Corporate Social Responsibility In British Airways Management Essay

Corporate Social Responsibility In British Airways Management EssayIntroductionThis identification concerns with an examination of business ethics in British Airways (BA) and in particular an event that happened in August, 2005, with it catering affirmer, Gate Gourmet.The objectives of this designation atomic number 18To examine BAs go round towards CSR.To find out whether Gate Gourmet employees are part of BAs stakeholders.To explain the negative outcomes.To explore ethical step to the fores mixed in the particular of outsourcing.The objective of this assignment will be achieved by using the theories, excogitations of business ethics.This assignment discuss about a number of interesting conclusions on how BA handles CSR and the particular riddle with Gate Gourmet.(2.1) Introduction about British Airways (BA)The British Airways group consists of British Airways plc and a number of subsidiary companies including British Airways Holidays Limited.British Airways is one of the worlds ahead(p) airlines with a network that provides passenger and shipment services to 149 destinations in 72 countries. In 2004/05, British Airways carried over 35 million passengers and nearly 900,000 tonnes of cargo. Its airline network is centred on the United Kingdom, where 85% of its 47,500 workforce is based. The main activities of British Airways Plc and its subsidiary undertakings are the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the pro quite a little of ancillary services.British Airways airline network generates economic value by meeting the demand for business travel, by offering resilient arteries for trade and investment, as well as providing leisure travel opportunities for individuals and families. on that point vision is to become the worlds most trusty airline and they commit recognized that this is opera hat achieved by ensuring their flying activity is sustainable. They obligate d eveloped a series of strategic goals and plans to deliver that vision.There are some(prenominal) reasons why British Airways chose to engulf in CSR. The first is because it is a tool to help achieve the federations long term strategic goals in providing growth opportunities well-nigh Heathrow airport. Secondly, improving business competency and reducing costs through waste and energy programmes provided a strong business case for CSR. The company in addition thought CSR could help them with risk commission by identifying risks to health, safety and environment that could hinder its opportunity to attract investors and grow the business. Lastly, it recognised that it needed to act to enhance its corporate reputation, and customer feed patronise (both corporate and from the widely distributed public) revealed that they expected British Airways to do the right thing.Its come has also been influenced by the recognition that airlines generate major social and economic benefits, but also pay back significant impacts on the environment (for example, through noise and air tonus) and on communities around airports.In developing its Climate Change Programme, British Airways has had to overcome several challenges, some of which still remain. The political environment in which the company operates harbours many different views on climate change and on that point are different levels of sensation surrounding the topic. This means that airlines take different views, as do governments. In the UK the government (through its White Paper on aviation) has made it clear that expanding the aviation exertion will mean that the industry has to deal with environmental issues. However, the governments of many European countries have non gone through such detailed consultation and epitome and may non have such clarity on the issue. An separate challenge to the company was the cost implication of taking action when others within the industry were notRef www.britishairw ays.com2.2. Triple Bottom Line Concept (TBL)Triple bottom line was introduced by Elkington in 1999. Triple bottom line is a unique attempt to federation development that integrates environmental stewardship, sustainable development and social justice.The triple bottom line is made up of social, economic and environmental the slew, planet, profit phrase was coined for shell by sustainability.Triple Bottom Line efforts are as varied as the organizations and communities in our state wide network. This approach is flexible and innovative, creating new economies that protect, enhance and restore natural, cultural, historic and lodge resources.The Triple Bottom Line standards forEconomic (Profit).Social (People).Environment (Planet).Economic (Profit)This is to a greater extent about making a honest profit than raking a profit at any cost it must be made inharmony with the other two principles of People and Planet. While many major corporations used to sneer at the idea of a Triple Bottom Line reporting system. With a positive flow on effect to their suppliers. Because supply cosmic strings are also accountable to the boilers suit impact of a company.A narrow concept of economic sustainability thinkes on the economic per boundance of thecorporation itself the responsibility of management is develop, produce and market thoseproducts that secure long-term economic performance for the company. This includes a focuson strategies that pull up stakes to a long term rise in share price, revenues and market share rather than short term explosions of profits at the expense of long term viability.Social (People)This is also known as Human Capital. It really just means treating your employees right, but furthermore also the community where your business operates. In this part of the Triple Bottom Line model, business not only ensures a fair days work for a fair days pay but also plods back some of its gains into the surrounding community through sponsorships, donatio n or projects