Approaches to Tourism and Hospitality Business Management Assignment Sample
CRITICALLY ANALYSE DIFFERING APPROACHES TO CORPORATE SOCIAL RESPONSIBILITY IN EITHER THE TOURISM, AVIATION, OR HOSPITALITY INDUSTRY SECTORS
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Introduction
The following piece of work would highlight the approaches of the aviation industry towards strategic operations concerning its corporate social responsibility (CSR). For the sake of discussion, the chosen three organizations within this industry are – British Airways, The Cargo Logic Air and lastly The Eastern Air. Moreover, an overview of the industry with scope elaboration would be undertaken to understand the impacts of CSR activities. In addition to this, a detailed discussion on the financial front and on the mission and visions of the companies would be illustrated. In addition to this, the importance of practicing CSR activities would be focused alongside evaluation of these activities in the backdrop of the aviation industry.
In continuation to the above discussion, theoretical dimensions of CSR activities of the aviation industry with reference to the three companies would be illuminated as well. This is required to measure the effectiveness of the individual organisations from the perspective of environmental and social benefits. Discussion on geographical scopes to perform CSR activities would be elaborated focusing on discussion concerning business limitations they pose. Additionally, opportunities for business with reference to their level of experience and financial structure would be succeeded by concluding remarks.
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Industry overview and scope
Overview
The UK is considered to be the third-largest country in terms of the aviation industry workforce. In this context, Xue and Fu (2018) commented that a modified model of investigation for the general aviation industry reveals the fact that different companies undertake varied approaches in terms of their individual CSR activities. Hence, despite the huge turnover of the industry, around 60 billion GBP, the industry is required to consider the CSR aspects also. This is more needed to ensure that it does not offset the country from the path of constructing efforts to build a sustainable environment. Apart from this, the industry is found to be contributing around 22 billion GBP towards the GDP growth of the UK alone (Statista.com, 2021). In addition to these facts, the other prominent contribution of the industry is observed to have opened job opportunities for the people of the UK, amounting to around 1 million.
Figure 1: Turnover of the Aviation Industry in the UK
Scope
The scope of CSR activities within the aviation industry is observed to be the pivotal motive behind functionality of the companies under it. Furthermore, the relationship between corporate revenue and CSR activities opens a huge scope for social improvement as well. In this context, Revin and Shevcheko (2019) mentioned that implementation opportunities of a variety of scopes concerning CSR activities are wide. Hence, the financial performance scope of the industry is found to be at par with the value performance of their operational activities as well. Further exploration of the CSR activities of this industry reveals a quadratic performance curve with organisational performance. Hence, the impact of CSR activities paves scopes for positive openness of value performance within this industry. As a consequence, further scopes for the enhancement of procedural knowledge through a strategic approach can be mitigated with success. Therefore, the elementary view of these aspects helps to understand the logical philosophy of CSR performance of the aviation industry.
3. Discussion regarding the financial position, missions, visions, and values of three chosen companies from the industry
British airlines is a UK-based airlines firm that has its headquarter in London and operates globally through including flight destinations in more than 183 countries (Britishairways, 2021). After Easyjet, British Airways is the second-largest airline from the UK that runs passenger flights including an average fleet size of around 254. The management of British Airways follows the vision of ‘becoming the world’s most responsible airlines’ through performing corporate responsibilities and operating under the aim of ‘one destination’ (Britishairways, 2021). The mission statement followed by British airways management is ‘ensuring confident and comfortable flights offered to customers along with maintenance of corporate responsibility towards protecting the world. British Airways management also follows certain values such as open-mindedness, diversity, energy, and know-how that aid them to stay within the top ranks of the British airline’s list (Careers. ba, 2020). All the values, mission statement, and vision followed by British Airways reflect the firm’s preference towards performing their responsibility to respect customers, protect the environment and operate fairly and ethically. Multiple loyalty programs and high-quality customer services offered by British Airways aided them to maintain a high position within the British aviation market (Businessinsider, 2018).
