs involved in obtaining information from their

clientele and their competitors as well as because running the firm’s operations largely relies on

dissemination of information. The evolution of the internet has forced airlines companies to

refocus most of their investments on information technology initiatives to heighten their

competitiveness (Buhalis 2003, p.8). The internet makes markets more competitive and as a result,

is considered to be a contributing factor in enhances market efficiency (Ater & Orlov 2012, p. 1).

Airlines safety is becoming a crucial and controversial issues that is at the interest of many

stakeholders within the aviation industry.

The number of customers serviced by Southwest Airlines has been increasing, which has

caused the amount of data in its system to reach unmanageable levels (Freedman 2017). For

instance, the company manages 31,000 pilots, desk clerks, and flight attendants— as well as

payments of $5.2 million a day from clients. The system used for storing the company’s data is

open to hackers and other unauthorized users, such as the September 11 attack (Freedman 2017).

Recently, the company spent more than $300 million to bring more sophisticated technology into

the airport operations. This adds to the money the firm had set aside to invest in a new reservation

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system. Up to that time, this was the biggest information technology update carried out by the

company. Due to the money involved in creating better information system, this paper aims to

provides solutions to information technology issues, such as surveillance and firewall protection—

through which Southwest Airlines can handle large amounts of data and avoid the infiltration of

its system, which would jeopardize the security of stakeholders’ information. The stakeholders

include customers, workers, business partners, and the authorities available.

All employees of Southwest Airline should consider honesty, integrity and personal

responsibility to constitute their primary code of conduct; untrustworthy information, as well as

careless handling of information, could lead to fraudulent activities that negatively affect the

parties involved. Southwest Airlines should develop a business model that enables communication,

feedback and surveillance—one that safeguards the information in the system. An information

ethics model has the advantage of gearing the efforts of individuals towards achieving the goals of

the company (Fallis 2007, p. 27). Despite data tracking, a superior model facilitates the movement

of information from one place to another. With specific reference to Southwest Airlines, customers

continuously report experiencing delays in having their concerns addressed and this paper

considers this situation to be as the result of a lack of ethics by company. Therefore, the business

model should ensure that more customer service representatives are hired in order to take prompt

action based on customer’s issues.

2. Ethical issues pertaining information technology in aviation

industry

Flying is the most widely used form of public transport all over the world (Kelemen 2002,

p. 45). Therefore, professionalism and ethics are critical factors in the aviation industry that should

be reviewed on a regular basis (Benton 1995, p. 22). The safety and success of any aviation firm

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depends on the professional and ethical conduct of its staff (Benton 1995, p. 23). It is therefore

evident that business decisions pertaining to ethical aspects of information system cannot be safely

assumed (Gutierrez 2004, p. 81). Due to the complexities and lack of universal standards relating

to ethical issues of information systems within the aviation industry, the Association for

Computing Machinery and the IEEE Computer Society developed general guidelines, formal

polies and rules regarding information system practices (Gutierrez 2004, p. 85). Information

should be protected because price information is crucial for the proper function of this market

(Ater & Orlov 2012, p.1). Due to the fact that most information technology adopted by firms

(including Southwest Airlines) revolves around the internet, the biggest challenges relating to

ethical issues in information systems are the swapping of data between firms and the safety of that

data (Gutierrez 2004, p. 86).

The internet technology within the aviation industry has been recognized as a significant

enabler for operation within this industry (Kelemen 2002, p. 46). How airlines use the internet is

likely to reveal how airlines view themselves (Kelemen 2002, p. 47). As more advancements

appear in information technology field, more sophisticated means of compromising data keep on

being invented. Every technology invention has its positives and its negatives on both the society

and the aviation industry (Mishra 2015, p. 67).

