The Impact of Organizational Culture on CSR

This assignment examines the relationship between organizational culture and corporate social responsibility (CSR) using Virgin Atlantic as a case study. It requires you to analyze how Virgin Atlantic's stated values and culture impact their CSR initiatives, drawing upon provided resources including the company's sustainability report and career webpage. You should consider aspects like employee engagement, ethical practices, environmental sustainability, and community involvement.

Running head: CULTURAL ANALYSIS OF VIRGIN ATLANTIC
CULTURAL ANALYSIS OF VIRGIN ATLANTIC
Name of the Student
Name of the University
Authors Note

1CULTURAL ANALYSIS OF VIRGIN ATLANTIC
Executive Summary
This report focuses on the importance of organizational culture within the company.
In the light of given company, Virgin Atlantic, which is an airline company. The culture of
the company is analyzed through its current organizational practices. The report elaborates on
the corporate social responsibility (CSR) practices that are applied within the culture of the
company. In the era of globalization, CSR practice enhances the corporate culture and retains
its potential customers. Sustainability is important to increase the productivity and efficiency
of the firm in the long-run. Furthermore the CSR measures applied by Virgin Atlantic are
emphasized in the report. This includes application of sustainable design and systems,
efficient carbon reduction emissions and aircraft wastes.

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Table of Contents
Introduction:...............................................................................................................................3
About the Organization:.........................................................................................................3
Virgin’s Atlantic Organizational Practice:.................................................................................4
Argument for chosen framework:..............................................................................................5
Corporate Social Responsibility (CSR) Practices:.....................................................................6
CSR Practices within Organizational Culture:...........................................................................8
Recommendation:....................................................................................................................12
Conclusion:..............................................................................................................................12
References:...............................................................................................................................14

3CULTURAL ANALYSIS OF VIRGIN ATLANTIC
Introduction:
About the Organization:
Organizational culture plays a crucial role in showcasing the company’s effectiveness,
especially the large scale organization. Virgin Atlantic group is situated in London and is
managed and owned by Sir Richard Branson. Majority of shares that is 51% of the total
shares of the company is owned by Sir Branson and other 49% of the shares are owned by
Singapore Airlines (Virginatlantic.com, 2018). This airline company headquarter is based in
West Sussex and Crawley in England. Virgin Atlantic highest business profile is now being
boosted by their huge stakes in their airlines. The company has an international undertaking
exceeding beyond more than thirty destinations. Moreover, the organization has expanded its
business in various other industries. This includes financial services, railways and from
cosmetics to soft drinks.
Virgin was initially founded in the early 1970’s as a business of mail order recording
company and later went on becoming a retailing private and music publishing company. Back
in 1980, the founder of Virgin Atlantic Sir Branson was better known for his Virgin Records,
a legendary label, which signed famous bands like rolling stones. During 1980’s virgin
expanded into Virgin Atlantic Airways in 1983. Virgin Atlantic paramount goal is to ensure
that clients are offered quality level of services by availing different classes of travel.
Gradually Virgin Atlantic opened up their business operation in places including Boston,
Miami, Tokyo, Orlando and Los Angeles. Meanwhile, Virgin Atlantic also struggled for
obtaining authorization at Heathrow airport. After obtaining the license the fleet expansion of
the airlines was boosted. The airlines company offers major three products: upper class,
economy and premium economy.

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Virgin’s Atlantic Organizational Practice:
The report focuses on the organizational culture practices that are followed by the
Virgin Atlantic. Virgin Atlantic is managing corporate responsibility within the organization
by practicing sustainability development. The theoretical framework chosen for
organizational culture practice is to be ascertained. Initially, the organization started with a
small team and only one 747 that would fly at just one route. Now Virgin Atlantic has
expanded its global network and is employing thousands of deserving people all over the
world. Furthermore, the significance of cultural consciousness to the organization is
important in recent times to achieve maximum growth (Martinez et al., 2015). The
organization practices corporate social responsibility and encourage their employees to be
involved whenever possible. The employees are inspired to donate pennies from their
monthly salary to the company’s charity campaigns. The staffs are motivated to take part in
fantastic adventures by the company (Hou et al., 2016). This also helps in improving the
living conditions of the people in the places they fly. Virgin Atlantic has improved the brand
their brand value through efficient management strategy. This airline industry aims in
improving their organizational performance in terms of profitability and growth. This
approach aims in improving the working condition, which benefits the employees but also the
firm (Hogan & Coote, 2014).
Virgin Atlantic is UK’s second largest long haul airlines resent in UK. It is also the
third largest European carrier present all over the Atlantic. To encourage loyalty within the
organizational employees, Virgin Atlantic also facilitates flying club membership, where the
present members is provided free miles that can also get exchanged for rewards like free
flights and many more. Virgin Atlantic advertises via travel agents and offers trade incentives

