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Journal of Sustainable Tourism Vol. 19, No.

1, January 2011, 5977

The adoption of corporate social responsibility practices in the airline industry


Allan Cowper-Smith and Danuta de Grosbois
Department of Tourism and Environment, Brock University, St. Catharines, Ontario, Canada (Received 27 October 2009; nal version received 27 May 2010) This paper identies initiatives related to corporate social responsibility (CSR) in the airline industry and evaluates the overall state of their adoption as reported by members of the three largest airline alliances. Of 41 airlines, only 14 had annual CSR reports publically available in January 2009. Reports were analyzed using a qualitative content analysis approach. Results showed a stronger focus on environmental issues than on the social or economic dimensions of CSR. Of the seven major environmental themes examined, emission reduction programs predominate. Other environmental issues receive much less attention, with no single other initiative implemented by all airlines. Four social and environmental themes were found, including employee wellbeing and engagement, diversity and social equity, community wellbeing and economic prosperity. The data analysis supported the arguments made in the literature that the airlines report CSR initiatives using differing or inconsistent measurements, making evaluation and comparison of their performance and effectiveness difcult. Although a large number of airlines publishing CSR reports discussed their achievement of major goals (reduction of emissions, increasing community involvement or increasing workforce diversity), a much smaller number provided detailed information relating to specic initiatives implemented in order to contribute to these goals. Further, important issues for CSR research are posed in the paper. Keywords: airlines; air travel; corporate social responsibility; sustainability; reporting

Introduction Over the last 20 years awareness of the environmental impacts of human activity has increased signicantly. There is growing public expectation that companies should recognize their social and environmental responsibilities toward society and adjust their business practices to improve the sustainability of their operations (Juholin, 2004; McIntosh, Thomas, Leipzinger, & Coleman, 2003). Special attention is being paid to the tourism industry, which while potentially bringing economic and social benets to destinations can also have huge negative economic, social and environmental impacts. Given the forecasts of signicant future growth in tourism volume, there is increasing pressure on tourism companies to implement sustainability initiatives. Within the tourism industry, the airline sector is receiving notable attention, from both the public and the academia, because of its role in tourism development and its signicant environmental and social impacts. There is, therefore, a growing interest in the scope and effectiveness of efforts undertaken by airlines to mitigate their negative impacts and to contribute to sustainable development.

Corresponding author. Email: ddegrosbois@brocku.ca

ISSN 0966-9582 print / ISSN 1747-7646 online C 2011 Taylor & Francis DOI: 10.1080/09669582.2010.498918 http://www.informaworld.com

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Typically, corporate social responsibility (CSR) initiatives implemented by business organizations are made known to the public through voluntary communications, websites, media releases or corporate sustainability reports. The reporting of CSR performance has evolved over the last two decades; for many companies a one-page declaration of commitment to the environment and society has been replaced by more comprehensive reports providing detailed information on specic initiatives and their results. Lober, Bynum, Campbell and Jacques (1997) identied trends in reporting practice such as the increasing use of reporting guidelines produced by external bodies, the quantication of environmental impacts, the establishment of quantiable targets against which to assess progress and the inclusion of third-party verication statements to improve credibility. Despite the documented increase in the number and quality of CSR reports across different industries (Hooper & Greenall, 2005; Lober et al., 1997), reporting practice still shows low adoption in many sectors, and reports vary signicantly in their scope and depth (Holcomb, Upchurch, & Okumus, 2007). There is currently very little research addressing CSR practice and reporting in the airline industry. The industrys adoption of CSR has been relatively slow, with the number of airlines formally reporting CSR information consistently for more than 10 years being small relative to the size of the sector. According to information currently public, fewer than 10 airlines worldwide have been doing so. Lynes and Andrachuk (2008) note that CSR in the airline industry has yet to take prominence when compared with other sectors, for example the manufacturing industry. Therefore, the current state of adoption of CSR initiatives in the airline industry is largely unknown. The trade and academic literature conrms that an increasing number of airlines have been implementing sustainability initiatives and reporting sustainability performance in CSR reports. However, the few available studies of airlines reporting practices indicate lack of consistency due to different measurement frameworks and reporting structures and lack of capacity for inter-rm comparisons of CSR performance. This has severely limited the extent to which stakeholders may make informed decisions about the sustainability of an airlines operations (Gebel, 2004; Hooper & Greenall, 2005; Lynes & Dredge, 2006; Mak & Chan, 2006, 2007). The literature strongly recommends the development of a universal framework that would allow the evaluation and comparison of CSR initiatives among airlines (Gebel, 2004; Hooper & Greenall, 2005; Lynes & Dredge, 2006). It is also notable that previous research on CSR in the airline industry has focused on the reporting of CSR performance or major themes and goals. No research that investigates the scope and breadth of specic initiatives implemented to support CSR goals has thus far been conducted. The main objective of this study is therefore to create a framework of CSR goals and initiatives in the airline industry to allow comparison of the adoption of CSR initiatives across different airlines. The second objective of this paper is to evaluate the overall adoption of identied CSR goals and initiatives among the industry leaders on the basis of their current reporting practices. The airline industry and its impacts The airline industry is recognized as an important part of tourism system. In 2007, the total scheduled trafc carried by all airlines of the 190 member countries of the International Civil Aviation Organization (ICAO) was approximately 2 260 million passengers (ICAO, 2008, p. 6). Annual airline passenger trafc growth has been around 56% per annum from 1970 to 2000 (G ossling & Peeters, 2007). As Hanlon (1999) noted, very few industries have enjoyed such growth for such a sustained period of time. The airline industry is often viewed

