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Executive Summary
This research paper evaluates the application of CSR by Emirates Airlines. The research is motivated by the need to understand the possible gaps in the company’s CSR strategies, and hence determine the necessary adjustments that the firm should undertake.
Emirates Airlines appreciates the importance of operating in a social responsible manner in order to satisfy its internal and external stakeholders. In a bid to achieve long-term business success, the airline must improve its commitment to establishing a balance between its internal and external environments.
Therefore, the airline should ensure that it adopts a holistic approach in its CSR. The research paper analyses the various CSR activities and strategies that the organisation has integrated into its social responsible strategic human resource management practices.
The paper is organised into a number of sections. A brief company profile, the purpose of the study, and a statement of the research problem are outlined in the introduction section.
The literature review section entails a review of the available literature on the application of CSR strategies and activities in organisations while the methodology section outlines the research techniques used in collecting data from the field. Conversely, the analysis section entails an evaluation of the findings obtained from the study.
The last section outlines the conclusion and the recommendations that Emirates Airlines should consider in order to improve its CSR strategies.
Introduction
Emirates Airlines is one of the most successful air travel companies in the United Arabs Emirates (UAE). The firm was established in 1985 and it is owned by the UAE government. The airline’s operations are mainly based at Dubai International Airport, which serves as its hub.
It appreciates the significance of developing optimal competitive advantage in order to sustain superior performance. Subsequently, the company has invested a substantial amount of resources in order to attain competitiveness (Emirates 2014).
The airline is focused on continuous improvement of its fleet size and destinations in order to serve the local and international air travel demands. Currently, the company serves over 142 destinations, which is facilitated by over 230 aircrafts. It operates over 3,000 flights per week to over 70 countries.
One of the unique characteristics about Emirates Airlines entails its independent operations, as it is not a member of the major global airline alliances, viz. Star Alliance, SkyTeam, and Oneworld. Its independent operation was motivated by the need for optimal flexibility in responding to market changes.
However, the airline has entered a number of code-sharing agreements with different global airline companies in order to attain competitive advantage (Emirates 2014).
The airline has established two main divisions, which include Emirates Executive and Emirates SkyCargo. Additionally, the airline offers diverse cabin services such as economy class, business class, and first class.
In its quest to provide a high level of customer service, the airline has fitted its aircrafts with diverse in-flight entertainment system.
It has adopted the concept of global carrier and competitive pricing as its business model, which has remarkably improved its competitiveness against major international carriers such as British Airways, Air France-KLM, Qantas, and Lufthansa.
In addition, it has sustained its positive financial performance despite the prevailing economic changes. During its last financial year, which ended on 31st March 2014, the airline’s net profit grew by AED 3,254 million (Emirates 2014).
Statement of the research problem
The global airline industry has experienced considerable growth because of an increment in demand for air travel over the past few decades. Consequently, the degree of competition within the industry has increased substantially. New investors are venturing into the industry by adopting diverse business models such the low-cost models.
Conversely, some industry players are adopting diverse expansion models such as the formation of joint ventures in an effort to improve their market performance. The industry is characterised by a high degree of volatility due to economic changes (Worthington & Britton 2006).
However, despite the high degree of volatility, airline companies have a duty to satisfy the needs of their stakeholders such as investors, society, employees, and the government. Thus, the importance of integrating optimal strategic management practices cannot be ignored.
One of the aspects that airline companies should focus on in their pursuit for long-term survival entails entrepreneurial excellence.
According to Zu (2009), the intensity of global competition coupled with technological evolution has led to the emergence of a new business paradigm. Zu (2009, p. 44) suggests that intangibles ‘are seen as a critical factor for the production and the source of sustainable competitive advantage and prosperity’.
Consequently, to achieve entrepreneurial excellence, organisations must sustain a high level of profitability in addition to being responsive to environmental, social, and economic issues.
The airline industry has been cited as one of the major contributors of air pollution. It is estimated that the aviation industry accounts for approximately 2% of the total manmade carbon-dioxide emissions. The respective industry players have adopted diverse strategies in an effort to minimise emission of greenhouse gases.
