Corporate Governance, Internationalization & Emirates Airline Case

This case study explores the effect of corporate governance on the internationalization, globalization, and overall performance of Emirates Airline. It begins with an acknowledgement and abstract, highlighting the importance of corporate governance in modern companies. The study reviews secondary data from books and journals to build a literature review and conducts primary research through questionnaires distributed to 20 employees across different management levels. The research aims to understand the meaning and significance of corporate governance and corporate social responsibility (CSR) in multinational companies, examine the implications of corporate governance on market performance, identify how corporate governance promotes globalization and internationalization, and recommend ways to boost Emirates Airlines' market performance using CSR and corporate governance concepts. The findings indicate that corporate governance significantly impacts firms by curbing corruption and facilitating strategic partnerships. The study delves into Emirates Airline's background, CSR activities, and its commitment to customer satisfaction, employee support, and environmental protection. It further analyzes demographic data and employee responses to understand the implications of corporate governance on market performance and its role in promoting globalization and internationalization, concluding with recommendations for improving corporate governance practices to enhance market performance.

`The effect of corporate governance on internationalization,
globalization and the performance of the firm: A case study on Emirates
airline

ACKNOWLEDGEMENT
I am thankful to all those friends and relatives who give me full guidance and support in
completing my dissertation on corporate governance they always encouraged for completing
dissertation in best possible way. In addition to this I also appreciate my mentor for giving me
full guidance in preparing a dissertation. It was his support and experience due to which I was in
position to complete dissertation in a right manner. Finally, I want to accept that everyone give
lots of efforts in helping me in completing my dissertation

ABSTRACT
Corporate governance is a word on which today most of the companies are giving due
importance. In order to understand importance of corporate governance in context of business
firms a dissertation in done. In this regard, Emirate an airline company is taken in the
dissertation. For preparing a dissertation on corporate governance lots of secondary data were
reviewed. This information’s were taken from books and journals etc. On the basis of evaluation
of theories literature review is prepared. After that sample is taken and employees of Emirate
were taken in sample. In research sample of 20 employees were taken that comes in top, middle
and lower level of management. In research primary research was conducted under which
questionnaire was distributed among the respondents. In questionnaire an attempt is made to
understand various aspects of the corporate governance. After collection of entire data analysis
of same is done and reasons behind respondents specific response is identified. These reasons are
mentioned in the analysis section of each theme. In research it has been find out that corporate
governance has a significant importance for the firms. By using corporate governance firms can
curb corruption in an organization. Moreover, they can easily enter in to strategic partnership
with any other company in foreign market. Thus, corporate governance is giving lots of benefits
to the firms and they must try to improve their corporate governance system time to time.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Overview................................................................................................................................1
1.2 Research aims and objectives................................................................................................4
1.3 Rational of research...............................................................................................................4
1.4 Significance of research.........................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1 Introduction............................................................................................................................7
2.2 Meaning of corporate governance.........................................................................................7
2.4 Benefits of corporate governance..........................................................................................8
2.5 Significance of corporate governance...................................................................................9
2.6 CSR in the multinational companies...................................................................................10
2.7 Benefits of corporate governance on market performance of the firm................................11
2.8 Ways in which globalization and internationalization affects CSR of an organization......12
2.9 Ways in which Corporate governance promotes globalization and Internationalization of
the Company..............................................................................................................................14
2.10 Ways in which concept of CSR can be used to improve market performance..................14
2. 11 Ways in which corporate governance can help in increasing market performance..........15
CHAPTER 3- RESEARCH METHODOLOGY...........................................................................18
3.1 Overview..............................................................................................................................18
3.2 Research type.......................................................................................................................18
3.3 Research design...................................................................................................................19
3.4 Research approach...............................................................................................................19
3.5 Research philosophy............................................................................................................20
3.6 Data collection methods......................................................................................................20

3.7 Data analysis........................................................................................................................21
3.8 Validity and reliability.........................................................................................................21
3.9 Ethical consideration...........................................................................................................22
3.10 Limitation of study............................................................................................................23
