Etihad Airways CSR
Company Background Information
Etihad airway is an UAE flag bearer airline that was established in 2003 in Abu Dhabi. With its head office based in Khalifa City A, the fastest growing airline as rated by the international air transport association operates its services around the world transporting passengers and cargos to about 82 destinations in more than 50 countries. The airline is governed under the leadership of HH Sheikh Hamed bin Zayed Al Nahyan who directs a board of directors who are headed by the chief executive officer Mr. James Hogan.
Introduction
The airline management team recognizes that engaging in corporate social affairs is a vital and critical matter that can enhance the company success, build and protects the company brand image which can consequently lead to increase in terms of growth and profit. They have thus incorporated the responsibility towards the protection and improvement of the society in the company’s mission and vision statements as well as in the company’s goals and objectives.
Integration of the CSR program with the Company’s Vision
The Etihad airways vision clearly defines and expresses their commitment towards social responsibility since they are not only interested in making profits but to offer sophisticated and professionalized services to their esteemed clients who are promised a relaxing experience during their travel. Through their vision, the Etihad airways are determined to add value to the Abu Dhabi community since the vision seeks to enhance the Arabian culture and to promote their prestige making it to be one of the most hospitable places in the world.
They thus offer their services with an aim of selling and promoting the Arabian culture which attracts international investors and foreign tourists whose investments helps to improve the country, s economy. In addition, the airline vision proves their responsibility towards social welfare since they promises their clients a safe and environmentally friendly experience as they travel to their destinations.
Integration of the CSR program with the Company’s Mission
Central to their operation, the Etihad airways have a social driven mission which prompts them to apply their entrepreneurial success and their reputable names to not only make profits but to make positive social changes in the community. They have thus incorporated their commitment to meet societal needs in their mission statements and have consistently made positive impacts in the society by tackling major social issues. Additionally, the airline has declared their missions publicly which shows their accountability, transparency and trust towards the people in the society.
Integration of the CSR program with the Company’s Objectives
The Etihad airline company’s goals and objectives have strengthened their commitments towards social issues since they aim to improve and enhance the culture of the people in Abu Dhabi. They are committed to improve the quality of life and to promote unity by linking their international clients with the Arabians which enhance peace and international coercions. They have also included the concern of environmental issues and social responsibility in their objectives. Lastly their main goal, which is to offer the best hospitability in the world, reflects a social commitment to the people in the society.
Integration of the CSR program with the Company’s Philosophy
The company’s principles and philosophy are aimed at strengthening shareholders relations while offering them quality services. They therefore create good customer relations, strong supplier’s relationships, improved employees productivity and better community relations which they achieve through demonstrations of consistent ethical involvement towards the social affairs.
Challenges Encountered with the Integration of the CSR Program
The Etihad airline company has encountered challenges while responding to the issues of corporate social responsibility. First, they have engaged into many social affairs which they are obligated to fulfill in order to maintain their brand name. The process of integrating the corporate social responsibility into the management strategies and involving the company’s various stakeholders is expensive and complex and it requires a lot of paper works and finances. In addition, in spite of building a reputable company brand, the costs that the airline uses to engage in social affairs often outweighs their financial gains which create some financial constraint within the company.
Etihad airways CSR program in the last 3 years
However, in spite of these challenges, the Etihad airline company has publicly implemented a sustainable social responsibility program with a creation of a corporate social responsibility programs with strategies that engages all their stake holders. The airlines have come up with a corporate social responsibility program with activities that impact on various stakeholders comprising of the employees, the community, business partners, customers, shareholders, suppliers and the government. The airline has demonstrated a commitment to ascertain and meet the social needs and expectation of each and every stakeholder as outlined in the company profile in the last three years.
Preservation and protection of the Environmental
With regard to the environmental issues, the airline has demonstrated an interest in the well being the people since they are engaged in various environmental preservations activities. For instance, they offer several eco friendly services that are aimed at reducing the pollution brought about by its operations. They engage the people in the society to take actions aimed at preserving their surrounding environments.
After realizing that their operations through the use of airplanes impacts serious environmental degradation, the airline has engaged in other positive and environmental friendly activities such as energy saving initiatives where staffs are trained on activities such as recycling, switching powers and lighting when not needed in a facility known as the green office champions. They have employed noise management schemes to protect the people around the aircrafts area by creating noise regulatory equipments as well as acquiring air craft engines that are compliance with the standards put forward by the ICAO.
The airline has also implemented a waste management practice where bio degradable plastics, polystyrene cups and paper bags are recycled. The Etihad airline has formed partnership with various environmental organizations that are sensitive towards the use of the environment. The associations includes among others, the emirates environmental group, the environmental policy group of the Arabs air carriers, Abu Dhabi environmental group and sustainable aviation fuel users group. The airline founded the masdar institute where members are obliged to investigate the viability of the use of biofuel to replace the use of carbon emitting fuels in our environments.
Contribution towards the Community
In addition to preservation of environments, the Etihad airline has initiated various community development projects that add value to the well being of the people in the society. for instance, the use of financial and materials contribution to support education, promotion of health facilities to help the sick and the poor as well as helping to eliminate diseases and poverty in Abu Dhabi.
For instance, in 2010, the Etihad airline responded to crisis and humanitarian issues where they provided medical services, relief items and means of transport in support of the victims of Haiti disaster. They also undertook several activities in aid of the displayed children in Pakistan disaster and supported volunteers with food staff, materials and financial assistance in response to Queensland flood disaster in Australia. The airline is a registered member of various humanitarian airline initiatives group that provide transport to charitable organizations freely or at reduced costs to respond to disaster management for example, the care by air group and the international society of transport aircraft trading (ISTAT)
Contribution towards Economic Growth
In addition, the airline has significantly contributed towards the economic growth and developments. The airline is one of the main employers who offer job opportunity to the people across the U.A.E community and internationally creating an economic boost for the country and enhancing the lives of many people in the community. They also respond to harmful social issues such as offering relief aids and food to the affected and the unfortunate members of the community.
