Tourism and Corporate Social Responsibility - Essay Example

Introduction Tourism and corporate social responsibility (CSR) are issues that have become a focus for the tourism and hospitality industry. Supported by research highlighting the impact of tourism activities in localities and their potential to support social development initiatives, developing competencies for collaborations between industries and communities has become a strong advocacy. Dodds and Joppe (2005) cites that this has also been seen as critical in developing sustainable industries, mitigating tourism impacts and developing new niches in tourism. The perspective also has a recognized global relevance: the United Nations Conference on Trade and Development (UNCTAD) (2002) points out that in in emphasizing CSR in many of the tourism key areas, the transfer of skills to the generally less developed countries is not limited to tourism industries but is replicated in other industries of development as well. However, like in any other industry, the value of CSR in tourism operations has not been practiced universally though recognized by industry players in recent years. One of the main reasons for the limited practice is the view that it is often considered non-essential in operations or is a secondary financial and operational priority (Campbell, 2006). At the same time, most management principles designed for the industry are focused on direct clients and sustainability has only become a recent priority for the industry (Voultsaki, 2000). Henderson (2007) points out however that recent global events, such as the Indian Ocean tsunami, have greatly challenged this viewpoint. The realization is that as tourism industries have become more significant for economies and become more accessible to global markets, it is impacting social interactions, communications and collaborations in a similar scale. Sustainability of Tourism and Corporate Social Responsibility In a study developed by Weaver and Lawton (2004), the concern that tourism is affecting local communities negatively developed from the limited insight on how visitor's movements and activities can change social, political and cultural dynamics. Though tourism generally boosts local economies, it also increases the demand for social services, potential for crime and victimization and environmental stress (Voultsaki, 2000). The scale of tourism has been increased dramatically by innovations communication transportation and has challenged even long-established tourist hot spots to deal with the influx of visitors (Henderson, 2007). Though many of the issues have been dealt with effectively as they developed, there was also the realization the most efforts were reactive rather than responsive to the developing needs of tourism industries. Thus, the initiative to improve industry sustainability concepts and practices became a major area of interest for research and management. According to Campbell (2006), one of the challenges for the adaptation of CSR principles is communicating effectively that the quantified costs of CSR programs are justified. Since CSR-based or initiated program benefits can not be justified directly by quantitative measures, the cost-benefit analysis often negates implementation. Though companies may be able to have fiscal justification, Henderson (2007) points out that such perspectives do not only diminish the social involvement and participation of company and ultimately lessen not only their own social value but the rest of the industry as well. This in turn can compromise public support for tourism initiatives or create deterrents to the development of policies and regulations for the industry. From the other end of the spectrum the when companies adapt CSR philosophies, the state and the community are able mitigate or regulate corporate social power which may be pervading particularly in the case of large multinational operators in least developed countries (Whitehouse, 2003; UNCTAD, 2002). Thus, in establishing their social relevance and concern, tourism operators are able to maintain socio-political support increasing their value to the community. Moreover, sustainability is increased not only due to the competencies developed by the tourism operation but also by decreasing the resistance or contravention of tourism industry interests (Australian Government Productivity Commission, 2003). In doing so, tourist operators will have more power to influence public policies that can affect their operations, increase the relevance or regard for their concerns and enhance public relation initiatives raising brand and service value. Thus, sustainability is not just dependent on the efforts of the company but is reinforced by the public and social institutions. Industry Rationale According to Whitehouse (2003), CSR initiatives can range be developed by tourism operations independently or in conjunctions with other social initiatives. Similarly, the motivations for adapting CSR philosophies in operations may be internally motivate or in response to public concerns and issues. However, Campbell (2006) believes that there is a limitation on the existing research regarding the determinants of CSR and in turn, whether such policies are a component in what is to be considered as " minimally acceptable corporate behavior" (p. 925). The implication is that there is limited understanding on what actually queues the consideration of CSR philosophy adaptation and current research can has only been developed significantly after the decision to engage in such activities has already been made. Dodds and Joppe (2005) believe that such a limitation is not an impairment to CSR initiatives though it may create challenges in understanding the theoretical or conceptual development of practices. Internally, it can support organizational commitment and externally, it emphasizes that tourism is not limited as a business enterprise. Operationally and strategically, the rationale for CSR philosophies can be justified sufficiently through impact or sensitivity analyses, maybe not linearly, but in such a degree that they operational or strategic value can be defined. As evidenced in a number of initiatives around the world, CSR projects have been beneficial to tourism operations and the communities they have been conducted in. The need for such initiatives has been raised primarily due to environmental and social concerns (United Nations Environmental Programme [UNEP], 2002; Bouguet, 2002). Regardless of the actual, the demand for CSR initiatives from the industry is justified by their use of natural or public resources and economic gain through operations. Benefits and Impact Primarily because of the Australian Government Productivity Commission's (2003) environmental impact assessment study of the Great Barrier Reef catchment, policies were developed to mitigate the impact of agricultural activity and tourist traffic to the biosphere. In controlling the visitor traffic and exposure however a subsequent effect is that market volume and potential is to be limited. Another result is that in required the re-engineering of land and water utility of areas that were the source of catchment materials, the cost which the state could not bear in itself. After an initial resistance, industry organizations