British Airways CSR: Carbon Footprint Analysis & PM302 Project Report

This report analyzes British Airways' implementation of Corporate Social Responsibility (CSR) principles, focusing on carbon footprint reduction. It examines CSR's role in addressing carbon emissions within the airline industry, supported by a literature review and data analysis. The study investigates British Airways' initiatives in raising awareness and providing carbon offsetting services to passengers. The research includes quantitative data analysis to assess the practical application of CSR elements. Ultimately, the report concludes that increasing environmental concerns drive the airline industry, including British Airways, to enhance CSR implementation, particularly in managing carbon footprint.

Running head: CORPORATE SOCIAL RESPONSIBILITY
British Airways utilize the principle of CSR in terms of its Carbon Footprint
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Name of the Student:
Name of the University:

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Abstract
The thesis paper is based on analyzing the corporate social responsibility (CSR) program
implementation in the airline industry, British Airways (BA). The research is being conducted
with assumption that the CSR theory is valid. The point of this paper is to examine the CSR
aspects to address carbon footprint and reduction of carbon emissions. The thesis work id
divided in two parts such as theory which is analyzed in the literature review section and
practical analysis of CSR in data analysis section. In the hypothesis part, the researcher will gain
a considerate of the CSR along with using carbon offsetting concepts in the research study. The
data analysis part is included quantitative data analysis and also deal with the practical
application of the CSR elements argued in the literature study. Moreover, British Airways raises
consciousness and makes high quality carbon offsetting service to its passengers by means of the
principles of CSR which are conversed in this thesis paper. As a result, it is concluded that
because of increase in environmental issues, the airline is facing an increase in pressure to
implement CSR aspects. Apart from this, environmental and social concerns are also increasing,
while this study is focused on carbon footprint.
Keywords: Corporate social responsibility, carbon footprint, carbon offsetting, airline industry.

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Table of Contents
1. Introduction..................................................................................................................................4
1.1 Background of the research study..........................................................................................4
1.1.1 Background of the organization......................................................................................4
1.2 Aim and objectives of the study............................................................................................5
1.3 Research questions.................................................................................................................5
1.4 Research hypothesis...............................................................................................................6
1.5 Problem statement.................................................................................................................6
1.6 Rationale of the study............................................................................................................6
1.7 Purpose of this study..............................................................................................................7
2. Literature Review........................................................................................................................8
2.1 Corporate social responsibility..............................................................................................8
2.2 CSR principles in the airline industry addresses carbon footprint........................................8
2.3 CSR aspects in the airline industry......................................................................................10
2.4 Summary..............................................................................................................................12
3. Research Methodology..............................................................................................................14
3.1 Introduction..........................................................................................................................14
3.2 Research design and approach.............................................................................................14
3.2.1 Research design............................................................................................................14
3.1.2 Research approach........................................................................................................15
3.3 Data collection and analysis................................................................................................15
3.3.1 Data collection methods...............................................................................................15
3.3.2 Data analysis method....................................................................................................16
3.4 Sample method....................................................................................................................17

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3.5 Ethical considerations..........................................................................................................17
3.6 Research limitations.............................................................................................................18
3.7 Research Timeline...............................................................................................................19
3.8 Summary..............................................................................................................................20
4. Data Analysis.............................................................................................................................21
4.1 Introduction..........................................................................................................................21
4.2 Quantitative analysis............................................................................................................21
4.3 Regression analysis..............................................................................................................31
4.4 Summary..............................................................................................................................34
5. Discussion..................................................................................................................................35
6. Conclusion and Recommendations............................................................................................38
6.1 Conclusion...........................................................................................................................38
6.2 Linking with the research objectives...................................................................................38
6.2 Recommendations................................................................................................................39
7. Critical Evaluation.....................................................................................................................41
References......................................................................................................................................43

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1. Introduction
1.1 Background of the research study
The airline industry is part of the service sector which acts a key role in tourism as well
as transportation industry. In the current decades, the airline industry is being working into the
competitive environment by means of corporate social responsibility (CSR). McLachlan, James
and Hampson (2018) stated that CSR is contributed towards long term value of the airline
industry. In addition to this, effect of CSR on the loyalty of customers and identification of the
areas required importance based on the involvement of the organizations plus their support.
According to Hahn (2018), the airline industry is established consideration from the public in
regards to the CSR challenges due to role of this industry in environmental, expansion along with
social impacts. This study is based on determining the critical strategies of CSR in the airline
industry regards to positive as well as negative causes.
The chosen airline industry for this research study is British Airways (BA) as it can
include CSR programs which are comprehensive as well as communicated in the market. This
airline industry is selected with proper representation of global market. This thesis work is being
carried out with point of sight that CSR as well as ecological issues are beneficial for the airlines
to be focused on CSR along with sustainability problems (Cuiand Li 2016). Throughout this
study, it is focused on passenger airlines as they are affected by the environmental and
sustainable issues.

