Assessing Saudia's Sustainability Initiatives and Corporate Value

This report provides an in-depth analysis of Saudia Airlines' sustainability initiatives, focusing on the impact of regulatory requirements on their operations and corporate value. The report begins with an introduction to sustainable development and its importance for businesses, specifically highlighting Saudia Airlines (Saudia). The main body explores Saudia's sustainability initiatives, examining the link between sustainable strategies and corporate value. It analyzes the benefits Saudia gains from these initiatives, encompassing environmental trends, economic performance, and social responsibility. The report also delves into the regulatory framework within Saudi Arabia, including the influence of Islamic sharia and government policies on the aviation industry. The report concludes by summarizing the key findings, emphasizing the importance of sustainability for Saudia Airlines' long-term success and the role of regulatory compliance in achieving its sustainability goals. The report uses various sources to support the analysis, including journals, books, and online resources.

Impact of Regulatory
Requirements on
Sustainability Initiatives
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
Main Body............................................................................................................................................3
Sustainability Initiatives..................................................................................................................3
The link between sustainable strategy and corporate Value............................................................4
Analysing the benefits of Saudia from sustainability initiatives.....................................................5
CONCLUSION....................................................................................................................................6
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Sustainable development refers to the development which helps in the meeting the needs of the
present without affecting the future needs and requirements of the company. The organization should
follow the sustainable initiatives in the organization which assist in developing the profitability and
goodwill in the society (Ciegis, Ramanauskiene and Startiene, 2015). For conducting the current
research, Saudi Arabian Airlines (Saudia) has been chosen. This airline of Saudi Arabia is based in
Jeddah and it is a public limited company. In this report, it will helps helps in evaluate the relationship
between successful sustainability strategy and corporate value which helps the company's in various
ways.
MAIN BODY
Sustainability Initiatives
The sustainability is the main part of the organization which helps in enduring of systems and
processes. It is the principle objectives which should be achieved by the organization because it helps
in the economy, society and in environment. Most of the sustainable development is related to the
environment. It is necessary for Saudia to follow the regulatory framework of the Saudi Arabia to run
their business effectively. As the Saudia comes under the aviation industry so there should be some
measures which are to be taken helps in the sustainable development in the corporate world. The
Islamic sharia is the main aspect in their law. The other sources of enacted law is given by the royal
orders which are not be messed with the sharia. The recent success in the Saudia Arabia has enhance
the opportunity for the government to target the sustainable initiatives. The Saudi Arabia government is
working on the different policies to gain the productivity in the company (Griggs and et.al., 2013).
Some of the main factors which are involved in the sustainability are its capacity for innovation and its
infrastructure. The regulatory requirement has to faced some issues in controlling the sustainability
initiatives.
To developed an effective sustainable organization, the assistance of the employee is also
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necessary in the firm. The ministry of labour control and monitored the labour related issues which can
include working hours, vacations , safety standards etc. The employee culture is important in the
organization to build the sustainable initiatives in the organization. If Saudia gives better culture to
their employees then in return, they will be work for them and this led to the increased in revenue in
the organization. The kingdom has also has the environment law which assist in the assessment of the
environment. The law which assists in regulating the pollution control and environment issues is The
Meteorology and Environmental Protection Administration (MEPA). This agency has some standards
which are air pollution sources, ambient air quality, water guidelines etc. (Wheeler and Beatley, 2014).
To expand the role of MEPA, the legislative planning has been done by the The General
Environmental Regulation. If laws and policies are fulfilled effectively then the operating costs of the
airlines will be decreased and will results in increase in profitability. The company also has to follow
the taxation regulations in which employees' salaries and their benefits are not taxable. The
government of Saudia Arabia is charging 5% on the payments of air tickets, air freight and maritime
freight etc.
The link between sustainable strategy and corporate Value
Sustainability strategy is an approach which concentrates on the environment, society and
revenues in the development and execution of business strategy. To enhance the corporate value, the
company should have a effective sustainable strategy such as employee culture, environmental policies
etc. (Ihlen and Roper, 2014) If the company has some strategy and which are followed ethically then
the sustainable initiatives can be easily be fulfil. The one of the strategy which government of Saudi
Arabia has introduced in aviation industry has positive impact on the company. This regulatory
framework has been followed by the Saudia to contribute in sustainable development of the
organization. The company is using the strategy in carbon dioxide to reduce them in the aviation
strategy. In this the organization can affiliate this strategy by purifying the CO2 from the airlines. This
will helps the Saudia to reduce carbon dioxide emissions and assist their customers to accomplished
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their sustainable goals. However, this will results in, operational energy and resource efficiency lowers
operating costs and low carbon sustainable solutions which provides lower risk growth opportunities.