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as a provider of social and economic benets through its support of leisure and business travel, job creation and the sharing of knowledge and experiences. However, the airline industry also imposes numerous impacts on the natural, social and economic environments, including contribution to climate change, air pollution, noise pollution, biodiversity loss, waste generation and other social and economic issues (Daley, Dimitriou, & Thomas, 2008; Hooper & Greenall, 2005; Lynes & Dredge, 2006; Vellas, 2001). Aviations contribution to climate change by fuel consumption and the resultant greenhouse gas emissions is widely recognized (Abeyratne, 2003; Becken, 2007; Daley et al., 2008; G ossling & Peeters, 2007; Holden, 2006; Hooper & Greenall, 2005; Lynes & Dredge, 2006; Mak & Chan, 2007). Although the airline industry is responsible for only 35% of human greenhouse gas emissions (Daley et al., 2008), its contributions to climate change will probably increase because of the projected rapid future growth of air transport (Button, 2007; Chan & Mak, 2005; G ossling & Peeters, 2007; Mak & Chan, 2007). Total aviation fuel use is estimated to increase by 3% per year (Abeyratne, 2003). The Intergovernmental Panel on Climate Change (1999) recently concluded that the increase in emissions from air travel due to projected growth would not be fully offset by the reduction in emissions achieved through technological advances. A signicant difference between aviation and other industries is that jet aircraft are the primary source of emissions deposited directly into the upper atmosphere (Duval, 2007). Research indicates that the impacts on climate change from air transport could be several times greater than the emission of greenhouse gases alone, because aircraft emit other gases in addition to carbon dioxide (CO2 ), and they emit these gases directly into a more climate-sensitive region of the atmosphere (Intergovernmental Panel on Climate Change, 1999). At an altitude of 10,000 meters, fuel can be up to 10 times more toxic for the environment than at the ground level (Keller, 2001). In addition to contributing to climate change, air transport also affects local air quality, particularly near airports (Daley et al., 2008; Hooper & Greenall, 2005; Lynes & Dredge, 2006). The major sources of pollution are ground transport to and from airports, aircraft emissions and aircraft maintenance activities such as refueling (Daley et al., 2008). Emissions from aircraft engines and power units include signicant quantities of particulate matter, which can contribute to human respiratory illnesses, as well as nitrogen oxides (NOX ) which cause respiratory irritation and acidication of ecosystems (Daley et al., 2008; Duval, 2007). In addition to emissions from aircraft, airports contain large numbers of airside ground support vehicles that also contribute to the worsening of local air quality (Daley et al., 2008; Hooper & Greenall, 2005). Another important environmental impact from aviation is noise pollution (Abeyratne, 2003; Daley et al., 2008; Hooper & Greenall, 2005; Mak & Chan, 2007). Aircraft noise nuisance is thought to be the most important issue that surrounds the operation and development of airports (Daley et al., 2008; Hooper & Greenall, 2005). Noise management is complex because of the different frequency and output from aircraft movements, their timing and predictability and the location of local populations near airports (Daley et al., 2008). As with many other large industries, the airline industry also has effects on biodiversity, as well as resource and waste production issues. Airports require large land areas which are hostile to wildlife because they are either paved or built (Daley et al., 2008). Wastes are created from aircraft maintenance, onboard service and airport operations, and there is the need to process and transport this waste (Chan & Mak, 2005; Hooper & Greenall, 2005; Lynes & Dredge, 2006; Mak & Chan, 2007). However, air travel delivers social and economic benets through tourism, business travel and the sharing of knowledge and experiences. It provides mobility and facilitates transportation of tourists to destinations around the world, which can contribute to poverty

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alleviation in developing countries (Air Transport Action Group [ATAG], 2008). In remote areas, other modes of transportation are generally unavailable, and aviation acts as the only public transport facilitating access to these destinations (ATAG, 2008; International Labour Organization, 2003). Air travel creates jobs and revenue (Chan & Mak, 2005). It is estimated that over 5.5 million people worldwide are directly employed in the airline industry, an industry with a turnover of $307 billion in 2000 (ATAG, 2008; ATAG & United Nations Environmental Programme, 2002). In addition, it is estimated that the airline industry generates a further 32 million jobs through indirect and induced impacts. These include indirect jobs from the purchases of goods and services from companies in the industrys supply chain, induced jobs from spending by airline industry employees and jobs from the airline industrys catalytic impact on tourism (ATAG, 2008). The last refers to tourism jobs that would not exist without the airline industry, for example at destinations that are only accessible by air. In terms of general social benets, air travel makes foreign travel accessible for increasingly large numbers of people; it increases understanding of different cultures and nationalities; it supports the development of multicultural societies; and it increases the quality of living standards by making goods available around the world at reasonable prices (ATAG & United Nations Environmental Programme, 2002). Although the airline industry delivers social and economic benets, there are also some shortcomings. These include economic leakage, i.e. the loss of earnings for the delivery of products and services at the destination (Daye, 2006). For example, airlines often contract ground operations at many overseas destinations to large multinational ground handling companies. These companies may employ local people at low wages in developing countries, and the prots and taxes are exported to the country in which the company is based. In addition, airlines in smaller developing countries cannot enter the market and successfully compete against established carriers, resulting in lost employment for local people. As illustrated in the case of Air Zimbabwe by Mutambirwa and Turton (2000) and Turton (2004), it is difcult for a small airline from a developing country to compete with the large airlines that have more resources and tend to monopolize airline trafc to and from developing countries. CSR in the airline industry: the concept and its reporting Given the airline industrys growth and signicant impacts, it has been increasingly pressured to undertake initiatives that would reduce or mitigate its negative impacts while maintaining or increasing its positive impacts. As a result, a growing interest in and commitment to the idea of CSR by airlines can be observed. CSR is an evolving concept which refers to the ethical behavior of a company toward society. At the World Business Council for Sustainable Developments (WBCSDs) Stakeholder Dialogue on CSR held in 1999, the formal working denition was developed: CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large (WBCSD, 1999, p. 3). The WBCSD (1999) stated that CSR was an integral part of sustainable development and divided CSR into the same three categories accepted as the main dimensions of sustainable development: environment, economy and society. The trade and academic literature conrms that an increasing number of airlines are implementing CSR initiatives in their operations and reporting them to the public (Hooper & Greenall, 2005). Among others, Lynes and Andrachuk (2008) discussed airline reporting practices. They argued that although the early reports were almost exclusively focused on environmental performance, a change from environmental reporting to sustainability reporting is noticeable, and social responsibility is becoming increasingly prominent.

