British Airways - Definition of Corporate Global Citizenship - Essay Example

?British Airways Definition of Corporate Global Citizenship The concept of organizations developing to global citizenship has been developed in the recent past to ensure that organizations have an input on the societies they are in. Usually, the main purpose of why an organization exists is to make profit for the shareholders. However, this is not all, organizations are obliged to take care of the people that sustain it in different aspects ion order to have a corporate social responsibility. Therefore, according to the World Economic Forum, corporate global citizenship refers to the adoption of real and lasting contributions by a corporate body to societies apart from making profits for the shareholders. The organization should be able to take care of the stakeholders at all levels, these includes the customers, the suppliers, the community in which they operate, aid organizations and governments (World Economic Forum, 2008). It is becoming clear that the act of corporate global citizenship is becoming a corporate norm. The organizations have been under intense pressure to comply with the community expectations ad at the same time remain profitable, the pressure may not be direct but it is evident. This concept has in the recent years shifted from the acts of philanthropy, public relations or legal compliance to become more of a corporate strategy with an aim of creating a corporate name for the organization driven by values (Nelson, 2005). It is therefore necessary for companies to adhere to these provisions in order to maintain not only a corporate image but also a social image that demonstrates to the world that the organization has an input. A company that is a good global citizen should be capable of participating in community development as well as supporting the government through developments (Nelson, 2005).. Such a company should be able to devote its resources in developing the community around them; this can be majorly done through initiation of projects and programs that facilitate development. Global Citizenship Policy of British Airways The airline has reached the community in several different ways. Firstly, they have developed a charitable affiliation called Flying Start that is a joint initiative with Comic Relief. The main purpose of the aid organization is to help children undergoing through hard times across the world. The organization has left a big mark in the lives of many children and their families all around the globe. The second initiative is the establishment of a Community Learning Centre, which was opened around 1999 and has seen more than seventy eight thousand people get training (British Airways 2012). The centre has focused on training the community on information and communication technology, environmental education, language trainings, and customer service among others. The airline has also been on the forefront in supporting charitable organizations both locally and internationally, so far they have reached out in support for over forty organizations. One major and recurring impact has been through Dream Flight, which takes seriously ill children and disabled from the United Kingdom for a vacation to Orlando, United States. There is support accorded to street children through a program called Railway Children, several children found in the streets and especially those who live on railway platforms in the United Kingdom have benefited. The airline goes beyond to take care of the wild life through the David Sheldrick Wildlife Trust that takes care of orphaned wildlife in Kenya; the initiative has played a critical role in the conservation of elephants (British Airways 2012). British Airways has developed a number of partnerships with the community where they have an input in the development both within the United Kingdom and within other countries. The major areas that the airline has focused on include, in education and youth development, colleague engagements, conservation and emergencies. The staff is very instrumental in providing voluntary services to the community whenever called upon. The airline has been very keen on environmental conservation; it has developed mechanisms to reduce climate change such as spearheading in the development of low carbon fuels, establishing initiatives that reduce emissions, conducting environmental projects and proactive support for government regulations. The company ha extensively supported local programs that are eared towards improving the quality of air around the airports, improving the biodiversity and reducing noise pollution. On the other hand, the airline has supported academic research in particulate matter emissions and research on the impact of aviation on the local environment (British Airways 2012). The British has developed various waste management procedures. Waste recycling has been on the forefront, at Heathrow and Gatwick the company took the initiative of recycling up to 45% of the entire wastes produced while the non-recyclable products are processed in a waste to energy plant (British Airways, 2012). This demonstrates the commitment of the company to sustainable waste management. The company has continued to adhere to the legislations involving waste management and has supported such initiatives financially and in the implementation. Financial Health of British Airways British Airways has been on a profit-making trend for many years. The company has set goals that will facilitate this growth, according to their 2012 corporate responsibility report, they are aiming to reach an operating profit at IAG of 1.6 trillion Euros by the year 2015 and at the same time keep the non-fuel costs constant. In addition, the trend has been positive and all is well for the achievement of the 2015 goal, for example in the year 2012 the company successfully maintained non-fuel costs flat while the profit reached at 274 million pounds. These financial achievements will be a facilitation of the long-term goals of the organization in taking responsibility of the society. The trend in profit making has varied in some instances but the path to a prosperous future is evident. In 2010, the airline made a record 342 million pounds operating profit and exponentially increased in 2011 standing at 518 Million pounds before declining to the 2012 figure of 274 million pounds (British Airways, 2012). Financial Health and Global Citizenship of British Airways The financial trend has shown a decrease in 2012 from the previous year but the company remains committed to its corporate responsibility. They have an internal Business Resilience team that foresees risks and takes appropriate action; financial risk management is top on the initiative, they also do contingency planning for all types of incidences and emergencies. The IAG treasury also plays a critical role in ensuring the company financial health is sustained. All these mechanisms are put in place to ensure profitability and by extension the growth of corporate global citizenship (British Airways 2012). Conclusion British Airlines has promoted global citizenship and remains committed to developing communities, institutions and government. Their financial health facilitates this commitment. Despite having root in the United Kingdom, British airlines have spearheaded projects that have promoted global citizenship all across the world. Their presence in Asia, Africa, America and Europe is an evidence of their diversity. The airline has initiated projects or supported them in most of its destinations. Therefore, the British Airways is one of the major companies that have facilitated the development of corporate global citizenship. References British Airways. Corporate Responsibility Report 2012, Retrieved on December 3, 2013 from http://www.onedestination.co.uk/wp-content/uploads/BA_CRR_Full_Report.pdf Nelson, J. (2005), Corporate citizenship in a global context. Retrieved on December 3, 2013 from http://www.hks.harvard.edu/m-rcbg/CSRI/publications/Workingpaper_13_nelson.pdf World Economic Forum. (2008). Issues. Retrieved on December 3, 2013 from http://www.weforum.org/issues/corporate-global-citizenship Read More