Importance of Corporate Social Responsibility in Hospitality Business

This report explains the concept of sustainability in relation to the hospitality business and how hospitality organizations can improve the sustainability of their business operations. It also includes potential sustainability initiatives and approaches to make hospitality business more sustainable and recommendations for improving operational sustainability in existing and new build hospitality properties.

Importance of
Corporate Social
responsibility

Table of Contents
Executive Summary.........................................................................................................................3
1.INTRODUCTION .......................................................................................................................3
1.1 Scope................................................................................................................................3
1.2 Purpose.............................................................................................................................3
1.3 Background ......................................................................................................................3
1.4 Key Terms .......................................................................................................................4
MAIN BODY...................................................................................................................................4
2 Explanation of the concept of sustainability in hospitality business and importance of
improving the sustainability of business operations in hospitality organisations..................4
2.1 Sustainability .............................................................................................................................4
2.2 CSR ...........................................................................................................................................4
3 Potential sustainability initiatives and approaches to make hospitality business more
sustainable..............................................................................................................................6
3.1 Initiatives and approaches .........................................................................................................6
3.2 Range of potential sustainability initiatives and practices adopted by the hospitality
organisations...........................................................................................................................7
4. Recommendations for improving operational sustainability, existing hospitality properties
and in new build hospitality properties..................................................................................9
5. CONCLUSION..........................................................................................................................11
REFERENCES .............................................................................................................................12

Executive Summary
Corporate Social responsibility basically considered as a business model that involves policies
and practices which are carry out by the various corporations for the purpose to create a positive
impact on the world. It basically involves the main idea behind the CSR for corporations that
helps in pursue other pro-social aims and also helps in increasing profits.

1.INTRODUCTION
1.1 Scope
Corporate Social Responsibility is basically considered as the form of international
private business self regulation that basically focuses on contributing towards the goals of the
society of a charitable nature, philanthropic and activist with supporting and engaging in a
volunteering or ethically oriented practices (Ko,Chan and Wong., 2019).
1.2 Purpose
In this report it involves detail explanation about the concept of sustainability in relation
to the hospitality business and involves how the hospitality organisations can improve the
sustainability of their business operations (Latif, Pérez and Sahibzada., 2020).
1.3 Background
It involves potential approaches for the purpose to make the hospitality businesses more
sustainable. In addition to that it involves the identification and evaluation of the range of
potential sustainability practices and initiatives that could be adopted by the hospitality
organisations. Furthermore, it involves recommendations in order to improve the operational
sustainability and involves existing hospitality properties and new build hospitality properties
(Justine.,2021).
1.4 Key Terms
CSR, sustainable strategies, Sustainability and environmental management
MAIN BODY
2 Explanation of the concept of sustainability in hospitality business and importance of
improving the sustainability of business operations in hospitality organisations
2.1 Sustainability
The concept of sustainability basically involves the concept of broad policy in context to
the global public discourse that basically involves the three main pillars that consists of social,
environmental and economic(Csillag, Gyori and Matolay, 2018).From many years, it has been

observed that the various organisations and companies are now focusing on implementing more
and better innovative practices which helps in providing benefits to the organisation and which
also helps the planet (The impact of hotel CSR for strategic philanthropy on booking behaviour
and hotel performance during the COVID-19 pandemic, 2021). With more public getting aware
about the concept of sustainability there has been a increase in pressure on the tourism and travel
companies and in support to that organisations involved in hospitality sector are now focusing on
implementing innovative practices for the purpose to provide benefits to the organisation and
also ensures that the consumers are well aware of the good deeds (Kim and et.al, 2020)..
Implementation of sustainability helps in saving a lot of money by reducing waste and
unnecessary spending. In context to hospitality it results in creating a dramatic environmental
impact on the environment because of the water and energy consumption and with massive use
of consumable goods. In the 21st century, the concept of sustainability is regarded as the key in
order to carry out a business successfully(Yan and Xiao, 2021).
2.2 CSR
The social responsibility and sustainability is becoming a major concern for the private
and public sectors. In easy manner it could be said that sustainability helps in providing
sufficient resources in order to meet the future and present generation needs. In context to the
hospitality organizations, it is important for the companies to improve the sustainability in the
business operations and carrying out business operations in a sustainable manner. The
sustainability helps the organisations in the hospitality industry to stand out in a better way (Choi
and Choi., 2021). In today's world, the shoppers, travellers, hotel bookers and restaurant patrons
are focusing and caring about the sustainability.
2.3 Ways to improve sustainability in business operations
Challenges and Trends: In context to hospitality industry, the sustainability in the hospitality
industry helps in providing various benefits and offers a clear advantage and helps the
professionals in the industry to over come challenges for the purpose to build a sustainable
strategies(Trofimova, 2020).It is important for the organisations to carefully focus on the needs

