Critically Analyze Different Approaches To Corporate Social Responsibility

Executive Summary

The current report tends to discuss about importance and significance about Corporate Social Responsibilities and the way through which companies can ensure higher standards of business competitiveness. This report has therefore focused towards the analysis of CSR activities in Aviation industry by selecting three of the most important aviation companies. These includes Qatar airlines, Singapore airlines and Emirates airlines. All these companies have incorporated the CSR activities in their respective fueled of business operations that helps in widening the scopes for overall business competitiveness.

Table of Contents

1.0. Introduction. 3

2.0. Industry Overview and Scopes. 4

3.0. Selection of 3 Key companies from the aviation industry. 5

3.1. Qatar Airways. 5

3.2. Emirates Airlines. 5

3.3. Singapore Airlines. 6

4.0. Definition of CSR and its importance. 7

5.0. Critical evaluation of CSR and it’s characterized in the chosen industry. 9

6.0. Discussion on globalization and shock events that influences the nature and scopes of CSR objectives  12

7.0. Summary. 14

References. 15

1.0. Introduction

Today with the rise of a competitive business environment, companies are actively working towards proper sets of policy and procedure development to ensure a higher degree of business development. It not only helps in widening the business competitiveness to integrate social and environmental perspectives in overall business practices in interactions with their stakeholders. The concept of corporate social responsibility is becoming a major issue and factor for contemporary companies to succeed and achieve business objectives. It remains an important component for the companies to operate in a way that strategically helps in demonstrating social responsibilities. It is not a legal and necessary requirement for the companies to enhance the business operations but also strategically works towards taking into consideration social and environmental issues.

Corporate Social Responsibilities in this respect not only helps in widening the scope for ensuring higher standards of business competitiveness but also works towards meeting the careful considerations of human rights, communities, environment, and the geographic location in which the specific company is operating. The current paper is therefore focusing on the identification and the analysis of diversified scopes of Corporate Social responsibility. For the same, this paper has selected three different organizations like Qatar Airways, Emirates Airways, and Singapore Airlines from the Aviation industry to understand and to discuss the factors more firmly and appropriately.

2.0. Industry Overview and Scopes

The aviation industry is one of the most popular and diverse sectors in the contemporary communication and transportation sector. It not only widens the scope for ensuring higher standards of business competitiveness but also provides better scopes for service delivery to the customers. The global airline industry strategically includes airlines that transport passengers over the scheduled or unscheduled routes, in both the domestic as well as in the international destinations (Iata, 2020). Each of these factors not only widens the scope for enhancing the global communication and transportation industry more rapidly. Following the worst year recorded in aviation history, 2020 has forced the industry to 66 percent in the global RPK. Moreover, as forecasted, the industry will also lose about US$52 billion in 2021 and US$12 billion in 2022. To reduce the losses, the industry is also working towards cutting its costs by 31 percent in 2021 as against the operations costs in 2019 (Statista, 2021).

Within the framework of the global airline sector, there are three different segments that are in operation. These include mainline, which opiates in the main global transportation routes, pr a regional airline which generally operates in the regional business and travel routes with shorter distances and the passenger airlines which are low-cost careers, which also strategically provides basic and less expensive services to broader ranges of customers throughout the globe. Some of the global airline companies include Delta Airlines, American Airline groups, Emirates Airlines, British Airways, Lufthansa. The total global airline industry was estimated to be about US$359.3 billion in 2020. It was estimated that the industry will reach about US$471.8 billion at the end of 2021, which was severely hampered by the coronavirus outbreak (Statista, 2021). Moreover, the global airline revenue has also grown at a strategic annual financial profit rate of around “5.3 percent between 2009-2012 that reached about US$838 in 2019” (Statista, 2021).

