2018 marked Southwest’s 46th consecutive year of profitability—proof that our People-centric approach to business continues to resonate with Customers. This year we doubled down on service: from taking bold actions to innovate the Customer Experience, to strengthening our network, to giving back in the communities where we live and work. At every turn, we seek to lead with a Servant’s Heart—so that we can continue to connect People to what’s important in their lives. Read on to learn more about how we put our Heart in action. Welcome to this year’s One Report.
—Gary C. Kelly, Chairman of the Board and CEO
Our Purpose is to connect People to what’s important in their lives through friendly, reliable, and low-cost air travel. Our point-to-point network of 99 destinations allows us to live out our Purpose, serving Customers on more than 4,000 flights per day during peak travel season. Serving more than 134 million Customers in 2018—an all-time annual record—allowed us to take care of our People, invest in our business, give back to the communities we serve, and reward our Shareholders.
View our interactive route map for our most current list of destinations at: www.southwest.com/routemap
total corporate donations (monetary and in-kind ticket donations)
in Shareholder returns
in Employee ProfitSharing
Our Employees, Customers, Shareholders, suppliers, and community groups all contribute to the many opportunities we see for the future of our Company. We listen to and learn from our many Stakeholders, which shapes the content of the One Report and reflects our ongoing commitment to connect People to what’s important in their lives.
The 2018 Southwest Airlines One Report follows the principles outlined in the Global Reporting Initiative’s (GRI) G4 Guidelines. The GRI is a voluntary, internationally recognized framework for corporate social responsibility reporting that allows organizations to measure and report their efforts in a consistent manner. Information is presented in the 2018 Southwest Airlines One Report with respect to performance related to our corporate social responsibility key topics, a term we use instead of materiality to avoid confusion with key financial information. This content index depicts our GRI responses for calendar year 2018, unless otherwise noted.
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-1 | Statement from the most senior decision-maker of the organization | A Word from Gary Reporting on Business Performance |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-3 | Name of the organization | Southwest Airlines Co. |
| G4-4 | Primary brands, products, and/or services | Reporting on Company Performance |
| G4-5 | Location of organization's headquarters | 2702 Love Field Dr. Dallas, Texas 75235 USA |
| G4-6 | Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report | We operate in eleven countries: the United States, Mexico, Jamaica, Bahamas, Aruba, Dominican Republic, Costa Rica, Cuba, Belize, the Cayman Islands, and Turks and Caicos. |
| G4-7 | Nature of ownership and legal form | Reporting on Company Performance |
| G4-8 | Markets served | We serve business and leisure air travelers, and in 2018 operated in the U.S. domestic market as well as some parts of Mexico, Central America, and the Caribbean region. 30,000 Foot View The Fleet The Southwest Network: California Strong |
| G4-9 | Scale of the reporting organization | Reporting on Company Performance |
| G4-10 | Total number of employees (including breakdown by gender and employment type) | A Snapshot of Southwest Employees People Data Table |
| G4-11 | Employees covered by collective bargaining agreements | Approximately 83 percent of our Employees are covered by collective bargaining agreements. |
| G4-12 | Supply chain | To support our operations, we purchase goods and services from more than 4,000 sources across multiple continents and countries, but given our network footprint as a North American carrier, the vast majority of our supply base and spend is in the U.S. domestic market. We maintain relationships directly with various types of suppliers, including service providers, contractors, manufacturers, brokers, and wholesalers. Our intent is to provide Southwest with the highest quality products and services at the lowest total costs. While we have dedicated Teams within our Supply Chain Management Department such as Fuel Management, Aircraft Maintenance, Technology, and Direct and Indirect Procurement, we strive to manage our supply chain holistically and to optimize system efficiency by utilizing analytically rigorous and dynamic approaches. Our Supply Chain Management Department has a Team dedicated to monitoring supplier performance, assessing risk and planning in the event of supply chain disruptions, and analyzing our supply chain spend so we can continuously improve performance. We build sustainable relationships with our suppliers that take into account, among other things, small and minority-owned businesses and the highest standards of ethical conduct. Using Our Southwest Hearts to Engage on Meaningful Topics |
| G4-13 | Significant changes during the reporting period regarding size, structure, or ownership | Reporting on Company Performance |