and wants of customer and also focusing on the various ways that can improve the aspects of
their business.
Establishing Energy Management Programs: In context to hospitality industry it is important
for the leaders to put up energy in the management programs into place and also building a team
which is responsible setting up energy conservation plans and achieve objectives (Liu and et. al.,
2019).
Evaluating Energy Usage: In content to move towards one step in sustainability, the leaders can
take another significant actions while focusing on using the energy and having a clear
understanding of the uses of energy that helps the leaders to identify the important areas for the
improvement. In addition to that leaders can regularly focus on evaluating the use of energy and
can look out for the energy saving practices that helps in cutting the costs and improving the
efficiency (Ahn,Wong and Kwon., 2020).
Educating Employees: In context to improving the sustainability in the business operations it
requires a group effort. In addition to that it is important for the leaders and managers of the
hospitality organisations to raise awareness and educate employees about the practices involved
in the process of sustainability (Bibi and et. al., 2022).It is important for the business to adopt
practices for the purpose to implement sustainability which involves activities such as waste
management and water management and using the various organic products which do not
involve harmful chemicals and can be easily recycle and reuse. With the help of this it can
become a part of the culture of the organisation(Wong, Köseoglu and Kim, 2021 ).
3 Potential sustainability initiatives and approaches to make hospitality business more
sustainable
3.1 Initiatives and approaches
In context to various approaches and sustainability initiatives there are various ways that
are considered by the hospitality business in order to make the business operations more
sustainable. With increase in the popularity of the eco friendly practices and environmental
concerns such as green meetings it has become important for the leaders and managers of the

hospitality industries to constantly expand their knowledge regarding the
sustainability(Muhamad Fazil, 2019).
In context to luxurious hotels such as The Ritz London, The Savoy Hotel, London
Hilton on Park Lane, all these organisations are focusing on taking various measures and steps in
order to make their business practices more and more sustainable. With understanding of the
various initiatives in the industry involved in hospitality helps in offering event planners to
consider various factors in order to select the hotels for the clients. In context to Vail Resort
which basically involves Rock Resorts, the organisation has undertaken a grand commitment for
the purpose to decrease the environmental footprint and to increase the sustainability of the
various services offered by the organisation (Boğan and Dedeoğlu., 2019). In context to Rock
Resorts the organisation has carried out various initiatives in order to implement sustainable
practices.
Recycling and Waste Reduction: In context to hospitality organisations, the companies are
focusing on various opportunities for the purpose to reduce the disposables and reducing the use
of paper. The organisations are focusing on implementing the food waste composting programs.
In context to domestic hotels, the leaders and manages are focusing on carrying out the recycling
programs which basically involves the beverage containers and newspapers which are becoming
a basic expectation. In order to implement recycling efforts the hospitality industries are focusing
on looking for opportunities (Yasir and et. al., 2021).
Water Conservation: With context to spas, hotels, guest rooms, kitchens and laundries,all these
are focusing on implementing efficiencies that helps in reducing water and reducing the
chemicals which are used to clean facilities and water systems(Kelley, Hemphill and Thams,
2019).
Cleaning Products: In context to hospitality industries, it is important to recognize the important
for the safer products for the employees and guests, the organisations have shifted on cleaning
products which are made up of natural cleaners and bio based oils. With switching, they are
focusing on reducing the use of products with petrochemical derivatives and chlorine bleach.

