Term Paper: Organization Behavior Sustainability Report

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[. . .] Lufthansa does not compromise on saving money at the cost of giving a risky journey to its passengers (Lufthansa 2012).

Research and Development for Biofuel Testing:

Lufthansa gives a strong emphasis on the Research and Development section in the area of biofuel usage in future. Keeping in view the issues and challenges of fuel consumption, Lufthansa carefully analyzes the data obtained from various research studies and reports so that it can predict the future availability and consumption of this raw material (Lufthansa 2012).

The Pure Sky Program:

Under Pure Sky Program, Lufthansa makes efforts to make arrangements for alternative fuels for its aircrafts and machineries. Through this program, Lufthansa ensures that the whether the new alternative fuel sources are technically, economically, and environmentally feasible for its business or not.

Air Traffic Management as a part of Environmental Responsibility efforts:

The Air Traffic Management program aims to bring efficiency in the air traffic systems around the world. The major role in this program is played by the EU Commission and the European Air Traffic Control Authority that designs the methods and ways in which the air traffic can be made to fly in a well-organized way. The program authorities perform a number of functions for its success; including arrangement of finance, training and development of staff, and conducting research and surveys to gather industry data (Lufthansa 2012).


Although Lufthansa Group has taken various steps to prove itself as a socially and environmentally responsible corporate entity, but still there is big room for improvements in all its policies, procedures, and operational areas. The following paragraphs recommend a number of strategies or steps which Lufthansa Group can undertake in order to make its current environmental sustainability practices more efficient and effective than before. These RECOMMENDATIONS are made in the light of two widely used sustainable business models; Natural Capitalism model and Value Proposition Model. These models give a framework to a business organization on how it can ensure a sustainable future in its industry by incorporating different environmental protection measures and practices.

The Value Proposition Model for Business Sustainability:

According to the Value Proposition Model, an organization is not there to make profits and grow in its industry; it must also show a deep concern for the society it serves and the environment in which operates. In the light of this model, it can be recommended that Lufthansa should first define what the key participants of the society are which must be taken care in order to strengthen the public image (International Institute for Environment and Development 2012).

Adhere to the Environmental Laws and Regulations:

The first and the foremost are the governmental bodies and regulatory authorities. Although Lufthansa has a proven track record of adhering to all the laws and regulations for business organizations, but it has not clearly defined the environmental protection laws in its Sustainability Report or other periodic publications. It is of utmost importance that Lufthansa includes these laws and regulations in its publications and communicates them to the employees and managers at all organizational levels (Kotler & Lee 2005). Moreover, it should include them in the annual reports so that other key stakeholders can also study the principles and practices which Lufthansa Group follows in the normal course of its business (Hond, Neergaard, & Bakker 2007).

Create Value for the Customers:

Secondly, Lufthansa Group can add value to the customers' flying experience and off-the-journey facilities by making the air transportation mechanism more convenient and efficient than before. As per the Value Proposition Model, Lufthansa Group can create value for its customers if it joins hands with those associated companies and subsidiaries that have a direct or indirect connection in the provision of its core services. These companies and subsidiaries can help it to serve its customers in a better and more effective manner (International Institute for Environment and Development 2012).

The Natural Capitalism model for Business Sustainability:

The second model is Natural Capitalism model which says that a business entity should also make its operations energy efficient so that they do not bring negative impacts for the external environment in which its business units operate, products are manufactured and distributed, or the services are rendered (Lovins & Garrison 2012). For Lufthansa Group, it can be recommended that it should increase the number of fleets per day so that every aircraft travels with fewer passengers. It will decrease the weight per aircraft; thus resulting in lesser fuel consumption. It can save its costs from unnecessary expenses that are incurred on customers on off-the-journey arrangements. These may include simple refreshments to the passengers that have to travel to nearer destinations instead of giving full meal treats.

Arrangement of Finance for Alternative Fuel Resources:

The money saved from such expenses can be expended on the arrangement of alternative fuel resources. These resources can be stored as backup in case the market runs short of fuel due to decreased supply or unexpected events. Unfortunately, the Group has not still started the alternative fuel resource program; all what is done so far is a limited Research on how the Company will get the alternative fuel in the future.

Alternative Fuel Resources Policies for the Short and Medium Run:

Moreover, the technical, economic, and environmental feasibility studies are made for the long run; there is no research available that could forecast the demand and supply of fuel in the short, or even in the medium run. The company should also plan for the near future as any unexpected event can hamper the growth of its business and profitability any time.

Concern for Natural Resources:

The Natural Capitalism model also requires a company to contribute in the eco-friendly endeavors (Lovins & Garrison 2012). Lufthansa has been doing a lot in the environmental protection programs, but it has not shown any concern for trees, water, or other natural resources. Although the CO2 omission has decreased this year, but it does not mean that Lufthansa has cut down its business operations to save the environment from bad impacts. The improvement in fuel efficiency is due to the modernization of aircrafts and machineries. Conversely, there are other top level aviation corporations of the world that have been expending a significant part of their capital on energy conservation, water and environmental sustainability. These corporations basically set an industry benchmark which then becomes a mandatory practice for other corporations in the industry. Therefore, it can also be recommended that Lufthansa follows the industry benchmarks and general procedures that other industry participants are following in their course of business (Epstein 2008).


Lufthansa Group has made a lot of efforts to become a socially and environmentally responsible business entity. The sustainability efforts of Lufthansa Group are based on five pillars that collectively define its policies, procedures, and contributions to the welfare of the society and the environment. The sustainability efforts of Lufthansa Group entail all the major aspects of social responsibility that can make an organization stand in the row of sustainable organizations in an industry.

The five pillars of Lufthansa Group's sustainability are; economic sustainability, climate and environmental responsibility, social responsibility, corporate citizenship, and corporate governance & compliance. At Lufthansa, the most important sustainability practices are Environmental Management Systems and the Environmental Responsibility Measures. Environmental Management Systems are the guidelines and framework for the whole Group on how it can incorporate values and practices that can improve its public image.

On the other hand, Environmental Responsibility Measures are the most effective steps that Lufthansa or its associated companies and subsidiaries have taken in their environmental protection objectives. These entire efforts make Lufthansa stand in the row of socially and environmentally responsible business entities around the world. On the basis of Value Proposition Model and Natural Capitalism Model, it can be recommended that Lufthansa should create value for all its key stakeholders by improving its customer services, saving money from unnecessary expenses, making the fleet more energy efficient, and planning for alternative energy resources for the short and medium run (International Institute for Environment and Development 2012).


Bleischwitz, R., & Hennicke, P. 2004, Eco-efficiency, regulation, and sustainable business: towards a governance structure for sustainable development. Northampton: Edward Elgar

Epstein, M.J. 2008, Making sustainability work: best practices in managing and measuring corporate social, environmental and economic impacts. 1st Edition. Sheffield, UK: Greenleaf Publications.

Hond, F.D., Neergaard, P., & Bakker, F.G. 2007, Managing corporate social responsibility in action: talking, doing and measuring. England: Ashgate

International Institute for Environment and Development, 2012, Business models for sustainable development. Available from [Accessed April 14th, 2012]

Kotler, P., & Lee, N. 2005, Corporate social responsibility: doing the most good for your company and your cause. N.J.: Wiley Corporation

Lovins, H., & Garrison, J. 2012, Natural Capitalism: Making the Case for Sustainable Business. Available from [Accessed April 14th, 2012]

Lufthansa, 2012, Sustainability Report… [END OF PREVIEW]

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