Cowper-Smith and Grosbois (2010, p.59) insist that there ‘is a growing interest in the scope and effectiveness of efforts undertaken by airlines to mitigate their negative impacts and to contribute to sustainable development’.
The Inter-governmental Panel on Climate Change (IPCC) projects that the total greenhouse gas emissions from the aviation industry is expected to be less than 3% by 2050 (Pricewaterhousecoopers 2014).
Therefore, to attain the desired level of excellence, airline companies should invest in corporate social responsibility (CSR), which involves the extent to which an organisation’s operations are socially and environmentally ethical.
However, some airline companies are investing in CSR due to increased pressure from governments and environmental activists, which means that their motivation towards CSR is not inherent.
Additionally, the likelihood of such CSR initiatives being ineffective is high. Furthermore, Amann (2013) asserts that investing in CSR due to external pressure might lead to the adoption an ineffective strategy that does not align with an organisation’s bottom-line.
Background and rationale of the study
The concept of corporate social responsibility is based on the stakeholder theory. Business operations are based on complex relationship with different components of society. Zu (2009) is of the opinion that stakeholders can influence businesses’ long-term existence positively or negatively.
In the contemporary business environment, organisations are experiencing pressure from political and economic changes, growth in ecological concerns, intense competition, and change in public values. Nevertheless, businesses have an obligation to meet the requirements and needs of their stakeholders (Zu 2009).
According to the stakeholder theory, businesses should not only focus on the economic dimension and ignore the other dimensions in their quest to attain sustainability.
One the contrary, organisations should adopt a holistic approach in their operations, which means that they should factor in the diverse categories of stakeholders in their strategic management practices.
Luthans and Doh (2012) assert that businesses interact with two main categories of stakeholders, which include the non-market and market stakeholders. The non-market stakeholders entail individuals who do not directly engage in economic exchange with an organisation.
However, they are affected by the operations of the business. Examples of non-market stakeholders include non-governmental organisations, activity groups, and the government. Conversely, the market stakeholders involve the parties that are directly involved in an organisation’s economic transactions (Zu 2009).
Some of the major market stakeholder entails employees, shareholders, creditors, and other parties within the supply chain such as agents, distributors, and suppliers.
Organisations in different sectors are adopting aggressive growth strategies such as market expansion in order to improve and sustain a high competitive advantage. Consequently, their scope of operation, and hence their impact on society is increasing substantially.
Luthans (2011, p.109) asserts that companies’ influence ‘on society has become so pervasive that they should discharge accountability to more sectors of society than solely their shareholders’.
Some of the major justifications for investing in CSR include gaining a moral appeal, attaining a high level of sustainability, and gaining corporate reputation (Armstrong 2010). Horrigan (2010) proposes that businesses have a moral obligation to operate ethically despite their performance.
Additionally, tying CSR activities to an organisation’s operations enhances an organisation’s competitive advantage. Therefore, it is imperative for organisations to recognise the importance of understanding the impact of their operations on diverse stakeholder groups.
Objectives of the research
This study intends to understand the significance of CSR amongst business organisations. The study will be based on a case study of Emirates Airlines. The main research objectives include
- To assess Emirates Airlines’ CSR strategy and the activities that the organisation has designed in implementation of the strategy
- To evaluate the effectiveness of Emirates Airline’s CSR strategy
- To propose how Emirates Airlines can improve its CSR practices
Research questions
In order to attain the above research objectives, the study will be based on a number of research questions, which include
- What are the major CSR strategies and activities that Emirates Airlines has implemented?
- How effective is the corporate social responsibility strategies adopted by Emirates Airlines?
- In what ways can Emirates Airlines improve its corporate social responsibility?
Research gaps
Over the past decades, most organisations have appreciated the significance of CSR in their operations. However, the application of CSR practices has mainly focused on external stakeholders.
