Importance of Corporate Social Responsibility in Hospitality Industry

This report discusses the effectiveness of CSR in accomplishing organizational goals in the hospitality industry. It highlights some effective approaches by which companies can make themselves sustainable.

Importance of corporate social
Responsibility
MODULE TITLE: Contemporary Issues in International Hospitality
Management
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Executive summary
Corporate social responsibility can be defined as a process of performing functions
in a manner so that companies can satisfy environmental needs without hurting the
needs of the future generation. Purpose of this report is knowing effectiveness of
CSR in accomplishing organizational goals. It discusses some effective approaches
by which companies can make themselves sustainable.

TABLE OF CONTENT
Executive summary.....................................................................................................................2
1. INTRODUCTION.......................................................................................................................4
1.1 Scope......................................................................................................................................4
1.2 Purpose..................................................................................................................................4
1.3 Background............................................................................................................................4
1.4 Key terms...............................................................................................................................4
2. DISCUSSION..............................................................................................................................4
2.1 What is meant by the term sustainability in hospitality businesses:......................................4
2.1.1 Sustainability......................................................................................................................4
2.2 Approaches to make hospitality organisations sustainable...................................................6
3. ANALYSIS..................................................................................................................................7
3.1 Potential sustainability initiatives and practices that hospitality organisations need to adopt
.....................................................................................................................................................7
4. RECOMMENDATIONS.............................................................................................................9
4.1 Recommendations for improving operational sustainability.................................................9
5. CONCLUSION..........................................................................................................................10
REFERENCES................................................................................................................................1

1. INTRODUCTION
Corporate social responsibility is an effective concept according to which companies have
responsibility to do good or perform activities in an ethical manner Agudelo, Jóhannsdóttir &
Davídsdóttir, (2019). There are number of effective sustainable practices that can make able to
companies in improving image in the market, retaining customers’ and increasing productivity.
Some practices that can help out companies in making their business sustainable include:
training to employees, motivation to employees and reducing waste by implementing effective
operational management approaches.
1.1 Scope
This study has wide scope as it can help out companies at commercial level and they can help out
the world by making themselves sustainable.
1.2 Purpose
Purpose of conducting this present study is to discuss effectiveness of sustainability in
organisational success and improved performance.
1.3 Background
It will further discuss effective approaches of sustainability such as: implementation of total
quality management approach, land-filling, reusing, recycling and improving supply chain. All
these approaches and practices make able to companies in improving overall performance,
attracting customers and taking competitive advantages. It will further discuss some additional
ways that should be used by companies in order to make they sustainable such as: providing
training to employees, encouraging volunteer ism and others.
1.4 Key terms
CSR, approaches to CSR, sustainability, environmental impact
2. DISCUSSION
2.1 What is meant by the term sustainability in hospitality businesses:
Sustainability is one of the most common but important term which highlight importance
of nature and significance of maintaining environment Nishant, Kennedy & Corbett (2020). It is
very clear that every business organization is moving towards betterment of the environment
which not only allow them to become more stable but this help them to attract consumer who
demand sustainability in their product and service.

2.1.1 Sustainability
Sustainability simply means using eco-friendly products that provide less impact on nature,
hospitality industry is one those industries who continuous processing to become sustainable
Thiele, (2016). Hotels trying to reduce impact on environment through practising certain
important things such as waste management, using renewable energy, reducing use of water and
many other things that focus on sustainability. Every hotel business need right leadership that
help them to drive mindful thoughts that can increase efficiency, there are certain practice that
hotel can adapt to maintain sustainability, these are:
Conserving energy: every hotel business is focusing on generating renewable energy
with different source for example through solar panel. There are hotels who planted solar panels
on the top of their roof which directly generate enough electricity to fulfil demand of hotel
appliance. Depending on budget of hotel, solar panel can be beneficial in reducing electricity
cost and mainly allow hotel reduce impact on nature. Energy consumption is very high in hotel
business because every hotel room have more than ten devices that run on electricity Eco
Friendly 10 Sustainable Hotel Practices, (2021). Using solar panel allow hotel to focus on
sustainability and reduce cost that occur in electricity bills.
Reducing waste: reducing waste simply means proper waste management system that
allow hotel to not only reduce waste but help them to manage sustainability in their process.
Hospitality industry have sustainable carbon footprint, from tourism to restaurant every business
impact nature in some or other way Ives & et.al. (2018). It is very clear that hotel produce waste
like, toiletries, cleaning products and food and fragrances. Hotels can choose organic products
that can easily recycle and allow hotel to reduce budget of purchasing these products as well.
Note; hygiene become major issue for every hotel business because reusing products may impact
guest retention. Hotels need to use those products which can Lesley impact nature and its
process.
Organic amenities: organic amenities mean those products which easily can be
degradable, hotel need to use those products which can be used twice and have ability to
decompose after usage. Every hotel business is trying to avoid nature harming products for
example use of chemical for cleaning of wash room. It is very clear that when hotel focus on
arranging organic produce then they will reach local supplier who will provide requirement
supply to business, this way hotel can fulfil need of supplier and requirement of sustainability as

