Corporate Social Responsibility in Hospitality

This assignment delves into the critical role of Corporate Social Responsibility (CSR) within the hospitality industry. Students are tasked with analyzing various aspects of CSR, including its impact on firm performance, sustainability practices, and the ethical considerations involved in serving customers and employees. The analysis should draw upon provided academic literature and real-world examples to demonstrate a comprehensive understanding of CSR's significance in this dynamic sector.

Sustainable hospitality
management

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................................3
MAIN BODY.............................................................................................................................................3
1. Evaluation the extent to which the hospitality industry contributes to each issues among social,
environmental and economic.............................................................................................................3
2. Analyzing the effects of issues have on the profitability of hospitality industry...............................5
3. Evaluation the importance of corporate sustainability management...............................................8
CONCLUSION........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Sustainable management can be defined as the application of avoiding the depletion of
natural resources for maintaining an ecological balance in hospitality sector. This study will
show about the importance of sustainable business and corporate responsibility for hospitality
industry. The hospitality industry in UK has made significant contribution in the economic as
well as social development of nation. But at the same time it has given rise to various issues
which has direct impact on the society as well as environment. It is very important for
hospitality sector and hotels to manage corporate sustainability. There are various strategies
and policies that are being adopted and implemented by the hotels and tourism industry for
managing corporate sustainability like reduce, reuse and recycle of their wastes products like
to turn toilet waste into power. Hospitality and tourism industry give rise to millions of jobs that
increases economic prosperity (Crowther and Seifi, 2018). This industry has sustainable
impacts on the environment & society and all these create increasingly pressing sustainability
management challenges. Some hotels are stepping up their corporate sustainability projects
like reusing, recycling components of mattress and also donate their partially used soap and
tissue rolls to the global soap projects and shelters.
MAIN BODY
1. Evaluation the extent to which the hospitality industry contributes to each issues among
social, environmental and economic
Sustainability is one of the main issue that the world is facing. Sustainable business
plays an important role as it can be defined as a business that have a minimal negative
impacts on the local environment, economy and society. Tourism industry have significant
effect on the environment. As with the increase in number of tourist at specific destination,
there are high chances of damage to destinations. For becoming more sustainable it is
important for hospitality sector to focus on reducing wastes and negative impacts on
environment, society and economy. (Grayson and Hodges, 2017)
Environmental sustainability issue – Pollution and environmental damage
In the context of environment there are some issues which is created by hospitality
industry is environmental pollution and damage. Activities of hospitality sectors like Marriott

hotel and Thomas Cook travels industry create noise and air pollution to the great extent.
Pollution which is being contributed by Tourism industries activities have negative impacts on
the people of particular area such as it creates various diseases like skin allergy, cancer. It
destroy environmental and natural resources also as travelers use water to the great extent
that creates the problem of water scarcity.
Social sustainability issues: Erosion of traditional culture and crimes
In the context of social issue hospitality sector, The behavior promoted by tourist can lead to
the erosion of traditional culture as well as values. The most social issue which is being
contributed by hospitality sector is to infringe the human rights. Sometimes they do not focus
on behaving ethically with people of culture. For example Hilton hotel create and increase criminal
activities due to tourism is one of the major issue created by companies in hospitality sector. It
has negative impacts on the quality life of people residing at particular destination. There is
high chances of increase in criminal activities due to tourism. It creates lighting and heating
ventilators that is not good for the society and it is also the biggest issue which is being created
and contributed by hospitality industry. There are some people who can not afford the
expenses of big hospitality industries and it creates differences in culture and people. For
example, Marriott hotel that is expensive for those people who can not afford them.
Most of the hotels in hospitality sectors uses inorganic foods that is also not good for
the people. Nowadays people are becoming more conscious about their health so it is
important for them to consider this issue.
Economic sustainability issues : Income of consumers & increasing unemployment
Tourism is the sector in UK which makes the significant contribution in the economic
development of nation as it gives less opportunities of employment as it is a seasonable
industry that is not good for people. It increases unemployment rate that impact on the national
economy. Increment in costs and expenditure has negative impacts on the economic condition
of nation .Developing the tourism involves lot of costs and expenditure is to be incurred by
government. In addition to this, increase in tourism can give rise to other major economic
issues such as inflation. For example Thomas Cook that effect on the economic condition of
nation. It gives rise in traveling cost that is also decrease economy and have negative impact