The external dimension of CSR entails focusing on social issues such as climate change, poverty reduction, disaster relief and corporate community involvement. Therefore, internal application of CSR has remained relatively low.
Wells (2013, p.128) argues that CSR ‘is typically regarded as a macro-level activity with macro-level consequences, and thus it has received scanty attention within the micro-organisational behaviour’.
Therefore, it is imperative for organisations to adopt a holistic approach in order to succeed in attaining social objectives. One of the ways through which this goal can be attained is by transforming organisations into a CSR-oriented.
Limitations of the study
This research entails a case study of Emirates Airlines. Subsequently, the findings of the study do not apply to other firms in the airline industry. However, it is assumed that the findings of the study will provide insight to firms in the global airline industry on how they can attain sustainability by adopting a holistic approach to CSR.
Organisation of the study
This paper is organised into a number of areas. First, a literature review outlining the various CSR approaches and strategies that are applied by organisations is provided. The methodology section explains the techniques used in collecting and analysing data.
An analysis of findings obtained from the field is illustrated by providing a detailed illustration of the responses obtained and their significance and implication to Emirates Airlines.
The gaps in Emirates Airlines’ CSR strategy are also identified. A conclusion on CSR in Emirates Airlines and the strategies that the firm should consider are outlined.
Literature review
Considering the high rate of globalisation and the emergence of the knowledge economy, organisations cannot anchor their success on their philanthropic practices and ignore other relevant stakeholders.
Furthermore, no profit-oriented company can afford a decline in their financial strength by over-engaging in philanthropic activities. Subsequently, organisational managers have a duty to balance between its engagement in CSR and business activities in order to attain the desired level of synergy.
Prasad (2005) asserts that businesses must ensure that their CSR strategies are sustainable. Despite the stunning growth in appreciation of CSR as a critical managerial aspect that is worth investing in, most organisations experience challenges in the process of designing, implementing, and monitoring CSR activities.
Prasad (2005) is of the view that organisational managers can integrate CSR by adopting two main approaches as evaluated herein.
Stakeholder mapping
This approach involves a mechanism of identifying the diverse stakeholder groups coupled with how they are related to an organisation. Therefore, stakeholder mapping enables an organisation to gain insight on the importance of the diverse stakeholder groups.
One of the most effective models that organisations can adopt in mapping stakeholders entails the salience model, which focuses on the stakeholders’ ability to influence an organisation’s actions. Thus, organisations should determine the most important stakeholder to consider during the process of formulating CSR strategies.
Stakeholder engagement
Organisations should base their CSR activities on extensive consultation process with the relevant stakeholders. Dialogue between the organisation and stakeholders is fundamental in establishing understanding and mutual interdependence. An organisation can establish stakeholder engagement via different levels.
These levels include the passive, proactive, two-way, and the listening level. The passive level involves communication of an organisation’s activities to stakeholders through different mediums such as the media.
The ‘two-way’ level of engagement involves a dialogue between an organisation and stakeholders through a well-established feedback sharing mechanism. On the other hand, the proactive level entails a form of engagement that provides stakeholders with an opportunity to participate in the decision-making process.
The listening approach entails collecting the stakeholders’ views through interviews. Idowu and Louche (2011) argue that stakeholder engagement contributes to the development of CSR in an organisation as the stakeholders’ views and opinions are well understood.
CSR strategies
Armstrong (2010) argues that CSR strategy should be integrated within an organisation’s business strategy. Moreover, the CSR strategy should be closely linked with an organisation’s HR strategy.
This association emanates from the view that CSR strategy is aimed at entrenching socially responsible behaviour within and without an organisation (Armstrong 2010). Previous studies conducted shows that organisations can adopt two main categories of CSR strategies that organisations can adopt.
These categories entail the employee-oriented social responsible strategies and the external oriented CSR strategies (Wells 2013). However, the application of these strategies in managing CSR has varied significantly. For example, most organisations have over-emphasised the external component of CSR and ignored the employee-oriented CSR.
