Csr in the Hospitality Industry
Contemporary Issues in Hospitality & Tourism Administration
Arlene M. Garrick
Oklahoma State University, Stillwater
September 29, 2009
Corporate Social Responsibility in the Hospitality Industry
Introduction
Corporate Social Responsibility (CSR) has progressively become known as a germane issue in the corporate world for the past decade. Making the world a better place, socially and environmentally, is a global accepted phenomenon. According to Porter & Kramer, 2006, “corporate social responsibility has emerged as an inescapable priority for business leaders in every country.” The objective of this review is to discuss benefits of CSR on the hotel industry.
What is CSR? Corporate social responsibility involves the ethical and non-commercial responsibilities of businesses as they relate to society in general. It is based, on a triple bottom-line approach for companies -- people (society), planet (environment) and economic (profit) (Gard McGehee, Wattanakamolchai, Perdue, Onat Calvert, 2009; Kuriakose, 2007; Clark, 2006). Smith posited that CSR implies the need for businesses to contribute to the communities and markets that have made them successful (cited in Gard McGehee et al, 2009, p.417); consequently, companies must consider the wellbeing of society in addition to their concerns for owners, investors and any shareholders. According to Holcomb, Upchurch and Okumus (2007), the value of CSR is in achieving corporate sustainability in order to create long-term shareholder value. This involves exploiting the market’s potential for sustainable product and services, while successfully reducing and avoiding associated cost and risk.
The Gap – The Negative Impact of Not Engaging in CSR Porter & Kramer (2006) posit that, “Frequently, though, CSR efforts are counterproductive, for two reasons. First, they pit business against society, when in reality the two are interdependent. Second, they
Arlene M. Garrick
Oklahoma State University, Stillwater
September 29, 2009
Corporate Social Responsibility in the Hospitality Industry
Introduction
Corporate Social Responsibility (CSR) has progressively become known as a germane issue in the corporate world for the past decade. Making the world a better place, socially and environmentally, is a global accepted phenomenon. According to Porter & Kramer, 2006, “corporate social responsibility has emerged as an inescapable priority for business leaders in every country.” The objective of this review is to discuss benefits of CSR on the hotel industry.
What is CSR? Corporate social responsibility involves the ethical and non-commercial responsibilities of businesses as they relate to society in general. It is based, on a triple bottom-line approach for companies -- people (society), planet (environment) and economic (profit) (Gard McGehee, Wattanakamolchai, Perdue, Onat Calvert, 2009; Kuriakose, 2007; Clark, 2006). Smith posited that CSR implies the need for businesses to contribute to the communities and markets that have made them successful (cited in Gard McGehee et al, 2009, p.417); consequently, companies must consider the wellbeing of society in addition to their concerns for owners, investors and any shareholders. According to Holcomb, Upchurch and Okumus (2007), the value of CSR is in achieving corporate sustainability in order to create long-term shareholder value. This involves exploiting the market’s potential for sustainable product and services, while successfully reducing and avoiding associated cost and risk.
The Gap – The Negative Impact of Not Engaging in CSR Porter & Kramer (2006) posit that, “Frequently, though, CSR efforts are counterproductive, for two reasons. First, they pit business against society, when in reality the two are interdependent. Second, they
References: Clark, S. (2006). Corporate social responsibility: A marketing tool for major hotel brands. HSMAI Marketing Review, 23(1), 42-45. Gard McGehee, N., Wattanakamolchai, S., Perdue, R. R., & Onat Calvert, E. (2009). Corporate Social Responsibility Within the U.S. Lodging Industry: an Exploratory Study. Journal of Hospitality & Tourism Research, 33(3), 417-437. Hartman, L. P., Rubin, R. S., & Dhanda, K. K. (2007). The communication of corporate social responsibility: United States and European Union multinational corporations Holcomb, J. L., Upchurch, R. S., & Okumus, F. (2007). Corporate social responsibility: What are top hotel companies reporting? International Journal of Contemporary Kasim, A. (2006). The Need for Business Environmental and Social Responsibility in the Tourism Industry. International Journal of Hospitality & Tourism Administration, 7(1), 1 - 22. Lynn, Christine (2009) Corporate Social Responsibility in the Hospitality Industry. School of Hotel and Restaurant Management Northern Arizona University, Flagstaff, AZ Nicolau, J. L. (2008). Corporate Social Responsibility: Worth-Creating activities. Annals of Tourism Research, 35(4), 990-1006. Porter, M. E., & Kramer, M. R. (2006). Strategy and society: the link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92, 163. White, Michelle."Make sure that you deliver on green promises." Caterer & Hotelkeeper. 2006. Retrieved September 26, 2009 from accessmylibrary: http://www.accessmylibrary.com/coms2/summary_0286-20063017_ITM