Pratt & Whitney Ethics and Social Responsibility

Corporate social responsibility, environmentalism and ethical principles provide a triple foundation of contemporary decision making concept for business and managing organization’s activities. Considering that social awareness amongst the public and other interested stakeholders is increasing every day, organizations are mandated to broaden their corporate priorities beyond their traditional business objectives of profitability and enrichment of their shareholders. The corporate leaders cannot disregard pressure from stakeholders demanding organizations to assume complete responsibility in examining the social implications of their operations. With organizations facing increased pressure from dynamic environmental factors, their sustainability lay in integrating ethical principles, social and environmental responsibility with their financial prosperity pursuits.

Governance Structure

Accomplishing business sustainability involves nurturing the ability of the organization in meeting its present and future prosperity without comprising the wellbeing of future generations. This consideration creates a reason for organizations go beyond their usual environmental sustainability programs and adopt better business channels that factor in social and environmental impacts under a triple-bottom-line approach. This enables the organizations to assess social impacts, environmental risks and emerging opportunities against their business decisions(Cohen, Taylor, & Muller-Camen, 2012). Nurturing a culture of sustainability assumes a central focus for Pratt & Whitney, translating to a different approach of conducting business. Since its foundation in the year 1925 by Frederick Rentschler, the organization has stood its test time guided by the principles of integrity, customer awareness, product quality and a shared vision for its strong team.

Alike other successful aerospace companies, Pratt & Whitney mission captures a sustainability roadmap ingrained in its mission of capturing organizational value while minimizing environmental impact from its operations. By engaging the Natural Step framework, the governance structure of the company commits to ensure, the product designing and manufacturing align with the company mission of minimizing environmental implications in their entire life cycle. Since the introduction of the Natural Step Framework in the company, it has armed its operations with a collective language of sustainability, where the strategic management team identifies and solves sustainability challenges. This provides a more-defined platform where the organization priorities gear towards embedding a complete dimension of sustainability in its corporate culture alongside its mission commits towards sustainable future. Pledging to social responsibility help the corporation acknowledge that running successful businesses involves improving the human condition (Pratt & Whitney, 2014). Consequently, it celebrates the active roles assumed by its employees to sustain its quest for ethical conduct, environmental and social responsibility in all its operations.

The governance structure at Pratt & Whitney resembles that of other business units of UTC, guided by the Group’s code of ethics woven into its corporate culture. The UTC policy manual outlines several business policies converging to the company commitments, including improved performance, personal development, pioneering innovation, social responsibility and maximizing Shareowner value. The presence of the business unit code of ethics and UTC’s policy commitment serves complimentary functions, which distinguishes it from other aerospace companies. This involves institutionalizing ethics and its compliance programs alongside fostering commitment to the success right from top management level. Contrary to other organizations where authority and infrastructure declines in their ethics programs, the company provides continued resources and high-level representation by a vice-president of business practices within its reporting structure(Pratt & Whitney, 2014).

Code of Ethical, Social and Environmental Conduct

The organization is governed through a code of ethics through which all its business decisions and operations are based upon. The code of ethics that comprises corporate principles and standards of conduct, express the fundamental values and defined approach committing to accomplish highest standards of business conduct and ethics. In addition, the code outlines standards, which guides the organizational relationships with its stakeholders, including soreness, competitors, suppliers, and host communities. The standards of conduct define the ethical principles that direct its interactions with its employees and stakeholders at every level of its operations. Pratt& Whitney interprets the standards within the existing framework of legal provisions and customs arising in the jurisdictions of their operations (Pratt & Whitney, 2014). However, its policies comply with UTC policy manual to develop a common sense just as other business units of the parent company.