2.1. Privacy Issues

One of the issues that comes with technology advancement is privacy issues. Privacy

entails providing confidentiality to personal data possessed by the firm (Mishra, 2015 p.68). As

defined by (Warren & Brandies, December, 1980 p. 193) privacy “is the right to be let alone”. The

privacy of information is only possible if utilization, release, and transmission of information can

be controlled by the personnel in charge (Chung & Paynter, 2002). In terms of maintaining the

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privacy of information, Fallis (2007, p. 29) asserted that it is unethical for a business to invade

people’s privacy, such as by sending unauthorized promotional emails. Additionally, it is

unethical for a business to give contact information to a third party that was not involved in the

initial transaction. Every individual is entitled to his or her privacy and every company must

comply with procedures that consider ethical issues. Given that internet is a technology that has

been adopted by many airlines (including Southwest Airline) (Kelemen 2002, p. 46), the safety of

data obtained through the internet should be of concern to firms.

The internet is a global connection of networks that support exchange of data and

information between different organizations, individuals, and other institution (Mishra 2015, p.

68). The internet has been widely accepted as the best thing that was ever invented in the

information technology world; it has provided solutions to many of the issues affecting mankind

(Mishra 2015, p. 68). However, this technology can be an enemy to humankind— as well as firms

(Mishra 2015, p. 68). The internet has made it easier for ill-willed people to access information

that has been managed and stored by organization, individuals, and other institutions (Mishra, 2015

p. 68).

The internet has given rise to two kinds of privacy issues: (1) the posting and aggregation

of sensitive information on websites and (2) the monitoring of internet users (Brey, 2007 p. 32).

The chances of tracking internet users and obtaining sensitive information about them are

increased due to factors such as cookies, spyware, and web bugs. Furthermore, internet is an

inexpensive means through which information can obtained without clients or the firm’s consent

(Chung & Paynter, 2002). Therefore, every firm (including Southwest Airlines) should invest in

systems that assist in maintaining data integrity.

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A robust model that safeguards all stakeholders can strengthen an organisation and secure

its competitive advantage (Vourvachis et al. 2016, p. 37). Just like any other profession, personnel

within the information technology field follow a set of standards for their conduct, and they are

expected to adhere to these standards. Therefore, IT professionals within Southwest Airline are

expected to commit to: integrity, competence, professional responsibilities, work responsibilities,

and societal responsibilities (Woo 2017).

The rapid use of computers and other form of information technology continuously give

rise to more sophisticated means of obtaining information illegally (Mishra 2015, p. 68). A report

by Zadelhoff (2016) indicated that, no matter the scope of the breach, the majority of breaches are

caused by an individual inside the company (whether intentional or unintentional). Southwest

Airlines needs to ensure that their employees do not combine their personal business with their

work responsibilities because their misconduct could damage the business’s reputation. Staff

members should not use information obtained from their clients for their own personal use. The

company has regulations regarding conflicts of interests among its employees, and management

(Makovsky 2017).

2.2. Safety of Clients and Employees’ Information

The safety of clients and employees’ personal information is one of the ethical issues

airlines have had to deal with. Like firms in many other industries, the aviation industry generates

large amounts of data— including sensitive personal data (International Comparative Legal Guides

2017). Most of this data is collected online, and, if the input data is corrupted, the information

collected is bound to be compromised (Mishra 2015, p.68). The safety of such sensitive data

remains in jeopardy due to the accessibility of data mining tools. Cookies and web bugs are ways

through which safety of personal data can be compromised (Chung & Paynter 2002). Moreover,

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the increase use of computer and the internet has led to rise of various forms of cybercrimes, such

as identity theft and phishing (Chung & Paynter 2002).

2.3. Information Integration

Apart from privacy and safety issues, information integrity, is also an information ethics

issue that should be upheld by every staff member and clients in any industry. Information

integrity, as described by Mishra (2015 p. 68), entails providing information that is relevant,

complete, trustworthy, timely and up-to-date. Information integrity is all about honesty as well as

the assurance that information has not been altered or damaged by anyone. Concerns about

information integrity in the aviation industries are not new. This is a challenge that is faced by

firms on a daily basis. Information may be tampered with intentionally or unintentionally (through

mistakes) while gathering, giving and interpreting data (Lewis 2017). However, at times incorrect

information may also be recorded intentionally. Some people lie or manipulate such information

for their personal gains (Lewis, 2017).