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Still, the literature concerning CSR practices and their reporting in the airline industry is very limited (Tsai & Hsu, 2008), and the current state of adoption of CSR initiatives is largely unknown. Accounts of sustainability practices in the airline industry are often anecdotal, focusing on specic case studies (Tsai & Hsu, 2008), environmental management alone (Mak & Chan, 2007) or a selected aspect of CSR (Phillips, 2006) and failing to provide an overview of CSR practices across the industry. The most extensive research thus far on CSR practices and reporting in the airline industry has been conducted by W. Chan, B. Mak and colleagues, analyzing the environmental reporting structures of European (Chan & Mak, 2005), Asia-Pacic (Mak & Chan, 2006) and Japanese (Mak & Chan, 2007) airlines, as well as a comparative study of European and Asian airlines (Mak, Chan, Wong, & Zheng, 2007). Their work indicated that the airlines have recognized the need for environmental reporting and have demonstrated various degrees of effort. The research observed an increasing number of airline environmental reports that follow the guidelines of the Global Reporting Initiative.1 In analyzing the reports, Mak et al. (2007) adopted a framework developed by Adams (1998). The modied framework identies 16 elements relating to companies commitment to environmental improvement and environmental improvement systems. While this research contributed signicantly to knowledge concerning environmental management and reporting in the airline industry, it did not provide an in-depth examination of CSR initiatives and their adoption level in the industry. Also, by focusing on environmental reporting, it overlooked the social and economic dimensions of CSR. A study addressing all three dimensions of CSR in airline industry was conducted by Hooper and Greenall (2005). It found that while there were quantitative data available, and there was some consistency in the use of key performance indicators, there are many difculties in comparing social and environmental performance across the industry due to variations in the exact denitions of the indicators used. The authors argued that this hampers inter-airline comparisons and recommended that environmental and social impacts should be reported in a more standardized manner. The literature on CSR and the airline industry describes the difculty in measuring CSR adoption and management due to the lack of standardized measurements and differing reporting structures (Gebel, 2004; Mak & Chan, 2006, 2007). It further recommends the development of a universal framework that would allow for the evaluation and comparison of the state of CSR among different airlines (Gebel, 2004; Hooper & Greenall, 2005; Lynes & Dredge, 2006). Research methodology This research was designed to identify the specic CSR initiatives implemented in the airline industry and their level of adoption. The data were collected from the airlines environmental or CSR reports (free-standing or published jointly with annual nancial reports) available online. Member airlines of the three major airline alliances were selected for inclusion in the study: Star Alliance, Oneworld and Skyteam. Almost all of the worlds major international airlines are members of one of these alliances; they represent airlines from all regions of the world, and they lead the industry in terms of innovation and setting trends. Their members also account for the majority of airline trafc with an estimated 82% of worldwide market share (Rajasekar & Fouts, 2009; Saglietto, 2009). As of January 2009, 14 airlines out of a total of 41 members of the three alliances had annual CSR or environmental reports available online in English. For this study, only annual CSR reports were examined; airlines which publish sporadic reports were not included. The most recent

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annual reports available as of January 2009 were examined. They included reports for the following periods:

r 1 January 2007 to 31 December 2007 (Lufthansa-Swiss, Asiana, SAS, Cathay Pacic, r 1 April 2007 to 31 March 2008 (All Nippon Airways, Air France-KLM, British Airways, r 1 July 2007 to 30 June 2008 (Qantas).
Singapore Airlines, Japan Airlines) and Finnair, Iberia, China Southern, Korean Air),

The data analysis method employed was qualitative content analysis. The CSR initiatives identied from the analysis were organized into a framework consisting of two main dimensions, namely environmental impacts and socioeconomic impacts, and then divided further into 11 themes. Under each theme, specic goals were identied as well as the specic initiatives which contribute to each goal. The themes were selected on the basis of the content of the reports as well as the major principles of sustainability and CSR drawn from Global Reporting Initiative (2006) and United Nations Environmental Programme and World Tourism Organization (2005). It is important to note that the CSR framework presented here is based on the items reported by the 14 airlines studied: it is not an exhaustive list of CSR initiatives for the airline industry. Other unreported CSR initiatives may exist in the airlines studied; other initiatives may exist in other airlines not included in this study; there may be initiatives that no airlines are doing but could or should be done. Further, there may be information on CSR initiatives publically available from sources other than the CSR reports which were analyzed for this study. For each goal, the number of airlines reporting the goal was recorded as well as the number of airlines that provide a measurement of their contribution to the goal. For example, 13 airlines stated that they seek to reduce waste; 7 of them also provided a measurement of progress toward that goal, some in terms of percentage reduction of waste over the previous year. Some airlines also provided information about specic initiatives implemented to reach a given goal. All specic initiatives which contribute to each goal were identied. The numbers reporting implementation of each, as well as the numbers providing measurements for each initiative, were recorded. For example, recycling of onboard waste was mentioned by seven airlines and measured by four. It is possible for the number of companies reporting or measuring progress toward a goal to be lower than the number of companies reporting or measuring progress toward a specic initiative that contributes to that goal. This could occur when, for example, only a few airlines measured progress toward a given goal (such as increasing diversity in the workforce), but a larger number of airlines measured a specic initiative (such as increasing the number of women in management). The number of airlines reporting each CSR goal and initiative as well as the number of airlines that measure their progress toward each goal/initiative are presented in Table 1 for environmental results and Table 2 for social and economic results.

Results Environmental results The goals and initiatives implemented by the airlines in order to mitigate or reduce environmental impacts were organized into seven themes: emissions, waste, energy, water, biodiversity, noise and other. The environmental results are presented in Table 1.

