Assessment of British Airways' External Influences and CSR Initiatives

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Contemporary Developments in Business and Management 1
SIM337 Contemporary Developments in Business and Management Assessment 2019

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Executive Summary
This management report includes the external influences of British Airways and also its
importance. Along with this, this report also demonstrates the Corporate social responsibility
as well as the sustainability of British Airways.There are different factors which have an
impact on British Airways that is political, social, economic, technological, environmental
and legal factors. There are a few dangers which may affect the business association which
incorporates the dimension of political strength in the nation. These monetary variables are
affecting the total interest just as speculation.These social elements adverse affecting the
general public and furthermore envelops the way of life, convictions and frame of mind may
impact on the network. This mechanical factor likewise an unfavourable effect on British
Airways as an organization need to improve to convey the subjective administrations to the
customers. British Airways need to execute proper standards and guidelines of ecological
security. BritishAirways considers the broadened lawful factors, for example, strategies
related to information security, copyright law, and segregation laws, etc.By actualizing the
CSR and sustainability, British Airways can handle with the environmental change as it helps
in tending to the carbon emanations. They have to make the interest in feasible fills, fuel
reserve funds, interest in airship and carbon store of shoppers. BritishAirways should give a
viable spotlight on the issue identified with manageability by using the material appraisal as it
aids in inspecting the supportability regions to the partners. This strategy helps in taking the
proposals from the partners of the business association just as can achieve the objectives
related to maintainability.

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Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
Task 1.........................................................................................................................................5
Primary External Influences.......................................................................................................5
Importance of each factor of PESTEL Analysis........................................................................7
Task 2.........................................................................................................................................9
Corporate Social Responsibility and Sustainability...................................................................9
The relevance of Corporate Social Responsibility and Sustainability to British Airways......10
Influence of CSR on decision making and policies.................................................................11
Effectiveness of British Airways Response.............................................................................13
Recommendations for improvement to British Airways.........................................................15
Conclusion................................................................................................................................16
References................................................................................................................................17

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Introduction
The present management report is on "British Airways," and British Airways headquarter in
the United Kingdom. The company is offering low fares with the global route network flying
from the located airports. The main aim of British Airways is to build the strength which
assists in upgrading the consumer experience as well as make the business to cost-
effectiveand enhance the level of growth of the operational activities. British Airways is a
part of International Airline Group.
Along with this, British Airways also make corporate responsibility as it is a prominent and
essential part of the business.This management report includes the overview of primary
external factors which have an impact on British Airways as well as also include the
importance of different external factors to the company.
Additionally, after selecting the theme that is Corporate Social Responsibility and
sustainabilityneed to examine the relevance of CSR and sustainability to British Airways.
Then, examine how Corporate Social Responsibility and sustainability impact within British
Airways. Apart from this, evaluation needs to be done on the effectiveness of British Airways
Response to CSR and sustainability. At last, recommendations need to offer for the areas to
improve in the response of British Airways.

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Task 1
Primary External Influences
Macro environment describes as a factor which has an impact on the operational activities of
British Airways. These factors include the policies of regulatory bodies which influence on
the industry. Company does not have control over these factors, and because of these driving
force, British Airways need to rethink the strategies and make the variations accordingly. The
external impact of British Airways can be analysed by performing the PESTEL analysis. This
examination assists in offering valuable insight into the challenges which occurs while
conducting operational activities so that British Airways can face the diversified questions.
Different factors of PESTEL analysis include:
Factor Description
Political This driving force has an impact on the profitability of British Airways.
There are some risks which may have an impact on the business
organization which includes the level of political stability in the country.
Along with this, it also includes the integrity of politicians as well as
likelihood which take part in corruption. It results in repercussions which
lead to the resignation of regulatory bodies employees. Another risk
includes low or minimum wage as may lead to higher profits and also assist
in getting higher chances for the survival of British Airways. Along with
this, a high level of taxation may demotivate the business organization that
is British Airways from increasing the level of productivity and profitability
(Liu, 2018).
Economic These factors include variation in the inflation rate, foreign exchange rate,
the interest rate along with the current stage of the economic cycle. These

