Responsible Hospitality Management - Literature review Example

Responsible Hospitality Management Name Institution Course Date Responsible Hospitality Management Introduction In the last few decades, tourism and hospitality industry has emerged one of the leading industries in the global economy (Deale, Nicholas and Jacques, 2009). Tourism industry is considered an important foreign exchange earner which contributes to the growth of the economy, creation of employment and attraction of investments. Nevertheless, many hospitality businesses have been condemned for neglecting their responsibility towards the community, employees and the environment (Porters and Kramer, 2006). However, some hospitality companies have implemented Corporate Social Responsibility practices in order to be responsible to the environment, the community, customers and employees. This assessment will describe the concept of Corporate Social Responsibility in the hospitality industry. It will evaluate how responsible three hospitality businesses truly are. The businesses to be evaluated include Shangri-La Hotels and Resort, Hilton Hotels and Starwood Hotels and Resorts. After the evaluation, the paper will provide a CSR checklist that will evaluate responsible behaviour against. And consequently, the assessment will offer a conclusion from the evaluation of the businesses. Corporate Social Responsibility Corporate Social Responsibility is a notion that has undergone scrutiny for over 50 years and has become prevalent in the recent years (Porters and Kramer, 2006). The increasing number of multinational corporations and domestic companies are adapting to a number of Corporate Social Responsibility initiatives that incorporates codes of conducts to improve environmental systems and health and safety and support of community development projects. Satisfying businesses’ demands and needs as well as returning a profit for the money they have invested was the main focus for many organisations (Porters and Kramer, 2006). Over time, awareness of pressing social and environmental challenges has grown among organisations. Therefore, as a result, a business model that is focussed on the companies’ responsibilities towards the shareholders and the society has come into existence (Porters and Kramer, 2006). Corporate Social Responsibility can be termed as the ethical and non-business responsibilities that companies have to the society (Pryce, 2001). It comprises of a triple bottom-line approach involving people, planet and profit. The concept of Corporate Social Responsibility has gained popularity in the hospitality industry. Many hospitality companies such as Starwood and Shangri-La Hotels and Resort have developed Corporate Social Responsibility programs with an aim of boosting customer loyalty, enhancing reputation, conserving the environment and reducing social problems in the communities (Kasim, 2006). Overall, corporate social responsibility is said to be the way hospitality companies incorporate environmental, economic as well as social issues into their operations and values in an accountable manner which enable them establish better practices, create profit and at the same time improve the society (Kasim, 2006). Corporate social responsibility has been linked to enhanced profitability and value of an organisation (Porters and Kramer, 2006). To start with, the introduction of green practices in companies with an aim of introducing energy efficiencies and waste recycling can assist in reducing operational costs and at the same time benefits the environment. In addition, corporate social responsibility has increased firms’ accountability and transparency with the public community and the media. As a result, this increases their reputation among customers and also the investors (Porters and Kramer, 2006). This brings about virtuous circle since the stock value of an organisation increases and the availability of investment capital is alleviated. This leads to higher profitability. Generally, companies that have implemented corporate social responsibility programs in their operations enjoy investment opportunities as well as media attention that enhance their reputation and brand image (Porters and Kramer, 2006). In the long run, higher profitability results that enhances the success of the organisations. Although corporate social responsibility brings about many advantages, cost and time represent the major disadvantage that has made some companies not adopt corporate social responsibility programs (Kasim, 2006). These programs require some changes to be made in an organisation. These changes are expensive and may be in terms of equipment or cost expenditures that do not bring about profits. In addition, it also takes time for any CSR program to be implemented thus interrupting the operation of an organisation. Needless to say, there is no proper evidence that has linked corporate social responsibility with increase in sales and profits (Kasim, 2006). Consequently, implementation of corporate social responsibility initiative brings about cost and time constraints to companies without the guarantee for profit generation. Another reason that an organisation would object to implementing corporate social responsibility initiatives is