Corporate Responsibility in Multinational Corporations | Qatar Airways

A critical introduction to the company’s approach to corporate responsibility and sustainability…

Qatar Airways has demonstrated a strong commitment to corporate responsibility and sustainability through its ‘WeQare’ Corporate Social Responsibility (CSR) program. This program, recognized with the 2022 Corporate Social Responsibility Program of the Year Award at ‘AidEx’ 2022, focuses on four core pillars: environment, society, economy, and culture.

One notable initiative within this program is the Chapter 1 program launched in 2020, where Qatar Airways Cargo transports ‘1 Million Kilos’ free of charge for eligible charities involved in humanitarian aid and medical supply transportation globally. The airline’s dedication to sustainability is evident in its efforts to protect the natural environment and contribute to global economic and social development.

Qatar Airways also engages in various social projects and community support initiatives, such as supporting the “Save the Dream” program and the “Educate A Child” global initiative aimed at providing quality primary education to out-of-school children worldwide.

Additionally, the airline has developed a comprehensive corporate sustainability framework, emphasizing economic, social, and environmental topics that are crucial to its business operations.

Despite challenges like the ongoing blockade against Qatar, Qatar Airways remains committed to corporate sustainability, investing in projects that align with its values and stakeholder expectations.

Through strategic partnerships and a focus on environmental sustainability, health, safety, and diversity, Qatar Airways continues to demonstrate resilience and leadership in the aviation industry.

The airline must explore innovative solutions, such as investing in sustainable aviation fuels or optimizing flight routes, to mitigate its carbon footprint. Striking this balance ensures long-term success without compromising the planet.

With reference to the triple bottom line (and other appropriate theories), the key dilemmas involved in being an ‘ethical’ company are laid out below. they are Theoretically grounded and relate to BOTH the sector and organizational context outlined in the scenario…

The key dilemmas in being an ethical company, as outlined by the triple bottom line (TBL) framework, relate to balancing the often competing priorities of profit, people, and planet. Qatar Airways, as an airline, faces particular challenges in this regard due to the industry’s high fuel consumption and environmental impact.

Profit vs Planet

The aviation sector is a major contributor to greenhouse gas emissions, accounting for nearly 2% of global CO2 output. Airlines like Qatar Airways face pressure to reduce their carbon footprint through measures like fleet modernization, fuel optimization, and sustainable aviation fuel (SAF) adoption. However, these initiatives require significant upfront investments that can impact short-term profitability. The TBL approach suggests that companies should not prioritize profit at the expense of environmental sustainability. However, airlines operate in a highly competitive industry with thin margins, making it challenging to absorb the costs of decarbonization without passing them on to customers or shareholder. Balancing profit and planet is a key dilemma.

People vs Profit

Treating employees fairly and investing in their well-being is another key tenet of the TBL. Qatar Airways should provide competitive wages, benefits, training, and opportunities for advancement to attract and retain talent. The airline should also ensure safe working conditions and promote diversity and inclusion. However, these people-focused initiatives can increase labor costs and reduce profit margins if not implemented strategically. Airlines must find ways to balance employee satisfaction with financial performance. Outsourcing non-core functions, automating repetitive tasks, and optimizing staffing levels are some ways to manage labor costs while still investing in people.

Planet vs People

Reducing environmental impact can sometimes come at the expense of employee well-being or community relations. For example, layoffs due to fleet downsizing or route cuts to lower emissions could negatively impact local economies and employee morale. Conversely, investing in green technologies may require retraining workers or shifting to new suppliers, disrupting existing relationships. The TBL suggests that companies should consider their impact on all stakeholders, not just shareholders. Qatar Airways should engage with employees, unions, and local communities to understand their concerns and find mutually beneficial solutions. Open communication, job retraining, and community investment can help mitigate the social costs of environmental initiatives.

