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MasterThesis,M.Sc.EBAinStrategicMarketCreation,
CopenhagenBusinessSchool,2017
Author:MaikeLenaRöder
Supervisor:KarinTollin,DepartmentofMarketing
Charactercount:78pages/188.602characters
Hand-indate:September15,2017
Fra
CORPORATESUSTAINABILITYASCOMPETITIVESTRATEGYArgumentsforImplementingSustainabilityintotheStrategyofEuropeanAirlines
ii
Agenda
1 Introduction...........................................................................................................................1
1.1 Relevanceofthetopic................................................................................................................1
1.2 Problemstatementandresearchquestion................................................................................2
2 TheoreticalFramework.........................................................................................................3
2.1 WhatisCorporateSustainability?..............................................................................................3
2.1.1 CSderivingfromtheconstructSustainability........................................................................3
2.1.2 ThedistinctionbetweenCSandCSR......................................................................................5
2.2 WhyisCorporateSustainabilityimportantandforwhom?.......................................................7
2.2.1 Twoparadigmshifts:CSandStakeholderTheory..................................................................8
2.2.2 MotivationforCS:CorporateBranding..................................................................................9
2.3 HowtoimplementCorporateSustainability............................................................................12
2.3.1 CSasresourceforCompetitiveAdvantage..........................................................................12
2.3.2 ManagementandPlanningofCSstrategytypes.................................................................14
3 ManagingtheSocialDimensionofCorporateSustainability.............................................16
3.1 WhatisthesocialdimensionofCS?.........................................................................................16
3.2 HowtomanagethesocialdimensionofCS?...........................................................................18
3.2.1 LevelsofcommitmenttoCS.................................................................................................20
3.2.2 IntegratingBusinessandSociety.........................................................................................21
3.2.3 TransparencyofCS...............................................................................................................23
3.3 Bestpracticesofimplementingsocialinitiatives.....................................................................24
4 Methodology.......................................................................................................................26
4.1 Philosophyofscienceandresearchobjective..........................................................................27
4.2 ResearchDesign.......................................................................................................................28
4.2.1 Mixedresearchapproach....................................................................................................28
4.2.2 Qualitativeresearchstrategy...............................................................................................30
4.3 DataCollection.........................................................................................................................31
4.3.1 Caseselection.......................................................................................................................31
4.4 ContentAnalysis.......................................................................................................................32
4.5 Qualitystandards.....................................................................................................................34
5 IndustryAnalysis..................................................................................................................36
5.1 Trendsandissuesintheairtravelindustry..............................................................................36
5.1.1 Increasedcompetition..........................................................................................................36
iii
5.1.2 Hypermobility.......................................................................................................................37
5.1.3 Environmentalissues...........................................................................................................38
5.1.4 Ungentletourism.................................................................................................................39
5.1.5 Impactofpoliticalevents.....................................................................................................41
5.2 ConsequencesforSocialAspects.............................................................................................42
5.3 SustainabilityReporting...........................................................................................................43
5.2.1 Newreportingframeworksandgoals..................................................................................44
5.2.2 Reportingprofilesanddimensions.......................................................................................46
5.2.3 CSCertifications...................................................................................................................47
6 EmpiricalFindings................................................................................................................48
6.1 LufthansaGroup.......................................................................................................................49
6.1.1 Socialinitiativesreported.....................................................................................................49
6.1.2 Commitmentlevel................................................................................................................52
6.2 InternationalAirlinesGroup(IAG)............................................................................................53
6.2.1 Socialinitiatives...................................................................................................................53
6.2.2 Commitmentlevel................................................................................................................56
6.3 AirFrance–KLMGroup...........................................................................................................58
6.3.1 Socialinitiatives...................................................................................................................58
6.3.2 Commitmentlevel................................................................................................................62
6.4 Ryanair.....................................................................................................................................63
6.4.1 Socialinitiatives...................................................................................................................63
6.4.2 Commitmentlevel................................................................................................................65
6.5 QuestioningFindingsduetoBadPress´...................................................................................66
6.6 SynthesisofEmpiricalFindings................................................................................................70
7 DiscussionandLimitations..................................................................................................71
8 ConclusionandOutlook......................................................................................................77
9 Bibliography.........................................................................................................................79
10 Appendix..........................................................................................................................88
iv
Abstract
PURPOSE
Despitethenegativeeffectthattheairlineindustryhasonthenaturalenvironment,theairline
industryisconstantlygrowing.Variousinitiativeshavebeentakenandareunderwayintrying
tominimizethenegativeeffects,intheindustryandbygovernments.Inthisthesis,corporate
sustainability(CS)isunderstoodbroadlyincludingeconomic,environmentalandsocialaspects.
Thecorequestiondealtwithinthisthesisis:Iscorporatesustainabilityacompetitivestrategy
intheEuropeanairline-industry,andwhataretheargumentstofurtherintegratecorporate
sustainabilityintothestrategiesofairlines?Hence,thethesisaimstoaddressthemeaningof
emphasizing the social dimension of corporate sustainability and outlines arguments to
implementCSasacompetitivestrategyintheairlineindustry.
METHODOLOGY
Largeandglobalizedfirmswithadirectimpactontheenvironmentusuallyhavehighdeveloped
CS strategies. I selected the four most important airlines in Europe to examine their
commitment level towardsCorporateSustainabilitywiththemeansofacontentanalysisof
reported social initiatives. Responsibilities from the governance, towards employees and
towards society are grounds for categorizing each airline´s commitment levels (Beginning,
Sufficient,Satisfying,Sophisticated/Outstanding).Afterconsideringsocial issuesofairlinesin
thepress,IneededtoadjustmyCSscores.Overall,thethesisprovidesaholisticpictureofthe
phenomenon CS in an interesting and practical way that fosters further engagement and
improvementofCSstrategies.
FINDINGS
Although the social dimensionof CS theoretically bears thepotential of building long term
competitiveadvantage,practicallyitisstillgivenlessattentionthanissuesoftheenvironmental
and economic dimension. Corporate reports can be a valuable resource for generating an
overviewofsustainablebehaviorsoffirms.However,differentreportingframeworksmakeit
hard to evaluate and compare sustainability strategies. Sustainability strategies vary
significantlyacross theairlines.Asnoairlinehas reachedanoutstandingcommitment level
towardsCS,theairlinesdonotunderstandtoachievecompetitiveadvantagethroughcreating
valueforthemselvesandforthesocietyyet.
v
ListofTablesandFigures
Table1-GroupingaspectsofthesocialdimensionofCSasidentifiedbyresearchers............18
Table2-RelatingthecategorizationofCSstrategiesfromthreeresearcherstoeachother..20
Table3-CriteriaofallsocialaspectsforeachcommitmentleveltowardsCSasidentifiedby
BaumgartnerandMarrewijk;internalstakeholders..........................................................21
Table4-CriteriaofallsocialaspectsforeachcommitmentleveltowardsCSasidentifiedby
BaumgartnerandMarrewijk;externalstakeholders..........................................................21
Table5-CharacteristicsofthefourlargestairlinesinEuropebypassengers..........................32
Table6-Reportingdisconnect:socialissueslessimportantthanenvironmentalissues.........46
Table7–Europeanairlines´reportingframeworksandsustainabilitycertifications...............48
Table8–TheCSstrategyofLufthansareachesaverysatisfyinglevelofcommitment...........53
Table9-TheCSstrategyofIAGshowsalmostasatisfyinglevelofcommitment.....................57
Table10–TheCSstrategyofAFKLMshowsasophisticatedlevelofcommitment..................63
Table11–TheCSstrategyofRyanairshowsanelementarylevelofcommitment..................66
Table12-RankingtheairlinesaccordingtotheirCSstrategy...................................................71
Table13-Mainfindingsofeachchapterasbasisfordiscussion...............................................72
Figure1-ThethreedimensionsofCorporateSustainabilitybyWillers&Kulik..........................6
Figure2–StrategicallyplanningofcorporatesustainabilitybyBaumgartner(2014)..............15
Figure3-Structureofthethesis.................................................................................................29
Figure4–Limitationofdatacollectionforempiricalresearch..................................................33
Figure5-TheimpactofairtransportontheincreasingGHGemissionsoftheindustry.........38
Figure6-DifferentreportingstylesasdefinedbyHahn&Kühnen(2013)...............................44
Figure7-ThebroadscopeofSDGsdeterminesglobalactionforpeopleandplanet..............45
Figure8-TotalscoreofeachairlinewithinthesocialdimensionofCS....................................70
1
1 Introduction
1.1 Relevanceofthetopic
How absurd - while huge sections of the Great Barrier Reef, one of the world’s most
magnificentnaturalwonders,wererecentlyfoundtobedead,killedbyoverheatedseawater,
in themeantime, climate-change denial becomes increasingly common in the halls of the
AmericanCapitol(Hughesetal.,2017).Andthedenialiswide-ranging.
Transportisasignificantandgrowingcontributortoclimatechange(Gössling,Cohen,&Hares,
2016),andspecificallyairtransportisthefastestgrowingsourceofGreenHouseGas(GHG)
emissions.Currently,aviationcontributesaround4.6%to the totalGHGemissions (Becken,
2007) implying an 87% increase since 1990 (European Commission, 2006). Further, air
transport causes 75% of all GHG emissions of all EU tourism transport (Gössling, 2017).
Additionally,theexponentialdemandforaviationserviceswillsoonresultinaninfrastructure
crisisinEuropeasexpertsoftheindustryagree(InternationalAirTransportAssociation(IATA),
n.d.).Astheindustrygrowsrapidly,thenegativeeffectsitcausesonourplanetandpeoplealso
increase.Takentogether,thesegrowinggapsbetweencurrentmobilitytrendsandsustainable
transportscenarios(Gössling,2017)callforimmediateglobalactiontocurbnegativeeffectsof
thetravelindustryasmanyresearchersindicate.Actionfromwhom?Whiletouristsstatethat
airtravelhasbecomeanintegralpartoftheirlives,theyknowthatthisprivilegeconflictswith
theirsocialdesireofbeingasustainablecitizen.Thisleavestheleadroleformoresustainable
tourismuptothegovernment(UnitedNations,2002).Variousinitiativeshavebeentakenand
areunderwayintryingtominimizethenegativeeffects,intheindustryandbygovernments,
suchasbringingairtransportintoEUEmissionsTradingScheme(EuropeanCommission,2006).
However,thenegotiations'goalhasbecomewhatispoliticallypossible,notwhatisdesirable.
Asestablishingaglobal,'topdown'targetforstabilizingemissionshasfailedsofar,hittingthe
ParisAgreementgoalsstillreliesonvoluntary,'bottomup'commitments(Geden,2015).Are
companiestheonesresponsibleforreducingnegativeeffectsfromaviationastourism’sfuture
dependsonit?Whyandhowcouldairlinessustaintravelling?Againstthisbackground,Iintent
to fill the researchgap identifiedbyTollin: “Althougha considerablenumberof companies
appear to have embraced the sustainability construct insights into ‘why’ and ‘how’ some
2
companieshaveembarkedonthispath(andothersnot)islacking.”(Tollin&Vej,2011)Hence,
further research that addresses themeaning and implication of sustainability leadership is
important(Tollin,BechChristensen,&Wilke,2015).
1.2 Problemstatementandresearchquestion
Astravellingandsustainabilityseemlikeacontroversytome,Iconductedthreepilotinterviews
toconfirmorrejectthisconsideration.Intheinterview,sevenstudentsrepliedtotwelveopen
questionsabouttheirtravelbehaviorsandattitudestowardsairlines(Appendix3)whichcan
beinterpretedasfollows:Allrespondentsseetravellingasamajorgoalinlife“IfIcouldIwould
travelALLthetime”.Theynaturallytravelledoftenwhilethepricedeterminedmostlyhowthey
travelled.Moststudent´sopinionaboutairlinesseemedrandom“IlikeStaralliancealot.ButI
don’t knowwhy”, “I don’t really see thedifferences”. Even if the respondents knewabout
airlines sustainability initiatives (“What do you mean?”) their knowledge was limited to
environmentalissuesaspayasurchargetotravelcarbonneutralforexample.Clearlyeveryone
waswilling to pay extra for travellingmore sustainably “I´m in”, “Whynot?”, “Iwould pay
maybe5%-10%-sofora40€Ticket,Iwoulddonate4€”.Overall,thispilotinterviewfindings
arecongruentwiththefindingsfromBecken(2007)“Ifthevalueoffreedomtotravelisfirmly
established inthemindsofmanytouristsand limitingtravel isconsideredunacceptable”as
wellaswiththecritiqueofIATA“Airlinesstruggletodifferentiatethemselves,competingon
networkavailabilityand to someextentonpricingandservice” (InternationalAirTransport
Association(IATA),2017).Thus,thecorequestiondealtwithinthethesisis:
Inthisthesis,theunderstandingofCS,asamarketingstrategyforcompanies,isbroadbecause
asacoreessenceitcontainseconomic,environmentalandsocialaspects(Tollinetal.,2015).
Additionally, CS is used as an umbrella construct including Corportate Social Responsibility
(CSR), sustainability development, corporate citizenship, stakeholder engagement, triple
bottomline(TBL)andsimilarterminologiescloselyrelatedtotheapproachofStrand,Freeman
Is corporate sustainability a competitive strategy in the European airline-industry, and
what are the arguments for further integrating corporate sustainability into the strategies
ofairlines?
3
&Hockerts (2015) (Strand,Freeman,&Hockerts,2015). Iaddress theresearchquestionby
describingfirst,whatinitiativeshaveuntilnowbeentakenintheairlineindustrytoimprove
the social quality of life (addressing the social dimension) and secondly, categorize these
initiativesintocommitmentleveltofinally,reflectonthedevelopmentofCSatthismoment.
Hence,thethesisaimstoaddressthemeaningofemphasizingthesocialdimensionofCSand
reflectontheargumentsfor implementingcorporatesustainability intothecorestrategyof
business.My primary theoretical perspective derives from stakeholder theory as the social
dimension of CS mainly deals with the management and treatment of people (CCC). This
stakeholderperspectiveonCSisextendedbytheresource-basedviewwhenadoptingCSas
corporatebrandingstrategy.Bothperspectivesstressthenecessityofturningthecorporate´s
culturefocusfrominside-outtooutside-in(Tollin&Vej,2012)whenaddressinghowCScanbe
anopportunityforcompetitiveadvantageintheEuropeanairlineindustry.
2 TheoreticalFramework
2.1 WhatisCorporateSustainability?
CSisabroadconceptwithcompleximplicationsandthereforehardtodefine(Parmaretal.,
2010). Despite half a century of research and debate around themegatrend sustainability
managers still struggle tounderstandwhat itmeans toeconomize sustainably (T.Bansal&
DesJardine,2015;Mihalache&Silvia,2013).Oftensustainability is limitedtoenvironmental
issues,synonymouslyusedwiththetermCSR(Jenkins,2006)orconfusedwiththeconceptof
sharedvalue(T.Bansal&DesJardine,2015).Especiallyinthepraxisofsustainability,thereis
noconsensus(Windolph,Harms,&Schaltegger,2014).Inthefollowing,thetermsustainability
anditsevolutionisexplainedandonthisbasicknowledge,thedefinitionofCSisprepared.
2.1.1 CSderivingfromtheconstructSustainability
In 1987, the concept of sustainability was originally created in the Brundtland Report Our
CommonWealth, named after the Norwegian primeminister Gro Harlem Brundtland, and
whichwasworkedoutby‘WorldCommissiononEnvironmentandDevelopment’withtheaim
ofpreventingthedeteriorationofenvironmentandnaturalresourcesbyplacingenvironmental
issuesfirmlyonthepoliticalagenda(ProducedbytheEnvironmentBranchoftheInternational
4
CivilAviationOrganization (ICAO),2016). Thisexplainswhy thepolitical term ‘Sustainability
Development’istraditionallyassociatedwithenvironmentalissuesandwhyonlyincreasingly,
thetermwasseeninabroaderview(Jenkins,2006).Harmonizingprosperitywithecologywas
the challenge of the 1980s and the Brundtland Report can be marked as the birth of
‘sustainable development’. But this narrow definition, due to the focus on environmental
issues,obscuredconcernsforhumandevelopment,equity,andsocialjustice(WHO,2002).
Fromabroaderview,sustainabilityisaconceptthatbalancestheneedforeconomicgrowth
withenvironmentalprotectionandsocialequity(Bradford,Earp,Showalter,&Williams,2016).
ThisexplainswhytheviewofCSisreferredtoasthe‘‘three-leggedstool,''‘‘triplebottomline,''
orthe‘‘threePs’’ofpeople,planet,andprofit(Bradfordetal.,2016).In1997,Thetriplebottom
line (TBL)was first put forth by Elkingtonwhose bookCannibalswith Forksmarks another
milestoneintheevolutionofsustainabilitybecausehedeclaredtheconsiderationoftheTBL
asadutyforeverycompany(Elkington,1997).Long-termsustainabilityrequiresthatallthree
dimensions of the TBL are satisfied simultaneously (Dyllick&Hockerts, 2002). In 2002, the
runningconcernoverthe limitsofthesustainability frameworkwasagainaddressedbythe
WorldSummittroughanexpansionofthestandarddefinition.TheJohannesburgDeclaration
states that sustainability is “a collective responsibility to advance and strengthen the
interdependent and mutually reinforcing pillars of sustainable development—economic
development,socialdevelopmentandenvironmentalprotection—atlocal,national,regional
andgloballevels.”(UnitedNations,2002,p.1)
ThetermsustainabilityderivesfromtheLatinwordsustinerewhichcanbetranslatedinto‘to
holdsomethingup’(Strandetal.,2015).Whenactingsustainablewe‘holdup’abalanceduse
ofresourcesandsuppliessothatthefuturegenerations’useisnotcompromised(Sen&Das,
2013).Inotherwords,theconceptofsustainabilitypressuresourgenerationtobalancethe
short- and long- term supply and demand of resources in a way that secures similar
opportunitiesforourchildrenandfurthergenerations.Thus,wecapturethatthedimensionof
timeisclearlyessentialwhendefiningCSasBansal(2015)pointsout.AndSenandDas(2013)
claimaswell,tounderstandsustainabilityasvisionandwayofthinkingandactingonemust
seetheworldasasystemthatconnectsspaceandconnectstime.Generally,therearetwo
reoccurring key concepts of sustainability: firstly, the ethical concept concerning fighting
5
povertyandsecondly,theideaof‘limitations’oftheenvironment'sabilitytomeetpresentand
futureneeds.
When transposing the idea of sustainability to the business level, Dyllick (2002) defines
“corporatesustainabilityasmeetingtheneedsofafirm’sdirectandindirectstakeholders(such
asshareholders,employees,clients,pressuregroups,communitiesetc.)withoutcompromising
itsabilitytomeettheneedsoffuturestakeholdersaswell”(Dyllick&Hockerts,2002).Butup
until today, researchers and NGOs are still trying to make the definition of the construct
sustainabilityunderstandablefornon-politiciansdespiteitsverycommonusage(Tollin&Vej,
2012). For a comprehensive corporate sustainability strategy, it is crucial to internalize the
interdependencies fromsustainabledevelopmentandCS. Inthis thesis, Iwillworkwiththe
definitionofCSasnothingelsethanSustainabledevelopmentincorporatedbytheorganization
whichcontainsconsequentlythesamethreeinteractingpillars:economic,ecologic,andsocial.
(Baumgartner&Ebner,2010)
2.1.2 ThedistinctionbetweenCSandCSRActingsustainablyand feelingsocially responsibleasacompanyseemstogohand inhand.
Although both phenomena aremegatrends today it remains questionable if it is common
knowledgewhatdifferentiatesCSandCSR?Whilethesetermsareusedsynonymouslybymany,
othersargue thatCSR isan integralpartof sustainabledevelopmentbecause it implies the
samethreedimensions:environment,economy,andsociety (Cowper-Smith&DeGrosbois,
2011;I.Freeman&Hasnaoui,2011).ToclarifyinghowCSRdiffersfromCS,bothtermsneedto
bedefinedmoredetailed.
TheconceptofCSRhasalonghistorystartingin1926whenClarkfirstlymentionsthebusiness
obligationstosociety(I.Freeman&Hasnaoui,2011).Despitethis80yearsofbackground,the
“modernera”withrespecttoCSRdefinitionsismarkedwhenHowardBowenpublishedhis
book‘SocialResponsibilitiesoftheBusinessmen’in1953.Inthelastthreedecadesthetopic´s
acceptanceincreasedsignificantlysothattoday,thetermCSRisrecognizedworldwide.Despite
the overflow of CSR definitions, they describe the same phenomenon, just fail to guide
managersonhow to challenge this phenomenon (Dahlsrud, 2008). Themostoftenutilized
definitionsofCSRhavebeencreatedby theEuropeanCommission in the21st century.The
6
Commissionprovidedtwodefinitionswithinonedecade:First,in2001,theydetermineCSRas
‘‘aconceptwherebycompaniesintegratesocialandenvironmentalconcernsintheirbusiness
operationsandintheirinteractionwiththeirstakeholdersonavoluntarybasis.’’Andthen,ten
years later in 2011, the European Commission redefined CSR as ‘‘the responsibility of
enterprisesfortheirimpactsonsociety.’’(Strandetal.,2015).
In the past, the notions of CSR and CS have shown separate paths because of narrowly
interpreted definitions: While CS was mostly related to the environment, CSR was mostly
referredtosocialaspects,suchashumanrights(Lynes&Andrachuk,2008).Nowadays,CSand
CSR have grown into convergence (R. Hahn & Kühnen, 2013) and thus, are treated as
synonymousconceptsbycontemporaryliteratureaswellasbycompanies(Strandetal.,2015;
Tollinetal.,2015).Marrewijk(2003)pointsouttheremainingdifferences:CSfocusesonvalue
creation,environmentalmanagement,andhumancapitalmanagementinpracticewhileCSR
is associatedwith themoral obligation aspects like stakeholder dialogue and sustainability
reporting(VanMarrewijk,2003).Still,itisreasonabletotreatCSandCSRsynonymouslyasthe
twoconstructs´effortsclearlyshareacommonaim:theattempttobroadentheobligationsof
firmstoincludemorethanfinancialconsiderations.NeitherCSnorCSRisafillerwordanymore
becausebynow,societyexpectsthatcompaniesaimformuchmorethanprofitmaximization
(Conrady,2012).Apartfromthat,‘TheEconomist’signedoffonthisumbrellaapproachwhen
itinvokedthephrase‘‘corporateresponsibility-orsustainabilityorwhatever’’in2008(Strand
etal.,2015).Inthisthesis,CSandCSRwillthusbetreatedasthesamelooseumbrellaconcept.
Figure1-ThethreedimensionsofCorporateSustainabilitybyWillers&Kulik
7
TheframeworkfromWillersandKulik(2011)finalizesthediscussiononthedefinitionofboth
concepts. As it is illustrated in figure 1, the framework embeds the TBL at the Society-,
Corporate- and Instrumental level. At the top (society level), there is thebroad conceptof
sustainability,atthecorporate level,CSRactivitiesmustbeadaptedtotherapidlychanging
valuesandexpectationsofsociety,andattheinstrumentallevel,theimplementationofthe
company'sresponsibilityincludingmonetarydonations,voluntaryemployeeengagement,or
ecologicalcorporateactionforexample.(Willers&Kulik,2011)
2.2 WhyisCorporateSustainabilityimportantandforwhom?
Researchpromisesthatsustainabilitywillhaveahugeimpactoncompanies’waysofcompeting
andcreatingvalueandthusbecameakeysuccessfactorofcompanies’long-termstrategies
(Hart&Dowell,2011;Porter&Kramer,2011).However,onlyaminorityofcompanieshave
adoptedaproactiveroleinfacingenvironmentalandsocialissueswhichimpliesconsidering
stakeholder expectations (Tollin et al., 2015). By definition, CS stresses the relevance of
companiesproactively,systematically,andholisticallytakingstakeholdersintoconsiderationin
their decisions-making from a truly long-term perspective (Bradford et al., 2016). In other
words,stakeholderengagementis“attheheartofeffectiveCSRandsustainability”(Strandet
al., 2015). Scholars have discussed the relationship betweenCS (business) and stakeholder
theory(society)fordecadesalreadybutwithsomeshortcomings(Bradfordetal.,2016).Most
literatureonCSismissingthelinktotheoryatall(R.Hahn&Kühnen,2013).However,Hahn´s
etal.extensive literaturereviewhelpsto identifythatthosestudiesthatdoadoptatheory
show a preoccupation with stakeholder theory, legitimacy theory, and to a certain extent
institutional theory1.Truly, there isan“obvioustieofCStostakeholder informationneeds”
(Bradford,2016,p.85)callingforstakeholdertheorytoexplaintheimportanceofsustainability
reporting inpractice.However, researchers’ theoreticalapproach topin stakeholder theory
ontoCStheorywithoutaconfrontationofthetwotheorieshavemuddiedthewatersofthe
theoreticaldebateonCS,especiallywithregardstopracticalapplicationsformanagersBrown
1 Next to stakeholder theory these two theories are common theoretical frameworks for CS:
• Legitimization theory implies that companies need a “license to operate” to conduct business which depends on the perception of society about the firm’s relationship with stakeholders (Parmar, 2010).