Wells (2013) defines employee-oriented social responsible HRM as a management practice that focuses on employees by integrating various policies such as work-life balance and optimal reward system. Internal CSR strategies are focused on promoting the level of productivity within an organisation’s workforce.
Thus, one of the areas that internal CSR strategies are concerned with involves improving the workplace environment. According to Chandrasekar (2011), the workplace environment directly affects the employees’ level of engagement and productivity.
Some of the strategies that organisations adopt in improving the working environment entail employee retention strategies. Idowu (2009) asserts that organisations have a duty to ensure fair and equitable remuneration, which explains why firms are increasingly integrating monetary and non-monetary rewards.
Organisations should ensure that employees are remunerated equitably and fairly. In addition to these internal CSR strategies, organisations are increasingly adopting job policies that enable employees to balance between work and life aspects.
The main work-life balance strategies that organisations have adopted include flexible working policies such as flexi and part-time working schedules (Urip 2013). Moreover, organisations have a fiduciary duty to ensure that their workforces attain their career development goals by investing in employee training and development.
Investing in employee training strategies plays a fundamental role in improving an organisation’s ability to undertake succession planning. Additionally, it also improves the level of employability amongst employees.
Amann (2013) suggests that it is fundamental for organisations to pay systematic attention to the concept of workplace integrity.
Additionally, Amann (2013, p. 444) asserts that there ‘is a real danger or risk that all other initiatives [and particularly external CSR orientations] might fall apart or be characterised as insincere and misaligned if workplace integrity is ignored’.
Furthermore, Wells (2013) emphasise that an organisation that ignores the internal component of social responsible human resource management [SRHRM] is likely to perform dismally with regard to external CSR.
This assertion is based on the simple concept of paying attention to in-house corporate responsibilities before diffusing CSR to external stakeholders (Amann 2013).
Unlike the internal CSR strategies, the external CSR strategies are interested in the wider community within which a firm operates. The external social responsibility strategies are concerned with improving the general welfare of the external organisational stakeholders.
Wells (2009) asserts that external CSR strategies have received extensive attention by organisations in different sectors. The external CSR strategies are concerned with three main issues, which include social, environmental, and community issues.
Some of the major external CSR strategies that firms have invested in entail climate-change mitigation strategies, poverty reduction strategies, and provision of relief.
Yilmaz and Kucuk (2010) assert that investing in CSR may lead to improvement in an organisation’s reputation, and hence it’s overall financial performance.
However, some critics contend that the extensive investment in external CSR may affect the internal stakeholders adversely especially employees. Wells (2013, p. 125) argues that hiring for ‘cognitive moral development and agreeableness, and recruiting CSR-specific staff may affect the employment opportunities for other employees’.
Moreover, a firm might incur a substantial financial cost in the process of undertaking CSR-specific training, hence affecting the training and development of other employees.
Furthermore, other critics argue that the involvement in philanthropic activities such as poverty reduction might negatively affect an organisation’s capacity to remunerate its workforce fairly and equitably (Wells 2013).
Therefore, despite the significance of external CSR strategies in improving an organisation’s corporate reputation and survival, it is imperative for organisational managers to establish a balance between internal and external CSR strategies.
Methodology
The objective of this research study is to explore the application of CSR by Emirates Airlines. In a bid to attain the research objective, the study has adopted mixed research design. Thus, the qualitative and quantitative research designs have been integrated.
Qualitative research design was selected in order to provide the researcher with an opportunity to undertake an in-depth exploration of the research subject within Emirates Airlines.
Therefore, the likelihood of gathering a wide range of data is high. In order to be effective in interpreting, condensing, and analysing the data collected, quantitative research design has been integrated.
In order to improve the credibility of the research, the study is based on primary sources of data. Data was collected by conducting interviews on a number of internal and external stakeholders at Emirates Airlines.
The internal stakeholders selected during the study included employees in different levels of management and their subordinates. Conversely, the external stakeholders mainly included Emirates Airlines customers and the public in Dubai. Simple random sampling was adopted in selecting the research respondents.
