Environmental Assignment - Coursework Example

Corporate social responsibility is integral to the long-term success of five-star hotels Name Institution Course Date Executive summary Since the Brundtland commission, on common future and sustainable development, Rio earth summit, the growth of the concept of corporate social responsibility and international certification systems, companies have to advance programs in relation to quality, safety, health and environmental management systems. The single aim is to ensure sustainable development in the production and utilization of natural resources. This report show why there is need for five-star hotels to adopt the concept of Community Social Responsibility through sustainability reporting for their long term success. In order to address this overriding theme, the report tackles areas such as reasons why organisations are adopting sustainability report. This is done through stating of the benefits derived from this concept. The report is divided into six main sub sections. The first section examines the concept of community social responsibility (CSR). This chapter looks at the brief historical growth, various definitions provided and justification for CSR. The second sub section explores sustainability reporting as an example of CSR. In this section, CSR is seen in terms of voluntary reporting on the impact organisations have on the environment and how they are attempting to mitigate them. Moreover, the section sees responsibility of hotels towards the environment as the most prominent aspect. The third section indicates the benefits that an organisation is likely to reap out of engaging in CSR especially sustainability reporting. Moreover, this segment notes that CSR is not about philanthropy but a need. The fourth section analyses the most common reporting format that is utilised in Australia that other willing organisations can adopt and then domesticate. The last two sub sections covers conclusion where the report notes that it is fundamental for organisations to engage in CSR as it shows the value that firms attach to the host community for giving them that chance to operate within them. This is a normative approach to doing business. The last section offers recommendations in line with sustainability reporting. The two recommendations are on starting points and the need for standardised approach in CSR. Table of Contents Executive summary 2 Table of Contents 3 1.0 Introduction 4 2.0 The Concept of Community Social Responsibility 4 3.0 Sustainability Reporting as a CSR 6 4.0 Benefits of Sustainability Reporting as a CSR 7 5.0 Sustainability Reporting Formats for Achieving CSR 8 6.0 Conclusion 9 7.0 Recommendations 9 Bibliography 11 1.0 Introduction Corporate social responsibility is a wide area and a topic of contention depending on ones views (Moir, 2001, p. 2). The benefit of it all is that it enhances the reputation of an organisation at internal and external level as a result of their social role in the society (Moir, 2001, p.3). Globally, there is the realization that firms can not only base their performance on profits recouped alone (Geraghty, 2010, p.141). Ethical approaches to doing business have over the years gained a paramount position. Moreover, Kantian ethics demand that human beings engage in what are morally upright and ought to be upheld. Moreover, it has been established that the long run survival of human being and all business is tied to how well human beings conserve their environment. Corporate social responsibility (CSR) forms a level of appreciation by business organizations for being given opportunity by the host community to conduct business amongst them by drawing resource from their community. One unique kind of CSR is sustainability reporting by firms (Aras and Crowther, 2008, p. 279 and 280). This report outlines why corporate social responsibility is integral to the long-term success of five-star hotels. The report specifically examines the importance of sustainability reporting as a new form of CSR. 2.0 The Concept of Community Social Responsibility According to world travel and tourism council (n.d, p. 4), CSR is not about philanthropy. However, it is recognition by firms that their responsibility goes beyond provision of goods/ services, employment and payment of taxes. CSR is all about delivering sustainable value to the community at large. Moir (2001) outlines the theories that support the need for firms like 5 star hotels in Australia to engage in CSR. In one instance (2001, p. 10), she note that society is built through social contracts. These contracts outline expectations for each component of the society including business organisations. The other is the legitimacy theory. In this logical construct she builds an argument that there are desirable traits within which an entity has to operate in. As noted earlier by Moir (2001, p. 1, 2 and 3) CSR is the firms involvement in social roles which are not for economic gain. This is an involvement out of the normal business competition. Indeed Nelson (2004, p. 4) place the context of CSR in more expansive and emphatic manners. She notes it is about addressing the way in which firms manage their economic, social and environmental impact and stakeholder relationship in all key sphere of influence. Werhane (2010, p. 695 and 696) notes