CargoLogicAir is another UK-based aviation firm that also holds its headquarter in London and mainly runs cargo airlines across four cities from the UK. Flights run by CargoLogicAir mainly transport goods such as oil, medical instruments, and others required for commercial purposes (Cargologicair, 2021). CargoLogicAir hired multiple efficient staff from the global supply system such as the CEO from Qatar airways and efficient airlines staff from Chinese airlines to develop a strong aviation firm. Vision and mission followed by CargoLogicAir include sustainability maintenance through performing activities about corporate social responsibilities including protection of the environment and others. The recent trade partnerships occurring between CargoLogicAir and freight forwarding companies from China and European countries indicated the firm’s aims towards strengthening its cargo services (Cargologicair, 2021). Strengthened cargo services would contribute towards the conduction of corporate responsibilities including sustainability maintenance via transporting goods in desired conditions at the proper time and limited costs. CargoLogicAir secured the third rank within the list of top ten global firms contributing towards the prevention of environmental, societal, and governance risks (Dnb, 2021).
Eastern Airways is another aviation firm based within the UK that provides flight services including charter, international and domestic since 1997 (Easternairways, 2021). Currently, Eastern Airways is running flight services to around 15 different countries around the world, carrying passengers and goods between the UK and the destination countries. The mission statement of Eastern Airways includes creating a sense of wonder and comfort while traveling amongst travelers from underserved markets as well as providing nonstop flight services (Easternairways, 2021). This mission statement of Eastern Airways highlights their emphasis over corporate social responsibility of equitable airline services distribution amongst all global locations including underserved ones. Eastern Airways also secured the third position within the ESG list of top countries contributing towards the environment, society, and governance protection (Dnb, 2021). The vision of Eastern Airways includes being ‘number one to the sun through establishing fantastic connections’ that highlights aggressive growth approach and sustainability aims of connecting the world of the firm.
4. Description of CSR and its importance in the chosen industry
The term CSR or Corporate Social Responsibility refers to the activities performed by individuals or public and private organisations for the protection of the environment, society, and governance. Liang and Renneboog (2017) stated that CSR includes not only actions but also policies and regulations adopted by organisations or country governments for protecting the interest of societal people and preventing environmental destruction. CSR activities were considered as voluntary or philanthropic initiatives adopted by individuals or organisations until a few years ago for maintaining sustainability across the world. However, the current version of CSR evident around the world includes large-scale engagement of organisations from both public and private sectors to address global sustainability goals (Grayson and Hodges, 2017). Industries such as aviation, tourism, and others across the world are getting involved in including CSR activities within their professional curriculum and organisational objectives.
Involvement within CSR activities aid firms and industries to enhance their awareness within the global market by highlighting their contributions towards the protection of society, environment, and governance amongst global natives (Stevenson and Marintseva, 2019). A sense of trust is being created amongst global customers towards the brands and industries engaged within CSR activities due to the initiatives adopted by them for protecting the world. Engagement within CSR activities becomes highly essential for aviation firms specifically to prove their contributions regarding environment protection amongst the global customers. Aviation firms across the world are often alleged with the conduction of environmental pollution in terms of air, water, and soil pollution followed by health hazards for living creatures (Tuzcu et al. 2021). Thus, the conduction of CSR activities to protect the environment through minimizing air, water, and soil pollution caused by their operations becomes essential for aviation firms to regain consumers’ trust.
Figure 2: Principles of Sustainability Development Theory
The principles of sustainable development theory describe the three major goals of sustainability maintenance including economic progress, societal development, and environmental protection. As opined by Shi et al. (2019), the societal development principle of the sustainable development theory highlights activities conducted by firms or individuals for developing the lives of social people. The same is often done by aviation firms through investing funds within projects such as the establishment of schools, hospitals, orphanages within communities belonging to low-income groups. Societal development is also performed by aviation firms around the world through arranging employment options for unemployed people from low-income groups and maintaining a diverse work culture.
