This past week Delta Airlines topped itself as a global destination leader with the acquisition of Northwest Airlines. The merger creates the world’s largest airline, a firm with that will have a
value of approximately $17.7 billion (according to Delta). According to a LATimes.com article, the Delta/Northwest merger provides Delta with a fleet of 800 planes with a staff of 75,000 employees. In addition, Delta will now fly more than 105 million passengers annually to more than 390 cities worldwide, and would be the largest airline in terms of fleet, destinations and total passengers.What’s interesting about the Delta and Northwest merger is the potential for Delta’s existing “Force for Global Good” initiative may have even greater global reach and influence. For those that are unaware, Delta’s “Force for Global Good” initiative is essentially their corporate social response solution to foster a more sustainable environment in the regions in which they provide service throughout the world. Delta’s web-site notes:
“Delta's employees, customers, and community partners—together form a force for positive local and global change, dedicated to bettering standards of living and the environment where we and our customers live and work. We are Delta's Force for Global Good.”
Delta focuses its “Force for Global Good” initiative on four critical social needs:
1. Breast cancer research in partnership with The Breast Cancer Research Foundation.
2. Protection and restoration of wildlife habitats including reforestation efforts in partnership with The Conservation Fund.
3. Elimination of poverty and substandard living conditions in partnership with Habitat for Humanity.
4. The need to think global but also act local on issues pertaining to “health and wellness” through its unique partnerships like the American Red Cross, Children’s Miracle Network, Martin Luther King, Jr. National Memorial Foundation, American Cancer Society, and The Juvenile Diabetes Research Foundation International.
Delta’s unique social response approach for engaging employees, communities and customers to have positive influence and impact on social needs is gaining elevation and respect. In 2007 Delta employees contributed more than $500,000 to The Breast Cancer Research Foundation, a record year for fund-raising at Delta on behalf of this cause.
Delta’s “Force for Global Good” initiative involves not just the firms’ employees and
community partners, but also customers. In the month of April 2008 Delta will “match all carbon offset donations” made by ticket purchasers to their “Force for Global Good” partner, The Conservation Fund via delta.com. Carbon emissions offsets can be made when airline tickets are purchased at delta.com. Delta’s offer states, “For every customer who donates to The Conservation Fund when they purchase a ticket online at delta.com between April 1 and April 30, 2008, Delta will match the contribution amount up to $10,000 for total contributions.” For those travelers seeking to reduce their carbon footprint associated with airline travel, the Delta Airlines April 2008 promotion is a wonderful way to have an even greater impact. 100% of the carbon emission offset donation will benefit The Conservation Funds’s Go Zero program.The Conservation Fund’s Go Zero program uses financial donations to plant trees to help offset carbon emissions. The Conservation Fund notes, “The average American's annual carbon footprint is just over 20 tons”. For airline travelers making a roundtrip flight from New York City to Los Angeles and back their carbon footprint would equate to approximately 1.19 tons (according to the The Conservation Fund - GoZero Calculator. The Conservation Fund estimates that at least one tree should be planted to offset each round trip between New York and Los Angeles.
At a time when airlines are being touted as the “New Culprit in Climate Change”, Delta’s social response partnership with The Conservation Fund to offset carbon emissions through reforestation practices is timely and necessary. Today’s companies are not evaluated by financial rating agencies, government, consumers or shareholders based solely on quality, service and price. These traditional tenants of business success remain the key performance indicators today. However, new indicators of success, focused on long-term sustainability are now reshaping how firms like Delta think about and conduct their business globally.
Building homes and revitalizing communities, conserving wildlife and natural resources, supporting local not-for-profit organizations focused on health and wellness, these are not the day-to-day business activities of most large corporations, particularly those that transport people over the Atlantic and Pacific oceans. However in an effort to create a better company and a better world, one that is more healthy, more diverse, and full of life and promise, Delta Airlines is becoming a “Force for Global Good”, competitively and philanthropically.
Does it make sense for a global airline like Delta to offer carbon emission offset programs in partnership with The Conservation Fund? Share with us your thoughts on how the Airline Industry can couple “green with green”, that is, remain financially strong while addressing contemporary environmental and energy challenges associated with airline travel.
Mark C. Coleman
Senior Associate & World Inc. Case Leader, AHC Group, Inc.
Mark@ahcgroup.com
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