Accounting for Product Impact in the Airlines Industry

George  Serafeim; Katie  Trinh

Working Paper | HBS Working Paper Series | 2020

Accounting for Product Impact in the Airlines Industry

Abstract

We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor companies within the airlines industry. We design a monetization methodology that allows us to calculate monetary impact estimates of fare affordability, timeliness and gate control, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas, including airline route structure choices.

Keywords: Product Innovation; Product design; Impact; impact investing; impact measurement; ESG; ESG (environmental, social, governance) performance; ESG (environmental, social, governance) performance; ESG ratings; social corporate responsibility; corporate social responsibility; social impact; air transportation; aviation; Product; Product Design; Product Positioning; Society; Air Transportation Industry;

Language: English

Format: Print

18 pages

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Citation:

Serafeim, George, and Katie Trinh. "Accounting for Product Impact in the Airlines Industry." Harvard Business School Working Paper, No. 21-066, November 2020.

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Accounting for Product Impact in the Airlines Industry

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