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to its people besides organizing educational or social events and trips. They have won several
awards for its claim and services by setting new standards of services and pioneering range of
innovation. The sustainability practice followed by the organization is meeting the need of
the present without compromising the ability of future generations to meet their needs
(Hartnell et al., 2016). The airline sustainability team is trying very hard in reducing the
carbon emission of the company.
Argument for chosen framework:
The best framework chosen for the analysis of an organizational culture is to identify
the organizational practices. Organizational practices are the elements of core culture that
keeps the culture alive (Bortolotti, Boscari & Danese, 2015). The practices of an organization
can either be internal that affects relationships, accomplishments and relationships of
employees. The external practices involve the involvement of organization with outsiders that
is the customers and the provided services. Organizational issues are unable to clarify the
organization cultural practices. Being an airline industry, the organization workplace
problems intensify at rapid rate. In most cases, the major cause related to these problems is
employee’s issues or team problems. The major issues are related to uncertainty as the
reservation is often scheduled to change. In the recent times, organization adapts itself to be
more effective in competitive and dynamic environment. The organizational culture and
ethical climate can only be identified through organizational practices (O'Neill, Beauvais &
Scholl, 2016). Business practices followed in the organization helps in analyzing the culture
of the organization.
The key element required for a successful organization is having a culture that is
strongly based on set of beliefs that is supported by an efficient strategy (Chang & Lin,
2015). The ethical issues, operating efficiency, social responsibility and team interests are

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also ascertained by knowing the business practices of an organization. The corporate social
responsibility (CSR) practices generally involve the effort made by the organization to
improve the quality of standards of the society (Veríssimo & Lacerda, 2015). On the other
hand, organizational issues are unable to analyze the corporate culture of the company
properly. The effort ranges from implementing environmentally friendly policies within the
organization to donating cash to nonprofits. This practice improves the firm’s public image
and increases its goodwill (Stokes, Baker & Lichy 2016). This practice helps in maintaining
smooth relationship with the customers. Virgin Atlantic culture is known to be a worldwide
phenomenon. The organization follows a minimum formal culture as it helps the staff to be
more fun-loving and committed for the company’s well beings. Corporate social
responsibility practiced by Virgin Atlantic is the vital component for its success in this
modern business world. Effective corporate social responsibility boosts the morale of people
by improving their business operations. In addition to this, it cut the operating costs and helps
in staying the firm competitive with its corporate peers. This helps in refining improvements
and consistently measures the progress (Wang & Rafiq, 2014).
Corporate Social Responsibility (CSR) Practices:
In the current scenario, corporate social responsibility (CSR) is a prominent business
ideology practiced in organization. It heightens the expectations of organization regarding
environmental and social standards (Valmohammadi & Roshanzamir, 2015). This approach
helps in building awareness about the organizational culture that further is refining their plans
and strategies. CSR practices measures the organizational culture and evaluating the results at
deeper level (O’Reilly III et al., 2014). It is a responsible corporate practice, which provides
management efficiency. There are three dimensions of CSR includes economic, social and
environmental practices that is described as follows:

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Economic aspects of CSR: This consists of better understandings of the economic impacts
affecting the business operations. This generally involves the effect on the organizational
stakeholders. Efficient economic performance develops the long-term operations and invests
in well-being and development of the employees (Belias & Koustelios, 2014). It helps in
maintaining support and trust of the local communities, where the business operates.
Social aspects of CSR: this includes the social effect that a company has on its people, the
customers and the supply chain of the company. The responsibility of CSR is towards the
customers, employees and the community. A direct positive effect on the company’s profit is
gained due to efficient responsibility of CSR towards its customers (Usman & Amran, 2015).
These responsibilities include the durability and safety of services and products. This also
includes providing full and unambiguous and complete information to their shareholders. The
company involves practicing diversity and equality in the workforce (Zhu & Zhang, 2015). A
socially responsible company provides equal opportunities to all its employees irrespective of
age, gender and race. The major responsibility of CSR towards the community involves
vocational training and sponsoring local and cultural events (Ax, C & Greve, 2017). This also
includes recruiting socially excluded individuals, donation to charitable organizations and
partnership with communities.
Environmental aspects of CSR: sustainable development and environmental concern is the
key element required for corporate social responsibility. The environmental impacts affecting
the organization includes overuse of natural and non-renewable energy resource are measured
(Brettel, Chomik & Flatten, 2015). By using less streamling and material process creates
fewer amounts of wastes that lower the operational costs significantly. Establishment of
compliance assistance programs further helps to efficiently understand the requirements
needed for environmental requirement of the business (Lee & Kim, 2014).

