The Effects of Corporate Social Responsibility on Corporate Reputation: The Case of Incheon International Airport

Abstract

This study aims to intensively analyze the effects of Incheon International Airport’s implementation of Corporate Social Responsibility (CSR) on its reputation. CSR activities constitute a significant role as management strategies and sustain their business reputation in the airport industry based on the Incheon International airport in Korea. The purpose of this study is to provide CSR activities to promote the sustainable development of airports by verifying the impact of CSR on airport reputation through mediate variables within the airport industry in consideration of the value and importance of CSR. A survey was conducted for a total of 297 Incheon International Airport users, and the collected data was analyzed using the structural equation model. As a result, it was found that CSR has a positive effect on reputation. Therefore, CSR activities can positively enhance customer perception, strengthen the importance of sustainability, and play a very important role in Korea’s airport industry. It is expected that the results of this study will be used as basic data to emphasize the relative importance of airports’ CSR activities to enhance the reputation of airports in Korea and have a positive impact on sustainable development.

1. Introduction

During recent years, corporate social responsibility (CSR) has become one of the critical considerable criterion for businesses and academics alike. Today, many companies consider CSR an important corporate strategy for achieving a competitive advantage [1,2]. CSR has been commonly accepted as an essential issue for companies to address in order to ensure their sustainable development and competitive advantage. Successful companies balance economic and social goals by integrating social concerns into their core operation frameworks and business strategies [3]. CSR creates values by reducing costs and risks, developing reputation and legitimacy, gaining competitive advantages, and achieving win-win outcomes by synergistic value creation [4]. To achieve sustainable development and long-term development, companies have moved beyond compliance with the CSR regulations and viewed CSR as an investment that creates benefits [5]. Therefore, the implementing of CSR can possibly be understood as a core business strategy that enables companies to enhance their competitive advantage that differentiates themselves from their competitors and maintain sustainable relationships with their stakeholders [6]. Therefore, CSR strategy is important and essential for sustainable development and long-term operation of a company.

For this research, CSR initiatives will aim to evaluate or evaluate a company’s contribution to the overall development of society over time, as well as project analysis that evaluates its impact on the environment or society. From a theoretical point of view, indicators of CSR or ‘business ethics or corporate sustainability’ [7] should help to build a high reputation in a company [8]. Hence, CSR initiatives can be an effective means of improving reputation [9]. According to research, reputation could possibly be considered one of the areas that can contribute to a corporation’s sustainability [10]. Previous studies have shown that corporate reputation is one of the most valuable intangible assets [11,12]. In this study, we highlighted reputation based on the CSR initiative perspective in the airport industry [11]. CSR initiatives can be an effective means of improving reputation [9]. According to research, reputation could possibly be considered one of the areas that can contribute to a corporation’s sustainability [10]. A favorable assessment of reputation may strengthen the mission and value of the entity and contribute to future efficiency and productivity [13]. According to Lee et al. [14], it was shown that CSR activities were directly or indirectly related to corporate achievement. Therefore, researcher [15] argues that CSR (social, economic, and environmental) aspects have a significant and positive impact on the reputation of a company. In addition, this conclusion was supported by [16,17,18] studies. Therefore, implementation of CSR initiatives is an effective means of improving reputation, which can achieve sustainable management of the enterprise [9]. Based on these studies, this study aims to highlight the reputation that can benefit airports in Korea through effectiveness of CSR initiatives [11].

Today, airports need to provide a variety of social activities to increase the added value, such as strengthening social responsibility and expanding moral obligations. As CSR was recognized as an important variable in the modern industrial landscape, it became a key strategy for corporate management activities [18,19] Additionally, you can build a positive reputation by fulfilling the moral obligations of the airport. Reputation refers to the company’s achievement, based both on its perception in the past, and on future expectation [20]. Based on the airport sector, CSR suggests that a company’s social activities will take into account their expectations and awareness that positively influence the airport’s stakeholders and achievements [21,22], which in short, form the basis of its reputation [23]. In the future, airports may have to work with communities to contribute to sustainable development and carry out responsible activities that have a positive impact [19]. An airport has a positive impact on airport reputation through various social, environmental, and economic programs related to corporate social responsibility (CSR) [24].

