Corporate Social Responsibility Challenges Faced by Ryanair

Corporate social responsibility or CSR is the self-regulatory business model that assists a business to go beyond the traditional marketing boundary of profit making and work for the community welfare hereby posing positive impact on the society. This literature review dissertation helpliterature review is going to discuss the potential CSR issue faced by Europe’s largest airline group, Ryanair, is the inability its officials in marinating the fair wage to staffs working in this airline company. in Ryanair, the capitalist system maintained by the higher official of this airlines pose adverse impact on the overall, environmental resources and ecological balance in the society. As Europe’s largest airline group an annual revenue of over £7 billion, Ryanair stands as a paradigm of success (Ryanair, 2020). This summative assessment will show how this capitalist system used in the overall marketing and business management process of Ryanair has apparent detrimental effects on earth ecological system and environmental structure. In addition to this, the essay will also determine how the CSR issue faced by Ryanair airline in terms of maintaining the environmental sustainability affect adversely on their business decision- and profit-making strategies.

which appears to be ever-growing in tandem with profits (Masoud,2016). Despite serving as a cheap way to travel thus giving us more freedom to do so ( Wright,2010), This work will argue that through systemic lens, the current model of capitalism is insufficient and unsustainable, as short term profitability is rewarded over long term strategies that aim to sustain the environment (Murray,2013 ) thus a reworking of our definition of successful is of upmost importance. Using Kyoto’s Iceberg model and Batesmans’s view on the systemic lens, we can start to approach how this problem should be solved. In order to do this, I will start by delving into Ryanairs business model which causes its success and explore its damage and whether there is scope for improvement using Ryanairs current methods. I will then take off the blindfold of the capitalist view and explore the issue using the systemic lens.

Ryanair’s business strategy allows it to be classed as a low cost carrier (hereafter LCC) which are known for providing a ‘no frills’ service, providing a basic point to point service with quick turnaround times at low prices (Varsamos, 2016) . Whereas most airlines employ pilots with 1000-1500 hours of flying time, Ryanair employs those with just 200 hours which means they can pay a salary below competitive wage (Turnbull). Issue related to fair wage in one of the potential major CSR issue that become the matter of concern for Ryanair as the lower wage to the airline staffs not only associated with their poor economic condition but also physical and mental distress in them. In addition to this, the airline staffs of Ryanair afre reported to have faced issues regarding health security and proper protection from any kind of harassment in their workplace. Although Ryanair is able to maintain the capitalist growth model to gain high profit in the internarial market, majority if eth evidences suggest that the model it highly irrelevant with the overall economic, social and cultural needs of airline staffs working here. Since pilots need between 1-2 years of flying with Ryanair before they can work elsewhere, Ryanair is able to offer significantly cheaper prices than their rivals (ibid). Aside from the clear social harm through exploitation of workers with no other choice who are expected to work overtime on 0 hour contracts with no guarantee of work(ibid), Evidence-based report have shown that, majority of pilots and ground staffs of Ryanair are compelled to work in this company at a minimum salary which is most of the times is unable to meet their economic, social, physical and cultural needs. Along with lower remuneration, Ryanair is reported to be unable to provide proper healthcare , workplace and environmental protection to its staffs. The am are many women working as pilot, airhostess and ground staffs face huge mental, physical and emotional abuse in this airline by the senior mal staffs.

On the other hand, these unethically low prices spoil the employee engagement which leads to the situation in which staff lose their interest in terms of maintaining ethical and moral while working in this company which indirectly lead to environmental destruction (Reynolds 2019). This means that it is the low-cost strategy that is used to differentiates themselves that also contribute to Ryanair’s level of carbon emission.

Ryanair staffs face several additional issues along with low remuneration that not only impact on their economic condition , but also on their overall social, cultural, physical and mental wellbeing, evidences-based report have shown that, female airline staffs in Ryanair are reported to be the common sufferer of poor mental, physical and emotional wellbeing. For example, it is evident that, the huge work pressure in Ryanair on female staffs leads of chronic disease such as cancer, cardio-vascular disease and diabetes that are the common outcomes of low remuneration, poor economic, social and cultural wellbeing of female workers working in Ryanair airline. The common issues faced by Ryanair airline that are associated with the current CSR issue, the low remuneration to staffs faced by the Ryanair airlines are as follows:

Low remuneration:

Low remuneration is one of the most common CSR issues in Ryanair airline (Ryanair,2016). From evidence-based report its stated that, majority of female workers working in this industry are devoid of the remuneration that they deserve that not only pose adverse impact on their economic condition but also leads to devolvement of mental and physical distress in them.

