Scandinavian Airlines Case study
Scandinavian Airlines: The Green Engine Decision
1. Why should Scandinavian Airlines be concerned with environmental issues? What are some of the critical factors to consider?
As our society evolves, our knowledge expands and our awareness grows. Today as more and more people realize the importance of sustainability, companies find themselves re-evaluating their strategies. Airline industries in particular are perceived as contributing to the global warming effect, and are therefore subject to government regulations with regards to noise, CO2 and NOx emissions. Currently Sweden is a leader in reducing the effect of air travel on environment. To ensure these goals are met, a Swedish governmental agency called Swedish Civil Aviation Administration imposes fines and taxes on any airline that doesn’t conform to the standards of CO2 and NOx emissions (Lynes 4). Considering the fact Stockholm-Arlanda, a Swedish airport that utilizes such aviation charges is the center of activity for Scandinavian Airlines (SAS), it makes sense for SAS to concern itself with environmental issues to comply with government regulations and avoid fines.
Furthermore, commitment to greater sustainability creates a good public image as well as value for a brand. This plays a significant role in attracting investors, consumers, as well as potential talent. Investors view companies involved in environmentally friendly practices as a safer investment, because these companies are less likely to be involved in a massive lawsuit. In addition, banks and insurance companies have less liability concerns. Consumers prefer companies that are more ethically and socially responsible in their practices. Talented employees are also more likely to work for a company committed to environmental issues. Scandinavian culture in particular places significant of value on environment which further encourages Scandinavian Airlines to align its strategic goals with sustainability.
While it is true
1. Why should Scandinavian Airlines be concerned with environmental issues? What are some of the critical factors to consider?
As our society evolves, our knowledge expands and our awareness grows. Today as more and more people realize the importance of sustainability, companies find themselves re-evaluating their strategies. Airline industries in particular are perceived as contributing to the global warming effect, and are therefore subject to government regulations with regards to noise, CO2 and NOx emissions. Currently Sweden is a leader in reducing the effect of air travel on environment. To ensure these goals are met, a Swedish governmental agency called Swedish Civil Aviation Administration imposes fines and taxes on any airline that doesn’t conform to the standards of CO2 and NOx emissions (Lynes 4). Considering the fact Stockholm-Arlanda, a Swedish airport that utilizes such aviation charges is the center of activity for Scandinavian Airlines (SAS), it makes sense for SAS to concern itself with environmental issues to comply with government regulations and avoid fines.
Furthermore, commitment to greater sustainability creates a good public image as well as value for a brand. This plays a significant role in attracting investors, consumers, as well as potential talent. Investors view companies involved in environmentally friendly practices as a safer investment, because these companies are less likely to be involved in a massive lawsuit. In addition, banks and insurance companies have less liability concerns. Consumers prefer companies that are more ethically and socially responsible in their practices. Talented employees are also more likely to work for a company committed to environmental issues. Scandinavian culture in particular places significant of value on environment which further encourages Scandinavian Airlines to align its strategic goals with sustainability.
While it is true