CARBON FOOTPRINTS DISCLOSURE PRACTICES OF AEROSPACE AND AIRLINES COMPANIES: SYMBOLISM OR ACTION?

Abstract

Carbon footprints disclosure practices of aerospace and airlines companies increase over the time. However, the increase is motivated by many possible motives, not only to inform to stakeholders about firm’s actions, but also to gain certain images. Thus, the aims of the study are three points. First, to analyze whether carbon footprints disclosure practices of aerospace and airlines companies increase over the time. Second, to analyze whether the companies also increase their disclosure using several highlighting device to draw direct attention of the readers. Third, to analyze the tendency of carbon footprints disclosure practices of aerospace and airlines companies listed in Forbes 2000 in 2011 and 2013. To achieve the objectives, the right method used should be content analysis. Content analysis is applied to analyze four type of disclosures; annual reports, sustainability reports, annual reports of annual reporters only, and annual reports of sustainability reporters. There are three set of categories used. The first category is symbolic statement; normative statement, aspirational target, and awards or recognition. Second category is behavioural statement; internal activities, external activities, and assisting others. The third category is any sentence exclude previous categories disclosed in the reports; descriptive statements and other. The sample then selected based on purposive sampling method. The amount of final sample is forty seven companies. The study uses Wilcoxon signed-ranks test as its statistical test. The results showed that generally firms do not increase their carbon footprints disclosure. However, in annual reports of annual reporters only, firms increased their disclosure practices. Companies also did not take a step to signeled their disclosure clearly to stakeholders and generally more like relied on symbolic management approach instead of behavioural management approach, even though there is a small tendency that firms can also rely on behavioural management approach. Further, the study appears to be the first, to the best of author’s knowledges, to provide direct international evidence on favoured impression and legitimacy by analyzing symbolic versus behavioural management.