on it. It is a slow growth industry and also seasonable industry so it contributes in GDP very
slowly.
2. Analyzing the effects of issues have on the profitability of hospitality industry
The hospitality industry is one of the main resource intense branch in the tourism
industry. The main aim of hospitality sector industry is to maintain and develop high guest
satisfaction without sacrificing any comfort. wastes from this industry have an impact on
environment. These issues have on the hospitality industry's profitability
The main strategies and tactics includes purchasing items in bulk, avoiding bottled
water. The main aim of purchasing products in bulk is the best strategy as it reduces wastes
and creates less wastes and it does not create pollution and save natural resources. this can
be possible and can be done with the help and working with suppliers by changing reusable
packaging whenever possible (Peric and Vitezic, 2016). Outsourcing is other main better way
for hotels to reduce waste and also cut cost. most of the hotels are now avoiding the uses of
bottled water as it is expensive, wasteful and also has various environmental impacts. It has
been stated that bottled water produces and generates up to 1.5 million tons of plastic waste
per year and for that it is also require to have up to 180 million liters of oil per year.
There are various reasons of developing sustainability. It has been stated that most of
the people are running businesses in this particular industry. most of the people do not see this
business in this industry to be sustainable so they make and earn their short term profits and
then leave and damage to the society an d the property. This lead to spoil the image of the
industry to the society. So it is very important for them to make their businesses sustainable
and to take care of the pollution which their activities cause and wastes that are being released
by them in the environment that is toxic.
For instance, in context of Marriott hotel, which is operating business in tourism sector
there are different types of strategies which is applied by organization such as ethical
marketing tactics which has assisted an organization in increasing the sales and profitability.
It is the marketing tactics which has helped an enterprise in changing the people perception
towards tourism sector and hence provided firm an ease in attracting more number of
customers. The different issues emerged due to the activities of Marriott hotel has significant
effect on the profitability of an organization.

In context of environment, the various issues such as Global warming, sudden changes
in climate etc. which has occurred because of business practices companies in travel and
tourism industry has lead to the decline in the profitability of firms in specific sector. Due to
global warning many of the people are avoiding to travel at particular destination which has led
to the decline in the profitability of tourism enterprises at specific tourist place (Narangajavana
and et.al., 2016).. Increase in the number of tourist at specific place has given rise to
environmental pollution. In context of hospitality sector, people prefer to visits those places or
destination which are less polluted. For instances, the most popular destination such as Paris
and Delhi are the nations which are highly polluted. . Many of the people are avoiding to avoid
such places which has direct effect on the profitability as well as sales of organization in
particular tourist place. In context of Marriott hotel, marketing manager in an organization
need to design the marketing plan very carefully. They also are required to make sure the
techniques which are utilized by them are appropriate, as it will assist them in accomplishing
desired objectives. It will also help an enterprise in increasing sales and profitability
(Yakovleva, 2017). .
In context of social issues, the problems which are suffered by people in society due to
the business practices faced by companies have great effect on the profitability of enterprises
in tourism sector. For instance, In context of Marriott hotel, companies is required to provide
training to their employees so that the social issues can be deal in systematic manner.
Training strategy will also help an organization in increasing sales and profitability(Melissen
and et.al., 2016). . Both management and workers in travel as well as tourism industry are
required to work collaboratively with each other in order to solves the social issues. They both
need to work closely with each other for reducing the negative effect of its business on
society. Ethical marketing activities can be conducted by firms in tourism sector, as it will
provide them ease in changing the attitude of customer toward specific sector. In addition to
this, firms in tourism sector is required to communicate with people at specific tourist place
and they need to involve local residents in tourism planning process, as it will assist them in
eliminating the obstacles which might occur in development of tourism. In addition to this,
organization in tourism sector are need to make sure that they are performing fair trade
practices, a sit will support therm in gaining the customer loyalty which is very much important
in order to increase sales and profitability (Crane, Matten and Spence, 2019)... For instance,
Accor is a company which has adopted the Planet 21 strategy which mainly emphasizes on
corporate ssuistianability. It is the Ta-tics which has assist an organization in gaining the

