Role of Corporate Social Responsibility - Essay Example

?CSR and Corporate Ethics Table of Contents Table of Contents 2 Introduction 4 Definition of Main Terms 4 Corporate Social Responsibility (CSR) 4 Corporate Ethics 5 Critical Arguments 5 Role of CSR in Travel and Tourism Industry 5 Role of Business Ethics in Travel and Tourism Industry 6 Benefits of Implementing CSR and business ethics in the tourism industry 7 Evaluation 8 The Link of CSR in Tourism Industry 8 The Link of Business Ethics in Tourism Industry 8 Conclusion 10 References 11 Bibliography 14 Introduction The affiliation between the business and the society has long been witnessed to be a major source of intellectual interest in this present day context. One of the greatest challenges of mankind and contemporary organisations is to maintain sustainability. The requirements of the present along with the future generations relating to the aspect of sustainability cannot be met, if proper care and respect are not provided to natural resources and core social as well as environmental values (Mullerat, 2011). Considering from a general standpoint, it can be affirmed that an organisation cannot flourish until and unless the environments in which it is operating are healthy. Similarly, maintaining ethics in workplace is equally important. Ethics guides an organisation to maintain moral, ecological and social consciousness within a specific organisation (Gangone & et. al., 2010). Definition of Main Terms Corporate Social Responsibility (CSR) In this competitive market, the main responsibility of the businesses has been to make money and boost shareholders’ value. In precise, corporate finance responsibility has been noted to be one of the prime objectives of businesses. However, in the previous few decades, wider corporate responsibility for the environment, local communities, working conditions and ethical practises has gained momentum. This particular notion can be related with the notion of Corporate Social Responsibility (CSR) (Rionda, 2002). Several researchers and analysts described CSR in different ways. For example, as stated by Crowther & et. al., (2008), CSR analyses financial, legal, moral, social along with physical environmental facets. In other words, it is regarded as one of the vital approaches that adopt by the company for minimising adverse effects particularly on the environment (Swift & et. al., 2002). Corporate Ethics In this present day context, the market economy is driven by consumer preference and consumer capacity. However, during the preceding four decades, there has been an escalating requirement for acquiring information on social along with environmental impact of corporate policy and appraisal effects. Ethics is not a new term for the corporates. As a matter of fact, corporate possesses certain rules, standards and norms for conducting business. However, these practices can be changed from one country to other having social along with cultural basis. Thus, when corporate apply these standards or norms as a part of practice or responsibility, then it is often termed as ‘ethical code of conducting business’ or corporate ethics. In general, corporate ethics is regarded as the proper study of business policies along with practices relating to certain significant aspects that include unfairness, trading, CSR and corporate governance among others (Crowther & et. al., 2008; Berenbeim, 1987). It has been apparently observed that corporate ethics and CSR are interrelated with each other and thus require to be understood in detail. However, it is often viewed that both these terms have different meanings. The former concerns the impact of the entire business activities on the environment and the latter is related to an individual or work group consideration that society judges as right or wrong. Critical Arguments Role of CSR in Travel and Tourism Industry In today’s frequent changing business environment, the industry of travel and tourism is facing quite competitive situation in the global market. In order to determine the role of CSR in this particular industry, it can be affirmed that with the adoption along with the implementation of this significant aspect i.e. CSR, the industry of travel and tourism can reach up to a sustainable standard. The only way for this industry to sustain in the rapidly changing business setting is to offer a distinguished tourism product. It has been argued that the tourism destinations are confronted with different difficulties on global level (Heinze, 2005; Ritchie & et. al. 2003). One of the major roles that might play by CSR in the industry of travel and tourism is determining comparative advantage. In this regard, comparative advantage comprises the resource benefits that are provided either