that go towards the common good.The key issue in the social perspective of sustainability is that of social justice .Despite the impressive advances in standards of living that many of us have enjoyed there are growing disparities of income and wealthiness within many countries. In a more just an equitable world, living standards will lead to more economic prosperity.Environment (Planet)This is Natural Capital. A business will strive to diminish its ecological impact in all areas from sourcing raw materials, to production processes, to shipping and administration. Its a cradle to grave approach and in some cases cradle to cradle i.e. taking some responsibility for goods after theyve been sold for example, offering a recycling or take back program.The importance of Triple Bottom Line reports areEconomic gains Jobs created, Small businesses started or expanded, environmentally obligated industries engaged, Poverty reduced or alleviated.Social improvements people of collar or low-wealth engaged educational systems improved racism dismantled power shared.Environmental stewardship land/water resources protected working lands locally-owned water quality improved native plants and herbs propagated.2.3. Economic responsibilities of BA.Aviation must be perfection within the overall climate framework with open access to cost-effective market-based instruments including coke trading, Clean Development Mechanism(CDM) credits and potentially credits from Reducing Emissions from Deforestation and forest Degradation (REDD) in developing countries. British Airways is playing a leading reference within the aviation industry in developing and promoting proactive solutions for post-Kyoto aviation policy, through the International Air Transport Association (IATA), Association of European Airlines (AEA) and a dedicated group of companies called Aviation Global Deal (AGD).The AGD proposal is a sector-wide policy based on carbon trading that requires all airline s to come in on an equal basis. Carbon allowances are allocated in part by auctioning, with the resulting revenue being collected by a UN body and directed to special(prenominal) environmental projects in developing countries. In this way the proposal meets both the competitiveness and common but differentiated responsibilities (whereby developed countries agree to take the lead on addressing climate change) principles.2.4. Social responsibilities of BA.British Airways offer support in the form of funding, free flights, excess baggage, merchandise, cargo space and fundraising events. Our priorities for support are genteelnessandYouthDevelopment, Supporting our Colleagues, Environment, Sustainable Tourism and Heritage. The Community and Conservation started in 1984 they provide these projects in and around the world.Many of BA staffs are involved in Charity work in and abroad as the part of the management they support their staffs in their charitable work.Few charity services ment ioned below.1) The BA community volunteering awards.2) BA giving scheme.3) BA fun runs for Cancer research UK.4) Action for street children volunteer programme.Change for Good is promoted by onboard announcements and the showing of an onboardvideo. There arenearly 2,400 BritishAirways cabin crew members who co-ordinate the onboard collections from our customers. There are also collection points across BritishAirways offices so our colleagues can also gift to the programme.E.g. UNICEF.2.5. Environment responsibilities of BA.BA was the first airline to report to the Environmental performance. This can be called one ofthe strategies of BA. They help in minimizing the cost travel more effectively. They minimize their impact through the latest technology including airframes, engines and alternative fuels.To achieve this strategy they have developed a Comprehensive programme,Climate change there overall strategy is to ensure we fully contribute our share of global carbon dioxide emissio n reductions by 2050Waste there focus on reducing, reusing, recycling and responsible disposal of there wasteNoise reducing our impact on local communities around the airports they serve.Air quality improving air quality for communitys around the air ports they serve.(2.6) ConclusionBritish Airways use the approach of CSR They truly believes now they have all the vital elements in place to deliver their overall vision of becoming the worlds most responsible airline.Ref www.britishairways.comBAs approach towards corporate social responsibility using Triple Bottom Line.Triple bottom line was introduced by Elkington in 1999. According to him TBL represents the idea that business does not have just one single goal-namely adding economic value but that it has a extended goal set which necessitates adding environmental and social value too.To understand the components of sustainability which represents its necessary for to us to examine them separately. The components are divided into three.Economic.Social.Environmental.ECONOMIC PERSPECTIVEWhen there was a fray between Gate Gourmets and BAs there were 100,000 passengersWhose flights were cancelled they suffered because the tickets which the passenger purchased were not reimbursed nor transferred to the other flights. The strike had cost almost 50 million which brought disturbance to more than 100,000 passengers.Thousands of employees who went on strike which caused disturbance to the passengers as the flights were cancelled. This was the season where the BA went on tremendous loss and decided to hire unofficial labour.As this strike went on the nub of the summer season were in there were lot of passengers who had to travel back home and were N number of visitors coming in ,this also could be a reason for BA to go under Bankrupt. The employees were aware of the situation and they had a upper hand to the situation.There were few Employees who even argued We have a truly hardworking and professional workforce, th