Harassment:

Not only the lower remuneration, bur also harassment as well as lack of protection to women

staffs working in Ryanair, leads to severe mental, physical and emotional distress in them (Ryanair,2016). It is evident from the recent report, that majority female pilots and ground staffs working in Ryanair face huge mental, physical, emotional and sexual harassment in workplace that sometimes compel them to leave the job. In addition to this, there is severe mismanagement in organisational framework in Ryanair in which there is no such organisational body that can take serious step in eliminate this issue regarding the harassment of worker. Harassment in workplace pose adverse impact on overall mental and physical wellbeing of staffs of Ryanair.

Environmental destruction:

Low remuneration as well as lower workplace security to staffs working in Ryanair leads to the situation in which the majority of staffs do not take any responsibility on following the principles and guidelines of company that are associated with maintaining environmental sustainability.

Poor working condition:

Working condition in an organisation is strongly associated with the fair structure of remuneration and proper employee-protection framework. Staffs of Ryanair are reported to face severe mismanagement in their workplace in terms of getting proper official facilities and advantages. Ryanair staffs face huge discrimination, racism, gender bias and violence by higher officials. This poor working condition is associated with forming a negative culture ad unsupportive environment in the workplace for female workers.

Although becoming increasingly profitable every year with a 17.7% increase of passengers between 2015 to 2016 alone (Ryanair,2016), this comes at a cost to the environment. In 2018, Ryanair emitted 9.9 megatonnes of greenhouse gas emissions which is up 49% from just five years ago (Nelsen 2019). The key direct victims of this damage are those who live near airports that Ryanair fly to where there is an association between living near airports and respiratory problems (Schlenker, walker 2015) .This is because the local air quality is poor due to the pollutants emitted by the aircraft at ground ( this is quoted btw) level during taxing, takeoff and landing which includes carbon monoxide and soot aerosols. From a more global point of view, the emissions of the aircraft in the upper troposphere and lower stratosphere which have a lifetime of 50-200 years (zing) . The nitrogen oxide increases ozone concentration leading to a net warming effect(ibid). This impact affects us all.

This is not to say that Ryanair have not attempted to addressed the topic of sustainability. They have invested heavily in efficiency and engine technology which have reduced their noise footprint by 86%(Ryanair) . Furthermore, as they do not provide free meals on planes unlike other premium airlines, the produce less in terms of waste on luxuries on passengers. Ryanair claim that their ‘use of secondary and regional airports reduces time/fuel spend in holding patterns and taxing reducing noise and emissions’. Despite taking such measures, their business model of low-cost pricing and aim to make flying accessible to more people inevitably increases demand which has environmental consequences. As there is currently little viable alternatives for airplane fuel (ICAO, 2013) , Ryanair are heavily reliant on fossil fuels ( AEF, 2018) . This determines the industry as unsustainable in the long run (kotze, 2017).

There is currently only one legally binding law which addresses this issue which provides little incentive for Ryanair to change their ways (zing and Golder) . This lack of commitment could be due to fact that laws surrounding emissions are too relaxed. The Kyoto protocol says that greenhouse gases should be ‘limited’ without further elaboration such that there are no emission standards (transport environment, 2010) .

It is understandable that creating long term strategies favouring environmental sustainability will not be the focus for Ryanair as the monetary benefits of doing so are not immediate. However, the importance of environmental sustainability is a particularly pressing issue in the current economic climate. The impact of Covid -19 has been especially prevalent in the airline industry as flying is deemed risky and in low demand. However, with oil prices at rock bottom and profits of airlines dropping, pressure from investors will force them to succumb to buying these fossil fuels as there is no commercial reason for choosing a more expensive sustainable option. However, as an increasingly environmentally aware generation, if Ryanair chooses to prioritise profits this may lead to their downfall as consumers choose the more environmentally friendly version. So perhaps its better to change their model now. Systems thinking is a framework that is based on the belief that the component parts of a system can best be understood in the context of relationships with each other and with other systems, rather than in isolation.