• Institutional theory suggests that social norms and institutional expectations create such pressures for organizations that corporations must respond accurately to these increasingly important conventions. (Hahn & Kühnen, 2013; Martin, 2011)
8
argues (Brown& Forster, 2013). Still, Iwill focus on anchoring stakeholder theory onto CS
instead of combining theories that support CS (another common practice that bears
inconsistenceresearchfindingsduetothelackofacomprehensivetheoreticalreferencepoint
(R.Hahn&Kühnen,2013)becausethislinkwillpavethewayforunderstandingthemotivations
behindimplementingCSstrategies.
2.2.1 Twoparadigmshifts:CSandStakeholderTheory
Since approximately 30 years, stakeholder theorists have rethought the purpose of the
organizationinthefieldofbusinessethicsbydiscussingifthecompanyisaprivateassociation
or a public entity promoting the interest of awide range of stakeholders (Mansell, 2009).
Stakeholdertheoryisoneofthemajormanagementparadigmshiftsinthelastcenturyonhow
to manage firms – next to the corporate sustainability paradigm shift – and traceable to
Freeman(Amaeshi,2006).ThedefinitionofStakeholdertheorystatesthatthemanagers´duty
is not limited to maximizing the firm´s success or profit for the benefit of shareholders
exclusively (shareholder theory), but their duty expands to legitimizing the corporation’s
actionsinfrontofawidersetofappropriatestakeholdersaswellasconsideringmoralsand
ethics when dealing with them (Donaldson & Preston, 1995). Thus, from a stakeholder
perspective,thereasonforbusinessesengaginginCSgroundsonbotheconomicandethical
justifications,andtheseaspectsshouldblendtogetherinbusinessdecisions(Brown&Forster,
2013).Thepurposeofstakeholdertheory is toprovidebusiness firmsandmanagerswitha
powerful organizing tool when establishing corporate strategy by determining how
stakeholders should be defined and prioritized (Schwartz & Carroll, 2008). But there is an
ongoingdebateaboutthisdefinitionandprioritizationbecausethereisabroadandanarrow
viewtothisdebate.AccordingtoFreedman(1984),stakeholdersarebroadlydefinedas‘‘any
group or individualwho can affect or is affected by the achievement of the organization’s
objectives.’’Freemanclassifiescustomers,investors,andemployeesas‘‘primarystakeholders’’
andother groups suchas competitors as ‘‘secondary stakeholders.’’ (R. E. Freeman,2010).
AccordingtoMitchelletal.,thebroadversionisunrealisticallycomplexformanagerstoapply
(Mitchell,Agle,&Wood,1997).The“narrow”versionisbasedongroupsthatare“necessary”
for the firm’s survival (Schwartz & Carroll, 2008). Rather modern is the view of Lynes &
Andrachuk(2008)whosuggeststhatnaturalenvironment,aswell,isconsideredoneofmany
stakeholders.
9
Sincethemainissueofsustainabledevelopmentforcompaniesistobalancethemultipleand
often conflicting interests of stakeholders it is essential that stakeholder engagement and
dialogueisatthecoreofaneffectivestakeholderrelationshipmanagement(Amaeshi&Crane,
2006).Inthisshiftfromamono-stakeholder(shareholders)toamulti-stakeholdermodelfor
strategic management reporting takes an essential role (Parmar et al., 2010). Indeed,
sustainability reporting is increasingly recognizedasan importantcontribution tocorporate
sustainability(R.Hahn&Kühnen,2013).Bydisclosingsustainabilityinformationcompaniesaim
to improve transparency, enhance brand value, reputation and legitimacy, enable
benchmarkingagainstcompetitors,signalcompetitiveness,motivateemployees,justtoname
afewmotivations.Alreadyin1988,Elkingtonrecognizesthatthepressurefrominternational
consumersonbusinessresultsinthecompanies´inabilitytokeepsecretsanylonger(Elkington,
1997).LikeCS,Sustainabilityreportingissynonymoususedwithsocialresponsibilityreporting
or reporting and combines long-term profitability with social justices and environmental
concern. While Sen & Das (2013) argue that Sustainability reporting is rather an ongoing
journeythanadestination,KMPGentitlesSustainabilityreportingasmainstreamandclaims
that it has reached its ‘tipping point’ (KPMG International, 2013). Additionally, Colquhoun
declaresthatsustainabilityreportingismorethan“greenwashing”assustainabilityisbecoming
a dominant lens through which the company analyses its business process and practices
(Colquhoun,2016).Duetoglobalization,newstakeholdersanddifferentnationallegislations
are putting new expectations on business resulting in a rapid changing strategy for CS
(Dahlsrud,2008).Businessisexpectedtogobeyondregulationsandcompliancewiththelaw
bysupportingeducationandbecoming involved in thegovernanceofcommunities–a role
previously occupied by the public sector (Jenkins, 2006).Moreover, stakeholders pressure
force companies to internalize all the social and environmental externalities they create
(Steger,Ionescu-Somers,&Salzmann,2007).
2.2.2 MotivationforCS:CorporateBranding
Themainmotivationbehind sustainabilitymanagement (disregardingethics) is government
regulations, stakeholderpressures,andeconomicprofit (Windolphetal.,2014).Though, in
literatureithasbeenclaimedthatgovernmentsandregulatorsare“clearlynotaforcedriving
companies towards more corporate sustainability” (Steger et al., 2007). And even the
10
customers, identified as the most influential stakeholder group by EY, do not exert high
pressureon company’s engagement in environmental and social initiatives (Ernst& Young,
2014)becausetheirmainconcernbyfarisstilltheproductprices.Hence,itisinevitabletolook
at themotivationbehind company´s engagement inCSRactivities fromaneconomic stand
point.Sofar,theevidenceontheeconomicmotivationbehindCSisratheroftheoreticalnature
thanofempirical (Brown&Forster,2013).Comparing researchers´evidences2, Lauringand
Thomsen claim that legitimacy together with reputation might be overarching ‘source of
inspiration’forthesustainableengagementofacompany(Windolphetal.,2014).InSteger’s
cross-industrial quantitative analysis (2007) sustainabilitymanagers state clearly that brand
andreputationisthedominatedriverforCSRengagement.Consequently,theeconomicdriver
forCSisdiscussedinthecontextofthecompetency“corporatebrandmanagement”duetoits
monumental importance for generating differentiating opportunities from the marketing
perspective(Stegeretal.,2007).
Corporatebrandingisthemanagementofthecorporatebrandandhasgainedacentralrolein
marketingresearchstressingforthefactthatbrandsareincreasinglyseenaskeyorganizational
asset(Cunha&Louro,2001).Brandtheoristssuggestthattheknowledgeofapersonabouta
companyheavilyinfluencestheperceptiononthecompany´sproductsandservices(Jenkins,
2004).Whileacompanycansufferfromnegativebrandimage,itcanalsopositivelylinktheir
brand to a socially responsible cause. From thisperception-based interpretation, corporate
brandisadistinctiveimageofacorporationnotonlyfromtheconsumerperspectivebutfrom
all relevant stakeholders of the corporation (employees, customers, investors, suppliers,
partners, regulators, special interests, and local communities) which highlights the tight
connectiontostakeholdertheory(Fiedler&Kirchgeorg,2007).Corporatebrandmanagement
requires adjustments of corporate vision, culture and image. Moreover, effective brand
2 These researchers suggest similar motivations for CS engagement:
• In Lynes (2008) semi-structured interviews with managers and employees from SAS the most frequently cited motivations for both corporate social and environmental responsibility simultaneously are stakeholder pressures, corporate citizenship and image.
• Brown (2013) finds evidence that CS initiatives can reduce costs and risks to the firm, build firm competitive advantage, enhance reputation and legitimacy, and create synergies.
• Windolph (2014) states that several studies emphasize competitive pressure, branding, or cost advantages as important reasons for sustainability management.
Tollin (2017) clarifies “Sustainability at a corporate level may be addressed from different areas of competences, and subsequently different theoretical fields in the literature (e.g. supply chain management, corporate branding, value creation, product innovation and business model innovation).”
11
management requires dedication for “self-assessment, responsive attitudes towards
stakeholders,and respect forvalues thatattractallparties to thecorporation” (JoHatch&
Schultz,2003).Ifthebrandismanagedeffectively,accordingtoAaker´sassumptionthatbrands
areresourcesforgeneratingandsustainingcompetitiveadvantage,brandmanagersareable
to capitalize and realize brand value, i.e. generate superiormarket performance (Cunha&
Louro,2001).
Parmar also argues, an excellent corporate reputation in the marketplace, defined as
“corporateassociationswhichindividualsoutsideanorganizationbelievearecentral,enduring
and distinctive to the organization” (Varadarajan, 2017), can be a source of competitive
advantageandincreasedeconomicvalue(Parmaretal.,2010).Thisseemslogical:firmswitha
favorable reputation for sustainability across its stakeholder groups are more attractive
business partners (resulting in a larger selection of better business opportunities and less
transaction costs), can enter new markets, and attracting and retaining top talent (ibid).
Furthermore, on another dimension of reputation is linked to the customer: A credible
corporate reputation is likely to influencecustomers’brandchoice, repurchase, and loyalty
behaviors,accordingtoVaradarajan(2017).Besidesthesepromisingbenefitsfromthebrand
asasset, thepsychological viewof theperception-basedbrandshows thatbrandvalue isa
‘soft’,complexandintangibleconceptandthus,bearschallengesfortworeasons:firstly,the
value of brand is hard to measure and validate due to its indirect impact on financial
performance of the firm; and secondly, the assessment of CS influence on brand value is
difficulttoisolatebecausevariousotherfactorshaveanimpacttoo(Stegeretal.,2007);Atthe
sametime,thesoftnatureofbrandimageisbeneficialbecauseintangibleresourcesaremore
likely to lead to innovation and competitive advantage (CA), as they aremore likely to be
valuable,rare,inimitableandnon-substitutable(Toppinen,Li,Tuppura,&Xiong,2012).
Tosumupthediscussion,werefertoargumentthatCSisnotathreattotheachievementof
corporateeconomicgoals;Instead,companiescangeneratesignificant“brandlove”through
sustainable commitment and differentiation (Colquhoun, 2016; Uddin, Tarique, & Hassan,
2008).CSRisallaboutcompetinginareaswherecompetitiveadvantageisshort-livedlikein
technology,qualityservicesandprice(Mihalache&Silvia,2013).Thisdiscussionshowswhy
researchersemphasizetheshiftfromcustomerneedstocredibilityinthecenterofbranding.
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Particularlyafterthefinancialandeconomiccrisisstartingin2008,itisnowuptotheWestern
world´sbusinessestorebuilttrustasatoppriorityanddemonstrateresponsiblywiththemeans
ofCSR(Knopfetal.,2010).Consideringthemostinfluentialbrandingframeworks,achangeto
amoreinclusiveapproachcomparedtothestrongcustomerfocusthatispresenttodayseems
necessary.Notonlyconsumerwantsandneedsshouldshapemarketingstrategiesbutalso
social,economicandecologicaldriversmustalsoplayavitalroletoachieveaswitchinfocus
fromshorttermgainstowardslong-termvisibilityinthemarketplace(Crittenden,Crittenden,
Ferrell, Ferrell, & Pinney, 2011). Hence, a strong obstacle in integrating sustainability into
brandingframeworksistoincludemoredriversthanjustcustomers’needsandwants(ibid).
2.3 HowtoimplementCorporateSustainability
The business role regarding responsibility traditionally defined as a need to eliminate the
negativeeffectsofbusinessisadefensiveapproachthatbelongsinthepastbecauseitbecame
clear (from the previous sections) that responsibility can be basis for opportunity
(Baumgartner, 2014). If responsibility is linked to opportunity, CS can be source of value
creationforbusinessandsocietysimultaneously,asBaumgartner(2014)predicts.However,it
seemsthatcorporationsimplementsustainabilityissuescoincidentallyinsteadoffollowinga
clear strategy designed to improve performance (Baumgartner& Ebner, 2010). Indeed, no
academic literature on this exists and thus, there is not sufficient knowledge about how
corporationscouldmanagethecomplexCSR-performancelink-although,opportunities,risks,
and obligations regarding sustainability needs have long been identified in literature,
Baumgartner (2010) criticizes. Yet, challenges like climate change, resource depletion, and
globalpovertypromptbusinessleaderstoattemptcreating“aformofcommercethatuplifts
theentirehumancommunityinawaythatrespectsbothnaturalsystemsandculturaldiversity”
(Hart&Dowell,2011).
2.3.1 CSasresourceforCompetitiveAdvantage
Stuart L.Hart isoneof the first studies toapplyResource-basedview (RBV) toCS in1995,
arguingthatcorporate´senvironmentalandsocialresponsibilityisresourceorcapability3that
3 In line with RBV), resources are defined as anything that the firm possesses which can be physical (land, money, machines) or intangible (reputation, brand value, skilled employees, innovation and knowledge). A capability, in contrast, is defined as the firm´s ability to deploy resources or in other words, to perform (e.g. visualize, plan, and implement strategies and improve its efficiency and effectiveness). (Barney, 1991
13
leadstoasustainedcompetitiveadvantageandthus,leadstosuperiorfirmperformance.The
resource-based view (RBV) emphasizes the firm´s internal processes but originally did not
includethefirm´sconnectionto itsnaturalenvironment.Though, thisconnectionwillbeof
immenseimportanceinthefuture,Hartpredictsbystatingin1995“itislikelythatstrategyand
competitive advantage in the coming years will be rooted in capabilities that facilitate
environmentallysustainableeconomicactivity-anaturalresourcebasedview(NRBV)ofthe
firm”.FromtheNRBV, theoutcomeofbeingamindful firmawareof thepotentiallyscarce
nature of environmental resources is themotivation to develop additional capabilities and
engage various innovative practices. (Hart & Dowell, 2011) Since in rapid changing
environments intangible recourses are not sufficient to preserve competitive advantage
anymore,organizationalcapabilities,oralsocalleddynamiccapabilities,toinnovatebecome
necessary.
The ideaof ‘sustainabilityoriented innovation’ isdefinedas innovation thathas “apositive
overallneteffecton theorganization” (Hansenetal., 2009,p.687).Concretely, sustainable
innovationscapabilityallowsthefirmtointegrate,build,andreconfigureinternalandexternal
sustainability–relatedresourcestodevelopnewproducts,processes,andpractices,andmodify
existingproducts,processes,andpractices,andtherebysignificantlyreducetheimpactofits
activitiesonthenaturalenvironment(Varadarajan,2017).Itembracesconsiderationssuchas
thephysicalproductlifecycleandtheinclusionofavarietyofstakeholdersintheinnovation
process(e.g.,suppliersandcustomers).Varadarajan´sframeworkisalignedtoBansal´s(2005)
findingsonmorepositiverelationships:Theresource-basedview(RBV)ofthefirmsupportsa
positiverelationshipbetweenahighlevelofsustainableinnovationsorientationandproduct
innovation performance, and sustainable innovations orientation and process innovation
performance(Bansal,2005).
Fromamanagerialperspective, “Corporate sustainabilitymanagement ismore thanadding
another parameter to manager´s decision. It requires the integration of sustainability
dimensions into the planning, processes, and other activities of a company on all levels of
management,thenormative,strategic,andoperationallevels”(Tollinetal.,2015),oneofthe
interviewed managers answers. Although academic papers postulate a cross-functional
implementation,Windolph reveals that sustainabilitymanagement isnot implementedasa
14
cross-functional task in practice (Windolph et al., 2014). One reason could be that this
integrated view of CS (Appendix 1, b) and its implication in the context of corporations is
relatively new (Toppinen et al., 2012). Also, managerial decisions on the corporate´s
sustainabilityorientationanditsrelevancealwaysdependontheactualbusinesssituationand
the contextual factors (Baumgartner, 2014; Varadarajan, 2017). Factors that significantly
influence the implementation of CS and are positively related to corporate sustainable
developmentarethefollowingasBansal(2005)findsout4:
- International experience – A firm’s international experience will become valuable
source to comply with increasingly complex (natural resource) regulations, and are
better at developing organizational structures and systems that allow coordination
acrossdifferentregulatorystructures
- Mediapressure–Thetotalamountofmediacoverageraisesthefirm’svisibility.The
threatofnegativemediapublicitypressuresfirmstocommittosustainablestrategies
- Mimicry–Firmswilllikelymimicthereportedsustainabilitystrategiesoftheirpeersto
reduceuncertaintyandavoidfinancialsanctions
- Organizationalsize–largerfirmsneedtolegitimizeactionsinfrontofmoremediaand
largerstakeholdergroups
2.3.2 ManagementandPlanningofCSstrategytypes
Asmentionedabove,an“integratedview”onCSimpliestoimplementallCSdimensionson
eachlevelofmanagement,accordingtoBaumgartner(2014).Onthenormativemanagement
level,thefitbetweensustainabilityengagementandorganizationalculturearequestionedand
thenitshouldbeevaluatedwhetherthecultureisopenorrestrictiveanddefensiveregarding
sustainabledevelopment.On the strategicmanagement level, sustainabilitydimensionsare
consideredintheStrength-Weakness-Opportunity-Threatanalysisofthefirmwiththeaimto
developaneffectivecorporatesustainabilitystrategy(table2).Andfinally,ontheoperational
management level, necessary projects and activities for corporate sustainability are
implementedandcarriedoutinthedifferentcorporatefunctionslikematerialsmanagement,
logistics,production,maintenance,marketing,communications,andhumanresourcespolicies.
4 Similar corporate characteristics that influence CS positively have been also identified by Toppinen including country of origin, company size, profitability, sector, stakeholders, and media. (Toppinen, 2012)
15
AlignedwithBaumgartner´sframework(2014)aboutmanagingdifferentCSstrategytypes,the
followingdecisionframeworkgivemanagersguidancewhenstrategicallyplanCS(figure2).
Figure2–StrategicallyplanningofcorporatesustainabilitybyBaumgartner(2014)
1. DECIDEONBASICSTRATEGICORIENTATION
Passive(Introverted–riskmitigationstrategy:focusonlegal/externalstandardsconcerningenvironmentalandsocialaspectstoavoidrisksforthecompany)
Active(reactiveorproactive)
3. DEFINEACTIVESTRATEGYTYPE*
Extroverted–Legitimatingstrategy:focusonexternalrelationships,licensetooperate
Conservative–Efficiencystrategy:focusoneco-efficiencyandcleanerproduction
Visionary–Holisticstrategy:focusonsustainabilityissueswithinallbusinessactivities;competitiveadvantagesderivefromdifferentiationandinnovation
4. BEAWAREOFPERSPECTIVES
Conventionalvisionarystrategy–Outside-inperspective:ifsustainabilityissuesleadtomarketadvantages,theyarepartofthestrategicmanagement
Systemicvisionarystrategy–Inside-outperspective:fromaresourcebasedviewthesustainabilitystrategiesaredeepseatedinthenormativelevelofthecompany
*Thestrategytypemustsupportthebasiccompetitivestrategyofthecompanytocontributetothestrategicpositionofthecompanyinthemarkettofinally,secureandincreasetheeconomicsuccess.
2. PLAN(LONG-TERM)SUSTAINABILITYOBJECTIVESANDACTIVITIES
Usingforecasting:SWOTanalysisandfuturedevelopmentsareanticipated
Usingbackcasting:firstdefineadesiredfuturestateandafterwardsplanactionstoachievethisdesiredstate(moresuitable)
Designstrategicmeasurementsandactivitiesusingclassicapproachesforstrategydevelopment.
16
Baumgartner gives further advise: Only if the context-specific relevance of sustainable
developmentforthecompanyhasbeenidentifiedpreviously,thedecisionframeworkonthe
strategicmanagementlevelisapplicabletodifferentorganizationsofdifferentsizesindifferent
sectors. After applying the decision framework,managers need to ensure the initiation of
innovationandcontinuousimprovementacrossallrelevantfunctionsontheoperationallevel
whensettingupaclearsustainabilitystrategy.(Baumgartner,2014)
3 ManagingtheSocialDimensionofCorporateSustainability
3.1 WhatisthesocialdimensionofCS?
Although social responsibility is the newest of the three dimensions of corporate social
responsibility, it is previously getting more attention and many organizations increasingly
addresssocialconcerns.WhenaknowledgeablemanagerexpandsthedefinitionofCSoutside
ofthe‘green’itenableshimtoseetheopportunityofsustainabilityasanintegralpartofvalue
creation.Thechallengeof implementingCS is:Foracomprehensivecorporatesustainability
strategy(Appendix1,e)itisnecessarytoconsiderallthefollowingsustainabilitydimensions,
theirimpacts,andtheirinterrelations(Baumgartner&Ebner,2010):
- Theeconomicdimension(orgenericdimension)ofCSembracesgeneralissuesofan
organization that must be implemented to remain in the market for long time.
Baumgartnersuggeststhatthemanagementshouldnotfocusonlyonthetasksthat
show immediate financial results but tasks that lead to increased financial and
sustainability results in the long-term. These generic tasks include: Innovation and
Technology, Collaboration, Knowledge management, Process, Purchase, and
Sustainabilityreporting.
- Theenvironmentaldimension(orecologicdimension)concernstheimpactscausedby
resourceuse,andemissionsintoair,waterorground,aswellaswasteandhazardous
waste,notonlycausedduringtheproductionbutalsoovertheproductlifecycle.The
higher the commitment level for environmental strategies is themore it should be
concentrated on causes rather than on effects. However, eco-efficiency bears only
shorttermimprovementbecauseusuallyitsaveseasilycostsinthestartingphase;but
inthefollowingyearsitbecomesharderandhardertofindfurtherimprovements.
17
- ThesocialdimensionCSisallaboutthecorporate´sconsciousnessofresponsibilityfor
itsownactionsaswellasacrediblecommitmentinallbusinessactivities,aimingtostay
successfullyinthemarketforalongtime.Themainpurposeofsocialinitiativesisto
positivelyinfluenceallpresentandfuturerelationshipswithstakeholders.
(Appendix1,f)
Definingthesocialdimensionofsustainabilityischallengingforcorporatepractitioners,dueto
itsintangible,qualitativenatureandlackofconsensusonrelevantcriteria(vonGeibler,Liedtke,
Wallbaum,&Schaller,2006).Baumgartner(2010)andvonGeibler(2006)bothidentifysocial
issuesbyconsideringexistingclassifications,forexampletheGRIReportingGuidelines.Both
authors identify similareightaspectsconcerning thesocialdimensionofCS.Baumgartner´s
listingshowsclearlythesignificanceofboth,theinternalandexternalstakeholders.Uddin´s
categorization of the social aspect according to responsibility towards
customers/employees/community(Uddinetal.,2008) isalsovaluable.Hedefinesthesocial
dimensionas“Socialresponsibilitymeansbeingaccountableforthesocialeffectsthecompany
has on people - even indirectly” (p.205). Uddin´s definition of responsibilities towards
customersinclude,forexample,taskssuchasprovidinggoodvalueformoney,thesafetyand
durability of products or services, standard or after-sales service, prompt and courteous
attentiontoqueriesandcomplaints,adequatesupplyofproductsorservices,fairstandardsof
advertisingandtrading,andfullandunambiguousinformationtopotentialcustomers(ibid).
Toprovideacomprehensiveoverviewofthesocialaspectsofsustainability,Ihavechosento
compareaspectsidentifiedbyallthreeauthors,Baumgartner(2014),vonGeibler(2006)and
vanMarrewijk(2003)asshownintable1.Assomeaspectsarecongruent,Iintegrateseveral
ones into one group so that table 1 shows eight distinct groups of aspects in the social
dimensionofCS.
AspectsofthesocialdimensionofCSasidentifiedbyBaumgartner(B),vonGeibler(G),vanMarrewijk(M)dividedintoeightcontentgroupsincludingexamples
Internalstakeholders(responsibilityfromgovernance,towardsemployees)
1- Corporategovernance(B):Corporatetransparencyinallactivities,BoDstructure- Peoplemanagement(M):Participatoryorinteractivepeoplemanagement- Knowledgemanagement(G):Employeeinvolvementindecision-making
2 - HealthandSafety(B,M):Guaranteethatnohealthandsafetyrisksoccuratwork- Qualityofworkingconditions(G):EmployeeProgramstopreventdangers/tostayfit
18
3 - Workingenvironment(M):Awarenessofneeds,claimsandmotivationofemployees- Motivationandincentives(B):Incentivesandrewardsystemsforsustainabilityissues
4
- Employment(G):Creationandsafeguardingofjobs- Humancapitaldevelopment(B):Permanenteducation,mentoring,training- Innovationpotential(G):Contributiontoscientificdebate,numberofpatents- Diversity(M):Policiesforemancipationofwomen,coloredpeopleandminorities
Externalstakeholders(responsibilitiestowardsthecommunity)
5 - EthicalbehaviorandHumanrights(B):Cultureofrespect,fairrules/profitallocation- Workethicsandglobalization(M):Seriouslyconsideringstakeholders’ideals/needs
6 - Nocontroversialactivities(B):Notholdingsharesthataredefinedasnotsustainable- Nocorruption,norcartel(B):Nomanipulation,norule-breaking,noprice-fixing
7- Productacceptanceandsocietalbenefit(G):socialstandardsinthesupplychain- Consumers(M):Goodvalueformoney,durabilityofproducts,aftersalesservice- Suppliers(M):Togetherwinapproachwithsuppliers,qualitycontrolexternalverified
8 - Corporatecitizenship(B):Conservationofnationalsubsidiary,increasesociallifestyle- Societaldialogue(G):Participationinsustainabilityactivitiesforthelocalcommunity
Table1-GroupingaspectsofthesocialdimensionofCSasidentifiedbyresearchers
Satisfyingeachstakeholdergroupisanimportantbusinessstrategybecause,becauseitallows
the company to (re)gain trust from consumers, better signal the company´s (potential)
suppliers reliabilitywhich is important for business partnerships, and to earn respect from
employees. Additionally,NGOs increasinglywant towork togetherwith companies seeking
feasible solutions and innovations in areas of common concern (Uddin et al., 2008).
