CSR: Need for aviation organisations, airlines to embrace initiative
Corporate Social Responsibility (CSR) is not well-pronounced in the aviation industry in Nigeria, but stakeholders say such an initiative may increase patronage for business organisations and attract public sympathy, especially for the airline sub-sector. OLUSEGUN KOIKI writes.
Many Nigerian companies find it difficult to give back to society especially the environment where they operate from. Several analysts believe that Corporate Social Responsibility (CSR) is weak in the country.
While many companies post super profits annually, they are unwilling to invest in social services such as education, health, roads, security, orphanage homes, sports, or the community. However, this happens all over the world where the capitalist spirit has fully taken roots.
CSR is a form of self-regulation, conscious attempts and self-efforts undertaken by organisations for self-preservation and enhancement of their operations.
CSR is usually integrated into a business model for an organisation to be able to live in harmony with its operating environment.
However, financial performance of an airline is mainly measured by Return on Assets (ROA), Return on Equity (ROE), and Cost per Available Seat Kilometer (CASK), but empirical studies claimed that airlines which practise CSR enjoy better profitability than its counterparts.
Analysts in the aviation industry said CSR initiatives on multiple dimensions enhance an airline’s financial performance through improving credibility with customers, community performance and employee relations.
In the Nigerian aviation industry, many organisations in the sector in the past, hardly give back to the society and the immediate environment where they operate from. For decades, not much was heard about CSR in the sector.
But, in recent times, some organisations in the industry, especially the airlines, inculcated the habit of giving back to the society by supporting the less privileged, organisations, sporting activities, Non-Governmental Organisations (NGOs) and others in their immediate community.
For instance, in the heights of the xenophobic attacks in South Africa in 2019, Air Peace evacuated about 400 Nigerians stranded in the Southern African country who were willing to return to the country in two batches with its Boeing 777-300 aircraft free of charge.
This gesture by the airline received accolades from the national and international community, including from the Federal Government.
Geoffrey Onyeama, the Minister of Foreign Affairs, had lauded Air Peace for the successful evacuation of the Nigerians who were willing to return home.
Also, speaking on the evacuation, Chief Allen Onyema said he decided to airlift the stranded Nigerians from South Africa because of his passion and vow to God.
Besides, apart from the evacuation of Nigerians from South Africa, the airline during the height of the Covid-19 pandemic, also evacuated over 1,000 Nigerians stranded in the United Kingdom and China at very low airfares, compared to the high rates charged by international airlines.
Also, the airline further rescued citizens of Israel, Indian, China, United Kingdom and others at very low airfares within the same period.
Onyema, however, said that apart from the South Africa evacuation of Nigerians and the other recent CSRs that were attributed to him and the airline, he had done bigger things for the country in the past and mentioned the sustenance of nonviolence trainings and engagements with the Niger Delta fighters that led to the stabilisation of oil production, which daily output had plummeted to an all-time low of 700 barrels from 2 million.
Besides, Onyema said he used his NGO, Federation for Ethnic Harmony of Nigeria (FEHN) to push across the trainings that took participants to South Africa, the US and other locations.
He said: “In 2005, at the height of the Niger Delta militancy, only 500,000 barrels were being produced for a population of over 180 million people. I told my staff that this militancy issue, I must fight it and we achieved amnesty for the former militants. Today, everything is history.”
Besides, Air Peace last month, sponsored the Nigeria’s Super Eagles team as the country campaigns for the Qatar 2022 World Cup with bonus packages for victory and about two weeks ago, the same airline emerged as the major sponsor of the forthcoming Gulder Ultimate Search programme.
The airline, which came into the country’s aviation industry about seven years ago, stakeholders in the Nigerian aviation industry said, has proven to be a credible partner in project Nigeria, while Onyema has demonstrated the nexus between indigenous company and national development since it came onboard.
Also, Dana Air and Bristow Helicopters, among a few other Nigerian airlines participate in various CSRs, which are aimed at offering the helping hands to the less privileged in the society.
Need for CSR by Airlines, others
Engr. Abednego Galadima, the President of National Association of Aircraft Pilots and Engineers (NAAPE), while commenting on the issue, said that only a few airlines and other organisations in the industry engage in CSR initiatives.
Galadima explained that as an industry that has good leverage, the sector could do better, stressing that CSR was a way of contributing to the development of the society in particular and the nation as a whole.
The NAAPE President attributed the weak performance of Nigerian airlines and other organisations to CSR to the poor state of the economy, stressing that several investors and employers are struggling to remain in business.
“The state of the economy is biting everyone, but when it comes to being your brother’s keeper, nothing is too small and the whole idea is about intent. Once they show their hands, and there is intention. I know they can build up from there,” he said.
He, however, charged other airlines to take a cue from Air Peace, which he said had taken the lead in CSR in recent times, adding that this would also enhance public confidence in the operations of the airline.
According to him, some of the revenues saved from the recent waivers on Customs duties, palliatives and removal of Value Added Tax (VAT) granted operators by the Federal Government could be expended on CSR.
He said: “I think the government has done something that should be able to help the airlines to look into that direction (CSR). For instance, the removal of VAT and palliatives to the airlines and others are government gestures. So, no matter how small, they should be able to start something and from there. The government would be motivated to do more for them. I think from their little profits, the airlines and other organisations in the sector should be able to look around and encourage social partners.
“I want to say here that we can do more as an industry in terms of our Corporate Social Responsibilities (CSRs). I know Air Peace is doing a lot in this direction and started with the evacuation of Nigerians in 2019 and in recent times; the airline went into sports and it is encouraging national unity. This is commendable.”
Comrade Ocheme Aba, the General Secretary, National Union of Air Transport Employees (NUATE), also commenting, said that CSR is necessary for the growth of any company, especially for organisations and airlines in the aviation industry.
Aba, however, lamented that the difficult operating environment in the sector made it difficult for operators to take such an initiative as a top priority and mentioned low profit margin among airlines as one of the major reasons organisations hardly engage in CRS.
He, however, lauded the likes of Air Peace for believing in such an initiative, which he said had further repositioned the sector for the better in recent times and called on other organisations to take a cue from it.
He said: “This is something that is not well-pronounced among aviation companies in Nigeria, but I am aware that Air Peace to some extent is doing some CSRs and I am also aware that the aviation companies that have to do with communities do a lot of CSRs within the oil communities they operate into.
“However, the first thing we should note is that doing business in aviation is very difficult. We all know that profit margin, even within the best run airline, is not more than 5 to 7 per cent.
“So, in that regard, they don’t really have much profit and so, survival is a very big battle for them. Notwithstanding, I think it is the consciousness of it that is lacking in our industry. We don’t think there is such a need for us to make contributions in such regards, but if we are to make some improvements, it will be required that we put the issue of CRS into the consciousness of aviation companies.
“CSRs generally will aid such business and further advertise the companies that are involved in it. The Air Peace CRSs is attributable to the disposition of the owner of the airline, rather than the corporate decision of the carrier, but the owner of the airline deserves commendation for believing in such a lofty initiative,” he said.
Also, Mr. Chris Amokuwu, aviation analyst said that CSR contributes to an increase in passengers for airlines, saying that as the public gradually realises the importance of sustainable development, it is probable that customers consider CSR when they patronise a business.
Amokwu called on the nation’s airlines and other business organisations to imbibe the initiative, but noted that for a CSR initiative to work, such an airline must communicate it without ambiguity and concealment to the stakeholders and warned that or else, both parties would not be able to benefit from it, but commended Air Peace for taking the audacious step to partner with NGOs and other less known organisations to uplift the nation.
