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Corporate governance and business ethics: Air France-KLM

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  1. Introduction
  2. Overview of the company: Air France-KLM
  3. Corporate social report analysis
    1. Theories
    2. Stakeholders of the company and the impact on them
    3. Stakeholder management techniques
    4. Stakeholder actions and the impact on company reputation and operations
  4. Air France- KLM responses
  5. Conclusion
  6. References

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. [...]

[...] Air France-KLM is a member of the European Corporate Leaders Group on Climate Change (CLG). The main areas where progress has to be done for the Group are for the CO2 emissions, noise emissions, energy consumption for ground operations, waste and water discharge and water consumption. CO2 emissions: In renewing their fleet, it reduces fuel consumption by per year. Air France-KLM introduced in total 9 new B777-300 for long-haul, which are 28% more fuel efficient per passenger-km and quieter. Air France invested 10 million euros to replace 34% of their vehicles and other ground equipment by electric vehicles and hope to reach 60% in 2020. [...]

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