Customer service and ethics

by Kammy Naidoo, CEO, Busfin Consulting

I am a self-confessed customer advocate at heart. I truly believe that companies that choose to put the customers at the centre of their business and that make decisions to benefit their customers have the ability to make profits effortlessly.

I have therefore been surprised by recent incidents in the airline industry where customers have not been at the core of the behaviours and decisions displayed, and it has left me wondering how ethical these companies are and about the ethical practices within certain industries.

In one incident a passenger was literally dragged off a United Airlines flight because it was overbooked. How United Airlines subsequently dealt with the issue had massive ramifications for the organisation. In responding to the incident, the CEO initially sent an email to staff supporting their actions. The outcome was not only massive negative media attention but it also led to nearly $1bn of the company’s value being erased in trading.

The incident threw the spotlight not only on the actions of United Airlines (that have in the past been found lacking - anyone remember United Breaks Guitars incident?) but also highlighted a common practice and problem in the airline industry - that of overbooking flights and ‘bumping’ passengers to another flight. Whilst we have all been on the receiving end of such practices the question is, just because all airlines do it, does it make it right? What about the fact that the airline and I have just concluded a contract where I, as the customer, have paid for my ticket and the airline in return has agreed to perform a service at a specific time and in a specific way. Surely reneging on the contract is not right or ethical?

In the other incident a mother travelling with twins was hit with a pushchair and kicked off an American Airlines flight by a flight attendant. What sparked the incident is not really clear. However, American Airlines issued a statement soon after the event stating that the behaviour displayed by the employee was not in line with the company’s values and that they regretted the incident.

The actions of the employees in both these incidents raise a number of questions:

• What is the culture of the company and is the behavior of this employee a true reflection of the culture?
• What are the company values?
• How does the company ensure that the values are actively lived by their employees and are not just pretty pictures on a wall?
• Does the airline regularly share with employees what behaviours are and are not aligned with the values of the organisation?
• What are the consequences for employees who do not live the values of the organisation?

So what are some of the lessons to be learnt from these incidents?

• Just because everyone does it, does not make it right. Ask yourself the questions: If my mother or a close family member were the affected party, how would I feel? Would I still do the same thing or take the same decision? Also if a customer were sitting at my table, would I make exactly the same decision? If the decision I just made was leaked to the press, would I be able to defend the decision made without negatively impacting the company?
• Organisational culture is not something that happens by accident. It needs to be carefully cultivated, nurtured, cherished and protected. Peter Drucker once said that culture eats strategy for breakfast. Even the best strategy can be overshadowed by a poor organisational culture. If you asked 10 people that you work with how they would describe the culture, what would they say?
• Values, behaviours and actions need to start at the top. Once leadership are observed doing the right things, the people below them will start emulating them. Again, if you had to ask 10 employees whether the leadership in your organisation walks the talk, what do you think they would say?
• Good customer service is not something that happens in isolation from the rest of the organisation. Having the right culture that places customers at the centre of decision-making and having the right profile of employees who live the values and who are empowered to make the right decisions is critical for success.

And finally, in the age of customers being savvier, everyone having a cell phone with a camera, and social media being prolific, the playing fields are being levelled. Companies who do not choose to do the right things for their customers are going to feel the impact where it hurts the most…their bottom-line. Choosing to do nothing is not an option any more.

by Kammy Naidoo
CEO, Busfin Consulting, market conduct specialists that help companies integrate regulatory requirements and business strategy whilst delivering customer experience benefits