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1.1.1 Background of the organization
British Airways Plc. is a British airline company which was formed in the year 1974. The
Headquarter of BA is in Waterside, Harmondsworth, United Kingdom.The fleet size of the
airline company is 276 with flying over 183 destinations. The parent company of BA is
International Airlines Group. The revenue of the airline company is approximately £11,443
million in the year 2016.
1.2 Aim and objectives of the study
The aim of this research study is to evaluate the extent to which British Airways (BA)
utilise the principle of Corporate Social Responsibility (CSR) in terms of its Carbon Footprint.
Following are the objectives of this particular research study such as:
 To review principals of CSR and document how the air transport industry, are addressing
their carbon footprint
 To determine issues of CSR documented in public domain
 To determine methodological approach for addressing how airlines have been addressing
their carbon footprint using CSR
 To determine extent to which they adopt the content to CSR to carbon footprint
 To provide recommendations that can be adopted by British airways and other airlines
1.3 Research questions
Following are the research questions which are adopted based on identified research
questions such as:
1. How responsible is British Airways both in raising awareness and making high quality
carbon offsetting service to its passengers using the principles of CSR?

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2. How much knowledge do BA passengers have about BA awareness to carbon offsetting?
1.4 Research hypothesis
The research hypothesis for this particular study is as stated below such as:
H0: British Airways is responsible for making carbon offsetting programmes to its
passengers using the principles of CSR by raising awareness
H1: BA passengers are not aware of BA carbon offsetting awareness and responsibility
1.5 Problem statement
CSR is about the way the companies are managing the business operations. In addition to
this, the main problem of this study related to CSR is how the company is making profits in the
competitive environment. The study is focused on reduction of carbon footprint by means of
CSR programs and practices.
1.6 Rationale of the study
This research topic is selected for this study because of increase in significance of the
CSR in the trade, especially in the airline industry. The CSR programs in the airline industry are
an attractive topic as it is highly competitive plus pollutive environment of the selected industry.
The competitive marketplace of airline industry is caused by means of cost understanding of the
customers and their wish to achieve good services at proper prices. There is a saturated
environment of supply market of the airline industry because of various operators. In order to
become a competitor in the marketplace, the company should be cost effective while providing
greatest customer services. Because of its higher operating cost, it provides a high influence on
British Airways.

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1.7 Purpose of this study
The purpose of this particular study is to offer a general idea of the CSR with respect to
the airline industry whether it is useful to be considered and uncover degree to which the chosen
airline industry are being implementing CSR programs. This study also provides overlook of
CSR in the airline industry. In the airline industry, the stakeholders are important and actions are
to be taken with regards to CSR issues and how it is being incorporated with the business
strategies. In order to take out the literature study, qualitative investigation method is used using
peer review journal articles related to CSR.

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2. Literature Review
2.1 Corporate social responsibility
Liand Cui (2017) stated that CSR is a theory that the business organization is considered
as social entity and it has tasks towards society at large with comparable to the governments as
well as individuals. Upadhaya et al. (2018) indicated that the concept of CSR is important for the
business organisation as it has moral and ethical obligations with normal roles to bring into
profits as well as fulfill with the laws. In the past decades, CSR is the key importance subject
based on three topic areas such as implementation, economical and social relations of the CSR.
According to Theodoulidis et al. (2017), CSR is divided in three aspects such as social concerns,
environmental considerations as well as economical mergers. Chang et al. (2015) discussed that
CSR is continued commitment by means of the business to put in towards economical growth
while improving excellence of life. Lee, Kimand Ham (2018) stated that CSR examines how the
business can integrate interests of stakeholders with the social values to consolidate relationship
between the organization as well as culture.
2.2 CSR principles in the airline industry addresses carbon footprint
Although various studies are carried out in the airline industry, it is focused on the CSR
activities of the industry. Paskova and Zelenka (2018) presented a review of the tourism as well
as CSR which are compared with the scholastic research on the CSR in the airline sector. The
reasons behind this are included contributions of industry to the climatic changes and fact that
there are various characteristics of the airline such as: intense regulations, higher capital costs,
plus higher entry barriers. The study of this research is based on CSR in the airline industry
which is mainly focused on the cost assessment and CSR motivations.