| G4-14 | Precautionary approach | Not reported. |
| G4-15 | Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses | Airlines for America (A4A) Public Relations Research Standards Diversity Best Practices: the preeminent organization for mid- to large-size organizational diversity thought leaders to share best practices and develop innovative solutions for culture change. Each Southwest Employee can logon using their wnco.com email. |
| G4-16 | Association Memberships | Airlines for America (A4A) climate change commitment Public Relations Research Standards National Diversity Council Board Workforce Solutions Greater Dallas Board: the local organization mandated to implement a system of services that complement economic development as a resource for employers to access the quality employees they need, and training individuals to be successfully employed. |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-17 | Entities included in the organization’s consolidated financial statements or equivalent documents | Reporting on Company Performance |
| G4-18 | Process for defining the report content and the Aspect Boundaries, and how the organization has implemented the Reporting Principles for Defining Report Content | Southwest regularly engages our Stakeholders through various channels and communications to attempt to better understand what is important to them. We also gain other learnings from industry benchmarking analyses we have regularly conducted since 2016. These efforts help us strive to balance Stakeholder interests with a reasonable and balanced representation of our corporate social responsibility initiatives related to environmental, social, and governance indicators. |
| G4-19 | Material Aspects identified in the process for defining report content | We include the following key topics in the 2018 One Report: Economic Performance, Indirect Economic Impact, Energy, Water, Emissions, Effluents and Waste, Environmental Regulation Compliance, Employment, Training and Education, Diversity and Equal Opportunity, Human Rights, Freedom of Association and Collective Bargaining, Local Communities, Anti-Corruption, Public Policy, Customer Health and Safety, and Product and Service Labeling. |
| G4-20/21 | Aspect boundaries | Covers only those business activities for which Southwest generally has complete control or ownership. This report does not include facilities primarily controlled by others, such as airport terminal space or outsourced or subcontracted facilities. |
| G4-22 | Effect of any restatements of information provided in previous reports, and the reasons for such restatements | See data tables for any restatements of information provided in previous reports: Performance Data Table People Data Table Planet Data Table |
| G4-23 | Significant changes from previous reporting periods in the Scope and Aspect Boundaries | There are no significant changes from previous reporting periods in the Scope and Aspect Boundaries. |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-24 | Stakeholder groups engaged | Customers, Employees, NGOs/Community Groups, Suppliers, Shareholders, and Regulators. |
| G4-25 | Basis for identification and selection of Stakeholders with whom to engage | We maintain engagement channels with the Stakeholders who we believe may impact, or be impacted by, our business. Reporting Approach |
| G4-26 | Approach to Stakeholder engagement | Customers: Customer Experience surveys are sent to a representative sample of Customers each day post-travel. Daily interaction with our Customer Service Representatives with phone calls, email, or social media. Monthly brand and reputation monitoring and other ad hoc research through our Listening Center. Personal contact during travel experience with Customer Service Agents and Flight Crews. Employees: Daily internal communications on our intranet, including news, department information, blogs, and the monthly news recap via video. Employees are able to interact in the comment sections. Monthly newsletters, annual Southwest Rallies, ongoing union meetings, and scheduled Employee surveys. NGOs/Community Groups: Ongoing efforts with the Chambers of Commerce in each of our domestic cities, working with a variety of charitable organizations, and one-on-one meetings or calls with industry associations or community influencers, and through a community partners summit during fall 2018. Suppliers: Ongoing efforts via emails, meetings, the RFP process, and supplier performance reviews. Shareholders: Ongoing communication with our Investor Relations department via phone calls, email, and mail, Investor presentations, Annual Meeting of Shareholders, and the Investor Relations website. Regulators: Ongoing engagement through permitting, compliance, and reporting activities. Safety testing, audits, and screenings. |
| G4-27 | Key topics and concerns that have been raised through Stakeholder engagement, and how the organization has responded to those key topics and concerns | Throughout this report. |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-28 | Reporting period | Calendar Year 2018, unless otherwise stated. |