Therefore, this paper addresses several research gaps. Previous studies have shown that CSR is an important component of an enterprise’s strategic tools in enhancing its positive reputation by improving trust, satisfaction, and image [25,26,27]. Thus, the research questions for this study were posed. First, the implementation of CSR activities has been activated in the last few years. Do CSR activities positively affect reputation based on airports in Korea? Second, which of the mediate variables (company’s image, trust, and satisfaction) will have a positive effect on improving the correlation between CSR and reputation in Korea’s airport industry? Lastly, do Korean airports have the potential to compete with global airports through CSR activities and promote future sustainable development? The importance of CSR can create a high reputation to help companies achieve sustainability [25,28]. At the same time, several studies have shown that CSR is an important component of a company’s strategic tool in enhancing its positive reputation by improving trust, satisfaction, and image [25,26,27]. However, few studies have examined the impact of CSR activities on airport reputation. In addition, most of the previous literature focuses on CSR activities with trust, satisfaction, and image [18,19]. In the past, various studies have been conducted on CSR and airport fields in overseas studies [7], however, it is particularly lacking in Korea, and it is still considered necessary. To the best of my knowledge, there are not many papers on the correlation between CSR and reputation for existing airports in Korea. This study will be expected to demonstrate that there is potential to generate a high reputation through the importance of CSR to airports in Korea in the future, which can bring positive reputation and long-term business benefits. Thus, this study conducted a survey on Incheon International Airport company among airport companies in Korea. Through this, it could possibly contribute to long-term research on the sustainable development of airports in Korea in the future. Therefore, results of this study will describe the sustainable development of the airport industry through CSR initiatives and the importance of reputation [18,19,24]. By targeting the airport, this study aims to clarify the correlation between CSR and reputation based on Incheon International Airport through parameters for the sustainability and development of the Korean airport industry.

2. Literature Review

CSR is often defined in general terms as an initiative to enhance the value of a company [25,27,29]. Scholars [30] have argued that the consumer plays a vital role in determining a corporation’s identity by evaluating its CSR current and proposed programs. Accordingly, corporations are keenly aware of the need to implement CSR both externally and internally as they recognize its importance in building their reputation and promoting sustainable development.

Corporate social responsibility is described as the initiative that is undertaken to achieve sustainable outcomes by complying with and resolving laws and ethics with profitable activities associated with companies. Corporate social responsibility incorporates the concepts of sustainability within the local and international economies of the company and each stakeholder [31]. In other words, CSR is described as a factor that can strengthen a company’s competitive advantage through activities that have a positive impact on society by responding appropriately to the needs of stakeholders by continuing to exist [32]. With that in mind, the current research explores the relationship between CSR and reputation at Incheon International Airport from the perspective of the airport’s users. Therefore, this study will put a spotlight on the positive relationships between CSR and reputation through key mediate variables, including trust, satisfaction, and image.

2.1. CSR

To establish positive relationships with members across demographic groups in society, CSR is an important strategy for airports to sustain long-term business prospects [33]. For the present study, CSR is characterized as appropriate activities for the environment, social communities, and the airport [28,34]. Most researchers have defined these acts as embodying the formation of contributive programs to alleviate social causes and save the environment [35].

Previous studies have asserted the effectiveness of implementing sustainable development with CSR activities directed towards society [36,37,38]. A strong focus on social affairs has a greater impact on enhancing the reputation and value of a corporation than focusing on products and/or services [39]. Previous literature suggests that the implementation of CSR activities is associated with many positive outcomes. This includes image, trust, satisfaction, and reputation [25]. In particular, this research is about correlation between CSR and reputation that enhance a company’s benefits. CSR is recognized as a potentially relevant attribute [27,29]. Therefore, ethics and social practices are considered key factors that can promote corporate interests [40]. Another empirical study determined that an airport’s CSR was an important driver of reputation [41].

Some researchers have emphasized the importance of image to reputation, arguing that most studies place the value of CSR efforts to society as more important than the quality of services or products [31,42]. Some scholars [43,44] have also claimed that CSR plays an important role in generating a positive impact on image. When a government-run entity endeavors to implement CSR activities towards social and environmental issues, people will form positive impressions and will express interest in lending support [29]. Other studies have confirmed that CSR emphasis as a major component of internal value fosters a positive image for an airport [45].

Recent studies have argued that airports consistently strive to build trust [36,46], and airports should provide CSR activities to gain this trust. In fact, in long-term sustainable development, social responsibility activities can have a positive impact on airport customers as the image and value of trust of the airport is more important than loyalty [44,47]. Previous studies have argued that CSR should be considered an important value along with trust. In other words, CSR activities at airports have a significant relationship with trust, which can lead to a positive relationship with reputation in the future [47,48].

In today’s business climate, a company’s CSR activities aim to harmonize with sustainable development that positively affects society [37,49]. Airport users will be positively affected by airport’s actions when the value of relevant socio-economic programs through CSR social activities benefits society and the environment [37]. Through empirical research, researchers have concluded that CSR plays an important role in enhancing customer satisfaction [50,51]. Thus, efforts to cultivate highly positive satisfaction should be associated with CSR [25]. According to scholar [18], there is a positive connection between CSR and corporate reputation and that CSR activities can strengthen trust, image, and satisfaction which mediates the relationship between CSR and corporate reputation. Therefore, these results [18,44] further proposed that CSR has a direct positive effect on corporate reputation.

The following hypotheses are presented.

Hypothesis 1 (H1).

CSR has a positive effect on trust.

Hypothesis 2 (H2).

CSR has a positive effect on image.

Hypothesis 3 (H3).

CSR has a positive effect on satisfaction.