Furthermore,Uddin(2008)claimsthatthesocialdimensionofsustainabilityallowscompanies
to maximize their commitment to all stakeholder groups which is especially beneficial for
investors.Heconcludes:“Thewinningcompaniesofthiscenturywillbethosewhoprovewith
theiractionsthattheycanbeprofitableandincreasesocialvalue”(ibid).
3.2 HowtomanagethesocialdimensionofCS?
Whereas environmental management systems have a longer history in organizations, the
managementofsocialissuesbycorporationshasonlybecomeamoresignificantconcernsince
themid-1990s,whentheconceptofthetriplebottomlineemergedandsocialissuesbecome
moreprominentamongcorporateleaders(Elkington,1997).Mihalache(2013)explains:The
impactofcompanies’activitiesonthecommunityisanexcellentcatalystforsocialaccounting
19
duetotheirimpactonincreasinglyimportantintangibleelementsofvalueforanorganization,
suchasbrand,customerloyalty,andlicensetooperate.Still,managingsocialissuesremainsa
challenge:Socialissuesaregenerallymorecomplexandhardertoobjectivelyquantifyandthe
roleofthecorporationinaddressingthemissomewhatlessclearthanforenvironmentalissues
(Toppinenetal.,2012).
Carroll´swell-knownmodelof the“CSRPyramid” (Appendix1,a) createsa framework that
helpstocharacterizethenatureofbusinesses’responsibilitiestothesocietyofwhichit isa
part (Carroll,2016).Herstakeholderperspective,alsohelpstounderstandthescopeof the
manager’sdecisionsonsocialinitiativesinsociety.Carroll(2016)suggeststhatthesetoffour
socialresponsibilitiesconstitutetotalCSR:economic,legal,ethicalandphilanthropic.Whileat
the bottom of the pyramid economic responsibilities of business to the society serves as
foundation to sustain, on top of it are the philanthropic responsibilities including giving
activitiesthatarenotrequiredby law,andnotgenerallyexpected. Itmeansforexampleto
contribute facilities and human resources for humanitarian programs, or to contribute
financially in arts, education, sports or community, or to promote human welfare. These
voluntaryactivitiesmeetcommunity’sdesireofacompanyasgoodcorporatecitizen,andare
not expected by the community like ethical responsibilities (Mihalache & Silvia, 2013). A
company´s decision to pursue philanthropic responsibilities can be of strategic, ethical or
altruisticnature(Schwartz&Carroll,2008).
Aseriesofhighprofilepubliccontroversiesinthe1990sinvolvingmultinationalcorporations
suchasShell,Nike,TheGap,andothershaveputthesocialdimensionofsustainabilityback
intothelight.Worstcasescenariosareforexample,ShellOil’sdecisiontosinktheBrentSpar,
anobsoleteoilrig,intheNorthSeaorNike´sabusivelaborpracticesatIndonesiansuppliersin
theearly1990s(Brown&Forster,2013;Martin,Johnson,&French,2011;vonGeibleretal.,
2006).Hence,managingreputationalriskhasbecomeaseriousconcernforcorporations.
Mostlyduetothegrowingimportanceofsocialissuesinbusiness,theUnitedNationsinitiated
The Global Compact promoted in 1999 good practices by corporations by articulating ten
principlesthatcoverhumanrights,labor,andenvironmentalissuesandstate(Appendix1,h)..
The Global Compact principles have been widely adopted by multinational corporations
demonstratingtheimportanceofthesocialdimensionofCSonceagain.TheGlobalcompact
20
doesn´tsolelylisttheprinciplesbutincludeaclearguidanceon“Whatdoesitmean”,“Why
shouldcompaniescare”and“Whatcancompaniesdo”foreachprinciple.
3.2.1 LevelsofcommitmenttoCS
Marrewijkpointsoutthereisno"onesolutionfitsall"conceptofCS.Everycompanyhasthe
opportunity to create added value resulting in different levels of commitment to CS (Van
Marrewijk,2003).Thesecommitmentlevels(alsocalledambitiouslevels,developmentlevels
ormaturitylevels)havebeenassigneddifferentsustainabilitytasksasbyresearchers.Sofar,
inappropriatemanagerialattemptstorespondtotheCSchallengeletdifferentstrategiesat
variousdevelopmentstagesemerge.Intable2,IcombineMarrewijk´sdifferentinterpretations
of CS (2003) with Carroll´s business responsibilities (2016) as well as with Baumgartner´s
maturity levels of CS (2010). Thematrix serves as self-assessment tool formanagers or an
evaluationtoolasincaseofthisthesis.
InterpretationofCSbyMarrewijk
Carroll´sbusinessresponsibilities CSmaturitylevelbyBaumgartner
Compliance-drivenCS
Legalresponsibilities:CSisperceivedasadutyandobligation,orcorrectbehavior
Beginning
Profit-drivenCS
Economicresponsibilities:CSispromotedifprofitable,forexamplebecauseofanimprovedreputationinvariousmarkets(customers/employees/shareholders)
Elementary
CaringCSEthicalresponsibilities:Topmanagersbelievethathumanpotential,socialresponsibilityandcarefortheplanetareassuchimportant
Satisfying
SynergisticCS
Ethicalresponsibilities:Stakeholderandtop-managementfindsthatsustainabilityisimportantinitself,especiallybecauseitisrecognizedasbeingtheinevitabledirectionprogresstakes
Sophisticated
HolisticCS
Philanthropicresponsibilities:Eachpersonororganizationhasauniversalresponsibilitytowardsallotherbeings
Outstanding
Table2-RelatingthecategorizationofCSstrategiesfromthreeresearcherstoeachother
21
AdditionaltothematrixreflectingdifferentcategorizationmodelsofthedevelopmentofCS,
table3andtable4provideanevaluationframeworkandguidanceformanagerswhoaimto
achieveacertaincommitmentlevelofCS.ForeverysocialaspectidentifiedbyBaumgartner
andMarrewijkspecificinitiativesandnormsarelistedforeachofthefivecommitmentlevels
of CS. While table 3 addresses social aspects concerning internal stakeholders, table 4
addresses social aspects concerning external stakeholders. From an economic view, the
optimum level of commitment to CS is remarkably debatable (Steger et al., 2007). Many
researchers have found out that the nature of the relationship between sustainability
performanceandthefinancialperformanceisnonlinearandcanevenchange.Theyarguethat
sustainabilityimprovementspayofffinanciallyinthebeginningbutthenbecomecostlywhen
companies are trying to achieve a zero-emission goal for example, resulting in aU-shaped
relationship.Apartfromthisdebate,aproactivesustainabilitystrategyisassociatedwithhigh-
order learning, a corporate capability possibly resulting in competitive benefits such as for
efficiency,productivityandcontinuousinnovation(SharmaandVredeburg1988).Hence,when
I laterutilize table3and4 toevaluate thecommitment levelsofEurope´s largestairlines I
assume that the more proactive or more committed towards CS a company is, the more
capabilityithasforinnovation-orientationandopportunityforbetterperformance.
InAppendix2,Ipresentafullevaluationframeworkincludingthecriteriaofallsocialaspects
foreachcommitmentleveltowardsCSasidentifiedbyBaumgartnerandMarrewijk.Thetwo
tablespresentwhichcriteriatofulfilltoreachahigherlevelofcommitmenttowardsCS,one
for responsibilities concerning internal stakeholders and one for responsibilities concerning
externalstakeholders.DuetotheirextensivesizethetablesaremovedtotheAppendix:
Table3-CriteriaofallsocialaspectsforeachcommitmentleveltowardsCSasidentifiedbyBaumgartnerandMarrewijk;internalstakeholders
Table4-CriteriaofallsocialaspectsforeachcommitmentleveltowardsCSasidentifiedbyBaumgartnerandMarrewijk;externalstakeholders
3.2.2 IntegratingBusinessandSocietyPorter and Kramer propose a new perspective on the relationship between business and
societybecause they claim thatCSeffortsbecomecounterproductivewhen forgetting that
corporatesuccessandsocialwelfareare interdependent (Porter&Kramer,2006).Theysay
22
that business and society need eachother ismore than a cliché, it is the truth. Successful
corporations need a healthy society: Education, health care, and equal opportunity are
essential for a productiveworkforce. At the same time, a healthy society needs successful
companies.PorterandKramerfurthersuggestthatahighly-developedCSstrategyisnotonly
anchored on the strategic level of the firm, as explained above, but also requires an
understandingoftheinterrelationofbusinessandsociety.Theirperspectivethatbusinessand
societymustbeintegratedcanhelpcompaniesoutofthecurrentconfusionaboutcorporate
responsibilitiesandhelptorealizesharedvaluebymakingchoicesthatarebeneficialforboth
sides.Whenmanagerschoosewhichsocialissuestoprioritizetheymustconsideroutside-in
and as well as inside-out linkages between society and business to transform defensive,
responsiveCSintoastrategic,integratedCS.However,thetruthisthatupuntiltoday,onlyfew
firmshave“trulyembedded the sustainablepractice into theiroperations” (Ernst&Young,
2014).Parmaragrees,advancedCSmanagersshouldnotask“Howcanthecompanydomore
goodworks?”–eventhoughdoingmoregoodisneverabadidea–butneedtoask“Howdoes
thiscompanymakecustomers,suppliers,communities,employees,andfinanciersbetteroff?
Howcanwework together to create value for eachother?”Thus, Parmar also calls for an
integratedapproachtosocial,environmentalandeconomicissues(Parmaretal.,2010).
“The integrative view on corporate sustainability argues thus that firms need to address
economic,environmentalandsocialaspectssimultaneouslywithout,apriori,emphasizingone
aspectoveranother—evenifthisentailstensionsandconflicts.”(T.Hahn,Pinkse,Preuss,&
Figge,2015).Hahnet.al.(2015)identifyfurtherimplicationsformanagers:Insteadofignoring
tensionintensivesituationswithsecondarystakeholderslikeNGOs,whereenvironmentaland
social aspects cannot be aligned with financial outcomes or solved through market
transactions,managersneedtoembracethesetensionsanddiscusssomeselectedoneswith
the aim to explore and manage different resolution strategies. Altogether, managers that
follow ‘the integrative logic’ might implement the most proactive corporate sustainability
strategiessimplythroughacceptingtensions(ibid).Overall,thenewintegratedapproachofCS,
inwhichbusinessandsocietyareintertwined,followsapragmaticapproachbecauseitfocuses
onmanagingthecompany´sstakeholderrelationshipsasakeytaskofsuccess.Further,Porter
andKramer(2011)believethatcompaniesareresponsibleonesfortakingtheleadinbringing
businessandsocietybacktogether.Toachievethat,companiesmustseeopportunitiesand
23
decisionsthroughthelensofaprinciplecalled‘sharedvalue’–aprincipleleadingtothenext
transformationinbusinessthinking,theauthorsclaim.Companiescancreatesharedvalueby
creatingeconomicvalueinawaythatalsocreatesvalueforsocietybyaddressingitsneedsand
challenges. Inotherwords, itcanbecreatedbybetterconnectingcompanies’ successwith
societalimprovement.Resultisthatcompaniesopenuptomultiplewaystoservenewneeds,
gainefficiency, createdifferentiation, andexpandmarkets. Theauthorsnotify that value is
definedasthebenefitsrelativetocostsandnotbenefitsalone.Consequently,theprincipleof
sharedvalueisthesolutiontolegitimizebusinessagain.(PorterandKramer,2011)
3.2.3 TransparencyofCSOne of the most successful approaches to manage social issues is stakeholder dialogue.
Amaeshiexplains: stakeholderdialogueor stakeholderengagementat thecoreofeffective
stakeholder relationship management is essential as the main issue for sustainable
developmentconcernsprimarilythechoicescompaniesmakebetweentheconflictinginterests
ofstakeholders(Amaeshi&Crane,2006).Ofcourse,dataandreportingisanecessarybasisfor
management decisions on trade-offs of different stakeholder interests because you cannot
monitorwhatyoudonotmeasure.Inthatsense,forasociallysustainablecompanyitiskeyto
implementatransparentdialoguethatseemsfairandtrustworthyforallstakeholdergroupsin
ordertoderivevaluefromitssocialinitiatives(Dyllick&Hockerts,2002).Stakeholder´sdemand
fortransparencyandaccountabilityhavepushedmanycompaniestoreportexternallyontheir
CSactivities(Bradfordetal.,2016).Inthepasttwodecades,therewasa“significantincrease
intheamountofinformationdisclosedaboutenvironmentalandsocialactivitiesundertaken
bycompanies”(Toppinenetal.,2012).Ifstakeholdersarenotawareofcorporatesocialand
environmentalbehaviorthereturnstosuchbehaviorarelimited.However,whenstakeholders
wereawareofittheywouldreactpositivelytocorporateresponsibility,accordingtoSenetal.
To put it in a nutshell, these studies suggest that firms should try harder building their
reputations through the promotion and communication of social initiatives to their
stakeholders.
Acompanywhofailstoengageinsustainabilityreportingcouldsufferfromanegativeeffect
onitsperformance,reputation,andtheabilitytoraisecapital(EY2014).Forexample:Results
indicatethatfirmshigherinsocialperformancearemoreattractiveemployersthanfirmslower
in socialperformance.Ofcourse,potentialapplicantsneed tobeawareof firms'corporate
24
social performance first, so that those with more positive ratings may have competitive
advantagesbyattractingmorepotentialapplicants(Bradfordetal.,2016).However,gaining
awareness is difficult because stakeholders are often reluctant to read toomuch into this
informationwhichmakes the understandability of the reports particularly relevant for the
willingnessofuserstoreadthereports,Bradfordargues.Onereasonforthisreluctanceisthat
sustainability reporting is more consistent with image management than with rendering
veritableaccountsofactualsocialandenvironmentaleffectsofcorporateactivities.
3.3 Bestpracticesofimplementingsocialinitiatives
Inthischapter,bestpracticeexamplesofsuccessfulimplementationsofCSstrategiesserveas
inspirationforothercompany´showtoimprovetheirCSstrategyfurther.Grantknows,when
putting resources and capabilities to practicalwork, onemust assess the intangible asset´s
strengthandweakness(Grant,2016).Benchmarkingisapowerfultoolforanobjectiveanalysis
ofcapabilitiesrelativetotheonesofcompetitors.“Bysystematicallycomparingprocessesand
activitieswith those of other firms, benchmarking allows a company tomake an objective
appraisalofitscapabilities”(Grant,2016,p.142).PorterandKrameridentifythefollowingsix
firmshavedistinguishedthemselvesthroughanextraordinarylong-termcommitmenttosocial
responsibilityandIaddonebestpracticeexampleoutofthetransportindustry:
• NestléMilkDistrictModel:Nestléworkswithmorethan600000farmers,mostlysmall
farms,withtheaimtodomoreforthefarmersandcommunitiesontheonehand,and
ontheotherhandtohaveareliable,safeandhigh-qualitymilksupplyfortheirproducts.
Nestlé´sMilkDistrictsanddairyindustrieshasbeenadoptedin30countries,including
developing countries such as Colombia, India, and Pakistan. In Moga (Africa) for
example,Nestlé´sknowledgetransferhashelpedtoreducethecalves’deathrateby
75%andtoincreasethemilkproduction50-fold.Asthemilkqualityimproved,Nestlé
couldpayhigherpricestofarmersthanthegovernment.Itisawin-win,orsharedvalue,
situationonawidescale:WhileNestlécontributestopovertyreduction,theyimprove
nutritiongenerallyandfortheirproducts.(Porter&Kramer,2006,p.12)
• Toyota´sPrius:Toyota’searly introductionofthehybrid-enginecarPriustackledthe
public concern about auto emissions. The Prius has not only significantly reduced
pollutants and servesworldwide customer needs, it has also given Toyota a unique
superior position over rivals in hybrid technology which fits comfortably to the
25
company´s genetic mission and vision. Toyota has set the technology of the
environmentalfriendlyandinnovativecarmodelPriusastheworldstandard.(Porter&
Kramer,2006,p.1)
• Ben&Jerry's“CaringCapitalism”:ThefirstCSRreportisregardedashavingbeenissued
byBenandJerry’sIceCreamin1989(Sen&Das,2013).Thefoundersofthepremium
icecreamBenCohanandJerryGreenfieldredefinedcorporatephilanthropy.Acaring
companyculturehavebeenestablishedbecauseBen&Jerry'sbeganrewardingtheir
employees with profit-sharing programs, free health club memberships, day-care
serviceandcollegetuitionaid.TheBenandJerry´sFoundationdonates7.5percentof
the company's pre-tax profits to nonprofit charities nationwide. The Foundation
mission is to engage employees in activities for social and environmental national
justiceandawardsabout$1.8millionannuallytoeligible.(TheEntrepreneur,2008)
• Patagoniaproductlife-cycle:Thecompany´smantra—Reduce,Repair,Reuse,Recycle
– demonstrates commitment to sustain the entire product´s life cycle. Patagonia
promises tomake long-lastingproducts, fixbrokenequipment,help to rehomegear
that isno longerneededelsewhere,andaccept/retoolworn-outconsumer items. In
1994,theymadethedecisiontotakeastandagainstchemicallyintensivecottonand
switchtoorganicallygrowncottonthroughouttheiractivesportswearline.Patagonia
works with suppliers that make high-quality materials while reducing their
environmentalfootprint,andinspectsfactoriestoensurefairlaborpracticesandgood
working conditions. The retailer´s vision to “use business to inspire and implement
solutions to the environmental crisis” serves as role model in the textile industry.
(Patagonia,2007)
• Unilever´sProjectShakti:ForIndian´sruralareasUnileverhasdevelopedadirect-to-
homedistributionsystemwhichisrunbyunderprivilegedfemaleentrepreneurs.The
45,000entrepreneurscoveraround100,000villagesacross15 Indianstates.Project
Shakti helps communities not only by giving access to hygienic products to fight
communicablediseasesbutalsogiveswomenskillsthroughtheUnilever´strainingand
microcredits which doubles the income of these women. In themeantime, project
Shakti accounts for 5% of Unilever’s total revenues in India and has extended the
company’sbrandawareness inmedia-darkregions.Weconcludeagain,Unileverhas
26
created shared value by meeting the needs of life-struggling communities while
enablingeconomicvaluefromhard-to-reachconsumers.(Porter&Kramer,2011)
• Johnson&Johnson´shealthbenefits:Todayitiscommonknowledgethatcostsfrom
lostworkdays, diminishedemployeeproductivity, andpoorhealthoftenexceed the
costs forhealthbenefits foremployees.Byhelpingtheiremployeestostopsmoking
(50%did)andbyimplementingnumerousotherwellnessprograms,thecompanyhas
saved$250milliononhealthcarecostsandtheirworkforcebecomemoreproductive.
(Porter&Kramer,2011)
• Maersk´s Slow Steaming: A ship that reduces speed by 20%will use 40% less fuel,
thereby reducingCO2emissions correspondingly.WhenMaersk Linedecided to cut
CO2emissionspercontainerby12.5%from2007to2009,andby25% in2020, the
concept of slow steaming took off. The concept implies adding 1-2 vessels per
container,whichnotonlyreducesCO2emissionsbut isalsoawin-win-winsituation.
Slowsteaming isaconcept for the futurebecause it isbetter forcustomers (higher
degreeofcertainty),betterfortheenvironment(overthelast1½yearreducedMaersk
Line'sCO2emissionsbyabout7%percontainermoved),andbetterforourbusiness
(Schedule reliability improves leading to 77% on-time performance score with the
closestcompetitorsrangingfrom59%-64%).(Maersk,2010)
4 Methodology
Thecentralobjectiveofthechapteristoconnecttheprevioustheoreticalframeworkwiththe
following empirical data. Each of the sections cover explanations for the chosen method.
Guided by the question “Is corporate sustainability a competitive strategy in the European
airline-industry,andwhatare thearguments for further integratingcorporatesustainability
intothestrategiesofairlines?”,thisresearchwasdesignedtoidentifyspecificsocialinitiatives
implementedintheairlineindustryandtheirlevelofcommitment.Thedatawascollectedfrom
the airlines’ environmental or CSR reports (free-standing or published jointly with annual
financialreports)availableonline.
27
4.1 Philosophyofscienceandresearchobjective
PositivismandInterpretivismarethetwobasicapproachestoresearchmethodsinSociology.
While Positivist prefer scientific quantitative methods, Interpretivists prefer humanistic
qualitativemethods.(Payne&Payne,2004)Additionally,newphilosophicalmovementsexist,
suchasRealismandPragmatism,drivenbyThomasKuhn“paradigmshift”onhowtoseethe
world.Within qualitative research, an alternative to Interpretivism is Pragmatism. The two
philosophiesInterpretivismandPragmatismaredistinctintheirresearchobjectives:Whena
qualitativeresearcheradoptsaninterpretivestanceheorsheaimstowardsanunderstanding
thatisappreciatedforbeinginteresting;Whentheresearcheradoptsapragmatiststancehe
orsheaimsforconstructiveknowledgethatisappreciatedforbeingusefulinaction(DeVaus
&deVaus,2001).Further,theInterpretivistparadigmimpliesthattheimplicationsdrawnfrom
the research cannot be generalized or perceived as norms, as each case is unique (in
accordancewiththenatureofinterpretivism).Intheinterpretivist(socialconstructivist)school
theontologicalassumptiononthenatureofreality isthatmultiplerealitiesexist,whichare
socially constructed by individuals (Corbin& Strauss, 2008). The Interpretivism-view of the
worldisnecessarywhenIin-deeplyassessthephenomenonCS(definitionanddevelopment).
Asthedifferentmotivationsunderlyingthesocialinitiativesfromairlinesanditsreportingare
noteasytodetect,ImustinterpretsubjectivelythecommitmentlevelofCS.
Thefollowingfour levelsofknowledgecanallhelptoanswertheresearchquestionhowto
managethesocialdimensionofcorporatesustainability:Exploratory–Whatisthis?Ask:What,
who,howmany;Descriptive–Howdoes it look like?Ask:How;Explanatory–Whyis itthis
way?Ask:Why;Normative–Howcanitbedifferent?Ask:How.Exploratoryresearchisused
to examine “two or more contrasting cases” and “can be used to highlight differences
similaritiesbetweenthem,leadingtoabetterunderstandingofsocialphenomena”(Walliman,
2006).Descriptiveresearchissometimesdismissedas“justgettingthefacts”,butthistypeof
research isoften the fundamentofourknowledgeof theshapeandnatureof society.The
descriptionscanbeconcrete(femalerateinmanagementpositions)orabstract(commitment
level of CS). When the description is good, the next step, asking the “why” question of
explanatoryresearch,isprovoked.(deVaus,2001)Thus,explanatoryresearchisanotherkind
of descriptive research, whichmoves beyond getting the facts and tries tomake sense of
human,political,social,culturalandcontextualelementsinvolved(Walliman,2006).AsIaim
28
to explore the CS commitment level of the four largest airlines in Europe, I firstly need to
describethesocialinitiativestheyreport.Thesetwotypesofresearchcombinedhelpmeto
provideboth, anunderstandingof thedevelopmentofCS and its state-of theart for large
Europeanairlines.
4.2 ResearchDesign
“Thefunctionofaresearchdesignistoensurethatthedatathatareobtainedenableusto
answertheinitialresearchquestionsasunambiguouslyaspossible”(DeVaus&deVaus,2001,
p.1). In other words, without researchers knowing from the start, which methods are
appropriatetocollectdata,nostrongconclusionscanbedrawnintheend.Myresearchdesign
is not fixed but flexible, as it evolved over time. The capacity for flexibility is “one of the
strengthsofqualitative…toevolvingcircumstancesastheynaturallyoccur”(Payne&Payne,
2004,p.176).
4.2.1 Mixedresearchapproach
For this thesis, I use a retroductive approach of social research combining deduction and
inductionasshowninfigureYXY.Theretroductiveapproachcontainstheinterplayofstarting
theanalysiswithsocialtheory(deduction)andevidence(induction)withthepurposetogive
themostadequateanalysisofsocialreality(Ragin&Amoroso,2010).SeefigureCYtofollow
thestructureofthethesischapterbychapter.