that there are numerous propositions by different players in the field of corporate responsibility. She notes that in earlier years of 1990s there was no standard guidelines developed to aid multi international and local companies on how to adopt corporate social responsibilities. However, she notes with time, numerous guidelines have been developed by numerous institutions so as to inform companies interested in the concept of corporate responsibility. There are numerous guidelines for CSR which are related to ethical environmental utilization that can be used by 5 star hotels in Australia. Werhane (2010, p. 696) conducts analysis gives two sets of guidelines. The first she is the Global Economic Ethic (GEE). The second is the United Nations Global Compact (UNCG). The reason for these choices is because these standards are clearly articulated and do not tolerate much leeway for discretion. She notes that article 3 of GEE posits that one of the company’s duties is to promote good and avoid evil. Further she notes that the other duty in this standard as articulated in article five is to avoid the impairment of people’s health through adverse working conditions. Lastly in her examination, she notes that article six advocates for sustainable treatment of the natural environment and avoidance of waste. 3.0 Sustainability Reporting as a CSR Hotel sector has a lot of impact on the environment. The greatest responsibility that an organisation can have towards the society is by preserving what anchors their life. Since the realization, of human interdependence on environment, the nexus of safety and environmental management has had a phenomenal growth and application in the hotel industry. In order to guarantee customer need in a social conscious framework, the hotel sector in Australia should aim at continual improvement through sustainability reporting and quality, safety, health and environment (QSHE). Moreover, the environment perspective of sustainability has been a case for reaction. Sustainability calls for utilization of earth resources with the future generation in consideration. Sustainable development thus focuses on creating a balance between human economic need, social need and environmental need (Hubbard, 2011, p.824 and 825). Therefore, firms as one of the main users or earthly resources are encouraged to be proactive in this agenda. Nature if not well treated is unforgiving. This lies on what we withdraw and what we inject in the environment. Basically speaking, the performance of any economic sector is directly or indirectly tied to the environmental situations. Thus, the performance of firms even if not present is tied to the environmental situation. Hence, there is need to conserve it (Aras and Crowther, 2008, p.281). The adoption of the sustainability reporting by a firm is a true indication of how they value the physical environment they operate in, and which forms and dictate their future existence. Sustainability reporting shows the level of commitment that a company has towards social responsibility. In addition it offers a platform for benchmarking (Geraghty, 2010, p.142). Ecological principles prove that existence of human being is tied to nature. What more responsibility can customers and the whole public or even the whole world as from a firm more than being responsible to our only mother planet. In addition the sustainability is a growing trend globally and in Australia (Geraghty, 2010, p.142 and 143). 4.0 Benefits of Sustainability Reporting as a CSR The concept of sustainability reporting has continually developed over the last 12 years becoming a norm rather than exception in mainstreaming ethical practices into business operations. In Australia, it has been reported that approximately 66 % of firms engage in sustainability reporting (Geraghty, 2010, p.141, 142 and 143). This makes the hotel industry a no exception. The greatest benefit of sustainability reporting is the protection of environment from degradation as a result of firm’s economic activities. However, there are other accompanying benefits that results from this noble corporate social responsibility (CSR). The chief benefit is brand value. Firms are able to ride on the good reputation they have created amongst their environmentally conscious clients (Geraghty, 2010, p.143). There are wide areas to be utilised in sustainability reporting especially by the 5 star hotels that peg their operations on tourism and nature for their business. One aspect is the conscious use of water in their premises. According to Alonso and Ogle (2010, p. 819 and 820), Australia is classified as one of the driest continents. This calls for wise utilisation of water. The other areas that hotels can major in are protection of natural ecosystem if they are based inside parks, along beach or ecologically fragile areas, tree planting, energy management, waste management, reduction of activities that contribute to global warming (World Travel and Tourism Council, n.d, p. 9 -12). 