well. Organic amenities have ability to attract guest, people who demand organic cleaning
product looks for both hotels who fulfil this need. Hotel have the best opportunity to grab those
guest who adopt sustainability Toland & Guidera, (2017).
2.2 Approaches to make hospitality organisations sustainable
In regard to sustainability, it can be said that it has become important for hospitality sector
to make they sustainable. It is an ability to decrease waste and operating business in a manner
that can satisfy needs of current generation without affecting the needs of the future generation.
Nowadays, people have become environmental and health conscious. They prefer to buy
products from companies that promote sustainability or use sustainability approaches. There are
number of organisations in hospitality sector that have committed to decrease waste and
becoming zero emission of company. Unilever, Hilton, Marriott are some examples that have
adapted sustainability approaches. Some common ways or sustainable approaches include:
Decreasing waste: Organisations in hospitality sector has numerous opportunities to
decrease waste. Hilton and Marriott are best examples that have decreased food waste to the
great extent. They track and identify as how much food wastes are being produced by their
activities and why it is increasing Verma & Chandra, (2018). By controlling and monitoring,
they ensured fresher products. There are number of companies that are adapting food donation
policy and as per this policy, they give unused food to the local kitchen or to those people who
cannot afford daily food. It helps them out in decreasing food waste and becoming sustainable.
Reuse and recycle: It is other effective environmental approach according to which
companies are using those materials that can be reused or recycled. It is found that recycle can
also produce waste but reuse can be the best for hospitality sector. There are number of resources
that can be used by hospitality sector and customers such as: jars from grocery stores. Using
cotton bag for food packaging is also one of the best way of making companies sustainable.
Total quality management: It is found that Nigerian companies are facing number of
challenges related to waste and sustainability. They have poorly controlled open dumps and
illegal roadside dumping remains a major problem. This environmental issue is affecting overall
performance and image of companies in the market Konovalova & et.al. (2018). Now,
hospitality sector has adopted sustainable practices and implementation of total quality
management approach is one of them. Continuous improvement as well as zero defect call are

apt solutions to waste management. This approach guarantees waste management and high
quality of products. This approach has some principles and by considering all principles of TQM,
hospitality sector can improve overall quality of their products and can decrease waste.
Land filling: It is also an effective sustainable approach by which waste is being disposed.
Landfilling is a sustainable practice. Large organisations use incineration, flaring and burying.
Whereas, small companies focus on reuse as landfilling, open dumping and backfill. In addition,
it is also found that collection, recycling and recovery are focus area for decreasing
environmental impacts. Companies are trying to set up recycling infrastructure in order to
encourage their customers to recycle their bottles establishing a post-consumer PET recycling
project.
So, on the basis of above discussed approaches of sustainability, it can be said that
companies can make themselves sustainable and can attract customers for buying products. It can
also help them out in increasing productivity, image and taking competitive advantages. By
encouraging customers to use reusable coffee cups and having BYO containers at place, hotels
and other organisations in hospitality sector can make themselves sustainable and can become
market leader as well Smit & Melissen, (2018). It can help out companies in retaining employees
with business for the long run and increasing awareness about environmental protection.
3. ANALYSIS
3.1 Potential sustainability initiatives and practices that hospitality organisations need to adopt
Increasing vegetarian options on the menu: Between 2012-2018, the number of global
adults specifically Australian adults whose diet is almost vegetarian, rose from 2.7 million
people to almost 3.7 million people. It is being stated that by decreasing or not eating meat, is
one of the best and effective ways that person can do to decrease their carbon footprint.
Increasing vegetarian options in food menu, restaurants, hotels, local cafes and other hospitality
sector of organisations can decrease the venue’s own carbon footprint and can expand venue’s
customers’ base.
Paperless approach: WHO has initiated and developed number pf practices for companies
in order to make them sustainable. Companies in Nigeria are striving hard for attracting and
retaining customers. One of the main reason behind this problem is: changing needs and
requirements of people. People have become educated and they know the importance of
sustainability and they are ready to pay high but in return of this, they seek for high quality of

