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Viola Wendel

on 21 January 2014

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Transcript of Lufthansa

1. The company
2. Company Figures
3. Operating industry
4. CSR strategy
4.1 Reference to European
4.2 Friedman
5. Corporate Citizenship
6. Conclusion
The Company
The Lufthansa Group is an aviation group with global operations and a total of more than 400 subsidiaries and associated companies.

Divided into 5 business segments:
Corporate Social Responsibility
"The responsible handling of people and the environment is an integral component of the corporate philosophy and a significant success factor for the Lufthansa Group."
Christoph Franz
Chairman of the Executive Board of Deutsche Lufthansa AG
Corporate Social Responsibility
Economic Sustainability
Social responsibility
Corporate Citizenship
Climate and Environmental Responsibility
Corporate Governance and Compliance
Corporate Responsibility Council (CRC)

interdisciplinary/ interdepartmental committee situated at upper management level
Stakeholder Dialogue
Sustainability report "Balance"
Profit Orientation
Group strategy rests on four pillars
increasing company value

expanding the leading market position of airlines and service companies by actively
shaping the aviation industry

continually improving customer satisfaction with product and service quality, technology and safety

running an
economically and ecologically sustainable

Social Commitment
Social Commitment
Special projects
Cultural Commitment
Environmental Sponsorship
Sport Sponsoring
Lufthansa supports the Gürzenich Orchestra (since 2010)
Lufthansa Festival of Baroque Music: Enables artists, choirs and orchestras to work together
New Year's Concert in Berlin (since 1997)
Lufthansa sponsors
young elite athletes
with the German
Sport Aid Foundation
founded in 1999 by employees
international projects: hospitals, schools, orphanages, start ups
financial and logistical means
medical help for people in Nairobi
founded with German physicians
tickets for physicians and transport of medical equipment
Humanitarian aid
during the Typhoon
in the Philippines
The company invests in the latest technology to help the environment
Christoph Franz
CEO of the Deutsche Lufthansa AG
"Less fuel consumption, less CO2 emissions and less noise: The aircraft on order will enable us to make a quantum leap in efficiency."
Thanks for your attention!
"The European Commission has previously defined Corporate Social responsibility as a concept

whereby companies integrate
social and environmental concerns
in their business operations

and their interaction with their

CSR and the European Commission
Public Procurement
Corporate Social Responsibility at Lufthansa
Sofía Aranda
Lea Freidhof
Viola Wendel
Stéphane Xu
Fernando Limma

Business Ethics
1. Passenger Airline Group
2. Logistics
is one of the world’s leading independent providers of aircraft-related technical services.
4. Catering
3. MRO
5. IT Services
Member of:
- leading global
airline network
for customers
- shorter
of travel

1920's- 1940's
- Deutscher Aero Llyod and Junkers Luftverkehr joined to found “Deutsche Luft Hansa AG” (Public Company)

- In the middle of the war, the government obligated Lufthansa by law to provide services, transport flights and technical operations.

- Two companies named Deutsche Lufthansa took to the skies – one on each side of the Iron Curtain.

- Reunited Germany, Lufthansa returned to Berlin.

- Lufthansa founded with other airlines the Star Alliance and was fully privatized (1997).

- Some other airlines are integrated to the group.
The Lufthansa Group had 117,000 employees by the end of 2012, and achieved total operating revenue of EUR 30.1 billion for the year, increasing its revenue by 4.9%.
. B2B . Services . Competitors
. B2C . Industries

Lufthansa’s business structure

Lufthansa Cargo AG
, cargo airline that operates worldwide
--> Lufthansa Charter, efficient booking for tour operators
Swiss International Airlines and Air Dolomiti

Commercial partnerships:
Star Alliance, cooperation between different partnered airlines (Miles, connections, …)
Technological partnership:
Amadeaus : Booking reservations management

- Companies, business traveling of their employees

- Traveling agencies, hotels, car locations: cooperation

- Maintenance and Engineering of the carriers

- Catering (food and drinks)

B2B, “Business-to-Business”

- Flights with rewards programs (“miles”)

- Hotels booking (special offers, “Angebot”)

- Car locations (the easiest way of transportation)

- Insurances

B2C, “Business-to-Consumer”

Microsoft partner (competence in communication, data platform, messaging and collaboration)

--> Efficiency, reduced costs and increasing profits

Lufthansa’s Services

- Airlines
- Airports
- Industry infrastructure (Engineering)
- Transportation and logistics

- Media and publishing

- Tourism

- Energy

- Healthcare and Human resources

Lufthansa’s industries

Main competitors in intercontinental traffic:

Air France – KLM
IAG: International Air Group (fusion of British Airways and Iberia)
US carriers (Delta and American Airlines)
Fast growth of Gulf region (Emirates, Qatar Airlines, …)

Commercial partnership competitors:
SkyTeam and oneworld

Main competitors in Europe:

Low-cost carriers (Ryanair and Easyjet)
Air Berlin


risk and opportunity management system
Environmental Strategy 2020
Self- Regulation
Milton Friedman:
"The Social Responsibility of Business is to increase its profits"
"There is only one social responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."
CSR as a way of "generating goodwill as a by- product of expenditures that are entirely justified in its own self- interest"
"hypocritical window- dressing"
"Business as a whole cannot have responsibilities".
"Of course, the corporate executive is also a person of its own right. As a person, he may have other responsibilities that he recognizes or assumes voluntarily. (...) But in these respects, he is acting as a principal, not an agent; he is spending his own money or time or energy. (...) If these are 'social responsibilities', they are social responsibilities of individuals, not of business."
Any Questions?
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