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Corporate Social Responsibility and Financial Performance in the Airline Industry in Central and Eastern Europe

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  • Roman Asatryan

    (Department of Economics, Tomas Bata University in Zlín, Mostní 5139, 760 01 Zlín, Czech Republic)

  • Olga Březinová

    (Department of Economics, Tomas Bata University in Zlín, Mostní 5139, 760 01 Zlín, Czech Republic)

Abstract

This paper contributes to the knowledge on corporate social responsibility (CSR) initiatives of by businesses and its ability to influence their financial performance. Consequently, the main objective is to examine the relationship between CSR and financial performance in the airline industry in Central and Eastern Europe. The paper does not attempt to establish causality between CŚR and financial performance. The paper attempts to contribute to the existing knowledge in the field by examining the extent to which CSR relates to financial performance of airline firms. A sample of 20 audited financial statements of airline firms were selected randomly. The study analyzed the impact of CSR activities on the financial performance of firms. The Return on Equity (ROE) and Return on Assets (ROA) were used as indicators to measure financial performance of firms whiles the independent variables were Community Performance (CP), Environment Management System (EMS) and Employee Relations (ER). The study found that there is a significant positive relationship between CSR initiatives and financial performance measures. More specifically, there was found to be a positive relationship between the independent variables of CSR thus, CP, EMS and ER and the financial performance of airline firms in terms of the ROE and ROA.

Suggested Citation

  • Roman Asatryan & Olga Březinová, 2014. "Corporate Social Responsibility and Financial Performance in the Airline Industry in Central and Eastern Europe," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(4), pages 633-639.
    • Handle: RePEc:mup:actaun:actaun_2014062040633
    DOI: 10.11118/actaun201462040633
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    References listed on IDEAS

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    1. Crane, Andrew & McWilliams, Abagail & Matten, Dirk & Moon, Jeremy & Siegel, Donald S. (ed.), 2009. "The Oxford Handbook of Corporate Social Responsibility," OUP Catalogue, Oxford University Press, number 9780199573943, Decembrie.
    2. Stephen Brammer & Chris Brooks & Stephen Pavelin, 2006. "Corporate Social Performance and Stock Returns: UK Evidence from Disaggregate Measures," Financial Management, Financial Management Association International, vol. 35(3), pages 97-116, September.
    3. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
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    Cited by:

    1. Yaeri Kim & Seojin Stacey Lee & Taewoo Roh, 2020. "Taking Another Look at Airline CSR: How Required CSR and Desired CSR Affect Customer Loyalty in the Airline Industry," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    2. Souhaila Kammoun & Youssra Ben Romdhane & Sahar Loukil & Abdelmajid Ibenrissoul, 2021. "An examination of linkages between corporate social responsibility and firm performance: Evidence from Moroccan listed firms," Estudios Gerenciales, Universidad Icesi, vol. 37(161), pages 636-646, October.

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