Corporate Social Responsibility Report

Corporate Social Responsibility Report Order Instructions: Sustainability Corporate Social Responsibility Report: Case Study of Qantas Group.

Corporate Social Responsibility Report
Corporate Social Responsibility Report

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Corporate Social Responsibility Report Sample Answer

Sustainability/Corporate Social Responsibility Report: Case Study of Qantas Group

INTRODUCTION

Qantas is an Australian airline that carries out its business operations in different global parts. It is ranked as the largest airline in terms of the fleet size and the overall number of the international flights it has. On the other hand, the airline is among the oldest airlines to be founded as it comes third after Avianca and KLM. Briefly, Qantas was founded in the year 1920. The heart of the business operations is located in Sydney where the main hub or operation area is the Sydney Airport. Over 60% of the total share are considered to be in the domestic market while the remaining one is considered to be allocated to the passengers travelling to various global regions. The airline is also considered to have embraced the concept of workplace diversification. This is due to the fact that it has tried to integrated people of all races as its employees (Qantas, 2015). For instance, during the year 2007, it introduced an initiative dubbed as Torres Strait Islanders and Aboriginal working program. At this juncture, the main objective was to create some mandatory positions for the two marginalized communities in order for them to enjoy equal rights and privileges in the airline. For instance, today, Qantas has reserved 1-2% of all working positions to these communities.  Contrarily, the company can be said to have experienced a managerial difficulty, especially in its human resource department, due to the fact that the total number of employees have been decreasing since the year 2012. The airline has a total number 33,584 employees in 2012, 33, 265 during the following year, and 30,751 in 2015. The number reduced further to 28,622 by the end of the last financial year (Qantas, 2015). The nose-diving is a worrying one given that it does not correspond with the increment in the total number of passengers who prefer using Qantas Airline. The vision of the airline company is to make sure it has created the best low fares and premium airlines in the world. In short, it is interested at ensuring its passengers have benefitted from the cheap and affordable airline services compared to its rivals.  Furthermore, Qantas has an overall plan or vision of dominating in the airline business not only in the Pacific region but also in other parts of the world. Contrarily, the airline cannot be said to have had stable profitability margin over the recent past few years. For instance, it incurred a total loss of -2,843million Australian dollars in 2014 (Qantas, 2015). This presented a reduction in the level of business performance compared to the profitability margin it registered during the previous financial year. As noted earlier, the airline is highly concerned about streamlining its business operations by ensuring that they lie within the socially accepted grounds. For instance, the diversification of its workplace is a very good example of the social aspect the company has tried to improve. Apart from that, the business has also tried to incorporate environmental sustainability issues. For instance, it tried to make sure its aircrafts are properly maintained in order to emit enormous harmful gases, thus, polluting the environment. It has also tried to integrate other important environmental sustainable programs in order to keep on improving the environmental conservation awareness initiatives among its employees, passengers, and the community at large. Therefore, this paper will delve on examining Qantas airline operations and performance based on important business issues and aspects such as the financial records, social initiatives, and the environmental programs the airline has introduced to enable an investor make informed decision regarding investment.

Financial/Economic Performance for Corporate Social Responsibility Report

Qantas Group can also be considered a very active organization in terms of financial and economic performance. Being among the oldest airlines in the world, it has been able to lay down a lot of strong economic foundation that has enabled it to have gain huge profit in the period it has remained operational. Despite it experiencing huge variation in terms of profitability especially over the recent past, it has been able to register some impressive financial performance during some financial years. For instance, the airline was able to register a ‘before tax profit’ of $975 during the financial year 2014/2015 (Qantas, 2015). However, the “after tax profit” during the same financial year was considered to have raised to the level of $560 million (Qantas, 2015). Furthermore, the earning during the second half of these financial year was considered to be the best especially due to the fact that there was improved performance among the employees. As a result, the move ended up attracting more passengers to use Qantas Group airline services.

On the other hand, the airline has also been able to register improved cumulative benefits especially towards the end of 2013. According to Qantas (2015) it was able to register an improved performance of benefits, which accumulated to $1.1 billion. In short, such improvement indicated a considerable improvement in the generated revenue while at the same time reducing the overall costs being incurred.  In short, some of the financial/economic benefits associated with Qantas Airline during the financial year are indicated below;

Earnings before interest and tax were equal to $975 million

Earnings after interest and tax were equal to $560 million

The return on capital investment was equal to 16%

The operating cash flow $2 billion

The Net Free cash flow was equal to $1.1 billion

The realized transformation benefits totaled at $894 million

The reduction in the net debt for the airline was $1 billion

The statutory earning per share (EPS) stood at 25.4% (Qantas, 2015)

The analysis of the financial information indicated above is a clear sign that Qantas Airline is conduct a solvent business. This is due to the fact that it has been able to register a net profit of $560. The upholding of the assertion comes along despite the fact that the group has debt of $1 billion. The amount of profit it earned during the financial year is a clear indication that its ability to repay its loan is not a challenge at all due to the fact that its net profit is more than a half of the total debt. As a result, this means that it is possible for Qantas to wind up its overall debt within a period of 5 to 10 years after which it can start enjoying the net profit without the worries of repaying any form of debt.