products from those companies that use sustainable approaches and practices Sharma, Chen &
Liu, (2020). As per this approach, companies are taking number of measures such as: server
virtualisation, digital transformation, video conferencing, digital signature and others. Usage of
papers have been decreased to the great extent and it is one of the effective sustainable initiative
that has been taken by hospitality organisations.
Empowering supply chain: It is other effective ways and ethical practice by which
companies of hospitality sector are making themselves sustainable. It is believed that success of
companies depends heavily on suppliers and supply chain because they are the one who provide
qualitative and effective raw materials. For producing final and qualitative products, employers
need qualitative and organic raw materials. So, for this purpose, companies are focusing on
improving relations with their suppliers and buying qualitative raw materials at affordable prices.
It is also important for employers to make sure that suppliers abide all rules of fair labour
practices and fair trade agreement. By ensuring this, companies are decreasing social footprint
Balaji, M. S., Jiang & Jha, (2019). Along with this, companies can decrease consumption of
natural resources by changing packaging and streamlining manufacturing process to decrease
plastic waste.
Using technology: There are number of technologies that can be used by companies for
becoming paperless and sustainable. For example: installing smart sensor within facilities, they
can make them sure that cooling, heating and electricity are automatically shut off when it is not
required. It is one of the best ways of protecting natural resources for the future generation and
becoming sustainable. By moving production of physical goods closer to customers, companies
can decrease transport related emission. On site solar installation can also allow employers to
replace some electrical needs Singjai, Winata & Kummer, (2018).
Along with this, hotels can make contemporary plastic key cards that are made from
polyvinyl chloride based plastic. It is a part of highly toxic manufacturing process> There are
number of hotel companies that are shifting to card options that are made from wood, paper and
bioplastic. By preparing key cards from these materials, they can become environmental
sustainable and can make their products durable.
Along with these practices there are number of other practices that might also be used by
hospitality sector of Nigeria such as: corn-starch packaging, bio degradable packaging peanuts,
organic fabrics and recycled paper as well as cardboards Al-Tayyar, Youssef & Al-Hindi,

(2020). The key thing that need to be remembered while packaging is to use the smallest amount
of packaging possible and considering the products as whether it is breakable. How big is it? Can
it be reduced down in anyway? All these factors can make companies able in making companies
sustainable and making them able in becoming the market leader.
4. RECOMMENDATIONS
4.1 Recommendations for improving operational sustainability
On the basis of above discussed approaches and initiatives, it can clearly be said that
hospitality sector of Nigeria is striving hard for becoming sustainable. There are number of
effective approaches that have been adapted by Hilton, Marriott and other organisations in
hospitality sector. Number of companies has decreased waste to the great extent. Along with this,
there are number of ways that should be used by companies for decreasing waste and improving
quality of products. Some common and effective ways of making companies sustainable include:
Training and educational programs for employees: Employees are considered as one of
the most important resources of companies as they are the one who perform number of
organisational activities. There are number of reasons as why companies need to educate their
employees as it increases buy in throughout the organisational chart, make it less likely that
employers will slip back into old ways. When employers train their employees then employees
are more likely to become aware about sustainability and they are more likely to improve their
performance. It makes employees feel valued as it makes them feel that company take cares of
their values and their needs and want them to grow Raut & et.al. (2019). Motivated and trained
employees can implement total quality management approach in an effective manner and can
improve overall process of production as well as manufacturing. So, on the basis of this, it can be
said that by conducting training session and developing awareness program, companies can
become sustainable.
Encourage volunteerism: It is another effective way of involving employees in
sustainability process. There are number of ways by which employers can pursue to achieve this
goal such as: providing paid time off who wish to volunteer and it is known as volunteer time
off. As like this, companies can consider organising a companywide volunteer day of giving
where employees should be encouraged to volunteer at local charities.
Using organic amenities: On the basis of statistical data, it is found that tourism at a global
level is responsible for 8% of carbon emission and it is causing changes in climate as well as

