Corporate governance and business ethics: Air France-KLM

Résumé du document

Businesses have to publish their yearly Corporate Social Responsibility Report (CSRR) for their stakeholders. CSRR is “the business contribution to the sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates – maximizing the benefits and minimizing the downsides. Specifically, CSR is the voluntary actions that business can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of wider society” (summers, 2008).

Air France-KLM is one of the companies, which have their CSR online. Its report is divided into seven parts: Group profile, key challenges for sustainable development, sustainability management, customers, workforce, environment and society.

The aim of this paper is to analyze and criticize the corporate social report of the Air France-KLM company.

This essay is divided into three further sections. The next section will give a brief overview of the company. Then the following section will focus on the Corporate Social Report analysis. Finally, section three will point out all the measures taken by the company and their effectiveness, in response to their stakeholders' needs.

The Group Air France-KLM is one of the global leaders in air transport. Created in May 2004, these two airlines, Air France (French) and KLM (Dutch) have nevertheless kept their own identities. The CEO of Air France is Jean-Cyril Spinetta and the one for KLM is Leo Van Wijk (KLM, 2008).

Extraits

[...] But it is not precise how they will do it. Continue to renew their fleet (Air France aircrafts: 17 new retired; KLM aircrafts: 10 new retired) and promote the aeronautical research. Allow customers to calculate their carbon footprint during their trip (they intend to provide emission calculators) Support environmental programmes developed by NGOs. Which programmes? Which NGOs? How they will support them? By given money? By doing some actions? Promote renewable energies. How? Involve the whole group in the ambitious environmental action plan. [...]

[...] Section Overview of the company: Air France-KLM. The Group Air France-KLM is one of the global leaders in air transport. Created in May 2004, these two airlines, Air France (French) and KLM (Dutch) have nevertheless kept their own identities. The CEO of Air France is Jean-Cyril Spinetta and the one for KLM is Leo Van Wijk (KLM, 2008). This company has three main businesses which are passenger transport (which represents the biggest share in their total turnover), cargo transport and aircraft maintenance (Air France-KLM, 2008). [...]

[...] And which ethical principles? (KLM, 2008) : Stakeholder actions and the impact on company reputation and operations In the CSR report, it seems that Air France-KLM is doing everything for their customers and their employees. But it is not really the case. A big cabin crews strike occurs in October 2007, for the Air France Company (BBC News, 2007). But why employees were on strike? It is because they were defending their rights. They said that their incomes were too low and that the working conditions in subsidiaries were really bad. [...]

[...] Oldredlion (1991) Carroll's Pyramid of Social Responsibility [online]. Available at: [Accessed 22nd April 2008]. Skytrax (2008) Air France Passenger Review [online]. Available at: [Accessed 8th April 2008]. Summers, E. (2008) Lecture Notes [Lecture Four: Business Ethics Monday 11th February 2008]. Summers, E. (2008) Lecture Notes [Lecture Four: Corporate Social Responsibility (CSR) Monday 11th February 2008]. [...]

[...] Grigorean, R. (2007) France-KLM set to increase Romanian foothold', Ziarul Financiar [online]. Available at: [Accessed 24th April 2008]. Karantzavelou, V. (2008) France and Delta launch three trans-atlantic routes from Heathrow', Travel Daily News [online]. Available at: [Accessed 24th April 2008]. KLM (2008) Corporate Social Responsibility Report: 2006-07 [online]. Available at: [Accessed 28th March 2008]. McEwan, T. (2001) Managing Values and Beliefs in Organisations. Harlow: Prentice Hall. [...]