The corporation self-regulates its activities by enforcing the standards equitably to avoid compromising the recommendations of the Packard Commission report. Pratt & Whitney retain the focus of self-governance through its unique internal controls that monitor compliance of ethical principles. This eliminates unacceptable excuses, including others are doing it and it is illegal. This translates to benefits the corporation by remaining mindful to avoid instances and actions that yield the appearance of wrongdoing, as such could discredit its operations. The practical explanation and implementation of the code arises through policy circulars provided in the corporate policy manual. Nevertheless, the integrity ad positive reputation of the corporation depends upon all individual actions of its parties in the supply-chain relationship. The corporation mandates every personal to demonstrate personal responsibility and accountability while complying with the code. Finally, the Corporation requires that representatives and agents of its operations should refrain from engaging with actions that are inconsistent with principles applicable to its employees.

Teleological and Virtue-Based Philosophy of Ethics

Corporate culture involves the defined set of norms, values and beliefs that the members of an organization share in their individual interactions and undertaking their responsibilities. This suggests that if the culture of the organization is ethical, its members are more likely to exhibit ethical conduct. However, the goal of all ethics initiatives gear towards achieving a unique status that is not only characterized by secluded moral decisions, but wide presence of moral people who facilitate the ultimate accomplishment of a moral entity (Carroll & Buchholtz, 2012).Since its foundation, Pratt & Whitney ethical culture grounds between teleological and virtue-based philosophy. Assuming teleological perspective enables organization members to judge morally their actions against their consequences. Virtue-based philosophy emphasizes on helping all Pratt & Whitney members develop improve their character traits. While the teleological ethics focus on what should its people do, embracing virtue-based ethics emphasize reaching moral decisions based upon what sort of person one wished to be.

Organization members face multiple challenges in their workplaces when they fail to solve successfully along the basis of moral philosophy. In view of that, developing a clear understanding of the decision rationale, they are more likely to develop a firm grasp of the challenging situation at hand and reach sound decisions (Fernando, 2009). Primarily the corporation demonstrates the teleological philosophy by acknowledging that for one to make appropriate moral choices, one requires basic understanding of the anticipated results from available alternatives. Pratt & Whitney accomplishes this perspective through its ethical culture that goes beyond the usual recitation of corporate rules to represent a standard framework to make decisions. The corporate identifies the values, corporate commitments by its parent company and a standard process for decision-making translated into multiple languages to represent diversity in its workforce (Pratt & Whitney, 2014). This enables all Pratt & Whitney people to have a common ground of purposeful action by conduction teleological analysis that facilitate them to consider the effect of their business decisions to its stakeholders. The organization retains this perspective through the UTC’s compliance program comprising regular communications, mandatory training, online training, formal risk management process, personal appraisal for ethical competency, cascading ethical objectives and regular monitoring (O’Connor, 2012).

Emphasis of virtue-based philosophy in nurturing an ethical culture, facilitate a learning forum for organization’s people on how to break away from circles of bad habits and embrace paths of becoming better individuals. A typical ethical system emphasizes individual character traits, which guarantees the flourishing of human beings. For that reason, Pratt & Whitney holds that actions are right if only they portray what a virtuous person would do in similar circumstances (Pratt & Whitney, 2014). Virtue-based philosophy keeps the organization ahead of rivals in the industry by committing its people to sustain high ethical standards throughout its operations. The ethical culture embraced at Pratt & Whitney articulate core values such as building trust, showing respect, performing with integrity and dependability. As a result, ethics forms the fundamental value translating into the organization’s reputation for integrity among its employees, clients, suppliers, share-owners and communities. Emphasis of virtue ethics in its corporate culture implies becoming a responsible corporate citizen by contributing to the positive well-being of all stakeholders.

How the Organization Culture Reinforces Old Cultural Values

The organization code represents a shared meaning that establishes an ethical connection between what Pratt & Whitney does and value for its stakeholders. Firstly, emphasis on integrity in its business practices demonstrates the commitment of the organization to incorporate ethical principles in its corporate culture. Over the years, the corporation has stood the test times owing to the emphasis on ethical behaviour in its code of ethics to protect and maintain its business reputation of integrity when dealing with other stakeholders. The virtue of integrity offers an initiative for good character where the organization people learn to comply with the virtue-based philosophy in their duties and conduct holistic analysis when faced with ethical dilemmas (Icheku, 2011). The corporation demonstrates this principle by articulating it in the emphasis of doing the right thing as the roadmap for its aspirations. Secondly, the company conforms to the principle of veracity by nurturing the value of accountability that requires its employees, agents and representatives to assume ownership in their assignments. It shares UTC belief that successful enterprise aims to improve the present human condition by sustaining high levels of ethical performance and corporate responsibility.

