Sales, consumer purchases fundamentally have always remained informed by quality; price and convenience but there had been a big change towards responsibly produced commodities. For example the demand in all of Europe for fair trade goods had raised from 51% in 2008 to almost 79% in 2012, consumer awareness for ethically produced commodities has also substantially risen. (Goff, 2012). Corporate Social Responsibility (CSR) and its extent has always been a practice usually dictated by the owner or the major stakeholders but in today’s world of infinite connectivity and social media, reputation can make or break a corporation. CSR is usually a pledge taken by an establishment or corporation to set in place socio-ethically responsible policies in areas of work ethics, human welfare, environment and human rights. According to Smith, (2003), “CSR refers to the obligations of the firm to society or, more specifically, the firm’s stakeholders—those affected by corporate policies and practices.” All major five star establishments today are owned and run by giant corporations and most of them have adapted a responsible approach of doing business by recognizing that in order to be successful in this current era they will have to win over their customers respect. Although most businesses have opted for the moral high ground, one can only wonder if the sentiments are genuine or just a successful Public Relations front?
(b) Objective of the report
In this report we will analyze and study CSR and its several impacts it has had on the hospitality industry. This report will elaborate upon several areas of business policy in relation to CSR that modern day five-star hotels have adapted and evaluate their merits, de-merits and legitimacy. We will further discuss criticisms CSR practices are facing. Finally this report will provide business/policy strategies and recommendations that can help a corporation effectively maintain CSR and how will it benefit today’s five-star hotel establishments in the long run.
(c) Areas of Consideration.
We well briefly delve into what makes CSR so effective and how can it benefit five star hotels in the long run by mapping the following areas:
* What is CSR?
* Types of CSR
* Importance of CSR in modern day five star hotels.
* Criticisms of CSR.
* Recommendations for effective CSR.
Understanding Corporate Social Responsibility
With mass globalization of several hospitality businesses holstering a clean reputation is not only good for the company but it is, to an extent quintessential. Almost all modern day corporations have adopted CSR as a standard business practice and its implication has had a very positive effect on profits in some cases it has also helped give the company an edge over competitors. But what actually is Corporate Social Responsibility?
“Corporate Social Responsibility is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner. ‘Ethically or responsible' means treating key stakeholders in a manner deemed acceptable according to international norms.”(Hopkins, 2011)
CSR is the idea that every business has a moral obligation towards their consumers. These socially responsible corporations usually maintain a very positive appeal in society. Corporate Social Responsibility is simply about a business giving back to society. (Friedman 1970)
Types of Corporate Social Responsibility
There are usually four basic types of CSR which helps a business do more for the wellbeing of others than required in an economical (make a profit) and legal (obey the law) sense. (Lingen, 2011)
* Environmental CSR.
This type of CSR primarily focuses on environmentally driven issues such as global warming and climate change. With global awareness on the widespread about climate change companies usually have an obligation to carry business...