3.0. Selection of 3 Key companies from the aviation industry

3.1. Qatar Airways

Qatar Airways, founded in the year of 1993 in Doha, Qatar is one of the most advanced and luxury airlines in the global aviation industry. The company has received about QAR14.9 billion (the U.S.$4.1 billion) loss in the financial year of 2020-2021 (Qatar airways, 2021). This is because of the overall growth and the global impact of Covid-19 in the global business environment. With an overall profit of QAR29,399 million in the financial year of 2020-2021. Again in the financial year of 2019-2020, the company has received QAR 51,121 million with the 250 world-class fleets of airlines (Qatarairways, 2021). Qatar airlines have over 36,000 employees from over 160 nationalities. Over the last year, the company has faced unprecedented challenges due to the rise of the Covid-19 pandemic, despite having so, the company works appropriately towards meeting the open engagement and continuous management of the workplaces to ensure safer engagement and enhancement of business competitiveness for both the customers and the employees (Qatarairways, 2021). The company during the covid-19 has also actively focused on the identification and employee welfare by making it an utmost priority through this period and they have also supported the employees affected by the pandemic through multiple ways.

3.2. Emirates Airlines

Emirates airlines, on the other hand, established in 1985 in Dubai, the United Arab Emirates has significantly contributed towards the development and enhancement of the global airline industry. Moreover, the company has also received about 81 percent to AED 24.7 billion, which is “US$3.8 billion, and a loss of AED 5.7 billion or US$1.6 billion” in the financial year of 2020-2021. Moreover, the company has also gained an extensive set of business performance through the enhancement of its annual revenue in the 2020-2021 financial year by 81 percent to AED 21.7 billion or US$3.4 billion (Emirates, 2021). This is because of the increasing customer demands and continuing strong cargo business. The company has 105,730 employees working in different departments. Due to the rapid rise of Covid-19 the company was forced to cut its employee numbers by 2 percent to an overall of 73,571 on 30 September 2021 (Emirates, 2021). This was for a very short time frame to curtail the financial impact of the pandemic on the company businesses. The company has also worked actively towards recruitment drives to support its recruitments, prioritizing and rehiring the employees who have been removed previously on furlough or made redundant.

3.3. Singapore Airlines

Moreover, Singapore Airlines, established in the year of 1972 in Singapore is also one of the most important and effective airline companies in the global business environment. The company has also received 3,450.4 million US$ in the financial year of 2020-2021, which is 73.5 percent growth from the financial year of 2019-2020 which was about US$13,012.7 million (Singaporeair, 2021). Moreover, the company carried 457,135 passengers in the financial year of 2020-2021. Singapore Airlines also has about 14,375 employees working in different departments (Singaporeair, 2021).

4.0. Definition of CSR and its importance

The concept of CSR can firmly be understood as the company’s business approaches for sustainable business engagement and development by properly delivering economic, social, and environmental benefits (Pérez et al., 2019). The concept of CSR can also be understood as the company’s commitment towards managing and enhancing both the social as well as environmental and economic impacts on the sectors in which the company is operating in a much responsible manner in line with public expectations. “CSR allows businesses to demonstrate their values, engage their employees and communicate with the public about how they operate and the choices they make, to ensure a sustainable future.”

Corporate Social responsibility also firmly encapsulates significant sectors and initiatives by which a company takes proper responsibility for the overall effects on the social and environmental benefits (van et al., 2020). From these perspectives, CSR actively works towards looking beyond the immediate benefits and impacts of the business operations to a much deeper and enhanced manner for long-term business sustainabilities. The aviation industry today is actively working towards widening its scope for enhancing the corporate social responsibility factors for overall competitiveness and something that makes the aviation industry more successful. That can also be understood through the proper policy and procedure engagement that place proper emphasis through integrated methods in social, environmental, ethical, and human rights as well as consumer concern.  In the overall operational business as well as the core business strategies more firmly and appropriately (Park, 2019). All these factors associated with corporate social responsibilities can certainly be associated with active collaboration with aviation industry stakeholders to meet the business demands and the company objectives.

Today the aviation industry is also working towards widening the scope for ensuring higher standards of business engagement and customer loyalties through a number of strategies. Overall approaches of all such factors are to widen the positive impacts of the company and its business operations on society as a whole (Font & Lynes, 2019). This is also through the adoption of created shared values for the administrative, and all other stakeholders. Hence, in the words of the “European Commission”, CSR can be defined as “the responsibility of enterprises for their impacts on society.”