Chapter2,3,5:ConceptualFramework-Thesocialtheorybehindthispapercanbedivided
intotwoparts.InPartA,aliteraturereviewonthedefinitionanddevelopmentofCSfostersan
understandingforthethree-dimensionalmegatrendCSanditsdifferentstrategytypes.InPart
B,Iprovideaframeworktoassesshowcommittedacompanyistowardsthesocialdimensions
ofCSandgiveguidanceonhowtoimplementsocialinitiatives.Inbothpartsofthetheory,I
use research by Baumgartner for explaining CS strategy types (Introverted, Extroverted,
Conservative, Visionary) and descriptive criteria for each commitment level towards CS.
Moreover, an analysis of the air travel Industry ensures that the reader understands the
regulationsandrisksthatAirlinesCSmanagersarefacing.Thetwotheoreticalpartsservesas
sourceofknowledgeonthestateoftheartofCS.
29
Chapter6,7:EmpiricalFindingsandDiscussion
Thisthesisusesinductiveanddeductivereasoningforatwo-foldedanalysis.Firstly,acontent
analysisoftheairlinessocialinitiativestowardsinternalandexternalstakeholdersisgiven.This
content analysis grounds on the different types of reports that the airlines or its parent
companypublishes. Informationontheairlineswebsitesareadditionallytaken intoaccount
withtheaimtoreflectexamplesofeachsocialresponsibilityissue.Withthedescriptionofthe
socialinitiativesItestinwhichlevelofcommitmenttherespectiveairlinecanbecategorized.
Usingonlydeductiveresearchleadstoconclusionswhethertheairlinesfitintothedeveloped
commitmentlevels.However,itdoesnotincludeanyfurtherimplicationsforCSmanagerson
Workingexperience
PilotInterview
1
ProblemStatement
Managingsocialissuesintheory
IndustryAnalysis
Theoreticalevidence
CaseStudy1
CaseStudy2
CaseStudy3
CaseStudy4
Categorizationofcommitmentlevels
DevelopmentstageofCS
PilotInterview
2
PilotInterview
3
DeductionTestingtheoreticalevidence
Buildingevaluation Induction
LiteratureReviewon
CS
Figure3-Structureofthethesis
30
howtoimprovetheirCSstrategy.Therefore,Iattempttoinvestigateinductivelywhetherone
canobservepatternsofcommitmenttowardsCS.Hence,byusingaretroductiveapproachin
combiningdeductionandinduction,thispaperaimsatproducingscientificevidenceabouthow
corporationsmanagetoimplementCSstrategiesandexplainwhatitmeansfortheindustry
andwhatitimpliesforfutureprospects(Ragin&Amoroso,2010).
4.2.2 QualitativeresearchstrategyForthisresearch,Ichoosetoconductamultiple-casestudy.Acasestudycanbedescribedas
the empirical investigation of a specified or bounded phenomenon and the focus of the
researchisoftenconcentratedoninstancesofgreatercomplexity(K,2014).Casestudydesigns
tend to be flexible designs (Walliman, 2006). Moreover, case studies are not used for
generalizability, but “is rather about the quality of theoretical analysis that is allowed by
intensive investigation intooneora fewcases”(Walliman,2006,p.45).Traditionally, there
havebeenprejudicesagainstcasestudystrategybecauseithasbeenclaimedthatcasestudies
lackreliabilitybuttoday,hereissomesuggestionthatthecasestudymethodisincreasingly
beingusedandwithagrowingconfidence.Despiteextensivecritique,thecase-basedmethod
hasbecomeacommonapproachforexploringorganizationalphenomena.
Duringthelastcentury,thedevelopmentofqualitativemethodsshowedimpressiveadvances
and results, thus helping to gain more acceptance not only in the field of social research
becausequalitativeresearchdrawsastrongconnectionbetweendatacollectionandtheory
building.Theresultsfromthedataanalysisoftenrequirerefinementofthetheory,bothduring
andaftertheanalysisisconducted(Walliman,2006).Duringanyqualitativedatacollection,it
isimportanttohaveacriticalattitudetowardsthedatabeingcollectedtoreducetheamount
ofcollecteddata.Aqualitativeresearchstrategyisemployedinthesensethatweinterpretand
construct, emphasizing the meaning of words rather than quantifying data. The
appropriatenessofthisstrategyliesinthequalitativeresearchers’aimtogatheranin-depth
understanding of human behavior. Qualitative research strategy and the ‘hollowed
methodology’ criticism may be overcome through codification. With the interpretation of
qualitativedataand thedevelopmentofdata categories,qualitativedata canprovidewell-
grounded conclusions. (Corbin& Strauss, 2008) I useprocedures and strategiesdefinedby
31
Corbin&StrausstodemonstratehowIcodethecontentanalysisandinterpretempiricaldata
(Appendix1,c).
4.3 DataCollection
I combine primary data (sustainability reports) with secondary data (airlines in themedia)
becausesecondarydataaddsvalueandenhancetheprimarydatabyaddingcomplementary
informationtotheresearch.Aftercriticallyanalyzingwhatthecorporationreportthemselves
abouttheirsocialinitiatives(inductivereasoning),IcomparetheircommitmentleveltowhatI
find in the press (The Guardian) about their social issues. This comparison of primary and
secondarydataenrichestheresultsoftheairline´scommitmentleveltowardsCSas“theories
are improved through this testingagainstevidence (deductive reasoning)” (Payne&Payne,
2004,p.171)
4.3.1 CaseselectionFollowingaqualitativeresearchapproach,thefocusissetonadetailedanalysisofcasestudies
onasmall-scale.Casestudiescanhavemultiplefunctions:itsrhetoricalfunctionishelpingto
dramatizeandpersuadebyusingapowerfulexample,anditslogicalfunctionishelpingtosort
outideas.(Payne&Payne,2004)IhavedeterminedmythesistoassessCSofthefourlargest
airlines Groups in Europe (Lufthansa Group, Ryanair, KLM-Air France, IAG) in terms of
passengers carriedduring2016. By showinghow committed airlines are to implement and
communicatesocialinitiativesIexplicitlydonotintendtocomparetheairlinessocialstrategies
(whichis,bydefinition,notthepurposeofacasestudy)butinstead,intendtotriggeranintense
discussiononthedevelopmentstageofCS.
Airlines fulfill the following conditions that influence positively the implementation of CS
identifiedbyBansal (2005)andVaradaranjan (2017): theyoperateonahighly international
basis(flyto33-118countries),areexposedtothemediaduetotheirlargeendconsumerbase
(93,4-110millionpassengersperyear),andcanbeconsideredasverylargecompanieswith
regards to their employees and fleet size (11.500-124.000 employees, 4000-617 aircrafts
operatinginfleet),competeinanindustrythatcausesgreatenvironmentaldegradation(figure
X).Accordingtoallthesecharacteristicssummarizedintable5,airlinescanbeassumedtohave
32
implementedadevelopedCSstrategy.Inotherwords,duetotheindustrycharacteristicsand
companycharacteristicsitismorelikelytoassumeahighercommitmentlevelofCSthaninless
regulatedindustriesandsmallercompanies.
Characteristicsfrom2016
LufthansaGroup
RyanairPlc IAGAirFrance–KLMGroup
Foundedin Germany,1953 Ireland,1985 UK,2011 France,2004
Employees 124.000 11.500 63.400 82.100
Revenue 31.660€m 6.535€m 22.567€m 28.000€m
Profitsaftertax 1.803€m 1.316€m 1.952€m 1.05€m
Passengers 110m 106,4m 100,6m 93,4m
Destinations 308destinationsin103countries
200destinationsin33countries
200destinationsin80countries
328destinationsin118countries
AircraftsinFleet 617 400 548 534Table5-CharacteristicsofthefourlargestairlinesinEuropebypassengers
4.4 ContentAnalysis
“Contentanalysisisoneofthemoreimportant,butunder-rated,researchmethod”(Payne&
Payne,2004,p.51).Originallycontentanalysiswasusedtoanalyzewrittenandvisualtextsina
quantitativeway.Butcontentanalysiswasextendedtobeappliedtoliterature,autobiography
andotherdocuments,photographyetc.withemphasis shifting toqualitative. Inqualitative
research,contentanalysisshouldaddressattitudes,valuesandmotivations.Allcollecteddata
needs to be organized in a structuredway by systematically allocating the content to pre-
determined, detailed categories. (Payne & Payne, 2004) To structure this thesis´ content
analysis I apply the generic process model byMayring containing four steps of a content
analysis(Mayring,2014):
- Materialcollection:Firstly,Idefinethematerialtocollect.Theairline´sownpublished
reportsserveasobjectforanalysis.However,Ineedtodelimitatewhichreports.AsI
amlookingonlyfortheinformationregardingthesocialdimensionofCSthecollected
reportmustincludeatleastoneoftheeightsocialaspectsconcerningtheresponsibility
fromgovernance, theresponsibilitytowardsemployeesandtowardsthecommunity
(society),asIdefineinchapterX.
33
During the research process, I found out that some airlines do not publish a
sustainabilityreportitselfbuttheGrouporparentcompanyreportsit.Hence,Iused
thefollowingreportswhicharepublishedin2017andcontaindatafromthefinancial
year2016:
• Lufthansa Group - Corporate sustainability report “Balance” and “Annual
Report”fromLufthansaGroup
• IAG-“AnnualReportandAccounts–Thebestisyettocome”fromIAGaswell
as“AnnualReportandAccounts”fromBritishAirwaysPlc
• AirFrance–KLMGroup-“RegistrationReport”
• Ryanair-“AnnualReport”.Inthiscase,informationonsomeoftheeightsocial
aspectswasmissingcompletelyinthereport,sothatIalsoscreenedtheairline´s
websitetounderstandwhattheyaredoingsocially.
- Descriptiveanalysis:Thecontentofthereportswasfurtherscreenedfortheexistence
andtheextendofinitiativeswithintheeightsocialaspectsofsustainability.Theeight
aspectsalsoguidemydescriptioninthesensethatIpickoutoneexampleperaspect
toillustrateitinthethesis.Theexamplesarenotnecessarilycomparable(donotdeal
with the same issue) across airlines because it is more important that the aspect
illustrated is reported clear andunderstandable by the airlines. Thepurposeof this
qualitative description is to assume themotivation, values and believes behind the
airline´s social initiative. The evaluation criteria as identified by Baumgartner and
Marrewijk can be found in table 3 and 4 and help to categorize my evaluation of
motivation,valuesandbelieves.
CorporateSustainability
Economicdimension SocialDimension
Responsibilityfrom
Governance
Responsibilitytowards
Employees
Responsibilitytowards
Community
Environmentaldimension
Figure4–Limitationofdatacollectionforempiricalresearch
34
- Category selection: Structural criteria are selected, forming thebasis of the content
analysis. As a first step, I independently searched the airline´s reports for recurring
patterns: Initiatives that seemed standard were ignored, whereas initiatives that
seemedspecialweregivenextraattention.Inasecondstep,IevaluatedtheairlinesCS
strategybyoperationalizingBaumgartner´sframeworkaboutmaturitylevelsofCSand
theexpansionbyMarrewijk (table3and4).Criteria fromboth researchers serveas
evaluationframework.Finally,Icouldcategorizethesocialinitiativesbytheairlinesinto
four levels of commitment: Beginning (Poor), Elementary (Sufficient), Satisfying,
SophisticatedandOutstanding.Tosimplifytheanalysis,Iassigneachlevelascorefrom
onetofourpoints:
Ö 1point:Beginning(poor)level
Ö 2points:Elementary(sufficient)level
Ö 3points:Satisfyinglevel
Ö 4points:SophisticatedandOutstandinglevel
- Material evaluation: In order to enhance objectivity and critical thinking, secondary
sources are necessary to test my evaluation of the airline´s reports. I choose to
reproduceoneortwoconspicuouseventsorimmensescandalsabouteachofthefour
airlinesthatarepublishedin“TheGuardian”since2016.Theselectedarticlesleadto
anadjustmentofmyevaluationabouteachairline´scommitmentleveltowardsCS.In
general,itisnotonlyInterestingwhichinitiativesthecorporationsreportbutalsohow
theyreportthem:reportingprofilesoftheairlinesareevaluatedinspiredbyToppinen´s
categorization of voluntary disclosed data (defensive, proactive, or stuck-in-the-
middle).
4.5 Qualitystandards
Thereislittlepointinresearchunlesstherearerationalgroundsforarguingthattheaccounts
produced accurately reflect the nature of what we have studied, Payne argues. Themost
standardqualitycriteriausedinsocialresearcharewhethertheresearchisvalidandreliable.
(Payne&Payne,2004)
35
“Validity(…)referstothecapacityofresearchtechniquestoencapsulatethecharacteristicsof
theconceptsbeingstudied,andsoproperlytomeasurewhatthemethodswereintendedto
measure.”(Payne&Payne,2004,p.233)Paynefurtherdividesvalidityintoexternalandinternal
validity, where external validity is defined as the degree to which the findings can be
generalizedandinternalvalidityisconcernedwiththefitbetweenthestudy’spurposeandits
findingsanddevelopedimplications.Thus,Ineedtoask:Whicharethelimitsofgeneralization
when operationalizing this research (external validity) and are my conclusions plausibly
defendablebyafullydevelopedconceptualframework?Inthisstudy,theexternalvalidityis
verynarrowbecause Ipresentuniqueexamples, consistingofonly fourdifferentEuropean
airlinesandtheirreports,andnotsamples.AlthoughIamnotworriedwhetherthecasestudy
examplesarerepresentative, Istilldecidedto includeone low-costcarrier (Ryanair)nextto
three flagcarriers (Lufthansa, IAG,andAirFrance–KLM),which Ihopewill leadtoamore
interestingdiscussion.Additionally,thecasestudiesarelimitedtooneindustry–theairtravel
industry.Corporationsfromotherindustrymightshowdifferentpatternsofcommitmentlevels
towardsCS.The internalvalidity isbasedon theunderstandingof twophenomena:CSand
Stakeholdertheory.Still,theinternalvalidityofthisstudyisquitenarrowbecausethereexists
onlylimitedresearchonspecificallythesocialdimensionofcorporatesustainability.HowCS
strategiescontributestoachievecompetitiveadvantageismainlyansweredbyenvironmental
benefits.Ingeneralthough,qualitativeresearchhandlesmostvalidityissuesmoreeffectively
thanquantitativeworkdoes,butqualitative research is lessgeneralizable. (Payne&Payne,
2004)
Reliability refers to the extent to which one’s data collection and data analysis produced
consistentandcrediblefindings.WhenIquestionifmyfindingsarereliableIneedtoask:Would
anotherresearchergetthesameresultsasIdidwhenrepeatingthisstudy?(Payne&Payne,
2004)ToensureadecentamountofreliabilityIstrictlyusedBaumgartner´sandMarrewijk´s
criteria for eachmaturity level of CS to assessment of social initiatives and retrospectively
compared my findings with sustainability certifications and external CSR ratings. Still, my
assessmentremainssubjective.Ifanotherresearcherwouldrepeattheassessment,theairlines
couldbeassignedtodifferentcommitmentlevelsofCS.However,bystrivingfortransparency
throughout the thesis I aim to enable the reader to understand and interpret the results
himself.Furthermore,multiplefiguresandtablesaresupposedtoguidethereaderthroughthe
36
logicalstructureofthisthesis.Finally,relevantappendiceshavebeenattachedtothethesisto
provide the reader with an additional overview of interesting information. This relevant
informationincludesillustrationsoftheories,alistofthemainconcepts,informationaboutthe
companiesandtheirCSstrategies,andtranscriptionsofthepilotinterviews.
5 IndustryAnalysis
5.1 Trendsandissuesintheairtravelindustry
The traveland tourismsectorhasbecomeoneof thedriving forcesofglobalemployment,
economicsecurityandsocialwell-beingofthe21stcentury.AndasTravelandTourismisone
oftheworld’slargestandfastestgrowingeconomicsectorsitcanbekeydriverofsustainable
growth.However,torealizethistransformativeroleconcertedactionfromeveryoneinvolved
isnecessarycallingforasuitablepolicyframeworkandcoordinationbetweenpublicauthorities
and private stakeholders. It’s a collective challenge to invest in environmentally-friendly
tourism,toinvestintoagreeneconomy.(Conrady,2011)Todayitiscommonknowledgefor
touristsaswellaswell-documentedforairlinesthattherisksofoverdevelopmentandover
exploitation of natural resources and environments are real. And they cannot be ignored
because the industrydependson its sustainability.Often incontrast to thisknowledge, the
following five trends and issues appear in the air travel industry (other travel book). These
trendsmustbetakenintoconsiderationbytheairlineswhenplanningtheirCSstrategy.The
trendsoftheairlineindustryhavebeenidentifiedbyG.Kentinthisbook‘AProfileoftheGlobal
AirlineIndustry’asfollows(Kent,2015)andc.Rolandinhisbook‘TrendsandIssuesinGlobal
Tourism’from2011and2012.
5.1.1 Increasedcompetition
Whiletheairlineindustryhasfascinatedtheworldsince1903,commercialaviationwasonly
establishedduringthe1950s,60sand70s.Intheendof1970,theAmericanCongressdecided
toderegulatepassengerairlinesandthus,competingovertheskybeganasmanynewcarriers
entered themarketplace. In 1992, the creationof the EU's SingleAviationMarket enabled
European airlines to flywithout restrictions anywhere in the EU. The gradual liberalization
processinEuropefacilitatedthemarketentryofnewoperatorssothattheproliferationoflow
37
costcarriershadstarted,notifiableduringatimeofregression.Themainobjectionoflowcost
carrier´s (LCC) businessmodel is to reduce costs to supply airline service to price sensitive
passengers.DuetotheincreasedhighcompetitionintheaviationmarketmanyLCCsandother
establishedairlineseitherleftthemarketorwereacquiredbyothercompanies.Ryanairand
Easyjet remain themost established players in the LCC category. As a result of the supply
increase created by the new entrants withmore competitive tariffs, a strong reduction in
incumbents’revenueonrouteswithinEuropewasgenerated(thebusinessmodelisnotaligned
tocompleteoninternationalroutesyet).Furthermore,theinternetandfaresearchengines
havestronglyincreasedthetransparencyofairlinepricing,whileatthesametimeairlineticket
prices have become the main driver for customer purchasing behavior. Altogether, the
inflationaryspiralputspressureonthepricingforallairlines.From1989,itbeganthatlarge
strategicallianceswereformedvoluntarilymoreandmoreoften.Today,thelargestalliances
areStarAlliance(27members)andSkyTeam(20members),andOneWorld(13members)that
alltogethertransport61,2%ofallpassengersintheworld.Oneofthereasonsforthatisthat
airlineswanttoextendtheirroutesandflytomoredestinationstostaycompetitive.Evenmore
illustrativeforthefiercecompletionistherecentinsolvencyofAirBerlinonthe15thofAugust
2017.Asoneofthetop10EuropeanairlinesandsecondbiggestairlineinGermanyAirBerlin
stillhasbeenloss-makingforyearsandthus,wasmerelysurviving.TheGermangovernment,
likeItaly’sbeforeitwithAlitalia,isnowhelpingtofindasolutiontoprotectjobs.(TheGuardian,
2017b)
5.1.2 Hypermobility
Thedemand for air travel increases, especially innations suchasChina, India and those in
Africa.Onaglobalscaletheeconomyisimprovingwhichmakestravellingaffordabletomore
andmorepeople.IATAprojects:In2011,therewere2.8billionpassengers,in20143.3billion
passengers,andtheamountmaydoublewithin20yearssothatin20347.3billionpassengers
areexpected,andin2050theremightbe16billionpassengers.Thisforecastthenimpliesa4.1
percentgrowthrateindemandforairconnectivity.ChinaandtheUnitedStatesareexpected
toremainthelargestpassengermarketbyfarbuttheAsianmarketalsoexpands.(International
Air Transport Association (IATA), 2017) The main drivers for this current and increasing
hypermobilityarethefollowing:
38
- Living standards/prosperity:Whenanation´seconomy is strong, airlines thrive.And
whentheeconomyisweak,theystruggle.
- Populationanddemographics:youngerpopulationsandworking-agegroupsaremore
likelytoflythanover65yearolds.
- Priceandavailability:Globally,realcostsdecreasedbyover1percentannuallywhileair
trafficgrewbyover1percent.
Europe faces similar trends: in theperiod1995–2013, averageannual growth inpassenger
transportintheEUwas1.0%.Thenumberofdailyflightshasincreasedfromlessthan10,000
in1992toaround23,000in2016.Today,thereare7,400routesinEuropewhichis3timesas
muchasin1992.In2015,over1.45billionpassengersdepartedorarrivedatEUairports.The
growingaviationindustrybringsEuropeeconomicgrowth:Moreflightsmeanmorebusiness,
tourism,trade,jobsandprosperity.In2014forinstance,aviationsupported8.8millionjobsin
theEUcontributingover€621billion.(EuropeanCommission,2016)Roundingitup,holidays
becameanintegralpartofourlifestyle.Long-distancetravelsarenolongeraprivilegeforonly
afew,butanorganizedmasseventwhere“thepricesetsthedirection”whilehundredpercent
customer-orientationandsatisfactionofneedsaretakenforgranted(Conrady,2011).
5.1.3 Environmentalissues
Figure5 -Theimpactofair transportonthe increasingGHGemissionsoftheindustry
39
IntheEU,transportaccountsfor31.6%offinalenergyconsumption,outofthis82.8%isaresult
ofroadtransportand13.2%ofintra-EUairtransport.Notably,theshareoftransportemissions
increased from 18.8% in 1990 to 25.3% in 2012, while the share of emissions from non-
transportsectorsdeclined(Gössling,2017).ThismakestheairTransporttooneofthefastest-
growingsourcesofgreenhousegasemissions.Mistakenlyinsignificantcanbeseenthefacts,
thatAviationaccountsforabout3%oftheEU’stotalgreenhousegasemissionsandmorethan
2%ofglobalemissions.Thesenumbersappeartobemoredrasticallyinotherwords:Ifglobal
aviationwasacountry,itwouldrankinthetop10emitters.TheEuropeanCommissionpredicts
thatby2020,global internationalaviationemissionsareprojectedtobearound70%higher
than in2005andthe InternationalCivilAviationOrganization(ICAO) forecaststhatby2050
theycouldgrowbyafurther300-700%(EuropeanCommission,n.d.).Since2012,aviation´s
emissionshavebeenincludedintheEUemissionstradingsystem(EUETS)whichobligatesall
airlinesoperatinginEuropearerequiredtomonitor,reportandverifytheiremissions,andto
surrender allowances against those emissions. They airlines can trade a certain level of
emissionsfromtheirflightsperyear.TheEUsystemhascontributedtoreducingthecarbon
footprint of the aviation sector by more than 17 million tons per year so far. (European
Commission,2014)
5.1.4 Ungentletourism
The growing list of World Heritage in Danger proves that there are serious threats from
tourismstotheworld´soldestplaces(UNESCOWorldHeritageCentre,n.d.).Withthethree
followingexamples,Iaimtoraiseawarenessforvariouseffectsfrommasstourismindifferent
places:
- GentrificationinVenice:Venicestatusasaworldheritagesiteisslowlysinkingbecause
it is underpopulated an over touristic. In July 2014, Unesco’s world heritage site
committee postponed the decision on whether to put Venice, the architectural
masterpiecespreadacross118island,onitslistofendangeredsites.In2015followed
aseriousdamningreportabouttheeffectsofovercrowding,constructionandpollution
onVenice’steeteringfoundationsandecology.MostoftheVenetianshavebeenprized
outandcrowedoutso that theresidentpopulation isonlyhalfof thesizeas in the
1970s.Today,Veniceisacityof54,500residentsandreceives30millionvisitorsayear,
ofwhommanyaregrab-and-goday-trippers. Illustrativeforthisdevelopment isthat
40
touristsoftenregardVeniceassomethinglikeDisneyland.Further,it´scriticalthatmore
andmoretouristsarrivebycruiseshipsasstatisticsprovethatcruiseshipsemitalmost
twiceasmuchcarbondioxideasairplanes.(TheGuardian,2017g)
- DeteriorationatKilimandscharo:Inthepasttenyears,thenumberofclimbersonthe
highestmountainofAfricahasnearlydoubled-from28,000touristsin2003to52,000
tourists in2012. (PR)TheNationalParkofKilimanjarowascreated in1972andwas
declaredaWorldHeritageSitein1989.EversincethelocalChaggacommunityislosing
graduallytheircontrolovertheirnaturalhabit,forexampleduetounauthorizedzones
for the local populations but with opened roads for tourists or due to the
institutionalizationofprivatepropertyregimesforwaterusers.Meanwhile,industrial
- deforestation goesonbecause intensive agriculture is subsidized.As a result of the
heavy use of theMarangu route a number of impacts from tourism are becoming
apparentincludinglitter,graffitionthehutwalls,impropersewagedisposal,trampling
of alpine vegetation, trail erosion, and firewood collection. Moreover, the climb is
dangerousforvisitorsandtourguides:therearearound8to10deathsreportedper
yearcausedbyaltitudesicknessbuttheguideservicebelievesthattheactualnumber
ofdeathsistwotothreetimeshigher.(Welch&Symmons,2013)
- Conservation alarm for Great Barrier Reef: Although the world's largest coral reef
ecosystem is protected as aWorld Heritage area since 1981, pollution,mining and
tourismallhavedetrimentaleffectsoncoralreefs.Morethantwomillionpeoplevisit
thereefeachyear.Tourism´snegativeimpacts(therearepositiveimpactstoo)include:
fragile coralsbreakingby reefwalkingordroppedanchors,boatsdropping fuel and
othersortsofpollution.Eventhenumberofpeopleinthewaterwiththeassociated
run-offofsweatandsuntanlotionsmaywellhaveanegativeimpactonthefragilereef
environment.SinceDecember2015,theGreatBarrierReefhasbeenexposedtoabove
averageseasurfacetemperatures,duetothecombinedeffectsofclimatechangeand
astrongElNiño.Theseconditionstriggeredmasscoralbleachinginlatesummer2016
andledtoanestimated29%lossofshallowwatercoralReef-wide,accordingtofindings
bytheGreatBarrierReefMarineParkAuthority.Itisestimatedapproximately28%of
the total reef area in theMarine Park was within the ‘catastrophic damage zone’.
