Southwest Airlines and Triple Bottom Line

Southwest Airlines has been a consistent leader in terms of sustainability in the past 44 years. Its growing clientele originates from providing reliable customer service, as well as competitive prices, that would not be found at other airlines. This year, Southwest is launching a new onboard entertainment service with music powerhouse Beats Music. Further satisfying the People category of the triple bottom line (shown below in the form of Venn diagram), Southwest understands consumer needs and aims to meet them to the best of their ability. Demonstrating their care towards people proves that “Southwest connects [their] Customers to what is important in their lives,” and with this information, they “continue to enhance [their] onboard offerings to remain current as [their] Customers’ needs evolve,” (Krone, Southwest CMO). Southwest differentiates itself through not only low prices, but through quality customer and employee care, community development, and environmental innovation.

 

triplebottomline_graphic

 

(source: http://www.chess-llc.com/TBL.aspx)

 

Their community and environmental initiatives range from the development of a Green Plane, ameliorating fuel efficiency, to LGBT outreach, many of which began near the launch of the company. Following the triple bottom line framework has rendered Southwest Airlines a profitable company for 41 years straight. In addition, according to MarketWatch, it is more successful compared to its competitors at +0.88% change.

Screen Shot 2014-11-05 at 9.37.20 PM (source: MarketWatch Nov. 5, 2014)

Southwest Airlines is the ideal exemplar for companies who are skeptical towards valuing social/environmental sustainability equally with economic performance. Southwest differentiates itself through not only low prices, but through quality customer and employee care, community development, and environmental innovation. Its legacy will not rest simply at being a means of transportation, but with its winning points of difference.

Southwest Airlines’ business model proves that enterprises who make an effort to connect with the planet and the people will not impede upon profitability, but instead catalyze it.

 

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