Social performance on Corporate Social Responsibility Report

As noted earlier, Qantas is one of the most effective organizations in terms of ensuring that the social welfare of its employees, passengers, and other community members are taken care of properly (Drew, 2013). The major objective of carrying out the above mentioned initiative is to make sure the airline does not taint its image both locally and internationally. First, its initiative to allocate some working positions to the Aborigines and Strait Island people is one of the best social initiative the airline has ever made. Since its inception, the initiative has managed to offer 1-2% of its total job positions to the two marginalized communities (Chang et al., 2015). As a result, the step has enabled the airline to gain an Australian image where all members of the community are deemed to have equal chances of working there. Apart from that, the move has enable Qantas to have a boost in its total approval rating ratings among  the Australians as the number one choice whenever they want to travel by air. The group has also tried to ensure the airline has created a program that can help to create a sustainable wage system despite there being destructive external forces such as the recent world inflation. The move has not only enable the employees not only to receive their salaries but also enable them to have bonus whenever they able to complete a full financial year. The major aim of creating such an important program is to make sure the employee’s social welfares are protected despite there being strong forces of economic inflation that have ended up affecting many organizations globally.

Apart from that, Qantas Airline has also moved in to create an effective employees agreement programs in in order to create good industrial relationships. For instance, one of the most effective aspects that can be used to create a proper engagement strategy between the employees and the airline (Drew, 2013). As a result, the creation of the agreement has enabled the both sides to a proper, effective, and constructive dialogue between the stakeholders and the union groups such as those formed by the employees. For instance, the creation of the ‘Enterprise Bargaining Agreements (EBA)’ has enable Qantas Airline to be transformed in a positive manner where the organization has found it safe to initiative most of its transformative agendas (Chang et al., 2015). As a result, the creation of better working terms and conditions has ended up rising the morale of the union groups. As a result, Qantas has continued being highly effective compared to the other rivals in other global parts. The employees are also sign the agreement in order to be covered for at least a wage freeze period of 18 months. This means that they are assured of their job security despite the community running and operating through hardships such as the external economic forces. Moreover, the move also means that the company is also able to keep on creating an effective way of dealing with all grievances raised by their employees thoroughly and in good time.

The airline’s board of governance has also ended up creating a proper ethical procedure for any employee who may have important information that may unearth a person that have been involved in any form of organizational impropriety (Chang et al., 2015). Apart from that, the airline understand that any form of whistleblowing may end up endangering the life of such an employee. As a result, it has ended up creating a proper protection procedure where such employees will remain enormous as their real identity will never be revealed at any given time. In short, the ethical procedure is meant to instill fear and to promote financial austerity among the top management officials of the organization. Contrarily, the same rule prohibits any of the Qantas Airline employee to engage in any form of trading between organization and another party (Qantas, 2015). At this juncture, they are not supposed to be involved, in any form, in taking care of the financial security of the company in case they are in possession of any form of private and confidential information. The move is deemed important due to the fact that it helps to ensure there is protection of the available and crucial information concerning the company.

The best performing employees are properly remunerated in order to promote a hard working culture among the whole Qantas Airline community. The major aim is to promote proper working ethics in a manner such that there would be effective customer experience. The airline understand that the improvement in the delivery of services can help to improve the image of the whole organization. As a result, this would act as a very important step that can help to transform the operations of the business, thus, transforming it in a proper and positive manner. Furthermore, the move is deemed highly important in trying to create a proper way of improving the overall profit margin of the airline (Chang et al., 2015). Therefore, this is the major reason Qantas Airline strives at supporting a positive employees’ culture where they are made to believe they have a share of the company. The major aim is to create a sense of ownership among the employees in order to promote a strong sense of working. They never feel excluded by the top management teams, as well as other important shareholders (Drew, 2014). In short, some of the social benefits the employees as set to gain through Qantas airline include the non-cash benefits, Base Pay or cash benefits, and cash bonuses, which also called STIP. These benefits are evenly spread on the basis of different organizational aspects such as in the case of the injuries, falling sick, holiday seasons, and during the retirement period.