(AustralianGovernment,2016)
41
5.1.5 Impactofpoliticalevents
Airlinesoperateandcompeteinaverycomplexenvironmentthatisalsoverymuchaffectby
politicaleventsasterror,governmentsandlegislationsasIexplainnext:
- Terror – Terrorism´s relationshipwith tourism is complex andmultifacetedbecause
terrorismcanleadtoItcanleadtounemployment,homelessness,deflation,andmany
othersocialandeconomicills(McBaker,2014).9/11,forexample,hittheindustryhard.
SoonaftertwoplanescrashedintothetowersoftheWorldTradeCenterinNewYork,
USairlinesannouncedemployment cutbacksup to20percent. Especially after fatal
terrorist attacks or terrorist attacks of targets such as airports, transportation or
tourists,terrorcausesincreasingpsychologicaldistressforpassengers(Mitra,Pham,&
Bandyopadhyay,2017).Therecentattack inBarcelonashowsoncemorehowterror
makestravelstockstumble.Onthe18thofAugustat8.40a.m.,onedayaftertheattack,
airlinestocksaresufferingandnotonlymajorbudgetairlinesasRyanairwere losing
more than 2% in early trading but also the International AirlinesGroup, the parent
companyofBritishAirways,hasdroppedmorethan2%.ButoneoftheUNWTO’sbasics
hasbeenconfirmedthattourismrecoversevenafterfatalcrisesandthatitrecovers
soonerthanotherindustries.Thus,goingonholidayisconsideredtobealmostcrisis
resistant(Conrady,2011).(BusinessInsiderDeutschland,2017)
- Brexit-EUchiefshavewarnedairlinesthattheywillneedtorelocatetheirheadquarters
orselloffsharestoEuropeannationals if theywanttocontinueflyingrouteswithin
continentalEuropeafterBrexit.ARyanairspokesmansaid:“Whileitappearsthatwe
areheading forahardBrexit, there is still significantuncertainty in relation towhat
exactlythiswillentail.”AfterBrexit,itisnotclearwhethertheUKwouldcontinuetobe
partofthe“open-skies”agreement.ABritishgovernmentspokespersonsaidthatitwill
clearlybeintheinterestsofbothsidestomaintaincloselyintegratedaviationmarkets
becausetheUKaviationindustryisthelargestinEurope.However,MichaelO’Learyhas
warnedofthehugedangerstotheindustryofa“cliff-edge”Brexit,andcriticizedthe
“mildlylunaticoptimism”oftheBritishgovernment.(TheGuardian,2017f)
- USPresidentTrump-DonaldTrumpisgoodforsurpriseswiththefollowingeffectson
the travel industry: First, Trump confirms that the US, the World’s second largest
greenhousegasemitter,willquittheParisAgreementbecauseitwillharmAmerican
jobs. Trump’s decision risks destabilizing the Paris deal, with remaining participants
42
facedwiththechoiceoftryingtomakeuptheshortfallinemissionscutsorfollowing
theUS’sleadandabandoningtheagreement.Alsoin2017,PresidentDonaldTrump’s
orderedtosuspendedtheentryofpeoplefromIran,Iraq,Libya,Somalia,Sudan,Syria
and Yemen throwing airports into chaos. The decision caught airlines off guard,
accordingtoIATA,andbringsamixofadministrativeconfusion,uncertaintyformany
travelers and practical operational complexities for airlines in planning their flight
programs,accordingtoanindependentaviationconsultant.Furthermore,theUSforbid
passengers from carrying larger electronic devices (laptops, iPads, Kindles) on some
flightsfromeightcountriesintheMiddleEastaffectingforexampleSaudiArabia’sSaudi
AirlinesandRoyalJordanianairlines.(TheGuardian,2017c,2017i)
5.2 ConsequencesforSocialAspects
Fromthetrendsoutlinesabove,Iconcludethattheairlineindustryhasseenfewfundamental
challengestobusinessmodelsoverthepast30years,exceptforthearrivalofLCCsandthe
introductionofalliances.Asgovernmentspassnewlegislationsandconsumersexpectmore
personalized solutions, stakeholders gain bargaining power while airlines themselves lose
control.At the same time the airlines themselves lose control and struggle todifferentiate
themselves, competing on network availability and to some extent on pricing and service.
(InternationalAirTransportAssociation(IATA),2017)
ToelaborateinmoredetailonhowthesetrendshaveaffectedthesocialdimensionofCSin
the air travel industry, I summarize themain findings from a survey concerning the social
developmentsinemployment,wagesandworkingconditionsintheEUairtransportmarketin
theperiodfrom1997to2007.DuetothelackofothersourcesavailableatEUlevel,thissection
reliesheavilyonthisstudybyECORYSNetherlands(EuropeanCommission,2007).Ingeneral,
thesocialdevelopmentsarerelatedtotheeconomictrendsandtheincreaseinemployment
inthepasttenyears,aawellasthefinancialcrisisthatthesectorexperiencedbetween1999
and2004.Thesurveybringsforwardthatthemainissueofworkingconditionsistheincreasing
operational pressure, exerted to foster productivity. It is plausible that the increased
competition(andlowerfares)ontheshorthaulmarkethavemadeitnecessaryforairlinesto
increase productivity. Looking more detailed to changes in these social issues concerning
43
governanceandresponsibilitytowardsemployeesonefindsthatinterviewedemployeesand
tradeunionshaveoftendifferentopinions,whichwasexpectedbytheresearchers(Appendix
1,d).
Concerninggeneralglobalsafetyinthefutureofairtravel,ithasbeenindicatedthatastable
fatalaccidentratecannotbeguaranteedanymorebecauseofanexpected5%growthincrease
until2030(thenumberofcommercialaircraftinoperationisanticipatedtodoubleby2031).
Instead,thenumberofaccidentsareexpectedtoincreaseasaby-productofsteadilyincreasing
traffic volumes (European Commission, 2015b). However, one need to consider that the
numberof lives lostworldwidefromEUoperatorshasalmosthalvedintheperiodof2010-
2015(averageof78liveslostperyear)comparedtotheperiodof2000-2009(averageof46
liveslostperyear)(EuropeanCommission,2016).Anothersafetyissuewhenflyingwasrecently
revealedbyIATA:Almost50.000unrulypassengerincidentswerereportedonaircraftsin-flight
between2007and2015.Theseincidentsincludeviolenceagainstcrewandotherpassengers,
harassment and failure to follow safety instructions. Not only does
unrulybehaviorthreatenpassengersafety,italsodisruptsoperationalproceduresandburdens
airlineswithadditionalcosts.(InternationalAirTransportAssociation(IATA),2016)
5.3SustainabilityReporting
KPMGestimatesthat60%oftheworld’slargestcompaniesareproducingsustainabilityreports.
Althoughthenumberofreportsisincreasing,onemustrealizethatreportingcompaniesstill
constituteonlyasmallshareofglobalbusiness(Knopfetal.,2010).Hahnassessesin2013,that
a wide span of labels for recent reports exists including: Corporate Citizenship Report,
Corporate(Social)ResponsibilityReport,SustainableDevelopmentReport,SustainableValue
Report,andSustainabilityReportwhichunderscorestheumbrellaconceptofsustainabilityand
CSRmentionedabove (R.Hahn&Kühnen,2013).Next to isolatedone-dimensional reports
(e.g., Environment Reports, Financial Reports), there is an increasing trend towards
multidimensionalreporting(reportsincludingtwosustainabilitydimensions)andrecentlyeven
integratedreporting(integratessocialandenvironmentalsustainabilityinformationtogether
withfinancialinformationinasinglereport).Nevertheless,toprovideaholisticpictureofvalue
creation over time the company must report simultaneously all three dimensions of
44
sustainability.(ibid)Thegoalisforcompaniestocommunicatetheirsustainabilitypracticesand
impactsinwayswhichmakesenseforshareholders.But“Itisnotuntiltheystartgatheringdata
thattheycanunderstand,becauseyoucan’tmanagewhatyoudon’tmeasure,”saysoneBoard
memberoftheGRI’sGlobalSustainabilityStandards.(Colquhoun,2016)
Figure6-DifferentreportingstylesasdefinedbyHahn&Kühnen(2013)
5.2.1 Newreportingframeworksandgoals
Current sustainability-related reporting practice is primarily of voluntary nature so that
companiesareflexibleinexperimentingwithdisclosinginformation(R.Hahn&Kühnen,2013).
“Thereisatrendtowardsthedevelopmentofregulationsthatintegrateexistinginternational
reportingframeworkssuchastheGRIortheUNGlobalCompactCommunicationonProgress,
andrequiretheintegrationofrelevantstakeholderssoastoreflectchangeandtofacilitatethe
continuousimprovementofregulations”(Knopfetal.,2010,p.31).
Establishedin1998,theGRIframeworkwasasignificantsteptowardscodifyingCSreporting
standardsenablingthirdpartiestoassesssocialandenvironmentalactivitiesofthecompany
and its supply chain. The guidelines from the world´s most used sustainability reporting
standardGRI used to focusedon the impacts on the environment. But theGRI committee
committedquicklyextendedtheguidelinesforamorecomprehensivescopeincludingsocial,
economic, and governance information. (Bradford et al., 2016) Now, The GRI suggests
reportingonnearly80sustainabilityactivities,called‘‘indicators,’’insixdifferentcategoriesor
‘‘dimensions’’Thesedimensionsarelaboranddecentwork,economic,environment,human
rights (Global Reporting Initiative (GRI), n.d.). New standards, such as theG4 Sustainability
ReportingGuidelinesissuedbytheGRI,gofurtherintoquantitativeissuesinthesupplychain
tocreatereportswhichdon’tjusttickthecomplianceboxbutarecreatedfromadeeperview.
Deloitte’s lead partner in the Sustainability Team Paul Dobson argues, “Companies now
45
understandtheyhavetotakeresponsibilityandmakesuretheirproductsarebeingproduced
inanappropriateway,andthatmeansunderstandingbusinesspartnersandwhattheydo”.
(Colquhoun,2016)
In2015, the17SustainableDevelopmentGoals (SDGs)of the2030Agenda for Sustainable
DevelopmentwereadoptedbyworldleadersinSeptember2015atanhistoricUNSummitand
in2016,theycameofficiallyintoforce.TheSDGsprovidearoadmapforendingallformsof
poverty, fighting inequalitiesand tacklingclimatechange,whileensuring thatnoone is left
behindoverthenext15years.(ProducedbytheEnvironmentBranchoftheInternationalCivil
AviationOrganization (ICAO),2016)UNGlobalCompactprovides the tools tohelpbusiness
transforming these17global goals into concreteactions. TheUNGlobalCompact supports
businesses to commit to, assess, define, implement, measure and communicate the
sustainabilitystrategy.IntheUNGlobalCompactCommunicationinProgress(COP)participate
approximately9,000companiesand4,000non-businesses.Allparticipantshavetoimplement
theGlobalCompact´stenprinciplesaspartofstrategy,cultureandday-to-dayoperations,and
annually report this implementationalongwithefforts tosupportsocietalpriorities totheir
stakeholders. If participants fail to disclose they will be expelled from the Compact (7208
companiesdelistedsofar).(TheUnitedNationsGlobalCompact,n.d.)Thenew17GlobalGoals
result froma process that has beenmore inclusive than ever,withGovernments involving
business,civilsocietyandcitizensfromtheoutset.
Figure7-ThebroadscopeofSDGsdeterminesglobalactionforpeopleandplanet
Inthesameyear,in2015,theEuropeanCommissionpublishedacomprehensivestrategyfor
theEuropeanaviationsector.TheroadmapforamorecompetitiveEUaviationsectorcallsfor
coordinatedeffortsofallthestakeholdersinvolved.TheCommissionhasidentifiedthreekey
priorities:1)Tappingintogrowthmarkets,2)Tackling limitstogrowthintheairandonthe
46
ground, and 3)Maintaining high EU safety and security standards. (European Commission,
2015a)Nexttoeconomicgoalsthethirdpriorityaddressessocialandenvironmentalissuesfor
asustainabletravelindustry.MaintaininghighEUsafetyandsecuritystandardsinlcudestasks
asreinforcingthesocialagendaandcreatinghighqualityjobsinaviationaswellasprotecting
passengers'rights.InApril2014,theEuropeanParliamentvotedontheproposalforadirective
onthedisclosureofnon-financialinformation:Startingnowfrom2017,largecompanies(with
more than500employeesandabalance sheet totalofmore than20millionEuroor sales
revenuesofmorethan40millionEuro)intheEUareobligedtodiscloseallinformtionabout
thesocialandecologicalaspectsoftheirbusinessasforcedbytheCSR-Guideline2014/95/EU.
(Nachhaltigkeitsrat,2016)
5.2.2 Reportingprofilesanddimensions
“Sustainabilityreportingbecomesanimportanttooltogiveaclearimageofacompanyand
alsotomakeitcomparablewithothers”(Elkington,1997,p.9).Toppinen(2012)examinesthe
levelofvoluntarydiscloseddata(GRIindicators)from66forestindustryfirmsandclustered
the 66 firms according to their reporting profiles: 38 firms were considered defensively
reporting CS and 12 proactively reporting, while the rest was stuck in the middle. I have
includedavariationofToppinenfindingsintable6becauseitshowshowmuchlessdeveloped
thesustainabilityaspectsofthesocialdimensionarecomparedtotheenvironmentalaspects,
especiallyforthesefirmswithinanenvironmental-sensitiveindustryastheforestindustryis.
(Toppinen et al., 2012) Moreover, I aim to highlight in table 6 that, despite a crucial
improvement for reporting on
Environmental and Product & Service
issues,proactivelyreportingcompanies
still lack a commitment to report on
HumanRightsandSocial issues.While
companies keep highly proactively
reportonenvironmentalinitiatives,the
issuesconcerningthesocialdimension
ofCSarerelativelyviolated.
CSaspectsbyToppinen
Defensivereportingprofile
Proactivereportingprofile
Economic 12,88 20,89
Environmental 43,65 89,13
Labor&Employment 18,62 30,20
HumanRights 10,00 13,80
Social 9,12 14,79
Product&Services 9,12 23,44
Table6-Reportingdisconnect:socialissueslessimportantthanenvironmentalissues
47
Which dimensions are more important, Bradford (2016) tries to reveal: He finds out that
customers of the reports find different sustainability dimensions important than the
dimensions put forth by the GRI framework. According to his results, the customers are
interestedinthereportingofRisk&Complianceactivitieswhiletheyarelessinterestedinthe
economicdimensionofreports.Additionally,thenewdimensionofSocialJusticeisthemost
important to consumer stakeholders. In contrast to the interests of customers, companies
proactivelyreportmostlyonenvironmentalissues.Altogethermyconclusioniscongruentwith
Bradford´s:thereisadisconnectbetweencorporatesustainabilityreportingandstakeholder
viewsandinterests.(Bradfordetal.,2016)
5.2.3 CSCertificationsDifferent stakeholders are increasingly relying on sustainability ratings to help inform their
decisions(toinvest,purchase,worketc.).Moreover,companiesthemselvesrelyonsuchratings
to validate their sustainability efforts, with “some even linking management performance
evaluationandcompensationtoexternalratings”(JohannaKleinMSc(adelphi),2011,p.20)
International sustainability ratings that are related to stock exchanges are the Dow Jones
Sustainability Indexes (launched in 1999) and the FTSE4Good Index Series (Financial Times
Stock Exchange Index) on the London Stock Exchange. DJSI assesses the sustainability
performanceofthelargest2,500companieslistedontheDowJonesGlobalTotalStockMarket
Indexbasedontheirlong-termeconomic,socialandenvironmentalassetmanagementplans.
Foreachindustry,DJSIliststhetop10%,butnotthe“top10”.Introducedin2001,FTSE4Good
lists only those companies thatmeet the internationally accepted standards for corporate
responsibilityandgiveseachcompanyascoreof1-100basedonitsperformanceacrossthree
areas,environmentalmanagement,climatechange,humanandlaborrightsalongthesupply
chain,corporategovernance,andanti-corruptionefforts.(JohannaKleinMSc(adelphi),2011)
Rating agencies usually use the information from sustainability reports or send their own
questionnairestothecompanieswiththeaimtocontributetothetransparencyintheactivities
andstrategiesofcompanies.Oftencriticizedisthattheseagenciesusedifferentratingcriteria
andoftenthecriteriaarenotcleartothecompanies.Moreover,itevenhasbeenarguedthat
these ratings could incite companies to disclose false data or held back ambiguous data
48
(JohannaKleinMSc(adelphi),2011).Alsointerestingforthisresearch,ittheCSRHubLLC,the
first one (by own information) to aggregate environmental, employee, community and
governancedatacovering15,000companiesacross135industriesand130countriesintoan
accessible database platformmaking it possible to directly compare CSR and Sustainability
performanceamongcompetitorsandacrosssupplychains,industries,andregions.(CSRHub,
n.d.)ForreputationreasonsacompanythatislistedintheDJSIorawardedbyanotherrating
systemhardlymissesoutonlistingitontheirwebsitesorreports.
6 EmpiricalFindings
Thischaptercontainsthefindingsfromthecontentanalysisofthethesis. It isstructured in
accordancewiththeanalyticalframeworkfromBaumgartnerandMarrewijkaspresentedin
chapter3,table3and4.Foreachofthefourairlines,initiativesintheeightaspectsofthesocial
dimensionofCSareanalyzed.Beforepresentingexamplesofthesocialinitiatives,table7gives
anoverviewofthereportingstandardsusedbytheairlinesaswellascertificationsandrating
theyreceivedfortheirsustainabilityperformancein2016.Table7givesafirstimpressionof
theairline´sdifferentreportingstylesandtheircommitmentleveltowardsCS.
Reportframeworkandratingfor2016
UNSDG/principlesofUNGC
GRI DJSI FTSE4GoodCSRHub*
CS-reportingsince
LufthansaGroup
Committed Used(G4)
Notincludedanymore
listedsince2001
56 1994
AirFrance–KLMGroup
Committed Used leaderofAirlinecategorysince2005
Listed 68 1999
IAGCommitted Not
usedNotincludedanymore
Notlisted 59 2011
RyanairPlc
Signedsince2003
Notused
Notincluded Notlisted 49 -
Table7–Europeanairlines´reportingframeworksandsustainabilitycertifications
*seeAppendix3
49
6.1 LufthansaGroup
6.1.1 SocialinitiativesreportedCorporateGovernance
TheExecutiveBoardandSupervisoryBoardhaveacloseandtrustingworkingrelationship.The
commonaimoftheExecutiveBoardandtheSupervisoryBoardistoachievelastingincreases
in the value of the Company. The Supervisory Board is made up of equal numbers of
shareholderandemployeerepresentatives.TheExecutiveBoardinformstheSupervisoryBoard
atleastfourtimesayearonbusinessdevelopmentsattheGroup.Also,theLufthansa´sBoard
declaredcompliancewiththeGermanCorporateGovernanceCode(withoneexception).And
themanagementoftheLufthansaGroupisvalue-basedandanintegralpartofallplanning,
managementandcontrollingprocessessince1999.
HealthandSafety:
Health protection and occupational safety have been central action areas at the Lufthansa
Group formany years. The Group assessed both aspects as being “very important” in the
materialitymatrixdevelopedin2016.AnOccupationalSafetyCommittee(OSC)wasestablished
as thecentral steeringbody forall issuesconcerningwork-relatedsafetywithin theGroup.
Furthermore,theLufthansaGroupoffersitsemployeesandmanagersaccesstotheservicesof
thePsychosocialCenterasavoluntarysocialbenefit.In2016,thedivisionorganizedatotalof
184workshops,trainingsessionsandinformationevents.
Workingenvironment:
Lufthansa asked an expert the question of what effects Digitalization has on the Work
Environment4.0andlearned“itisimportanttocreatejobsthatallowforfuturechanges.The
50
broaderthedefinitionoftasksandthemorequalifiedtheemployeesthegreateracompany´s
abilitytoinnovateinthefuture.”Consequently,theLufthansaGroupCAMPUSoffersformats
for developing individual (leadership) competencies as well as those to support team
developmentandorganizationalchangesincetheendof2016.TheLufthansaGroupCAMPUS
thustakesaroleincontinuousandhigh-qualitypersonneldevelopmentaswellasinalong-
term dialogue between employees andmanagers across the entire company. Shaping the
actionarea“Cultureandleadership”wastransferredtotheLufthansaSchoolofBusinessduring
thereportingyear,whichatthesametimeevolvedintotheLufthansaGroupCAMPUS.Against
thisbackground,thealignmenthaschangedfroman interdisciplinaryeducationproviderto
driverofculturechangesattheGroup.
Humancapitaldevelopment/Diversity:
TheLufthansaGroupisoneofthebiggestemployersinGermanywitha3%increaseoftotal
employeeslastyear.Outoftotal124,306employees,56,125employeesworkin85countries
outside of Germany (previous year: 53,732) which makes Lufthansa Group a truly global
company.In2017,theyearofDigitalizationatLufthansa,itistheirgoaltobeoneofthemost
attractive employers for “digital natives”. Furthermore, the Company has explicitly defined
Diversityasastrategicelementthatsecuresandexpandseconomicsuccess.Theworkingforce
represents 144 nationalities. Additionally, the Lufthansa Group launched the project
“Promotingwomeninmanagement”during2016becausethenumberoffemalemanagersin
upper-levelmanagementpositionshaschangedtoolittleoverthelastfewyears,astheystate.
DespiteincreasedawarenesswithintheCompany,atthemoment,85percentofthemanagers
are male (Leadership Circle 1-3). They also report clear targets: At the end of 2016, the
proportionofwomenontheGroup’sfirstmanagementlevelcameto9.7percent(target:10.5
percent),andonthesecondmanagementlevelto17.3percent(target:17.9percent).
Ethics/Humanrights:
51
TheLufthansaGroupisamemberoftheUNGlobalCompact,TransparencyInternational,the
German Network for Business Ethics and of institutions that support individual aspects of
humanrights.Inthisway,theGroupexplicitlyacknowledgesitsadherencetotherespective
standardsandcommitstoaligningtheirbusinessactivitiesandstrategieswiththetenprinciples
oftheUNthatarerecognizedaroundtheworld(includingtorespecthumanrightsandtofight
againstcorruption).Duringthereportingyear,theLufthansaGroupworkedintensivelyonthe
topicofhumanrights.OnetaskwasthedevelopmentofariskmapfortheGroupthatshows
thenumberofemployeesbygeographicregionandthecompaniesactivelocally.Intheevent
ofcomplaintsconcerninghumanrightsissues,themaphelpstreatingthemindecentralized
formatandwithappropriatecountermeasuresbasedoncurrentlaw.
Nocorruption:
LufthansahasbeenamemberofTransparencyInternational,anAnti-corruptionorganization,
since1999.AfurtherbasiccomponentoftheLufthansaComplianceProgramistheglobally
implemented and proven ombudsman system, which also allows anonymous information
concerning possible breaches of compliance. It serves as an additional preventivemeasure
againsteconomiccrimes.Relevantinformationcanbegivenbyemployeesorbythirdparties
toanombudsmanoutsidetheCompany,bytelephone,inwritingorinperson.
Consumers/Suppliers:
Orientation in line with customers’ wishes and needs, includes for example appropriate
informationaboutenvironmentalandsocialeffectsofproductsandservices.Since2014the
LufthansaGrouphasbeenworkingintheprojectSMILE,adigitalinnovationwiththepurpose
ofmaking communicationswith customers along theentire travel chain aspersonalized as
possibleandtoofferaddedvalueinthisway.ThankstoSMILE,passengersreceivetailor-made
flightoffers,travelinformationaswellasoffersforadditionalservicesandoptions–allinreal-
timeviadigitalcommunicationchannels.Suppliersmusttakethestandardsandprinciplesof
UnitedNations’UniversalDeclarationofHumanRightsandthefourcoreworkstandardsofthe
InternationalLaborOrganizationintoaccount.