These helps in performance and less destruction to the environment (Wong, Kim and Hwang.,
2021).
Preparation of Food: In context to hospitality industries there has been a major focus on the
seasonal produce, local products, ingredients and fresh food for the beverage and food programs.
In context to hospitality sector it involves a shift towards being more sustainable and involves
offering travellers with unique opportunities for the purpose to experience a connection with the
destinations (Lau,Ren and Yang., 2021).
Bath Amenities: In context to hospitality industry various hotels are making statement and are
focusing on offering guests with custom based amenities. In context to hotels and resorts such
Rock Resorts are focusing on carrying out various steps that involves custom made products, all
natural products and essential oil based with out any artificial ingredients and preservatives in a
recyclable packaging(Gupta and Wadera, 2021).
3.2 Range of potential sustainability initiatives and practices adopted by the hospitality
organisations
In context to the hospitality industry, the impact of these industries on the environment
has been very vital and crucial. Therefore it is very important for the organisations to implement
and well design a Corporate Social Responsibility plan supported by the mission, value and
vision statements of the organisation. Moreover the sustainable development has become the
major element for the organisations corporate strategy. With the help of effective and efficient
sustainable development it helps in improving the reputation of the organisation, improving the
bottom line, leading to more prosperity and sustainable growth and increasing the morale of the
employees. In addition to that minimization of the waste, environmental care and various
sustainable practices can help in bringing the reducing in costs for various organisations. Various
hospitality businesses and European governments have focused on embracing the sustainable
growth philosophy(Karaman and Akman, 2018 ).All the consumers, societies, construction
companies, stakeholders, tour operators, governmental agencies are focusing on resolving the
social and environmental issues that results in creating a negative influence in the organisation
with the use of sustainable practices. In context to organisations, its CSR strategy supported with

the needs of the synergy and local societies among the community and business are considered to
be major determinant factors in the financial success of the company.
The triple bottom line sustainable development is considered to be important for the
daily operations of the business and organizational process. It also becomes important for the
stakeholders to operate in a way which helps in providing benefits of economic, environmental
and social performance. In case of contemporary hospitality industry there has been a increase in
number of organisations who are adopting the triple bottom line or also known as the
sustainability framework. In case of hospitality industry, the sustainability basically involves the
behaviour and decisions of the stakeholders (Ahn., 2021).
The organisations are very well active in the process of learning and sustainable
development needs and efforts done by the executives in the organisation. In context to
hospitality industry, there are various range of innovative tools of going green and creating a
positive influence on the triple bottom line which involves creating a environment committee
that works mainly for the development of the green plan. In addition to that using tools which
involves energy star portfolio manager for the purpose to receive information and additional data
on the property's energy consumption (Vila-Vázquez, Castro-Casal and Carballo-Penela., 2022).
Furthermore, it involves using energy saving window film in the rooms, using solar lamps,
installation of the reflective roof and installing energy curtains in the freezer rooms.
In context to hospitality industries there are various hotels and resorts who are focusing
on carrying out sustainable practices in their business operations. In context to Marriott Hotels
and resorts the organisation has very early starting embracing the practices of sustainability and
is focusing on investing in the sustainable development and innovating initiatives which will
help in providing long term solutions to the problems of the various environmental and social
issues (Gürlek and Tuna., 2019).
Another example involves the Accor Hotels, who are considered to be one of the organisations in
the hospitality who encompass corporate sustainability. In context to the organisations, the
leaders and managers focuses on encouraging engagements of the employee and also provides
training to the employees (11Examples of CSR practices in the hospitality industry, 2021).

