The Impact Of The Costa Concoria

Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales.

Social responsibility is generally regarded as a duty of an organization’s management towards the benefit and well-being of the society in which it is engaged. The organization must behave ethically considering the social, cultural, economic and environmental issues.

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

Example of weaknesses that Carnival Corporation & plc has is their safety record. In early 2012, the Costa Concordia struck off the coast of Isola del Giglio, Italy. In 2013, Carnival Cruise Line’s Triumph reported a fire, which left the ship adrift in the Gulf of Mexico (Carnival Corporation & plc SWOT Analysis, 2016). Among the other cruises, Carnival Cruise Lines have notably been the worse. In 2009, the Center for Disease Control tracked all major outbreaks, about 56% on Carnival cruise lines compared to a 48% average market share from 2009-2011. The company is also accounted for worse safety record for persons lost at sea. Since 2000, about 179 disappearances happened with Carnival Cruise Line alone (Levin , B., Jones, J., & Slade, T., 2012).

Everyone knows the story of the Titanic. The ship was on its maiden voyage when it hit an iceberg and sank, leading to the death of more than 1,500 people (“Titanic” A+E Networks). It was a horrible event, but it may have all been planned by the company that owned the ship. White Star Line owned both the Titanic and its sister ship, the Olympic. The

The Carnival Cruise Lines, Inc., was founded by Ted Arison in 1972. (Corporate Information) Ted ran the company until 1990 when he handed over the business to his son, Micky Arison. Micky became the CEO, and then became the Chairman. Carnival is the largest and most popular cruise line in the world, carrying more passengers than any other cruise ship. The Carnival Corporation mission statement is; “Our mission is to take the world on vacation and deliver exceptional experiences through many of the world's best-known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea.” (Carnival Corporation History)

1. I have been fascinated by the history of the Titanic for as long as I can

Carnival is a leader in the cruise industry and it’s highly likely that the consumers would select this company; as it is also a branded company recognizable on the market it allow the process of word of mouth that lessen the power of the consumers from their self.

From the disaster to the movie, the sinking of the Titanic remains one of the most famous tragedies in history.

One of the greatest tragedies of the twentieth century, was the sinking of the Titanic in 1912. Although many ships have succumbed to the icebergs in the ocean, none have accounted for a greater loss of life than the Titanic (Hill, 2000). All the hype surrounding the Titanic in 1912, made people believe this ship was going to be an unstoppable luxury cruise; even third class passengers would be able to enjoy simple things that weren’t offered on other ocean liners at the time, like cooked meals and their own private cabins. The Titanic was dubbed the Ship of Dreams; however, it would turn into a nightmare for the passengers and their families in less than a week. The maiden voyage from South Hampton, England to New York City, New York would be a journey no one could forget. The sinking of the Titanic would capture the imagination of Hollywood directors, and became the passion of sea explorers who would search for the great vessel.

The final uncontrollable force affecting the cruise line industry is competition (Montalvo, 2007). This is probably the least influential force since 91% of the cruise line industry is made up of three companies-Carnival, Royal Caribbean, and Star. These three organizations are world-famous and have developed the cruise concept to the point that there is a cruise that will fit just about every person’s destination dream and budget reality.

In 1972, Carnival Cruise Lines (CCL) was found by entrepreneur Ted Arison. Mr. Arison’s vision involved making cruising, a vacation experience once reserved for the rich, available to the all individuals. Carinal Cruise Lines achieved the ability to carry more passengers than any other cruise line, which lead to Carnival becoming the largest cruise line in the world. By 1987, Carnival Cruise Lines earned the distinction, “The Most Popular Cruise Line in the World.”

Over the last few years, the cruise industry has been going through a number of changes. This is because there are more players in the market and many firms are offering aggressive pricing / packages in an effort to lure travelers. In the case of Celebrity Cruise Lines, the company had made a reputation for itself by reaching out to a core group of American customers. This accounted for 85% of the firms business, with 49% of clients as repeat travelers (who had used the company's services before). ("Celebrity

Carnival Cruise Lines is the largest cruise company in North America and carries more than 60,000 passengers a week. The Carnival experience is the standard against what past cruisers judge their later cruise experiences. Carnival has captured the "fun" psychographic and has a strong reputation for an enjoyable, relaxed cruise. Furthermore, Carnival has a strong market expansion strategy for selling the mass-market cruise category and first-time cruisers. They have a clear vision and knowledge about the industry and a commitment to their brand essence, which is fun. Also, as an extension to their branding of the "fun" ships they are the low-price leaders. Because of their strong brand image they are able to achieve double-digit growth in

Although being socially responsible and ethical is a serious challenge nowadays, the company can not tolerate his performance. Besides that, it is very important for a company to be successful and Mr. Edmondson was not able to archive the goals.