Corporate Social Responsibility Report and Environmental Performance

Qantas Airline has also created a set of rules that tends to take care of its environmental obligations. It is worth understanding that the group does not carry out its business operations as an autonomous body but rather as part of different international and regional communities. For instance, its airline operations have to be governed by the environmental sustainability laws enacted by bodies such as the Commonwealth, the Territory, and the State. Furthermore, Qantas has also tried to adhere to the sustainability rules set by the international environmental regulation commission and legislation commission (Qantas Group, 2013). In short, the main purpose of the main purpose for the adhering to such important rule is to make sure the organization is not affected, at all during its entire operation. Apart from that, it understand that failure to adhere to the set environmental conservation rules may not only attract fines but also taint its international image (Qantas Group, 2013). In short, the proper incorporation of the environmental rules, by creating management avenues that improve the operations of any organizations, have been deemed ones of the ethical business practices.

For instances, Qantas Airline has come up with proper environmental regulation policies in order to sensitize the employees, the management team, the stake holders, and the immediate community on the need of conserve it (Drew, 2014). For instance, it makes sure the aircrafts are properly maintained and checked before use in order to make sure they do not pollute the environment (Qantas Group, 2013). The major aim is to make sure it has maintained high standards of environmental performance as one of its major objectives, thus, qualifying it to be among the top most organizations to promote the organizational sustainability (Qantas, 2015).  The environmental sustainability program has not only been incorporated among its employees but also among its major national and international partners. Here, it pays special focus on issues such as the health, safety, security, and the general environment. This is due to the fact that it wants to minimize the overall pollution is cause to the environmental and to the rest of the community it comes into contact.

The group has come up with a special board of committee that has been fully entrusted with the mandate of over-sighting the proper compliance and implementation of the environmental rules (Qantas Group, 2013). Therefore, the board is supposed to make sure all departments have complied with the set environmental sustainability rule while at the same time ensuring that proper corrective measures have been carried out in order to correct any department that defies such rules. The formation of such special committee is a clear indication the group has taken the environmental conservation issues with the much seriousness they deserve. This is due to the fact that the committee is able to initiate a proper working procedure where adequate systems end up being enacted (Chang et al., 2015). It is also responsible for exposing any form of flaws that may exists during the enactment of the environmental conservation program (Qantas Group, 2013). Moreover, it also helps to make sure there is maintenance of a steady path for the measurement of the environmental performance for the Qantas airline at all times. The groups has also made sure there is holding of proper licenses, as well as permits that depicts it is willing to comply with the set environmental conservation rules and procedures (Drew, 2014). Apart from that, it also makes sure there is effective compliance to the set environmental conservation rules among its major partners. For instance, it has also been very active in participating in major environmental conservation forums both locally, as well as internationally. The major aim is to create a proper working ground and also to promote awareness about the importance of taking care of the environment in order to make sure there is increased security for the posterity.

Corporate Social Responsibility Report Conclusion

Based on the analysis carried out in the three sections mentioned above, it is worth pointing out Qantas Airline is one of the best option an investor can worth investing in. This is due to the fact that the airline has been determined to have a positive business operation. Its capability to register positive net profit prospects is a clear indication the investor stands a chance of earning form the shares he/she will have invested. Contrarily, the airline has also been ranked as one of the best in terms of adhering to the social rule. The employees are offered enough freedom to enhance their performance and hence more growth of the business prospects. Likewise, Qantas is also very sensitive about matters concerning the environmental awareness, principles, and regulations. This means that it has continued improving its international and local business image, thus, standing a chance of expanding its passengers’ base.

Corporate Social Responsibility Report Bibliography

Chang, D., Chen, S., Hsu, C., & Hu, A. 2015. Identifying Strategic Factors of the Implantation CSR in the Airline Industry: The Case of Asia-Pacific Airlines. Sustainability, 7(6), 7762-7783.

Drew, C. 2013. The Spirit of Australia: learning about Australian childhoods in Qantas commercials. Global Studies of Childhood, 1(4), 321.

Drew, C. 2014. Pacific Southwest Airlines: The First Large Discount Airline. Deregulation and Competition: Lessons from the Airline Industry, 101-122.

Qantas Group. 2013 Our Commitment to Environmental Sustainability. Qantas Group Airline. 1-14.

Qantas. 2015. A Strong, Sustainable, and Future: Qantas Annual Report 2 0 1 5. Qantas Airline Group. 1-104.

 

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