CHAPTER 4: DATA ANALYSIS................................................................................................24
4.1 Introduction..........................................................................................................................24
4.2 Demographic data................................................................................................................24
4.3 Meaning and significance of corporate governance and CSR in context of multinational
companies..................................................................................................................................28
4.4 Implications of corporate governance in relation to company market performance...........34
4.5 Corporate governance promotes globalization and Internationalization.............................40
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................45
5.1 Conclusion...........................................................................................................................45
5.2 Recommendations................................................................................................................47
REFLECTIVE...............................................................................................................................49
REFERNCES.................................................................................................................................50
APPENDIX....................................................................................................................................54
Questionnaire.............................................................................................................................54

CHAPTER 1: INTRODUCTION
1.1 Overview
Background of research
Corporate governance is a widely used word that tells a lot of thinks about an
organization. Across the globe, there are many large sized companies that are known for their
high level of corporate governance. This term refers to rules and regulations that are followed in
entire organization while conducting its day-to-day operations. Moreover, corporate governance
also helps in satisfying needs of all stakeholders whether they are internal or external in balanced
manner. There are many components of corporate governance and one of the most important
components is accountability. This component of corporate governance states that leaders of an
organization must understand their accountability towards an organization. The top management
must guide their subordinates and ensure that each and every activity in an organization is
performed in appropriate manner as per the rules of corporate governance (Harford, Mansi and
Maxwell, 2012). Transparent and open leadership is an important component of corporate
governance. According to this component, leaders or company top management must made all
disclosures regarding company operations time to time. Such disclosures must be correct and
misrepresentation by using fake numbers must not be done. In order to follow corporate
governance, companies’ top management is required to make a good relationship with their
stakeholders. These stakeholders are employees, shareholders and creditors etc. A good
corporate governance in an organization ensures that all stakeholders will be treated equally and
management will give them due importance. If management treats employees in a systematic
manner then they get satisfied and give their full effort in achievement of an organizational goal.
Hence, corporate governance plays an important role in growth of an organization. In order to
make good corporate governance, directors that are operating an organization from top must be
given full independence to take necessary action (Larcker, Richardson and Tuna, 2007). If this
will not happen then main owners of an organization will have full grip over company
management and they will fulfil their own needs to achieve desired goals. On contrary to this, if
directors are working independently then they will improve company rules and regulations and
will also make them strict in order to prevent occurrence of any scam with in a company. Hence,
independence of directors is a first step towards making strong corporate governance within an
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organization. In this research an attempt is made in order to understand impact of corporate
governance on an organization. In other words, attempt is made in order to understand the
positive impact of corporate governance on company. Corporate social responsibility that is also
known as CSR is an integral part of corporate governance because in today era firms are using
CSR a way to shine their brand image. It is part of corporate business practice. Hence, corporate
governance and CSR are interlinked to each other.
Under CSR companies are implementing numerous activities like opening orphanages,
helping handicapped people and reducing carbon emission to protect environment. Companies
are using it as an instrument in order to create a positive brand image. Firms are using their CSR
activities in institutional advertising in order to show that are giving significant contribution in
welfare of an organization. In many nations, CSR becomes an integral part of corporate business
practice (Bebchuk, Cohen and Ferrell, 2009). Today, the most common problem that business
organizations are facing is low retention value of the customers. In simple words, it can be said
that companies are not able to create a loyal customer base. On other hand, stiff or fierce
competition is going on between companies in every sector. In such a situation, it becomes
necessary for firms to build loyal customer base. Due to mentioned reasons every company is
attempting to work out on this plan in its own way. Firms are adopting ways which helps them in
creating their special image in the eyes of customers. By doing this, they can increase employees
retention value or can build loyal customer base. CSR is a unique and best way to achieve
objective of building loyal customer base. By undertaking lots of social service activities,
companies are trying to establish special image of their brand name. Companies like Microsoft
are allocating millions of amount for CSR for conducting social service activities in countries
like India (Farber, 2005.). In this way, they are popularizing their name in foreign countries not
only on the base of their product but also on the basis of the corporate social responsibility
activities.
This research is conducted in order to reveal the impact of corporate governance on
internationalization, globalization and performance of Emirates Airline. In this research,
correlation between CSR and corporate governance will be developed. This will be done in order
to show the extent to which mentioned company effectively utilizes CSR and corporate
governance for its benefit.
