Virgin Atlantic's Culture: CSR, Practices, and Sustainability Report

This report provides a cultural analysis of Virgin Atlantic, focusing on its organizational practices and corporate social responsibility (CSR) initiatives. It highlights the importance of organizational culture in the globalized business environment and how CSR practices enhance corporate culture and customer retention. The report emphasizes Virgin Atlantic's commitment to sustainability, including the implementation of sustainable design and systems, efficient carbon emission reduction, and aircraft waste management. It also discusses the airline's organizational practices, such as employee involvement in charity campaigns and the use of Hofstede's cultural dimensions to motivate employees. The analysis covers power distance, individualism vs. collectivism, masculinity vs. femininity, and uncertainty avoidance within the company's culture. Furthermore, the report details the economic, social, and environmental aspects of Virgin Atlantic's CSR activities, including their impact on stakeholders, customers, employees, and the community. The report concludes by underscoring the benefits of CSR in attracting investors and fostering a positive work environment.

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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
1. Introduction:...........................................................................................................................3
2. Background of the organization:............................................................................................3
3. Virgin’s Atlantic Organizational Practice and implementation of framework:.....................4
4. CSR activities as one of the most significant organizational practices:.................................7
5. Justification of the chosen framework within organizational practices:..............................10
6. Recommendation:................................................................................................................12
7. Conclusion:..........................................................................................................................13

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1. Introduction:
Virgin Atlantic group is situated in London and is managed and owned by Sir Richard
Branson. Sir Branson owns majority of shares that is 51% of the total shares of the company
and Singapore Airlines (Virginatlantic.com, 2018) own other 49% of the shares. This airline
company headquarter is based in West Sussex and Crawley in England. Their huge stakes in
their airlines are now boosting Virgin Atlantic highest business profile. 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.
2. Background of the organization:
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. One of the most significant USP associated with Virgin Atlantic is their effective
customer services. Employees associated with the organization are very much professional

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endowed with management skill and competency. They do not discriminate the service users
as per their cultural and linguistic backgrounds and attitudes. Both premium and average cost
of customers are the target audience. On one hand, the economy cabin of Virgin Atlantic
provides superior quality of services with delicious food and in-flight entertainment. The
services of upper class are a luxurious experience with business class price tag
(virginatlantic.com, 2018). The service providers associated with these operations are highly
skillful and competent in dealing with business class people and fulfill their needs and
desires.
3. Virgin’s Atlantic Organizational Practice and implementation of framework:
The overarching term organizational practice is the action of focusing special
organizational cultures, believes and value. 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. 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

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approach aims in improving the working condition, which benefits the employees but also the
firm (Hogan & Coote, 2014).
As the CSR responsibilities are strong within the workplace of Virgin Atlantic, the
business leaders associated with this organization tends to follow participative form of
leadership style at the workplace. In participative leadership framework, the business leaders
never intend to impose their own decision on the employees. The employees are very much
liberal to share their own point of view regarding the success of business. In this kind of
situation, both the employees and the employers get the scope of maintaining effective
rapport at the workplace, which ultimately reflects on the satisfaction level of the employees.
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 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.
On the other hand, in order to maintain organizational culture and behavior the
business experts intend to use hofstede’s cultural dimension. The business experts believe
that employees need to get motivated in performing well towards the services. This particular

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framework is constituted with several, which among which four stages are the most
prominent. Power distance index, Individualism vs. Collectivism, Masculinity Versus
Femininity and Uncertainty Avoidance are the four major steps, which are related to different
dimensions of cultures.
Power Distance Index:
Power distance index implies the fact that employee’s organization may have to face
power clash while delivering services between senior and junior stakeholders. Virgin Atlantic
in order to maintain parity on the responsibility of employees has segregated the teams by
amalgamating senior and junior members (Bortolotti, Boscari & Danese, 2015) As a result,
the team members have to show an intense collaboration with each other in order to achieve
the goal. As per management policy followed by Virgin Atlantic, the business experts are
focused on promoting employees as per their performances rather than focusing on the power
of individuals.
Masculinity versus Femininity
Masculinity vs. femininity is highly related with the organizational culture, which
evaluates whether male or female employees get the first priority within organization. It is
however believed as per Virgin Atlantic’s organizational value that both male and female
employees should get equal respect and dignity. The employees are recruited as per their
skills and competency level rather than focusing on their gender biasness.
Individual vs. Collectivism:
As per the management policy of Virgin Atlantic, individual work gets least priority
rather than group work. In order to achieve long-term business goals, the business experts
have to focus on teamwork (Chang & Lin, 2015). With the help of participative form of work

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the individual members have to face show their collaboration with team members so that they
can achieve the long-term business goals and objectives.
Uncertainty Avoidance
In order to avoid uncertainties and risk factors the business experts associated with
Virgin Atlantic implements alternative options and business opportunities (Fernando &
Lawrence, 2014). Alternative business strategy and management policy is very much helpful
in avoiding sudden risk factors arising at the workplace.
4. CSR activities as one of the most significant organizational 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:
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:

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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).
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

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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).
5. Justification of the chosen framework within organizational practices:
In order to maintain proper organizational culture, values, ethics and behavior the
business experts have to follow appropriate organizational practices, which can be beneficial
for both the organization and the stakeholders. In this very specific study, Virgin Atlantic has
chosen two types of organizational practices and theoretical frameworks within their
operations. As an internal business strategy, the organization has implemented Hofstede’s
cultural dimension at the workplace (Stokes, Baker & Lichy, 2016). This particular theory
enables the business experts of Virgin Atlantic in showing emotional intelligence towards the
employees. The employees can get medical facilities from the organization while facing any
kind of health issue at the workplace (Story & Neves, 2015). In addition, the business experts
are very much sympathetic towards the internal stakeholders. In case of facing any kind of

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linguistic challenges or psychological barriers, the business experts are very much
sympathetic and co-operative towards the employees.
In order to maintain proper organizational discipline the business experts have to be
strategic by motivating the employees properly (Valmohammadi & Roshanzamir, 2015). The
organization has received reward and recognition policy as well with the help of which
employees can be motivated in performing well towards the services. Health and safety act
ensures the employees in providing monitory benefits while facing any kind of health issue at
the workplace. Psychological needs include air, water, food, clothing and shelter. This kind of
effective organizational culture can motivate the employees immensely which reflects on the
performance level towards reaching the business goal (Wang & Rafiq, 2014). Therefore, the
business experts of an organization have to give proper affectionate attitude towards the
existing employees. As a result, employees feel motivated in performing well for reaching the
business goals. It can also be stated that the business experts have to show their liberal
attitude towards the employees. As a result, employees while performing do not tend to show
their negative attitude in providing their best services. Internal esteem implies the fact how
much respect and dignity the business experts tend to provide towards the employees.
In order to maintain goodwill of the organization and gain effective external
organizational practices the business experts of Virgin Atlantic has implemented CSR
activities within their services. The ways on how the business experts of virgin Atlantic
maintain their CSR activities include:
 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

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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.
 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.