Abstract
The aim of this research is to explore the determinants of airline CSR. Stakeholder theory is the theoretical underpinning. Chief executive officers (CEOs) are the research target, which is theoretically underpinned by upper echelon theory. For data collection, this study used data from COMPUSTAT, EXECUCOMP, KLD MSCI, LinkedIn, and the Bureau of Economic Analysis. Standard industry classification code 4512 was employed to obtain information on airline companies. Moreover, the number of observations was 154, the number of firms was 15, and the study period was 1999–2016. CSR domains include employment, the environment, and the product. The explanatory attributes are the CEO’s age, tenure, education, share ownership, stock option, and duality. Ordinary least squares and feasible generalized least squares regression analyses were executed for hypothesis testing. Regarding the results, employment CSR was positively affected by CEO age. This study found an inverted U-shaped relationship between CEO tenure and environmental CSR. Environmental CSR was also negatively influenced by stock options. Product CSR was positively associated with CEO age, whereas it was negatively associated with CEO duality.
Highlights
Corporate social responsibility (CSR) has become a critical element for the achievement of business sustainability [1,2,3]; CSR can be applied to the airline business because numerous stakeholders are engaged in this business, and they have become more integral to the survival of organization over time [3,4,5]
This study examined the effect of Chief executive officers (CEOs) attributes on the CSR decisions of airlines
This study argued that airline CSR is less profitable and complex strategic execution
Summary
Corporate social responsibility (CSR) has become a critical element for the achievement of business sustainability [1,2,3]; CSR can be applied to the airline business because numerous stakeholders (e.g., employees, customers from diverse geographical regions, and suppliers) are engaged in this business, and they have become more integral to the survival of organization over time [3,4,5]. Given the power growth of stakeholders, CSR has received a great deal of attention, as it is needed for companies to achieve business sustainability because the careless treating of shareholders may have enormous negative effects (e.g., firm value destruction and poor reputation) on companies [6,7]. This study chooses the employee, customer, and environment as the main domains of CSR
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