Concept of Corporate Social Responsibility and Sustainability Strategy in Hospitality Sector

RESEARCH PROJECT

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................3
Research Background.............................................................................................................3
Aim:........................................................................................................................................4
Objectives:..............................................................................................................................4
Research questions:................................................................................................................4
Significance:...........................................................................................................................4
Rational...................................................................................................................................5
CHAPTER 2: LITERATURE REVIEW ........................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
CHAPTER 4: DATA ANALYSIS................................................................................................13
CHAPTER 5: RECOMMENDATION & CONCLUSION...........................................................24
REFERENCES..............................................................................................................................26

TITLE: To identify the concept of corporate social responsibility and sustainability strategy - A
study on hospitality sector.
CHAPTER 1: INTRODUCTION
Research Background
Corporate social responsibility refers to such responsibility which is carried by business
in respect of attain the interest of customer towards their effective services. It is the duty of the
company to organise such procedure through which they can manage the interest of stakeholders,
employees and customer towards their services and also organise various charitable function. So
that they can contribute some amount of profits to society (Truong and Hall, 2017). Through this
procedure they can sustain their business for longer time period and also people contribute their
interest through managing the activities which is pertaining in society. Thus, through the
procedure of CSR it refers to committing the business for profits and also they retain the interest
of employees towards the work premises. By this procedure, they didn't harm the society through
the activities which they are following in respect for increasing their business. Their main motive
is to engage employees in such activity and also examined the needs of working as a team to
accomplish task in better way. The main relationship between the CSR and sustainability is that
sustainability indicates the future retention of the company which can be committed through
reusing the waste products or recycling the stored products to get better results (Runte, 2019). In
respect of CSR, they carries the sustainability in company by maintain the close relationship with
the stakeholders, society and other people who are engaged with the company (Sustainability and
CSR, 2019).
Present research is based upon the TUI group which is founded in 1923 and having the
headquarter in Germany. It carries to be one of the multinational travel and tourism sector in
which they carry the agencies which provides services to the traveller or hotels and also deal in
airlines business. They are engaged with around 70,000 employees carrying the business at large
scale and also considered to be the largest tourism business in world. By carrying one of the
renowned brand name in market, they generated the revenue of around €19,523.9 million. The
main reason of carrying such success in world is relating to using the CSR activities to engages
the interest of employees and customer in better way.

Aim:
To determines the concept of corporate social responsibility and sustainability strategy -
A study on TUI group.
Objectives:
 To develop understanding relating to corporate social responsibility.
 To identify the issues faced by company regarding preferring corporate social
responsibility and sustainability activities.
 To examine the factors which overcome the issue raised through corporate social
responsibility and sustainability activities.
 To provide recommendation to TUI group regarding preferring the best CSR and
sustainability activities to enhance the business at better scale.
Research questions:
1. How to develop understanding relating to corporate social responsibility in organisation?
2. What are the issues faced by company regarding preferring the corporate social
responsibility and sustainability activities?
3. What are the factors which results in overcoming the issue raised through corporate
social responsibility and sustainability activities?
Significance:
The main reason of choosing this topic is that due to changes in environment, company
are using various techniques to enhances the interest of employees and customer for longer term
retention. Thus, through this aspects it resulting in getting better understanding regarding the
procedure adapted by organisation to get better sustainability in business. As it is necessary that
sustainability occurs in business working. As through this aspects it reflect the overall
productivity of the business. Customer at the time of travelling prefers such company which
fulfil their needs and wants in better way either it can be through effective communication or by
reducing cost in saving any aspect which retain them for longer way. Thus, through this aspects
it results in conducting the better knowledges regarding the working of the TUI group and also
they enhances the employees interest in fulfilling and motivating them to bring better productive
results. In such manner, the major importance of conducting this research is relevant to
nourishing the mind and also bringing new and innovative ideas regarding conducting the

research. The another reason which motivates to conduct this research is to helps other authors
regarding gathering the information which is helpful for companies and government to bring
changes in their internal and external working. As various authors had already conduct the
research relevant to this topic, thus it finds useful in gathering more relevant information and
also using the previous information so that accurate results must be examined. Thus, by
conducting this research, the major benefits is to be enjoyed by TUI group as they came to know
various CSR activities and by this procedure they can easily track their competitors techniques to
productive results.
Rational
The reason of conducting their research relating to the topic of CSR and sustainability in
business reflect various aspects which is used to determined the actual working of the company.
The issue which is identified is relating to gathering the information which is related to CSR
activity. As there are various methods which is interpreted to enhances the interest of stakeholder
and also attract communities towards such polices which is imposed by company. Thus, issue
arises in respect of changes in environment condition. As customer mainly focus on bringing
new aspects through which they can save environment. Thus, issue arises in respect of adapting
the best techniques to attract the customer interest for longer time period. The main reason of
conducting this topic is that it helps other companies to prefers various techniques to enhances
the interest of customer and employees for sustaining their business for longer way. In respect of
CSR, it mainly guides many factors through which it increases the economy and also improve
the social condition of the country. The another main reason of conducting this research is that
due to changes in environment condition many new aspects are also innovated. Thus, there are
lot of new aspects which is to be identified in respect of preferring the CSR activity.

