Research by: Sandeep Puri, Aishwarya Arora, Paribhasha Sharma, & Soumik Bhusan
Abstract
This case discussed the carbon offset credibility challenges Delta Air Lines faced following the filing of a class-action lawsuit in California federal court in May 2023 alleging greenwashing and misleading carbon-neutrality claims. Despite dismissing the lawsuit as one “without legal merit,” Delta had to address customer concerns about its commitment to decarbonization and sustainability and assure the court that the company was taking credible steps away from carbon offsets to more sustainable options toward fulfilling its net-zero carbon emission promise. How can Delta align better with customers’ expectations from net-zero carbon emission promises and be more transparent about its initiatives with all its stakeholders?
Learning objectives
This case study can be used in MBA-level courses on sustainability and ethics, as well as in marketing courses to discuss green marketing and greenwashing, and their implications for an organization. It can also be used in a services marketing course to discuss sustainability practices in the services sector, especially the airline industry.
After working through the case and assignment questions, students will be able to do the following:
- Understand the importance of sustainability in the aviation industry.
- Discuss the impact of consumer perception and behaviour on sustainability efforts to understand business sustainability models.
- Understand greenwashing and its implications for Delta.
- Explore how Delta can improve stakeholder engagement to enhance the credibility and impact of its sustainability initiatives.
To cite this case: Puri, S., Arora, A., Sharma, P., & Bhusan, S. (2024). Delta Air Lines Battles Carbon-Offset Credibility Allegations. Ivey ID: W38403. London, Canada: Ivey Publishing.
To access this case: https://www.iveypublishing.ca/s/product/delta-air-lines-battles-carbonoffset-credibility-allegations/01tOF00000606unYAA