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Table 1. CSR initiatives within the environment dimension and their adoption among the airline industry leaders.
Theme and goals Emissions Reduce CO2 emissions (14/14)* Initiatives

Reduce air pollution (11/9)

Reduce fuel consumption (12/11); introduce new fuel-efcient aircraft (12/11); optimize operational procedures (11/9); weight reduction measures (11/6); sponsorship of scientic research projects related to CO2 emissions (6/4); carbon-offsetting program (third party) (7/2); engine washing (6/2); install winglets (4/3); conduct/support testing of alternative fuels (2/0); take atmospheric measurements with the aircraft (2/2); reduce emissions at technical facilities (2/1); replace employees company cars (1/1); partnerships with NGOs (1/1); eliminate extra short-haul ights with partnerships with rail, among others (1/1); use of simulators for ight training (1/1) Introduce latest technology engines (that reduce NOX ) (9/5); introduce environmentally friendly ground vehicles (6/2); reduce consumption of chemical substances (4/2); replace ground equipment with electrically powered equipment (4/2); consult with local businesses on local air pollution (1/0) Recycle onboard waste (7/4); reduce number of paper boarding passes/tickets (4/4); recycle paper in ofces (4/3); recycle aircraft/aluminum parts (4/1); convert onboard documentation to electronic documentation (3/3); green purchasing (3/2); evaluate biodegradable materials for use onboard (2/0); implement waste management process map of all facilities (1/0); operate a waste classication facility (1/0); in-ight customer education about onboard waste management (1/0); implement opportunities for passengers to recycle their own waste (1/0); reduce waste generated onboard (1/1) Reduce energy use in ofces/facilities (7/2); use green/renewable energy (6/2); install new energy-efcient simulator equipment (1/1); install new energy-efcient air-conditioning (1/1); departmental energy-saving training programs (1/0); program equipment to automatically turn off (1/0); raise room temperature to 25 C in all ofces (1/0); use LED bulbs in aircraft and ofces (1/0); use sea water for air-conditioning (1/0) Use rainwater/graywater (5/2); wash trucks/equipment with rainwater (2/0); onboard water usage analysis program (1/1); use ow restrictors and self-closing taps, among others (1/0) Reduce discharge from maintenance facilities (3/2)

Waste Reduce waste (13/7)

Energy Reduce energy consumption (12/6)

Water Reduce water use (12/8)

Reduce water pollution (3/2) Biodiversity Ensure ecological integrity (4/0) Involvement in environmental conservation projects (11/7) Noise Reduce noise (14/4)

Use environmentally friendly refrigerants in air-conditioning (1/0); use paper certied by the Forest Stewardship Council in all divisions (1/0); test alternative de-icing (1/0); conduct soil pollution prevention inspections at all facilities (1/0) Sponsor avoidance of deforestation (2/1); support oil spill relief activities (1/1); reporting of wildres program (1/1); sponsor returning urban land/landlls to parkland (1/1); funding of Ph.D. research scholarships for endangered species (1/1); employee tree-planting initiative (1/0) Test new operational procedures (continuous descent and so on) (9/2); introduce quieter aircraft (9/7); conform with ICAO Chapter 4 noise level (5/5); use continuous-descent/optimized procedures as established procedure on all ights (2/1); conduct engine testing during daytime (1/0); reduce night landings/takeoffs (1/1) Obtain ISO 14001 or forthcoming certication for EMS (8/0); sponsor environmental organizations (6/6); contribute to scientic research projects (4/3); develop environmental indexes (3/3)

Other

Note: The rst number in each bracket represents the number of airlines that reported their commitment to the given goal or implementation of a given initiative. The second number in the bracket represents the number of airlines that provided some type of measurement of their progress toward each goal or initiative.

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Emissions The studied airlines identied two goals regarding emissions: reduction of CO2 emissions and reduction of local air pollution. Reduction of CO2 emissions was reported and measured by all 14 airlines. It was the only goal to be implemented and measured by all the airlines studied. Local air pollution reduction was reported by 11 airlines (78.6%) and measured by 9 (64.3%). The measures provided by the airlines were highly inconsistent and made comparisons between airlines very difcult. In addition, two airlines reported only the emissions generated at their main base, thus not reecting their entire operations and making it impossible to compare their performance with that of the other airlines. Reduction of CO2 emissions was pursued through various initiatives to reduce fuel use, including introduction of new fuel-efcient aircraft, optimization of operational procedures (such as taxiing with one engine only), aircraft weight reduction measures, sponsorship of scientic research projects related to CO2 emissions, engine washing and installation of winglets. Remarkably, only seven airlines reported offering a carbon-offsetting program for passengers, and only two provided measurements of this initiative. All remaining initiatives to reduce CO2 emissions were reported by one or two airlines only. Within the reduction of local air pollution (other than CO2 ), a much lower number of initiatives were identied with signicantly lower adoption levels. Nine airlines reported introducing latest technology engines reducing NOX emissions; six introduced environmentally friendly ground vehicles; four reduced consumption of chemical substances; and four replaced ground equipment with electrically powered units. One airline reported consultations with local businesses regarding local air pollution. Waste Thirteen airlines (93%) reported the goal of waste reduction. Twelve different initiatives were identied, with recycling onboard waste being the most popular. None of the initiatives concerning waste reduction were reported by more than seven airlines. Only four airlines reported reducing the number of paper boarding passes/tickets, recycling of all paper in ofces or recycling aircraft parts; and only one airline mentioned providing opportunities for passengers to recycle their own waste. Very few measurements were reported, with only seven airlines providing measurements for the overall goal of waste reduction and four or fewer providing measurements for each initiative. Energy Twelve airlines (86%) reported the goal of reducing on-ground energy consumption; only six provided measurements of their performance. Nine specic initiatives were identied. The most popular involved green/renewable energy and reducing energy use in ofces and facilities. Initiatives concerning energy reduction had low adoption levels and were measured by very few airlines. Five initiatives were not measured at all. Water Two goals were identied under the theme of water: reduction of water use and reduction of water pollution. Water use reduction was reported by 12 airlines (86%), and 8 of these (57%) provided measurements. Although almost all of the airlines studied mentioned the goal of reducing water use, they rarely quoted specic initiatives contributing to this goal. Only four initiatives were identied: use of rainwater/graywater, washing trucks or equipment

