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Module Code: ACC9027M  

Module Name: Sustainability Reporting and Business Ethics 

Lecturer: Enoch Opare Mintah/(Name of Seminar Tutor) 

Assignment Requirement:WAW25940THREEDIFFERENTASSIGNMENTS

Critically evaluate and discuss the Environmental, Social and Governance (ESG), Corporate Social Responsibility (CSR), and Sustainability Practices of Emirates Airlines.  

 

Introduction

Emirates is one of the largest and most well-known airlines in the world. Its base is in Dubai, and it is the flag carrier of the United Arab Emirates. It is owned by the government of Dubai’s Investment Corporation of Dubai (Zamoum and Serra Gorpe., 2020). It was established in 1985  and has rapidly grown over the years. The airline operates wide-body aircraft with modern and luxurious levels and comfort and a range of amenities. This report consists of various practices of Emirates Airline like environmental, social, governance, corporate social responsibility and sustainability practices (Emirate Airline 2023). This report also describes the ethical issues of Dax, about the ethical organization- Kawukudi Group of Companies and the changing environment related to it. 

Emirates Airline Environmental Practices 

Fleet Modernization- Emirates has invested in a modern and fuel-efficient fleet that has Airbus A380s and Boeing 777s (Emirate Airline 2023). The aircraft is designed in such a way that it provides improved fuel efficiency and consumes less fuel as compared to the older aircraft and reduced noise levels too. It also focuses on the latest generation, such as Boeing 777X, which is more efficient and consumes less fuel. 

Fuel Efficiency Initiatives- Emirates has introduced and implemented various measures and techniques to enhance fuel efficiency and reduce the emissions related to the flight routes (Mohamed., 2023). They also implemented weather radar systems which have influencers to avoid turbulence and also optimize fuel consumption. The airline also conducts regular operational reviews and also makes sure to identify the issues and opportunities related to fuel savings and efficiency. 

Sustainable Aviation Fuel (SAF) Adoption- It is related to sustainable aviation linked to the airline to reduce the environmental impact and adoption of various operations and specific targets (Emirate Airline 2023). In 2018, the airline operated a flight which was a blend of conventional jet fuel along with SAF. It also included specific targets and incorporated many options and updated all the information that is required.

Waste Management and Recycling- Emirates empathizes with the various waste management practices that are related to the environmental footprint. It is the implementation of various recycling programs to segregate and minimize environmental hazards (Emirate Airline 2023). The recycled waste that is generated during the flights and the ground operations are also segregated to reduce the environmental footprints (Madhi et al., 2022). Emirates has also tackled steps towards the reduction of various single-use plastics on board its flights and also replaced plastic straws with eco-friendly options. 

Environmental Partnerships and Collaborations- Emirates has collaborated with various organizations which are related to environmental conservation efforts and has also partnered with the NGOs like the Dubai Desert Conservation Reserve etc., that contribute to the various conservation projects and also which is related to the promotion of sustainable practices.  

Figure 1- The Triple Bottom Line (TBL) framework

(Source – Mohamed., 2023)

The Triple Bottom Line (TBL) framework can be used to explain the various aspects of the environmental sectors. IoT is related to the assessment of the Emirate’s impact on the natural environment. The initiatives of the airlines to optimize the flight routes and also to adopt advanced engine technology, reduce the use of carbon footprint and contribute to the minimizing of the reduction of cartoon water and promote recycling and also waste management (Fayyad and Byttebier., 2021). The reduction of single-use plastics is also related to the adoption of environmentally friendly objectives and also demonstrates a commitment to environmental conservation as resource efficiency. 

Emirates Airline Social Practices 

A model that can be applied to understand Emirates Airlines’ social practices is the Corporate Social Responsibility (CSR) framework which reflects the commitment of the organization to be ethical and responsible and its commitment to the operating sectors. 

Stakeholder Engagement: The social practices initiatives include the engagement of the various stakeholders, which includes the employees, customers, local communities, and suppliers(Mohamed. 2023). The airline company can adopt the strategies in order to ensure the various employment practices are fair, various diversity-related issues and inclusion and also prioritize the well-being of the people and the work culture (Pereira, Lohmann and Houghton., 2021). It is important to engage in the local communities via partnerships, sponsorships and also social initiatives which can contribute to the positive social impact of the company. 