A sample of 100 respondents, which comprised the different categories of stakeholders, was constructed using simple random sampling technique in order to eliminate bias. The selection of the research respondents was based on the assumption that they were conversant with the CSR concept.
Questionnaires were used as the main data collection instruments. However, it was ensured that the questionnaires were designed effectively by eliminating ambiguity and errors in order to increase the rate of response. The data collected was analysed and presented using Microsoft Excel.
The choice of the Microsoft Excel software was motivated by its effectiveness in presenting research data using different methods and tools such as tables, charts, graphs, and percentages.
Furthermore, Microsoft Excel makes it possible to compare the respondents’ opinions, hence gaining insight on the perspectives regarding the subject under investigation. Therefore, adopting Microsoft Excel aimed at improving the effectiveness with which the data collected from the field is analysed.
Analysis
In order to be effective in implementing CSR strategy, it is imperative for organisations to invest in diverse CSR activities.
Armstrong (2010) asserts that organisations should integrate social activities, adopt progressive HRM practices, focus on environmental concepts, and engage in other activities that contribute towards the advancement of the society’s welfare. This assertion highlights the importance of incorporating both external and internal CSR strategies.
Findings of the study showed that Emirates Airlines is committed to attaining long-term sustainability. The respondents cited different strategies that Emirates Airlines has adopted in its pursuit for CSR.
Fifty seven percent [57%] of the respondent cited Emirates Airlines’ involvement in external CSR, while 43% of the respondents cited its involvement in internal CSR.
Graph 1
However, the respondents’ opinion on the firm’s involvement in CSR varied as evaluated herein.
External CSR activities
Thirty seven percent [37%] of the respondents cited the company’s sports sponsorship activities. On the other hand, 20% of the respondents cited the company’s investment in the airline foundation.
Graph 2
According to these respondents, Emirates Airlines has invested extensively in sports’ sponsorship within the UAE and other parts of the world. The airline has invested in different sports such as football, rugby, motorsports, tennis, horseracing, golf, and cricket. The sports sponsorship program has been in existence for over 20 years.
Football constitutes one of the fundamental sports in the company’s sponsorship portfolio. In order to be successful in sponsoring sports, the airline seeks the sponsorship rights from the relevant sports governing bodies such as FIFA.
When asked why the motivation behind the company’s investment in sports sponsorship, the respondents’ opinions differed. Ten percent [10%] of the respondents argued that the airline considers sports sponsorship as an important element in the company’s effort to connect with its customers.
Nine percent [9%] of the respondents argued that the firm’s extensive investment in sports sponsorship arises from the need to support the society’s interests, while 13% of the respondents cited the need to establish a strong corporate identity within the society.
Graph 3
The respondents were of the opinion that the firm’s commitment to sponsoring sports enables it to be part of major sports events such as FIFA World Cup. Therefore, this commitment has played a remarkable role in improving the airline’s global recognition.
For example, its association with the Asian Football Confederation [AFC] has enabled the carrier to gain significant market recognition in Asia. Additionally, the airline is remarkably visible in the European region due to its sponsorship of major European clubs such as AC Milan, Arsenal, Paris Saint-Germain, and Real Madrid.
According to these respondents, Emirates Airlines supports a particular sport upon establishing a new route in order to create optimal market awareness. In line with this strategy, the company has developed a strong presence in Europe through its naming rights of the Emirates Stadium.
Furthermore, the airline has also entered an 8-year shirt sponsorship deal, which commenced during the 2006/2007 season. The airline has also established the Emirates Cup, which is a pre-tournament that is usually hosted by the Arsenal Football Club.
In addition to football, the airline has sponsored major rugby events such as the 2007 Rugby World Cup in France and the 2011 RWC in New Zealand. The airline has also signed an agreement to sponsor 2015 and 2019 RWC in England and Japan correspondingly.
Emirates Airlines has been the core sponsors of the Dubai Rugby Sevens over the past two decades. The airline is also involved in sponsoring high profile tennis tournaments such as the US Open Series, Rodgers Cup, the Dubai Tennis Championship, and Internazionali BNL d’Italia [BNP].