Ultimately, the most successful and ethical companies will be those that find ways to align profit, people, and planet in a virtuous cycle. By investing in sustainable technologies, employee well-being, and community engagement, airlines can reduce their environmental footprint, attract top talent, and build resilient business models for the future.

Drawing upon value chain and resource-based view, the company’s source(s) of competitive advantage are discussed…

Value Chain Analysis

1. Product Attribute Differentiation: Qatar Airways differentiates itself through various attributes like exceptional customer service, a modern fleet with fuel-efficient aircraft, and a strong brand identity. These factors contribute to a unique value proposition for customers, setting the airline apart from competitors.
2. Customers’ Willingness to Pay: Understanding customers’ willingness to pay is crucial for pricing strategies. By offering a superior flying experience, Qatar Airways can command premium prices, leveraging customers’ perceptions of value and quality.
3. Human Capital: Investing in human capital is a key source of competitive advantage for Qatar Airways. By hiring, training, and retaining skilled employees, the airline ensures excellent service quality and operational efficiency, enhancing the overall customer experience.

Resource-Based View Analysis

1. Fleet Modernization: Qatar Airways’ fleet of fuel-efficient aircraft represents a valuable resource that contributes to cost savings and environmental sustainability. This resource is rare and difficult for competitors to replicate, providing a sustainable competitive advantage.
2. Brand Identity: The strong brand identity of Qatar Airways, characterized by luxury, quality service, and a modern fleet, is a valuable intangible resource. This brand reputation attracts customers and fosters loyalty, giving the airline a competitive edge in the market.
3. Employee Expertise: The skilled workforce at Qatar Airways is a valuable resource that contributes to operational excellence and customer satisfaction. By investing in employee training and development, the airline enhances its service quality and efficiency, creating a competitive advantage

Qatar Airways’ competitive advantage stems from its focus on product attribute differentiation, understanding customers’ willingness to pay, and investing in human capital. Leveraging resources like a modern fleet, strong brand identity, and skilled workforce, the airline positions itself as a leader in the aviation industry

Strategic Proposal for Enhanced Competitive Advantage and B-Corporation Score…

Following is a strategic proposal for Qatar Airways to enhance its competitive advantage and B-Corporation score:

Enhance Competitive Advantage

1. Continue investing in fuel-efficient aircraft to reduce emissions per seat by 15-20% with each new generation of planes. This will lower operating costs and environmental impact.

2. Implement more fuel optimization projects like weight reduction, route optimization, and single-engine taxiing. This can achieve significant fuel savings and emissions reductions.

3. Explore partnerships to accelerate sustainable aviation fuel (SAF) production and adoption. Qatar Airways should work with oil companies, airports, and industry groups to increase SAF supply and drive down costs.

4. Expand carbon offset and removal programs to provide customers options to mitigate emissions from their flights. This demonstrates environmental leadership and meets growing passenger demand for sustainability.

Improve the B-Corporation Score

1. Enhance employee well-being and satisfaction through initiatives like automated shift trading. This gives crew members more flexibility and control over schedules, promoting work-life balance.

2. Invest in employee training and development to build a skilled, engaged, and productive workforce. This improves operational efficiency and service quality.

3. Implement robust environmental management systems to monitor and improve performance across operations. Set ambitious targets for emissions reductions, waste minimization, and resource efficiency.

4. Increase transparency and reporting on sustainability initiatives and impacts. Publish detailed annual sustainability reports aligned with global frameworks like the UN SDGs.

5. Engage in more community investment and philanthropic programs that create positive social impact. Leverage Qatar Airways’ global reach to support causes aligned with its values.

By pursuing these strategies, Qatar Airways can strengthen its competitive position, reduce its environmental footprint, and demonstrate its commitment to stakeholders. This will enhance the airline’s reputation as a responsible corporate citizen and leader in sustainable aviation.

References

1. https://www.qatarairways.com/content/dam/documents/environmental/sustainability-report-2018.pdf
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