Ethical Business Practices: These businesses include ethical practices such as through their policies and actions. The policies include fair labour laws, ensuring responsible sourcing and also for fair trade (Emirate Airline 2023). Policies by operating the integrity and transparency, Emirates is able to build trust and contribute to the ethical business and also to its stakeholders within the aviation industry. It also creates a positive environment for its employees(Mohamed. 2023). It also invests in training and development programs which are related to the necessary skills and knowledge that are required to support the compensation packages and also job satisfaction. This company also prioritizes diversity and inclusion and also fosters an inclusive and equal workforce. 

Figure 2- CSR Framework

(Source- Pereira, Lohmann and Houghton., 2021)

Philanthropy and Community Support:  The social practices of the Emirates can be extended by community support and philanthropic initiatives (Gharios and Yahchouchi Abi Chaker., 2020). This also includes various charitable donations, partnerships with non-profit organizations, and maintaining the standards and laws. Volunteering efforts and also contributing to community development (Alhanouti and Farrell., 2021). This can be invested in the social causes which are aligned with its values and also reflects a positive impact on the communities who are operating it. 

Customer Satisfaction and Safety: The social practices of Emirates peropor5irtoes customer satisfaction and safety. It also deals with the maintenance of high-quality issues and also safety standards; they also address customer queries and questions and are concerned about their feedback(Pereira, Lohmann and Houghton, 2021). It can also enhance the overall customer experience in flying with them,  and also emphasizes customer satisfaction and contribute to the building of brand loyalty and also building positive relationships with the customers. 

Supply Chain Responsibility: Emirates also considers the supply chain management related to ensuring fair practices among its suppliers and also promoting sustainability. It is related to the working of the suppliers who adhere to the social responsibilities and also its standards that demonstrate the commitment that is responsible to the business practices and also which are beyond the direct operations (Jahmani, Bourini and Jawabreh., 2020). The company also invests in various programs to attract talent and also to retain competitive compensation, and enhance the customer experience through personalized services and also innovative offerings. 

The competitor of Emirates is Etihad Airways, and it also prioritizes employee well-being and also customer satisfaction (Emirate Airline 2023). It also invests in the enhancement of customer enhancement and sponsors various concerts, and has implemented measures to reduce fuel efficiency, reduced emissions and also optimize flight operations. 

Emirates Airline Governance Practices 

A model that can be used in the “Three Lines of Defense ” model for the Emirates Airlines governance practices, this model includes the effective risk management and governance of the organization. 

Emirates’ Corporate Governance Structure: Emirates operates under a government structure that emphasizes accountability and also strategic decision-making. It allows the airlines to have a board-based governance model, which is having a board of members and directors that are responsible for overseeing the company and also its operations and strategic conditions (Kucsera., 2021). It is wholly owned by the government of Dubai’s Investment Corporation and follows the board-based model. It also consists of various diverse backgrounds and expertise, which ensures a well-rounded perspective, especially in the decision-making process. 

Transparency and Accountability: Transparency is important throughout the reporting practices of Emirates. The company also established some the practices like annual reports and financial statements, which are provided with a detailed account of the information that is shared about the financial performances, the key initiatives and also the adherence to the regulations and financial health of the airline is also discussed(Pereira, Lohmann and Houghton., 2021). These reports are handed over to the stakeholders in order to get insights into the analysis and process of corporate governance. Emirates is also committed to transparency, which helps to establish better customer relationships and also helps to build trust with the stakeholders that ensures access to the essential information that it needs, especially on the basis of financial health. 

Risk Management: Emirates gives importance to the risk management strategies that should be involved in strategic management planning ( Bashir et al., 2022). The airline mitigates the risks related to the safety of its customers and employees and the regulatory changes, geopolitical factors, economic volatility, etc. It also conducts various risk assessment tests and regulations that are implemented to measure the proactive factors that are required to manage the risks. Emirates also aims to safeguard its operations and also ensure the safety of its passengers and customers by prioritizing risk assessment and management for the well-being of its passengers and employees. 