Background of Emirates
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An emirate is the largest airline company of UAE which is also known as united Arab
emirate. It is state owned airline Sheikh Mohamed bin rashid Al Makotoum who is ruler of UK is
its president. It is world largest international airline and in fiscal year 2014-15, it carried 49.3
million passengers which were 11% more than previous year. In same fiscal year, it carry 2.4
million ton of cargo which was 6% higher than previous year. In mentioned fiscal year it also
increases its capacity by 9%. This reflects that company is on track of growth and since its
inception it is growing rapidly and becomes world largest international airline. Currently, it has
presence in 144 cities over 6 continents. This means that it has geographical presence all over the
world (Agrawal and Chadha, 2005). Company is steadily investing on its developing its fleet size
and initiating its services on new routes. Emirates understand that customers or travellers are an
important stakeholders and their satisfaction from its services will play a decisive role in the
company success. Hence, Emirates following concept of CSR and it is providing quality food to
its customers. Emirates are providing food facility in collaboration with Dnata an international
company that is providing in-flight catering services. Emirates ensure that food that is provided
to the travellers is of high quality. In other words, it is ensuring that their traveller does not find
any sort of problem in terms of food while travelling on its airline. In alliance with Dnata,
company is aimed at providing full safety to its travellers. In respect to this, it is investing heavy
amount of AED 70 million in order to ensure full safety of life of those who travel in its airline.
In respect to this, it initiate safety program in order to train its employees. Under this program,
850 of its staff members were trained as observers and in respect to this 24,000 observations are
carried out till the date (The Emirates group. 2015). After observation, feedback is collected in
order to identify weak points. Further, on the basis of these weak points measures are prepared
and implemented that ensures safety of passengers at its airline. Along with this, it also values its
employees and it assumed that they are its valuable assets and organization cannot grow without
their support. Hence, it is giving full support to its employees. Along with this, it is also
committed towards protecting an environment and in respect to this is adopt several pollution
control measures. Emirates understand that there is a lack of resources and due to this reason it
aims at utilizing its resources in efficient and effective manner. Emirates do not stops here and it
is also carrying out corporate social responsibility activities in respect to conservation of flora
and fauna at desert. It is involved in Dubai Desert Conservation Reserve under which it initiates
efforts to preserve natural and cultural heritage the desert land. Hence, company is carrying out
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CSR activities in several areas and in this way it is popularizing its brand name (Fan, J Wong
and Zhang, 2007).
1.2 Research aims and objectives
Main objectives as per the aim of the research are-
 To access the meaning and significance of corporate governance and CSR in the
multinational companies.
 To examine the implications of corporate governance on the market performance of the
firm.
 To identify the ways in which Corporate governance promotes globalization and
Internationalization of the Company. To recommend the ways in which concepts of CSR and corporate governance can be
used in order to boost the market performance of Emirates Airlines.
Research questions
 What is the meaning and significance of corporate governance and CSR in context of
multinational companies?
 What are the implications of corporate governance in relation to company market
performance?
 In what ways Corporate Governance promotes globalization and internationalization of
the firm?
 What are the ways in terms of CSR and corporate governance that can be used to speed
up market performance of Emirate airlines?
1.3 Rational of research
Running a business is a very difficult task and organization top and middle management
have to look after so many activities in order to ensure continue growth of an organization.
Corporate governance is simply a set of rules and regulations that an organization follows in
order to run day to day business. It also refers to procedures that an organization is following in
order to complete specific task. Corporate governance also plays an important role in
maintaining transparency in an organization. Due to lack of transparency fraud comes in
existence within an organization even it is not in culture of an organization. As a result, image of
the company gets tarnished in the eyes of the customers (Dittmar and Mahrt-Smith, 2007).
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Stringent rules and regulations help management of an organization in ensuring full transparency
in an organization. This also helps in preventing irregularities in an organization. Hence,
corporate governance plays a significant role in growth of an organization. Every organization
has large number of stakeholders and it has to maintain a balance between these entities. Many
times an organization due to unclear rules and regulations and good leadership failed to satisfy
interests of all its stakeholders. In such a situation company requires good corporate governance
(Black, Jang and Kim, 2006). Hence, corporate governance is a soul of an organization and in its
absence an organization can survive in a highly competitive industry.
