The Effects of ESG Management on Business Performance: The Case of Incheon International Airport

Abstract

This study examines how implementing ESG (environment, social, and governance) principles at Incheon International Airport affects business performance. ESG practices significantly shape strategic management within the airport industry, particularly at Incheon International Airport in Korea. The primary objective is to explore how the ESG components contribute to airport sustainability and business performance through intermediary factors. Prior analyses in the airline and tourism sectors have extensively studied the impact of CSR and ESG adoption on business performance. With increasing numbers of ongoing research on ESG in airports, this study seeks to investigate the mid-to-long-term influence of ESG on business performance, specifically at Incheon International Airport. A comprehensive survey involving 323 airport users at Incheon International Airport was rigorously analyzed using a structural equation model (SEM). The findings revealed a robust positive correlation between ESG activities and business performance. This implies that ESG initiatives can foster trust, improve public perception, underscore sustainability, and notably impact South Korea’s airport industry. Moreover, this research aims to establish fundamental insights by emphasizing the pivotal role of ESG activities in enhancing airports’ reputation in Korea and contributing positively to sustainable development.

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