The quest for fairness within the internal and external environment enable the organization leapfrog the usual expectations of complying with the justice system in their host environment. For instance, equal treatment of employees through a governance structure supported by a code of ethics translated into over 33 languages to represent compliance with international diversity. Despite its product excellence, it continuously gears towards cost minimization to avoid charging high prices for its customers. The value of human dignity prompts the employees to remain respectful and serves to remind them the unchanging belief of the ethical culture of the organization. Facilitating the participation of the employees in decision-making enables the management to acknowledge the importance of engaging and respecting employees as executors of its corporate policy manual. Additionally, the value of dependability enables the employees’ honour commitments as reliable agents, which ensures the organization honours its delivery schedules (Pratt & Whitney, 2014). As responsible corporate citizens, Pratt & Whitney demonstrate high commitment to the principle of love, common good and social responsibility by propelling its future through positive contribution in social and environmental dimensions.

Imposing Standards to Suppliers

The shared meaning of deriving improved value for the human condition places operational responsibilities for Pratt & Whitney suppliers to help sustain operational excellence in the organization’s operations. Consequently, the corporation released standard terms, which establish expectations that all suppliers must comply with during their interaction with the organization. The organization seeks suppliers to improve the human condition by assuring safe and healthy workplaces, alongside eliminating forced and child labor. As replicated in its code of ethics, the organization mandates suppliers to avoid discriminating personnel and shunning corrupt practices throughout the supply chain. The push to protect its business reputation of corporate citizenship necessitates direct suppliers to exhibit fair employment, prohibit gender-based harassment and trafficking of persons. Moreover, the code addresses labour ethics through an annual certification of its salaried employees and routine training to third parties on how to recognize and mitigate supply chain risks. Here, Pratt & Whitney seek compliance with the UTC supplier selection and robust administration criteria for its direct suppliers, Besides excluding verification of whether product supply chains address issues of labour standards, it does not seek suppliers to certify compliance levels with laws in countries where they conduct their business (Pratt & Whitney, 2014).

Eco-Friendly Products and Operations

Pratt & Whitney roadmap incorporates powering its generation of propulsion systems through eco-friendly products and services that translate to fuel efficiency, reduced emissions and bearable noise. Since investing in technologies such as Geared Turbofan and TALON family combustors, the organization has gained leadership in sustainable products including the PW600 and 800 engine series and upgraded to V2500 and Advantage 70 engines. Secondly, embracing the UTC greenhouse gas emissions helped drop per-product emissions by 12%, 10% water consumption and 30% for non-recyclable waste since 2007. Besides, the partnership between NASA and Pratt & Whitney in the development of TALON combustors has significantly led to eco-friendly products such as PW4158 and 4168 engines (Pratt & Whitney, 2014). These investments reveal the commitment of the company in reducing regulated pollutants, including nitrogen oxides, unburned hydrocarbons and carbon monoxide.

Utilization of TALON II combustors to power Airbus aircrafts such as PW4168 in A330 and PW600 in A318, attains reduces nitrogen oxide emissions by 19-28%, unburned hydrocarbons by 28% and 6% for Carbon Monoxide. These accomplishments rank its family of engines as the cleanest in the aerospace industry. Application of improved emission kit comprising upgraded fuel nozzles and low combustors blend with Talon concept reduces the unburned hydrocarbons to 0% and smoke production by 50%. Furthermore, the certification of the QuietEagle system for reducing noise complies with the aviation regulation requirements by reducing noise by 6 decibels (Pratt & Whitney, 2014).