2.2. Trust

Trust is related to a company’s integrity. It is defined as the perception that an organization will meet a particular set of expectations in the future [47]. Other researchers [46,52] have insisted that trust is an indicator that a company is implementing activities to satisfy the moral obligations of society, transparency, and responsibility. Trust can clearly affect a company’s reputation by linking the company to its moral obligations to society [47]. This finding may be related with the scope of a company’s trust, which can be evaluated as a commitment with stakeholders and a positive reputation among airport users [25,53]. In other words, the recognition of CSR activities at airports is evaluated through trust in order to build strong cooperative relationships with users [53,54]. It could also possibly be described as building a high reputation that can contribute to the airport sector in Korea in the future [44,55].

Empirical studies on CSR argued that trust plays a vital role in enhancing company’s reputations [56]. The present study also suggests that trust is the result of strategic activities designed to garner a positive reputation through CSR programs. Trust helps to amplify the capabilities of an organization to create ripple effects that generate positive effects not only for itself but also for society. Therefore, trust is an important component for airports in the eyes of society [34,57].

The following hypothesis is derived.

Hypothesis 4 (H4).

Trust has a positive effect on reputation.

2.3. Image

Image has been defined as the first impression that customers envision with respect to social and economic aspects [42,47]. Many researchers [47,58] have differentiated image into three types: social, environmental, and economic. The social aspect describes social welfare activities, which include charity work for local communities. The environmental aspect includes activities such as campaigns to reduce food waste and CO₂ emissions. These activities are designed to help save and protect the environment. The economic aspect, as it relates to airports, would include programs that foster high school and university students who might become future aviation experts, further developing aviation industries [59].

Not many CSR studies have analyzed the positive relationship between image and reputation in the airport industry. However, researchers [31,60] have discovered that a lot of different industries are endeavoring to intensively increase their reputations by initiating CSR programs and leveraging image. Likewise, a user’s perception of an airport’s image is affected by CSR programs because such programs are connected to sustainable development, which will enhance reputation [42]. CSR initiatives may also directly affect corporate image and reputation [61]. An airport can recognize CSR as a social responsibility as part of its image. Corporate reputation may vary from corporate image in a way that enables them to demonstrate the desirable perception derived from past outcomes or achievements [10]. Thus, scholars have found that corporate image is most often a prerequisite for corporate reputation [10]. From this point of view, some studies [27] have argued that image is an important factor in enhancing an airport’s reputation.

Thus, the following hypothesis is presented.

Hypothesis 5 (H5).

Image has a positive effect on reputation.

2.4. Satisfaction

Satisfaction is a key strategic element for airports [62]. In research on airport users, satisfaction has been defined as a psychological aspect in which customers are pleased because the implementation of an airport’s social responsibilities allows the airport to meet customer expectations by complying with a wide array of issues [19,32].

Moreover, a company’s engagement in CSR activities influenced customer satisfaction [25]. The researcher [63] investigated the impact of CSR initiatives on customer satisfaction. As a result, customers are more satisfied when businesses engage in CSR initiatives. Scholars [64] found a positive association between CSR and customer satisfaction. Therefore, through CSR activities, [65] concluded that social responsibility resulted in an increased high reputation.

Satisfaction could help to increase the values, perspective, and recognition of an airport that contributes to social supports for communities [25,66]. The present study highlights the relationship between the importance of satisfaction and airports’ success through CSR programs. Previous research on CSR has demonstrated that satisfaction has a significant and positive relationship with reputation [18,37]. This study considers that an organization’s success, both socially and strategically, can generate positive recognition from consumers. Satisfaction is a perceived criterion indicating that there is a preference for all aspects of an airport’s social responsibility [44,67]. Therefore, strengthening airport customers’ satisfaction could possibly serve to continuously raise reputation [25,51].

This discussion offers the following hypothesis.

Hypothesis 6 (H6).

Satisfaction has a positive effect on reputation.

2.5. Reputation

A corporation’s reputation can be defined in various aspects. It could possibly refer to one of the various strategic managements that leads to the achievement of a corporation’s sustainable development [68]. In addition, reputation can be measured as one of the main indicators for evaluating a company’s reliability and image [69]. In the case of a company’s reputation, trust and image are important factors in building positive relationship between the company and its stakeholders [70]. Followed by other research, the implementation of appropriate CSR initiatives contributes to greater satisfaction with the company’s reputation [71,72]. In relation to an airport’s social responsibility, reputation could be both personal and collective identity which results in a positive externality [73]. In other words, reputation is considered as an intangible asset that directly affects the sustainable development of a company. This is because a tremendous reputation is essential for sustainable development in any industry [74]. Therefore, a corporation’s CSR activities will strengthen its reputation. This can contribute to strengthening the airport’s competitiveness by creating a strong reputation and being recognized by various stakeholders [75]. Thus, CSR can help companies to gain a competitive advantage [76]. Previous studies related to CSR have consistently emphasized a positive and significant relationship between reputation and CSR programs [27,77]. This relationship fundamentally enhances the roles of CSR programs in airports as they try to respond comprehensively to customer expectations and social commitments to establish positive impacts on airports [78]. Therefore, corporate reputation is defined as a company’s achievement due to its interaction with activities [23]. It has been pointed out that CSR initiatives create a reputation and help companies to increase their overall reputation. This enables companies in various sectors, including the airport industry, to recognize the importance of reputations and competitive advantages [41,79].

