Aviation In 2020 – On Business Ethics, Leadership And Morals

by Dr. Ruwantissa Abeyratne-2019-12-31

Writing from Montreal

“Knowing too much of your future is never a good thing.”

― Rick Riordan, The Lightning Thief

Notwithstanding the above statement, which is quite sensibly put, it may not always apply to just one year where trends of the previous year would continue, and it might be a good idea to know where we are headed over the next 12 months based on those trends. As Mahatma Gandhi said: “The future depends on what you do today.”

Furthermore, a short-term analysis is always easier to undertake, as certain facts are already known, barring a Novus actus interveniens in the nature of natural and man-made disasters including geopolitical indiscretions. For instance, The Economist says of 2012 in the context of aviation: “[D]emand for commercial jets will take off in 2020, with deliveries of large aircraft soaring by more than 60% compared with the year before…the main reason is the probable return to the skies of Boeing 737 MAX jets which were grounded in 2019 after two fatal accidents. Operating profits will also improve by more than 10%as both America’s Boeing and its European rival Airbus ramp up production. Fuel efficient narrow body jets will drive demand. Boeing will make an average of 57 narrow frame 737 planes a month in 2020 Airbus will win more orders for A220 jets acquired from Canada’s Bombardier...”

This is the easy part to predict. More difficult would be to determine how corporate culture would evolve, or, more importantly, how it should take shape to ensure that it is a win-win situation for both the business and the client due to business ethics and morals leading to the “right thing to do”. Adena Friedman, writing in The Economist paints a somewhat sanguine picture when she says: “In 2020 the backlash against capitalism will grow louder…business leaders are standing up to push for responsible change…together they challenged the notion that our fiduciary obligation to shareholders trumps all other considerations. CEOs now have a better opportunity to demonstrate that it is possible for companies to be responsible citizens while also creating long-term value for the owners”. She continues on to say that CEOs have fought for social good in past years and this trend will increase in thrust in 2020.

This is a good sign – that leaders in industry in general are showing what is called “moral humility”. This should be true of the aviation industry as well. The Harvard Business Review, in an article by Maryam Kouchaki and Isaac H. Smith say: “[The] first step requires shifting to a mindset we term moral humility—the recognition that we all have the capacity to transgress if we’re not vigilant. Moral humility pushes people to admit that temptations, rationalizations, and situations can lead even the best of us to misbehave, and it encourages them to think of ethics as not only avoiding the bad but also pursuing the good. It helps them see this sort of character development as a lifelong pursuit. We’ve been conducting research on morality and ethics in the workplace for more than a decade, and on the basis of our own and others’ findings, we suggest that people who want to develop ethical careers should consider a three-stage approach: (1) Prepare in advance for moral challenges; (2) make good decisions in the moment; and (3) reflect on and learn from moral successes and failures”.

The authors continue: “In his book The Road to Character, David Brooks distinguishes between résumé virtues (skills, abilities, and accomplishments that you can put on your résumé, such as “increased ROI by 10% on a multimillion-dollar project”) and eulogy virtues (things people praise you for after you’ve died, such as being a loyal friend, kind, and a hard worker). Although the two categories may overlap, résumé virtues often relate to what you’ve done for yourself, whereas eulogy virtues relate to the person you are and what you’ve done for others—that is, your character. So ask yourself: what eulogy virtues am I trying to develop? Or, as the management guru Peter Drucker asked, “What do you want to be remembered for?” and “What do you want to contribute”

The aviation industry is one which is responsible for the lives of people carried by air. Over the past decade the number of persons carried by air (from 2009 to 2019) has increased by 80%. Each day 120,000 aircraft take off and land around our digitally globalized world. The safety and security of passengers cannot be compromised at any cost. True morals and ethics in the industry therefore should start with a human touch and social responsibility over profit margins. This is the responsibility of the leadership in the industry. As Javier Pladevall, CEO of Audi/Volkswagen said: “[L]eadership today is about unlearning management and learning being human”. In the words of business management guru Peter Drucker: “[Y]ou cannot manage other people unless you manage yourself first”. A leader should be connected to oneself and have a sense of purpose. He should lead the people towards that sense of purpose.

Leaders who are moral and ethical would know the Greek proverb “Know thyself” and watch out for their mistakes and improve on areas where they are weak in. They need to fix their weakest parts whether they are in regulation, standardization or harmonization. Rasmus Hougaa and Jacqueline Carter, in their book The Mind of the Leader cite four critical factors sought by today’s workforce: meaning; human connectedness; true happiness; and a desire to contribute positively to the world. Today’s leader has to be connected to herself and to those around her and have a sense of purpose. She should lead the people towards that sense of purpose. Peter Drucker famously said: “[Y]ou cannot manage other people unless you manage yourself first”. James Comey, former Director of the FBI, in his book A Higher Loyalty states that the ethical leader does not, and indeed should not demand loyalty from his workers. Rather, he should seek commitment and a meeting of the minds between himself and his workers and make the workers’ lives meaningful and fulfilling. The modern-day leader has to direct as well as guide and above all be empathetic and selfless.

Finally, the true leader has to be an effective communicator and fixer upper. He has to take decisions quickly. The Harvard Business Review cites as the main reason for leaders, CEOs and Presidents of corporations to be fired as their inability to take decisions, right or wrong. This brings one to the conclusion of Peter Drucker: “a manager is a person who does things right and a leader is a person who does the right thing”.

In 2020, following a year of misfortunes and successes, and when commercial prospects for aviation look good, sensible leadership based on ethics and morals should prevail in the industry.