Corporatecitizenship:
52
TheresourcestheGrouphasmadeavailableforvariousactivitiesforsocialcauseshaveoverall
notshownthedesiredresultsduetoahighdegreeofdivisionintoindividualprojects.Forthis
reason,theLufthansaGrouphastheplantobundletheircorporatecitizenshipactivities.Now,
theyplantofocusmoreandmoreonsocialandhumanitarianissues.That´swhyin2016,the
LufthansaGrouptookalong,hardlookathowtokeepdevelopingitssocialcommitment.A
prerequisiteforthiswasthetransformationoftheHelpAlliancee.V.employeeinitiativeintoa
non-profitGmbH (limited liability company)at thebeginningof2017enablingLufthansa to
concentrateentirelyon the coreareasofeducation/enablingand life/healthandgiveeven
moreaidfoundations.In2016,thehelpalliancesupportedabout40projectsindevelopment
cooperationwith a total volume of nearly 1.5million euros. Help alliance project portfolio
comprises numerous education and integration programs for refugees as for example the
Düsseldorf-based learning-and-coaching project for children and youths with a migration
backgroundand fromeducationallyalienated families. Lufthansa’shumanitarianaidproject
calledCargoHumanCare(CHC)focusesonKenyaandprovidesdirectmedicalsupportforpoor,
illanddestitutepeople–freeofchargeandunbureaucratically.Throughthehelpofapoolof
50Germanmedicaldoctorswithdifferentspecializations.All treatmentsaregivenatCHC’s
ownmedicalcenterinNairobi.Thecenteralsoprovidesfreemedicalcaretoneedypeoplefrom
thesurroundingareaandto120orphanslivingatMothers’MercyHomeinKianjogu,
6.1.2 Commitmentlevel
LufthansaGrouphasaproactivereportingprofilebecausetheyareeagertohighlightimportant
figures and facts as well as differentiate between approach and goals of sustainability
initiatives.TheGroupalsomanagestogaincredibilitybystayingcriticaltowardstheirownCS
strategy. (see example of corporate citizenship in thesis and interview about “promoting
womeninmanagement”,reportp.66)
CommitmentlevelofCS Beginning Elementary Satisfying Sophisticated,Outstanding
Corporategovernance L Health&Safety LWorkingenvironment LHumanCapital/Diversity L Ethics/HumanRights L
53
Nocorruption LConsumers/Suppliers L Corporatecitizenship L Table8–TheCSstrategyofLufthansareachesaverysatisfyinglevelofcommitment
Conclusion:
LufthansaGroupreachesaverysatisfying levelofcommitment towards thesocial issuesof
corporatesustainability.Notallactivitiesaremorethansatisfyingbutsomeareoutstanding.
Theircorporategovernanceseemseagertocomplywithseveralframeworkstocreatevalue
forthecompany,buttheydonotreporthowtheyenhancetransparencyorparticipationof
employees.TheirHealthandSafetystrategyseemsproactiveandtheiractivitieseveninclude
the socio-psychological dimension. Lufthansa´s commitment towards a good working
environment is also sophisticated as they seek to give non-monetary incentives through
qualification and recognize the importance of innovation and change of behavior for a
sustainable competitive strategy. AlthoughGermany biggest employee Lufthansa admits to
theyhavenotreacheditsgoalsyetwithinHumanCapitalDevelopmentandDiversity,theyhave
sophisticatedpolicies for emancipationofwomen to improve in this field. Regarding social
issuesexternally, theairlineactsproactivelywhenapplyinghumanrightsandmeasurehow
theyfightcorruption. Inbothareas,consumers/suppliersandcorporatecitizenshipthefirm
showsgreatambitionandoutlineconcreteplanstoimprovecreatingvalueforconsumersand
communities.
6.2 InternationalAirlinesGroup(IAG)
6.2.1 SocialinitiativesCorporateGovernance:
BAhasextendedthescopeofsustainabilitygovernancetoincludealltheoperatingcompanies
andbusinessunitswithintheGroup.TheIAGManagementCommitteeandBoardhavealso
approvedtheestablishmentofanewSustainabilityCommitteebringingsustainability in line
with other governance models. The IAG Sustainability Committee reports regularly to the
ManagementCommitteeandatleastonceayeartotheIAGBoardonsustainabilityrisks,in
linewiththerequirementsofourSpanishCorporateGovernanceCode.
54
HealthandSafety:
BAassistscolleaguesintakingaholisticapproachtobuildingtheirphysical,mentalandsocial
health:Anextensivehealth surveillanceprogramhelps tomonitorcolleagueswhosehealth
maybeadverselyaffectedbyhazardsatwork.AnEarlyActiveRehabilitationprogramscheme
assistscolleagueswhoareunabletoaccesstimelymedicaltreatmentfromotherresources.
Andaccess toanEmployeeAssistanceProgram,available365daysa year,24hoursaday,
providesfreecounselling,information,andsupport.BritishAirwaysprovidescertainadditional
post-retirementhealthcarebenefitstoeligibleemployeesintheUS.
Workingenvironment:
BAensuresaninclusiveculture:thereareemployeenetworksintheareasofethnicity,LGBT,
gender,workingcareandfaith.BritishAirwaysrecognizesthevaluethesenetworkgroups.IAG
reports that on average, the annual hours of training per employee have increased 1,7%
comparedtolastyearandreached36,7hoursin2016.
Humancapitaldevelopment/Diversity:
Asoneofthelargestairlinegroupsintheworld,IAGcontributestoglobaleconomicprosperity
bytransportinggoods(5,454milliontonsofcargokilometers)andconnectingpeople,places,
communitiesandcultures.TheGroupcontractedalmost2500newemployeesin2016implying
agrowthrateof4.1%.
55
Genderequalityhasbeenakeyconsiderationinplanningthelong-termcompositionoftheIAG
Boarditselfandfurtherstrategiesare inplaceacrosstheorganizationtoencouragegreater
genderequality.TheGroupreportsa44%percentrateoffemales intheGroup,27&inthe
seniormanagementand25%intheBoard.FromtheUNSDG´stheGroupconsidersGoal5:
Gender equality, and Goal 8: Decent work and economic growth, as relevant for their
sustainabilitystrategywithinthesocialdimension.
Ethics/Humanrights:
BAiscommittedtoupholdlocalandinternationallawsonanti-discriminationandexpectboth
colleagues and customers. Furthermore, IAG is part of the UKModern Slavery Act, which
requiresthemtopublishaGroupwidestatementoutliningactivitiesinthisimportantarea.IAG
havemadeeffortsinthepasttoensurethattherearenoexamplesofmodernslaverywithin
theirbusiness.Theyconductauditsandinspectionstoreduceanylikelihoodofactivitywithin
oursupplychainsaswellason-boardoftheaircrafts,particularlyinrelationtohumantracking.
In2017,IAGwillpublishastatementoutliningourcommitmenttoreducingmodernslaveryon
theirwebsite.
Nocorruption:
In 2016, IAG received significant monetary fines for non-compliances with laws and
regulations.Thetotalfineswere1,2millionEuros,whichreflectsanincreaseof158%compared
tothepreviousyear.
56
Consumers/Suppliers:
British Airways states that all colleagues receive training on diversity and inclusion to be
equipped with the knowledge and skills needed to provide a uniquely personal service to
customers.BritishAirwaysfocusesoncustomerexperienceinacost-efficientmannerandaims
to improvetheirservicesandproductsas follows:Prior to travel,customershaveaccess to
travelhealthadviceonba.comand intheHighlifemagazine, installationofWiFionaircraft,
renovatethepremiumcustomerloungesatkeyairports.Regardingtheirsupplychain,British
Airwaysalwaysseekstobuildrelationshipswithsupplierswhosharetheirvalues.Theairlineis
proudtobemembersofSedex(SupplierEthicalDataExchange),anotforprofitmembership
organizationthatstrivestoimprovesupplychainstandards.IAGalsoengageswithsupplierson
standardsofquality, safety,environmental responsibilityandhuman rights. Supplier audit
priority is based on annual expenditure, factories located in high-risk geographies, and the
supplier strategic importance. In 2016, IAG continued progress on health, safety and
environmentbyexecutingauditsandworkingonmitigationactions togetherwithsuppliers
throughafocusonsafetyleadership,trainingandlocalprograms.
Corporatecitizenship:
IAG´s total direct and in-kind donations to charity from IAG´s customers and colleagues
decreased since 2012 and only in 2016 it decreased by 18,7%. Still, the total amount of
donationswas9,3millionEurosin2016.In2017,IAGwillcontinuetoengageininternational
discussionsaboutputtingacostoncarbontobuildfurtheronacarbonemissionsglobalmarket
basedmeasure.ItisreportedaboutFlyingStartwhichistheglobalcharitypartnershipbetween
British Airways and Comic Relief. British Airways wants to help giving children in the
communitieswhichtheyflytothechancetohaveabrighterfuture.Thatiswhy100%ofmoney
raisedbyFlyingStartfromdonationsfromcolleaguesandcustomersgoesdirectlytoComic
Relief.ThelaunchofBigCharityChoicein2016enabledthat£200,000wasallocatedacrossfive
youthcharities.Intotal,FlyingStartfundraised3millionPoundsin2016.
6.2.2 Commitmentlevel
BritishAirways´ reportingprofile is neitherproactivenordefensive.On theonehand,BA´s
annualreportmostlyreportsonfinancialissues,andbarleyincludessustainabilitydimensions.
Ontheotherhand,theBritishAirways´parentcompanyIAGreportsinaholisticwayonthe
57
economic,environmentalandsocialissuesintheirannualreport.Also,importanttonoticeis
thattheGroupreportsrelevantdatainnumericalformwhichmakesiteasiertointerpretand
comparetheirperformances.Atthismoment,BAseemstostuck-in-the-middleregardingtheir
reportingstyle.
CommitmentleveltowardsCS
Beginning Elementary Satisfying Sophisticated,Outstanding
Corporategovernance IAGHealth&Safety IAG Workingenvironment IAG HumanCapital/Diversity IAG Ethics/HumanRights IAG Nocorruption IAG Consumers/Suppliers IAG Corporatecitizenship IAG Table9-TheCSstrategyofIAGshowsalmostasatisfyinglevelofcommitment
Conclusion:
For now, IAG just failed to reach a satisfying level of commitment towards social issues of
sustainability.Myargumentsforthisjudgmentisasfollows:IAGhasanoutstandinggovernance
regarding sustainability issues due to their new sustainability committees. However, the
corporation´s responsibility towards employees are just on an elementary level. Social
programsexistbuttoanextendthatdoesrathersignalaprofit-drivenmotivationbehindCS
than a caring motivation for CS. The Group´s intention to improve various social aspects
underline its development stages. Further, the firm´s responsibility towards external
stakeholders seem not satisfying yet, mainly because of fees for corruptive behavior and
decreasingdonations.Onagoodlevelistheirmodernunderstandingofhumanrightsaswell
ascompany-alignedcommunitysupportthroughasignificantamountofdonations.Moreover,
IAG´sChairmanstatement“SustainabilityisnowhighlightedasacentralpartofIAG’sbusiness
model”couldimplythattherewasnofocusonsustainabilityissuesbefore2016.However,the
promisefromIAGBoardofDirectors“thebestisyettocome”seemscrediblewhenconsidering
thesophisticatedstructureofcorporategovernance.
58
6.3 AirFrance–KLMGroup
6.3.1 SocialinitiativesCorporateGovernance/PeopleManagement:
2016wasmarked by an active and regular ongoingworkplace dialogue to accompany the
strategicplansbothways, across theCompanyandwithin the frameworkof theEmployee
RepresentativeBodiesduringthevariousnegotiationperiods.Theproject iscalled“Trusted
Together”andestablishesguidingprinciplesforthenewHRambition:thepromotionofanin-
depthworkplace dialogue (both inside teams andwithin the framework of social relations
betweenthemanagementandtheunions),prioritizingthebusinesschallengesandcustomers.
HealthandSafety:
Evaluatingandanalyzingtherisksthendeployingtheappropriatepreventionmeasuresenables
the“TrustTogether”projecttobeaccompaniedbypro-activemeasuresinthisarea.
In 2016, atAir France, therewere28occupationalphysicians and60nurses toensure the
clinicalandpsychologicalscreeningoftheCompany’semployees,advisedonhealthylifestyles
and the prevention of vocational risks, and provided emergency medical care. Additional
supportmeasuresforemployeesfacingtemporaryorlong-termpersonaldifficultiesandthe
deployment of the appropriate training (“Managing by Quality of Life in the Workplace”,
“PreventingandManagingViolenceand Incivility”, “Awareness-raisingon thePreventionof
SuicidalBehavior”,etc.).ForKLM,thetotalnumberofworkplaceaccidentsleadingtotimeoff
work slightly increased toabove theCompany’s target. In2016, three seriousoccupational
accidentswererecorded.Moreover,withintheframeworkoftheimplementationoftheHigh-
PerformanceOrganization,theHumanResourcesdepartmentoptedtoreplacethenetworkof
59
divisional health and safety managers with a specialized and centralized Center of Health
Expertise.Thus,sinceOctober2016,anewgroupofhealthexpertshasbeenworkingonhealth-
relatedissues.
Workingenvironment:
The Air France – KLM Group reports that the number of Full Time Equivalent employees
decreased by 2.17% relative to the
previous financial year to an average of
82.175 employees. However, the
recruiting under permanent contract
increasedby45,1%whiletherecruitment
for fixed-term contracts decreased by
14,5%in2016.AlsobeneficialforAirFrance´semployeesisaprotocolthatnotablyestablished
thepaymentofanexceptional€300bonustoGroundStaffandCabinCrew,with€400fornon-
executivestaff,inrespectoftherealizationofthemeasuresinthe“Transform2015”planin
2016.Abudgeted1.4%ofthepayroll, identicalforbothexecutivesandnon-executivestaff,
wasearmarkedfor individualsalary increasespursuanttothenewprovisionsoftheground
staffcollectiveagreement.Theseindividualsalaryincreaseswereinrespectofperformance,
promotion, exceptional adjustments, exceptional bonuses and seniority (for non-executive
staff).AnotherpointtomentionisthattheKLM´sTransformationOfficewassetupin2015,to
contribute to constructing thenewKLM, in close cooperationwith all thedivisions, and to
establish an innovative organization which is constantly improving and learning. Part-time
workingisverywidespread,particularlyamongstwomen,althoughthisisalsoincreasinglythe
caseformen.
Humancapitaldevelopment/Diversity:
OneoftheAirFrance–KLMGroup´smainpriorityistopromotearesponsiblesocialpolicyand
encouragingpersonaldevelopmenttoensurethemotivationandhighprofessionalstandards
ofstaff.ThetrainingatAirFranceensuresahighandstablerateofaccess:94.5%ofGround
Staffreceivedtrainingin2016(45%ine-learningform)
60
ForthetrainingatKLMaLearning&Developmenttoolwaslaunchedin2016toraiseawareness
withinKLMoftheCompany’snewcorporatepurpose,“MovingYourWorld”andtherelated
KLM Compass. Around 1,400 KLM employees enrolled in the immersion sessions. Further,
youngprofessionals(<35yearsofage)areofferedasix-monthself-directedprogramfor60
participantsandfocusesonpersonaldevelopment.Theyoungprofessionalscollectivelydecide
thethemesonwhichtheywillworkandplanthedifferentsessions.Withregardtodiversity,
AirFrancehasreaffirmedprofessionalgenderandwageequalitybetweenmenandwomenas
amajorpriorityformorethanadecadealreadybutisstillambitioustomakeprogressinthis
area. Following that direction, human resources management signed an agreement with
FrenchMinistryofWomenRight´s(2015-17AgreementonProfessionalEqualitybetweenMen
andWomen).Ingeneral,thepercentageofwomenwas44,1%ofthetotalstafffromtheAir
France–KLMGroupwhichisequivalenttoa0,4%increaseofwomen.AtDecember31,2016,
theBoardofDirectorsnumberedfivewomenBoarddirectors,i.e.aproportionof35.7%.With
regards to diversity at KLM, the airline continues to offer an employment guarantee to
individualswhosedisability rate isassessedatbelow35%,meaningthat theyeitherremain
employed by KLM or receive support in securing employment outside the Company. For
employeeswithdisabilitiesmakingthemincapableofwork,andwhoarewithinsevenyearsof
thelegalretirementage,KLMoffersprotectionfromlawyers.Employeesaffectedbydisability
andreturningtoworkreceivepro-activesupportfromcasemanagerswithinKLM.
Ethics/Humanrights:
In the Corporate Social Responsibility Statement and Social Rights and Ethics Charter, the
AFKLMGroupaffirmsitscommitmenttofosteringaclimateoftrustandmutualrespectina
workingenvironmentwherenoformofdiscriminationorharassmentistoleratedandoppose
allformsofchildandforcedlabor.However,differencesinemploymentlegislationbetween
FranceandtheNetherlandsrequireAirFranceandKLM’sHRpolicestoremainseparate.Air
61
France-KLM’sCorporateSocialResponsibilitystrategyenshrinestherespectoffundamental
rightsasdefinedintheleadinginternationalprinciples:TheUniversalDeclarationofHuman
Rights,theInternationalLaborOrganization’s(ILO)DeclarationonFundamentalPrinciplesand
RightsatWork,andtheOrganization forEconomicCooperationandDevelopment’s (OECD)
guidingprinciples.AirFrance-KLMhasbeenasignatoryoftheUnitedNationsGlobalCompact
since2003and is committed to respectingandpromoting its tenprinciples in theareasof
humanrights,labor,theenvironmentandanti-corruption.
Nocorruption:
The Manual to prevent the risks of corruptionaffirms the Air France - KLM Group’s
commitmenttoexercisingitsactivitiesfairly,equitably,honestlyandwithintegrity,andinthe
strict respect of anti-corruption lawswherever its companies or subsidiaries exercise their
activities. In 2016, Air France established a “Reminder of the compliance regulations for
relationswithsuppliers/serviceproviders”memorandum,signedbytheChiefExecutiveOfficer.
ThisdocumentoutlinesthecomplianceprinciplesandrulesinforcewithinAirFrance(Internal
Regulation)and,morewidely,withintheAirFrance-KLMGroup(AirFranceandKLMManual
forthePreventionofCorruptPractices).
Consumers/Suppliers:
Oneof themainpriorityofAFKLMGroup is toembed sustainabledevelopmentacross the
entirevaluechaintooffercustomerssustainableand innovativeproductsandservices.The
airlinesoftheGrouphaveacommonfrequentflyerprogram“FlyingBlue”.Specialaboutthe
programisthat“FlyingBlue”memberscandonatetheir“miles”tothesestart-upstohelpthem
with theirdevelopmentprojects. TheCSRperception surveyof “FlyingBlue” for customers
enablesabetterunderstandingofcustomerexpectationsandtheidentificationofissuesthey
deemtobepriorities.Morethan1,900customersrepliedtotheCSRMonitorsurveyrealized
inMay2016,expressingtheirviewsontheissuesandactionstheyconsiderkey,andranking
thedevelopmentofrenewableenergiesinfirstplace.theKLMTakesCarewebsitepostsarticles
andvideos,andofferscustomerstheopportunitytosharetheirviewsonsustainabilitytopics.
Forseveralyears,theAirFrance-KLMhasaimedtoincorporateCorporateSocialResponsibility
principles into relations with suppliers by reinforcing control over ethical, social and
environmentalrisks.Also,inadditiontosharingtheGroup’sCSRcommitments,theAirFrance
62
-KLMbuyersareencouragedtosignaCodeofEthicsoutliningtheethicalrulestobefollowed
whendealingwithsuppliers.
Corporatecitizenship:
One of the AFKLM Group´s main propriety is to contribute to the economic and social
development of the territories where the Group operates. Air France works to help
disadvantaged children through its Corporate Foundation which is involved in 84 projects
across38countries.TheAirFranceHumanitarianAiddepartment issued428ticketsforthe
transportationofmedicalteamsandtherepatriationofsickchildrenthroughmorethan42
partnershipswithNGOsprovidingmedicalassistancetochildrenin2016.Freeexcessbaggage
wasalsodonatedtomorethan60NGOs, for thetransportationofmedicalandemergency
public health equipment. Besides that, the KLM Takes Care program partners UNICEF
Netherlands and five other organizations: Close the Gap, Doctor2Doctor, AviationWithout
Borders,WingsofSupportandSHO.In2016,KLMalsodonatedticketsandexcessbaggageto
charitableorganizationsand, following theApril16earthquake,carried tonsof reliefgoods
fromtheNetherlandstoEcuadorfreeofcharge.
6.3.2 Commitmentlevel
Air France–KLMGrouphasestablishedaproactive reportingprofilewith a long reporting
history. The Group understands to report relevant details in numeric form and respects
multiple forms of coding to increase credibility ofwhat has been said and done. Hence, it
becomeseasyforthereadertoformhisorherownopinion.
CommitmentlevelofCS Beginning Elementary Satisfying Sophisticated,Outstanding
Corporategovernance AFKLMHealth&Safety AFKLM Workingenvironment AFKLMHumanCapital/Diversity AFKLM Ethics/HumanRights AFKLMNocorruption AFKLM Consumers/Suppliers AFKLMCorporatecitizenship ARKLM
63
Table10–TheCSstrategyofAFKLMshowsasophisticatedlevelofcommitment
Conclusion:
AirFrance–KLMGrouphasreachedasophisticatedlevelofcommitmenttowardssocialissues
ofsustainability(table9).Thecorporationwasabletoestablishapermanentdialoguewithin
the firm bottom-up and top-bottom but also with their external stakeholders. All internal
responsibilities fulfillat leastasatisfying levelofcommitmentwhichreflectshowmuchthe
Groupcaresforitsemployees.OutstandingaretheeffortstoaligntheGroupsethicalvalues
andbeliefswithitsstakeholdersalongtheentirevaluechain.Also,itfitsthecultureoftheAir
France–KLMGroupthattheyfocusonHumanitarianAidandcrisishelpwhenitcomestoshow
corporatecitizenship.
6.4 Ryanair
6.4.1 SocialinitiativesCorporateGovernance/PeopleManagement:
TheDirectorsarecommittedtomaintainingthehigheststandardsofcorporategovernance.
ThisstatementdescribeshowRyanairhasappliedthemainandsupportingprinciplesofthe
2014U.K.CorporateGovernanceCode (the“2014Code”), theversionof theCode in force
duringtheyearendedMarch31,2017.WithintheBoardofDirectors,thereisacleardivision
ofresponsibilitiesbetweentheChairmanandtheCEO.TheBoardmeetsatleastonaquarterly
basisandintheyeartoMarch31,2017theBoardconvenedmeetingsontenoccasions.The
MSCIResearch“GovernanceMetricsReport” June2016noted thatRyanair “falls into
the highest scoring range for all the companies we assess relative to global peers
indicatingthatthecompany’scorporategovernancepracticesaregenerallywellaligned
withshareholderinterests”.
HealthandSafety:
TheBoardofDirectorsestablishedtheAirSafetyCommitteein1997toreviewanddiscussair
safetyand related issues.TheSafetyCommittee reports to the fullBoardofDirectorseach
quarter.Ryanairisproudofitsindustryleading32-yearsafetyrecord.SafetyisRyanair’sNo.1
priorityandweinvestheavilyinsafety-relatedequipment,trainingandinternal(confidential)
reportingsystems.FatigueManagement(“FM”)isasharedresponsibilitybetweenRyanairand
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itsCrews.Ryanair implementsascientifically-basedand independentlyverified,datadriven,
flexible approach to fatiguemanagement that forms an integral part of the Ryanair Safety
ManagementSystem.
Workingenvironment:
Ryanair negotiateswith all its people, including pilots and cabin crew at all bases, through
EmployeeRepresentationCommittees(ERCs)regardingpay,workpracticesandconditionsof
employment,includingconductingformalnegotiationswiththeseinternalcollectivebargaining
units. Ryanair’s seniormanagementmeets regularlywith thedifferent ERCs to consult and
discussallaspectsofthebusiness.
Humancapitaldevelopment/Diversity:
Last year over 900 of Ryanair´s peoplewere promoted and Ryanair created approximately
1,500newjobs.Ryanairhasalsocreatedover90,000indirect jobsbasedonAirportCouncil
International figures. Our people remain one of theirmost important assets, and theywill
continue to invest heavily in recruitment and training. Training, career development and
promotion opportunities are available and encouraged for all of Ryanair’s people. Ryanair
remains a committed equal opportunities employer regardless of nationality, race, gender,
maritalstatus,disability,age,sexualorientation,religiousorpoliticalbeliefs.Ryanairselects
andpromotes itspeoplebasedonmeritandcapability,providing themosteffectiveuseof
resources.
Ethicalbehavior/Humanrights:
Ryanair’sCodeofBusinessConductandEthics (“Code”) setsout standardsof integrity and
ethicalvaluesthatconstituteRyanair’swayofdoingbusinessandisapplicabletoallRyanair
employees.Ryanair iscommittedtoconductingbusiness inanethical fashionthatcomplies
withalllawsandregulationsinallthecountriesinwhichRyanairoperates.Ryanairdoesnot
tolerateanyinfringementofhumanrights,includingtheuseofforced,compulsoryortrafficked
labor,oranyoneheld inslaveryorservitude(whetheradultsorchildren) inanypartofour
businessorsupplychain.Thereareestablishedchannelsforreportingcodeviolationsorother
concernsinaconfidentialmanner.ThePersonnelDepartmentinvestigatesanyinstancesand
theHeadofInternalAuditreportsfindingsdirectlytotheAuditCommittee.
