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).
[...] Air France-KLM is one of the members of the SkyTeam global alliance among the ten European, American and Asian airlines (Aeroflot, Aeromexico, Air France, Alitalia, Continental, CSA Czech Airlines, Delta, KLM, Korean Air, Northwest Airlines). SkyTeam is the second largest alliance in the world after Star Alliance (Air France-KLM, 2008). Some figures: 73.5 million transported passengers in 2006-2007 The group offers 240 destinations within 105 countries in which 118 long-haul flights and 122 medium-haul flights. Air France-KLM offers 2,500 daily flights (Air France-KLM, 2008) Section Corporate Social Report analysis : Theories There are two different ethics' models, in order to understand how companies are classified using ethical frameworks. [...]
[...] (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. [...]
[...] Of course, Air France-KLM is doing things but they can do much more. If they really care about environment, they should invest a big amount of money on fuel alternatives research rather than spending money on ground operations! And they can do it as it is a powerful company with a lot of financial resources (world's largest by revenue). The paper has provided an overview of the Air France-KLM company, as well as an analysis of its corporate social responsibility report, all their measures taken for the environment and their effectiveness. [...]
[...] NGOs are dealing with “environmental protection programs” and are supported by the Group in their actions : Stakeholder management techniques It is essential for Air France-KLM to engage the dialogue with all their stakeholders. They are trying to give them as much information as possible through different websites, newsletters, flyers and magazines However, Ernst van Weperen who is the Project Manager of the European coalition of socially responsible investors said that investors would like to know “which principles and standards are supported by the Group”, have a “sense of dilemmas faced by the Group”, that the Group sets “precise targets and indicators to allow stakeholders to gauge the level of ambition” and also to have “data and explanations” (KLM, 2008). [...]
[...] - The financial community of Air France-KLM gets an award for the best annual report of the SBF 120, the third prize Boursoscan and the “Outstanding investor relations site award” in the USA (Air France- KLM, 2008). What does it mean? - For the second consecutive year, Air France-KLM has two Dow Jones Indexes for the sustainable development (DJSI World and DJSI Stoxx). The Group gets the better final score among the airline companies for the DJSI World and is the only airline company to have the DJSI Stoxx Index in 2006 (Air France-KLM, 2008). [...]
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