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Sustainability means being efficient and a responsible business (Huhtala et al.,
2015). It helps to boost the employee engagement within the organization due to good public
image as well as positive media coverage. The productivity and efficiency rate of the firm
increases, if the employees are happy. When the organization improves it corporate
communities through volunteer grants, gifts and rewards, it helps in retaining and attracting
the most valuable and engaged employees (Pilch & Turska, 2015). Productive and positive
work environment is created within the organization by instilling the culture of corporate
social responsibility. The employees feel more productive and engaged to work in positive
better environment (Tong et al., 2015).
The company incorporates philanthropic programs; this helps the employees to be
more creative and productive for the organization and fosters innovation. Moreover, the
corporate and social responsibility practiced by the firm helps in attracting and retaining the
potential investors of the firm (Fernando & Lawrence, 2014). Investors are attracted to the
organization practicing CSR activities as it demonstrates the level of commitment of the firm
for the society besides the employee and customers. When the business organization donate
money to the nonprofit encourages it employees for volunteering, it displays that the
company does not care for their profits (Denison, Nieminen & Kotrba, 2014).
CSR Practices within Organizational Culture:
The sustainability program practiced by the organization is known as ‘Change is in
the Air’. As the organization firmly believes that sustainability change is needed to make
things better. This includes the organization supply chain, environment, community
investment, partnership and non-profit program. The firm focuses on their biggest social and
environmental priorities and the things important for their people and customers (Yusoff, W.
F. W. & Adamu, 2016). The environmental program for the company involves three specific

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airline work streams that are aircraft waste, noise and fuel (Lee, Herold & Yu, 2016).
Through their supply chain program, Virgin Atlantic focuses on the improvement of
environmental, people and animal welfare standards for the products and services it designs.
Aircraft usually remains the major part of the organization footprints as it is responsible for
over 69% of combined organizational emissions. Supply chain of the firm is responsible for
more than 31% of emissions due to immense electricity usage in their ground operations
(Story & Neves, 2015). Virgin Atlantic focuses on reducing the aircraft emissions by using
more efficient and quieter aircrafts. The company involves innovation of new fuels and
reducing their waste materials. The company’s recent Sustainable Design and Buying
program is working to improve the social and environmental standards of the services and
products provided by them.
Carbon reductions: virgin Atlantic reveals efficient carbon savings in the last few
years and is a leading sustainable industry in the airlines segment. Since the last nine years,
Virgin Atlantic has reduced its total aircraft carbon emissions by 22%. This is reflected by
reduction in two vital measures which are CO2 per Revenue Tonne Kilometer and per
passenger km. these carbon efficiencies measures shows that Virgin Atlantic is already ahead
of the IATA industry target for 2020 (Vaflightstore.com, 2018). Virgin Atlantic is more set to
commit a lower carbon fleet and 12 Airbus is to enter in the airline services since 2019. By
the year 2021, Virgin Atlantic will introduce the youngest fleets for long haul operators. As
advanced fuel efficient and quieter aircraft would replace the older engine aircrafts by
delivering 30% saving of carbons on every flight. The airlines has also initiated its ground-
breaking partnership with the clean tech company Lanza Tech. the partnership involves in
creating low carbon fuel through recycling of carbon in various waste industrial gases (Maas
& Reniers, 2014). In 2016, the program achieved its milestone by successfully generating

10CULTURAL ANALYSIS OF VIRGIN ATLANTIC
their first important segment of ethanol-to-jet fuel. Lanza Tech was even awarded grant from
Energy Department to design the jet fuel plant.
Reducing aircraft wastes: several rules and regulation has been imposed by the
organization to prevent the long haul airlines to recycle any such wastes that is connected
with meat or dairy products. Virgin Atlantic mostly focuses on all such aspects where
changes can be made like providing high value recyclables. During the year 2016, over
millions of amenity kits were recycled and around 55% new transformed and reassembled
into new amenity kits (Virginatlantic.com, 2018). The sponges distracted from headsets
would be sooner used to surface equestrian centre, where disused plastics on used on board
are reassembled into benches. For reducing the cabin wastes recyclable products like plastic
cups, newspapers, cans are used that is further recycled. The recyclable wastes are then sent
to ‘energy from waste’ facilities to generate energy. Moreover, the recyclable things are
provided to the customers to reduce wastes this includes cleaners, amenity kits, blankets and
batteries.
Sustainable cabin services: Virgin Atlantic uses more innovative and efficient
products design that reduced the overall amount of cabin wastes to 453 tones that is overall
reduction by 43% recently (Vaflightstore.com, 2018). The company invests in more reusable
other than using disposable products.
Noise management strategies: this involves carrying on implementing procedures for
reducing the excess noise generated from the aircrafts (Osagie et al., 2016). Mitigating noise
for the local communities and further allowing appropriate developments to take place within
the organization. During the night flight operations efficient noise abatement procedures are
adopted. Virgin Atlantic also focuses on ‘On Time Performance’ that aims in minimizing late
running of flight departures that affect the local communities during night.