Economic progress principles of sustainable development theory explain the activities conducted for increasing revenues and contribution towards national GDP growth (Mdpi, 2019). Investments within digital innovations and the establishment of advanced infrastructure done by aviation firms indicate CSR activities conducted by them to ensure the economic progress of respective countries. Innovations implemented by aviation firms within their operations aid them to attract global passengers on a large scale and thereby boost their revenues and contribute towards national GDP growth. Environmental protection is the third important principle of the sustainable development theory that includes activities conducted for protecting natural habitats, air conditions, and the lives of all living creatures (Zhang et al. 2020). Almost all aviation firms conduct CSR activities for protecting the environment such as lowering carbon emission to zero levels, reducing GHG gas emission levels, and increasing fuel efficiency.
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Critical evaluation regarding the application of CSR within the chosen industry
British Airways
The evaluation of the CSR activities of British Airways within the aviation industry is found to be based on the usually recognised contributions towards the growing issue of climatic change. In this context, Sulistya and Ginaya (2020) mentioned that CSR in the backdrop of the aviation industry is all about reducing all those negative effects that it throws at the atmosphere. Hence, the company is found to be holding back the usual inclination of the organisation towards the overconsumption of aviation fuel. This in turn has propelled the organisation one step closer to keeping its commitment for a greener environment. However, quite on the contrary note, Ferla and Graham (2019) argued that the underrepresentation of commercial data still needs to be further investigated to determine the extent of the aviation industry in keeping its promise of a cleaner environment. Therefore, the current proportion of contribution towards pollution of the atmosphere is still under scrutiny.
In continuation to the above discussion, it needs to be understood that annually a million tonnes of greenhouse gas get emitted from the airplanes. Hence, the organisation is found to have taken steps to curb the ill-effects of those by ensuring rapid diffusion of those gases as fast as possible to reduce the elongated accumulation of them in the atmosphere.
CargoLogic Air
The detailed study of this company within the aviation industry reveals that the organisation is more concerned about air pollution as part of its CSR activities. In this context, Yuen et al. (2018) commented that behavioural investigation of the aviation industry further hints that the industry may quickly touch the mark of 15% concerning the emission of Greenhouse gases. Hence, CargoLogic Air is found to be more oriented to direct all of its CSR efforts towards mitigating this issue. Contextually, the other CSR activities that are aimed at social causes are found to be constructive for the minimisation of noise pollution in the vicinity of airports. On the other hand, Ratajczak and Rokicki (2018) argued that the implementation of CSR for selective cases would have little impact on the overall environmental and social causes. Hence, the organisation is found to be investing more to devise ways to at least reduce flight operations by 0.5%. The prime hindrance of attaining this CSR activity is observed to remain associated with the fact that it is experiencing a business growth of 20% annually. This further increases its flight load harming most of its CSR activities.
Eastern Air
The CSR activity evaluation of Eastern Air has suggested that the organisation is critically considering the environment going beyond its regular profit and other passenger commitments. In this context, Cincalova (2018) stated that the present positioning of CSR activities is found to be mostly focused on sustainability aspects. As far as Eastern Air is concerned, this sustainability aspect for them is more concerning environmental sustainability than business sustainability. The core CSR principle of the organisation highlights the importance of environmental sustainability for business viability. So, Eastern Air is found to be more focused on improving the fuel efficiency of its aeroplanes. In addition to this, improvement of atmospheric visibility by reducing pM2, pM10 components in the air is its other CSR aim. Contradictorily, Keremidchiev (2019) argued that CSR activities have taken a different turn especially after the fourth industrial revolution and hence not limited to environmental safety only. Therefore, Eastern Air, following this popular trend is also found indulging in activities of CSR that do not directly interact with environmental issues.
In continuation to the above discussion, the company is found to be practising the deployment of renewable energy sources to run its day-to-day operations of the business. Furthermore, waste management has formed a part of its CSR activities as well. The company is further found to be pondering over the reuse of materials to build the fuselage of its fleet of airplanes.