Figure 3- Three Lines Defense Model

(Source- Alalawi, Issa,  and ElBaraz., 2022)

Ethics and Compliance: Comparison to a Competitor: Emirates maintains a strong focus and attention to ethics and compliance.s it dewscrfe4uivwed the Cide of Business Conduct and Ethics that also establishes the standards and also the principles are related to the employees that are expected to be upheld(Pereira, Lohmann and Houghton, 2021). This business conduct code also implements the areas like anti-corruption, conflict of interest and also for computation for the protection of confidential information. It is also related to the commitment of the airlines regarding the various ethical practices, such as promoting integrity and responsibility towards the behaviour of the organization. 

Comparison to a Competitor: While comparing with the other competitors like Etihad Airways, it also offers a relevant comparison. Etihad Airways also follows a board-based governance structure which also empathizes with transparency and communication skills(Pereira, Lohmann and Houghton, 2021). IoT also provides insights, annual reports and financial statements and places a strong emphasis on Emirates for risk management practices and has implemented various measures to mitigate them. 

Airline Corporate Social Responsibility (CSR) Practices 

Carroll’s CSR Pyramid model can be used to discuss this, such as-

Emirates’ Sustainability Initiatives: Emirates Airlines are subjected to implement various sustainability practices that are implemented to minimize its environmental impact. Emirates has invested in a modern and fuel-efficient fleet that is having Airbus A380s and Boeing 777s (Emirate Airline 2023). The aircraft is designed in such a way that it provides improved fuel efficiency and consumes less fuel as compared to the older aircraft and reduced noise levels too. It also focuses on the latest generation, such as Boeing 777X, which is more efficient and consumes less fuel. Emirates has introduced and implemented various measures and techniques to enhance fuel efficiency and reduce the emissions related to the flight routes(Alalawi, Issa, andElBaraz., 2022). They also implemented weather radar systems which have influencers to avoid turbulence and also optimize fuel consumption. The airline also conducts regular operational reviews and also makes sure to identify the issues and opportunities related to fuel savings and efficiency. It is related to sustainable aviation linked to the airline to reduce the environmental impact and adoption of various operations and specific targets (Alalawi, Issa,  and ElBaraz., 2022). In 2018, the airline operated a flight which was a blend of conventional jet fuel along with SAF (Sustainable Aviation Fuel). It also included specific targets and incorporated many options and updated all the information that is required.

Community Engagement: The local communities that are engaged through various initiatives and partnerships are sponsored by the airline company to contribute to community development and also to promote cultural exchange (Al Saed, Upadhya and Saleh. 2020). This also includes various charitable donations, partnerships with non-profit organizations, and maintaining the standards and laws. Volunteering efforts and also contributing to community development. This can be invested in the social causes which are aligned with its values and also reflects a positive impact on the communities who are operating it. 

Figure 4 – Caroll’s CSR Pyramid Model

(Source- Al Saed, Upadhya and Saleh., 2020)

Employee Well-being: Emirates prioritizes its employees well being and fosters a positive work environment. It includes factors like providing various opportunities to its employees and ensuring employee growth and skill enhancement (Al Saed, Upadhya and Saleh., 2020). It also provides information related to competitive compensation packages and also various benefits related to healthcare facilities and also various retirement plans. It helps in supporting employee welfare and also fosters job satisfaction. Emirates Airlines also promotes diversity in their workforce and also inclusion which helps in better communication strategy and management practices. 

There are two initiatives taken by the corporate social activities of Emirates Airline, those responsible for contributing to the environment and community and united for the wildlife culture. The emirates groups responsible for the part serve the community. The Global reach of this Emirates airline is achieving the excel tensstead. The reach is across all continents in this world (Al Saed, Upadhya and Saleh., 2020). The Emirates airline built a school for the need able market rise. As a business facility, the Emirates airline understands the benefits and power of its community. They stand for those species which are hunted by the hunter for their horns, teeth, and hair. Emirates airline tries to collaborate with the global and governments operation. Emirates airline tries to preserve the future generation of wildlife (Emirate Airline 2023).  

Emirates Airline Sustainability Practices 

Emirates Airlines is one of the leading global airlines, and being among the top airlines in the world, it adopts practises that promote sustainability, inclusion and social responsibility. They focus on three key aspects when it comes to looking after the environment (Al Remeithiet al., 2022). e.g., reducing emissions, responsible consumption and preservation of wildlife and their natural habitat. The Environmental Sustainability Performance of Emirates based on third-party reports shows how it performs based on the global standard.