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CSR principles are applicable in the airline industry, BA as it is promoted different types
of positive behaviors. There is a concern of climatic changes and problematic into the airline
industry due to emission of carbon as well as greenhouse gases emissions at higher altitude and
regulators are to set reduction of emissions which can target the airline industry. Lin, Yu and
Chang (2018) discussed that fuel is a greatest cost for British Airways and there is also reduction
of fuel consumed involved with reduction of the emission of carbon. Gholami et al. (2017)
argued that British Airways is eager to reduce emissions of greenhouse gases. Due to emerging
CSR practices in the airline industry, they become more environmental friendly.
According to Vollero et al. (2019), the worldwide flights are producing 781 million
tonnes of carbon dioxide in the year 2015. Aviation industry is accountable for around 12% of
emissions of carbon dioxide as of entire transport sources. The jet aircraft in the services are over
approximately 80% fuel efficient per seat km as compared to earlier jet aircraft of 1950s.
Ringhamand Miles (2018) analyzed that 80% of the aviation flights are being emitted emissions
of carbon dioxide by the flights over 1500 kms for which it is meant for the alternatives of the
transportation. The aim of CSR aspects is to highlight efforts for reduction of environmental
carbon footprint of the operations of BA. The industry is required to design environmental
friendly innovations for their aircrafts. Leslie (2016) argued that the airline industry is required
to deliver solutions which can enable the customers to improve management of the
environmental impacts on the business operations. Calero et al. (2019) discussed that reduction
of the carbon footprint help the airline industry to meet with its sustainability goals. BA targets
cut into the carbon emissions so that they can meet with its organizational objectives.
Environmental problems into the airline industry are encompassed of reduction of the pollution
as well as waste forms, with focused on the carbon footprint. Paskova and Zelenka (2018)

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discussed that the BA airline industry is faster growing industry. Due to low figures, steady
increase into the public concerns for the environmental as well as climatic changes, BA caused a
negative attention.
2.3 CSR aspects in the airline industry
British Airways plays a key role into the airline sector therefore it encouraged the
industry to live higher expectations focused on CSR practices. The industry is induced not only
ecological influences, but it is also provided with economical as well as societal effects. Li and
Cui (2017) pointed that the airline industry is apprehensive with the environmental problems as
compared to economical along with social implications. Theodoulidis et al. (2017) reviewed
association between airline and CSR, and stated that presentation of CSR will improve the firm’s
productivity along with business value of the firms. This literature study is discussed on aviation
related technological changes such as included design of new plan, emissions standards for the
plane’s engines as well as chosen of alternatives fuels. These are considered as major sources for
technological related reduction of carbon footprint in BA.
BA is produced emissions into the flight, maintenance along with airport operations and
wastage in on-board catering plus logistics operations. Vollero et al. (2019) stated that most of
the logistics processes are being influenced as well as controlled by the exterior suppliers and
partners, means in order to lessen wastage through its operations. The airline industry should
collaborate with the business partners in addition to suppliers. BA is agreed to work with other
airline industries for cutting the emissions to 50% by the year 2050. The company has improved
its efficiency based on emissions per flown passengers. There is a decrease in emissions per
passenger leads to increase in number of airline customers. Ringham and Miles (2018) argued

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that it raised concerns about the airline industry to become more environmental responsible plus
reached the targets.
British Airways is using carbon offsetting to reduce the emissions of carbon di-oxide. In
option to this carbon offsetting scheme, it is useful to contribute to the environmental projects. It
raises awareness among the customers plus improves over the corporate images. The
environmental projects of British Airways are supported throughout carbon offsetting schemes
so that it can provide benefit to reduce the environment pollution and also help in improving the
economics. This particular scheme is involved to produce green coal from the agricultural
wastages and there is distribution of biogas. The customers should also require awareness of
CSR issues and discover new focused areas in the airline industry. Into the flight magazines as
well as movies, the airline should include information related to CSR issues for raising customer
awareness. At British Airways, it is hard to manage the business and reduce the environmental
impact caused due to carbon footprint. In order to tackle the climatic changes in BA, there is an
investment into sustainable fuel solutions, flying efficient to reduce consumption of fuel, support
the global regulations, modern the fleet and reduce wastage (McLachlan, Jamesand Hampson
2018). Following are the CSR strategies which are taken into actions to reduce carbon footprint:
Tackle the climatic changes: Climate changes are the environmental challenge which is
faced by the airline industry, BA and therefore they have find solutions for addressing carbon
emissions. BA is partner with Velocys for designing sequence of waste plants which can
exchange the household wastages into renewable jet fuel to power the fleet. Therefore, the
household wastes and landfill will convert in clear burning sustainable fuels (Paskova and
Zelenka 2018). Since the year 2014, more than 360,000 tonnes of carbon emissions are reduced
by optimization of flight routes and reducing weight of the aircraft.