by the nature or by the society within which the tourism destinations exist. It generally includes human, physical along with historical resources. Arguably, competitive advantage comprises the factors that have been formed as a result of effective resource development like growth, maintenance and effectiveness. In simple words, the success of an industry depends upon how industries utilise available resources and perform CSR based roles effectively (Vanhove, 2012). Apart from this, the other major role of CSR in travel along with tourism industry can be viewed as optimum exploitation of environmental resources, resulting in delivering greater socio-economic benefits to every stakeholder belonging to the industry (Golja & et. al., 2010). Thus, from the above discussion, it can be affirmed that CSR plays a decisive role in the industry of travel and tourism at large. Role of Business Ethics in Travel and Tourism Industry Based on the above discussion, it can be ascertained that business ethics act as guidelines for the business owners to differentiate between what is right and what is wrong. Along with the notion of CSR, business ethics also play an imperative role in attaining sustainability in the long run. Therefore, the industry should focus on developing unique, attractive and safe tourism products. Moreover, the industry should ensure quality tourism destination. Along with ensuring quality tourism destination, the industry should focus more on the safety of the tourist to whom the tourism products have been offered. All these measures in combination would eventually determine the role play by business ethics in the respective industry, resulting in complying with customers’ demand at large. One of the principles of business ethics relating to the industry of travel and tourism can be associated with the notion of Global Code of Ethics for Tourism (GCET). In this context, GCET is regarded as a complete set of principles that aid in minimising the negative impacts of tourism on the environment along with cultural heritage and thereby, optimising the benefits for the residents or the customers of the tourism industry (Golja & et. al., 2010). Benefits of Implementing CSR and business ethics in the tourism industry The significant aspects of business ethics and CSR can deliver greater benefits to the tourism industry. This can be justified with reference to the fact that these aspects attract the customers to buy a particular product of any company or a firm and thereby, enhancing sales and profit at large. Additionally, these aspects enhance the development of leadership qualities along with practices. These depicts about how a business leader behave efficiently towards the organisation along with the environment. In relation to the industry of travel and tourism, CSR and business ethics would support the industry in terms of generating greater demand of tourism products and attracting the customers to avail the same. One of the major benefits of implementing CSR and business ethics in this industry can be apparently noted as that these would attract more shareholders and protect the business of the industry from any sort of take over. However, it can be argued that unethical behaviour and lack of CSR perspective may harm the business reputation of the industry and can make less appealing to shareholders and customers (Dennis, 2008). Based on the above discussion, it can be affirmed that the tourism sector should contribute to the formation and the development of highly competitive and quality tourism product by taking into concern the aspects of business ethics and CSR in order to sustain in this competitive landscape. Therefore, with the incorporation of both CSR and business ethics, the formation of a sustainable tourism industry would be possible. Evaluation The Link of CSR in Tourism Industry Although sustainable tourism expansion and related form of tourism are widely debated, specific discussion about the link of CSR and business ethics in this industry appears to be rare. It can be apparently observed in this modern day context that the activities performed for social and environment well-being are often found to be responsible for increasing number of tourism business (Monshausen & et. al., 2010). This eventually depicts the link of CSR and business ethics particularly in tourism industry. However, in relation to tourism industry, the sole purpose of CSR and business ethics should not be viewed as the market benefits owing to the reason that the credibility of the business will be at risk. A few of the requirements that include focus on human rights, labour standards and environmental protection among others should be fulfilled (Baltruschat, 2011). The Link of Business Ethics in Tourism Industry