BUSINESS AND ENTERPRISE1 Corporate Social Responsibility and Sustainability ThiseasytalkabouttheapproachofAirNewZealandtocorporatesocial responsibility and sustainability and ways it adapts to achieve it. Air New Zealand is one of the well-known airlines of New Zealand as it the flag carrier of the country, with headquarter in Auckland. The company is involved in operating planned passenger flights which are comprised of 31 international and 20 domestic destinations in around 19 nations across the United Kingdom and the Pacific Rim, with the purpose to boost the success of New Zealand economically, environmentally, and socially. (Air New Zealand, 2019b). Environment Sustainability- Sustainability Framework of Air New Zealand is focused towards reducing its harmful impact on the environment and society. Therefore, every year companyrecognizesthe materialissuesdependingon itsprobableinfluenceon their performanceofthebusinessandtheirsignificancetothestakeholders-comprising employees, communities, customers, investments, and partners with which business operates its activities (Air New Zealand, 2017). The material issue of the company notifies its sustainable approach, strategic priority and sustainability reporting. Involve - Air New Zealand gets involved with a number of its stakeholders, externally and internally in order to recognize the material issues.It takes regular feedback from the community, investors, and customers (Air New Zealand, 2019a), feedback from the key Sustainability Advisory Panel comprisedofsubjectmatterexpertslikeinterculturalunderstanding,sustainable development, climate policy, sustainable consumption, Māori culture, societal wellbeing, interculturalunderstanding,conservation,aviationindustryeconomics,andsustainable tourism. Issues highlighted by the Board Directors (Air New Zealand, 2018), feedback is also gathered from the Sustainability Executive Steering Group. Besides this, risk is recognized in the procedure of identifying in Enterprise Risk and annual business planning. The company is
BUSINESS AND ENTERPRISE2 involved in decreasing carbon emissions with the effective use of fuel and discovering new profitable technology and solutions in order to stabilize the carbon emission by 2020 and reduce its influence on the environment (Air New Zealand, 2019c). Through this, company is able to call itself to be involved in innovation and safety of its employees as well as society. Social Sustainability- The bi-annual engagement of employee survey with the name "Your Voice" supports company in recognizing what is going well in the business and what the management of the company needs to work on. In the year 2018, the total engagement score augmented from 2016 of 69% to 71%. The engagement plan of the company is aimed towards gaining superior collaboration in all the teams, which connects the workforce with all the senior leaders such that employees feel inspired and informed. As per the survey conducted, 80% of the employees linked with Air New Zealand think the company is open to and accept differences (Air New Zealand, 2018). It manages diversity and gender equality- The 2020 strategy concentrated on developing recruiting a varied workforce and developing a thriving culture for people. The major priority in Air New Zealand is regarding quickening the women advancement in company Senior Leadership Team. Besides this, the company majorly involved in highlighting the under-representation of women in the profession regarded as male-dominated. Airlines have introduced Women Inspiring the Next Generation of Female Pilots network (Air New Zealand, 2018). Air New Zealand is committed to developing a culture where a variety of thought is discussed and celebrated. For this, the business needs to understand the employee’s ethnicity. Till date around 46% of the workforce has offered data of ethnicity and the target of the company is to upsurge this to over 70% in the year 2019. Furthermore, the company has introduced a program Fit, well and safe. According to which safety of the people is all about well-being, health, and safety of the employees at Air New Zealand, consumers, public, and contractors that are exposed to any type of risk due to the operations of the company. Every year the company invites different
BUSINESS AND ENTERPRISE3 representative in order to recognize the health and safety culture of the company. In 2018, the company invited around 30 safety and health representatives in order to investigate how the company ensures a safety and health culture (Air New Zealand, 2018). Besides this, a programme titled with Behaviour Based Safety (BBS) for peer-to-peer safety conversations has been introduced in order to increase the employee’s awareness regarding reinforcing safe behavior and risk. Economic Sustainability- New Zealand is at the stage of losing value from the developing market of tourism, because of degrading natural environment, underinvestment in the infrastructure, and limited workforce, which is few cases, is resulting in adverse society feeling towards the market of tourism. Air New Zealand is playing a major part in the tourism sector of New Zealand by carrying economic wealth while improving cultural and natural resources and offering exceptional experiences for the residents of the New Zealand and visitors to New Zealand. Company has allowed the delivery and promotion of sustainable services and products across the world, and has advanced a world-class supply chain in order to assist sustainable business in New Zealand of every size (Air New Zealand,2018). According to the Shareholder theory, the duty of a company is to only think about how to increase the profits ensuing to its shareholders (Stout, 2012). On the other side, the Stakeholder theory is said to be the theory of business ethics and organizational management that majorly talks about the values and morals in handling the business, such as those linked to social contract theory, make the economy, and corporate social responsibility (Phillips, 2011). Considering the above discussion regarding Air New Zealand's corporate social responsibility and sustainability it is evident that company majorly follow the stakeholder holder theory as it is majorly involved in developing a diversified culture, involving employees in the decision making, taking positive feedback of their people, working towards reducing carbon emissions to reduce its effect on customers and employees health, and
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
BUSINESS AND ENTERPRISE4 maintaining a safe, fit and well environment for its people. Besides this, the company is involved in different types of innovation and developing technologies that could result in justifiable use of fuel and maximize the profit of the company. This reflects that the company is linked to the stakeholder theory as its strategies and goals are aligned with environmental sustainability, social sustainability, and economic sustainability. The above easy is giving priority on the discussion regarding the importance of corporate social responsibilities and how companies are adopting different strategies to attain this. From the above analysis, it could be concluded that Air New Zealand company is majorly involved in the fulfilling its corporate social responsibility by incorporating all its stakeholders into its decisions and identifying risk and issues emerging in the market due to its own operations.
BUSINESS AND ENTERPRISE5 References AirNewZealand.(2017).Sustainability.Retrievedfrom https://p-airnz.com/cms/assets/PDFs/sustainability-report-2017-v2.pdf AirNewZealand.(2018).SustainabilityReport.Retrievedfrom https://p-airnz.com/cms/assets/PDFs/Air_New_Zealand_Sustainable_Development_G oals.pdf AirNewZealand.(2019a).OurStakeholders.Retrievedfrom https://www.airnewzealand.co.nz/stakeholders AirNewZealand.(2019b).AboutAirNewZealand.Retrievedfrom https://www.airnewzealand.co.nz/about-air-new-zealand AirNewZealand.(2019c).Sustainability.Retrievedfrom https://www.airnewzealand.co.nz/sustainability Phillips, R.A. (2011).Stakeholder Theory1sted. U.K: Edward Elgar Publishing. Stout, L. A. (2012).The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public1sted. U.K: Berrett-Koehler Publishers.