CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility in Aviation Industry: A Case of American Airlines

Abstract

The purpose of this research paper is to evaluate the significance corporate social responsibility (CSR) in the Aviation Industry. Airline operators in the US have been consistently investing in projecting themselves as socially responsible corporations. In this regard, four primary aspects of CSR have been given much attention by airline operators; environmental, societal, and economical. Few of the most pressing issues in this regard have been emission of harmful gases in the environment, noise pollution, waste production, fuel consumption inefficiency, perception of unfair treatment of employees, and customer/employee safety. Each of these aspects poses tough challenges for airline companies to tackle; however, despite the tough tasks involved in being socially responsible, many companies have been investing in profitable CSR initiatives. Some of the most popular initiatives taken by many companies have been; investing in sophisticated technology for aircraft so that emission of pollutants can be reduced, use of renewable resources, and investing in employee and society development. The paper also projects American Airlines Inc. as one of the most active airline operator in the US industry, who has been relentlessly working towards meeting the expectations of its stakeholders. Successful CSR activities, undoubtedly, help a company achieve financial success as well as stronger brand image.

Table of Contents

INTRODUCTION1

DEFINITION OF CSR1

Primary Aspects of CSR2

Economical2

Social2

Environmental3

A BRIEF OVERVIEW OF AIRLINE INDUSTRY'S CURRENT CSR TRENDS3

CSR Related Issues in Aviation Industry4

Environmental4

Community5

Employees5

Customers6

Safety6

AMERICAN AIRLINES INC.7

AMERICAN AIRLINES CSR INITIATIVES ANALYSIS7

CSR as a Strategy8

CONCLUSION9

REFERENCES11

APPENDICES12

Corporate Social Responsibility in Aviation Industry: A Case of American Airlines

Introduction

During the last couple of decades, corporate social responsibility (CSR) has been evolved as a significant concern for policy makers globally. However, evaluating design and implementation of CSR initiatives in airline industry is of particular interest, primarily because this industry is characterized by cut-throat competition and high emission of pollutants in the environment. The competition in the industry has obviously been driven by the customers' expectations of receiving excellent service at as low a price as possible; and high pollutant emission is part and parcel of aviation operations. Therefore, airline companies strive to gain a sustainable and inimitable cost-advantage; which shifts policy makers focus to increasing operational efficiency; thus, in turn making CSR a secondary priority. This paper highlights CSR issues in the airline industry, as well as briefly analyses American Airlines Inc. initiatives to become a socially responsible corporation.

Definition of CSR

The philosophy of corporate social responsibility finds its root in corporations increasingly realizing their responsibility towards the better of the society in which they operate. Typically, it is defined as corporations meeting economical, legal, and ethical expectations of the society so that they could not only work their own profit maximization, but simultaneously work for community betterment as well. It is vital to mention here that from an economist view point, corporations are primarily liable to work for increasing the wealth of their shareholders; thus profit maximizing must be the only goal of policy makers. However, a more popular school of thought today puts ...