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with rainwater, onboard water usage analysis program to reduce water boarded onto the aircraft and use of water-saving equipment such as ow restrictors and self-closing taps. Reducing water pollution was reported by three airlines and measured by two. Only one specic initiative (reduction of discharge from maintenance facilities) was identied. Biodiversity Two goals were identied within the theme of biodiversity: ensuring ecological integrity and increasing involvement in environmental conservation projects. The rst was reported by four airlines but measured by none. Four specic initiatives were reported, with very low adoption (each implemented at one airline only and none measured). Involvement in environmental conservation projects was reported by 11 airlines, with 7 providing measurements. Six specic initiatives were identied with the rst being reported by two airlines and the rest by one airline each: sponsoring avoidance of deforestation, supporting oil spill relief activities, reporting of wildres program, returning urban land/landlls to parkland, funding of Ph.D. scholarships for endangered species research and an employee tree-planting initiative. Noise All 14 airlines stated that they pursued noise reduction. However, only four provided measurements of this. Six specic initiatives were identied. The most popular included testing of new operational procedures such as continuous descent or new navigation systems, introducing new quieter aircraft and, related to this, conforming with ICAO Chapter 4 noise level. Chapter 4 noise level is one of the standards for noise emitted from aircraft that were developed by the ICAO and is currently the quietest group of aircraft. All aircraft manufactured after 2006 must conform to Chapter 4 noise levels; older aircraft can be retrotted to conform to Chapter 4 levels. Other environmental initiatives Four initiatives that could not be linked to one theme only, but had a wider scope, were reported. These included obtaining ISO 14001 certication for environmental management systems (EMS), sponsorship of environmental organizations, contribution to scientic research projects (other than emissions-related) and developing environmental indexes. ISO 14001 is the most widely accepted international standard for EMS. Eight airlines reported that all of their EMS or the EMS of one or more divisions have been certied to ISO 14001 standard. Six airlines reported sponsoring environmental organizations. Those six also provided measurements. Examples included the following: Singapore Airlines sponsorship of Senoko Powers Weather Study Project, educating students on how climate change and shifting weather patterns can impact the environment; Cathay Pacics inight catering divisions sponsorship of the Marine Stewardship Councils promotion of sustainable shing; and Iberias sponsorship of the World Wildlife Funds transportation of animals to various sanctuaries. Contributions to scientic research projects were reported by four airlines and measured by three. Examples include Lufthansas participation in a project developing infrastructure to observe the earths atmosphere on a global scale by creating an atmosphere-monitoring network and SASs participation in the Advisory Council for Aeronautics Research in Europe, to help develop solutions to reduce CO2 emissions, NOX emissions and noise by

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specied targets by 2020. Three airlines reported and measured an initiative to develop environmental indexes measuring environmental performance by capturing environmental impact relative to production. Environmental indexes have been implemented in several different areas, for example CO2 emissions, waste, water, air pollution and noise. Analysis of the environmental initiatives reported by the airlines indicates high commitment to the major goals with over 10 airlines mentioning reducing CO2 emissions, reducing air pollution, reducing energy use, reducing water use, involvement in environmental conservation projects and noise reduction. However, apart from CO2 emissions reduction, which is addressed by numerous initiatives, the airlines do not provide much detail regarding the specic initiatives that are implemented to contribute to the goals. The adoption levels of specic initiatives are low: there is no one single initiative implemented by all the studied airlines, and very few airlines provide performance measurements for the initiatives. Social and economic results The goals and initiatives related to the social and economic dimensions of CSR in the airline industry were organized into four major themes: employee wellbeing and engagement, diversity and social equity, community wellbeing and economic prosperity. The results are presented in Table 2. Employee wellbeing and engagement Within this theme there were four major goals identied: to increase employee health, safety and wellbeing (reported by 11 airlines, measured by 8); to increase employee involvement and empowerment (reported by 10 airlines, but measured by none); to increase employee involvement in CSR issues (reported by 10 airlines, measured by none); and to provide opportunities for employee education and advancement (reported by 10 airlines, measured by 6). Thirteen specic initiatives supporting the goal of improving employee health, safety and wellbeing were reported. The most popular included providing sport and health activities, ensuring good working conditions throughout the supply chain and periodic inspections of working environments and employees health. The initiative of ensuring good working conditions throughout the supply chain referred to ensuring that employees within the supply chain have equal or close to equal working conditions to employees who work directly for the airline. The initiative of periodic inspections of working environments and employees health included inspections of workplaces, medical check-ups for employees and preventative measures. The remaining 10 initiatives under the goal of improving employee health, safety and wellbeing were all reported by one or two airlines each: two of them were measured. Eight initiatives supported the goal of increasing employee involvement and empowerment. The most popular were the provision of opportunities for employee feedback (9 airlines) and providing reward/bonus schemes (10 airlines). Types of employee feedback ranged from online surveys and discussion forums on the company intranet to informal meeting sessions with managers and colleagues from other departments of the company. In addition, formal channels of employee feedback existed for issues of a critical nature, such as health or safety issues. The initiative of reward or bonus schemes included bonuses for individual performance (such as perfect attendance), group performance bonuses (such as achieving company-wide performance targets) and one-time bonuses for special occasions

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Table 2. CSR initiatives within the social and economic dimensions and their adoption among the airline industry leaders.
Theme and goals Employee wellbeing and engagement Improve employee health, safety and wellbeing (11/8) Initiatives

Increase employee involvement and empowerment (10/0)

Increase employee involvement in environmental/CSR issues (10/0) Provide opportunities for employee education and advancement (10/6)

Provide sports and health activities (8/3); ensure good working conditions throughout the supply chain (5/0); periodic inspections of working environments (4/0); employee award for workplace safety initiative (2/1); increase parental leave (1/1); company-sponsored childcare centers (1/1); accident analysis training for managers (1/0); personal protection equipment usage campaign (1/0); food safety and swimming pool inspections at all crew hotels (1/0); all crew required to complete health and safety e-learning (1/0); issue fatigue management handbook for crew (1/0); publish cabin safety magazine for crew (1/0); open employee service center (1/0) Reward/bonus schemes (10/9); create opportunities for employee feedback (9/9); provide a variety of work-time models, e.g. extime (3/1); develop employee-led carpool and cycle-to-work programs (2/0); familiarization trips for employees of supply chain/partner companies (1/1); commendation program for human error reporting (1/0); employee solidarity fund (1/0); possibility for part-time pensions (1/0) Provide employees with environmental education programs (4/3); employee sustainable development suggestion program (3/1); hold employee environmental protection/awareness events (4/1); employee award for CSR or environmental initiative (3/1) Provide training to better enable employees to do their jobs (6/4); provide employees with vocational and continuing education (4/2); open learning center for past accidents/safety awareness (2/1); include sustainable development issues in mandatory safety training (2/0); provide ethical management education (1/1); provide funding for employees to pursue MBA (1/1); scholarship opportunities for employees children (1/0) Increase number of women in management (8/8); employment of persons with disabilities (5/5); participation in initiatives to encourage women in the workforce (3/2); employment extension system for seniors (2/2); increase intercultural competence of workforce (2/2); mentoring programs for employees with disabilities (1/1); indigenous employment program (1/1); provide internships for students with disabilities (1/0) Training of ight crew in sign language (1/1); barrier-free airports and aircraft (1/1); check-in counters designed with Universal Design (1/0); employee business cards in Braille (1/0)