the fact that such programs may be an exercise in futility. The major function of any organisation is to yield profits for the shareholders (Kasim, 2006). Critics however say that CSR opposes to this fact. An organisation that abandons profit generation in favour of benefiting the environment or the society is said to be going against the intent of the business (Porters and Kramer, 2006). This is the reason why many hospitality businesses just talk about corporate social responsibility but not entirely involving themselves in it. Sustainable tourism and hospitality practices must be incorporated in companies’ public policy and planning process so as to optimize and promote the contribution of tourism to both environmental and social quality. Corporate social responsibility of hospitability companies should be in the direction of the employees, customers, local community, the government, environment and responsible sourcing (Porters and Kramer, 2006). Hospitality Companies and Corporate Social Responsibility Hilton Worldwide Hilton Worldwide Business is considered the leading hospitality company across the globe which covers luxurious hotels and resorts in more than 85 countries (Dudovskiy, 2016). With over 92 years of operation, the company has phenomenon innovation, breath-taking design, and well-trained service that are appreciated by customers across the world. Hilton Worldwide has reported its obligation towards the employees, the local community, and environment. It launched a program called Travel with Purpose which acts as a guiding principle towards the company’s Corporate Social Responsibility initiatives (Dudovskiy, 2016). Hilton is committed to releasing annual Global Responsibility Report that describes its CSR programs. One important initiative that Hilton is involved in is community engagement and giving. Hilton Worldwide has been involved in charitable donations to local communities. For instance, the hotel has incorporated goodwill projects such as education responsibility, health responsibility, and philanthropic responsibility etc. (Dudovskiy, 2016). Such initiatives has enable the hotel provide assistance to the community in terms of the specific needs of different people which has eventually enhance its positive publicity. Hilton offers training to high school students on how to start and own businesses and has supported the lives and education of low-income underserved students across different countries (RLJ Lodging Trust, 2015). In addition to charitable programs, Hilton Worldwide is committed to protecting the environment. For instance, it is involved in water conservation program which involves the installation of low-flow aerators in all the guests’ rooms which has reduced water use. It has installed building energy management systems that control and monitor the mechanical and electrical equipment in its hotels in order to control energy use. However, it is reported that Hilton has focussed too much on energy and water use and has forgotten about waste management practices (McGehee et al., 2009). It is among hotels that are known for having a lot of food wastage and poor waste management. In addition, Hilton has implemented CSR initiative that is focussed on its employees. The hotel has diverse workforce who come from different ethnic backgrounds with diverse cultures (Dudovskiy, 2016). With different backgrounds, all employees are treated equally irrespective of their cultures thanks to the company’s commitment to Corporate Social Responsibility. In addition, the company is inclined to share its management system and train its employees in order to ensure greater performance. In 2014, about 14,000 Hilton managers underwent ethics and anti-corruption education and training as a way of enhancing its CSR initiative. However, although the company has put effort in ensuring they take care of the employees, it has not implemented any health and safety program for the employees (Dudovskiy, 2016). Also, the company is known for its contribution for increased customer satisfaction and speed of customer service and enhanced customer experience. Hilton is also involved in protecting labour and human rights. It has been recognised for its contribution towards creating human rights awareness. It received a score of 100 per cent for emphasizing on human rights in its supply chain from Human Rights Campaign Foundation’s Index (RLJ Lodging Trust, 2015). Sustainable sourcing is among the most important element of its sustainable agenda. Recently, Hilton banned shark fin in all its hotels across the globe and started using cage-free eggs and gestation free pork (RLJ Lodging Trust, 2015). Hilton Worldwide has received rewards and recognition for being sustainable. Hilton Resort in Dubai was the first hotel that received Dubai Chamber of Commerce and Industry’s CSR Level for implementing CSR strategies (Dudovskiy, 2016). This reward has promoted Hilton’s environment-friendly image and has enabled it win the public appealing. Although Hilton Worldwide has made a huge effort in implementing corporate social responsibility in its operations there are some few changes that needs to be done in order to ensure full commitment towards its sustainability agenda (McGehee et al., 2009). Nevertheless, Sangria-La