CSR AND AIRLIE INDUSTRY

CSR and Airlie Industry

CHAPTER 1: INTRODUCTION

Background of study

Corporate social responsibility (CSR) constitutes an economic phenomenon of significant importance. Today, firms largely determine welfare through producing goods and services for consumers, interest for investors, income for employees, and social and environmental externalize or public goods affecting broader subsets of society. Stakeholders often take account of ethical, social, and environmental firm performance. On one hand, this changes the nature of strategic interaction between profit-maximizing firms, however, on the other hand it impact utility-maximizing individuals.

Over the last two decades, the concept of social corporate responsibility and customer relationship management has captured significant attention of public, corporate, and management leaders worldwide

Problem Statement

This paper discusses about the importance of cooperate social responsibility and the role played by airline industry. The problem statement that shall be used as primary parameter for the purpose and analysis is “Airline industry, in the context of Corporate Social Responsibility”.

Research Aims and Objectives

The main aim of this research is to identify the corporate social responsibility in respect to airline industry. There are four main objectives which are:

How do we measure the Airline industry contribution of CSR to competitive advantage?

How do we measure Airline business intangible value?

How it helps to stimulates production, increases income, lowers expenditures of airline industry and enhances the efficiency of work?

Rationale

The practice of corporate social responsibility is a subject of debate and criticism and widespread. Proponents argue that there is strong demand for the issue of social responsibility of businesses, and companies that benefit in many ways by working with a broader perspective and longer than their own direct, any short-term profits.

CHAPTER 2: LITERATURE REVIEW

Implementation of CSR in the company

Currently there are increasing pressures for companies to improve their social and environmental performance. These are manifested mainly in the external market demands through increased standards and technical standards, product consumers more demanding pressures of civil society and media of information more powerful as well as governments with more stringent internal standards (Abbott 1979,501).

Laws and regulations involving fines and stiffer penalties for breach, the increasing scrutiny of the public interest, means of communication more aggressive and better able to disseminate information, increase the vulnerability of companies to damage their image and a reputation for irresponsible behaviour in the social and environmental. Likewise, companies that do not worry about issues of transparency to its shareholders and respect for human rights in their supply chains may be exposed to financial scandals or trade boycotts.

The tendency to report social and environmental performance by companies is becoming stronger, helping to increase levels of transparency and accounts of companies with their shareholders and society in general. This is because a better social and environmental performance can translate into improved competitiveness and better economic performance of firms and consequently an increase in its value (Alvesson 2000,1149).

The classification of corporate social responsibility

Corporate social responsibility can be divided into two categories, one is reactive corporate social responsibility, and the other is strategy-based corporate social ...