Corporate Social Responsibility In British Airways Management Essay

Corporate tender Responsibility In British crease representations commission EssayIntroductionThis assignment concerns with an examination of logical argument ethics in British Airways (BA) and in foundericular an event that happened in August, 2005, with it catering asseverator, door epicurean.The objectives of this assignment beTo examine BAs approach towards CSR.To run into out whether entry bon vivant employees atomic image 18 part of BAs s canvasholders.To explain the negatively charged outcomes.To explore ethical issues involved in the particular of outsourcing.The objective of this assignment will be accomplishd by using the theories, thoughts of patronage ethics.This assignment discuss about a number of interesting conclusions on how BA muckleles CSR and the particular riddle with supply Gourmet.(2.1) Introduction about British Airways (BA)The British Airways group consists of British Airways plc and a number of marcher companies including British Airwa ys Holidays Limited.British Airways is one of the worlds leading air hoses with a profits that hand overs passenger and freight treat to 149 destinations in 72 countries. In 2004/05, British Airways carried over 35 billion passengers and nearly 900,000 tonnes of weight. Its air nervous strain 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 atomic number 18 the operation of international and domestic scheduled air services for the carriage of passengers, freight and mail and the provision of ancillary services.British Airways airline network generates economic value by meeting the demand for moving in go away, by offering vital arteries for trade and investment, as well as providing leisure travel opportunities for individuals and families. at that place vision is to become the worlds most accountable airline and they confine recognized that this is best achi eved by ensuring their flying use is sustainable. They start genuine a series of strategical goals and patterns to deliver that vision.There are s incessantlyal reasons why British Airways chose to engage in CSR. The first base is because it is a tool to help achieve the companys long destination strategic goals in providing upgradeth opportunities more or less Heathrow airport. Secondly, improving business efficiency and reduce costs through wild and energy programmes provided a strong business case for CSR. The company withal thought CSR could help them with risk vigilance by identifying risks to health, safety and milieu that could hinder its opportunity to attract investors and grow the business. Lastly, it recognised that it needed to act to enhance its incorporate reputation, and customer feedback (both corporate and from the general public) revealed that they expected British Airways to do the right thing.Its approach has withal been influenced by the recognit ion that airlines generate major affable and economic benefits, exclusively withal have significant impacts on the environment (for example, through mental disorder and air quality) and on communities nigh airports.In developing its climate motley Programme, British Airways has had to overcome several quarrels, hardly about of which still remain. The political environment in which the company operates harbours umpteen different views on temper limiting and in that location are different levels of awareness surrounding the topic. This think abouts that airlines take different views, as do governments. In the UK the government (through its White theme on zephyr) has made it clear that expanding the aviation fabrication 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 analysis and may not have such clarity on the issue. Another ch onlyenge to th e company was the cost implication of taking action when others at bottom the industry were notRef www.britishairways.com2.2. trine Bottom Line Concept (TBL) trinity almost bottom line was introduced by Elkington in 1999. twofold bottom line is a unique approach to community development that integrates environmental stewardship, sustainable development and social justice.The triple bottom line is made up of social, economic and environmental the people, 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 animate natural, cultural, historic and community resources.The Triple Bottom Line standards for scotch (Profit).Social ( good deal).Environment (Planet).Economic (Profit)This is more about making a reliable profit than raking a profit at any cost it moldiness be made inh armony with the other two principles of People and Planet. While many major corporations used to sneer at the thought process of a Triple Bottom Line reporting system. With a irrefutable flow on effect to their suppliers. Because supply range of a functions are similarly accountable to the over exclusively impact of a company.A narrow concept of economic sustainability focuses on the economic performance of thecorporation itself the function of centering is develop, produce and market thoseproducts that secure long-term economic performance for the company. This includes a focuson strategies that lead to a long term fancy up 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 in like manner known as Human Capital. It really just means treating your employees right, further furthermore also the community where your business operates. In this part of the Triple Bottom Line model, b usiness not only ensures a beauteous days work for a fair days pay provided also plods back many of its gains into the surrounding community through sponsorships, largess 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 sustentation that many of us have enjoyed in that respect are growing disparities of income and wealth 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 minimize its ecological impact in all areas from sourcing raw materials, to production processes, to shipping and administration. Its a cradle to strike approach and in some cases cradle to cradle i.e. taking some responsibility for goods after theyve been sold for example, offering a cycle or take back program.The importance of Triple Bottom Line re ports areEconomic gains Jobs created, Small businesses started or expanded, environmentally responsible 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/ peeing resources protected working lands local anaestheticly-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 carbon trading, Clean teaching Mechanism(CDM) credits and potentially credits from Reducing Emissions from Deforestation and forest humiliation (REDD) in developing countries. British Airways is playing a leading contribution within the aviation industry in developing and promoting proactive solutions for post-Kyoto aviation policy, through the International Air Transport Association (IAT A), 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 airlines to participate on an equal root. Carbon allowances are allocated in part by auctioning, with the resulting revenue being collected by a UN personate and directed to specific 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 EducationandYouthDevelopment, Supporting our Colleagues, Environment, sustainable Tourism and Heritage. The Community and Conservation started in 1984 they provide these pro jects in and around the world.Many of BA staffs are involved in Charity work in and oversea as the part of the charge they support their staffs in their charitable work. a couple of(prenominal) charity services mentioned downstairs.1) The BA community volunteering awards.2) BA giving scheme.3) BA fun runs for Cancer research UK.4) Action for highway children volunteer programme. transfigure 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 order of battles from our customers. There are also collection points across BritishAirways offices so our colleagues can also donate 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 in effect. They minimize their impact through the latest technology in cluding airframes, engines and substitute(a) fuels.To achieve this strategy they have developed a Comprehensive programme,Climate change there overall strategy is to ensure we fully present our share of planetary carbon dioxide emission 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) deductionBritish Airways use the approach of CSR They truly believes now they have all the vital elements in place to deliver their overall vision of comely 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 th at it has a broad goal set which necessitates adding environmental and social value too.To understand the components of sustainability which represents its unavoidable for to us to examine them separately. The components are divided into three.Economic.Social.Environmental.ECONOMIC locatingWhen there was a dispute 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 eon where the BA went on tremendous loss and decided to hire unsanctioned labour.As this strike went on the middle 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 very energetic and professional workforce, the 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 regenerate 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) Th e 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 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 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 globose carbon dioxide emission reductions by 2050.Waste f ocus 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 britishairways.com3. Explanation about Gate Gourmets is also part of BAs stakeholder? utilise Corporate Social responsibility theory.Before we discuss about this guinea pig we should understand the definition 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 terms 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 order 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 because 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 likely to determine the importance of stakeholders.It also called strikingness of StakeholderP ower 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 degree to which stakeholder claims are conceived to call for contiguous 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 given 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 red-brick practise of outsourcingEthical issues of involved in modern practice of outsourcing explained by sheffi in 2005 and Emmelhainz and Adams in 1999.Sheffi said that companies 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 poor 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 protracted 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 survey of an extend chain of responsibility.Once it was perfectly acceptable to argue that the ethics of a fi rms suppliers, or a firm impact on its competitors, was but 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 used as a conduct for ethics management and regulations.(Pedro Longart, Lecture hand-outs, 2009)