| G4-29 | Date of most recent previous report | June 5, 2018 |
| G4-30 | Reporting cycle | Annual |
| G4-31 | Contact point for questions regarding the report or its contents | SWACitizenship@wnco.com |
| G4-32 | "In Accordance" option and the GRI Content Index for the chosen option | In accordance-Core GRI Content Index |
| G4-33 | Policy and current practice with regard to seeking external assurance for the report | This report has not been externally assured. |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-34 | Governance structure of the organization | Reporting on Company Performance Company Officers Board of Directors Board Committees Corporate Governance Guidelines Corporate Policies |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| G4-56 | Values, principles, standards and norms of behavior such as codes of conduct and codes of ethics | Purpose, Vision, Values & Mission Statements Investor Relations Supplier Code of Conduct |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| ECONOMIC PERFORMANCE | ||
| DMA | Jobs and benefits, returns on investment, business partnerships, and Customer Service and Safety are all ways in which our economic performance matters to our Employees, Customers, Shareholders, suppliers, and the communities in which we operate. We strive to continuously improve our Performance by focusing on our Purpose, and our People are dedicated to fulfilling our Vision. Southwest is known for a triple bottom line approach that contributes to our performance and productivity. We've achieved our success without resorting to layoffs or pay cuts, and Employees share in Southwest's success with our ProfitSharing Plan, the first in the airline industry. This approach helps us retain Employees, reducing turnover costs. We expect our market presence to generate substantial savings for our Customers through the well-known "Southwest Effect" of invigorating competition by reducing fares and stimulating additional Passenger traffic in the cities where we fly. Our commitment to the Planet helps us manage costs by using resources efficiently and identifying emerging environmental trends and risks. In the air, we're conserving jet fuel and reducing emissions. Given fuel is one of our largest expenses, operating with a green filter is not only good for the environment, it's also good for our bottom line. Regarding our position on the potential risks associated with climate change, in our CDP response, we have identified risks associated with regulatory change and physical climate risks such as extreme weather events as having the potential to create operational complexities. These complexities may affect airline operations, which could result in impacts to operational and capital costs and ontime performance. Performance |
|
| EC-1 | Direct economic value generated and distributed | Reporting on Company Performance A Decade of Consistent Performance |
| EC-2 | Climate change risks and opportunities | Southwest has voluntarily reported our greenhouse gas emissions through CDP for the past nine years. In our CDP response, we quantify climate change impacts, risks, and opportunities on our business, and provide information on how we’re integrating climate change into our business strategy. You can find Southwest’s CDP response at www.cdp.net. We have invested more than $600 million in fuel efficiency projects since 2002. Planet |
| EC-3 | Coverage of defined benefit plan obligations | We invested more than $1.0 billion in our Employees through 401(k) contributions of $499 million and, based on 2018 results, part of the $544 million ProfitSharing award to the retirement plan and part in cash. Ninety one percent of our Employees participated in our 401(k) plans. For the 2018 plan year, each eligible Employee will receive a ProfitSharing award equal to approximately 10.8 percent of eligible compensation, payable in 2019. Southwest will pay part of the ProfitSharing award to the retirement plan and part in cash. Most Employees will receive 10 percent of eligible compensation as a contribution to the ProfitSharing Plan and the remainder— approximately 0.8 percent—in cash. Some Employees will receive the entire ProfitSharing award as a contribution to their retirement plan as specified in their collective bargaining agreement. People Data Table |
| INDIRECT ECONOMIC IMPACT | ||
| DMA | Our performance impacts more than our Company. Our market presence and low fares stimulate economies in cities where we fly. We also make investments in infrastructure and services that more broadly affect the communities we serve in terms of jobs, access to services, or other impacts. Working with local communities and regulators, we strive to maximize the benefits of our investments to local and regional economies. | |