In the aviation industry, for instance, information ethics involves pilots’ honest disclosure

of their health status— because unhealthy pilots could endanger the lives of airline passengers

(Klimas 2016, p. 94). According to Ho et al. (2017, p. 14), the most sensitive type of information

includes the health status of pilots and their ability to perform their tasks effectively. Different

occupations have various requirements, and the individuals performing the tasks must ensure that

they attain the highest qualifications to ensure that their performance involves professionalism.

Southwest Airlines uses private databases to store information about their employees. Tavani

(2011, p.34) recommends the use of cyber ethics, which is a part of applied ethics in organisations,

to monitor various operations, such as data storage and distribution. The process of storing this

information is also called data banking. Databases face threats from hackers and other spyware

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elements that attempt to enter systems illegally and obtain information. As a corporate priority,

Southwest Airlines needs to protect the medical histories of its employees.

3. Plan

It is evident that Southwest Airlines should invests in models that will help monitor the

conduct of its information technology personnel as well as track the transmission, use and storage

of data. As the aviation industry continues to make sizeable investments in information technology

system, the competitiveness of the aviation industry will, to a great extent, lean towards the

development, investment, and application of these technology. It is, therefore, essential to secure

them and protect the information that these systems manage, maintain and store. One of the means

of countering ethical issues pertaining to information technology in the aviation industry is through

surveillance.

3.1. Surveillance

Monitoring and security measures can be enhanced through surveillance. The state of

security in airports is crucial because of increased terrorist activities and the occurrence of other

dangerous events that threaten the public’s safety. The information ethics guidelines of Southwest

Airlines should include a model that ensures the welfare of individuals using its facility. Every

part of the company that is considered essential and that is open to possible infiltration by

unauthorized personnel should have some form of surveillance. Some studies, however, have

observed that increased surveillance can gradually diminish freedom and respect for privacy

(Bélanger &Crossler 2011). Tavani (2011, p.3) highlights the use of technology in cyberstalking

is an ethical problem because privacy and freedom are compromised.

A company’s security systems are essential for protecting against attacks of any nature.

For example, Southwest Airlines uses cameras to monitor entry and exit points at airport. It can be

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seen that the process of protecting property and customer’s lives relies on technological methods

and the provision of information.

3.2. The Company Obligations

Airline management has an obligation to ensure employees’ welfare by providing

equipment that facilitates a better working environment. Technology has played a central role in

such efforts. The provision of ground logistics, air logistics, and cockpit operations all require the

use of information technologies (Klimas 2016, p. 102). Negligence in this sector constitutes

unethical behaviour and can lead to breaches in safety. Southwest Airlines is obliged to prevent

physical harm or fatalities that result from the use of ineffective systems. Klimas (2016, p. 101)

explains that Southwest Airlines’ communication to its clients should encompass the safety

regulations upheld by the Federal Aviation Administration (FAA). These policies include the

genetic screening of pilots— even though such policies have been implemented under protest by

airlines stakeholders. Information ethics states that electronic monitoring of personnel in the

workplace allows for the effective handling and/or prevention of emergencies despite the possible

resistance from various stakeholders.

Conclusion

In conclusion, this paper indicates several essential aspects regarding information ethics

within the aviation industry setting. The information presented here requires further and review.

Like any other airline, Southwest Airline’s information, transport and telecommunication

initiatives have come a long way. Circumstances continues to change in the aviation industry due

to competition, increased capabilities. and expanded functioning. Additionally, the amount of data

handled by different types of airline companies (including Southwest Airline) calls for investments

in ways of dealing with ethical issues in information technology. Southwest Airlines’ code of

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conduct should uphold transparency— particularly when safety is in question. The requirement

for pilots to undergo genetic screening involves a number of ethical concerns, including pilots’

perceived threat of job discrimination. Moreover, it is important to consider the privacy of the

parties involved in the business process. Emails sent to clients without their consent constitute an

invasion of privacy and is an unethical practice. To avoid financial impacts associated with

information technology unethical conduct, Southwest Airlines, needs to take all these factors into

account when developing its information ethics model.

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