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Overview of 2010

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Engagement with Our Stakeholders

We recognise that systematic engagement with all stakeholders is an essential prerequisite for any long-term sustainability plan. We continued our five-year Stakeholder Engagement Strategy programme to ensure regular contact with each stakeholder group at least once every two years. Although the frequency of contact is planned in line with the reporting process, it also aims to identify stakeholder issues as they emerge. Stakeholder opinions are important to us as this engagement process ensures the materiality of our reporting and helps drive improvements in our business and operational performance.

In addition to our ongoing engagement throughout the year, we employ an independent facilitator to carry out focus group meetings with the following stakeholder groups targeted for 2010: CX pilots, sustainability experts, environmental and social NGOs, local Hong Kong businesses, our Stakeholder Review Committee, CX young employees and university/tertiary students in Hong Kong.

Key stakeholder issues on Stakeholder Engagement
The process of engagement. Building capacity of stakeholders. Engaging customers, especially on FLY greener. Communicating with stakeholders. Responsiveness.

Generally, we received an overall positive view of Cathay Pacific as a responsible corporate citizen. Our leadership within the aviation industry and on climate change issues was recognised, as well as the company's environmental, safety and community engagement initiatives. A number of stakeholders noted that there is room for improvement in our labour relations. The issues raised are in line with what we considered material to our business.

Key issues raised by the stakeholder groups are highlighted in the sections of this Report where they are addressed. Further details are provided on Stakeholder Issues and Cathay Pacific (CX) Response Map 2010.