This study highlights that reputation is a key long-term strategy that will promote the airport’s sustainable development to emphasize its core long-term strategy [25,66]. Reputation could possibly contribute to the airport’s social responsibility and will have a positive impact on the airport [80]. CSR is considered an enhancement of the value of sustainability such as moral obligations and social responsibility. Based on the importance of CSR programs, this study defines it as an achievement that positively affects the reputation of the airport [25,44].

3. Methodology

3.1. Research Model

Based on theoretical research that has been examined, a quantitative method was employed to verify the effects of CSR activities on trust, image, satisfaction, and Incheon International Airport’s reputation. For measurement items, related variables were derived from previous studies, and some terminologies were adjusted to fit this study. The survey questionnaire was given to students from Korea Aerospace University (KAU), and measurement items were identified by two airlines and three airport experts. To estimate the statistical hypotheses, Figure 1 shows the research model.

In order to validate the research, this study focused on confirmatory factor analysis (CFA) as the initial step of the measurement model assessment to ensure that analysis methods have been verified in accordance with the recommendations in the literature [81]. The purpose of this paper is to provide an initial overview of measurement quality assessment in order to apply the CFA in PLS-SEM method, since this method is the most suitable composite method for estimating SEM [82]. The general validity testing of the model was carried out in the framework of the SEM (structural equation modeling) approach by applying the CFA method by Afthanorhan [83].

3.2. Data Collection and Data Analysis

The survey was conducted with Korean individuals with experience using Incheon International Airport. The survey period ran from December 2021 to January 2022. The items on the questionnaire were structured with five components (i.e., CSR, TRUST, IMAGE, SATISFACTION, and REPUTATION), resulting in a total of 22 items. These questions were measured using the 5-point Likert scale dividing the responses from 5 (“strongly agree”) to 1 (“strongly disagree”) (Table 1).

The survey was conducted using the random sampling method to verify that the users had a background knowledge of CSR. A Google form questionnaire was distributed to 301 respondents who demonstrate a core knowledge of the concept of CSR. The questionnaire also collected demographic information about gender, age, occupation, education, purpose, and number of visits, as shown in Table 2. To evaluate the reputation of airports for CSR, this study applied the scale used by [27]. The scale has three items for environmental research [18,59,88], four items for social research [18,43,90,94], and three items for economic research [18,97,101].

In this study, reliability was measured according to three criteria [25,47]; image was measured with three indicators [25]; satisfaction by three items [18]; and reputation by three items [25,59]. The components of this study are shown in <Table 2>. As this study was conducted on Koreans, it was translated into Korean and reviewed by two airport experts and one expert with a Korean language major. As awareness of CSR was low during the survey, it will be explained that the relevant construct is quoted and translated for easy understanding. In the Korean translation, linguistic sentences were distributed after being reviewed.

To analyze the feasibility and reliability of the measurements, this model used SPSS version 25 to conduct various analyses including internal reliability (Cronbach’s alpha), descriptive statistics, and AMOS 23 for conducting analysis of CFA including model fit analysis, SEM path analysis, convergent reliability, discriminant reliability, and to validate the hypotheses [81,107]. Based on the theoretical research examined, this study uses the structural equation model (SEM) to examine the theoretical model and hypotheses. To ascertain the empirical analysis, the SEM validates the theoretical models, including the measured variables and structural model [24]. This study conducts a confirmatory factor analysis (CFA) based on the SEM to verify all measured variables in the research model [24].

4. Data analysis and Results

4.1. Demographic Features

Table 2 shows that among the 297 total respondents, 166 (55.90%) were male and 131 (44.10%) were female. In terms of age, five people were under 20 (1.70%), 87 people ranged from 21 to 30 (29.30%), 77 people ranged from 31 to 40 (25.90%), 69 people ranged from 41 to 50 (23.20%), 54 people ranged from 51 to 60 (18.20%) and five people were 61 or above (1.70%). The responses indicated that 25 participants graduated from (were studying at) a high school (8.40%), 32 participants graduated from (were studying at) a college (10.80%), 194 graduated from (were studying at) a university (65.30%), and 46 participants graduated from (were studying at) a graduate school (15.50%). Therefore, more than 60% of the sample had a university degree. The survey results show that 43 respondents were students (14.48%), 58 respondents were practitioners/researchers (19.53%), 44 respondents were sales/services providers (14.81%), 67 respondents were office workers (22.59%), 31 respondents were government officers (10.44%), 11 respondents were freelancers (3.70%), nine respondents were housewives (3%), and other occupations accounted for 34 respondents (11.45%). For purpose, 240 respondents listed vacation (80.80%), followed by work/business with 48 respondents (16.16%), visiting relatives with four respondents (1.35%), education with one respondent (0.34%) and other purposes with four respondents (1.53%). Regarding the average number of annual airport visits, other than the category specifying 9 to 10 times, all categories were selected. 213 respondents visited fewer than two times (71.72%), 62 respondents visited three to four times (20.88%), 12 respondents visited five to six times (4.04%), two respondents visited seven to eight times (0.67%) and eight respondents visited more than 11 times (2.69%). Thus, more than 70% of the total number of respondents visited Incheon International Airport fewer than two times annually. The study in [108] highlighted the concerns about the stability of the aviation industry due to the recent COVID-19 pandemic. Passenger demand has declined sharply due to COVID-19, including in South Korea, which has lost an average of 50% of connections and network efficiency has declined even more. Therefore, the number of people who responded the questionnaires was inevitably very limited. In addition, the number of travels through the airport was higher in 2016 before COVID-19 [109]. Thus, according to the results of survey respondents on demographic characteristics, the proportion of survey respondents was not high, as air passenger demand did not fully recover as the global COVID-19 pandemic continued. According to the graph, most of the total demand was travel through airports (80.80%). In addition, 71.72% of the respondents said that they used the airport twice or more. This may explain the survey results that show that there is a steady demand for international/domestic flights traveling for at least one year. To be more specific, it can be explained that occupational groups engaged in office work (22.59%), or professional/researcher (19.53%) often travel. In addition, above all, various age groups were traveling, and they continue to travel using the airport even during the constant outbreak of COVID-19. In other words, there is a concern about the stability of the temporary COVID-19, and if the pandemic disappears, more respondents could be received [64].