6. Influence of Globalisation and shock events
Globalization occurring in all industrial levels in terms of expansion of business cross border is often found to influence CSR objectives followed within aviation firms. The foreign expansion of aviation business through including international partners or developing cross-border joint ventures imposes the CSR duty of maintaining fair trade practices between the countries involved (Kampova et al. 2018). The inclusion of global stakeholders within the aviation business as part of the globalization process generates the importance of CSR activities such as responsible and ethical sourcing, fair partnerships, and justice. Thus, aviation firms operating globally are including new objectives regarding CSR such as ethical and responsible sourcing, maintenance of justice and peace, and fair partnerships and collaborative goal achievements. These new objectives are allowing aviation firms to avoid the emergence of issues including unethical resourcing caused through association with unethical global stakeholders and cross-border business partners (Adams et al. 2019). Benefits including the ethical sourcing of resources followed by delivery of high-quality aviation services towards customers are also availed by aviation firms through the new objectives adopted by them.
Objectives of maintenance of peace and justice allow aviation firms to include CSR policies regarding legal obligations to be imposed upon their global partners upon violation of business rules. Shock events including environmental hazards globally appearing on sudden notes are found to create high influence over CSR objectives followed by aviation firms (He and Harris, 2020). For example, the emergence of the COVID-19 pandemic across the world in 2020 resulted in aviation firms operating globally to modify their CSR activities including hygiene and sanitation aspects. The global sustainable development goals adopted by the United Nations include the objective of maintenance of good health and wellbeing of all human beings (Un.org, 2021). This objective includes operational areas such as protection of maternal health, neonatal health, family planning, health safety from hazardous chemicals and substances, reduction of illness, and others.
However, maintenance of personal hygiene and sanitation was not included within the goals for sustainable development adopted by the UN government that were followed to date by aviation firms. The new operational aspects including ensuring good health and wellness through maintaining personal hygiene and sanitation are included within CSR goals by many aviation firms post-emergence of COVID-19 (Qiu et al. 2021). The contagious nature of the pandemic to spread from one person to other upon physical touch and contact has caused environment specialists to consider it as a shock event. A shocking event such as the COVID-19 pandemic has created destructive impacts including health hazards and deaths of people, declined organisational productivity, and slowed national economic growth around the world. Thus, aviation firms have included maintenance of personal hygiene and sanitation within their CSR objectives list to prevent the rapid spread of the COVID pandemic and revive their productivity.
7. Summary/Conclusion
The above piece of work helps to conclude that the CSR activities of the aviation industry are primarily focused on improving environmental issues. Furthermore, the dissection of organisational activities of three organisations, namely – British Airway, CargoLogic Air and Eastern Air further reveals the scope of improvement within the industry. In addition to this, the turnover of this industry helps to elicit that sustainable improvement of these organisations is quite possible also. The organisations are found to have adequate resources to plan their activities in sync with their CSR activities. Further research in this field helps to conclude that the resource capabilities of these organisations within the aviation industry are capable of sustaining any long-term ill-impact on them.
In continuation to the above discussion, the financial positioning of these organisation helps to draw a conclusive decision concerning their aim of delivering a comfortable flight journey to its customers. This in turn is found to be serving the social aspect of its CSR activity as well. Additionally, the inclusion of workforce diversity and openness is found to be the other two crucial aspects of the organisations to attain sustainable CSR activities. The illumination of CSR importance helps to conclude that government has an important role to play to ensure that companies can meet their target of delivering environmentally sustainable CSR activities as well.
In relation to the above discussion, the critical evaluation of the CSR activities of the three individual organisations has helped to elicit the main focus that is primarily on environmental improvement only. However, further diving deep into this aspect reveals that consideration of the use of renewable energy; waste management and reuse of materials are also on the cards. Additionally, the impacts of globalization and the worldwide issue of the pandemic is found to have impacted quite adversely on the CSR activities of these organisations. Even if be a little bit, however, the focus has started to shift more towards business profitability. A collaborative approach is therefore found to be the prime objective of these organisations to ensure business sustainability besides environmental sustainability.
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