| EC-8 | Significant indirect economic impact | The Southwest Network: California Strong Great People Work in Great Spaces Bold Blue: Because Our People Know Best Sharing the Southwest Heart Internationally Many Different Ways to Give |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| DMA (for all reported environmental topics) | We recognize the importance of environmental stewardship and believe it’s our responsibility to protect our planet now and for future generations. We do our part to make environmentally responsible decisions and to minimize our impact on the environment by collecting and analyzing information on our energy consumption, emissions, and waste, and continually improving the actions we take to mitigate our impacts. We set goals and use an environmental management system (EMS) and chemical management system (CMS) to help us maintain compliance with environmental regulations, minimize costs and risk, and measure our efforts to improve our environmental performance. Given fuel is one of our largest expenses and the burning of it produces greenhouse gas (GHG) emissions, we strive to reduce future emissions while continuing to provide safe, reliable, and affordable air transportation for our Customers. A third party assessment of Southwest’s 2018 GHG Emissions Inventory has been completed in accordance with AA1000 Assurance Standard. This assurance engagement included our Scope 1, Scope 2, and Scope 3 GHG Emissions. We are currently meeting our GHG emission targets without using offsets. Southwest’s Leaders and Employees are responsible for minimizing our impact on the environment by:
Maintaining compliance with all local, state, and federal environmental laws and regulations is fundamental to our environmental policy. We continually work to meet our annual goal of zero recorded environmental violations. Our Environmental Services Team regularly conducts audits to review compliance, and we are working to improve our performance by maintaining and improving our EMS, following environmental guidelines and procedures, implementing corrective action, and training our Employees to meet our compliance goals. Our standard auditing protocol assesses a location’s record keeping, permit status, and compliance with requirements of regulatory plans such as Storm Water Pollution Prevention Plans and Spill Prevention, Control, and Countermeasure Plans. We perform a visual, walk-through inspection to confirm that key compliance practices are enacted in each of the cities we serve. We also track spills at all of our locations, audit findings and corresponding corrective action, and information about permits and their expiration dates. Planet |
|
| ENERGY | ||
| EN-3 | Energy consumption | Fuel Efficiency Respecting Our Resources by Using Them Efficiently Planet Data Table |
| EN-5 | Energy intensity | Planet Data Table |
| EN-6 | Reduction of energy consumption | Fuel Efficiency Respecting Our Resources by Using Them Efficiently |
| EN-7 | Reductions in energy requirements of services | We increased our fuel efficiency (available seat miles66) An RPM is one paying Passenger flown one mile. Also referred to as “traffic,” which is a measure of demand for a given period. per gallon of fuel) from 75.2 in 2017, to 76.3 in 2018. Planet Data Table |
| WATER | ||
| EN-8 | Total quantity consumed by source | Planet Data Table |
| EMISSIONS | ||
| EN-15 | GHG emissions (Scope 1) | Greenhouse Gas Emissions Planet Data Table |
| EN-16 | GHG emissions (Scope 2) | Greenhouse Gas Emissions Planet Data Table |
| EN-17 | GHG emissions (Scope 3) | Planet Data Table |
| EN-18 | GHG emissions intensity | Greenhouse Gas Emissions Planet Data Table |
| EN-19 | GHG emissions reduction | Greenhouse Gas Emissions Planet Data Table |
| EN-20 | Emissions of ozone-depleting substances | One of the most important issues surrounding chemical management is the use of ozone-depleting substances. The ozone layer prevents harmful ultraviolet light from passing through the atmosphere, and the use of these substances can cause a decrease in the total volume of the ozone layer. Potential ozone-depleting substances Southwest presently uses include refrigerants found in the HVAC systems and appliances of Southwest operated buildings and the air conditioning systems of company vehicles. In every location except our Headquarters Campus, we contract the servicing of our HVAC systems. For this reason, we estimate the use of these substances for reporting purposes. In 2018, the estimated emissions were 3,395 metric tons of CO2e based on an upper-bound assumption of the expected losses that would occur from Southwest facilities. We do not produce or import ozone-depleting substances in Southwest operations. |
| EN-21 | Quantity of hazardous air pollutants | Planet Data Table |
| EFFLUENTS AND WASTE | ||
| EN-23 | Total weight of solid waste by disposal type | Recycling Planet Data Table |
| EN-24 | Total number and volume of significant spills | In 2018, we had no spills that were reportable to the National Response Center per regulatory requirements. We recognize that spills of chemicals, oils, and fuels can have a significant impact on our planet, so we make every effort to prevent them. However, we acknowledge that despite our best efforts, some spills do happen because of equipment failure or human error. We provide our Employees 24/7 access to guidance and emergency response assistance with spill response, and we track our spills using an online spill reporting form. This not only makes it simple for our Employees to report a spill in a timely and accurate manner, but it also provides automatic notification to the entire Environmental Services Team upon submittal for quick response and regulatory agency reporting when required. The Environmental Services Team also compiles and analyzes details from all spills so operating groups can assess spill prevention strategies. |
