Title: A study on ethical management of South Korean Airlines

Authors: Wooyoung Shin; Soonwook Hong

Addresses: Department of Tourism Management, Cheju Halla University, Jeju, 63092, South Korea ' Division of Maritime Business and Economics, Korea Maritime and Ocean University, Busan, 49112, South Korea

Abstract: The purpose of this paper is to study the ethical management of South Korean Airlines. The importance of ethical management for sustainable management of firms has been gradually growing. Ethical management is divided into internal ethics and external ethics. Earnings management is known to represent internal ethics, while CSR is known to represent external ethics. Earnings management is measured by discretionary accruals, and CSR is measured by charitable contribution expenditures. The results of the analyses indicated that South Korean airlines' discretionary accruals were large while their charitable contribution expenditures were small. South Korean airlines can be regarded to practise more earnings management while conducting fewer charitable contributions. South Korean airlines are judged to be unethical both internally and externally. This paper is meaningful in that it verified the ethical management of airlines that emerged as a matter of national interest in South Korea in recent years.

Keywords: airlines; ethical management; corporate social responsibility; charitable contributions; earnings management; discretionary accruals.

DOI: 10.1504/IJEBR.2022.10039240

International Journal of Economics and Business Research, 2022 Vol.24 No.3, pp.344 - 356

Received: 11 Nov 2020
Accepted: 25 Jan 2021

Published online: 08 Sep 2022 *

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