5.0 Sustainability Reporting Formats for Achieving CSR According to global reporting initiative GRI (2006) cited in Hubbard (2011, p.826), global reporting initiative (GRI) has been the most preferred reporting format globally. KPMG (2008) cited in Hubbard (2011, p.826) reports that 77% of the global 250 and 69% of the N100 uses GRI. This makes it a global standard for large organizations. However, the difficulty is noted in the concepts and sub categories to be reported on. In order to ensure balance representation, organization’s purpose and experience, and reasonable expectations and interest of stakeholders are considered. The report covers indicators on firm’s economic, environmental, and social impacts. This address the concept of materiality which relates to factors that influence decision of stake holders. Finally the report identifies stakeholders and their interests thus addressing the concern of stakeholder inclusiveness (Geraghty, 2010, p.144). Geraghty (2010, p.145) identify five important steps in formulation of GRI. The first step entails preparation. It aims at promoting internal discussion especially at management level. In addition, it identifies the obvious positive and negative economic, environmental and social impacts. The second step relates to connection. This covers consultation of stakeholders about their input into the process. The third step covers aspect of stakeholder input definition as identified in the second step. The fourth step covers aspects of monitoring. It gathers data that will go into final report. It is done in relation to GRI indicators. The final step revolves around communication. What has been done in the earlier phase and documented are finally communicated in the best way possible. 6.0 Conclusion It is fundamental for all companies to engage in safety and environmental management programs irrespective of government supervision. This forms one of the core callings of ethical practices in business and proper utilization of natural resources in a sustainable manner. The application of this concept is a bonus, as it shows the respect a company has for the present generation and future one. 7.0 Recommendations The main reason that sustainability reporting should be encouraged at all level of firms is that it shows the degree of commitment by various forms on prevention of environmental degradation (Aras and Crowther, 2008, p. 279 and 280). The basic starting point for starters is the adoptions of the principle of reduce, recycle and reuse. In the next level that companies should adopt is the utilization of environmental impact assessment (EIA) and auditing (EU). This would ensure that firms operate as stipulated in their environmental management program (EPM). In addition, development of internal control mechanisms such as safety health and environment (SHE) or occupational safety and health (OSHA) should be voluntarily initiated by firms. The annual reviews and findings should be made public. Apart from the later, during review, the comments from public and peers should be encouraged (Hubbard, 2011, p.825; Isenmann, Bey and Welter, 2007, p.489). An information/reporting system only becomes useful if only it is acceptable across board by all stakeholders. Stakeholders in environmental sustainability for the case corporate sustainability disclosure/reporting are government, the public, company shareholders and the management. Isenmann, Bey and Welter (2007, p.489 and 490) offers a valuable platform for reporting whether through online or in traditional reporting format. The first important observation is that the any form of reporting should be focussed towards a more public procedure. The second is that it should be a customized approach. Finally, the report should encompass component of dialogue with the stake holders. According to Hubbard (2011, p.825, 826 and 827) there are numerous reporting formats such as eco management and audit schemes, holistic sustainability framework, balanced score card and GRI. He observes that GRI has had high level of acceptability and thus recommended. Bibliography Alonso, A. D. and Ogle, A. 2004, Tourism and hospitality small and medium enterprises and environmental sustainability. Management research review, vol. 33, no. 8, pp. 818-826 Aras, G. and Crowther, D. 2009, Corporate sustainability reporting: a study in disingenuity. Journal of Business Ethics. 87, pp. 279-288. Geraghty, L. 2010, Sustainability reporting - measure to manage, manage to change. Keeping Good Companies, no. 3. pp 141-145. Hubbard, G. 2011, The quality of sustainability reports of large international companies: an analysis. International Journal of Management, vol. 28, no. 3, part 2. Isenmann, R., Bey, C. and Welter, M. 2007, Online reporting for sustainability issues. Business Strategy and the Environment, vol. 16, pp. 487-501 Moir, L. 2001, What do we mean by corporate social responsibility? Corporate governance, vol. 1, Issue No. 2, pp 16-22 Nelson, J. 2004, “Leadership, accountability and partnership: critical trends and issues in corporate social responsibility.” Report of the CSR initiative launch event. Corporate social responsibility initiative, report No. 1. Cambridge, MA: John F. KENNEDY School of Government, Harvard University. Ortas, E. and Moneva, J. M. 2011, Origins and development of sustainability reporting: analysis of the Latin America context. GCG, vol. 5. no. 2. ISSN: 1988-7116, pp. 16-37 Werhane, P. H. 2010, Principles and Practices for Corporate Responsibility. Business Ethics Quarterly 20:4 (October 2010); ISSN 1052-150X, pp. 695-701 World Travel and Tourism Council n.d. corporate social leadership in travel and tourism. Read More