4. Recommendations for improving operational sustainability, existing hospitality properties and
in new build hospitality properties
Operational sustainability basically involves the procedure and method of evaluating the
whether a business or organisation in maintaining existing practices without risking the future
potential resources. There are various ways and recommendations that helps in improving the
operational sustainability. Due to various business, environmental and social trends which helps
in making the concept of sustainability a priority for the business organisations(Luu, 2020).
Creating a sustainable action plan: The concept of sustainability need to be begin with the top
executives of the organisation who are basically integrated into the organisation's operations and
vision. In case of various organisations many senior level executives are not aware of the cost
structure and the firm's energy use. Therefore it is very important for the organisation to audit the
usage of water, energy usage, materials management which also involves the clean energy
technologies, advantages of the incorporating renewable, advanced batteries, led lighting, solar
wind turbines and much more (Butcher and Chomvilailuk., 2021).
Improving fleet energy efficiency: It basically involves the organisations to transitioning to the
alternative electric or fuels. In context to water being one of the most scare resources it is
important for the organisation to carefully use it in a more responsible way. In addition to that
there should be a regular and careful examination of the facets, pipes and toilets. The
organisations should focus on turning the sensor operated touchless facets and focusing on
reducing the water consumption and improving hygiene (Qian and et. al., 2021).
Practice sustainable landscaping
In context to the hospitality organisations, the water conscious and sustainable landscape
plays a very important role in conserving the energy and waste and also results in decreasing the
run offs and reducing the waste. In order to achieve a sustainable landscape it is important to
install green infrastructure, bio retention areas and rain gardens, reducing or eliminating. In order
to improve the hospital properties, there are various ways and methods which need to be
considered by the managers and leaders of the hospitals (Ahn and Kwon., 2020).

Reaching out with post booking communication: It is important for the organisation to
establish a connection with guests and using following up emails. It will help in gathering
sufficient information and offering thoughtful services that involves dinner reservations and
extra pillows (Tour.,2021).
Offer complimentary services and freebies: In context to the hospitality industries, the managers
and leaders need to offer a variety of services for free and offers complimentary services in order
to provide customer service and offering the wi-fi and to attract the local attractions (Sharma and
Mishra., 2019).
Rewarding repeat guests: In context to hospitality industry it is very important for the
organisations to build a customer loyalty for the purpose to ensure the success of the hotel. In
today's scenario it is very tough to maintain the competitive market loyalty. It is therefore
important for the hoteliers to focus on various strategies that provide rewards and preconization
to the consumers.
In context to hospitality industry, the concept of sustainability plays a very important role. In
context to hotels it involves goods, water and electricity which are durable and consumable and
results in lot of wastage and therefore to get a green building label it is important for the
organisation involved in hospitality to use sustainable technology.
5. CONCLUSION
From the above report it can be concluded that corporate social responsibility plays a
very important role in the organisation and it is very important for the hotels and resorts and
every organisation who is involved in the hospitality sector to carry out sustainable practices and
implement sustainability in their day to day operations.

REFERENCES
Books and Journals
Ahn, J. and Kwon, J., 2020. CSR perception and revisit intention: the roles of trust and
commitment. Journal of Hospitality and Tourism Insights.
Ahn, J., 2021. Role of hope and compulsion for CSR activities in hotel customers’
engagement. Current Issues in Tourism, 24(14). pp.1958-1964.
Ahn, J., Wong, M. L. and Kwon, J., 2020. Different role of hotel CSR activities in the formation
of customers’ brand loyalty. International Journal of Quality and Service Sciences.
Bibi and et. al., 2022. Do hotel employees really care for corporate social responsibility (CSR):
A happiness approach to employee innovativeness. Current Issues in Tourism, 25(4).
pp.541-558.
Boğan, E. and Dedeoğlu, B. B., 2019. The effects of hotel employees’ CSR perceptions on trust
in organization: Moderating role of employees’ self-experienced CSR
perceptions. Journal of Hospitality and Tourism Insights.
Butcher, K. and Chomvilailuk, R., 2021. Guest benefits of hedonic value and perceived
community value drive hotel CSR participation. Journal of Sustainable Tourism, pp.1-18.
Choi, M. and Choi, Y., 2021. Employee perceptions of hotel CSR activities during the COVID-
19 pandemic. International Journal of Contemporary Hospitality Management.
Csillag, S., Gyori, Z. and Matolay, R., 2018. Two worlds apart? Corporate social responsibility
and employment of people with disabilities. In The critical state of corporate social
responsibility in Europe. Emerald Publishing Limited.
Gupta, S.S. and Wadera, D., 2021. Consumer understanding of corporate social responsibility
dimensions: an application of CSR pyramid model in Indian context. International
Journal of Indian Culture and Business Management, 22(1), pp.110-136.
Gürlek, M. and Tuna, M., 2019. Corporate social responsibility and work engagement: Evidence
from the hotel industry. Tourism Management Perspectives, 31. pp.195-208.
Karaman, A.S. and Akman, E., 2018. Taking-off corporate social responsibility programs: An
AHP application in airline industry. Journal of Air Transport Management, 68, pp.187-
197.
Kelley, K.J., Hemphill, T.A. and Thams, Y., 2019. Corporate social responsibility, country
reputation and corporate reputation: A perspective on the creation of shared value in
emerging markets. Multinational Business Review.
Kim and et.al, 2020. Why hotel employees care about Corporate Social Responsibility (CSR):
Using need satisfaction theory. International Journal of Hospitality
Management, 87,.p.102505.
Ko, A., Chan, A. and Wong, S. C., 2019. A scale development study of CSR: hotel employees’
perceptions. International Journal of Contemporary Hospitality Management.
Latif, K. F., Pérez, A. and Sahibzada, U. F., 2020. Corporate social responsibility (CSR) and
customer loyalty in the hotel industry: A cross-country study. International Journal of
Hospitality Management, 89. p.102565.