We can place a static screenshot at the top of the iceberg. As humans we focus our attention on what is immediately visible. What is visible is Increased carbon emissions through an increasing demand for Ryanair flights. The visible trends we observe are increase in sea levels and increased climate change (cite this) . The noise pollution and air pollution which is harmful for those living close to airports in particular. This is breathing issues etc. The science of complexity means that we cannot accurately predict all of the future consequences of our actions but delving deeper into the trends we can observe, in Germany over the last 28 years, the insect population has decrease by 75% which directly impacts the birds that rely on insects for food and plants which are reliant on pollination. As a capitalist economy, consumerism is embedded into our culture. We seek satisfaction in our consumptions whether that be spiritual or ego as consumption is a key source of social status and source of aspirations and pleasures. (mike Featherstone). As historically, going abroad has been seen as a luxury mainly reserved for the wealthy (Akgüç Beblavý Simonelli)

thus seen as a symbol of status, with cheaper air travel, this need for consumer satisfaction is easily fulfilled and creates a demand for this low cost business model. This needs for consumerism leads us to delve into the root of the mental model which is our capitalist view of the world. So at the deepest part of the iceberg, we need to reimagine a way in which we can tackle the notion of thinking that increased consuming leads to more satisfaction and using growth as the key definition to success which has allowed this problem of increased environmental damage to persist. Prior studies suggest that income and ecological destruction are positively related (Brounen, Kok, and Quigley 2012; Kempf 2008)

By doing so, we are ignoring the satisfaction gained from nature and relationships we have with people.

Now that we have identified the root of the problem, ‘We cannot solve our problems with the same kind of thinking that gave rise to the problem’. If we do not transform our mental model from an anthropocentric capitalist perspective to an ‘ecocentric’ thinking where we establish the equality of all relationships within our ecosystem, we get stuck in a system that perpetuates the same kind of problems. This can be shown using a feedback loop in which we link the relationships between our need for consumerism and the direct negative impact we have on the environment. Using the systems thinking perspective, we can recogonize that the top of the iceberg is just a small proportion of the problem and the damage done by our capitalist perspective is far more dangerous. If we broaden our scope of the problem into future time periods, carbon emissions last 50-200 years. The relationships between the future generation and grandchildren are jeopardised by our consumerism.

A further failure of the capitalist view, is that We place humans as the pinnacle of decisions and increased importance bases on our capacity for rational thought. ‘what happens to the picture of a cybernetic system – an oakwood or an organism – when that picture is selectively drawn to answer only questions of purpose.’ In order to provide an aesthetic response which is one that sees other forms of life too and respecting and valuing other material instead of seeing them as inert, Bateson argues that we need to access greater parts of our mind in such a wat that connects us with greater wisdom. When we see the world thorough a systemic lens, we do not separate the benefits that we gain from the costs to the environment, they should be seen as one. Through a capitalist perspective we have externalized the costs onto the environment but if this was not possible and we thought of the environment as one of our own. The question arises, if the same level of damage were to be placed on humans through carbon emissions, would we still fly?

Systems thinking allows us to gain greater wisdom and understanding through it’s transdisciplinary nature. We can use an eco-feminist perspective to delve further into seeing the environment and our ecosystem as one of our own instead of a means for survival. A Ryanair flight from London to France costs just £10. This is seen as a cheap consumption in terms of material goods but the usage of fossil fuel and pollution to our earth is costly. This is what Vandana Siva defines as a fake cheap. As consumers and corporations, we are not paying these externalities, instead it is passed onto nature. Capitalism has externalised these costs onto nature but at the same time we depend on it.

Conclusion: we are aware of some of the costs of consumerism but as capitalist view we externalize the costs and place importance on growth and money. This blinds us to the extent of the damage as we fail to think about the relationships between ourselves and nature and future relationships. We can essentially think of capitalist view as a blindfold which needs to be taken off to be able to sustain good living standards.

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