   

So, it can be seen that although the Emirates emits lots of CO2 every year to perform its operations, it is also a part of creating renewable energy resources (Mohamedet al., 2023).

Figure 5: Environment sustainability performance of Emirates airline

(Source: Mohamed et al., 2023)

 

Emirates Group is responsible for generating employment directly or indirectly for individuals not only in the Middle East but due to its supply chain spanning that reaches individuals all across the globe. Along with building business opportunities, it also works for the betterment of the lives of the poor and the needy and promotes global sports teams and building a global cultural activity (Chen et al., 2021). It has an anti-wildlife trafficking policy and also a conversation of desert policy. In fact, it maintains the requirements for ISO 14001-2015 certifications standard. Emirates is also boasting with their figures on women empowerment, where more than 50 per cent of the newly onboarded workforce, and also those who were promoted or appreciated, were women (Al Saed, Upadhya and Saleh. 2020). With the increase in living costs in the lands where they operate, they have been increasing salaries, perks and benefits to their employees. In terms of safety standards in the operation of such a complex and huge organization, Emirates has obtained a striking zero findings (perfect score)in safety standards according to the IATA Operational Safety Audit of the year 2022-23 (Emirate Airline (2022).

Emirates has been striving to consume lesser amounts of fuel and still be profitable by increasing the efficiency of its operations. They have built a vertical farm that is the world’s largest and produces more than 1 million kg of greens, at the same time decreasing water usage by more than 90%.  

 

The governance of the Emirates is also well-rounded, as they have well-defined roles for different job responsibilities.At the same time, they have cross-functional teams to monitor the status and compliance maintained by the whole organization. The company also have very well-defined dos and don’ts for their employees(Al Saed, Upadhya and Saleh., 2020). They have an independent internal auditing committee on top of it to ensure that no breaches happen anywhere about the policies and regulations. Some of the notable policies amongst the aforementioned are anti-bribery, anti-slavery and anti-money laundering policies, code of conduct, data privacy and security policies.

Comparison of ESG and CSR of Emirates and Qatar Airlines

CSR

ESG

 

Requirement (a) – A company with many ethical issues applied to Dax 

The Kawakudi Group of Companies is a company of multinational corporation in manufacturing which provides a number of services and products. Dax has newly joined this company as a trainee, and he does not know anything about this company. After a few days of joining, Dax found that the Kawakudi Group of Companies was doing some unethical activities. Dax understands that the Kawakudi Group of Companies uses the dried need people to provide job and job security at a low amount of salary (Borenstein et al., 2021). Dax notices every day that the employees are working overtime and are exploited; those employees are unable to speak about their problems to the companies. The employee of this Kawakudi Group of Companies is facing the fear of losing a job or applying condition applied in their work. Dax also finds the unethical issues company, which is the Kawakudi Group of Company Transport, deliberately remotes village people as a worker at cheaper rates of salary. Dax works in the finance departments of the Kawakudi Group of Companies, and he understands that the company is reduced there costs by this method (Drolet et al., 2023). Dax also recognizes that most of the workers of the company are not permanent, and the company does not provide any type of benefits to their work, and also not provide payment for their holidays, and does not provide any security about their job. The DAX also recognizes that 75% of employees do not get a proper salary in the last two months.`Dax also recognized that the Kawakudi Group of Companies used children of this poor village as child labourers to clear their waste site of plants (Asai et al., 2020). Dax also recognizes that the company not providing any type of salary to these children; they only provide a one-time meal to those children who work as child laboured for the Kawakudi Group of Company. There are strong rumours about the Kawakudi Group of Company, which is the company failed to provide proper safety and health to their workers and also rumours that the Kawakudi Group of Company also failed to give the proper salary to the workers and well-being. Dax also approaches the ai and Saf to discuss the unethical potential issues of the Kawakudi Group of Company. 

Requirement (b) – Discuss if Dax should continue to work at Kawukudi Group of  Companies. 

This case study is about some ethical issues that occurred in the Kawakudi Group of Company. In that case, Dax’s family wants that Dax can try to take other companies’ opportunities instead of continuing with this company (Fathi et al., 2023). But the main reason for the continuation of his work with the company is dax applied for the 609 positions in this company. Dax should change the work culture and introduce new strategies for the Kawakudi Group of Company business, which helps to mitigate the unethical issues that occurred in this company. Those strategies must be taken by the Kawakudi Group of Companies, as discussed below.

