Corporate social responsibility: The example of Air France-KLM

Résumé du document

This group was created in 2004 through the merger of Air France and KLM and is now the world leader in terms of international passenger traffic. In addition, the financial results have been improved considerably over the last few years. But how is the airline group actually dealing with its different corporate social responsibilities? First of all, we will define the notions of corporate governance, responsibility and business ethics, according to different author's opinions. Secondly, we will give a general presentation of the Air France – KLM Group. Thirdly, we will identify the different stakeholders: the impact and key issues of concern to the company and its stakeholders and the major measures set up. And finally, we will focus on a precise issue: the environmental challenge, by explaining the different concerns and identifying the actions taken. We will also evaluate the effectiveness of these measures and we will formulate some critics as well.

Extraits

[...] However, it does not address the problem of what should happen when several responsibilities are in conflicts. I. B. Definition of Business Ethics According to A. Crane and D. Matten, “Business Ethics”, p “Business Ethic is the study of business situations, activities, and decisions where issues of right and wrong are addressed”. In addition, “business ethics” is not only about “commercial businesses, but also government organizations, pressure groups, not-for-profit businesses, charities, and other organizations”. According to A. Crane and D. [...]

[...] The company, as we mentioned, aims to fight against discrimination in the workplace and to strengthen diversity, employability and staff mobility. Promoting the environmental responsibility is also a priority of Air France KLM, as well as a rigorous respect of human rights and against all types of child and forced labour (severe control of the supply chain). Actions taken: According to the 2006 CSR report (p. the company recently signed 22 collective agreements and more precisely 26 people with disabilities were employed. [...]

[...] However, CO2, NOx and soot emissions are still a major concern for airline companies and Air France KLM notably. Indeed, air traffic is a growing industry each year approximately) and the scope for achieving further CO2 reductions is quite limited so far, if we compare to other industries. The entire airline industry is globally under pressure to reduce emissions. Let's see what the different reasons are: - First of all, there is an increasing pressure from socially responsible investors - Then, clients are also expecting “greener” companies: demands for information are particularly increasing (degree of CO2 emissions, efforts made by companies to fight against carbon emissions ) - Moreover, those concerns are also more and more important for the cargo business, some NGOs and travel agencies as well - Finally, the European Commission is planning to integrate air transport in the European Emission Trading Scheme whose main objective is to fix a limit on the amount of carbon emission a company can emit. [...]

[...] Definition of Corporate Governance and Responsibility According to W. B. Werther and D. Chandler, “Strategic Corporate Social Responsibility”, p is not about saving the whales or ending poverty or other worthwhile goals that are unrelated to a firm's operations and are better left to government or nonprofits. Instead, CSR is about the economic, legal, ethical, and discretionary issues stakeholders view as affecting the firm's plans and actions”. A. Crane and D. Matten mentioned in their book, “Business Ethics”, p the Carroll's theory of corporate social responsibility. [...]

[...] In addition, the company is conducting a profitable growth strategy, based on powerful hubs (CDG, Paris and Schiphol, Amsterdam), a strong network offering natural protection in managing economic and geopolitical threats, the powerful Sky Team alliance, high services to customers and a high cost management and control. Air France KLM at a glance: - 240 destinations in 105 countries - 73.5 millions of passengers - 1.4 millions tons for air freight/cargo - A fleet composed of 900 aircrafts maintained - 103,000 employees worldwide - Financial results for 2006/07: 23.1 billion euros of revenues ( in 2005/06 - + 7.6 and 1.2 billion euros of operating income / 2005/06). According to the Air France KLM website, Group profile, 2006/07 financial year. [...]