Diversity and social equity Increase diversity in the workforce (10/0)

Universal accessibility for customers and employees (4/0) Community wellbeing Involvement in community projects (13/9)

Involvement in international projects (11/7)

Raise customer awareness of sustainable development issues (9/3) Economic prosperity Sustainable procurement practices (7/0)

Support training and education opportunities for youth (10/10); support arts and culture projects and events (7/7); support athletic programs (5/5); support environmental education in schools (4/3); employee volunteering program (3/3); social and educational assistance for the disabled (2/0); employee blood donation programs (3/1); improve impoverished communities (1/1); support university educations (2/2); breast cancer awareness campaign (2/1); indigenous reconciliation (1/0) Involvement in humanitarian aid projects (7/6); donations to charitable organizations (7/7); partnerships with NGOs (6/6); onboard charity collection program (6/6); transport children for medical treatment (2/2); disaster relief/rescue (2/1); publicize UN Millennium Development Goals to stakeholders (2/0); transport of peacekeeping troops (1/1); transport of organs (1/1) Website (12/0); in-ight magazine (4/0); certied fair trade coffee on all ights (4/0); in-ight video (3/0); hold focus group with frequent yers (1/0); environment-themed ights (1/0); sustainable tourism awards (1/0) Supplier code of conduct with CSR criteria (5/2); create equal opportunities for all suppliers (3/0); fair trade compliance program (1/0); misconduct reporting system (1/0); create competition compliance department (1/0); use local/regional suppliers (1/0); improve payment performance (1/1); procurement with preferred suppliers (1/1) Promote local employment though internships and apprenticeships (3/3) Support networks of small-/medium-sized businesses at main base (1/0)

Job creation (7/5) Contribute to local economic development (2/1)

Note: The rst number in each bracket represents the number of airlines that reported their commitment to the given goal or implementation of a given initiative. The second number in the bracket represents the number of airlines that provided some type of measurement of their progress toward each goal or initiative.

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(such as the company winning an award or for employee anniversaries). The remaining initiatives were reported by one or two airlines each. The goal of increasing employee involvement in environmental and CSR issues was supported by four specic initiatives: providing employees with environmental education programs, implementing employee sustainable development suggestion programs, organizing employee environmental protection events and an employee award program for CSR/environmental initiative. All had low adoption levels and were not reported by more than four airlines each. Provision of opportunities for employee education and advancement was supported by seven initiatives. The most popular, reported by six airlines and measured by four, provided training to better enable employees to do their jobs. It is important to note that this type of training may not necessarily be voluntary, as training for many positions at an airline is heavily regulated by various laws. The second most popular initiative provided employees with vocational and continuing education opportunities, including the following: Bachelors programs offered jointly by an airline and a university; continuing education courses in different areas, from computer skills to foreign languages; and online workshops on topics such as time management, developing creativity and process design. The remaining initiatives under this goal were reported by one or two airlines each.

Diversity and social equity This theme encompasses two goals: to increase diversity in the workforce and to provide universal accessibility for customers and employees. Ten airlines reported eight specic initiatives to increasing diversity in the workforce. Increasing the number of women in management and employment of persons with disabilities were by far the most popular, followed by activities to encourage more women in the workplace. Examples include Lufthansas annual Girls Day, a career open-house event for female high school students, and the Womens Employee Committee at China Southern. Remaining initiatives under this goal were all reported by one or two airlines each. One of them was that of increasing intercultural competence of the workforce, reported by Lufthansa, aimed at increasing the proportion of employees who are not German citizens. Lufthansa and Qantas were the only airlines to explicitly identify a diversity initiative related to ethnicity or citizenship. The majority of workforce diversity initiatives addressed women and persons with disabilities, with signicantly less focus on other dimensions of diversity, which include ethnicity, sexual orientation, age and social class. The second goal identied within this overall theme was to provide universal accessibility for customers and employees. It was reported by four airlines. It should be noted that the low response for this goal may reect the fact that most airlines are legally required to provide equal accessibility; the majority of the airlines may not have felt the need to report this information, as providing equal accessibility is largely obligatory rather than voluntary. To achieve this goal, four specic initiatives were identied, each reported by one airline only. For example, the initiative of barrier-free airports and aircraft was reported only by All Nippon Airways: it reported providing writing pads for customers with hearing difculties, onboard wheelchairs, seats with moveable armrests, wheelchair-accessible lavatories and subtitles on certain in-ight videos. It should be noted that items such as onboard wheelchairs and wheelchair-accessible lavatories are legally required in many jurisdictions and are provided by most airlines; however this study indicates that they are largely not reported as CSR initiatives.

