The Adoption of Corporate Social Responsibility Practices in

ENVIRONMENTAL

SOCIAL

ENVIRONMENTAL

THEMES & GOALS

EMPLOYEE WELLBEING AND ENGAGEMENT

CONCLUSION & DISCUSSION

ENERGY

• Emissions

Reduce CO2 Emissions (14/14)

Reduce air pollution (11/9)

• Waste

Reduce waste (13/7)

• Energy

Reduce energy consumption (12/6)

• Water

Reduce water use (12/8)

• Biodiversity

Ensure ecological integrity (4/0)

• Noise

Reduce noise (14/4)

Reduce energy consumption

• Reduce energy use in offices/facilities (7/2)
• Use green/renewable energy (6/2)
• Install new energy-efficient simulator equipment (1/1)
• Departmental energy- saving training programs (1/0)
• Program equipment to automatically turn off (1/0)
• Raise room temperature to 25*C in all offices (1/0)
• Use LED bulbs in aircraft and offices (1/0)
• Use seawater for air conditioning (1/0)

• Improve employee health, safety and wellbeing

Provide sports & health activities (8/3)

• Increase employee involvement and empowerment

Reward/bonus schemes (10/9)

• Increase employee involvement in environmental/ CSR issues

Provide employees with environmental education programs (4/3)

• Provide opportunities for employee education and advancement

Provide training to better enable employees to do their jobs (6/4)

ADOPTION

High 80-100%

Environmental initiative:

• Reduce fuel consumption
• Introduce new fuel- efficient aircraft

Socioeconomic initiative:

NONE

Moderate 70-79%

Environmental initiative:

• Weight reduction measures

Socioeconomic initiatives:

• Rewards/bonus schemes
• Support training and education opportunities for youth

Low 50-69%

Environmental Initiative:

• Introduce latest technology engine
• Recycle on board waste

Socioeconomic initiatives:

• Create opportunity for employee feedback
• Donations to charitable organizations

SOCIAL

THEMES & GOALS

• Employee wellbeing and engagement

Improve employee health, safety, wellbeing (11/8)

• Diversity and social equity

Increase diversity in the workforce (10/0)

• Community wellbeing

Involvement in community projects (13/9)

Involvement in international projects (11/7)

Raise customer awareness of sustainable development issues (9/3)

5 QUESTIONS

OUTLINE OF AIRLINES

1.What does CSR stand for and what is it useful for?

2. What are the positive impacts of Air travel ?

3.What are the negative impacts of Air Travel ?

4. Outline 2 Social and 2 Environmental Themes and Goals in which the airline industry strives to achieve ?

5. What was the main limitation of the article in relation to the findings and results?

The Adoption of Corporate Social Responsibility Practices in the Airline Industry

REPORTING & CONCEPT LIMITATIONS

• Research conducted in 2009

• ONLY 14 Air lines used

• Limited research on CSR practices on Air line industry

• Limited studies addressing all 3 dimensions of CSR

INTRODUCTION

• What is CSR?
• CSR & the Airline Industry
• Positive & Negative Impacts
• Article overview
• Social & Environmental Themes, Goals & Initiatives

• KLM Royal Dutch Airlines Corporate Video - Social Responsibility _ Sustainable Development

RESEARCH METHODOLOGY

Sharon, Nadishka & Manoj

• Air lines from 3 major strategic alliances were used. Namely Star alliance, One world and Sky team.

• 14 Air lines were selected.

• Each had ANNUAL CSR reports as of 2009, which were published online in English.

• Qualitative content analysis was used to analyze the data.

• The CSR were grouped into TWO main dimensions. Namely, ENVIRONMENTAL & SOCIAL IMPACTS.

• This was further broken down to 11 THEMES based on major themes of sustainability, CSR drawn from global reporting initiatives, UNEP & WTO.

WHAT IS CSR?

"CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large" (WBCSD 1999)

FIGURES AS OF 2014

• Industry turnover = 794.86 billion (International Air Transport Association 2014)

• By 2015 half of the annual destruction of Ozone will be related to air travel. (UNEP)

• Number of Int. travel expected to rise from 594 mil in 1996 to 1.6 billion by 2020.

PURPOSE OF THE ARTICLE

Negative Impacts

AIRLINE INDUSTRY & ITS IMPACTS

FIGURES AS OF 2008

CSR & AIRLINES

2 OBJECTIVES

POSITIVE IMPACTS

• Green house emissions = 3-5 %
• Total aviation fuel consumption increase = 3% p.y
• Industry turnover = 307 Billion (2000)

• Climate change
• Air pollution
• Noise pollution
• Loss of Biodiversity
• Waste Generation
• Economic Leakages

The literature on CSR and the air line industry describes the difficulty in measuring CSR adoption and management due to the lack of standardized measurements and differing reporting structures. It further recommends the development of a universal framework that would allow for the evaluation and comparison of the state of CSR among different airlines.

1. To create a framework of CSR goals and initiatives in the airline industry to allow comparison of the adoption of CSR initiatives across different airlines

2. Evaluate the overall adoption of identified CSR goals and initiatives among the industry leaders on the basis of their current reporting practices.

• Increase in Tourism
• Increase in Business Travel
• Sharing of Knowledge and Experience
• Provides mobility for people, specially in remote areas
• Creates jobs and revenue
• Increase in foreign travel exposes more people to new cultures and experiences