Lau, V. M. C., Ren, L. and Yang, F.X., 2021. CSR and casino hotel branding: The joint
moderation of CSR misfit and corporate awareness. Journal of Hospitality and Tourism
Management, 49. pp.375-384.
Liu and et. al., 2019. How CSR influences customer behavioural loyalty in the Chinese hotel
industry. Asia Pacific Journal of Marketing and Logistics.
Luu, D.T., 2020. The effect of internal corporate social responsibility practices on
pharmaceutical firm's performance through employee intrapreneurial behaviour. Journal
of Organizational Change Management.
Muhamad Fazil, A., 2019. The Strategic of Corporate Social Responsibility Management in
Improving Society Sustainable Development.
Qian and et.al, 2021. Progress of hotel corporate social responsibility research in terms of
theoretical, methodological, and thematic development. Journal of Hospitality Marketing
& Management, 30(6). pp.717-737.
Sharma, S. and Mishra, P., 2019. Hotel employees’ perceptions about CSR initiatives and there
potential to support the skill India initiative. Worldwide Hospitality and Tourism Themes.
Trofimova, N.N., 2020. Modern aspects of corporate social responsibility as a means of
sustainable development of enterprises. Business strategies.
Vila-Vázquez, G., Castro-Casal, C. and Carballo-Penela, A., 2022. Employees’ CSR attributions
and pro-environmental behaviors in the hotel industry: the key role of female
supervisors. The Service Industries Journal, pp.1-19.
Wong, A. K. F., Kim, S. and Hwang, Y., 2021. Effects of Perceived Corporate Social
Responsibility (CSR) Performance on Hotel Employees’ Behavior. International Journal
of Hospitality & Tourism Administration, pp.1-29.
Wong, A.K.F., Köseoglu, M.A. and Kim, S.S., 2021. The intellectual structure of corporate
social responsibility research in tourism and hospitality: A citation/co-citation
analysis. Journal of Hospitality and Tourism Management, 49, pp.270-284.
Yan, A. and Xiao, Y., 2021, January. Psychological ownership of ones’ organization explains the
positive relationship between corporate social responsibility participation and
organizational engagement. In International Conference on Decision Science &
Management (pp. 341-355). Springer, Singapore.
Yasir and et. al., 2021. Participation of hotel managers in CSR activities in developing countries:
A defining role of CSR orientation, CSR competencies, and CSR
commitment. Corporate social responsibility and Environmental Management, 28(1).
pp.239-250.
Online:
Justine Gentinetta.,2021. 11Examples of CSR practices in the hospitality industry.
[Online]Available through:<https://hospitalityinsights.ehl.edu/csr-practices-hospitality-industry>
Tour Manag.,2021.The impact of hotel CSR for strategic philanthropy on booking behavior and
hotel performance during the COVID-19 pandemic.[Online]Available
through:<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8602938/>