The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Showing posts with label Southwest Airlines. Show all posts
Showing posts with label Southwest Airlines. Show all posts

Monday, May 4, 2020

Strategic CSR - Disney

The article in the url below says something interesting about our society. At least, it says something about Disney, the company, and the place it holds in people's minds (and hearts):
 
"At 7:30 in the morning on a recent Saturday, 14 people gathered on the 10th floor of Disney's Riviera Resort in Orlando, Fla. … These 14 adults — a mix of stay-at-home moms, young professionals without children and middle-aged parents from across the country — aren't just Disney fans. They are now considered experts."
 
They are experts because they had been selected and trained for part-time jobs helping holidayers plan their vacations with Disney. But, they are not only experts – these people are serious fans. Given the current shut-down of, essentially, the whole vacation industry, Disney will need fans like this when everything starts back up again:
 
"During breakfast, Mickey Mouse walked into the restaurant and most members of the group rushed to give him a hug and take photos. When Minnie Mouse arrived, others got up, complimented her dress, hugged her and asked for pictures. Group shots, selfies and posed photos were all taken. By 8:15 a.m., when Donald and Daisy Duck arrived, the panelists were too excited to contain themselves — they clapped and danced to the music as the characters put on a performance."
 
And, because there are so many fans out there, this was not an easy job to get. First, there was the training:
 
"The group had been together in Orlando since Wednesday, receiving training about how to be panelists. They learned how to ask each other for help, how to answer a question politely, how to urge someone to try something new."
 
But before that, there was the application process:
 
"They beat out more than 10,000 other applicants to become members of the 2020 Disney Parks Moms Panel, a website where people planning to go on a Disney cruise, or visit a Disney park or Disney Vacation Club in the United States, can ask questions and get responses from these experts. The company will announce the panelists on Wednesday morning. Eleven of this year's new panelists are women, three are men and two are not parents. The panel also has an additional 28 panelists returning from previous years."
 
OK, that's a little weird but, so far, so good, right? Or, maybe it gets weirder. What is interesting about this particular job is not so much what is expected of each employee, but their compensation package:
 
"The panelist position, while a Disney contractor role with an intensive application process, is not paid. In exchange for answering these questions every week, the panelists get a free stay at a Disney park or vacation club of their choice for five nights and can bring three people along. For this group, the trip is more than enough payment."
 
The idea that avid 'fans' would work for Disney for free reminded me of a Southwest case that I teach in my strategy class where the firm's passengers routinely take paid holidays from their jobs to help Southwest recruit new flight attendants. When asked why in the case, one respondent says, "Well, this is my airline, too." I am always left amazed that you just can't buy an endorsement like that. Who would do that for United, American, or Delta? And, what does it say about Southwest (and Disney for that matter) that that is the case? At some level, it has to speak to the culture the organization has created, combined with the meaningfulness that we crave in our lives. Those firms that can create significant overlap between the way we work and the way we live are doing something special:
 
"For [the] panelists, who like Dr. Chlon work full-time, working for Disney in this capacity is something of an honor. It's also an opportunity to contribute to a company that has sentimental and nostalgic meaning."
 
And that enthusiasm is conveyed through these volunteers:
 
"This is why the panelists aren't paid, according to [Leanne O'Regan, director of public relations for Disney Parks, Experiences and Products]. There is an 'authenticity of getting advice from someone who isn't being paid to give you advice,' she said. 'We want them to be honest when they answer questions.'"
 
On the other hand, however, this story also reminded me of the AoM meeting that was held a few years ago in Orlando at Disney World, and what an unmitigated disaster it was. Disney is, if nothing else, a company created by management consultants. And their attempts to get us to part with more money than we would otherwise voluntarily do was so transparent as to be insulting. Maybe it is the cynic in me, but every time someone at Disney told me to have "a wonderful Disney day," my heart sank. Clearly, however, many people out there are not management professors and simply love what it is that Disney does:
 
"This year, Disney put out the call for applications in August and kept the application portal open for one week in September. Many people apply for years before becoming panelists. Tamela Hansen, 45, finally made it onto the panel after 12 years of applying. Ms. Hansen said that she feels like she has been preparing to be a panelist for her whole life; she knew her time would eventually come. After all, she has been to Disney World from Alabama, where she grew up and currently lives, at least 100 times."
 
