JetBlue is a major low-cost airline, and it is the sixth-largest in the United States of America on the basis of the passengers it carries. Its headquarters are located in the Long Island City, which neighbours the New York City. The company also has corporate offices in Florida and Utah that are meant to ensure that its operations go on smoothly. The company was ranked 399 in the Fortune 500 list (“JetBlue airways,” 2019). The company was operating 1000 flights on a daily basis serving 100 local and international destinations prior to the COVID-19 lockdown. The company is guided by five core values, namely: Safety, Care, Integrity, Passion, and Fun. The core values have played an important role in making the company serve its clients in the best way possible, something that has enabled them to grow their amount of sales in the market. The current motor for JetBlue is “Profit above all.” (Efthimiou, 2020).
History of the company
Several theories are helpful in corporate governance namely: Agency theory, Stewardship theory and Sarbanes-Oxley. Agency theory refers to the principle used in the explanation and resolution of issues between the business principles and their agents. Stewardship theory postulates that the people are intrinsically motivated to perform various task for the individuals and the companies that they work for. Sarbanes-Oxley on the other hand us a concept that is aimed at protecting the stakeholders from fraudulent reporting. JetBlue was founded by David Neeleman in February 1999 after incorporating it in august 1998 under the name “NewAir.” The company then started operating in the southwest. The company has managed to distinguish itself by offering low-cost travel with excellent amenities that are important to the clients in the market. One of the most important things that the company has done is following the requirements of Sarbanes-Oxley (SOX) Act of 2002 whereby they have made sure that the financial information that they share with the stakeholders are as accurate as possible. The company provided various amenities that were aimed at helping the clients to be comfortable as they travel. The company still provides amenities in the present day. They include Televisions at each seat, inflight entertainment as well as Sirius XM satellite radio. The company was then given a chance to take-off and land at John F. Kennedy International Airport by being rewarded 75 spots at the airport in the year 1999. In February of the year 2000, JetBlue received USDOT CPCN authorization. It then commenced with the flight services on February 11, 200, where they started with services to Fort Lauderdale–Hollywood International Airport and Buffalo Niagara International Airport. The founders had planned to call the company “Taxi” but later dropped the idea because it was not appropriate at the moment (“UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10- KE10vk,” 2010) (Matos, 2017). The name was rejected because it was ambiguous and the fact that investor JP Morga had threatened to withdraw his share ($20 million of the total $128 million) that he had given the initial investment in the company if the name was not changed. The stakeholders then had to change the name and to look for a more befitting one that could please all the stakeholders (Efthimiou, 2020).
David Neeleman was the CEO of the company since it was started and was in charge of corporate governance together with the board of directors. One of the things that made the CEO to be successful in the years that he was heading the company was the fact that he encouraged the stewardship theory. For instance in the year 2005 when the company experienced economic downturn, the CEO came up with measures that reduced the expenditure of the company and returning to profitability in the process. On May 10th 2007, President Dave Barger replaced David Neeleman as the CEO of the company. David Neeleman was also replaced after a major service melt down that had affected the company significantly. He also left the CEO position to focus on the other strategic issues that demanded his attention and which he had neglected as he oversaw the growth of JetBlue. The company then made some changes in its leadership structure where they replaced President Dave Barger with Robin Hayes on February 16th 2015 when the contract of the latter expired. During the time that he was announcing his retirement from the CEO position of the company, Barger noted that helping to found and lead JetBlue was one of the best experiences that he had faced in his lifetime. He added that they had set out to create a useful airline and they had managed to do so as time went by. He was happy that he had helped the company to grow the company. Robin Hayes was tasked with the responsibility of taking the business to the other level in the best way possible despite the fact that there was competition in the market. Robin Hayes is still the CEO of the company presently. Barger has tried his best in applying the agency theory by allowing various agents to help them in making booking for flights as well as helping them carry out the advertisements.