| COMPLIANCE | ||
| EN-29 | Monetary value of significant fines | Planet Data Table |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| DMA | Employees are the heartbeat of Southwest. We focus on bringing the best People into the Southwest Family with a competitive compensation and benefits package. We then provide a positive working environment, training, and encouragement to help them succeed. Therefore, our approach to employment and labor practices is a critical strategy guided by our Executive Vice President Corporate Services and our People and General Counsel departments, which includes a section devoted solely to Labor and Employee Relations. We are committed to:
We conduct scheduled Employee surveys to assess job satisfaction of our Employees, and we use information from the surveys to improve our ability to attract, develop and retain talented Employees who will help us meet Southwest’s business needs today and tomorrow. People Data Table |
|
| EMPLOYMENT | ||
| LA-1 | Employee hire & turnover rate | People Data Table |
| LA-2 | Benefits provided to full-time Employees | In 2018, more than 62,800 active and inactive Southwest Employees participated in at least one component of the Company’s Employee benefits program. Southwest offers standard benefits to both full-time and part-time Employees. In the case of tuition reimbursement, Southwest provides the following maximum annual benefit, which will be counted toward the calendar year in which reimbursement is made:
Many of the components offered to Employees in our Employee benefits program also are offered to dependents and/or committed partners. Employee Benefits |
| TRAINING | ||
| LA-9 | Hours of annual Employee training | Equipping Our Employees with Tools for Success People Data Table |
| DIVERSITY AND EQUAL OPPORTUNITY | ||
| LA-12 | Diversity and equality breakdown of Employees | A Snapshot of Southwest Employees The Power of Inclusion |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| INVESTMENT | ||
| DMA | At Southwest, we are strong supporters of protecting each individual’s basic human and civil rights and are guided by fundamental principles to not only comply with the law at all times, but also to avoid the appearance of impropriety in the actions of our Employees and our business partners. We reflect these principles in various policies and our conduct toward Employees, Customers, suppliers, and the communities we serve. We have created and adhere to Company policies to support and respect the protection of human rights within our sphere of influence. These policies include our commitment to:
Corporate Policies |
|
| HR-2 | Employee training on human rights | Forty-four percent of Employees and more than 8,300 contractors received training on Human Rights in 2018. We conduct training on human rights issues as they relate to harassment, discrimination, or retaliation for all new hires. Human rights training and information (including training on human trafficking and notification to law enforcement authorities) is available for existing Employees through a variety of vehicles, including our Guidelines for Employees, our Disability Discrimination & Workplace Accommodation Policy, in both written and audio versions, and our Most Compliant Leader training, a program required bi-annually of all Leaders, Supervisors, and above, and our harassment online learning module. Using Our Southwest Hearts to Engage on Meaningful Topics People Data Table Policy on Harassment, Sexual Harassment, Discrimination, and Retaliation |
| FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING | ||
| HR-4 | Freedom of association and collective bargaining | We have not identified operations or suppliers where the right to exercise freedom of association and collective bargaining are being violated. We take preventative measures to avoid this risk by implementing our Code of Conduct. Corporate Policies |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| LOCAL COMMUNITIES | ||
| DMA | We understand the powerful impacts that our Company can have on the social systems within which we operate and our responsibility to be a good corporate citizen. That is why we have a Social Topics Committee and Community Outreach Department committed to engaging and giving back in the communities where our Customers and Employees live and work. In response to a growing number of requests from the public about Southwest’s stance on various issues, the Social Topics Committee was formed in 2015 and is a cross-functional Team that examines how the Company will engage in a variety of social topics. The Committee reviews and discusses social topics and inquiries; employs guidelines to measure the impact on perception; and routinely engages Senior Executives on its proposed level of engagement and responses. The Committee uses a decision framework with guiding principles of speed, courage, and