Financial benefits of corporate social responsibility The WritePass Journal

Financial benefits of corporate social responsibility Financial benefits of corporate social responsibility ; a response to colleague feedback and one that featured few, but relevant question. The survey was done by ORC International, an independent research company and it gave a confidential means for every staff member to air their views on their feelings about working at the airline firm. This survey according to British Airways (2013), attained a response rate compared to none. The airline company was pleased with the response as there was an indication that an overwhelming number of employees were committed and proud in the airline. In 2013, British Airways established a partnership with the University of Glamorgan. Through this partnership, students in the Aircraft Maintenance Engineering department will be given an opportunity to receive industry-standard training that will be incorporated in their BSc degree, and this will be done at the British Airways facility in Cardiff  (British Airways, 2013). This is consistent with Turban and Greening (1996) claim that Large companies go to considerable lengths to get potential graduate recruits by showing their CSR credentials. Nonetheless, in this partnership, engineering staff at British Airways will also get a rare opportunity to study academic modules from the institution at both undergraduate and postgraduate level  (British Airways, 2013). The airline claims that, by 2012, there were 50 new graduates introduced to its operations  (British Airways, 2013). It further claims that graduates are important for the airline’s long term plans and alumni from this partnership scheme are many in the company. Furthermore, this scheme has been in operation for little over five years, and this is consistent with British Airways history of recruiting and developing graduates; most of the senior positions in the company are held by these alumni  (British Airways, 2013). In addition, there is a statistical significant correlation between employee loyalty and a company’s CSR rating among t hose employees who are ethical  (Bevan et al., 2004). British Airways has taken this as an option for it sustainability agenda, employees who are satisfied result in customers who are satisfied and ultimately to higher revenue  (Rucci et al., 1998). This is creative capitalism as British Airways can not claim to be socially responsible, it is done to benefit the company(Kerr, 2009) CSR and Efficiency British Airways CSR principles are built on environmental issues such as carbon efficiency, elimination of emissions, noise reduction, and recycling  (British Airways, 2013). This is an indication that the company is committed through practice to these principles. It is obvious that, with such a commitment, it would definitely have an improved operational efficiency and cost savings as a benefit. This begs the question, whether this CSR is genuine? According to Khanifar et al., (2012 ), in this commercial era, businesses are under pressure to play an active role in society, but this is not for the society, most companies have intelligently used this opportunity to gain publicity and enhance their revenue. It is evident that the British Airways is a leader in the implementation of a responsible approach in regard to the effects of aviation on the environment.   However, it claims that this approach is not only important for the environment; it is the ideal approach in saving on co st considering the economic hardship marked with high fuel costs  (British Airways, 2013). This calls for efficient management approach and continuous examination of the operational process; this is a sure way of conserving energy as well as turning waste into revenue. British Airways (2012), claims through its CSR report that it made an operating profit of  £274 million, in addition to maintaining non-fuel costs flat. CSR and Partnerships In addition, CSR is an ideal way of improving business connections, there is always the possibility of the emergence of meaningful, long term partnerships. British Airways partnership with Solena Fuels Corporation is one such partnership as a result of its CSR agenda. The two companies are establishing a bio-jet facility, the first one in Europe and one that will propel the planes in the near future  (British Airways, 2013). This has opened a new channel from which the airline will source sustainable fuel at market competitive rates. In addition, British Airways CSR has created synergies; in 2012, it successfully made cost synergies one of its partners in the industry, airline Iberia. This was an indication that British Airways had done better in its revenue synergy targets for the second year. Flammer (2013), claims that CSR is a mgnet that attracts business from customers as well as shareholders. Consequently, British Airways raised its revenue and cost target to 560 million Euro s from 500 million Euros in 2011, where it delivered the cost and revenue synergy worth 13 million Euros  (British Airways, 2012). Conclusion British Airways with its strong, distinct and elaborate CSR makes it stand out among its competitors. It appears that, with this well laid out CSR agenda, it is a major component of the airline’s business plan. The company has defied all odds despite the recent economic difficulties and protected its resource level in order to maintain its commitment to this important activity. However, evidence suggests that CSR is not just giving back to the community, but also runs a performance agenda. Most of the people working at the management levels are alumni of a scheme started by British Airways as a CSR activity. In addition, the airline has partners who have continually provided it with direct financial benefits such as Solen. British Airways has taken advantage of its CSR to strengthen its position in the market. Bibliography Anttila, T. Kretzschmar, A., 2010. Application of CSR Programs in the Airline Industry. International Business. Bevan, S., Isles, N., Emery, P. Hoskins, T., 2004. Achieving high performance CSR at the heart of business. London: The Work Foundation. British Airways, 2012. Corporate Responsibility Report 2012. [Online] British Airways Available at: onedestination.co.uk/wp-content/uploads/BA_CRR_Full_Report.pdf [Accessed 20 December 2013]. British Airways, 2013. British airways social environmental policy. 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Corporate social performance and organisational attractiveness to prospective employees. Academy of Management Journal, 40(3), pp.658-72.