As noted earlier by Moir (2001, p. 1, 2 and 3) CSR is the firms involvement in social roles which are not for economic gain. This is an involvement out of the normal business competition. Indeed Nelson (2004, p. 4) place the context of CSR in more expansive and emphatic manners. She notes it is about addressing the way in which firms manage their economic, social and environmental impact and stakeholder relationship in all key sphere of influence. Werhane (2010, p. 695 and 696) notes that there are numerous propositions by different players in the field of corporate responsibility.

She notes that in earlier years of 1990s there was no standard guidelines developed to aid multi international and local companies on how to adopt corporate social responsibilities. However, she notes with time, numerous guidelines have been developed by numerous institutions so as to inform companies interested in the concept of corporate responsibility. There are numerous guidelines for CSR which are related to ethical environmental utilization that can be used by 5 star hotels in Australia.

Werhane (2010, p. 696) conducts analysis gives two sets of guidelines. The first she is the Global Economic Ethic (GEE). The second is the United Nations Global Compact (UNCG). The reason for these choices is because these standards are clearly articulated and do not tolerate much leeway for discretion. She notes that article 3 of GEE posits that one of the company’s duties is to promote good and avoid evil. Further she notes that the other duty in this standard as articulated in article five is to avoid the impairment of people’s health through adverse working conditions.

Lastly in her examination, she notes that article six advocates for sustainable treatment of the natural environment and avoidance of waste. 3.0 Sustainability Reporting as a CSR Hotel sector has a lot of impact on the environment. The greatest responsibility that an organisation can have towards the society is by preserving what anchors their life. Since the realization, of human interdependence on environment, the nexus of safety and environmental management has had a phenomenal growth and application in the hotel industry.

In order to guarantee customer need in a social conscious framework, the hotel sector in Australia should aim at continual improvement through sustainability reporting and quality, safety, health and environment (QSHE). Moreover, the environment perspective of sustainability has been a case for reaction. Sustainability calls for utilization of earth resources with the future generation in consideration. Sustainable development thus focuses on creating a balance between human economic need, social need and environmental need (Hubbard, 2011, p.

824 and 825). Therefore, firms as one of the main users or earthly resources are encouraged to be proactive in this agenda. Nature if not well treated is unforgiving. This lies on what we withdraw and what we inject in the environment. Basically speaking, the performance of any economic sector is directly or indirectly tied to the environmental situations. Thus, the performance of firms even if not present is tied to the environmental situation. Hence, there is need to conserve it (Aras and Crowther, 2008, p.281). The adoption of the sustainability reporting by a firm is a true indication of how they value the physical environment they operate in, and which forms and dictate their future existence.

Sustainability reporting shows the level of commitment that a company has towards social responsibility. In addition it offers a platform for benchmarking (Geraghty, 2010, p.142). Ecological principles prove that existence of human being is tied to nature. What more responsibility can customers and the whole public or even the whole world as from a firm more than being responsible to our only mother planet. In addition the sustainability is a growing trend globally and in Australia (Geraghty, 2010, p.

142 and 143). 4.0 Benefits of Sustainability Reporting as a CSR The concept of sustainability reporting has continually developed over the last 12 years becoming a norm rather than exception in mainstreaming ethical practices into business operations.

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