Recently, the airline entered a 5-year contract, whereby it will serve as the official airline during the ATP World Tour (Emirates 2014).
Emirates Airlines has also portrayed its commitment to the growth of Formula 1 sports event by collaborating with F1. For example, in 2013, the airline presence was evident during the Formula 1 season in North America, South America, Asia, Europe, and Australasia.
For example, the circuit bridges were branded with Emirates Airlines’ logo and colour. Through its sports sponsorship, the airline has established a strong link with its customers. For example, the firm interacts with customers through different platforms such as the digital and mainstream platforms.
The airline has also incorporated horseracing as a component of its sports sponsorship portfolio. Some of the horse racing events that the airline sponsors includes the Dubai World Cup Carnival, the Melbourne Cup Carnival, and the Singapore Derby (Clark 2011).
On the other hand, 2% of the respondents cited the company’s involvement in cultural sponsorship. The respondents cited the airline’s commitment to the growth of culture and arts.
For example, the company has collaborated with the Dubai Summer Surprises, which is a major shopping festival, viz. the Emirates Airlines Festival of Literature and the Dubai jazz and film festivals.
The commitment to these festivals has played a remarkable role in improving its global recognition by providing consumers with an opportunity to experience diverse cultures (Emirates 2014).
Apart from sports and cultural sponsorship, 3% of the respondents were of the opinion that the airline has invested adequately in CSR by assisting the needs of children in different parts of the world.
When asked how, the respondents were of the opinion that the airline has established a foundation that is led by His Highness Sheikh Ahmed bin Al-Maktoum. The Emirates Airline Foundation operates as a philanthropic and humanitarian organisation that focuses on providing aid to children.
The objective of the foundation is to improve the wellbeing and quality of life amongst children in need. Some of the areas that the foundation focuses on include education, health, and the provision of shelter. Through its foundation, Emirates Airlines has improved the quality of life within the community in which it flies.
For example, the airline has established the Emirates Friendship Hospital Ship in Bangladesh in an effort to provide effective healthcare services to children in the rural areas (Emirates 2014).
From the above analysis, it is evident that Emirates Airlines has mainly emphasised sports sponsorship and promotion of children welfare in its CSR strategy. However, it is imperative for Emirates Airlines to expand its community involvement.
According to Fernando (2009), social exclusion is one of the major risks that can hinder an organisation’s ability to exploit available opportunities.
In addition to community, Emirates Airlines should invest in environmental protection programs as the occurrence of climate change due to environmental pollution can affect the airline’s competitiveness adversely.
Recently, the airline has illustrated its commitment to protecting the environment through its partnership with the Emirates Marine Environmental Group [EMEG, which is focused on protecting marine life.
Internal CSR strategies
The study shows that Emirates Airlines is committed to the internal component of CSR. Subsequently, the airline has integrated a number of strategies in order to attain optimal CSR. Seventeen percent (17%) of the respondent interviewed cited the company’s commitment to fair and equitable remuneration.
The respondents argued that the company has formulated one of the most competitive compensation packages. In their opinion, the airline has integrated a comprehensive reward system that entails diverse benefits, which include monetary and non-monetary benefits.
Some of the cabin crew employees selected in the study asserted that their salary scale is based on three main parts, which include the basic salary, flight per hour pay, and the overseas layover or night-stop allowance.
Therefore, the airlines’ cabin crew members receive benefits depending on the number of hours flied. Additionally, the salary scale also varies depending on the cabin-crew job position, viz. the first class, economy class, business class, the Pursur, and the senior flight attendants.
In an effort to improve the level of motivation amongst its employees, Emirates Airlines increases the salary scale as workers gain experience, which depends on their length of tenure within the organisation. This strategy has played a fundamental role in improving the rate of employee retention within the organisation.
Furthermore, 10% of the respondents cited other monetary benefits received at the workplace. Some of the benefits cited include the free accommodation, transport allowance, utility bills, and accommodation allowance to employees who opt to reside outside the company’s residential property.