The corporation has been at the forefront of exploring alternate jet fuels by collaborating with like-minded organizations to pursue clean and efficient bio-fuels into commercial use. Since early 2008, it has brought alternate fuels into operational use, specifically in powering its engine demonstrations and jet flights under the organization’s program for sustainable -. Since joining other industry members under the Energy Cooperation Program’s Sustainable Biofuel Program, it has committed to aggressive research and tests for alternative fuels. Today’s commitment to eco-friendly products manifests itself in the EcoPower water-wash system for its engines saves on fuel burn by 1.2% and increasing exhaust gas temperatures of 150Celsius. This approach attains biannual engine wash, thus reducing average carbon IV oxide emission by 750 metric tonnes (Pratt & Whitney, 2014).

Availing Information about its Environmental Performance

In tandem with the commitment to sustain its high performance standards, Pratt & Whitney acknowledge the input of its diverse stakeholders in improving its sustainability efforts. Firstly, it invites comments from participants on their CSR reporting by soliciting feedback on its corporate objective of attaining energy efficiency and arresting harmful implications for the environment. Secondly, it conducts interactive sessions across London and Washington backed by its parent company where it asks external stakeholders to offer additional information on its sustainability goal-setting approach. This approach offers a two-way communication channel upon which it responds to requests of these stakeholders on its website and its annual integrated report. The company encourages feedback on its commentary platform supported by its website, where it reviews issues highlighted by stakeholders. The feedback helps the Pratt & Whitney improve the subject of concern and revise the metrics utilized during the reporting (Pratt & Whitney, 2014).

The organization conveys the information about its environmental performance to its family of stakeholders through Pratt &the Whitney Media Channel. This offers a comprehensive source for compliance with industrial environmental programs and organizational news and events on environmental preservation. The coverage on industry trends offers a comparative forum to its customers on the recent developments in the aerospace sector. Similarly, the social media index comprising Twitter, Facebook, YouTube, Linkedln and Google+ captures brief information to customers on environmentalism programs. Moreover, the media library that consists of audio files, press kits and photos enable the stakeholders to explore events and the corporate news. The organization bridges the information gap between organization internal and external environment by briefing stakeholders through press releases, media contacts, and executive speeches. Finally, by preparing a combined report on its corporate social and environmental responsibility program, it reflects the organization’s belief that values social and environmental performances as vital business issues (Pratt & Whitney, 2014).

Opportunities Presented In Socially Beneficial or Environmentally Sustainable Products and Services

Pratt & Whitney environmental leadership emerges from its cooperation efforts with its parent company in setting aggressive environmental, health and safety goals. Working to improve its environmental performance enables, the organization attain its environmentalism objectives beyond the environmental regulations. Particularly, minimizing environmental impact through reduced non-recyclable waste, controlling noise and mitigating greenhouse gas emissions is essential to the prosperity of its business practices besides the social and environmental benefits that accrue to its sustainability program (Yang, 2013).

Firstly, emphasis of green engine technology generates an opportunity to further its product portfolio to eco-friendly operations that would further the organization’s organic growth. For instance, the aggressive production of engines that are better powered by bio-fuel would both preserve the environment, as well as, assisting the corporation overcome economic challenges attributed to price fluctuations for jet fuel. Secondly, aggressive research on alternate fuel to power its engines and commitment to comply with industry regulations seeking lasting solutions on managing risks posed by restricted chemicals, presents commercial opportunities for its environmentally-friendly alternatives.

Besides the Green Power Grant focus on protecting the environment, utilization of the Revert Management program is feasible to capture scrap engine materials and re-use them without degrading the integrity of the supply base. Mass utilization of this program at its factor supply base will translate to environmental benefits, as the organization will eliminate solely dependent on raw materials for its products. Recycling of engine materials would moderate direct mining of raw materials and energy consumed in the process. The recycle of aircraft components and engine materials would lessen the levels of greenhouse gas emissions while translating to million dollar savings for the organization (Pratt & Whitney, 2014).