The inclusion of CSR approaches in the aviation industry strategically worked towards meeting the changing customer demands and enhancement of a fair number of policy procedures to widen the scope for overall enhancement and engagement of business competitiveness. It is also understood as the “coerced into adopting CSR and did so with insufficient enthusiasm and vigor”. Such practices may also hamper the quality of policy performance and its maintenance in a much appropriate and efficient manner (Karaman et al., 2018).

It has also been observed that aviation industry companies who are very much oriented to CSR activities are very much efficient and effective to retain a higher number of customers and employee engagement and provide better scopes for overall business performance. CSR also has some of the most important and vital factors associated with the moral obligations in its implementations. These include domestic, which focuses on the enhancement and looking after to the local communities, environment, social factors and providing them the scopes for success. Secondly, the global perspectives, in which economic, security concerns also automatically have a negative impact on the overall growth and enhancement. Hence companies must also need to work towards enhancing the scope for overall obligations to protect the global business environment.

5.0. Critical evaluation of CSR and it’s characterized in the chosen industry

Qatar Airways is able to achieve the prestigious 5-start Covid-19 airline safety rating by the international air transport rating association, Skytrax. This not only helps the company to ensure its higher number of customer engagement and social development more firmly and appropriately.

Qatar airways also work towards developing a more holistic approach to sustainability across its global operations. This helps the company to maintain and prioritize its sustainability issues and to guide the operational designs regarding the allocation of resources for improving performance. By incorporating an ethical business, customer experiences, and customer safety and security. Employee Health, Safety, and Well-being, Gender, diversity, and inclusion as well as learning and development framework. These frameworks are therefore appropriately working towards widening the overall business competitiveness and ensuring efficiencies in overall competitiveness (Horng et al., 2018). The company has also incorporated seven out of 17 Sustainable Development Goals developed by the United Nations. These include “Good Health and Well-being, Quality Education, Gender Equality, Affordable and Clean Energy, Decent work and economic growth, responsible consumption and production, and Climate change” (Qatarairways, 2021).

Figure 1: SDG Goals adopted by Qatar Airways

(Source: Qatar airways, 2019)

Corporate Social Responsibility of Emirates airlines is also one of the most important and effective to ensure a higher degree of customer engagement and business performances more firmly and appropriately. The company is also actively working towards engaging diversified approaches to ensure a higher degree of business developmental opportunities. As a part of Emirates Group, the company strongly believes in the responsibility to the communities and the geographic locations to which it serves (Oyewumi et al., 2018). The company generally divides the task of its operational management into multiple formats Firstly,On the Ground, which includes Aircraft, Operations, Onboard, Biofuel. And secondly In the Air that includes Electricity, reducing, reusing and recycling, ground transport. In each of these factors, the company strongly works towards providing a higher degree of Corporate Social Responsibility procedures more firmly and appropriately (Qatarairways, 2021).

Moreover, the factors associated with the maintenance of environmental impacts continue to work towards enhanced performance enhancement. The company in this respect also uses an enhanced number of recycled products in both of its On-ground activities as well as In the Air factors. More firmly and efficiently. It also works towards developing supportive efforts around the work for improving its business as well as operational efficiencies of air traffic management and also to prove proper sets of business flexibilities and assurance of business management.  From such frameworks, the company also utilizes all the factors to protect the environment and the communities in which it operates. This is because the operational procedures that Emirates is using certainly help it to deal with changing business environments and business competitiveness (Qatarairways, 2021).

Singapore airline on the other hand also works towards maintaining and enhancing business competitiveness and ensures safer engagement of business developmental frameworks. Singapore Airlines through its core values of business operations including Excellence, Care, Safety, Integrity, Customer-focus, and Teamwork. Each of these factors has focused on maintaining higher standards of business competitiveness and widens the overall business competitiveness. Having over 168 aircraft fleets working in every major location of the world. But with the rapid rise of covid-19 and its impacts on international travel and tourism, Singapore airlines has also been forced to reduce the passenger destinations that it served previously to 46 passenger destinations more firmly and appropriately (Singaporeair, 2021). The company also utilizes its CSR activities by properly utilizing all seventeen Sustainable development Goals to meet the changing demands of the customers and the industry to retain business competitiveness. With a priority on SDGs8 12 and 13 the company. In the recent covid-19 period as well, the company is strategically able to widen its scope for the overall growth of its CSR frameworks. These include “dedicated employee support Portal, Enhanced Health and Safety Measures, Prudent Cost-cutting Initiatives to protect jobs, Job Support Program, Financial Support, Upskill, and Enrich Employees”. Each of these factors incorporated by Singapore airlines is therefore actively working towards managing the active collaboration of the employees and the customers (Singaporeair, 2021).