e current situation is very much an exception to that rule. And the restructuring plan resulted in thousands of job losses. But the restructuring undoubtedly led to financial success. However, they have to still work on full loyalty of its employees to match its renewed financial success.SOCIAL PERSPECTIVEBritish Airways offer support in the form of funding, free flights, excess baggage, merchandise, cargo space and fundraising events. Our priorities for support are The Community and Conservation started in 1984 they provide these projects in and around the world.Many of BA staffs are involved in Charity work in and abroad as the part of the management they support their staffs in their charitable work.Few charity services mentioned below.1) The BA community volunteering awards.2) BA giving scheme.3) BA fun runs for Cancer research UK.4) Action for street children volunteer programme.Change for Good is promoted by onboard announcements and the showing of an onboard video. There aren early 2,400 BritishAirways cabin crew members who co-ordinate the onboard collections from our customers. There are also collection points across BritishAirways offices so our colleagues can also donate to the programme.E.g. UNICEF.ENIVORNMENT PERSPECTIVEBA was the first airline to report to the Environmental performance. This can be called one of the strategies of BA. They help in minimizing the cost travel more effectivelyThey minimize their impact through the latest technology including airframes, engines and alternative fuels.To achieve this strategy they have developed Comprehensive programmesClimate change there overall strategy is to ensure they fully contribute their share of global carbon dioxide emission reductions by 2050.Waste focus on reducing, reusing, recycling and responsible disposal of waste.Noise reducing our impact on local communities around the airports they serve.Air quality improving air quality for communities around the airports they serve.Ref britishai rways.com3. exposition about Gate Gourmets is also part of BAs stakeholder? Using Corporate Social responsibility theory.Before we discuss about this matter we should understand the commentary of whom the employee is and who the contractor is. Employee is a person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business.Contractor is a person or business which provides goods or services to another entity under impairment specified in a contract. Unlike an employee, a contractor does not work regularly for a company.Contractors are not a part of company shareholder, how ever it has been argued that contractors are not legitimate shareholders of a client. However, in establish to find out whether this is the case the concept of salience of stakeholders will be used.Stakeholder is a Person, group, or organization that has direct or indirect stake in an organization becaus e it can affect or be affected by the organizationHYPERLINK http//www.businessdictionary.com/definition/organization.htmlHYPERLINK http//www.businessdictionary.com/definition/organization.htmls actions, objectives, and policies. Stakeholders are shareholders, customers, creditors, suppliers, employees, government and community of an organization. Gate Gourmet is a food supplier for British Airways. This means they are the stakeholder of BA. Stakeholder plays a vital role for an organization. It is very important to assess stakeholder importance in order to manage these stakeholders. Mitchell et al (1997) suggest there are three key relationship factors seeming to determine the importance of stakeholders.It also called Salience of StakeholderPower The conceived ability of stakeholder to influence organizational action.Legitimacy Whether the organization conceives the stakeholders actions to be readable, proper or appropriate.Urgency the stratum to which stakeholder claims are co nceived to call for immediate actions.Ref britishairways.com Pedro Longart, Lecture hand-outs, 20094. Negative outcome of the Strike.There were lot of negative outcomes arises due to this industrial disputes at British Airways (BA).In order to understand this problem we have to analyse about the shareholders.In this dispute Gate Gourmet staff became key players. The negative outcomes of this strike are attached belowThe British Airways had cancelled over 700 flights and lost an estimated 30 million as a result.100,000 passengers had their journeys disrupted. With some delayed for days.It can be concluded BA strike happen because the importance of Gate Gourmet employee became key players. They were not put their attention. Because of that problem was arising.Ref britishairways.com5. Ethical Issues involved in the modern exert of outsourcingEthical issues of involved in modern practice of outsourcing explained by sheffi in 2005 and Emmelhainz and Adams in 1999.Sheffi said that comp anies should never rely in contractor should either have used more than one creator. Otherwise, the relationship should be closer so that the companies knows more about what contractors is doing.He also explained that some firms, like banks have been criticised for wretched customer support from outsourced Indian called centers, also Nike and Gap have been attacked over the sweatshops allegedly operate by some of their suppliers.He said outsourcing an activity does not mean it is no longer a firms problem.Emmelhainz and Adams said as there is a shift towards global supply and competition individual firms appear to be faced with the prospect of an extend chain of responsibility.Once it was perfectly acceptable to argue that the ethics of a firms suppliers, or a firm impact on its competitors, was simply not any of its business, this no longer seems to be the case. Hence, corporation have to take their ethical responsibilities much more broadly. Therefore the supply chain has to be u sed as a conduct for ethics management and regulations.(Pedro Longart, Lecture hand-outs, 2009)