They have initiated several empowering programs that enhance the lives of the people in the society. They deliver vocational training programs, education and assisting community members with life empowerment opportunities. For instance, they work together with the mosaic group which is an initiative where students and young people meet to address global issues while developing quality leadership skills across the Muslim countries.
The airline has also supported the child welfare scheme with material and financial support. This is a scheme that target vulnerable children in marginalized areas where they give them protection, access to medical services and delivery of early childhood education. They also support mothers with financial contributions to help them give proper care to nursing children.
Again, the Etihad airline has contributed in the promotion of the Arabian heritage and culture. This has in turn attracted major international investors and has promoted the tourism industry in a significant way. The facilitation of International trade and entry of many tourists has further enhanced the U.A.E economy and has lead to the promotion of international peace and unity. The airline numerous commercial operations has increased the company profits which has created a direct economic contribution to the UAE countries in terms of productivity and labour supply
The Company’s Offer of Sponsorship Programs
Lastly, they have engaged in various sponsorship programs across the community such as sponsoring sports activities, arts and cultural activities. The airline engages in various activities to support and empower the young people in the society. For instance, since 2010, the Etihad airline has been the official airline offering services to the off screen social enterprise, a program that promotes intercultural understanding among young people. The program initiates activities such as photography, fashion design, film and creative communication which inspire youth to build positive educational legacy across border.
Towards the end of 2008, moving on to the consecutive years, the Etihad airline sponsored various sporting activities that natured talents from the grassroots level especially the popular football sport. Through their partnership with the Manchester city FC team and their involvement in the English premier league activities, the airline has opened the Etihad airways Manchester city soccer school that trained many young and upcoming soccer sportsmen in the U.A.E community. They conduct annual tour to various schools giving Manchester city FC t-shirts and have sponsored many exhibition matches across the emirates nation.
Contribution towards Employee’s Welfare
Employee’s welfare is an integral matter that the Etihad airline has put an emphasized focus in their corporate social responsibility program. The employees are honored with the competitive remunerations coupled with other benefits such as education allowances, house ownership schemes and family and friends supplementary tickets. They get quality health benefits as well as motivating pension schemes for themselves and for their immediate family members.
The employees are offered with a complex accommodation structures complete with a pharmacy, medical centre, restaurants, a Spa and banking services. The CSR program is committed to the wellbeing of the employees in term of health and safety measures. In addition to compliance of all the laid down safety legislations, the employees enjoys a healthy and safety training programs and are given a conducive work environment.
The employees enjoy special training programs such as the induction training where new employees are enlightened and accorded with the appropriate assistance relating to their new roles. The airline has also established a state of art training academy where the employees are trained in such matter as management developments, communication skills and group dynamic coaching.
Contribution towards the Company’s Stakeholders
The Etihad airline corporate social responsibility program has also incorporated their esteemed shareholders, business partners, and the UAE government in their corporate social responsibility program. They collaboratively engage their shareholder in their CSR strategies by identifying the areas of concern to which they would like the team to include and prioritize in the program. They also openly report their CSR programs annually and welcome shareholders opinion, suggestions and feedback.
The airline has solid associations with their business partners and government agency where they work together to initiate and implement social activities such as environmental issues and community development programs. The airline also understands that it is their social responsibility to comply with all the laid down governments rules and regulations and they have committed to full compliance with all the legal issues.
Awards and Recognitions due to the Company’s CSR Initiatives
Through their sustainable corporate social responsibility, the Etihad airline has received a number of awards which has enhanced their reputation and created a good brand name and company profile. For example, in 2010, the airline received the Arabian sponsorship awards top honor in the international sponsorship category for their contribution and involvement in the English premier league sponsoring the Manchester city FC team.
In addition, the airline received recognition for their commitment in environmental and health issues as well as their contribution towards community development by the global national forum for environment and health. They were honored with the 2012 prestigious Global Corporate Social Responsibility Leadership Premium Award in an occasion held in Pakistan.
In celebration of their excellence in social responsibilities, the Etihad airways were awarded with the Europeans sponsorship of the year for their involvement in sports, media, entertainment and culture in the region and across the international border.
Finally, in the 8th annual international business awards, the Etihad airways received the UAE distinguished honor of the corporate social responsibility program of the year in the Middle East and Africa for their contribution towards the national workforce.
Conclusion
In conclusion, as seen in their vision and mission statement and as evidenced by their numerous awards received for their continued commitment in social affairs, the Etihad airways have produced sustainable corporate social responsibilities that continue to impact positively on the community within and outside its operation boundaries.
This has in return enhanced the company brand name and reputation which has made it to be one of the leading airlines in the UAE countries and also internationally. Their continued efforts in offering professional and quality services has lead to success in its growth records and increase in profit margins.
References
Dalton, D. R, Cosier, (1995) The Four Faces of Social Responsibility: Boston: Ashgatepublishing.
Carroll A, B, (1979). The Pyramid of Social Responsibilities: Towards the Moral Management ofOrganization Stakeholders. Ohio: South West College Publishing.
The official website for the Etihad Airways.
Wartick, S, L, Cochran, (1985) The Evolution of Corporate Social Performance Model:Academy of management review, New York: McGraw Hill.