As travel industry involves diverse tourist destinations throughout the globe, it is essential to maintain the principles of business ethics while offering tourism products to the consumers. It is worth mentioning that one of the prime business ethics, which needed to be maintained by the tourism industry, is providing safety to the visitors or the tourists. This ultimately reveals the importance or the link of business ethics in the tourism industry (Lovelock, 2007). Conclusion From the above discussion, it can be affirmed that businesses must be conducted in a responsible way for the purpose of attaining long-term sustainability. With the implementation of CSR and business ethics, tourism industry can contribute towards the attainment of sustainable development by a certain degree. The discussion about the importance of CSR and business ethics in the tourism sector reveals that earning profit is not only the sole intention of the industry, rather the industry ought to focus on the well-being of the environment along with the society at large. This, in turn, would ensure attracting more loyal customers towards buying tourism products. Thus, it can be concluded both the aspects of CSR and corporate ethics play a decisive role in supporting the travel and tourism industry towards the accomplishment of greater profitability and sustainability. References Baltruschat, A., 2011. Exploring the Scope and Relevance of Corporate Social Responsibility for Small and Medium Size Tourism Enterprises. [Online] Available at: http://www.mascontour.info/Media/Veroeffentlichungen/Bachelor%20Thesis%20-%20Anne%20Baltruschat%20-%20NHTV%20Breda.pdf [Accessed Dec 04, 2013]. Berenbeim, E. R., 1987. Corporate Ethics, Volume 17, Issue 4. Conference Board. Crowther, D. & et. al., 2008. Corporate Social Responsibility. Defining Corporate Social Responsibility. [Online] Available at: http://www.mdos.si/Files/defining-corporate-social-responsibility.pdf [Accessed Dec 04, 2013]. Crowther, D. & et. al., 2008. Corporate Social Responsibility. What is Ethics, The Why. [Online] Available at: http://www.mdos.si/Files/defining-corporate-social-responsibility.pdf [Accessed Dec 04, 2013]. Dennis, M., 2008. Why Enforcing Corporate Social Responsibility (CSR) is Morally Questionable. Electronic Journal of Business Ethics and Organization Studies, Vol.13, No.1, pp. 13-21. Golja, T. & et. al., 2010. Corporate Social Responsibility in Tourism - The Most Popular Tourism Destinations in Croatia: Comparative Analysis. Tourism Destination and Tourism Product. Vol. 15, No. 2, pp. 107-121. Gangone, A. & et. al., 2010. The Role of the Code of Ethics in the Contemporary Firms Activity. Economics, Vol. 10, No. 1, pp. 103-110. Heinze, W. K. L., 2005. In the Mood to Give: How and Why Positive Affect Increases the Importance of CSR. Northwestern University. [Online] Available at: http://www.kellogg.northwestern.edu/research/Ktag/images/KJOB05%20Kate.pdf [Accessed Dec 04, 2013]. Lovelock, B., 2007. Ethical Travel Decisions Travel Agents and Human Rights. Annals of Tourism Research, Vol. 35, No. 2, pp. 338-358. Mullerat, R., 2011. Corporate Social Responsibility: Evolution of a De?nitional Construct: The Corporate Governance of the 21st Century. Kluwer Law International. Monshausen, A. & et. al., 2010. CSR in Tourism: Pretence and Reality. Contours, Vol. 20, No. 1, pp. 4-7. Rionda, L. Z., 2002. What is Corporate Social Responsibility. Introduction. [Online] Available at: http://www.pathfinder.org/publications-tools/pdfs/CATALYST-What-is-Corporate-Social-Responsibility-8-Questions-and-Answers.pdf [Accessed Dec 04, 2013]. Ritchie, B. R. J. & et. al., 2003. The Competitive Destination: A Sustainable Tourism Perspective. CABI Publishing. Swift, T. & et. al., 2002. Corporate Responsibility and the Competitive Advantage of Nations. Corporate Social Responsibility –Beyond Buzz Words. Vanhove, N., 2012. The Economics of Tourism Destination. Routledge. Bibliography Berenbeim, E. R., 1987. Corporate Ethics, Volume 17, Issue 4. Conference Board. Bassen, A. & et. al., 2005. Corporate Social Responsibility. Zfwu, Vol. 6, No. 2, pp. 231-236. Leonard, D. & et. al., 2003. Corporate Social Responsibility. Quality and Ethics. [Online] Available at: http://alexandrow.pdforms.texas-quality.org/SiteImages/125/Reference%20Library/Social%20Responsibility%20-%20Leonard.pdf [Accessed Dec 04, 2013]. Mullerat, R., 2011. Corporate Social Responsibility: The Corporate Governance of the 21st Century. Kluwer Law International. Pilger, J & et. al., 1996. Network First: Inside Burma: Land of Fear. Documentary. [Online] Available at: http://topdocumentaryfilms.com/inside-burma-land-of-fear/ [Accessed Dec 04, 2013]. Trevino, L. K., 2010. Managing Business Ethics. John Wiley & Sons. Read More