Corporate governance is a term, on which most of the people talk about. In today
environment many new frauds comes in existence which are done by large firms which have
good reputation among general public. As a result, people are losing confidence on these firms
and they are also not loyal towards single firm product. Moreover, any bad news about company
product creates a fear among public. Hence, fortnightly, firm customer base get reduced to large
extent. This is observed several times. Hence, this make strengthening of corporate governance
in an organization inevitable (Carney, 2005). Strong rules and regulation helps in preventing
origination of any irregularities in company operations or accounts. This also makes procedure of
performance of any activity efficient and trustworthy. Today, corporate governance is a term
which is considered by large sized investors before making investment in a single or multiple
firms. Many large and medium sized firms are manipulating their accounts and bribe is given to
auditors in order to conceal real facts for stakeholders and regulatory authorities. This questioned
companies claim to their reliability and transparency in their financial and non financial
operations (Bhagat and Bolton, 2008). As a result, corporate governance is an important issue in
business and investment streets.
1.4 Significance of research
There are a lot of benefits of making corporate governance stronger. This research will
help companies in understanding the importance of corporate governance in expansion of
business. Good corporate governance acts as a trademark of company reliability and its loyalty
towards fulfillment of interests of its stakeholders (Masulis, Wang and Xie, 2007). This research
will help Emirates in understanding importance of corporate governance deeply. Further, results
of research will also help company in improving its corporate governance. Research on corporate
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governance is also helping researcher in understanding broad understanding on importance of
corporate governance.
Structure of report Introduction- This research is carried out on corporate governance and in this research an
attempt is made in order to understand its impact on an organization. In this report CSR is
also used to understand impact of corporate governance on an organization. Literature review- Literature review is conducted in order to understand past scenario
regarding impact of corporate governance on an organization. In respect to this, various
author literature are analyzed. Finding of review of this literature is made available in this
segment of research report. Research methodology- In this part of report suitable techniques for the purpose of
analysis has been identified. It provides guidance for completion of research into
consideration. Data analysis- In this part of report data collected in primary research is analyzed
through adoption of various tools and techniques.
 Conclusion and Recommendations- This is last part of the report in which conclusion is
derived through the analysis of data. Moreover, effective course of action to the business
into consideration is recommended through this section.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
After the introduction section another part of dissertation is literature review. It is assumed
literature review is an integral component of the dissertation. In this part of dissertation opinions
of research scholar and intellectual people are discussed in detail and their opinions are
correlated and contradicted with each other statements. Secondary data is collected with an
objective of understanding topic of dissertation in proper manner. This creates a base which is
used for conducting a primary research. By doing review of literature gap between current and
past scenario can easily be identified. In this part of literature review, critical evaluation of
various scholars’ opinions is done. Literature review would encompass the significance of
corporate governance and other issues related to the corporate governance. In today age
companies are increasingly expanding their operations on foreign land and they are consistently
increasing their business in multiple nations. As a result, their social responsibility is also
increasing because firms are using resources that belong to foreign nations. Hence, it is its
responsibility to perform CSR activities in all those nations in which it is operating its business.
Thus, in literature review, impact of globalization and internationalisation on CSR activities of
the companies is discussed in detail. Moreover, in this section of dissertation ways in which
globalization and internationalization affects CSR of the company is also discussed in detail.
2.2 Meaning of corporate governance
Corporate governance plays an important role in success or failure of an organization
because this is a centre from which all core business activities of organizations are directed
towards achievement of an organization objective. Corporate governance is like an instrument
through which companies build healthy relationship with their stakeholders like customers and
employees etc. In the absence of strong corporate governance relationships with stakeholders
become poor. Hence, most of the companies are paying due attention on strengthening their
corporate governance. According to Harford, Mansi and Maxwell, (2012) corporate governance
is a set of rules, process and practices through which company is controlled and directed in a
specific direction. In other words, it can also be said that corporate governance is bundle of rules
and process that company board of directors and managers follow to operate an organization. In
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