Influence of Corporate Social Responsibility on airline companies' financial performance

Abstract

The purpose of this study was to provide recommendations to airline companies’ managers about CSR dimensions priority for investments. For this there were fulfilled several objectives: assessment of CSR dimensions of every airline company; assessment of methods of evaluation of influence of CSR on financial performance; examination of how CSR dimensions influence financial performance of the airline company. All the previous researches done on the topic of CSR – CFP interdependence and influence of CSR on CFP of different companies, including airline industry use only binary variables to depict the presence of CSR activities in different companies. But it was not found any research done on quantitative CSR values. This study could have made probably more accurate conclusion on how much different CSR activities can influence the financial performance. This research revealed the fact that only 3 variables out 8 studied influence the financial performance of the airline company expressed in Tobin’s Q: Product innovation, Women Employees and Employees turnover.