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The theme of community wellbeing includes three goals: involvement in community projects (reported by 13 airlines, measured by 9), involvement in international projects (reported by 11 airlines, measured by 7) and to raise customer awareness of sustainable development issues (reported by 9 airlines, measured by 3). Involvement in community projects related to both the community in which the airlines are based and the communities to which they operate. The most popular initiatives here included supporting training and education opportunities for youth (encompassing both in-house programs operated by the airlines and third-party organizations and programs supported by the airlines), supporting arts and culture projects and events, supporting athletic programs and supporting environmental education in schools. The remaining initiatives under this goal were all reported by one or two airlines each. The goal of increasing involvement in international projects was supported by nine specic initiatives. The most popular were involvement in humanitarian aid projects and donations to charitable organizations, partnerships with nongovernmental organizations (NGOs) (non-emissions-related) and onboard charity collection programs (collecting surplus foreign change from passengers on international ights returning home). Contributions to NGOs included nancial support or support in kind such as ight tickets or employee volunteers. The remaining initiatives under this goal were reported by one or two airlines each. The third and last goal within the community wellbeing theme was to raise customer awareness of sustainable development issues. It was supported by seven specic initiatives. The most popular (reported by 12 airlines) was to have a section on the airlines website dedicated to environmental issues related to air travel and/or the airlines environmental initiatives. The remaining initiatives were reported by four (information in in-ight magazines and the serving of fair trade coffee), three (in-ight video) or one airline each. Although four airlines reported serving only certied fair trade coffee onboard in order to increase customer awareness, it was unclear if passengers are informed that the coffee served is fair trade or what fair trade coffee is. Two unique and innovative initiatives were also implemented: Cathay Pacic conducted focus group studies with their most frequent yers to explore the environmental and social performance of the airline, while All Nippon Airways offered environment-themed ights, called e-ights, on selected routes to disseminate information about environmental issues and to get passengers thinking about environmental impacts.

Economic prosperity The three goals identied within the theme of economic prosperity were improving procurement practices, job creation and contributing to local economic development. There were eight specic initiatives to improve procurement practices. The most popular initiative, reported by ve airlines, was to implement a supplier code of conduct. Three airlines reported creating equal opportunities for all suppliers. The remaining initiatives contributing to better procurement practices were reported by one airline each. Interestingly, one airline (British Airways) reported its commitment to making progress in paying suppliers promptly and provided the percentage of on-time payments per year. Similar to some other initiatives, it raises the question of whether this initiative is within the scope of CSR or if it should be a minimum standard of service. The second major goal within the economic prosperity theme, the goal of job creation, was reported by seven airlines and measured by ve. Three airlines reported their involvement in an initiative to promote local employment through apprenticeships or internships.

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The last goal related to the theme of local economic development was reported by two airlines, Air France-KLM and Qantas. Air France-KLM discussed its initiative of supporting networks of small- and medium-sized businesses around the airlines main airport. Within this program, executives from Air France-KLM provided personalized coaching to smalland medium-sized business owners over a period of 2 years, as well as setting up networks among small businesses. Similar to the environmental results, the analysis of social and economic goals and initiatives identied by the studied airlines shows higher levels of adoption and measurement for goals and lower levels of adoption and measurement for specic initiatives. The initiatives identied in this section are not as numerous, and many are reported by one or two airlines only. Discussion and conclusion Data analysis conducted for this paper supported a number of observations already found in the literature, as well as several new ndings. First, the overview of reporting practice in the airline sector in 2009 indicated considerable variation in content, consistent with the ndings by Hooper and Greenall (2005) for the year 2001. Second, the majority of the analyzed reports focused heavily on the environmental dimension of CSR and provided less detail regarding the social and economic dimensions. The goals and initiatives in the environmental dimension were the most widely adopted. Although there were a large number of initiatives in the social dimension, they were generally reported by a considerably lower number of airlines. Only two goals (out of 21 in total) were reported by all 14 airlines in this study: those of reducing CO2 emissions and of reducing aircraft noise, notably both from the environmental dimension. Additionally, the goal with the greatest number of specic initiatives implemented to support it was from the environmental dimension: 15 initiatives contributed to reduction of CO2 emissions. This was not unexpected. This is the area in which the airlines are challenged most often. The reports can be seen as addressing the arguments in the academic literature as well as public opinion, that the natural environment is where airlines are most commonly associated with negative impacts or consequences. This research showed a general high level of commitment to the major goals within the CSR scope among the studied airlines. However, there was often only a small number of specic initiatives given as contributing to each goal. For example, 12 airlines reported that they undertake efforts to reduce water use, but there were only four initiatives identied that contribute to this goal, of which the most frequently reported was only by ve airlines. This illustrates the situation in which an airline reports its commitment to a certain CSR goal, yet provides very few or no tangible courses of action to demonstrate its commitment. It was also observed that even when specic initiatives were identied, they often were not adopted as frequently as the goals they supported. For example, although the goal of increasing employee involvement in CSR issues was reported by 10 airlines, all the initiatives to support it were reported by not more than four airlines each. Only 17 initiatives were adopted by more than 50% of the airlines that publish CSR reports. Of those, only three were adopted by more than 80% of the reporting airlines. It is also notable that no initiative in the socioeconomic dimension was reported by more than 80% of the airlines. A summary of the initiatives in the high-, moderate- and low-adoption categories is presented in Table 3. The general pattern of frequent reporting of goals and less frequent reporting of initiatives was true even in the case of initiatives that are thought to be relatively simple and easy

Journal of Sustainable Tourism


Table 3. Adoption levels of the most popular CSR initiatives. Adoption High, 80100% of airlines that publish reports Moderate, 7079% of airlines that publish reports Low, 5069% of airlines that publish reports Environmental initiatives Reduce fuel consumption; introduce new fuel-efcient aircraft; provide information about CSR on website Weight reduction measures Socioeconomic initiatives None

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Introduce latest technology engines (that reduce NOX ); recycle onboard waste; reduce energy use in ofces/facilities; test new operational procedures (continuous descent and so on); obtain ISO 14001 certied or forthcoming certication for EMS

