British Airways Competitive advantages and Corporate Social Responsibility

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TABLE OF CONTENTS

CHAPTER 2: LITERATURE REVIEW1

An approach towards Corporate Social Responsibility1

History of CSR3

British Airways' position on climate change4

British Airways Governance4

Environmental Compliance Group5

Climate Change5

Securing a global sectoral policy regime6

Carbon Efficiency7

Fuel and emissions reductions7

New Aircraft Coatings8

Waste Management8

Biodiversity9

Voluntary Carbon offset scheme10

Corporate Safety10

Safety Strategy11

Staff Safety Performance11

The activities that British Airways are not performing12

Effects of CSR on Financial Performance12

The importance of Corporate Social Responsibility15

British Airways Corporate Social Objectives16

Importance of Profit Maximisation in terms of BA's CSR objectives17

Measurement of the British Airways contribution of CSR to competitive advantage18

Growth18

Diversification19

Improving Corporate Image20

How B.A is ahead as compare to other airlines21

Measurement of British Airways business intangible value21

Organisational culture22

The level of production, income, expenditures and efficiency of work22

Future Developments regarding CSR Objectives23

Availability of Information24

Conclusion25

REFERENCES26

CHAPTER 2: LITERATURE REVIEW

An approach towards Corporate Social Responsibility

Corporate Responsibility is a key part of the company's business plan. Despite the current economic uncertainties, at British Airways, they have fully protected the level of resources to maintain commitment to One Destination, the Corporate Responsibility programme. British Airways has led the airline industry in setting ambitious and challenging targets, including a carbon efficiency target, an absolute emissions reduction target, noise reduction targets, targets to improve the level of recycling and fund raising targets for Flying Start. British Airways' commitment to Corporate Responsibility is also demonstrated through innovation and creative thinking on issues of sustainability (Bowman, 1975, 58). For example, this includes the partnership on bio-fuel development with Solen a, a US technology company, the joint bio-fuel testing programme with Rolls-Royce, aircraft trials with low friction coatings to improve fuel consumption and the Forest Footprint Disclosure (FFD) initiative, where they measure and take action to reduce the impact on deforestation, a leading cause of global carbon emissions. There are four important factors related to this approach (Abbott, 1979, pp. 501-515).

(a) Environment

The Environment strategy focuses on assessing and minimising the impact of their business on the environment. The key areas of focus are climate change, air quality, aircraft noise, waste management and fuel efficiency. They also work closely with policy makers to influence the development and implementation of effective environmental regulation.

(b) Community

The Community strategy focuses on delivering financial and humanitarian support to numerous initiatives in the UK and in many of the countries that they serve. The team focuses on education programmes, conservation and community projects and Flying Start (Alvesson, 2000, pp. 1125-1149).

(c) Marketplace

The Marketplace strategy responds to customer demand for more responsible air travel with particular attention given to recycling, carbon offsetting and supply chain sustainability. Work is carried out to ensure they manage and audit the suppliers and that Corporate Responsibility principles are adopted throughout the customer journey. Parallel to this, the Diversity team ensures that particular attention is paid to the customers with additional needs and mobility issues (Auger, 2003, pp. 304).

(d) Workplace

The Workplace strategy aims to integrate Corporate Responsibility principles throughout the organisation. The diversity team provides training and advice on discrimination laws, promotes inclusion and works to eradicate ...