6.0. Discussion on globalization and shock events that influences the nature and scopes of CSR objectives

Today with the rise of business competitiveness, companies within the aviation industry are actively working towards developing wider ranges of business enhancement. All three companies are therefore investing higher standards of corporate social responsibilities to ensure a higher degree of business performance enhancement and customer engagement, Qatar airways Singapore Airlines and Emirates airlines actively work towards making global air travel safer and efficient to meet the changing demands of the customers (Emirates, 2021).

The sudden growth of Covid-19 has hampered the overall development and enhancement of business competitiveness and incorporation of enhanced CSR approaches in their respective workplaces. The temporary closure of the aviation industry due to covid-19 has forced the companies to reduce their engagement with corporate social activities to minimize the overall operational costs and reduce the losses as a whole. All three companies in this respect work towards a socially responsible manner for developing the strategies for satisfying their internal and external stakeholders. This also pressurizes the companies to ensure efficiencies and effectiveness of business competitiveness and ensures a higher degree of customer engagement. All three companies have therefore focused on enhanced engagement within the health and safety measures of both the employees and customers. Singapore airlines on the one hand have developed a separate framework to deal with wider ranges of Corporate Social responsibility procedures for customers using dedicated Covid-19 information center, Covid-19 Assistance Request Form, Bolstered Customer Services, and Handling Capabilities, proper adjustments in In-flight services (Qatarairways, 2021). And from the government restrictions perspective, the companies have also focused on enhancing much developed and appropriate manners. Through operating flights with special approvals, partnerships with international institutions to provide better services. These factors are therefore providing a higher degree of business performance and customer engagement more firmly and appropriately.

Each of these companies has also worked towards widening their scopes of Corporate social responsibility through collaboration with government agencies. Such frameworks are certainly helping towards meeting the business objectives and overall development of business performance through the adoption of coordinated approaches with the respective governments and continue to play a crucial role in the efforts to keep both the employees and customers more appropriate and efficient in the time of global Health pandemic (Statista, 2021). Qatar Airways has also worked closely with the national as well as global authorities for implementing the latest advice on Covid-19 strategies. Hence, such factors as globalization and shock factors are certainly hampering the overall business performance of the aviation industry in a strategic manner. Despite having so, the industry has actively worked towards mitigating the risks of covid-19 and making air travel safer and more convenient (Qatarairways, 2021). 

7.0. Summary

In the contemporary competitive business environment, companies are actively working towards enhancing their overall business competitiveness and customer engagement through a number of methods. In such a framework, companies are engaging with wider ranges of Corporate Social Responsibilities to provide better scopes of overall business competitiveness and ensure safer engagement of the companies in the global business environment (Iata, 2021). The positive impact that such corporate social responsibilities provide on behalf of the company certainly motivates the employees and the stakeholders to ensure proper service delivery to the customers. Customers are also being attracted through the proper engagement of CSR activities. Altogether Corporate Social responsibility also is working towards dealing with sophisticated sets of business performance and service deliveries to the customers.

As mentioned above CSR is simply an idea behind the corporate responsibilities towards the social, environmental, neutral as well as economic sectors in which the company is operating and profiting. The airline industry is one of the most important sectors for communication and transportation also remains a major sector to impact social and environmental sustainability. In such a framework, it is the ethical responsibility of each of the airline companies to improve the natural environmental sustainability frameworks more firmly and appropriately (Iata, 2020). The companies discussed above including Qatar, Emirates, and Singapore Airlines have also worked actively working towards maintaining and developing better scopes for the overall delivery of sustainability frameworks to the companies more firmly and appropriately. All these companies have therefore worked and implemented a significantly higher number of policy procedures to widen their scopes for ensuring corporate business performance and customer engagement as well as long-term business stabilities.