CHAPTER 2: LITERATURE REVIEW
Theme 1: Understanding of corporate social responsibility
According to Nieminen (2018) the CSR refers to the responsibility that is carried by
company in respect of not earning any profits but to attract customer through some social events
which is organised by the organisation. Through this activity they can also motivate their
employees to achieve targets and behave ethically at work premises. As its is necessary fro
every organisation to conduct the CSR activity so that inventors also take participate in group
activities and also attach with the company working (Corporate Social Responsibility, 2013).
Thus, through conducting CSR it refers to attracting the customer towards the social events
which is organised by the company and also they can participate in such activity which can fulfil
the needs of the company in better perspective.
Hamid and Isa (2017) argued that through organising social events, sometimes the
conflict arises in respect of culture differences. Thus, it is the responsibility of the company to
take care of the employees and customer at the time of conducting any social activity. In such
manner, they had to organises such events which involves the interest of every culture, as
company carries with large number of employees and thus they are engaged with different
culture. In such manner the issuer arises in respect of attracting all the culture towards such
events by bringing such innovation in CSR which sustain their interest towards such events for
longer time period.
De Grosbois (2016) stated that through conducting CSR it results in not only attracting
the employees towards their business but also bring some talent among them. As CSR mainly
represent conducting activity which is beneficial in respect of social, economic and
environmental aspects. Thus, through preferring CSR it often results in recruiting the employees
as employees are attracted if they find such companies which are organising such types of
activity (Font, Garay and Jones, 2016). For e.g. in case of TUI group they are engaged with large
number of employees carrying their business. They also involved in carrying CSR activity
which results in gaining profits as they deal in travel and tourism. Through this aspects they also
gain opportunity in respect of determining the needs and demands of the customer and also plan
the packages accordingly.
Farrington and et.al., (2017) criticised that through conducting CSR it mainly results in
facing huge expenses in respect of training cost or any other activity which is conducted to

involves the employees towards the work premises. As mainly company prefers this activity to
trained employees regarding the benefits to work as team. As various activity are to be examined
to employees to maintain their interest towards such activity which results in gaining advantages
and also influences other employees or companies to prefers such activity (Cha, Yi and Bagozzi,
2016). In such perspective, companies had to manage such activity in better way as it bring better
results. Usually it distract the work of employees and they are motivated and trained in wrong
direction which not contained the employees interest at work place.
Alvarado-Herrera and et.al., (2017) suggested that though CSR procedure, it result in
increasing the customer loyalty in work premises and also it increases the sales in company.
Through CSR, companies can directly reach to customer base and also marketing their products.
In this, customer involvement are also there as they share some amount of money in respect of
supporting the company through carrying their activity at large scale. Customer mainly support
such company which deal in any such events which improve the condition of society in any
perspective. On the contradictory to Su, Huang and Huang (2018) it examined that usually
companies prefers the wrong CSR procedure, as they manipulates the customer in respect of
contributing to society and indirectly engages in their own profits margin.
Theme 2: Issues faced by company regarding preferring corporate social responsibility and
sustainability activities
As per Lho Park and Yu (2019) the issue which is examined in respect of adapting the
CSR procedure is that they mainly attract the top talents person towards the jobs, this results in
distracting the interest of employees which are engaged in business. As through this aspects, the
employees which are retain in business for longer period also distract their interest towards
achieving the target in better perspective. Thus, it results in decreasing the productivity in
company and also their is lack of communication at work place which results in distracting the
employees interest (Lyons, 2016). As it is necessary for very company that their employees are
motivated toward the work and for that job security is one of the major aspects through which
they can retain and increase productivity at work place.
Leung and Snell (2017) interviewed that while preferring the CSR for maintaining
sustainability in business, the issue arises in respect of demanding the corporate disclosure which
is examined the company overall working strategy. As it requires the completes updation of the
company working and their project and targets which they achieved in the entire days. Usually

customer demand to disclose the company latest working in dealing in new and innovative
products, this is the major issue which is examined by the company while conducting CSR as if
they not fulfil the customer demand, it results in not fulfilling their needs and also it results in
lack of interest towards the company products (Pearce and et.al., 2018). For e.g. in case of TUI
group, by conducting CSR activity to customer results in demanding the company strategies
regarding bringing new packages or dealing in any new project in airlines. As TUI group mainly
own five airlines of Europe and also for enhancing the employees towards the work places, they
mainly adapt the CSR activity to attract them.
Kasliwal and Agarwal (2019) examined that in respect of conducting the CSR activity,
the major participation is resulting to the government and through their innovative ideas,
guidance and norms, the company duty is to be worked under such norms. Thus, the issue which
is raised through CSR is resulting to shrinking the role and involvement of the government in
such activity. As government is takings strict action in respect of companies not conducting the
CSR in right manner. On the other hand the another issue is examined in respect of enhancing
the employees through increasing their pay scale and post in company. As by conducting CSR,
the expectation of the employees are increased by getting more knowledges and experiences
regarding the particular field. Thus, it results in distracting their interest towards receiving the
nominal pay checks.
Theme 3: Factors relating to overcome the issue raised through corporate social responsibility
and sustainability activities
Ram (2018) interviewed that to overcome from such issue which is faced in respect of
involvement of government and imposing strict norms resulting to be overcome in respect of
encouraging the green concept at work premises. As government usually support such companies
which carry their business through promoting the greenery at work place and also to take care of
the environment (Nguyen and et.al., 2018). Government not impose barriers on any such
company which promote such concept and motivated other company to prefers such procedure to
protect environment from such pollution. Through this aspect, they also attract the customer
towards such services which they are offering and also involves their participation in enhancing
such activity.
Trendafiova, Ziakas and Sparvero (2017) suggested that trust is the major aspects which
is to be developed in respect of involving employees in major decision making. By this