is worthy of receiving recognition and awards for being socially responsible. Shangri-La Hotels and Resorts Shangri-La Hotels and Resorts is a multinational hospitality corporation founded in 1971 and headquartered in Hong Kong (Sangria-La Hotels and Resorts, 2014). The hospitality company has about 111 hotels in countries like Australia, the United States, Asia as well as Canada. The company has been committed to handle five CSR areas including environment, stakeholder, employees, employee safety and supply chain. These areas are under the umbrella of sustainability and the campaign is meant to educate all the stakeholders about the concept of ethics and align all its businesses with the CSR initiatives (Sangria-La Hotels and Resorts, 2014). One important CSR initiative program of Shangri-La hotels and resort include the Care for People Project. This project was founded in 2009 in order to commit all the hotels to a partnership with a particular organisation working on children’s health and education (Sangria-La Hotels and Resorts, 2014). Through the program, the hotels and resorts are committed to offering resources to cover children’s health, schooling and orphanages (Sangria-La Hotels and Resorts, 2014). The program covers infrastructure support, fundraising and hotel and resort apprenticeships. Since its inception, the Care for People Project has more than 100 recipients and 156 successful traineeships of the benefits of the programme. In addition to this program, Shangri-La Hotels and Resorts have implemented Care for Nature Project (Sangria-La Hotels and Resorts, 2014). In Asia/Pacific region, the hotel and resort is known for its commitment towards biodiversity conservation. It has announced its partnership with several non-governmental organisations in ensuring water stewardship, food waste reduction and effective energy use (Sangria-La Hotels and Resorts, 2014). Sangria-La Hotels and Resorts acknowledge its employees and perceives them as the most essential assets for the survival of the company thus social responsibility starts with them (Holcomb, Upchurch and Okmus, 2007). Social responsibility towards the employees is incorporated by continuous projects that support the employees to develop a model work environment; it encourages them to take up voluntary work and care for their families and relatives. It is considered one of the hospitality companies with the most attractive work environment. Also, just like Hilton Worldwide, Sangria-La ensures that it is adheres to its responsibility towards the customers. It offers quality products and services and preserves the health and safety of its guest (Holcomb, Upchurch and Okmus, 2007). However, unlike Starwood Hotels and Resorts, Sangria-La does not practice sustainable sourcing. Although it is in the sustainable agenda of the company, sustainable sourcing has not been stressed as needed. Shangri-La Hotels and Resort has received recognition for their sustainability practices and adherence to corporate social responsibility. It has received recognition from Dow Jones Sustainability Indices as one of the Asia hotels to take part in sustainability initiative (Holcomb, Upchurch and Okmus, 2007). This recognition is a affirmation that the hotels and resorts have continued with their journey towards sustainable operations. Sangria-La is one of the most sustainable hospitality companies in Asia and to remain in this position, the hotel needs to expand its corporate social responsibility (Sangria-La Hotels and Resorts, 2014). It has focussed too much on its philanthropic responsibility and forgotten about other important areas of responsibility. Starwood Hotel and Resort Starwood started as a real estate company but eventually entered the hospitality industry by acquiring some leading global hotel brands such as Sheraton and Westin. Today, the company has over 1,200 hotels and resorts across the world and is among the largest hotels in the world (Starwood Hotels and Resorts, 2012). Over the years, Starwood Hotel and Resort has focussed on a triple-bottom line approach in driving sustainability and building a business that focuses on corporate social responsibility. It has been focussed on energy efficiency, community development, customer satisfaction and environment conservation. Starwood pursue community involvement by giving and associate voluntary. For instance, it has assisted the poor through general education and specialized training to improve their circumstances (Starwood Hotels and Resorts, 2014). The company also is involved in disaster relief by addressing basic survival needs to people faced with disasters. In addition, Starwood is also involved in human rights issues. It supports human rights awareness through offering grants to organisations such as End of Child Prostitution and Polaris Project (Starwood Hotels and Resorts, 2014). It is also involves in environmental sustainability initiative. It has a program called Environmental Sustainability Policy that was established in 2009 to it achieve its water-reduction goals, energy efficiency and sustainable sourcing. It works closely with non-government organisations, the community as well as suppliers to ensure that they have sustainable services and products that meet the