in both areas of concern supported the research and modification in operations. These included the rehabilitation of negatively impacted ares of the catchment, provisions of resources for the conversion of modification of land and water utility as well as educational and support programs. Credited to these CSR efforts is the mitigation of coral bleaching in the Great Barrier Reef, social collaboration and mobility for environmental protection concerns and the institution of professional support programs for tourism operations as well as agriculture. Rehabilitation of tourist spots hit by Indian Ocean tsunami such as Phuket were initiated through in consideration of CSR philosophies (Henderson, 2007). The efforts of tourism operators are considered to be critical to the rehabilitation of the area whose economy was greatly dependent on tourism. This also mitigated critiques that the tourism operators did not consider the threat of natural disasters in the development of facilities which may have been a reason for the devastation that resulted from the tsunami. In the case of the Thailand province Chiang Rai, community development projects initiated to support tourism operations have been critical in promoting local cuisine and agricultural products (Tourism Authority of Thailand, 2008). At the same time, the influx of tourists, however transient, increases trade and commerce not only for the Chiang Rai but also for neighboring countries such as Laos and Myanmar. In this example, CSR initiatives support not only local communities but also can enhance unilateral trade and relations. In a similar manner, tourism operations in Greece benefited from CSR initiatives that focused on addressing urban tourism concerns (Voultsaki, 2000). Since most of the areas of interest were situated in current metropolitan areas, tourism operations have worked closely with local governments in developing support and commercial services at tourist destinations. These include the sponsorship of transportation and communications services as well as training and education of locales for employment in tourism operations. This supplies tourism operations manpower and competencies to support operations and at the same time, increases the overall manpower and labor potential. Analysis and Conclusion Ultimately, the recognition of CSR philosophy emphasizes the need for tourism management to consider long-term impact of their operations and to consider the sustainability of strategies that will employed to ensure the continued competitiveness and social value of their activities. To actually determine the value of CSR activities, there is a need to examine and evaluate all aspects of the company's operations that are influenced or utilized by initiatives beyond the need to justify cost. Moreover, the maintenance of sustainable approaches ensures management responsiveness versus simply reacting to current issues and concerns. There are various motivations in developing initiatives that respond to CSR needs. Regardless of these motivations, since sustainability strategies implies long-term and collaborative, there is an implication that the adoption of CSR philosophies support sustainable tourism operations. Furthermore, since tourism is a vehicle for social and cultural promotion there is an undeniable public interest in the industry. This justifies the social demand for tourism industry participation in CSR projects as well as the resources devoted for the accomplishment of these initiatives. As Dodds and Joppe (2005) conclude in their study, "...concerted effort using all the arms of government - central, regional and local government and public agencies, as well as the private and voluntary sectors to form private/public partnerships. Integration into wider sustainable development plans as well as destination management plans is imperative, and a bottom-up as well as a top-down policy approach is needed." (p. 35). There is still a need for further research to enhance current insights on the use of CSR philosophies in sustainable development in the tourism industry. Because of the significant capital required in entering the industry and maintaining operations, whatever competency that CSR initiatives can enhance sustainability of strategies. In turn, this increases the yield of investment in tourism not only as an industry but also as a public institution. In generating public support and collaboration with the public, other industries and with other operators, industries are able to increase utility of resources, develop competencies, economic value and marketability of tourism industries. Therefore, to be able to develop sustainable approaches to the tourism industry, CSR should be considered a consideration for management to be able to achieve strategic and competitive operations. References Australian Government Productivity Commission (2003). Industries, Land Use and Water Quality in the Great Barrier Reef Catchment - Key Points. Retrieved on Octo from October 4, 2008 from http://www.pc.gov.au/study/gbr/finalreport/keypoints.html Bouguet, D. (2002). Convergence in Social Welfare Systems: What Are We Talking About. Comparing Dynamics of Transformation of Social Protection Systems in Context of Globalization and European Construction. Oslo Norway: Welfare Reforms for the 21st Century - Second Conference Campbell, John L. (2006). Institutional Analysis and the Paradox of Corporate Social Responsibility. American Behavioral Scientist, 49: 925 - 938. Dodds, Rachel and Joppe, Marion (2005). CSR in the Tourism Industry The Status of and Potential for Certification, Codes of Conduct and Guidelines. Washington: International Finance Corporation - Foreign Investment Advisory Service - Investment Climate Department. Retrieved October 4, 2008 from http://www.ifc.org/ifcext/economics.nsf/AttachmentsByTitle/CSR+in+the+Tourism+Industry/$FILE/CSR+in+the+Tourism+Industry.pdf Henderson, J. (2007). Corporate social responsibility and tourism: Hotel companies in Phuket, Thailand, after the Indian Ocean tsunami, International Journal of Hospitality. Management, 26, 228 - 239 Roson, Roberto (2003). Modelling The Economic Impact Of Climate Change, EEE Working Papers Series - N. 9. Italy: Ecological and Environmental Economics Programme Tourism Authority of Thailand (2008). Chiang Rai. Retrieved October 4, 2008 from http://chiangrai.sawadee.com United Nations Conference on Trade and Development (2002). Multinational Corporations (MNCs) in Least Developed Countries (LDC's). Geneva, Switzerland: UNCTAD United Nations Environmental Programme (2002), Environmental Effects of Ozone Depletion and its interactions with climate change: 2002 Assessment. Nairobi, Kenya: UNEP Voultsaki, Maria (2000). Innovative Partnerships for Sustainable Urban Tourism. Thessaloniki, Greece: Aristotle University of Thessaloniki - Department of Urban and Regional Planning and Development. Weaver, David B. and Lawton, Laura J. (2004). Visitor Attitudes toward Tourism Development and Product Integration in an Australian Urban-Rural Fringe. Journal of Travel Research, Vol. 42, No. 3, 286-296 Whitehouse, Lisa (2003). Corporate Social Responsibility, Corporate Citizenship and the Global Compact: A New Approach to Regulating Corporate Social Power Global Social Policy, 3: 299 - 318. Read More