However, the allowance varies depending on the job position. Employees in higher job positions receive higher allowances as compared to those within the normal crew job positions. The respondents also cited health insurance packages as one of the monetary benefits received at Emirates Airlines.
In addition to monetary benefits, 8% of the respondents cited diverse non-monetary benefits. One of these benefits cited include the provision of training and development. Conversely, 8% of the respondents considered in the study were of view that the firm has invested optimally in a comprehensive employee training.
The respondents asserted that the airline provides them with an opportunity to progress through their career path. A further 8% of the respondents interviewed said that they are pleased with the airlines’ work-life balance strategy.
According to Fernando (2009, p. 200), ‘organisations should strive to create a balance for their employees so that sacrificing personal lives may not become a pre-condition for a successful professional life’. Work-life imbalance increases the level of stress and reduces employee motivation due to lack of job satisfaction.
Consequently, the likelihood of an organisation experiencing loss of talent due to employee turnover is increased (Mallin 2009).
When asked how the airline has incorporated the concept of work-life balance, the respondents argued that it had integrated effective time management. Sekhar (2009) argues that effective time management is fundamental in providing employees with an opportunity to balance between work and personal issues.
Therefore, incorporating the concept of work-life balance plays a fundamental role in minimising job-related stress. The respondents argued that the airline has incorporated different policies to entrench workplace flexibility. Some of the policies cited include flexi-time, part-time, job-sharing, and telecommuting.
The flexi-time system allows Emirates employees to determine their most appropriate time to work, for example, between 10 a.m. and 5 p.m. The flexi-time system provides employees with a high degree of control over their work schedule. On the other hand, job sharing involves sharing of duties amongst part-time employees.
One the other hand, telecommuting involves working at home using an effective and efficient computer system that connect employees with the workplace (Morrison 2006).
Conclusion and recommendations
The case study highlights the importance of CSR in an organisation’s effort to attain long-term business excellence. The study shows that Emirates Airlines has recognised the importance of incorporating CSR in its strategic management practices. Its motivation to invest in CSR is driven by a number of factors.
First, CSR constitutes an important component in the airlines’ marketing strategy. Investing in CSR has enabled the company to penetrate new markets successfully. For example, the airline develops optimal market recognition by sponsoring various CSR activities such as sports, culture, and art.
Through its long-term commitment to sports’ sponsorship, the airline has interacted with different societies around the world. Consequently, there is a high probability of the airline improving its competitiveness in the global airline industry despite its volatility to economic changes.
Conversely, Emirates Airlines is also focused on improving the welfare of the society through its poverty alleviation, health, and education sponsorship programs.
Thus, the airline has gained a positive reputation in different societies. However, the company has only focused on the community and ignored the environment. Thus, it is imperative for the management team to improve its external CSR strategy.
The airline has also adopted effective internal CSR strategies, as evidenced by its investment in improving the working environment through effective reward management system and time management policies. This aspect has remarkably improved the rate of employee retention in the organisation.
Despite the efforts made, Emirates Airlines should incorporate the following elements in its CSR strategies.
- It should balance its CSR strategy. Currently, the firm mainly focuses on sports sponsorship.
- Environmental dimension; the airline should improve its commitment to protecting the environment by investing in programs aimed at minimising environmental pollution. The significance of adopting the environmental dimension in its CSR strategy arises from the strong link between the prevailing environmental conditions and the airlines’ long-term profitability. For example, the occurrence of natural events such as floods and bad weather due to climate change due to manmade activities can affect the airline’s operations, hence its profitability.
- Training – the airline should invest in a comprehensive training program in order to instil knowledge within its workforce on the significance of participating in social responsible activities. This move will improve its workforces’ commitment in implementing best practices.
- Networking businesses and CSR – Emirates Airlines should ensure that all the stakeholders within its supply chain are integrated into its CSR strategy in order to ensure that the CSR activities undertaken are not counterproductive due to lack of commitment from other parties.
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