On the other hand, customers also provides sustainability to the organization. So it is necessary
to satisfy the customers needs and try to meet their expectations which will provide sustainable
development to the company. Saudia should aware of the customers, tastes, preferences and lifestyles
and accordingly try to meet their requirements. This will provides enhancement of the goodwill and
profitability of the organization. This is because customers also helps in building the sustainability
initiatives for the chosen airline company. The Presidency of Meteorology and Environment (PME) has
stated that the corporate world has to go green and try to meet the air, noise pollution standards so that
they can contributes in the sustainability. If these types of standards are able to meet the requirements,
then the pollution which are coming from the the airlines will be reduced and company can sustain in
the effective environment. Saudia priorities involve fuel and energy efficiency, minimising waste and
preventing pollution etc. to intensify the sustainability in the business firm. The Saudia flies to more
than 787 destinations and for this their investments are commitment to the environment (Saudia,
2016). The airlines of Saudia also assured the first class travel experience to their customers. This helps
in enhancing their sustainability initiatives in the organization by increasing their corporate value.
Analysing the benefits of Saudia from sustainability initiatives
There are various advantages which will helps the Saudia to gain competitive advantage i9n the
airline industry through sustainability initiatives. This will assist in increasing of their performance and
endeavour to meet more ambitious goals. The sustainability key areas of focus are as follows:
 Environmental Trends: The benefits which Saudia can gain from the sustainability initiatives
are fuel efficiency and reduce in the carbon emission to the certain percentage so that they can
help the environment. The other aspects can help in the recycling and reducing and eliminating
the waste from the airlines which they produce (Ihlen and Roper, 2014). For example, by using
recycling throughout operations will eliminate the non- hazardous waste and this can be
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achieved by launching the recycling program. Moreover, it will also assist in the the water
conservation by using less of it.
 Economic Performance: It is one of the critical factor which helps the airline in their
sustainability to perform better and assist in the economy. There are some economic systems
which also helps in the contribution of the sustainable initiatives as well as helps in gaining the
corporate value (Ciegis, Ramanauskiene and Startiene, 2015). To outperform in the economy,
the company has to invest in the society so in return they gets something valuable in return. The
work which is done ethically and by following the laws and legislation, the sustainability
initiatives can be created effectively.
 Social: If Saudia provides safety and security to their customers then also it helping in the
sustainability initiatives. The company should make arrangements and create air fares
according the customers needs and requirements. The other facilities which are provided by the
chosen airline industry to their customers should be according to the tastes, preferences and
lifestyles of the target market (Imran, Alam and Beaumont, 2014). In addition to this, the
company make sustainability initiatives such as contributing in welfare of the society,
charitable funds as well as in education. For instance, Saudia is rehabilitating the young and
ambitious graduates from universities to prepare for the leadership positions in various areas of
Saudi Arabian Airlines.
CONCLUSION
In this report, it has been concluded that the sustainability initiatives needs regulatory
framework to run their business effectively. There are various aspects which helps in the enhancement
of the sustainable development. By making the different sustainable strategy which is considered
positive for the Saudia will helps in building the corporate values. In addition to this, there are some
factors which helps in identifying the advantages of the sustainability of the Saudia which provides
them positive impact on the organization.
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REFERENCES
Journals and Books
Ciegis, R., Ramanauskiene, J. and Startiene, G., 2015. Theoretical reasoning of the use of indicators
and indices for sustainable development assessment. Engineering Economics. 63(4).
Griggs, D. and et.al., 2013. Policy: Sustainable development goals for people and planet. Nature.
495(7441). pp.305-307.
Ihlen, Ø. and Roper, J., 2014. Corporate reports on sustainability and sustainable development:‘We
have arrived’. Sustainable development. 22(1). pp.42-51.
Imran, S., Alam, K. and Beaumont, N., 2014. Reinterpreting the definition of sustainable development
for a more ecocentric reorientation. Sustainable Development. 22(2). pp.134-144.
Wheeler, S. M. and Beatley, T., 2014. Sustainable Urban Development Reader. Routledge.
Online
Saudia. 2016. [Online]. Avaliable through:
<http://www.saudiairlines.com/portal/site/saudia/menuitem.9cccec27060daf577988a76c5d6981c
a/?vgnextoid=2d5c74c68daf2410VgnVCM100000d59618acRCRD>. [Accessed on 27th April
2016].
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