The importance of materiality analysis and stakeholder engagement in determining corporate purpose: A case study from the aviation industry

The conventional emphasis on shareholder value has given way to a more expansive understanding of corporate purpose in recent years, encompassing social and environmental responsibilities. A new approach to management, known as the stakeholder view, prioritises a balance between the interests of all stakeholders and challenges Friedman’s shareholder-centric model, which places shareholders at the centre of corporate strategy. Despite growing support for this broader perspective, certain critics advise that the business’s identity and competitiveness may be weakened by the lack of a clear purpose, making it more susceptible to pressure from external actors and power groups like top management. Moreover, the increasing importance of sustainability has made companies need to incorporate social and environmental goals into their governance, frequently expressed as corporate purpose. This business purpose is not always explicitly defined, and done so leads to the notion of an implicit business purpose, which can be inferred from sustainability actions, strategies, and practices. Using Geasar S.p.A., an operator of an airport management company based in Olbia (Sardinia, Italy), as a case study, our contribution investigates how materiality analysis and stakeholder interaction may be used to identify and strengthen the implicit corporate purpose. The case study demonstrates how the Company, through an implicit statement of purpose, can manifest a solid commitment to environmental and social sustainability and the improvement of the territory in which it operates. The analysis reveals how Geasar S.p.A. has integrated the values of social responsibility into corporate governance and strategies, evolving from a traditional CSR approach to a more sophisticated ESG model based on a solid corporate purpose actively promoting the economic and social development of Sardinia through a strong link with the territory.