rising sea levels. By switching to organic from chemical, companies of hospitality sector can
demonstrate a commitment to sustainability. Organic amenities include products that made of
from natural ingredients and with no harsh chemicals Mardani & et.al. (2020). There are number
of examples of such products that can easily be used by hotels, tourism companies and others
such as: hotel toiletries, food and fragrance and cleaning supplies. Along with this, companies
can use products that come in recyclable packaging.
Along with this, companies can do environmental audit as it can help them out in
knowing their current position within market and business. By comparing their waste data with
global waste data, they can know areas where they need to improve more. Overall, it can be said
that by using all these approaches and sustainable suggested practices, hospitality industry of
Nigeria can become sustainable. It can become the market leader by taking competitive
advantages and increasing employees' retention rate.
5. CONCLUSION
It has been summarised from the above study that sustainability plays a vital role as it can
help out companies in attracting as well as retaining customers within business for the long run.
This study has discussed different approaches of sustainability that can be implemented or used
by organisations of hospitality sector. Some effective sustainable approaches that have been
discussed in above study include: Reuse, recycle products, implementation of total quality
management approach and land filling. Further, this study has discussed sustainability practices
that have been adapted by hospitality sector and that has made them able in becoming successful.
It has suggested some other effective ways by which companies can improve quality of products
by decreasing waste.

REFERENCES
Books and journals
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Al-Tayyar, N.A., Youssef, A.M. & Al-Hindi, R. (2020). Antimicrobial food packaging based on
sustainable Bio-based materials for reducing foodborne Pathogens: A review. Food
chemistry. 310. p.125915.
Balaji, M. S., Jiang, Y., & Jha, S. (2019). Green hotel adoption: a personal choice or social
pressure?. International Journal of Contemporary Hospitality Management.
Ives & et.al. (2018). Reconnecting with nature for sustainability. Sustainability science, 13(5),
pp.1389-1397.
Konovalova, E. E., Yudina, E. V., Bushueva, I. V., Uhina, T. V., & Lebedev, K. A. E. (2018).
Forming approaches to strategic management and development of tourism and
hospitality industry in the regions. Journal of Environmental Management &
Tourism. 9(2 (26)). 241-247.
Mardani, A., Kannan, D., Hooker, R. E., Ozkul, S., Alrasheedi, M., & Tirkolaee, E. B. (2020).
Evaluation of green and sustainable supply chain management using structural equation
modelling: A systematic review of the state of the art literature and recommendations
for future research. Journal of cleaner production, 249, 119383.
Nishant, R., Kennedy, M. & Corbett, J. (2020). Artificial intelligence for sustainability:
Challenges, opportunities, and a research agenda. International Journal of Information
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Raut, R. D. & et.al. (2019). Linking big data analytics and operational sustainability practices for
sustainable business management. Journal of cleaner production, 224, 10-24.
Sharma, T., Chen, J., & Liu, W. Y. (2020). Eco-innovation in hospitality research (1998-2018): a
systematic review. International Journal of Contemporary Hospitality Management.
Singjai, K., Winata, L., & Kummer, T. F. (2018). Green initiatives and their competitive
advantage for the hotel industry in developing countries. International Journal of
Hospitality Management, 75, 131-143.
Smit, B., & Melissen, F. (2018). Sustainable customer experience design: Co-creating
experiences in events, tourism and hospitality. Routledge.
Thiele, L.P. (2016). Sustainability. John Wiley & Sons.
Toland, L. & Guidera, J. (2017). Sustainability.
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