British Airways Analysis

Topics: Corporate social responsibility, Social responsibility, Stakeholder analysis Pages: 7 (2149 words) Published: April 30, 2013
Stakeholder is a person having direct or indirect interest in the firm’s objective, which include customer, board of directors, employees, shareholders, suppliers etc. They track the satisfaction of various constituencies who have critical interest in and impact on the company’s performance (Kotler Keller,2012). Take gate gourmet as an example it is the supplier of British airways, as a stakeholder it plays an important role in the development of the firm whereas it is also crucial to assess the stakeholder for maintaining the long-term relationships. There are three main connection features, which drives the value of the stakeholders. This essay will map British Airways stakeholders as well as the ethical concerns it has dealt with from its different stakeholders

Background of British Airways
The group of British airways comprises of British airways plc and various other subsidiary companies. It is one of the great airlines in the world, which provides its customers transportation services up to 149 destinations in 72 countries. In the year 2004-2005, it succeeds in carrying 35 million passengers and 900,000 tons of the cargo. The network of the airline is centered in United Kingdom where it has a network of its 85% workforce working there. The core activity of the British airways and its group is to provide international and domestic scheduled airline services for the passengers, post mail, and provision of additional services. British Airways has a variety of stakeholders and most of them are considered dominant. Likewise the code of conduct in British Airways with respect to ethics is been made applicable to the entire stakeholders, which primarily consists of its employees, customers, suppliers, financial institution, local communities and directors of British Airways Plc and its subsidiary companies. It is however strictly been discussed with each employee at the time of recruitment and failure to do so will lead to punishment and or charges under the act of EG 901. The code of conduct is been made especially for the acts including, conflicts of interest, misuse of opportunities and information, confidentiality and fair dealing. Furthermore, British Airways approach is to develop a strong relationship with its stakeholders. It (British Airways) has developed leadership programs to acquire professional leaders who will be able to communicate effectively with people to get them involved and feel part of their future business decision.

British Airways Stakeholders.
British Airways Stakeholders.

Figure 1.0
Power| Low| Interest|
| | Low| High|
| | Minimal Effort| Keep Informed|
| High| Keep satisfied * Government: The Company has to keep legal legislation satisfied because the power here is high. They can close down the company when tax or other duties are not met. * Customers: Though they have very little interest on how BA runs it business but the power is high because customers provide most sales for the company| Key Players * Employees: Employees have high interest and high power on the business because they have the power to attract customers. * Competitors: The competition can affect the decisions and strategies of the business because of the nature of the market. * Suppliers: BA relies on its suppliers mainly Airbus and Boeing because they generate high income to the business. * Financial Institution: Banks assistance is required to support BA and they can refuse to provide the necessary finance needed. * Shareholders: They have the power to employ and dismiss any staff and they make the key decisions on the company. * Local Communities: BA’s brand image can be damaged if they don’t keep the community satisfied. As a result environmental issues have high power on its direction of CSR. * Media: BA has to keep a good relationship with the media so as to have a worthy relation with the public.|...

References: Petya Laleva, 2011, British Airways stakeholder analysis, [Online] Available at: [Accessed : October 12, 2012]
James Arrowsmith, 2005, British Airways’ Heathrow flights grounded by dispute at Gate Gourmet, [Online] Available at : [Accessed: October 12, 2012]
Strategic Report, 2009 [Online] Available at: [Accessed: October 13, 2012]
British Airways ,2010, Corporate Responsibility Report [Online] Available at : [Accessed: October 12, 2012]
Andrew C, Dirk M, 2010. Business Ethics. 3rd ed. Oxford University press plc. New York.
Kotler K., 2012. Marketing Management. Pearson Education Limited.
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