Lindsey Helmick
MGT-320: Business Sustainability
4-2 Final Project Milestone Two: Corporate Social Responsibility and Management
Dr. Carmen Jones
January 26, 2023
Importance:
As society makes strides in lowering their carbon footprint, a spotlight has been put upon corporations to see that they do their part as well. Governments and consumers alike are making a push for businesses to do their part to better the impact their operations have on the planet. Adopting such policies will help bottom-line companies make the transition to become a triple- bottom-line company.
There are many benefits to utilizing the triple-bottom-line management approach, such as, "improving corporate culture, enhancing customer relationships, improving business performance, minimizing regulatory and governance risk, strengthened supply chain, and making your business more attractive to potential investors" (Farnham, 2021). Therefore, it would behoove Wheels Up to also adopt this approach as it could help their business grow.
Airlines have started to consider their carbon footprint and what they can do to decrease them or even reach carbon neutral status. The major area of focus to obtain this goal is the type of fuel airlines use. With the trend pushing toward an Eco-friendlier fuel. "The goal of using sustainable aviation fuels, or SAFs, is to reduce the amount of greenhouse gases emitted during the lifetime of the fuels, from production to combustion, compared with current petroleum-based jet fuels" (Krietsch Boerner, 2021).
Wheels UP has started the process of introducing environmentally friendly practices. For instance, their Connect Membership allows for members to propose shared flights with other members (Wheels UP, n.d.). Members also have the opportunity to book a seat, at a discount
fully offset the carbon impact of our flight operations through the purchase and retirement of applicable carbon credits or via another established and vetted mechanism. We are also examining other sustainability initiatives, including the potential use of sustainable aircraft fuel and long-range investments in other sustainability solutions, as well as operational improvements, sustainable practices at our facilities and a reduction in single-use plastics at our offices and aboard our aircraft" (Wheels Up, 2022).
Processes:
Wheels Up has seen tremendous growth in recent years. This has been made possible through several key acquisitions which increased their fleet and coverage area. "In 2019, they acquired TMC, the largest wholesale-focused light jet operator in the U.S. and Delta Private Jets, making Delta Airlines the largest shareholder in Wheels Up. In 2020, they acquired Gama Aviation Signature, a leading private aviation services company that provides aircraft management, private jet charter, and ancillary support for its managed aircraft. More recently, in 2021, they acquired Mountain Aviation, which has the industry's largest fleet of Citation X super-midsize
private jet service market.
The Wheels Up business model is based on selling different tiered memberships as well as on- demand flight services. Therefore, they are able to increase their net earnings by obtaining new
membership customers which brings in an annual premium per plan. While the on-demand services generate additional revenue. Their Q3 2022 reporting noted their "active members