consistency. Factors that are considered when deciding if and how to respond include the impact on our Employees, the public perception of our response, the potential impact to our brand and reputation, and the effect on our business and our Customers. Through our Community Outreach Team, we provide support, leadership, and encouragement to a variety of local, civic, and charitable organizations. We believe in connecting People and championing the communities where our Employees live and work, and we strategically invest our resources to support needs and the causes that matter most to those communities. Our Employees get involved through volunteering, can serve as ambassadors, and participate on Community Giving Boards to help direct support to local organizations. Community Giving Boards are made up of local Employees from various work groups who evaluate donation requests Southwest receives from nonprofit charitable organizations in their community. The Boards donate complimentary, roundtrip travel to approved organizations for fundraising or transportation purposes. People |
|
| SO-1 | Local community engagement | The mission of the Southwest Heart of the Community program is to build connections that bring People together and strengthen communities for a more resilient future. Since the program launch in 2014, we’ve invested $4.5 million through 25 grants supporting public spaces across the U.S. and Mexico in partnership with Project for Public Spaces. Through expanded efforts with Points of Light, we also completed work in three low-income neighborhoods in Atlanta, Chicago and Phoenix, focusing resources on community-level problem solvers, resident volunteers and local nonprofits in an effort to improve public spaces, foster greater civic connections and build social capital. Across the three communities, 1,048 volunteers were engaged, serving 3,133 hours in addressing high-priority community needs and making tangible improvements in collaboration with 40 unique organizations. Partnerships that Make a Difference Sharing the Southwest Heart Internationally Many Different Ways to Give A Garden with Heart Celebrating and Inspiring Future Generations Travel Assistance for Patients in Need Southwest Employees Put Heart in Action during Spring Companywide Initiative People Data Table |
| ANTI-CORRUPTION | ||
| DMA | At Southwest, we strive to maintain accountability and transparency of our business practices to reduce or eliminate corruption. We require all Employees to annually certify receipt and understanding of our Code of Ethics and Insider Trading Policy. We also employ robust auditing procedures to analyze and monitor business activities, which further enhance our ability to maintain high ethical standards. We continually review our systems to provide transparency and accountability, and we update our corporate governance policies when needed. | |
| SO-4 | Anti-corruption communication | In 2018, more than 64,000 Southwest Employees and certain business associates certified receipt of Code of Ethics and Insider Trading policy. During 2018, we also distributed our Foreign Corrupt Practices Act Policy and Anti-Corruption Compliance Procedures to all Company Officers, Senior Leaders of all departments, and select Employees and contractors who are involved with Southwest’s financial records and/or international operations. In 2018, more than 2,900 individuals received and completed a compliance questionnaire regarding the Foreign Corrupt Practices Act. Corporate Governance Guidelines |
| PUBLIC POLICY | ||
| DMA | We must continually adapt to new laws and regulations. Legislative and regulatory changes have the potential to limit our opportunities for growth, and government policies and legislation can have a deep impact on how we do business. We present our views on these topics to a wide range of policymakers and stakeholder groups through trade associations, chambers of commerce, and interactions with public officials at the federal level and in the states and communities we serve. We participate in industry associations such as Airlines for America (A4A) and have developed our own public outreach program for our Employees called the Key Contact Program. Our involvement allows us to gain insight into core issues for the airline industry as a whole and to advocate jointly for regulations that support a healthy, competitive industry. We also benefit from the opportunity to share technical expertise and operational knowledge that leads to improved margins of Safety and security, greater Employee and Customer satisfaction, and better overall operational efficiency and reliability. Southwest has adopted a policy that it will primarily use its affiliated political action committee, the Southwest Airlines Co. Freedom Fund (Freedom Fund), which is financed through voluntary Employee contributions, to support political campaigns, and that Company funds will be limited to supporting selected political campaigns at the state and local level in compliance with the laws of the relevant states and localities. All political campaign contributions from the Freedom Fund or by the Company directly are approved by the Senior Vice President of Governmental Affairs and Real Estate and overseen by Southwest’s Executive Vice President/Chief Legal and Regulatory Officer, with an annual summary of those contributions provided to the Southwest Board of Directors. All political contributions are intended to promote the interests of the Company and are not guided by any private political preferences of any Employee. All contributions by the Freedom Fund are disclosed via publicly available reports filed monthly with the Federal Election Commission. The Company strives to comply with all applicable federal, state, and local campaign finance restrictions and disclosure requirements. |
