Recently, both American Airlines and Delta Airlines have filed separate lawsuits expressing that direct-mail travel clubs are using their trademarks and misleading customers. Direct Mail travel clubs are companies which use direct methods of advertising such as text messaging, phone calls, or mail. Christopher Elliot of the Washington Post received a postcard in the mail saying he had won an airline ticket. The ticket was a $1,398 credit for USA Airlines, which does not exist. The Stakeholder Theory explains that companies hold the responsibility of meeting the interests of both the shareholders and the community. This false advertising exemplifies businesses putting profit before ethics and therefore functioning in an unethical manner. A corporation is not a person. With markets being so competitive, monetary incentive often overrides ethics. Ultimately these lawsuits serve society as a way of outing fraudulent companies. These are useful in raising awareness. Any winnings from these law suits would be quite insignificant considering they are against small organizations. However, these lawsuits can be considered a responsible initiative on behalf of the Airlines since they alert customers on the perils of fraud.
Works Cited
“American and Delta Do the Right Thing.” The Economist. The Economist Newspaper, 08 Sept. 2014. Web. 10 Sept. 2014.
“Direct Mail Definition | Small Business Encyclopedia.” Entrepreneur. N.p., n.d. Web. 11 Sept. 2014
“Stakeholder Management » R. Edward Freeman.” Ed Freeman. N.p., n.d. Web. 11 Sept. 2014