4.2. Reliability and Validity Test

This study uses a CFA to examine the measurement variables and the factor structure of the variables based on verified theories from previous studies. The analysis of fit indices validates the researcher’s model [24]. Moreover, the convergence validity and reliability are examined using a squared multiple correlations (SMC) value and construct reliability (CR) value. The results of the CFA variables demonstrate that each variable has greater than 0.5 SMC and a 0.7 CR. Therefore, the provided measurement model consists of components that are within the acceptable level of the goodness-of-fit for both the CFA and path analysis. The CFA results are shown in Table 3 [24]

4.3. Discriminant Validity

To analyze correlations within given variables, a discriminant validity was conducted as shown Table 4, with a remaining correlation between two specific factors. [24,110]. According to the analysis results, although CSR is an important issue in the airport industry in Korea, the possible explanation for the result that correlation exists between CSR and reputation (0.484) still lacks understanding of CSR. This is related to the lack of promotion of the airport’s social activities or the proper disclosure of their CSR activities. As many domestic airports overlook CSR activities that could be seen that among many variables. Therefore, the reputation of the company is particularly low, which is related to evaluation as an indicator of performance, so the recognition of CSR activities in relation to reputation is low. For these possible reasons, the correlation of CSR in general was lower than other factors that were more familiar or understood by the public [110].

4.4. Fit Indices

Moreover, fit indices were examined as shown in Table 5 to maintain the sustainability of this model. The results of the measurement model found that all fit indices are within acceptable ranges (x² = 508.185, CMIN/DF = 2.808, GFI = 0.868, AGFI = 0.816, RMR = 0.039, RMSEA = 0.078, NFI = 0.911, TLI = 0.924, IFI = 0.941). Other than AGFI and GFI, which do not reach the standard value of 0.9, all indices are satisfied. Accordingly, this research can be considered appropriate [111]. These results indicated that no problems existed in terms of satisfying the acceptance levels of the goodness of fit for both CFA and the path analysis.

4.5. Hypotheses Test

This study provides a summary of the path analysis from the research model using the SEM. As seen in Table 6 and Figure 2, the impact of CSR on trust is β = 0.681, CR = 10.273 (p < 0.001), the impact of CSR on image is β = 0.481, CR = 7.498 (p < 0.001), and the impact of CSR on satisfaction is β = 0.516, CR = 8.261 (p < 0.001). All potential variables show a statistically significant impact on the reputation of Incheon International Airport. Meanwhile, through an evaluation of the path analysis, we reveal that the highest effective variables among the three are satisfaction and image, which elicit statistically large levels of influence on reputation. In other words, as satisfaction and image with respect to CSR increase, the reputation of the airport increases. In addition, users retain a more positive perception of that reputation.

This study was applied to examine the positive effects of CSR on the airport industry, such as effectiveness, trust, image, and satisfaction. The study’s findings indicate that an airport’s reputation is possibly affected by a mediating role in the relationships between CSR and trust, image, and satisfaction that strengthen the airport’s sustainability. Further research has also confirmed that each mediate variable has a positive effect on the reputation of the airport. In particular, this study found that CSR through image has the most significantly positive effect on the reputation of airports, which consequently leads to a positive perception and mindset of airport customers. This suggests that it should be an integral part of the airport industry’s business model in strengthening the perception of airport views or organizational social behavior. With regard to the relationship between CSR and trust (H1) (β = 0.681, C.R: 10.273 ***), it is proven to be statistically significant. This result was found by Lombart and Louis [33]

These latter authors emphasized that clients are more inclined to believe in socially responsible organizations that operate their social activities and care about the interests of the relationship with airport users in decision making. Therefore, CSR becomes an effective tool to create trust between the client and the company. Although CSR has a greater direct effect on trust (β = 0.681, C.R: 10.273 ***), rather than on image (β = 0.481, C.R: 7.498 ***), this last variable seems to have a more prominent role, especially because of the indirect effects produced by CSR through image on reputation. The CSR–reputation relationship turned out to be significant in this study, a result that is in line with those obtained by Zhu et al. [86].

