QANTAS AUSTRALIA – CORPORATE GOVERANCE AND CARBON FOOTPRINT RESPONSE * What is Corporate Governance?
To ensure the benefit of everyone concerned in an organisation, corporate governance must be enforced. Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated and controlled (Search Financial Security, 2008). It involves internal factors defined by the officers, stockholders or constitution of a corporation, but also involves external factors such as consumer groups, clients and government regulations. When an organisation has a well-defined and enforced corporate governance, it makes sure the organisation adheres to accepted ethical standards as well as to formal laws. The board of directors at Qantas are responsible for ensuring that Qantas has an appropriate corporate governance structure to ensure the ‘creation, protection and enhancement of shareholder value.’ (QANTAS - Corporate Governance Statement. 2011) * How has Qantas responded to the carbon footprint?
The newly imposed carbon tax provides a larger incentive for the Qantas Company to reduce their emissions over the long term. In response to their contribution to the carbon footprint, Qantas has implemented a few measures in order to cut back on their carbon emissions. These measures include investing in ‘new technology, phasing out older, less efficient aircraft, reshaping [their] flying network, downsizing [their] growth plans and reducing [their] workforce.’ (Developing a More Sustaining Australian Aviation Industry, 2008). As fuel accounts for ninety-five per-cent of Qantas’ climate change impact, fuel efficiency is also one of the company’s best opportunities to minimise their footprint. One of the most effective ways of improving fuel efficiency is to invest in aircrafts that are proven to be fuel efficient. The fuel efficiency and lower emissions technology of the new aircrafts will prove to highly contribute to the...
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