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Corporate social responsibility: The example of Air France-KLM

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  1. Introduction.
  2. Meaning of corporate governance & business ethics.
    1. Definition of corporate governance and responsibility.
    2. Definition of business ethics.
  3. Air France klm: Company background.
  4. Corporate social responsibily report analysis.
    1. Identification of Air France: KLM stakeholders.
    2. Issues of concern in terms of Corporate Social Responsibility and actions recently taken by the group.
  5. Focus on the environmental challenge.
    1. General facts.
    2. Air France KLM approach.
    3. Concrete actions taken by the company.
  6. Concrete actions taken by the company.
  7. Conclusion.
  8. Reference list.

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.

[...] 12) - The Suppliers: According to the 2006 Corporate Social Responsibility report, Air France KLM strongly contributes to the economy of the regions around airports (notably the main Parisian airports: Roissy CDG and Orly). The economic impact is made at different levels: airport, regional and global scale. Air France KLM also has direct economic footprint through its contractors, suppliers and spin- off jobs generated by airline activities?. In addition, the group has been developing local recruitments and partnerships with local companies over the last ten years (CSR p. [...]

[...] About the critics, we can say that Air France KLM, in their CSR report, is not really precise regarding the measures they are conducting. Indeed, we do not know what their involvements in humanitarian or research programmes are really made of: is it financial help (if so, how much money? What precise percentage of profits is dedicated to research, do we have a participation of the Group's engineers? And so on). Therefore, we can say that most of the information given in the CSR report is not accurate and there is a strong lack of data to explain and measure the effectiveness of their actions. [...]

[...] 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. III. Corporate social responsibily report analysis II. A. Identification of AIR FRANCE KLM stakeholders According to the Air France KLM corporate Social Responsibility Report (online, 2006), it is possible to distinguish 7 major stakeholders: - The Civil Society: (about local organisations, pressure groups and NGOs. [...]

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