expectations of the consumers (Starwood Hotels and Resorts, 2014). The company has corporate social investment managers in each of its hotels who assist in developing and implementing sustainable programs such as support for cultural activities, recycling and engaging sustainable suppliers. Starwood Hotels and Resorts across different countries adhere to the environmental policies and health and safety codes in carrying out their operations in a manner that would protect its customers from any danger (Balmer, Fukukawa and Gray, 2008). It has adopted an environmental management system that supports the development of services and commodities that features low energy use within the company. Just like Hilton and Sangria-La, Starwood has adhered to legal laws that impact organisation operation and planning process for them to operate soundly. Since its inception, the company has been economically profitable. In making profit, the company add value to the economy (Balmer, Fukukawa and Gray, 2008). Starwood acts with transparency and offer enough information about its operation. It is therefore considered legal and economically responsible. Although Starwood Hotel and Resort has gain reputation due to its focus on sustainable work, there are so many weaknesses that it struggles with (Holcomb, Upchurch and Okumus, 2007). For instance, compared to Hilton Worldwide, the hotel is focussed too much on customers, which has made it forget about the needs of the employees. Although the hotel has tried to be socially responsible to the community, it has forgotten the responsibility it has on the employees (Balmer, Fukukawa and Gray, 2008). The company has no extensive health and safety program for its employees. Compared to Hilton and Sangria-La, the working condition of the employees is in the standard that is expected of a five-star hotel. Therefore, there is need for improvement in its social responsibility. CSR Checklist Companies Hilton Sangria-La Starwood CSR areas YES NO YES NO YES NO Customers √ √ √ Employees √ √ √ Environment √ √ √ Community √ √ √ Government √ √ √ Responsible Sourcing √ √ √ Legal √ √ √ Economic √ √ √ Conclusion In conclusion, from the three hospitality companies, we can see that corporate social responsibility has different meanings to different people. From the study, we can say that corporate social responsibility is good and necessary due to the benefits that come with it such as good reputation, enhanced performance and image. Hilton, Starwood and Sangria-La are known to be socially responsible to the environment, stakeholders, and community. However, each company has a number of elements that needs to be improved in order to be considered fully socially responsible. These companies should not demonstrate CSR only during periods of economic recession or for reputation purposes. They used perceive CSR as a means of improving the well-being of the society. CSR should do more than just charitable donations and energy management. There is wider range of CSR programmes that these hospitality companies should invest in, in order to ensure sustainable operation. Generally, responsible businesses extend further than just charity work, energy management and economic responsibility. All stakeholders should be included in CSR initiatives. References Balmer, M. T., Fukukawa, K & Gray, E. R 2007, The nature and management of ethical corporate identity: A commentary on corporate identity, corporate social responsibility and ethics. Journal of Business Ethics, 76(1), 7-15. Deale, C.S., Nichols, J & Jacques, P 2009, A descriptive study of sustainability education in the hospitality curriculum. Journal of Hospitality & Tourism Education, 21(4), 34-42. Dudovskiy, J 2016, Hilton Hotels CSR Programs and Initiatives. Retrieved 14th Dec 2016 from http://research-methodology.net/hilton-hotels-csr-programs-and-initiatives/ Holcomb, J. L., Upchurch, R. S & Okumus, F 2007, Corporate social responsibility: What are top hotel companies reporting? International Journal of Contemporary Hospitality Management, 19(6), 461-475. 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. McGehee, N.G., Wattanakamoichai, S., Perdue, R.R., & Calvert, E. O 2009, Corporate social responsibility within the U.S. lodging industry: An exploratory study. Journal of Hospitality & Tourism Research, 33(3), 417-437. Porter, M & Kramer, M 2006, Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92. Pryce, A.H 2001, Sustainability in the hotel industry. Travel and Tourism Analyst, Vol. 6, pp. 95-114. RLJ Lodging Trust 2015, Environmental, Corporate Social Responsibility and Governance Initiatives. Retrieved 14th Dec 2016 from http://rljlodgingtrust.com/jobpdfs/EnvirCorpSocialResGovPolicy.pdf Sangria-La Hotels and Resorts 2014, Corporate Social Responsibility: Luxury need not cost the earth. Retrieved 14th Dec 2016 from http://www.shangri-la.com/corporate/about-us/corporate-social-responsibility/sustainability/ Starwood Hotels & Resorts 2012, Global citizenship overview. Retrieved 14th Dec 2016 from http://www.starwoodhotels.com/corporate/about/citizenship/index.htm Starwood Hotels and Resorts 2014, Global Citizenship at Starwood. Retrieved 14th Dec 2016 from http://www.starwoodhotels.com/Media/PDF/Corporate/GC_Report_2014.pdf Read More