The aggressive culture embraced by the organization to sustain corporate responsibility programs such as Voluntary Protection and Volunteer Grant and community power-grant initiatives set its operations to benefit from first mover advantages of an imminent eco-friendly economy. The revolutionary advantages posed by Talon technology, including low emissions and outstanding performance attributed to efficient combustion, set the company to benefit from increased customer demand. This will become sustainable for mass production as aerospace companies record accelerated demand for aircraft complying with Zurich 5 provisions and ICAO standards (Pratt & Whitney, 2014).

Reflection of Irresponsibility

Operations in most aerospace companies involve mass utilization of heat energy that translates to waste when the premises do not conform to the LEED rating system. Similarly, conventional designs led to mass wastage in water use, less utilization of recycled materials and dependent on non-renewable energy sources. In view of these anomalies in most facilities of aerospace industry, they represent irresponsibility of business units despite their governance structure suggesting a commitment to social contribution and environmentalism. Consequently, Pratt & Whitney have turned focus on converting the heat energy, reducing fuel usage and avoiding the excessive production of CO2 manufacturing facilities. In an effort to safeguard its business reputation for environmental leadership, the organization set to improve its factories and products by 2025. The corporation is constructing facilities that meet the LEED platinum rating standards, including utilization of renewable energy sources, recycled raw materials, diverting construction waste into useful use and landscaping the facility design to reduce water use (Yang, 2013).

Improving on areas of water use, site designs, utilizing renewable energy, recycling program and eco-friendly products will set Pratt & Whitney apart in corporate sustainability. Firstly, it aims to accomplish 100% in recycling materials in their engines and reduce emission of carbon IV oxide and dependence on mined material. By executing its green technology plan, it aims to leverage technologies to utilize reverted metals, thus arresting negative impact on the environment. Since the PW engine series powered Airbus programs, the use of Geared Turbofan technology to deliver fuel-efficient engines yields dual win to the environment through lower emission levels and saving on maintenance cost to customers. The advent of PurePower engines cuts CO2 emissions at an equal rate of 700 000-forest cover, quietest engines and surpassing CAEP nitrogen oxide standards. In addition to the safety and wellness program for its employees and numerous environmental stewardship projects, constructing LEED-certified green facilities benefit its course as a responsible corporate citizen. Benefits accruing from such facilities include innovative technologies to reduce wastewater, low-emitting materials, usage of renewable energy and outdoor-air-delivery monitoring (Yang, 2013).

Conclusion and Recommendation

Committing to an ethical culture founded on virtue-based philosophy demonstrated by Pratt & Whitney translates to the unmatched achievements in corporate social responsibility and environmental leadership. Since integrating environmentalism and social responsibility into its business model, the corporation has nurtured a corporate culture doing well as a virtuous agent always. The sustainability revolution of eco-friendly products and services demonstrate a true leadership and commitment to safeguard the business reputation through an ethical culture. Nonetheless, the organization should seek partnership with other aerospace companies in validating eco-friendly alternatives such as bio-fuel-propelled aircraft, zero-emission levels and quieter systems for their engine series. Similarly, it should seek forward partnership with European manufacturers as destination for their products to sustain a commercial production. Lastly, the company should incorporate its aggressive verification and audit of supplier certification of compliance with the laws of the countries of their business operation.

References

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  • Fernando, A. C. (2009). Business Ethics An Indian Perspective. New Delhi: Prentice hall .
  • Icheku, V. (2011). Understanding Ethics and Ethical Decision-Making. Xlibris Corporation .
  • O’Connor, K. J. (2012, March ). Ethics & Business Practices. Retrieved February 12, 2014, from http://www.utc.com/Governance/Ethics
  • Pratt & Whitney. (2014). Products, Technology and Services. Retrieved February 13, 2014, from http://www.pw.utc.com/
  • Yang. (2013, June 22). No Longer Up in the Air: Zero Waste & 80% Cut in Emissions By 2025. Retrieved February 13, 2014, from http://abccarbon.com/2013/06/page/2/
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