Taking another look at airline CSR: How required CSR and desired CSR affect customer loyalty in the airline industry

Abstract

This study aims to take another look at corporate social responsibility (CSR) dimensions in airline industries and identify the moderating effects of socio-economic characteristics on customer loyalty. We applied Carroll's four CSR dimensions and reorganized economic and legal responsibilities under 'required CSR' and philanthropic and environmental responsibilities under 'desired CSR'. The current study reveals that customer loyalty increased when customers perceived airlines to be practicing desired CSR, but not for required CSR. However, this effect varies depending on the expected moderator of socio-economic variables. Regarding required CSR, customers with higher levels of either income or formal education showed increased customer loyalty. However, for desired CSR, only customers with higher levels of education showed significantly increased customer loyalty. Thus, the research findings imply that in order to effectively deliver CSR strategies, airline CSR initiatives also need to take into consideration the socio-economic levels of targeted consumers.