65
Nocorruption:
The Irish rules generally prohibit anti-competitive arrangements among businesses and
prohibittheabuseofadominantposition,alsoapplyingtotheairlinesector.Ryanairhasbeen
subjecttoanabuse-of-dominanceinvestigationbytheCompetitionandConsumerProtection
CommissioninrelationtoservicebetweenDublinandCork.TheCompetitionandConsumer
ProtectionCommission(thenknownastheCompetitionAuthority)closeditsinvestigationin
July2009withafindinginfavorofRyanair.
Consumers/Suppliers:
ThelaunchoftheAlwaysGettingBetter(“AGB”)CustomerCharterin2014,andincreasedfocus
ondigitaltechnologythroughthereleaseofthenewwebsiteandapp,hasimprovedRyanair’s
interactionwithcustomers,providingthemwiththeservicesandinformationrequiredtomake
their travel more productive and comfortable. Ryanair is fundamentally opposed to the
introductionofanyaviationtaxes,includinganyenvironmentaltaxes,fueltaxesoremissions
levies.Ryanairhas,andcontinuestooffer,thelowestfaresinEurope,tomakepassengerair
travelaffordableandaccessibletoEuropeanconsumers.Further,Ryanairendeavorstoonly
use suppliers thatadhere to theprinciplesofRyanair’sEthicsCodeandprovidea safeand
healthyworkingenvironmentfortheiremployees.
Corporatecitizenship(Communitydevelopment):
In2017, theCompanyestablished theRyanair Foundation toworkwith selectedcharitable
partners and educational projects across Europe. The foundation recently announced its
sponsorship(€1.5mover5-years)forthenewRyanairProfessorofEntrepreneurshipposition
at Trinity College Dublin’s Business School. Between 2008 and 2014, the Ryanair charity
calendarcontributed€100,000perannum(€700,000inthe7yearsthatitwasproduced)to
designatedcharitiesacrossEurope.
6.4.2 Commitmentlevel
ThereportingprofileofRyanairisclearlydefensive.Theairlinedoesnothaveasustainability
report or includes sustainability information in their annual report. One cannot find any
reportednumbersthatgivecredibilitytowhattheystate.
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CommitmentlevelofCS Beginning Elementary Satisfying Sophisticated,Outstanding
Corporategovernance RY Health&Safety RYWorkingenvironment RY HumanCapital/Diversity RY Ethics/HumanRights RY Nocorruption RY Consumers/Suppliers RY Corporatecitizenship RY Table11–TheCSstrategyofRyanairshowsanelementarylevelofcommitment
Conclusion:
Ryanairmissedtoreachasatisfyinglevelofcommitmenttowardssocialissuesofsustainability
becausetheyaregrowth-andconsumer-oriented,butdonotshowextraeffortsinternallywith
regards to theirgovernanceoremployees. Itbecomesclear that corporateculture isnota
majortheme.Instead,monetaryincentivesaresettomotivateemployees.AlthoughRyanair
continues to create jobs and invests in training Ryanair does not fulfill a satisfying level of
commitmenttowardshumancapitaldevelopmentbecausetheiraimistocreatemoreefficient
(human) resources. Further, therearenotpolicies foremancipationofminorities reported.
Regardingexternalresponsibilities,Ryanair´sethicalcodeseemsatadevelopedstage,butthe
airlinedoesnotreporthowitdealswiththeanti-competitivelegislation.Lastly,theircorporate
citizeneffortsare limited tomonetary supportsandemployeesarenot integrated into the
process.
6.5 QuestioningFindingsduetoBadPress´
Thefollowingparagraphsareextractsfromarticles inTheGuardianconcerningtherelevant
airlines. The Guardian is a British daily newspaper, founded in 1821 and has been named
Newspaper of the Year four times at the annual British Press Awards. I shortly reproduce
negative aspects about the airlines´ social responsibilities with the purpose of reflecting
criticallyonthepreciousself-presentationoftheEuropeanairlinesintheirreports.
Lufthansa:Strikesandrecruitingfreeze
67
Germany’s flagship carrier Lufthansa said itwould cancel nearly 900 flights onWednesday
becauseofastrikebypilots,causingtraveldisruptionfortensofthousandsofpassengersin
thelatestescalationofalong-runningpaydispute.Itisthe14thstrikesinceApril2014started
byVerdiinarowoverpayandworkingconditions.Theunionsayspilotshaveenduredawage
freezeoverthattimeandsuffereda“significant lossofpurchasingpower”dueto inflation,
whileLufthansahasmadebillionsinprofits.Sincethebeginningof2014,theLufthansacore
companyhad imposed a recruitment freezeof their owneducatedpilots because the cost
structureoftheGrouptariffagreementistooexpensiveforthecompany.Nowmanyyoung
pilotssueLufthansafortheirrighttowork.(TheGuardian,2016b)
GermanWings(LufthansaGroup):Suicidalpilotretainslicense
GermanwingspilotLubitzlockedtheflightcaptainoutofthecockpitandputtheplaneintoa
controlleddescentovertheFrenchAlps,killingall150peopleonboard.Relativesofthepeople
killed when the German pilot Andreas Lubitz crashed a passenger jet into a French
mountainsidesayLufthansashouldhavedonemoretostophimflyingafterhewasdiagnosed
withmentalhealthproblems.JürgenFischenich,whosesonSven,33,diedinthecrash,saidhe
andotherfamilieswerestillwaitingforanapologyfromLufthansaforfailingtokeepapilot
withahistoryofmentalhealthproblemsoutofthecockpit.Headds“Withoutthenegligence
onLufthansa’spart,mysonwouldn’thavediedlikethis.Itwasn’tjustanaccident.Thiswasa
crashwhereLufthansa’ssafetymechanismsfailed.”(TheGuardian,2016a)
AirFrance–KLMGroup:French-Dutchcultureclashrevealed
FrenchstaffsayKLMcolleaguesthinkonlyofmoney,whileDutchseeAirFranceworkersas
aloof, report says. A clash of national cultures and an inability to understand each other’s
languages threatens tomake themerged Air France-KLM group of airlines unmanageable,
accordingtoaleakedinternalcompanyreport.Amongthepettygrievances,thereisirritation
thataKLMemployeeworking inParis ischarged€10for lunch inthecanteen,whileanAir
Francecolleaguepaysonly€4.Suchisthestateofrelations,accordingtothe100-pagereport,
compiledbyunionsactingforstaffwithinthegroup,thattherearefearsforthecompany’s
future.(TheGuardian,2017h)
AirFrance:Violentfightagainstmanagement
68
AirFranceworkersripshirtsfromexecutivesafterairlinecuts2,900jobs.StafffromAirFrance
wasstrikingduetoacontroversial“restructuringplan”involving2,900redundanciesbetween
2015and2017.Theproposedjoblossesinvolve1,700groundstaff,900cabincrewand300
pilots.SeveralhundredairlineemployeeshadgatheredtodemonstrateoutsideAirFrance’s
headofficeandmembersofseniormanagementweregreetedbyanangrycrowdshoutingand
waving flags and placards featuring the company chiefs portrayed as criminals in police
mugshots.Theairlinefiledacriminalcomplaintaboutthis“scandalous”outbreakofviolence.
(TheGuardian,2015)
BritishAirways:Povertywagestocabincrew
BritishAirwayscabincrewhaveannouncedfourmoredaysofstrikes.Sincethestartoftheyear
therehavebeen11daysofstrikeaction.Basicpayinthemixedfleet,whichallnewrecruitsto
BAjoin,startsataround£12,000,thoughtheairlinesayscrewearnaminimumof£21,000after
allowancesandbonuses.Unitesayscabincrewearn£16,000ayearonaverage.WillieWalsh,
chief executive of BA’s parent company, IAG, said: “The offer’s on the table. There are no
negotiations.Thestrikeshavehadnoeffect,thepassengersareflyingandflightsareoperating.
(TheGuardian,2017a)
BritishAirways:MajorITmeltdowncausesturmoil
Disruption from a major IT failure that affected more than 1,000 flights on Saturday has
continuedintoasecondday,leavingmorepassengersstranded.Airportstaffhadhandedout
themats,aswellasthinblankets,forpeoplewhowerestuckthereovernight.Theexperience
ofmanypassengerswhohavewrittentotheGuardian’sconsumerchampion’scolumntellus
claims are often protracted and frequently unsuccessful. Our consumer champs say that if
airlinecounterstaffmakeyouapromise,videoitonyourphone–itmaybeyouronlychance
ofenforcingaclaim.BA’sexplanations“Itwasnotan IT failure. Itwasa failureofelectrical
powertoourITsystems”havebeenmetwithskepticismandmorequestions.(TheGuardian,
2017e)
Ryanair:Onlyairlinethatputspassengersinwheelchairsonlast
Ryanairflighttakesoffwithoutpassenger,StudentNiamhHerbert,whorequiresawheelchair
whentravelling.Normallyairlinesputpassengersinwheelchairsatfirst,butthistimeNiamh
wastoldattheboardinggateshewouldhavetowait15minutestobehelpedontotheplane
69
inherwheelchair.Atalaterpointamemberofstaffapproachedherandaskedifshewouldbe
abletoclimbthestairstotheplane“foreasiness’sake”.Whatadisgrace–Herberttweets.
HerbertsaidsheinformedRyanairshewouldbetravellinginherwheelchairwhenshebooked
aninitialflight,butdecidedtochangeherflighttoFriday.Apparently,Ryanairdoesn’tpassthe
informationonandHerbertwasleftaloneatthegate.(TheGuardian,2017d)
Ryanair:MichaelO’Learyhopestoofferzerofares
Ryanair chief executiveMichael O’Leary plans tomakemoney from sharing revenueswith
airportswhereithadattractedpassengersinsteadfrompassenger´sflightfares.Hesaid:“The
challengeforusinthefutureistokeepdrivingairfaresdown.Ihavethisvisionthatinthenext
fiveto10yearsthattheairfaresonRyanairwillbefree,inwhichcasetheflightswillbefull,
andwewillbemakingourmoneyoutofsharingtheairportrevenues;ofallthepeoplewho
willberunningthroughairports,andgettingashareoftheshoppingandtheretailrevenuesat
airports.”(TheGuardian,2016c)
After considering these recent negative headlines about social responsibilities towards
employees,customersandcommunitiesoftherelevantairlinesIadjustthefollowingscores:
- Lufthansa:TheGermanairlineseemstohavecommunicationproblemsfrombottomto
top.Thetwoexamplesshowhowthegovernancedidnottakeresponsibilityfortheir
mentallyillpilotnorfortheirstrikingandsuingpilots.Therefore,Ilowerthescorein
Corporate Governance from initial three points to two points as well as the
Health/Safetyscorefrominitialfourtothreepoints.
- AirFrance–KLMGroup:Culturaldifficultiescouldnotbesolvedafterthemergerorthe
French andDutch airline so far. Grief lies behind the curtains of this union so that
employees become violent towards theirmanagers. Thus, I lowerAir France – KLM
Group´sscoreinWorkingEnvironmentfrominitialfourpointstothreepoints.
- British Airways (IAG): The examples from British Airways show that the working
conditionsarenotpromising.WagesareperceivedtobelowandITsystemsseemto
beinneedforrenewal.Hence,IlowerthescoreofWorkingEnvironmentfrominitial
threetotwopoints.
- Ryanair:Ryanair´s customer service lacksprofessionalism,apparentlyespeciallywith
disabledpassengers.Also,Ryanair´sCEOmakesclearthatheonlycaresaboutprofit
and not about communities and environment when he says to aim for zero fares,
70
fosteringmasstourismevenfurther.Thus,IlowertheirscoreinCustomers/Suppliers
frominitialthreetotwoaswellastheirCorporateCitizenshipfrominitialtwopointsto
onepoint.
Whencomparing theadjustmentof scores,onemustnote that threeairlineshavea lower
commitmentleveltowardsCSduetointernalissuesandonlyoneairlinesduetoexternalissues.
Atthispoint,Iwouldliketopointoutthattheworkingenvironmentattwoairlinesseemtobe
notaspromisingasreflectedintheirannualreports.
6.6 SynthesisofEmpiricalFindings
Aftertheevaluationofcommitmentlevelsbasedonthecontentanalysisoftheairline´sown
reportsandtheadjustedscoresduetotheairlines´scandalsrevealedinthepress,Icanpresent
nowafinalrankingoftheairlines´scoresinissuesconcerningthesocialdimensionofCS.The
diagraminfigureXshowsthateachairlineputsemphasizesondifferentaspectsofthesocial
dimensionofsustainability.OnecouldarguethatLufthansaGroupandAirFrance–KLMGroup
havesimilarsocialperformancescores,sameasRyanairandIAG.
Figure8-TotalscoreofeachairlinewithinthesocialdimensionofCS
Themaximumscore foranairline toachieve in thisassessment is32points.Noairlinehas
reached this score. The reason for this is as follows: Ryanair´s social initiatives aremainly
compliance- and profit-drive and therefore, their CS strategy is not mature but rather
elementary.IAGtakeseconomicandsometimesethicalresponsibilityforitsstakeholderswhich
42 2
4
23 4
32 4 2
323
2
33
4
3
41
4
1
3
3
3
2
4
3
3
1
4
BA- IAG LH RY AFKLM
Corporatecitizenship
Consumers/Suppliers
Nocorruption
Ethics/HumanRights
HumanCapital/Diversity
Workingenvironment
Health&Safety
Corporategovernance
20
26
17
28
71
isthereasonfortheairlinealmostfulfillingthecriteriaforasatisfyinglevelofCScommitment.
Then,Lufthansahasreachedaverysatisfyingcommitment level,becausetheyexpresshow
muchtheycareabouttheirstakeholdergroups.ItseemsthatAirFrance–KLMGrouphasthe
mostmatureCSstrategybecausetheyareabletotakeonethicalresponsibilitiestowardsall
stakeholdersandrecognizethatdrivingsustainabilitymeansdrivingprogress.Finally,intable
12itbecomesobviousthatnoairlinehasreachedanoutstandingcommitmentleveltowards
CS which means that none of the four corporations is commitment to philanthropic
responsibilities. This holistic interpretation of CSwould be necessary to bring business and
societyclosertogether.
InterpretationofCSbyMarrewijk
BusinessresponsibilitiesbyCarroll
CSmaturitylevelbyBaumgartner
RankingofthefourlargestairlinesinEuropeaccordingtothisresearch
Compliance-drivenCS
Legalresponsibilities
Beginning
Profit-drivenCS
Economicresponsibilities
Elementary
CaringCSEthicalresponsibilities
Satisfying
SynergisticCSEthicalresponsibilities
Sophisticated
HolisticCS
Philanthropicresponsibilities
Outstanding
Table12-RankingtheairlinesaccordingtotheirCSstrategy
7 DiscussionandLimitations
Table 13 provides an overview of the thesis’ main theoretical and empirical findings. By
emphasizingthesefindings,Igivegroundsforthefollowingdiscussiononimplications.
Chapter MainConclusions/Findings
Chapter1
1.1 As traveling, and especially aviation, harms the environment, to me,travelingandsustainabilityseemlikeacontroversy.However,…1.2 …stakeholder theory suggest that sustainability is an opportunity forcompetitiveadvantage forcompanies.Thus, Iaimto findout:WhyandhowhaveEuropeanairlinesintegratedsustainabilityintotheircorestrategy?
72
Chapter2
2.1 Understanding CS as nothing else than the concept to incorporatesustainabilitybytheorganizationcontainingthethreeinterdepend,interactingpillars:economic,ecologic,andsocial.2.2 The motivation for CS is based on Stakeholder theory: businesses areresponsiblefortheirfirmsinternalandexternalstakeholders-includingsociety.2.3AccordingtotheRBV,CScanbesourceofvaluecreationforbusinessandsociety when it´s integrated into all levels of management and plannedstrategically.
Chapter3
3.1ThesocialdimensionofCS implies the ideaof treatingpeoplewithinthecompany,withinthesupplychain,andinthecommunityofthecompanywithrespect and attention. Its effects are hard to quantify due to its intangiblenature.3.2 Levels of commitment towards social issues showhowmuch businessescontribute to society. As business and society are interdependent beingcommittedtoCSbecomesaninevitablecondition.3.3BestpracticeexamplesshowhowitpaysoffthatsomecorporationsmanagetointegratesocialaspectsofCSintotheircorestrategy.
Chapter5
5.1Theairlineindustryishighlycompetitive(e.g.duetotheentryoflowcostcarriers),constantlygrowing(e.g.masstourismdamagesworldheritagesites),andinvolvesmanyuncertainties(disruptionsbyterrorandnewregulations).5.2 Regarding social aspects, the airline industry bears difficulties becauseoperationalpressurehasincreased,especiallyforemployees.5.3Moreandmorecorporationsdisclosetheirdataonsustainability.ReportingframeworksasGRIaimtostandardizereportsbutsofardifferentframeworksandlocalregulationsmakeithardtoassessandcomparethereports.
Chapter6
6.1Lufthansareachesaverysatisfyingcommitmentlevelbecausetheycrediblyexpresshowmuchtheycareabouttheirstakeholdergroups.6.2 Air France – KLMGroup has themostmature CS strategy because theypreciselyreportonhowtheyassumeethicalresponsibilitiesforallstakeholdersandrecognizethatdrivingsustainabilitymeansdrivingprogress.6.3IAGreachesasatisfyinglevelofCStakingmostlyeconomicandsometimesethicalresponsibilityforitsstakeholders.6.4 Ryanair´s CS strategy is notmature but rather elementary because theirsocialinitiativesaremainlycompliance-andprofit-driven.6.5Thecredibilityoftheairlines´sustainabilityreportsseemdebatablewhenconsideringnegativeheadlinesabouttheairlinesinthepress.6.6NoairlinehasreachedanoutstandingcommitmentleveltowardsCS.Thus,noneofthefourcorporationsiscommittedtobringbusinessandsocietycloserbyinterpretingCSholistically
Table13-Mainfindingsofeachchapterasbasisfordiscussion
73
Keeping inmindthattheknowledgegainedfromtheempiricaldata isnot ’puretruths’but
subjectivejudgmentsIrecallthemeaningsoftheempiricalfindings:AlthoughCShasemerged
asamegatrendandevenCSreportinghasevolvedasmainstream,itisstillnotclearinwhich
development stageCS is asmanagershave limitedunderstandingof how to implementCS
practically.Thus,Iwaswonderingwhethertruly“good”corporationsreallyexist.Astheairline
industry fulfillsmostcharacteristics thatpositively influenceCSstrategiesandEurope is the
leadingregionwhenitcomestoCS,thecasestudyofthelargestEuropeanairlineshelpedto
answerthisquestion.Thepreviouschapterscanbethoughtofasanassessmentorprogress
reportoncorporate´scommitmenttowardsCS.
There are some interesting findings to highlight when looking at the empirical data:
Unexpectedly,IfoundimmensedifferenceswithintheairlinesCSstrategiesandtheirreporting
styles. In thepast,multiplestandardizing frameworks forsustainability reportinghavebeen
establishedbutremainvoluntarysothatitisdifficulttocomparethereportsandevaluatetheir
quality. Very interesting to see are the contrasting strategies of Ryanair and AFKLM:
Surprisingly,ahugecorporationasRyanairwithdirecteffectsontheenvironmentseemsnot
tohaveanypressurefromthegovernmentnortheconsumersorotherstakeholderstoshow
efforts implementing CS initiatives beyond compliance or profit-orientation. In contrast to
Ryanair,AirFrance–KLMGroupissophisticallycommittedtoimproveandreportontheirCS
strategywhichthey integrate intotheircorebusinessstrategyonall levelsofthecompany.
Althoughthese two leadingairlineshaveverydifferentunderstandingsofCS, their strategy
seems straight forward. Similar straight forward, but on a lower commitment level, seems
Lufthansa´sCSstrategy.Lufthansacommunicatescrediblyhowdigitalizationandbundlingof
their competencies as in education and humanitarian aid will improve their responsibility
towardsinternalandexternalstakeholder.NotstraightforwardatallseemstheCSstrategyof
IAGeventhoughtheyoutlinetofocusonsustainabilityfromnowon.Butsofar,theirefforts
donotcreatevalueforeitheremployeesorcustomerswhichcanbeemphasizedthroughtheir
recentbadpress.Thus, I interpreted IAG´sCSstrategyasasymptomofbeing ‘stuck-in-the-
middle’withafocusonenhancingoperationalefficiencyandwithparticularattentiontonot
makinganymistakes.Afteroutliningthemeaningofthecommitmentlevelsofeachairlinethe
followingquestionremains:
74
IscorporatesustainabilityacompetitivestrategyintheEuropeanairline-industry,andwhatare
theargumentsforfurtherintegratingcorporatesustainabilityintothestrategiesofairlines?
Toanswerthisresearchquestion,Ineedtorecallthetheoreticalframeworkofthisthesisin
the contextof theairline industry´s characteristics. It only seems logical to anchorCSonto
stakeholdertheory.Creatingvalueforeachoftheinternalandexternalstakeholdergroupsis
a more sustainable and more social business process than generating maximal profit for
shareholders only. This organizational capability is directly linked to the desired result of
generatinginnovation-orientationwhichfinallyincreasesprofitandperformancelevels.From
astakeholderperspective,thecompetitiveadvantagesgeneratedbycreatingvalueforeach
stakeholdergroupvarieswiththestabilityof thebusinesssurroundings.Sincetheair travel
industryisespeciallydynamicandunpredictable,sustainableresourcesandcompetencesare
key.Toillustratetheindustry´sdynamicsIutilizeIATA´soutlook‘FutureoftheAirlineIndustry
2035’ which clearly demonstrates the dynamics of the airline industry by proposing four
contrastingscenariosforthefuture(Appendix1,i).Thesescenariosemphasizetheairline´sloss
of control due to the strong bargaining power of stakeholder groups. Hart includes the
environment in the traditional resource-based view (1995). Consequently, a developed CS
strategy requires to implement initiatives in each of the three dimensions, economic,
environmental and social: The economic dimension ensures the survival of the firm, the
environmentaldimensionhelpstoimproveefficientuseofresourcesintheshort-andmedium-
termandfinallythesocialdimensioncreatesvalueforstakeholdersforalong-termcompetitive
advantage. But there are more arguments for integrating CS into the core strategy of
corporations from the resource-based view. Following this understanding of resources and
organizationalcapability,itisthebeliefthatacompanygainscompetitiveadvantageasitbuilds
a brand that is different from its competitors. A strong brand can signal customers or
stakeholdersthefirm´svalues,normsandbeliefs.Ifthebrandstrategyisperceivedascredible
and authentic the firm can be rewardedwith a good reputation. And corporations with a
favorablereputationforsustainabilityaremoreattractivebusinesspartnersenablingthefirm
to enter new markets and attracting and retaining top talent. Furthermore, a credible
corporatereputationislikelytoinfluencecustomers’loyaltybehaviorsthroughdifferentiation.
Thus,itisupfordiscussionifCShasthepotentialofreconcilingthetwogenericstrategiesby
75
Porter,DifferentiationandCost-Leadership,withoutbeingstick-in-the-middle. (Grant,2016,
p.223).
SimilarfindingsintheliteratureaboutCSasacompetitivestrategyaresuggestedbyConrady,
Parmar and Porter & Kramer. Conrady states that a “strategic stakeholder model of
engagementwiththebusinessenvironmentmeansthatthepotentialforavoidingdisastersand
increasingsuccessandinnovation”(Conrady,2011,p.269).AsCSstrategiesbecomemoreand
more important todistinguishbrands, it is a real advantage to include sustainability to the
brand-andcommunicationstrategy.Themainchallengeforthemanagementistoconvince
the stakeholders of the authenticity of sustainable engagement. For that purpose and to
increase transparency,global sustainabilitycertificatesofperformanceneedtobeprovided
andcommunicated.Parmarpointsoutthat“Globalwarming,globalfinancialcrises,andglobal
terrorismthreatentodestabilizeourworld”(Parmaretal.,2010,p.267).Itismoreimperative
thanevertostudycarefullyandunderstandthepowerofmarketsandcapitalism.Hethinks
aboutthe“constructionofanewnarrativeabouthowcapitalismcanbeaforceforgoodinthe
world” (ibid, p.267).By this ‘newcapitalism’Parmar implies: If stakeholder theory is in the
centerofthinkingforallbusinessdisciplines,wecanaddresstheproblemsofvaluecreation
andavoidspoilingshareholdersattheexpenseofotherstakeholders,whichultimatelydestroys
thevalueofbothgroups.Additionally,PorterandKramerarguethat“WhileresponsiveCSR
depends on being a good corporate citizen and addressing every social harm the business
creates, strategic CSR is far more selective.” (Porter & Kramer, 2006, p.14) The
interdependencebetweenbusinessandsocietytakestwoforms:“inside-outlinkages”where
companyoperations impactsocietyand“outside-in linkages”whereexternalsocietal forces
impactcompanies.(Porter&Kramer,2006,p.8)Becausecompaniescannotaddresshundreds
ofsocialissues,theymustselectonlyafewopportunitiestomakearealdifferencetosociety
andgainacompetitiveadvantage,theybelieve.