Another notable connection existed between CSR and airport mediate variables through airport reputation. This perhaps suggests that the CSR activities of an airport are a strong vehicle to transform airport satisfaction, trust, and image into an enhanced and positive airport reputation. In terms of an airport’s CSR, reputation is related to factors such as the non-economical performance indicator that is built over time via numerous activities to enhance areas such as values and social responsibility [110]. Based on these results, this study has several theoretical and practical implications for airport research.

5. Conclusions and Implications

The study examined the importance of CSR in improving reputation by exploring its direct and mediated effects through image, satisfaction and trust based on airports in Korea. CSR was found to have a significant impact on better image, satisfaction, and trust including enhanced reputation which is also supported in the previous literature [54,112]. Evidence from prior studies had already indicated that these positive interrelationships existed [55,113].

For the overall sample, the study did find that the mediating effects of image, trust, and satisfaction significantly mediated the CSR–reputation link. This shows that there are a certain amount of customer perceptions of CSR. Therefore, the findings of this paper are contrary to the previous literature that argued that the implementation of CSR and reputation could possibly be beneficial based on airports in Korea, because the specific institutional framework could shape diverse overall business systems. This result may be able to provide an explanation of why the importance of CSR does not seem to receive the same level of attention in relation to airports in Korea.

The study results showed that CSR is prominent since it was found to significantly affect image, trust, and satisfaction. This implies that the understanding of CSR and reputation are highly important in relation to achievement and the values of stakeholders increasingly align, which can be directly attributed to support both an airport’s competitiveness and globalization [114].

Thus, compared to global airports such as western airports where CSR is important for companies, Korean airports need to employ social, environmental, and economic issues relating to CSR [25,48,115].

This paper shows that there is a certain amount of importance relating to CSR and reputation. Therefore, the findings of this paper argued that the implementation of CSR can benefit airports in Korea.

5.1. Academic Implication

With respect to academic implications, this research offers two implications for future airport activities. In this study, CSR activities had positive and effective impacts on image, satisfaction, and trust for the airport. The continual rollout of Incheon International Airport’s CSR programs continuously enhances customer perceptions and reinforces the importance of sustainability.

First, this study analyzed the importance of the relationship between CSR and airport reputation, which has been limited in the airport sector in Korea [8,24]. Most previous studies have been conducted to validate the relationship between CSR and image or satisfaction, either directly or indirectly through other known variables such as loyalty [45]. However, few studies have explored the relationship between CSR and reputation. According to empirical studies, these results suggest that the importance of CSR activities should emphasized to achieve the sustainable development.

This study could possibly be employed in a very important role in the airport industry in Korea. In the past, tangible business costs, such as the quality of services and products, could have more positive effects and outcomes for stakeholders and customers, but now, as the times change, the preferences have changed. As perceptual recognition and CSR initiatives may be effective to airports through enhancing the airport’s reputation.

Second, this study suggests enhancing the importance of the correlation between CSR and reputation in airports. In view of airports that conduct long-term business in Korea, variables such as image, reliability, and satisfaction can bring more mid-to-long-term benefits than an increase in preference for a kind of service and quality. This study is a study on the expected effect that can create a positive perception of reputation through the importance of CSR in airports in Korea in the future, which can bring positive long-term business benefits. Therefore, based on the research on corporate social responsibility, this result emphasizes the importance of making social responsibility of airports and high reputation a priority that could possibly create positive and long-term business profits. Therefore, the benefits of the mutual aspects of the CSR program will improve the airport’s reputation and reach a point of sustainability [25].

5.2. Managerial Implication

In terms of managerial implications, these findings provide insight into how the correlation between CSR initiatives and reputation can play an important role based on airports in Korea. Our results mean that the airport’s CSR activities have a positive impact on the airport’s reputation.

First, a company’s reputation as an indicator of performance is very vital for the evaluation of CSR programs [68]. This important concept should focus on customer orientation and provide better CSR activities to satisfy stakeholders to improve various CSR initiatives [116]. This positive image, trust, and high satisfaction play an important role in enhancing the reputation of the relevant airport for stakeholders and airport users. These variables could possibly provide customers with more insight into the company’s achievements [25]. Our findings suggest that companies make efforts to use long-term sustainable development of Korean airports through CSR and reputation. As a result, it can be suggested that the importance of CSR is very vital for domestic airports which have not implemented CSR. Additionally, CSR and reputation suggest that companies looking to build strong relationships with customers can provide a long-term competitive advantages.

Second, to stay ahead in competition with global airports, it is more important to secure a competitive advantage with global airports through more diverse and broad CSR activities than to settle for the current results. These new strategies can facilitate plans for the future sustainable development of the airport. In the previous literature, it has been more important to secure a competitive advantage through more diverse and extensive CSR activities to achieve sustainable development targeting global airports [7]. These new strategies could facilitate the future sustainable development plans of airports in Korea. One scholar has argued that needs indicator of strategic performance can enhance the value of airports, not services or products [8,23,44].