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factors having an impact on the aggregate demand as well as investment.
This factor may increase the potential of British Airways or can decrease as
well. It includes some risks of British Airways include the economic system
which is essential for operational activities of British Airways to attain the
perfect competition. Additionally, the risk is the GDP rate also affect the
services of British Airways is expected to grow in the near future. Apart
from this, the interest rate also impacts an individual’s to borrow or invest
as it decides the growth of the company (Myre, 2015).
Social These factors having an adverse impact on society and also encompasses
the culture, beliefs, and attitude may impact on the community. Social
factors of British Airways are related to the safety attitude towards the
services of British Airways.The influence of these factors is essential for
the operational aspect of British Airways but also include the marketing
aspect. It includes the factor of class distribution as British Airways unable
to promote the premium product to the general public if they based on niche
marketing. Another is demographics of population as it having an impact on
the services marketed by British Airways (Fallon, 2016).
Technological This factor also an adverse impact on British Airways as a company need to
innovate to deliver the qualitative services to the consumers. The
technology has an influence on costs as British Airways having the
potential in increasing or decreasing the profits, and this may affect the
result. If these profits of business organization are reinvested in
development, then this will aid in generating maximum revenue as well as
assist in increasing sustainability for a long time. If British Airways
implement the new technology, then it helps business organization in

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gaining popularity as well as the impact on profits (Allelign, 2014).
Environmental British Airways need to implement appropriate norms and standards of
environmental protection. There are diversified factors which have an
impact on the business organization. In the business organization, climate
change assists in rendering the products which are useless. It is essential
that insurance policies, climate change as well as the law regulating
policies. British Airways covers all the norms of the environment to execute
the innovative technology in the services. British Airways generate a large
number of wastes which needs to manage by implementing the laws to
manage their environmental habits as it includes pollution or any financial
strain (Dale et al., 2016).
Legal British Airways considers the diversified legal factors such as policies
associated with data protection, copyright law, and discrimination laws and
so on. British Airways using the data protection law as well as copyright
law for their protection purpose. If a company does not adopt these laws,
then this affects the growth of the business. Laws assist in ensuring a
certain level of quality as it helps in keeping safe to the consumers. If there
is a likelihood that data or information is stolen, then British Airways may
lose the competitive edge as well as having a high chance of failure
(Apostolopoulos et al., 2016).
Importance of each factor of PESTEL Analysis
Political: This factor includes the essential role of local government along with the non-
government as these ministry bodies assist in deciding the policies for managing the
environment of business in diversified sectors. So, British Airways business organization

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needs to monitor and examine the factors which aid in increasing the level of generating
profit and growth of the business organization (Liu, 2018).
Economic: It is also an essential factor as it assists the business organization in managing the
expansion of British Airways. The main reason for this is that it will provide effective
encouragement and motivation to the business enterprise related to future investments in the
diversified area. If British Airways make the analysis of this factor, then this will help in
increasing the profit level of business organization (Myre, 2015).
Social:This driving force having an adverse impact on the growth of British Airways in a
different factor. If British Airways use this factor for analysis, then this will assist in the
examination of the strategies associated with environmental protection. This will help British
Airways in increasing the level of growth in the competitive market as well as spread out the
policies to the consumers (Fallon, 2016).
Technological: The utilization of new technology in British Airways provides the motivation
to the employees as the company is making the investment for the future. This also assists in
putting the pressure on the employees in developing the servicesas it helps in attracting more
consumers. This helps British Airways in enhancing the performance of the business in a
competitive market (Allelign, 2014).
Environmental: In British Airways, this factor plays an important role in increasing the
expansion level of the business organization. By utilizing the diversified factors, a company
can become successful by attracting more consumers as well as can gain the trust of
consumers which aid British Airways in attaining the success. This environment factor also
helps the company in starting innovative services such as management of waste material
along with the utilization of renewable energy. This will be utilized by British Airways to
increase the growth level (Dale et al., 2016).

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Legal:This factor also essential for British Airways as it helps the company to enter into the
international markets. Because this factor includes the policies associated to data protection,
time is taken to deliver the effective services, implementation of diversified laws such as
discrimination along with the copyright which helps in increasing the success of the company
in the competitive market. This factor also helps the company in managing the appropriate
level of quality and also assists in managing the reasonable price for services so that
consumers can remain safe and also can retain for a long time (Apostolopoulos et al., 2016).
All the above factors which are included in the PESTEL analysis play an essential role in
conducting the diversified operational activities of British Airways. This will assist the
business organization in attaining the aims and objectives.
Task 2
Corporate Social Responsibility and Sustainability
Corporate social responsibility helps business organization in managing their processes of
business so that they can produce the appropriate and positive impact on society.CSR
includes sustainability, ethics as well as social impact. Along with this, it helps core business
to do the operations effectively and correctly.Social responsibility in British Airways
becomes an essential part of the wealth creation process, but it requires the proper and
effective management which help the company in enhancing the competitiveness as wellas
enhance the value by creating the wealth to the society (United Nations Industrial
Development Organization, 2019).
While implementing the corporate social responsibility and sustainability, the business
organization needs to include the diversified aspects of operational activities which include
quality of the management in different perspectives include people as well as processes.
Moreover, manager of British Airways needs to examine the nature and impact on the
operational activity on society. In the diversified countries, individuals have diversified

