Business clarity over CSR policy?
The Times’ City Diary column recently hinted at a potential “hatchet job” on Michael O’Leary [Chief Executive of Ryanair], by the hand of a well-known and long-standing BBC documentary series. This got us thinking – as we naturally do – of CSR issues, and specifically here of the question concerning a straightforward business approach to airline CSR.
Mr O’Leary may have his critics in the media, and indeed within the aviation industry – he is undoubtedly a forthright individual. However, none can knock his achievement of making Ryanair a standout success story, in a sector with few current reasons to cheer. O’Leary’s rather unorthodox approach to the budget business model, despite its numerous detractors, works. O’Leary can also claim [for good or bad] that his company’s operational approach is well ingrained in the public conscious. For those of you who have not experienced a Ryanair flight, it may reasonably be described as a cheap, soft seat, and a lot of extra, hard sell.
Let’s turn to the CSR angle. Traditionally you would expect some form of downloadable report, discussing CSR issues pertinent to the business’ model and sector. Ryanair’s website houses just a short page of text, discussing the environmental credentials of the business, under the tagline ‘Europe’s Greenest Airline’ (owing to its investment in the latest available aircraft). A little minimalist, perhaps. They might wish to consider adding a discussion of, say, the company’s approach to alternate fuels; issues of fair contractual employment (O’Leary apparently “refuses to recognise” trade unions, and insists on staff supplying their own uniforms); strategies in place for maintaining an ethical supply chain?
What the company does have is a very transparent sales operation. It is there unashamedly to get passengers onboard, and continue the selling well beyond the check-in gates. And in being clear about its approach, Ryanair is in fact demonstrating it is a socially responsible entity – albeit in a slightly unconventional sense. One could argue that, in contrast to a number of other airlines, Ryanair fares better for its direct business objectives. We know what it’s about when we step on the plane. In the words of Michael: “our strategy is like Wal-Mart: we pile it high and sell it cheap”.