Reputation is one of a firm’s most important intangible assets, which affects how stakeholders evaluate the company [11,12]. Achieving a positive reputation is extremely difficult to establish and easy to lose. This study contributes to both the understanding and importance of CSR and reputation of airports. In addition, the reputation of the airport is related to the level of customer satisfaction, image, and trust. Implementation of an eco-friendly and social management-driven approach to airport operations necessarily implies a relationship strategy, which is appropriate as a competitive tool because it helps build a favorable response to the customer’s sense of reputation.

Finally, these CSR-enabled domestic airports are believed to be more trusted and have a positive reputation among their customers in the future to achieve high performance. Previous studies have shown that domestic airports are uncertain about effectiveness of CSR initiatives [117]. Moreover, implementation of CSR could promote the need to bridge the trust, image, and satisfaction for the research gap between business activities and a company’s outcome. Based on these findings, this study suggests that airports should enhance the importance of CSR strategies by emphasizing corporate reputation in CSR initiatives [112].

5.3. Limitation

Although this study contributes to an understanding of sustainability in relation to an airport’s corporate social responsibility, it does have limitations. First, survey questionnaires were restricted to Korean respondents. A wider selection of nationalities would provide insights into a broader spectrum of airport user perceptions. We suggest expanding the group of respondents accordingly. Second, the period of data collecting was very limited which may not be representative of the standard traveller population. To overcome this limitation, future studies should be re-examined or extended to longer periods to collect survey data in airports that would gather a greater number of participants. Our small sample size was in part due to the COVID-19 incident. This would provide larger number of airport users with a keener awareness of the importance of CSR in business sustainability.

Lastly, many respondents were not fully aware of the airport’s CSR activities. Further studies need to consider facilitating a better understanding of the details of CSR activities so that respondents have a greater awareness of the public service programs at Incheon International Airport. The article explained why only 297 completed surveys were collected, even though they were released through fast and widely available channels over a few weeks. This possibly could explain that importance of CSR awareness is getting lesser attention than other values in companies. It is also a strong indicator that CSR is not an important area of interest within society.

Further research should aim to re-examine and extend more potential variables closely related to the airport industry that could affect the relationship between CSR and airport reputation. This would provide airport experts and operators with a higher awareness of the importance of CSR in business sustainability. Moreover, this research should also be extended to the various airport industries directly related to the relationship between customer behavior and business performance. This could include the areas that are related to airlines, hotels, and other industry-specific companies that would benefit from the reconsideration of business sustainability.

Author Contributions

Conceptualization, S.L., J.-W.P. and S.C.; Data curation, S.L.; Formal analysis, S.L.; Investigation, S.L. and J.-W.P.; Methodology, S.L., J.-W.P. and S.C.; Supervision, J.-W.P.; Validation, S.L., J.-W.P. and S.C.; Visualization, S.L.; Writing—original draft, S.L.; Writing—review & editing, S.L., J.-W.P. and S.C. All authors have read and agreed to the published version of the manuscript.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

Not applicable.

Conflicts of Interest

The authors declare no conflict of interest.

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Figures and Tables

Figure 1. Research Model.

Figure 2. SEM analysis results.

Table 1

Measurement items.

Construct	Item	Related Studies
Corporate Social Responsibility(CSR)	Incheon International Airport actively participates in activities that aim to protect and improve the quality of the natural environment.	[58,84]
	Incheon International Airport uses energy and resources efficiently.	[18,85,86]
	Incheon International Airport is concerned with waste management and recycling.	[72,87,88,89]
	Incheon International Airport is equipped with facilities for the disabled (menus in braille, round tables in restaurants, etc.).	[65,90,91,92]
	Incheon International Airport makes an effort to raise funds for social causes.	[18,85,86]
	Incheon International Airport is committed to improving the welfare of the local community.	[93,94]
	Incheon International Airport sponsors education related activities for the community.	[43,95]
	Incheon International Airport makes an effort to contribute to society and the economy by investing and generating profits.	[18,85,86]
	Incheon International Airport strives to activate the local economy.	[96,97]
	Incheon International Airport has a large impact on employment.	[95,98,99,100]
Trust	Incheon International Airport is very responsive.	[25,36,46]
	Incheon International Airport can be relied on by customers.
	I think Incheon International Airport provides reliable information to its consumers.	[46,101,102]
Image	I always get a good impression of Incheon International Airport.	[25,27,43]
	Incheon International Airport is widely known by the public.
	Incheon International Airport is very professional.
Satisfaction	Incheon International Airport entirely fulfills my needs.	[34,103,104]
	I feel happy after flying to or from Incheon International Airport.
	I feel satisfied after using Incheon International Airport.
Reputation	In general, I think Incheon International Airport has a good reputation.	[58,105,106]
	Incheon International Airport is known for giving active support to programs with good social causes.
	Incheon International Airport transmits a good sensation.	[18,25,27,28,36,104]

Table 2

Demographic features.