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Sustainable design and buying: Virgin Atlantic aims in designing all such products
that minimizes the damage to the environment besides creating a favorable impact on the
society. The suppliers of the organization are initially requested to sign the company’s
comprehensive Responsible Supplier Policy that covers all the issues related to animal,
people and environment. They are also Sedex members to promote favorable labor practices
in the company’s supply chain (Virginatlantic.com, 2018). In the year 2013, the company
was the first airline to partner with SRA for improving their sustainability standards for 12
million meals to be served onboard each year that has made greater profits over the years.
Virgin Atlantic does not encourage in carrying commodities or live animals without a
valid export and import. The airlines also refuse to carry commodities like ivory, hunting
trophies and several fun products. The company also haves ethical carriage of cargo policy,
which covers the aircraft carry as freight.
Non-profit partnerships: Virgin Atlantic has maintained its mutual partnership with
WE, a non-profit organization for children. In 2016, the customers donated more than half of
million pounds on their board flights (Vaflightstore.com, 2018). The amount donated by
Virgin Atlantic is used to support village in five different locations all around the world to
overcome the cause of poverty by facilities like clean water, healthcare and schools. Old
surplus blankets are donated to the charities for homeless people and pet rescue shelters.
Sustainable in-flight food: Virgin Atlantic partners with the leading Sustainable
Resource Association (SRA) to ensure that the millions of meals provided to the customers
on board every year meet the key principles that is fairer working conditions, adequate pay
for workers and suppliers. This meal provided to the customers is sustainably sourced
seafood and fish, humanely farmed dairy and meat products. This also includes very low or
reduced amount of deforestation for the risks food. Recently Gate Gourment UK serving

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more than 50% of Virgin Atlantic flights complies fully with the required sustainable
standards (Vaflightstore.com, 2018). This standards introduced by Virgin Atlantic resulted in
positive Outcome as Gate Gourment now provides sustainable seafood’s and fish as a
standard to the other UK airline consumers as well. Virgin Atlantic mostly focuses on
removing all such foods that contributes to the deforestation. This includes beef, palm oil and
soy from their menu. This entire menu obtained from Caribbean currently uses rapeseeds oil
to save tones of palm oil each year
Recommendation:
The CSR policies are required to be considered as the core and inseparable
component for the overall product and service offerings. True and fair adoption of CSR
generally requires serious reformulation of decision-making structures and corporate
purposes. Situations like ‘ethical blowback’ should be avoided by using sustainable supply
and resilience. Virgin Atlantic basic CSR commitments and principles should be considered
as the non-negotiable parameters related to the business operations. The CSR activities
should not just involves the specific financial performances requirements. An efficient CSR
strategy within the organization lead to efficient engaged employees, lower capital
constraints, better access to talent and better reputation. In the long-run the organization’s
culture is transformed to create positive impact in future. Furthermore, the costs related to
corporate social responsibility activities should not be expected to identify the traceable
financial gains.
Conclusion:
Therefore, it can be concluded that the organizational culture of the company involves
beliefs and values set within the group to achieve common goals of the company that relates
to the culture. Virgin Atlantic’s founder Richard Branson incorporated corporate social

13CULTURAL ANALYSIS OF VIRGIN ATLANTIC
responsibility to be practiced within the organization. Virgin Atlantic organizational culture is
ascertained to be quiet high in uncertainty avoidance as the company attempts to adopt
innovative approach for dealing with the various aspects of the airlines industry. Practicing
CSR has led a significant impact on the overall organizational culture. This has increased
employees motivation level by encouraging feedback from all level of the employees. The
CSR processes increases the organizational awareness and impact the goodwill of the
organization both at local and global level. The CSR efforts when included in the
organizational culture and strategic plans help in achieving the mission and vision of the
company more easily. The CSR activities used by the company tackle material issues by
mitigating risks and thus strengthening community’s engagement.

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