The impact of Corporate Social Responsibility on Corporate Image: Evidence of budget airlines in Europe

Abstract

AbstractThere is growing scientific debate on the impact of Corporate Social Responsibility (CSR) or Corporate Hypocrisy (CH) on Corporate Reputation (CR). The aim of the study is to analyse the influence of CSR on CR based on literature review and results of conducted empirical studies and to test this relationship in growing budget airlines sector. Environmental responsibility of airlines was highlighted in this study. The empirical study conducted in Lithuania employed quantitative survey. And 400 adults were surveyed. The results indicated that CSR and CR in the budget airline sector are important for the Lithuanian customers. However, the study did not find the link between agreeing to pay a higher price for flight operated by socially responsible companies and the importance of airlines' CR in making a purchase decision. There was also no link found between the more frequent choice of flights operated by airlines conducting CSR activities and the importance of the airlines' CR in the purchasing decision. The relationship between airlines ‘past actions that determine their CR and the predictability of airlines' future actions were also found to be weak.