Division		Frequency	Percentage
Gender	Male	166	55.90%
	Female	131	44.10%
Age	Less than 20	5	1.70%
	21~30	87	29.30%
	31~40	77	25.90%
	41~50	69	23.20%
	51~60	54	18.20%
	Over 60	5	1.70%
Education	High School (Studying)	25	8.40%
	College (Studying)	32	10.80%
	University (Studying)	194	65.30%
	Graduate (Studying)	46	15.50%
Occupation	Student	43	14.48%
	Practitioner/Researcher	58	19.53%
	Sales/Service	44	14.81%
	Office Worker	67	22.59%
	Government Official	31	10.44%
	Freelancer	11	3.70%
	Housewife	9	3%
	Others	34	11.45%
Purpose	Travel	240	80.80%
	Work/Business	48	16.16%
	Visiting Relatives	4	1.35%
	Education	1	0.34%
	Others	4	1.35%
Number of Visit	Fewer than 2 times	213	71.72%
	3~4 times	62	20.88%
	5~6 times	12	4.04%
	7~8 times	2	0.67%
	9~10 times	0	0%
	More than 11 times	8	2.69%

Table 3

Results of confirmatory factor analysis.

Component	MeasurementVariable	Non-Standardized Estimate	Standardized Estimate	S.E	C.R a	SMC	C.R b	a c
Corporate Social Responsibility	CSR 1	0.797	0.731	0.069	11.611	0.535	0.950	0.929
	CSR 2	0.889	0.792	0.062	14.453	0.628
	CSR 3	0.827	0.761	0.068	12.127	0.579
	CSR 4	0.801	0.707	0.063	12.767	0.500
	CSR 5	0.878	0.746	0.065	13.550	0.557
	CSR 6	0.904	0.772	0.064	14.060	0.595
	CSR 7	0.945	0.795	0.065	14.446	0.632
	CSR 8	0.833	0.734	0.064	13.036	0.538
	CSR 9	0.876	0.750	0.059	14.803	0.63
	CSR 10	1.000	0.780	-	-	0.608
Trust	Trust 1	1.075	0.788	0.058	18.387	0.621	0.922	0.875
	Trust 2	1.026	0.880	0.059	17.338	0.774
	Trust 3	1.000	0.796	-	-	0.634
Image	Image 1	0.910	0.795	0.059	15.525	0.632	0.923	0.840
	Image 2	0.783	0.752	0.049	15.823	0.566
	Image 3	1.000	0.894	-	-	0.799
Satisfaction	Satisfaction 1	0.959	0.926	0.045	21.131	0.857	0.950	0.913
	Satisfaction 2	0.986	0.817	0.040	24.395	0.668
	Satisfaction 3	1.000	0.835	-	-	0.697
Reputation	Reputation 1	1.016	0.876	0.055	18.530	0.767	0.928	0.858
	Reputation 2	1.076	0.774	0.070	15.425	0.599
	Reputation 3	1.000	0.839	-	-	0.704

Note: ^a Critical Ratio; ^b Construct Reliability; ^c Cronbach’s α.

Table 4

Discriminant Validity.

Variable	A	B	C	D	E
Corporate SocialResponsibility	1
Trust	0.586	1
Image	0.675	0.951	1
Satisfaction	0.523	0.946	0.867	1
Reputation	0.484	0.88	0.850	0.902	1

Table 5

Model Fit Results.

Division	Result		Good Fit	Acceptable Fit	Source
Absolute fit index	CMIN/DF	2.808	0$\le {\mathrm{x}}^2/\mathrm{df}\le$2	$2\le {\mathrm{x}}^2/\mathrm{df}\le$3	Karin Schermelleh-Engel (2003) [82]
	RMR	0.39	0$\le {\mathrm{SRMR}}^{}\le 0.05$	$0.05\le {\mathrm{SRMR}}^{}\le 0.10$
	GFI	0.868	$0.95\le \mathrm{GFI}\le 1.00$	$0.90\le \mathrm{GFI}\le 0.95$
	AGFI	0.816	$0.90\le \mathrm{AGFI}\le 1.00$	0$.85\le \mathrm{AGFI}\le 0.90$
	RMSEA	0.78	$0\le \mathrm{RMSEA}\le 0.05$	$0.05\le \mathrm{RMSEA}\le 0.08$
Incremental fit index	NFI	0.911	$0.95\le \mathrm{NFI}\le 1.00$	$0.90\le \mathrm{NFI}\le 0.95$
	CFI	0.940	$0.97\le \mathrm{CFI}\le 1.00$	$0.95\le \mathrm{CFI}\le 0.97$

Table 6

Results of hypothesis.

Hypothesis Path		Standardized Estimate	C.R	Result
H1	Corporate Social Responsibility → Trust	0.681	10.273 ***	Supported
H2	Trust → Reputation	0.158	3.305 ***	Supported
H3	Corporate Social Responsibility → Image	0.481	7.498 ***	Supported
H4	Image → Reputation	0.676	11.195 ***	Supported
H5	Corporate Social Responsibility → Satisfaction	0.516	8.261 ***	Supported
H6	Satisfaction → Reputation	0.331	7.118 ***	Supported

Note: *** ρ < 0.001.

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