Social corporate responsibility
There are several theories that are important in social corporate responsibility namely: Milton Friedman Vs Archie Carroll as well as economic, legal, ethical and discretionary. Archie Carroll Carroll held the belief that the role of business is more than just making profits unlike Milton Friedman who notes that the main aim of having a business is to make profits (Wheelen & Hunger, 2010). JetBlue has a mission of inspiring humanity which means that they have to support the people in the society and make sure that they have better lives. The company works with various non-profit partners to improve the lives of the people that it serves. PR News named JetBlue’s Icema Gibbs as the 2019 CSR professional of the year which showed that the company is making a significant impact in the society. The company was on the forefront in reducing the rate pollution to the environment in the year 2016. The company entered the worldwide global carbon offset agreement. It is therefore important to conclude that JetBlue have always done their best to follow the theory that was fronted by Archie Carroll Carroll more than the theory presented by Milton Friedman. The company has also done its best to have an impact on the society by ensuring that take care of the economic needs of the people in the society (“JetBlue announces Q4 2018 results,” 2019)
The headquarters of JetBlue is located in the Brewster Building in Long Island City, New York. The company also has offices in Florida and Utah. As of March 2020, the company had a total of 99 destinations in North and South America. They include the United States of America, Turks and Caicos Islands, Columbia, Saint Maarten, Trinidad, and Tobago, Saint Lucia, Ecuador, Jamaica, Peru, Mexico, Aruba, Bermuda, Haiti, Grenada, Ecuador, Costa Rica, Dominican Republic, Cuba, Cayman Islands, Barbados, and the Bahamas. The company has bases in San Juan, Orlando, Los Angeles, Long Beach, New York, Fort Lauderdale, and Boston (“JetBlue,” 2020).
The core business of the company is to transport people and luggage from one place to the other. The core cabin of the aircraft operated by JetBlue includes leather seats, complimentary entertainment, complimentary Wi-Fi, entertainment screens that have Direct TV and XM radio. The clients can, therefore, be entertained as they travel. The company also provides meals and refreshments on board. The company also provides inflight entertainment. The clients can also enjoy the Frequent-flyer program (“JetBlue,” 2020).
The mission and its adequacy
JetBlue’s mission is “to inspire humanity – both in the air and on the ground.” The company has a commitment to giving back to the community that they serve and inspire others to do the same. The mission is adequate because it has inspired the company to operate with the clients in mind. They, therefore, serve many people in the society because of the fact that they provide high-quality services at an affordable price. The company also donates to a charity, which helps in improving the lives of the people in the areas where it is operating. They also encourage the customers, the crew, and the other employees to be champions in charitable giving as a way of improving the lives of the people the society that the company serves. The mission has made them not only to be a profitable company but also to be helpful to the people in the society. In a nutshell, the company sets an example then tells the other stakeholders to follow suit in a bid to improve the lives of the people in the society. Some of the important parts that the company serves are the youth and education (“JetBlue,” 2020).
Vision and its adequacy
JetBlue’s vision is “to emphasize on providing competitive rates for customers for all of our destinations.” The vision is adequate for the company because it inspires them to provide competitive rates to the clients who are using the airline to travel from one point to the other. The company finds ways of reducing expenditure so that they can charge the most competitive prices in the market. The competitive rates charged by the company enable the company to attract a large number of clients hence increase their revenue and profitability. The company, first of all, seeks to meet the needs of the clients, and in so doing, they make the necessary profits that keep them afloat, which is a good strategy that should be emulated by the other companies that are operating in the market (“JetBlue,” 2020).
The company is guided by five core values, namely: Safety, Care, Integrity, Passion, and Fun. The values are adequate because they play an essential role in influencing the way the business operates. A focus on safety makes sure that the clients are safe as they use the airline. The seats are comfortable with safety features. The aircraft are well maintained to ensure that they are safe for use by the clients. The company also meets the standards that have been put in place by the FAA. The employees are inspired to care for the clients hence provide the best services possible that will improve the comfort of the travelers. The company also ensures that all the employees conduct themselves in integrity as a way of ensuring the success of the company. Integrity is one of the significant factors that lead to the success of the company, and putting it as part of the company’s values is a prerequisite of success that cannot be ignored. Passion is also a core value that the company upholds, and it gives the employees and the other stakeholders the drive to serve the clients and the community in the best way possible. The employees have a passion to the point that they have made it easier for the company to satisfy a large portion of the clients in the market. The other value that the company upholds is fun, and that is why they have entertainment on board. The employees feel entertained as they move to their destination (“JetBlue,” 2020).
JetBlue has grown at a very high rate, and it has shown the signs of growing even more significant. The mission, vision, and values of the company are playing an essential role in its success and ensuring that it meets the needs of the clients in the market. They are adequate such that they help the clients to get the best from the company. Five core values, namely, guide the company: Safety, Care, Integrity, Passion, and Fun. The values are essential in the operation of the company, and they not only help in attracting the clients but also helps in attracting more clients. The fact that the company has put in place social corporate responsibility makes them to serve many people in the community and to meet the needs of the people in the society. It is important to note that the people in the society are facing various issues and it is the role of the companies to help the people in the society to improve their lives.
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