My question, therefore: Is Disney different from Southwest, or are they both tapping into something similar and fundamental? If so, why do I (largely) enjoy interacting with Southwest (apart from some of those annoying safety videos on YouTube), while Disney makes me feel weird?
 
Take care
David
 
David Chandler
© Sage Publications, 2020
 
Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler5e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Work for Disney without Pay? 10,000 Applied
By Tariro Mzezewa
January 19, 2020
The New York Times
Late Edition – Final
TR1, TR8
 

Wednesday, April 13, 2011

Strategic CSR - Corporate taxes

An issue that was included in the first edition of Strategic CSR (Issues: Patriotism, p258), but dropped from the second edition, focused on corporate tax avoidance. Firms can legally avoid paying taxes by, for example, incorporating offshore (a P.O. Box in a non-descript building), rather than where either their HQ or major area of operations are located. The issue discussed whether this would be a liability for firms as consumers reacted to firms’ unwillingness to contribute a ‘fair’ proportion of profits to the tax base.

The issue is real, as indicated by this recent article in the NYT (http://www.nytimes.com/2011/02/02/business/economy/02leonhardt.html) that highlights the gap between the official U.S. corporate tax of 35% and the amounts firms actually pay:

“Over the last five years, on the other hand, Boeing paid a total tax rate of just 4.5 percent, according to Capital IQ. Southwest Airlines paid 6.3 percent. And the list goes on: Yahoo paid 7 percent; Prudential Financial, 7.6 percent; General Electric, 14.3 percent.”

One of the reasons why this issue was dropped from the second edition is that the extent to which consumers care sufficiently about this issue to change their behavior is unclear. This may now be changing.

The issue was revived in the UK at the end of last year by the UK charity, Christian Aid (see also: http://www.ukuncut.org.uk/). The NGO launched a campaign targeting firms that were legally (but unfairly, the charity argued) avoiding paying sufficient corporate taxes in the UK. The articles in the three urls below discuss the campaign, as well as the implications for firms:

“One lesson for companies is clear: tax is becoming an important source of reputational risk. … over the past decade campaigners have begun to focus on it with the same zeal as they apply to more immediately emotional issues such as the environment or child labour.”

The frustration of people who see corporations earning large amounts of money, but not paying any taxes, is understandable:

“It is not just that they believe companies are evading their responsibilities at a time when taxpayers face the slashing of their services. It is that it all seems so contrived. Ordinary people cannot work in Pittsburgh and pay (or not pay) tax in Bermuda, or live in Birmingham and enjoy Geneva's tax rates. Why should companies be able to do so?”

In response, the articles pose thoughtful and subtle questions about exactly how much firms should be expected to pay. The answer is not as easy as it might initially appear:

“In most developed societies, companies have the right – as do individuals – to arrange their affairs in such a manner as to minimise the amount of tax they pay. It is legal, even honourable. After all, a company that goes bankrupt because it paid more in tax than it needed to would be neither responsible nor competent. The maxim only holds true, however, so long as the degree to which you can minimise that liability passes some kind of intuition test about fairness. A big, prosperous corporation that makes large profits in a country and pays absolutely no tax there – well, that’s clearly not on. But then you have to ask the question – what is the socially responsible right amount of tax to pay?”

Ultimately, while it is pertinent to ask “What is a fair level of tax for companies to pay?” it is also worth remembering that the emotions surrounding the tax debate (especially when firms are abiding by the law) should not overshadow the total social value firms generate:

“Which do we think is going to solve poverty, companies giving governments more cash, or companies being able to thrive and create jobs? If there is an optimal balance, where is it? Is it the same in all parts of the world?”

Take care
David


Instructor Teaching Site: http://www.sagepub.com/strategiccsr/
The library of CSR Newsletters are archived at: http://strategiccsr-sage.blogspot.com/


Corporate disclosure: The tax blame game
It’s too easy to demonise big companies that take steps to minimise their tax liabilities
By Mallen Baker
December 3, 2010
Ethical Corporation Magazine

Tax claims hit at reputation as well as the coffers
By Vanessa Houlder
1338 words
9 November 2010
Financial Times
USA Ed1
12

Companies face the people's fury over taxes
By Michael Skapinker
816 words
14 December 2010
Financial Times
Asia Ed1
11