|
| SO-6 | Political contributions | In 2018, the Company contributed $34,600 directly to political campaigns at the state and/or local level in four states (California, Florida, Illinois, and Maryland). In 2018, the Company did not support or finance any state or local ballot measure before voters. At the federal level, no Company funds were used to support or finance any political campaign, nor did the Company support or finance any so-called “Super PACs” or any political committees organized under section 527 of the Internal Revenue Code. The Company made one $50,000 contribution to a politically-affiliated 501(c)(4) organization in 2018. In 2018, A4A, our airline industry trade association, determined that $ 1,279,040of the total dues paid by the Company to A4A were nondeductible lobbying expenses. Southwest also paid dues to several other national, state, and local trade associations and chamber organizations, in which a portion of those dues were used by these organizations for nondeductible lobbying activities; however, in all cases, that portion was less than $7,000 annually for each organization. |
| Indicator | Description | Detail/Location in Report |
|---|---|---|
| CUSTOMER HEALTH AND SAFETY | ||
| DMA | At Southwest, we are committed to the Safety & Security of our Customers and Employees—it’s our number one priority. We continually work to create and foster a Culture of Safety & Security that proactively identifies and manages risks to the operation and workplace before they can become injuries, accidents, or incidents. We strive to manage our Culture of Safety & Security through establishing and annually reviewing Safety related objectives, establishing and promoting Safety & Security reporting processes, and creating and maintaining a proactive reporting Culture. Southwest’s policy is that no disciplinary action will be taken against any Employee for reporting a Safety or Security occurrence or hazards, except in cases where behavior is ultimately deemed to be reckless. | |
| PR-1 | Health and safety impact assessment | Equipping our Employees with Tools for Success People Data Table |
| PRODUCT AND SERVICE LABELING | ||
| DMA | Southwest has always focused on the Customer, with features such as no first or second checked bag (size and weight limits apply) or change fees (fare differences apply), and with a constant desire to improve the Customer Experience. We measure our Customer Satisfaction on an ongoing basis by tracking various sources of Customer Satisfaction data such as our Net Promoter Score, the American Customer Satisfaction Index, and the U.S. Department of Transportation’s (DOT) Customer Satisfaction Ratings. We also measure Customer Satisfaction through our own Tracking Loyal Customers platform and through the Customer Experience survey which is sent to a representative sample of Customers each day post-travel. Survey results are reported to Leaders of the Company and to Leaders in the various Customer touchpoint areas who use the results to measure performance of key activities. We also do monthly brand monitor research and other ad hoc research that evaluates Customer and Non-Customer perceptions and experiences. Additionally, we track feedback received through various channels such as call centers and social media to learn how we are doing. We recognize the importance of communicating openly, accurately, and responsibly about our service to our Customers, and we are committed to Transfarency,® honest communication about our fares, so Customers can make informed choices. Our Customer Service actions are further communicated to our Customers through the use of various channels or Customer Insight opportunities that allow for two-way communication with our Customers, such as through Southwest’s Listening Center and social media. In all these channels, we’re answering questions and looking for ways to connect our Customers to what’s important in their lives. People Customer Service Policies (click on “Customer Commitments”) |
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| PR-5 | Customer satisfaction | External Customer commendations were over 96,000 in 2018, our U.S. DOT score related to consumer complaints per 100,000 enplanements decreased over 20% from 2017, and our mishandled baggage ratio remained strong. Bold Blue: Because Our People Know Best Sharing our Heart in California For Us, Its Personal Using our Southwest Hearts to Engage on Meaningful Topics People Data Table |
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