Reward/bonus schemes; support training and education opportunities for youth Provide sports and health activities (for employees); create opportunities for employee feedback; increase number of women in management; support arts and culture projects and events; involvement in humanitarian aid projects; donations to charitable organizations

to implement. For example, using low-consumption lighting and reducing air-conditioning in ofces were both reported by only one airline. They both contributed to reducing energy consumption, a goal reported by 12 airlines. It is unclear whether this is because the airlines consider these to be too minor to include in CSR reports or whether actually only one airline has implemented these initiatives. It is also possible that some airlines did not include the entire information on the initiatives in their CSR reports but made it available through other sources. The bottom line is that the readers of the reports have no way of determining this information. Similarly, the initiative of using ight simulators for crew training was a unique initiative reported at All Nippon Airways, despite the fact that it is a common practice at most major airlines and can be conrmed through other sources. It raises the issue of what airlines choose to include in the reports and how it may inuence the readers of the reports. A related question refers to the scope of CSR itself. There is a discussion in the literature as to whether initiatives that are required by law or initiatives that are common sense practices because of cost savings should be reported within the scope of CSR. Among others, Phillips (2006) argued that actions taken to meet regulatory requirements are mandatory, and including them on a list of socially responsible actions is debatable. He argued that only actions which exceed the spirit of the law may be viewed as socially responsible actions. The current study has shown that some of the airlines choose to report their initiatives even when they are required by law, while others choose not to. Initiatives to support universal accessibility for customers and employees are a good example. Despite the fact that in many jurisdictions provisions for accessibility are regulated by law, the specic initiatives displayed low levels of adoption. This is probably related to the fact that some airlines decided not to report initiatives viewed by them as obligatory and therefore not within the CSR scope. The issue becomes more complicated if some actions which are regulated by law in one jurisdiction may be considered voluntary in another. Again, the reader of the reports may not have the knowledge to differentiate between required and voluntary initiatives and therefore understand why some initiatives may be omitted in some

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reports. As a result, the readers of CSR reports may mistakenly perceive that the airlines which do not report initiatives required by law are less committed to CSR than airlines which do report them. These observations lead to a wider debate on the scope of CSR reporting by airlines in general and its desired characteristics. Like several previous studies, this research conrms that reporting practices of different airlines are inconsistent, making it very difcult to make meaningful comparisons. More standardized information regarding areas of responsibility and practice is desired, in order to allow comparison of corporate performance between different companies. However, standardized reporting faces a number of challenges, including differing national standards and diverse objectives for reporting. On the other hand, it can be argued that the purpose of CSR reporting is to demonstrate a willingness and an ability to engage with and respond to stakeholder requirements, which leads to more exibility in reporting efforts. The process that is applied by companies in order to choose the information to be included in CSR reports is, therefore, becoming a very important factor that needs to be further investigated. The CSR framework proposed in this study encompasses all the ndings from the analyzed reports. It can be noted that a number of initiatives can contribute to more than one goal. For the purpose of this study, decisions were made to include each initiative in one part of the framework, on the basis of the sections of the CSR reports in which they were more frequently reported. For example, offering recycling opportunities for customers may support the goal of waste reduction and the goal of raising customer awareness of CSR issues. Previous research on CSR efforts in airline industry is limited and mostly high-level. This study has provided detailed insight into the CSR initiatives reported by 14 of the worlds largest airlines and synthesized the numerous initiatives which can be useful for both academics and industry professionals. As CSR takes a more prominent role in the industry, it is expected that research in the area will also increase; this study serves as groundwork. In conclusion, this research has shown low levels of reporting of CSR initiatives among the 14 airlines publishing CSR reports. It is important to remember that these airlines themselves represented a very small part (only 34%) of the study population which included all the member airlines of the three major world alliances. This very low level of CSR reporting among the airlines is an interesting nding, especially given that the alliances pride themselves on being industry leaders and declare their commitment to the goal of sustainability on their websites and through other communications. Study limitations and future research The main limitation of this research is its use of only one data source, the CSR reports published by the airlines. The framework presented for CSR reporting may therefore be incomplete: the CSR reports are not necessarily an exhaustive list of all applicable practices. It should also be acknowledged that information on CSR activities could be available to the public from sources other than the CSR reports analyzed in this study. Also, the current research is based on the assumption that the information that the airlines publish in the reports is accurate. It is important to note that the research is based on written policies and information; therefore it is based on the assumption that the content of the reports is consistently put into practice. Content of the reports vary, with the content of some reports more limited than others because of varying levels of effort and monetary and other resources invested in preparing the reports. Limited content of a report does not

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necessarily mean that the airline that published it has limited CSR initiatives. Previous research noted the chance that an airline engages in CSR efforts but under-reports them because of minimizing the costs of data collection, lack of standards or not considering the information as relevant (Hooper & Greenall, 2005). Additionally, given that the population chosen for the study included only the member airlines of the three alliances (assumed to be the best in the industry), there is a possibility that additional initiatives practiced by other airlines were not identied. It is therefore important to recognize that the ndings from this study do not represent the entire industry. This paper has addressed the scope of CSR initiatives and how they are reported. It is recommended that future research addresses the actual performance of the airlines initiatives, that is, how well the airlines are doing in terms of their CSR programs. It is also recommended that research comparing the performance of the 14 airlines be done, as well as research comparing the performance of the airlines which publish CSR reports against airlines which do not publish CSR reports. A useful direction of further research in this area would also be to identify common characteristics of the airlines that are relatively advanced in the reporting of CSR initiatives. Factors such as their geographical location and respective national regulations or standards could be analyzed in order to better understand the motivations and rationale behind CSR adoption or the lack of it. Future research should also focus more on critical analysis of what the airlines are reporting and the extent to which they are reporting it, in order to understand the reasons for the often-diverse practices in CSR reporting. Acknowledgements
The authors would like to thank the anonymous reviewers and the editor for their suggestions and assistance in the production of this paper.

Note
1. The Global Reporting Initiatives vision is that disclosure of economic, environmental and social performance become as commonplace and comparable as nancial reporting and as important to organizational success (see www.globalreporting.org).

Notes on contributors
Allan Cowper-Smith is a recent graduate from the Department of Tourism and Environment at Brock University and holds a Bachelors degree with honors in tourism studies. His research interests include sustainability management and human resources in the airline industry. He has several years of working experience in the airline industry. Danuta de Grosbois is an Assistant Professor in the Department of Tourism and Environment at Brock University; she was previously an Assistant Professor at the Warsaw School of Economics, Division of Decision Analysis and Support, in Poland. She holds a PhD. in management from Carleton University in Canada and two Masters degrees from Warsaw School of Economics. Her research interests include the measurement of environmental, social and economic impacts of tourism activity, as well as sustainability management and reporting practices in the tourism industry.

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