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Csr Research Report Case Solution & Answer

Csr Research Report Case Solution 

Introduction

An emerging airline company needs to expand its business into different regions of the world by inflating its services and routes. In order to expand its services, the company needs to focus on the few important factors in order to run long time and achieve desirable results. As the company is already devastated and criticized by number of different sector as climate activists, so the company needs to analyze the factors that will not add into the green housing effects. In order to avoid the factors that will diminish the environmental problems, the discussion of different CSR theories and factors needs to be focused.

This report will discuss the CSR responsibility for the organization to deal with the issues of carbon emission and analyze the situations and suggest the plans to increase the environmental sustainability. Further we will discuss how these initiatives help the firm to increase the performance and fulfill the business objectives as the expansion will affect these factors.

CSR (Corporate Social Responsibility) is a self-regulating business model which is helpful in making the company more socially accountable to itself, its stake holders and its public.It is a broad concept that can make a company more responsible regarding all the aspects of society such as economic, social and environmental. CSR will help the company to boost up their brands by increasing the efforts regarding philanthropy, volunteer and CSR programs etc.  It will also help to initiate the stronger bond between the customers and the company, due to this both the employees and employers became more connected more comfortable and more diverse towards each other. The low awareness of CSR throughout the company is still the critical impediment these days as it makes the company less beneficial towards work. Therefore the need for CSR to maximize their benefits and structure is firmly needed to make the company more impotent and effective. (du, 2010).

The role of CSR in different airlines

The tourism industry, specifically aviation industry has been receiving the immense importance because of its decisive impact on the society. In order to increase operational efficiency or profits, CSR is the most important component of the enterprise. As the aviation industry is already running in such a competitive environment, CSR being an important factor that boost the sustainability of the company by decreasing the environmental conditions such as pollution’s, carbon dioxide emissions, pollution’s etc.(Serhan, 2018)

Different airlines such as Etihad airlines has initiate the CSR theory to support the locals that has been affected by the covid-19. On the other hand, Emirates appreciates the importance of CSR in a respectable manner in order to satisfy its external and internal stake holders. In order to sustain and run the company the amplification of CSR theories in order to balance between external and internal environment is very important for the company.

Brief difference between different airline CSR activities

Emirates Etihad
Emirates focuses on the CSR by serving as a non-profitable charity organization. Their aim is to help the disadvantaged children by providing them full potential needs such as food, medicine, shelter and education. Etihad focuses on the CSR activities by providing the support to the people that has been combat by the global pandemic.

 

Theories of CSR

The CSR is divided into three significant theoretical definitions which are descripted below;

·Carrol CSR Pyramid

This theory shows the way how the community and corporation communicates with its surrounding and the whole world. This theory consists of the four infra-structure that is very important foundation for a healthy environment and society. These infrastructure includes;

.Economical responsibility

The first obligation of any business is to look after its finances. Every business whether its profitable or charitable organization needs money or assets in order to sustain and become successful in the business. According to carrol, the first step of implementing CSR into business is to look after its operations and make money. It is very important for the company to sustain profits in order to assist its investors and employees. Moreover, profits are required to reinvested back in order to acquire business growth. The economic responsibility of a business includes investments, marketing strategies, variations in businesses and stake holders.

.Legal responsibility

According to carrol, the owners and corporations are required to respect all the rules and regulations regarding any business. A responsible corporation is the one that fairly runs the business in the light of all rules and regulations stated by the acquired country. CSR supports the business in terms of fair policies and good quality products without any illegal act.

.Ethical responsibility

The corporation must behave as a good citizens and follow all the ethical rights stated by the company. In other words, ethical responsibility embrace fair activity done by the corporation. For example; for fishers, the hunting of fish is required in a acquired amount of quantity which means that the fishers are allowed to hunt a fishes as stated by the ethical policies in order to behave fair citizen of a country.

.Philanthropic responsibility

It is a giving responsibility purely directed to the society. It is a voluntary activity of a corporation to participate into the societal activities that are not mandate. According to the carrol, as engaged in the philanthropic responsibilities, the corporation are required to sponsor any sports or social activities for the society or any donations or charitable campaigns for the community. This will help the community to attract towards the corporation.According to carrol theory, all of these factors must be applied in a theoretical order. The companies should develop the social campaigns and activities by achieving the economic benefits at first level by maintaining the profitability and sustainability. Then comes the third level which is strictly following the legal framework by discouraging illegal work and frauds. After going through all the legal regulations provided by the country, the company should acquire ethical frame work and work fairly by maintaining good citizenship. Finally, achieving the last level that is philanthropic responsibility which is very important to promote the company by providing the social campaigns and activities to the society and promote their self-worth. (Crane, 2012)

The triple bottom line theory

Triple bottom line theory is a theory of CSR that incorporates with three types of aspects of performance such as economic, social and environmental. All of these dimensions of TBL regard sustainable results. It has been observed that in order to gain maximum profits and environmental benefits companies must observe the TBL theory of CSR in their practice. (Elkington, 1998)

According to TBL, the most important objective of the company is to earn long term benefits instead of earning one-time profit. So the company may require to record the economic benefits by calculating all the taxes, overall profits, evaluating climate factors and expenditures etc. whereas social dimension refers to the fact that the company may focus on its social affairs by maintain the financial dimensions. Another most important and sustainable dimension of TBL is environmental dimension. It is the center most dimension of running and enjoying any business. If the owners do not imply and focus on the environmental dimensions, so the people won’t enjoy the quality of education we are having now. Owners must focus on the environmental changes and strictly follow all the environmental rules by consuming natural resources carefully. Corporation must avoid traditional resources such as oil, gas or coal by using any other alternative resources in order to make our environmental breathable.

The stake holder Theory

This type of CSR theory is developed by Freeman and Reed. This theory affects the achievement of organization in a broad way. He initiates the “stake holder Approach” in his theory which states that the company can only be achieve maximum revenues by balancing the interest between all the group of stake holders (Freeman, 2010). As a descriptive theory, the stake holder theory is used to describe the nature of firm, the constituents of different organization and the interest of stake holders. (Brenner, 1991)

Outcomes

All of these three CSR theories have few common features that needs to be target during implementation process of any CSR theories. (see Appendix2) These features includes; (Brin, 2018)

  • Respect all the human rights and provide equality to all the stake holders
  • Focus on ecology laws and avoid using natural resources
  • Try using renewable resources
  • Develop social environments and activities for the welfare such as hospitals, schools, nursery and sport institutions.
  • Make sure that the products and services you are making or delivering does not pollute the environment.

The main objective is to select a most appropriate CSR theory and make a strategic management and implement it. (Safarzad, 2017)Figure 2 in appendices shows the implementation of CSR theories………………..

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