Initiative in Change Management: The company needs to push to change the ethical climate of the company (Khan et al., 2021). The management of the company needs reduction the workload from the employees of this Kawakudi Group of Company. 

Hinden user agreement terms remove:  Most of these employees working at the Kawakudi Group of Company are from a poor village. The maximum number of employees of this company are illiterate(Mahoney et al., 2022). The company try appoints those employees with some hidden terms which give huge benefits to the company, but the poor workers are affected by those terms and agreements. The Kawakudi Group of Company also needs to remove the zero-hours contract from their company. 

Unethical business practices improve: The Kawakudi Group of Company is done some unethical business practices which are affected the poor employees of this company (Mahoney et al., 2022). The company needs to ensure that it provides the proper salary to its employees and gives the proper work culture to them. The company also ensures that they provide the payments in holiday to employees. The company also ensures that they also provide the proper safety and health towards their employees. 

Child labourers are strictly prohibited: In the company waste site company recruits some child labourers from a near poor village. The company use those children to clean the waste site of the plant and not provides any type of salary. The company only provides one type of meal to those children. The Kawakudi Group of Company must ensure that child labour is strictly prohibited. Child labour is a crime in every country; if a company does not stop this child labours employment, the government can take strict action against this company. If those strategies are taken by the company, then Dax should be continued its work with this company.  

Requirement (c) – Kawukudi Group of Companies changing and creating an ethical organisation 

For became an ethical organization Kawakudi Group of Companies needs complete some stages,

Ethica culture pillars: the company ethics culture of pillars are divided into some points, which are,

Explicit values: practice and strategies should explain by this principle which is shared widely with the organization. A well-decorated statement of the mission can help to achieve ethics for the Kawakudi Group of Company (De Bakker et al., 2019). Leaders of this Kawakudi Group of Company take the initiative or implement new strategies into their business, which provides change and helps to create the Kawakudi Group of Company as an ethical organization. 

Ethical leadership: Ethical leadership is the most important thing for any organization that can become a successful ethical organization. In this case, the Kawakudi Group of Company leader must take some points which help the organization become an ethical organization. Those points are fairness, which means the organization leader needs to take fair decisions towards their employees of this organization; sharing power is one of the important things the leaders take the initiative about this (Vallaster et al., 2019). The leader must be organized the employees of this, organisation divide the task properly for each employee and ensure that no employees can take workload pressure. Company leaders must provide ethical guidelines to their employees, which helps to organization become an ethical organization. 

Employers’ readiness to change: The change occurred to the readiness of the employees of this organization. This employee readiness helps to become a successful ethical organization for the Kawakudi Group of Company. 

Effectiveness of organizational culture: The organizational culture is mainly affected by some points. Those points are changed in the organization management system, achievement goals, team member coordination, shared benefits and values, and the orientation of the customers  (Hiwa et al., 2021). The management of the organization needs suitable and ethical decisions for the employees, which helps to become an organization in the ethical organization. Teamwork coordination is eventually needed for this ethical organization. If the coordination between team members is good, then the organization can easily achieve its goal.  

Figure 6: changing and Creating an ethical  organisation

(Source: Hiwa et al., 2021)

From the comparison that has been made in between emirates and Qatar airways it is clearly stated that both being one of the largest airline companies is continuously heading towards being more sustainable and effective that will help the company to grow in future. With respect to ESG it has been found that Emirates use fleet mordernisation to maintain the environmental practices on the other hand, Qatar uses various fuel efficiency and sustainable programs. 

Conclusion 

These reports conclude that the environmental practice of Emirates airline, social practices of emirates airline, governance practices of emirates airline, social responsibility practice of the emirates airline,helps in supporting employee welfare and also fosters job satisfaction. The employee of this Kawakudi Group of Companies is facing the fear of losing a job or applying condition applied in their work. Dax also finds the unethical issues company, which is the Kawakudi Group of Company Transport, deliberately remotes village people as a worker at cheaper rates of salary.Ethical leadership is the most important thing for any organization that can become a successful ethical organization. In this case, the Kawakudi Group of Company leader must take some points which help the organization become an ethical organization.

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