Toroundupthediscussion,Iproposethepracticalimplicationsforthesustainabilitymanagers
of Ryanair and Air France – KLM Group according to the theoretical framework and its
discussioninthecontextoftheairlineindustry:
• Concretely,IwouldnotrecommendRyanair´sCEOMichaelO´Learytoturnhisclearly
profit-orientatedsustainabilitystrategyintoacaringsustainabilitystrategybecauseit
76
wouldrequiretakingethicalresponsibilitiestowardsallstakeholders.Andasdiscussed,
this sustainability strategy should come from inside requiring implementationon all
management levelstobeauthentic.ByasuddenchangeofstrategyRyanair´sbrand
couldrundangertobeaccusedofgreenwashingandmightfacelossofreputation.In
thefuture,itremainscriticalthoughhowlongRyanair´semployeescanwithstandthe
enormousoperationalpressuresasconstantstrivingmakesthemmiserable.Further,it
remainsquestionableiftheorganizationissufficientinnovation-orientatedtocopewith
rapiddynamicsintheindustry.
• Contrarily,IwouldrecommendtheAirFrance–KLMGrouptoturntheirsophisticated
levelofcommitmenttowardsCSintoanoutstandingone,toliterallystandout.Focusing
onthesocialdimensionofCS,thefollowingskillsarerequiredwhenAirFrance–KLM
Groupwantstoachieveanoutstandingcommitmentlevel:Culturalcompetencemeans
treatingallpeoplerespectfullyappropriatetotheircultureandbehaviorsofdominant
culturesareanalyzedinrelationtoothercultures.Thus,AFKLMcouldovercometheir
internal issues by reflecting on their values and working attitudes from its double
culturalbackgroundtoensureclarityaboutacommongoal.Further,asthefutureof
thetravel industrycan'tbepredicted,andsystemscan'tbecontrolled,AFKLMmust
ensure todesignand redesignhowtheyenvisionwhichchanges the futurepossibly
holds.Only then, is itpossible for themto learnaccordingly. Finally,AFKLM´smust
consider that life-enhancing resources and services cannot be assigned amonetary
value.That´swhyafocusonvoluntary,non-monetaryaidisessentialtobringbusiness
andsocietyfurthertogether.Sustainabilitymanagersmustrealize:Astheirfirmshapes
thesociety,thesocietyshapesthefirm.
Atlast,somelimitationintermsofthechosenmethodologicalqualitativeapproacharegiven.
Asthefindingsarebasedondatainterpretation,theyare,despitetestingthefindingthrough
scandalsinthepress,stillsubjectivelyinfluenced.Also,anobjectiveassessmentofcommitment
levelsbyanotherresearcherisnotgivenbecauseIconductedthestudyindividually.Remaining
truetotheinterpretivistapproach,thedatautilizedmaybeinterpreteddifferently,especially
ifguidedbyalternativeassumptionsandtheories.Furthermore,thecasestudyimpliesstudying
alotofcontentintheairlinesreportswhichcannotbeconsideredtotally.Takingintoaccount
moresourcesofinformationabouttheairline´ssocialinitiativesoffersafoundationforfurther
77
investigations.Additionally,somelimitationsintermsofgeneralizabilityhavebeenmentioned
already.Thus,forfurtherresearchIrecommendextendingthestudyintomultipledirections:
First,moreairlinesshouldbeassessed,forexampleintheAsianmarketorAmericanmarket
because the significance of sustainability´s varies between cultures. Other industry´smight
showasignificantlymoreorlessdevelopedstageofimplementingandreportingCS.Secondly,
notonlythesocialdimensionofCSshouldbeassessedisolatedbutinrelationtotheeconomic
andenvironmentaldimension.AssessingallthreedimensionsofCSwouldgiveamuchclearer
picture of how developed CS strategies are today. Third, future research could consider a
longitudinalstudyformultipleyearstotesthowairlines´overallperformancedependsontheir
(improvementof)sustainabilitystrategy.Thisextensionofresearchwouldhelptorevealmore
argumentsforfurtherintegratingcorporatesustainabilityintothestrategiesofcorporations.
8 ConclusionandOutlook
Asthefutureoftravelingdependsonresolvingitsnegativeeffectssuchasclimatechangethe
aviationindustryisinneedofdisruptiveinnovation.Whenfurtheranalyzingthecomplexityof
theairlineindustry,IagreewithIATAthatAirlinesstruggletodifferentiatethemselves.Inspired
bythisoverallsituationthisthesisanswerstheresearchquestion:Iscorporatesustainabilitya
competitivestrategyintheEuropeanairline-industry,andwhataretheargumentsforfurther
integratingcorporatesustainabilityintothestrategiesofairlines?
The research isdesigned toanswer thisquestion theoreticallyandempirically,by inductive
reasoning and deductive reasoning. Theoretically, I outline how treating stakeholders with
respect and engage them proactively bears the opportunity for a long-term competitive
advantage.FromtheRBV,IarguethatstrategicCScanbeseenasaninvestmentinthefirm’s
competenciesandinagoodreputation.Theintegrationofsustainabilityintothecorestrategy
ofcompaniescancreatevalueforboth,businessandsociety.Empirically,thisdescriptivethesis
attemptstospecifyhowairlineshaveimplementedsocialinitiativesin2016byanalyzingthe
contentoftheirannualsustainabilityreportsinaqualitativemanner.Bycategorizingairlines
initiativesintocommitmentlevelstowardsCS,IintendtodetectthedevelopmentstageofCS
inthishighlyvisibleandpoliticallysensitiveindustry.
78
In general, I notice that the boundaries between ‘social’, ‘environmental’ and ‘economic’
aspects are oftenoverlapping.My findings show that especially the social dimensionof CS
presentsamajorobstacleformanagersinpracticewhenfacingthechallengeofimplementing
few targeted social initiatives that fit the corporate´s culture. Overall, there has been less
debateonthesocialthanontheenvironmentalmanagement.Evaluatingtheairline´sannual
andsustainabilityreports,IfindoutthatallfourairlineshaveadoptedCStoacertainextent
butnoairlineiscommittedtoCSonanoutstandinglevel.Thismeansthat30yearsafterthe
implementationoftheinternationalGRIthereisstillmuchroomtoimproveCSstrategies.With
regardstothecommunicationofCS,itiskeytoputtransparencyandcredibilityatthecenter
oftheCSstrategy.Further,Irecognizedalackofconsistencyinsustainabilityreportingfrom
these large international companies, which makes it almost impossible to compare one
company’s sustainability strategy with another. That is why my evaluation of the airline´s
commitmentlevelstowardsCSisverysubjectively.
Myfirstconclusionherebyisthatitisnecessarytostrengthenglobalframeworksfordeveloping
sustainability reportingandmake it a toppriority task for corporations. Secondly, I suggest
shiftingthefocusfrom‘greentraveling’(environmentalinitiatives)to‘fairtraveling’(socialand
environmental initiatives) as a broad holistically view on CS bears long-term competitive
advantageinmultipledirections.Overall,IconcludethatCSisnotonlyanecessarystrategic
assetfortheairlineswhen integratedtobuildcapabilities inallbusinessareastocopewith
fiercecompetitionbutmoreover,CSwillbecomeanecessaryabilitytosustaintravelingitself
in the future. These are unambiguous arguments to further integrating CS into the core
strategies of airlines. In the future, not only governments but also customers should force
airlinestotakealeadingroleintermsofcorporatesustainability.Futureresearchcouldextend
thescopeofcasesandsourcestobeanalyzedaswellasdetectthelimitsofthebenefitsfrom
CS.IbelievethisthesiscanenhancethecurrentunderstandingofCSaswellasguidemanagers
toexploitthefullpotentialofCS.
79
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10 Appendix
Appendix1–Tablesandfigures
a) Carroll´s‘CSRPyramid’showsthateachtypeofresponsibilityplaysavitalroleintheoverall
strategyforCS(Carroll,2016)
b) Residual (nonstrategic) and integrated (strategic) CS (CSR) according to Parmar; the
relativelynew‘integratedview’seesCSaspartofcoremanagementprocessesandincluded
inthebusinessdecision-makingframework(Parmaretal.,2010)
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c) Throughthedevelopmentofdatacategories,qualitativedatacanprovidewell-grounded
conclusionseventhoughdataisinterpretedsubjectively(Corbin&Strauss,2008)
d) The survey brings forward that the main issue of working conditions is the increasing
operationalpressure,exertedtofosterproductivity(EuropeanCommission,2015b)
Internalsocialresponsibilities
Employeesstatementonsocialdevelopment
TradeUnionstatementonsocialdevelopment
Wages Increasedinpacewithorabovethedevelopmentofthenationalaveragepayincrease
Increaselacksbehindwagedevelopmentsincomparableprofessions
Contracts Moreflexibilityincontracts;TheestablishmentofmultiplebasesacrossEuroperaisesthequestionwhichlaborlawsapplyandlimitsthecollectivebargainingpower.
Workingconditions Improved DeterioratedHealth&Safety Positive NegativeOperationalpressure
Theincreaseofoperationalpressureforflightandcabincrewseemstoresultoutofatighterschedulingofflights,anincreaseofresponsibilitiesofthecrew,andofanincreaseofdutiesbetweenshiftsanddutyhours
Working/resttimes Positive NegativeTrainings ThenewMulti-CrewPilotLicenseallowstoperformco-pilottasksin
multicrewsituationswithsubstantiallylesstraininghours;employersoftendemandthatpilotsfinance(partsof)theirowntraining
• Categories:Categoriesaresometimesreferredtoasthemes.Theyrepresentrelevantphenomenaandenabletheanalysttoreduceandcombinedata.àInthisthesis,Ilimitmydatacollectiontothecategory“socialaspects”ofCS(table1)
• Coding:Extractingconceptsfromrawdataanddevelopingthemintermsoftheir properties and dimensions. à In this thesis, coding criteria areidentifiedbyBaumgartner´sandMarrewijk´s(table3and4)
• Concepts: Words that stand for ideas contained in data. Concepts areinterpretations, the products of analysis.à In this thesis, I differentiateairline´sreporteddatabyassigningcommitmentlevelstowardsCS(table2and8-11)
• Dimensions:Variationswithincharacteristicsofconceptsthatgivespecificityand range to concepts. à In this thesis, I specify the concepts (orcommitments levels) by assigning scores and range reported data byassigningreportingstylesforeachairline
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e) BaumgartnerandEbner´sprofilingofsustainabilitystrategiesrevealingmaturitylevelsfrom
ppartosophisticatedforeachaspectofCS(p.86)
f) Creatingvalueforstakeholders:definitionandprioritizationoftheprimaryandsecondary
stakeholders;FigurefromFreemanin‘StakeholderTheory:StateoftheArt’(Parmaretal.,
2010,p.24)
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g) TheconceptualmodelofinnovationorientationbyVaradarajan(2017)showsdriversand
outcomesofSustainableInnovationsOrientation(SIO)
h) The10principlesoftheUnitedNationsGlobalCompact;Sevenoutoftenprinciplesrelate
tothesocialdimensionofCS
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i) Fourscenariosfortheairlinesindustryin2035(InternationalAirTransportAssociation
(IATA),2017)
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j) ListofInstitutionsenforcingsustinabletravelingthatarerelevantinthisthesis;information
fromeachcorporate´swebsites
Name Institution About/Purpose
EC EuropeanCommission
Formulatesand implementscost-effectivepolicies for theEUtomeetitsclimatetargetsfor2020,2030andbeyond
EUET EU EmissionsTradingSystem
ThecornerstoneoftheEuropeanUnion’sdrivetoreduceitsemissionsofman-madegreenhousegaseswhicharelargelyresponsible for warming the planet and causing climatechange.TheEUETSalsocoversemissionsfromaviation.
UNFCCC United NationsFrameworkConvention onClimateChange
Overall framework for intergovernmentalefforts to tacklethe challenge posed by climate change. The Conventionenjoysnearuniversalmembership.
UNGC United NationsGlobalCompact
The world’s largest voluntary corporate sustainabilityinitiative, Action Platform on Reporting on the SDGs(sustainabilitydevelopmentgoals)
COP Conference ofParties
TheUNClimate Change Conferences serve as the formalmeetingoftheUNFCCCParties(COP)toassessprogressindealingwithclimatechange
ICAO InternationalCivil AviationOrganization
ICAOworkswiththeConvention’s191MemberStatesandindustry groups to reach consensus on international civilaviation Standards and Recommended Practices (SARPs)and policies in support of a safe, efficient, secure,economicallysustainableandenvironmentally responsiblecivilaviationsector.
IATA InternationalAir TransportAssociation
Tradeassociationoftheworld’sairlines,consistingof268airlines,representing117countries.TheIATAglobalcarbonoffsetprogramofferstheadvantagesofastandardcarboncalculatorandsettlementthroughIATA’sfinancialsystems
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Appendix2–Evaluationframeworks
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Appendix3–Airline´sCSassessmentbyCSRHub
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Appendix3–TranscribedPilotInterviews
QUESTIONNAIRE1Respondents:Thethreestudentsaremaleandbetween20to24yearsold.Sincetheyallhavevolunteeredin a children’shome inAfricawhere resourceswere limitedand thus, a certain amountof responsibilitytowardspeopleandplanetisassumed.TwostudentsareGerman,oneisDutch.Sincetheyanswervoluntarily,onlytheoneortwopersonsthatshoutsoutananswerisreflected.
1. Howmuchdoyouliketraveling?-Sayingitonascalefrom1to10,Iliketraveling11.Thehighestforsure!
2. Howmanytimesdidyougoonweekendtripsandvacationlastyear?-Ohno,inoneyear–that´salot.IfIhadtocountit-maybe10times,maybeabitmore.
3. Doyoumostlygobycar,bus,trainorplane?-Whynotbike?Haha.Igobycarorbus.-Iusuallydonotgobythetraineitherbecauseitistooexpensive.
4. Pleasedescribe:doyouplantoflytofardistantplacesthisyearornextyear?(fardistancemeans1500kmandmore,likefromBerlintoNewYork)-Iwillprobablydoit.Ihaveplanneditalreadyforsure.Idon´thaveconcreteplan,butIamprettysureIwilldoit.-DoesRussiacountasafardistantplace?
5. Doyouhaveafavoriteairlineoraleastfavoriteairline,whyisthat?-KLM.IlikeStaralliancealot.ButIdon’tknowwhy.TheyalwayshavegoodfoodatAustrianAirlines.-IlikeAirFrance.Idon´tlikeBritishAirways.AndEmiratesisagoodone.Also,VirginAirlinesseemscool.AndIlikeLufthansatoo.
6. Whydoyouthinkairlinesare„good“companiesorwhy„bad“companies?-Dependsontheairlines.Ryanairseemsbad,therestIhaveaneutralopinionabout.
7. Haveyouheardofanyinitiativesfromairlinessofarthatshowscorporatesustainability,whichones?-Nonotreally.Whatdoyoumean?
8. Haveyouseenorusedcarboncalculatorsbefore?-Awhat?Whatisit?Isawone,onawebsiteonce.Butit´salongtimeago,ayearorso.
9. Areyouawareofcarbonoffsetting?-Yeahyeahsure,isn´tthattheemissiontradingschemeintheEuropeanUnion.Theywerestrugglingwiththeagreementhowtoincludetheaviationsectorinit.LikewhichplanesarejustflyingoverEuropeorlandingthere.
10. Ifyouhavenotusedoffsettingbefore,howmuchextrayouwouldpayforaflightfromFrankfurttoPeruasadonationtoprotecttheAmazonrainforest?-Itdependsontheprice.Forexample,ifIpay100euroforaticketthen10euroisalotMaybeIwouldpay5EUR.IfIpay500EUR,10%iswaytoomuch.Iwouldn´tpay50EUR.
11. Canyouimaginepayingforthesesustainableinitiativesinthefutureforeverytrip?-Yes,Ithinkso.Whynot.
12. Discusstheultimateholidays!Whatmakesyourtraveltripperfect?(becreative)-IwouldliketogotoCanadaonce,ormaybetoIceland.Iwouldliketotraveltomanyweirdanimals.-IthinkSouthAmerica,Peru–Chile.Or,IwouldliketogotoMadagascar!
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QUESTIONNAIRE2Respondents:TwofemalestudentsfromGermany,20and23yearsold.Bothhavevolunteeredinachildren’shomeinAfricawhereresourceswerelimitedandthus,acertainamountofresponsibilitytowardspeopleandplanetisassumed.
1. Howmuchdoyouliketraveling?-Actually,IliketravelingbestinEurope.IwasonlyonceinSouthAfricaandonceinNewYork.-Iliketravelingsupermuch.IfIcouldIwouldtravelALLthetime,butofcoursethatsnotpossible.
2. Howmanytimesdidyougoonweekendtripsandvacationlastyear?-Ithink,onceamonthIhaveaweekendtrip.-Iagree,approximatelyonceamonthisrealisticforsmallertrip.ButIalsowenttoSouthAfricalastyearandMorocco,andtoFrance/Spain,sothreetimeslastyearIdidalongertrip.
3. Doyoumostlygobycar,bus,trainorplane?-IthinkIgomostlybytrain.EspeciallywhentravelingthroughGermany.It´sthefastestandmostofthetimethecheapestoption.IalmostnevergobycarbecauseIdon’thaveoneandmyfriendsdon'thaveoneeither.-IalsogobytrainorifIfindacheapticketbyplaneIwouldtakethat.Sometimestheplanecanbealsoveryexpensivethough.Ivisitmyboyfriendeitherbytrainorplane–dependingontheprice,thetimeconsumingisthesameanyways.
4. Pleasedescribe:doyouplantoflytofardistantplacesthisyearornextyear?(fardistancemeans1500kmandmore,likefromBerlintoNewYork)-No,notsuchalongtripisplannedbecauseIjustwenttoSouthAfrica.Therefore,mylimitisfull.ButIwillstudyinNorwaythisyearandwewillgotherebycarIdecided,eventhoughitsfartodrivethere.OnecouldflybutIdecidednotto.Iwillcomebackbytrain.WhenIwillvisitmyfamilyIprobablywon’tgobyplaneeither.-IwilldosomesmallertriptoFranceandSpainandonelongtriptoSouthAfricawithmymom.Iwillstaythere3weeks.
5. Doyouhaveafavoriteairlineoraleastfavoriteairline,whyisthat?-No,Iamnotverydemandingwithregardstheserviceoftheairlines.Actually,Idon’treallyseethedifferences.Andreally,IhavenotexperienceasupergoodserviceanywayssofarbecauseIbookwhat’scheapest.-IratherhavemadesomebadexperienceswiththecheapairlineslikeRyanairwhenwedidn´tprintouttheticketbeforeandhadtopayextraattheairportforit.
6. Whydoyouthinkairlinesare„good”companiesorwhy„bad”companies?Itdepends,whenIbookedbyflighttoLondonIwasfrustratedbecausetherewasnottherightconnectionthatIlookedfor.ButIlikethemwhentheyhavegoodoffers.Ithinktheyarenotdoingsomethinggood.EspeciallyIamconfusedwiththepricediscriminationoftheairlines,it’stotallynotunderstandablewhopaywhatfeeforthe sameconnection.-It´srathernecessarythatthealternativetransportliketrainoffercheaperticketsthanplanes.ButIrealizedthatIdon’treallyhaveaninfluenceonthepricepolicies.ButIknowthedemanditthereforcheapflights.
7. Haveyouheardofanyinitiativesfromairlinessofarthatshowscorporatesustainability,whichones?-Yesandno.SomeairlinesoffertopayCO2taxestotheairlinesafterbookingyourtripandthatmoneygoestosustainabilityprojects.Ontheonehand,itseemslikeagoodprojectbutontheotherhanditwouldnotworkifeveryonejustdoesitlikethat.
8. Haveyouseenorusedcarboncalculatorsbefore?-Yes,wesawthesecalculatorsbefore.Butnotattheairlineswebsitebutweprivatelylookeditup
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online.9. Areyouawareofcarbonoffsetting?
-Doyoumeanthatairlinesvoluntarysetupsomeprojectsordoyoumeanthegovernmentsrestrictemissionswithsellingcertificatesforit?-Isawthatthebushassustainableinitiativeslikethat.
10. Ifyouhavenotusedoffsettingbefore,howmuchextrayouwouldpayforabusticketfromZurichtoAmsterdam?-Well,Idon´tknowbutmaybe5%-10%-sofora40€Ticket,Iwoulddonate4€.-Iknowit´sactuallymuchcheaper,maybe1-2%.Butthat’sgoodsomanypeopledecidetoparticipatemoreeasily.ButIhavetostress,thatIthinkthatisnotthesolutiontotheproblem.Imeanyoucan’tstoptravelingandstoptakingpartinthesociety.Butwemustfindanothersolution.
11. Canyouimaginepayingforthesesustainableinitiativesinthefutureforeverytrip?-Yes,forsureIcanimaginepayingforitallthetimeswetravel.-Sure,ifithelps,Iwoulddonatesomemoneyforeachtrip.
12. Discusstheultimateholidays!Whatmakesyourtraveltripperfect?(imaginaryorreal)-Forsure,Iwantwaterinholidays,liketheseaoralakethatdoesn’tmatter.Itdoesn’thavetobethecoastfromFlorida.InormallygototheMediterraneanSea.AndIalsolikeitwarm:Aclassicbeachholidaywouldbebest.ButIalsoliketogotoacity.(laughs)Iwantitall.-Ithinkyoushoulddifferentiatebetweenrelaxingholidaysandtraveling.Forgettingoutofthedailyroutineandrelax,Iwouldlovetogoclimbingwithfriends,andwithgoodmusic–maybeintheSchwarzWald.FortravelingIwouldstartrightfrommyhomeanddrivetowardsAfrica.MydreamwouldbetodrivespontaneouslyfromEthiopiatoCapeTownandmeetmanypeopleonthewayandlearnabouttheircultures.
QUESTIONNAIRE3Respondents:Two femalestudents,bothare25yearsold.TheybothstudyatCBSandareawareof theimportanceofsustainabilitywithinbusiness.AsbothstudentsareGermanandtheyanswerinGermantofeelmorecomfortable.
1. Howmuchdoyouliketravelling?-IchkönntenichtohneReisenleben.Abereskannmanchmalsehranstrengendwerden.(lacht)
2. Howmanytimesdidyougoonweekendtripsandvacationlastyear?-15-malmindestens,weilich5-malimUrlaubwarunddannnocheineFernbeziehungführe.-Stimmt,dankmeinerFernbeziehungbinichauchständigunterwegs.
3. Doyoumostlygobycar,bus,trainorplane?-MeistensmitdemZug,niemitdemAuto-FastimmermitdemFlugzeugodermanchmalmitdemZug
4. Pleasedescribe:doyouplantoflytofardistantplacesthisyearornextyear?(fardistantmeans1500kmandmore,likefromBerlintoNewYork)-JadiesesJahr.NachdemMaster,willicherstmalverreisen.AmliebstennachAsien.
5. Doyouhaveafavoriteairlineoraleastfavoriteairline,whyisthat?-Nein,diesindmirvölligegal,-IchentschiedeauchnachPreiswelcheAirlineichnehme.AberQantasmagichtrotzdem!
6. Whydoyouthinkairlinesare„good”companiesorwhy„bad”companies?-Fluggesellschaftenhabenesnichtleicht.EsisteinhartesBusiness.-DerKonkurrenzkampfzwischendenAirlinesverhärtetdieFronten.
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7. Haveyouheardofanyinitiativesfromairlinesthatshowscorporatesustainability,whichones?-Wartemal.Dafälltmirgeradewenigzuein.Abervielleichtfälltesmirwiederein,wenndumirsagstwelcheInitiativendumeinst.-Klar,dumeinstdenAufpreisumseineReiseklimaneutralzumachen,oder?
8. Haveyouseenorusedcarboncalculatorsbefore?-Nichtwirklich.Eigentlichschade.ManredetsovielüberKlimawandel,aberhatdennochnurHalbwissenübersolcheFaktoren.
9. Areyouawareofwhatcarbonoffsettingis?-DieAblass-Briefevonheute!SoeinWitz,dassmananbedürftigeKinderspendetwährendmaneinLuxusgutwieReisenkonsumiert.Ichhabeesmalgesehen,aberdachtesofort,dasseseineFalleoderFakeist,umnochmehrGeldeinzunehmen.-Ichbintotaluninformiert.AbereinmalhabeichbereitsbeieinemFlugmitRyanairanUNICEFgespendetundwarichrichtigstolz!IchwolltealsgutesBeispielfürdasbewusstereLebenunsereGenerationvorangeben.
10. Ifyouhavenotusedoffsettingbefore,howmuchextrayouwouldpayforaflightfromFrankfurttoPeruasadonationtoprotecttheAmazonrainforest?-Einbisschenwassolltemanschondafürzahlen,insolchetollenLänderzufliegen.-Klar,jederderfliegt,kannauchetwasspenden.NurmussesebenimRahmensein,alsonichtüber20€bitte.
11. Canyouimaginepayingforthesesustainableinitiativesinthefutureforeverytrip?-Kommtdasnichtehbald?Umweltsteuerundso?-Jaichbindabei.WennjedereinbisschenGeldzahlt,kommtbestimmtvielzusammen.
12. Discusstheultimateholidays!Whatmakesyourtraveltripperfect?(imaginaryorreal)- IchwillunbedingteineWeltreisemachenumeinmaldieganzeWeltzusehen.ZumBeispielmitZug,dannmalSegeln,oderebenweitereStreckenmitdemFlugzeug.
- MeinTraumwäreesinGriechenlandvonInselzuInselzusegeln.
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