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priorities along with the values which assist in shaping the business in an effective form.
British Airways need to do the operations in an effective and organized manner which aid in
meeting or exceeding the ethical, legal, public along with the commercial expectations
included and this impact on the business (Dudovskiy, 2016).
The relevance of Corporate Social Responsibility and Sustainability to British Airways
British Airways should work hard so that they can manage the business responsibly and
effectively as well as decrease the environmental impact and boost the level of diversity.
Company is operating the Aircraft with the sensitivity so that they can manage the noise as
well as air quality. Along with this, they are engaging with the community or society with
these issues. To deal with the climate change, British Airways are investing their time, energy
and also a cost in the sustainable fuel solutions, decrease fuelconsumption, modernising the
fleet, provide the support to regulation globally, reduce the waste along with this it also
increases the recycling (Dudovskiy, 2016).
British Airways assist in exploring the ways of fostering sustainable operations and also a
corporate responsibility. In the year 2017, British Airways make the announcement for the
partnership with the renewable fuels business organization that is Velocys as well as need to
develop or improve a system which assists in converting the household the waste into jet fuel
which assists in enhancing the sustainability. The development plan related to the fleet is
designed effectively as it aids in decreasing the emissions of carbon along with the noise
level of Aircraft with the acquisition or merger of new generation aircraft. The airline of
British Airways is also passionately associated with community development or improvement
in global locations (British Airways, 2012).
British Airways has diversified social responsibilities towards the different stakeholders,
consumers, local community and environment. British Airways need to adopt the
considerations whether it is ethical and legal which aid in meeting the responsibilities which

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are implemented to the operational activities.British Airways continuously explore the
diversified ways which aid in fostering sustainable operations along with corporate
responsibility. To the airline fleet of British Airways, there are new aircraft models included
as it assists in improving fuel efficiency. So, it assists in decreasing the environmental impact
on the operational activities of British Airways. British Airways assist in running the
operations safe and comfortable for the consumers and also invest in the aircraft and
facilities. Along with this, they also provide additional help to those individuals who need it
(British Airways, 2012).
Apart from this, British Airways provide the encouragement and motivation to the physical
and mental wellbeing, create or build the inclusive culture along with the developing
initiatives which assist in creating the diverse workforce. British Airways also started the
Community Investment programme, and it provides assistance to more than 600000
individualsin the UK. They also provided support in terms of funding to the charities at the
time of humanitarian crisis (Baker, 2019).
The CSR programme of British Airways provides effective focuses on diversified areas
which include climate action, noise along with the air quality, as well as resource
management. Moreover, the corporate responsibility related to sustainability of British
Airways based on the risk management criteria at the time they measure the influence of
environmental risks of business operations which include the impact of risk, probability,
timeframe, and velocity.
Influence of CSR on decision making and policies
The sustainability along with the CSR has an influence on the policies and also decision
making of British Airways. British Airways has investigated, analysed as well as prioritising
the diversified challenges, risks along with the influence related to sustainability. Company is
operating in a global sector which provides unique value, and it generates for the consumers

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and society. A business organization needs to make the balance in the economic value as it
against the environmental influence of aviation which has an aim of improving or developing
the sustainability of sector (Russell Publishing Limited, 2019).
There are diversified challenges which British Airways is facing while implementing CSR
activities and this may impact on the decision making and policies of British Airways. It
includes in continuing the economic uncertainty in the corporate responsibility as it combines
with the record unemployment in the different key markets. There is a lack of concerted
global agreement on climate change and also a lack of concerted global agreementon the
climatic change. Moreover, they are facing competitive pressure from the low-cost carriers as
well as volatility in the fuel markets. This also helps in enhancing the level of competition
among different airlines on the long routes (Russell Publishing Limited, 2019).
While making the decisions to implement the CSR, British Airways gathers the appropriate
information and also take the suggestions from the stakeholders. They need to make an
effective plan and take the time for the successful decision. They need to set the clear aim
which aids in attaining the best outcomes. At the time of implementing the CSR provides the
opportunity in building sustainability. The CSR policy of British Airways assists in
decreasing the carbon emissions as it decreases the influence of operations in terms of carbon
emissions along with the waste. The procedures for the aircraft assist in cutting the emissions
as well as aid in managing the air quality during operation (British Airways, 2016).
Another factor is noise as it is also an effective aspect on operations of the airport and British
Airways provide the opportunity to look at the noise which is generated by the Airport as
well as include the appropriate features which help in decreasing the noise. This decision is
favourable for British Airways as it helps in attracting a large number of consumers.
Based on the above challenges, there are some risks which describe the impact of CSR on
decision making of British Airways in terms of economic, social as well as environmental.