customer loyalty. The planet 21 strategy based on the corporate sustainability has provided
organization an ease in attracting more number of customers and hence assisted business
entity in increasing sales as well as profitability. In addition to this, an enterprise has
implemented the advance technology which has aid firm in reducing the waste (Epstein, 2018).
It is the strategy which is adopted by organization ha positively influenced people to buy goods
or services., Ac cor has implemented the electric charge point in order to reduce the wastage
of electricity , this tactics has helped an enterprise developing the positive relationship with
customers and hence helped in increasing profit.
In context of economic issues, the unfavorable economic condition in the nation have
significant effect on the financial performance of companies in tourism sector. The increase in
poverty and decline in level of individual income has significant effect on the demand for the
products or services offered by travel companies for example, Top Deck.
Environmental sustainability issues: Pollution and environmental damage
Negative effect :
Environmental pollution is the major issue which is created by hospitality industry that has
adverse effect on the health of people in the society. The increase in the number of tourist at
specific destination increases the threat to cultural as well as natural resources. As different
activities performed by tourists can increase the chances of damage to heritage sites. In
addition to this, the overcrowding due to increase in number of visitors at particular place
might give rise to the pollution at particular tourist place. There are different types of pollution
which can be occurs due to increase in number of tourist at particular destination includes
noise pollution, water pollution, traffic emission etc. which could have adverse impact on the
environment
Positive effect: It is the tourism which assist in promoting the conservation of wildlife.
In addition to this, tourism also promotes the maintenance of cultural as well as other heritage
sites. Tourism helps government in generation of the revenue which can be then utilized for the
development of heritage sites. It aids in reducing the different issues such as deforestation etc.
Social sustainability issues: Erosion of traditional culture and crimes
Positive effect :It is the tourism which encourages people to bring improvement in
living standards. In addition to this, tourism encourages local people as well as government to

bring improvement in infrastructure. It promotes the preservation of customs as well as
traditions at workplace. Tourism enables local people to feel pride about the place where they
are living. It is the tourism which generates employment for local people at workplace. It
assists local people in promoting the culture at large scale.
Negative effect : Increase in criminal activities due to tourism is one of the major issue
created by companies in hospitality sector .
The tourism have adverse effect on the quality life of people residing at particular destination.
There is high chances of increase in criminal activities due to tourism. The behavior promoted
by tourist can lead to the erosion of traditional culture as well as values. It ca
n even infringe the human rights.
Economic sustainability issues : Income of consumers & increasing unemployment
Positive : Tourism is the sector in UK which makes the significant contribution in the
economic development of nation. It also provides source of income to local people. Tourism
industry provides other small sectors with an opportunity to increase sales as well as
profitability. It is the tourism sector which enables government to earn higher revenue in form of
tax which can then be used for the development of tourist places as well as society.
Negative : Increase in costs and expenditure has adverse effect on the economic
condition of nation.
Developing the tourism involves lot of costs and expenditure is to be incurred by government.
In addition to this, increase in tourism can give rise to other major economic issues such as
inflation.
3. Evaluation the importance of corporate sustainability management
Corporate sustainability can be defined as a corporate growth as it is very important for
the hospitality industry to maintain their growth and achieving their determined organizational
goals. Sustainable development is a broad concept that balances the need for economic
growth with social equity and environmental protection. Thrown away things from hotels and
tourism industry such as used plastic bags and other things of expiry dates leads to grave
environmental consequences. There are three pillars of sustainability which is known as social,
environmental and economic. The most important concern for hospitality sectors are hygiene
and durability in order to satisfy their guests (Aynalem, Birhanu and Tesefay, 2016).

Corporate sustainability is important for businesses by which they justify their existence
for achieving success by showing an interest in taking care of their people who lives around
them. The main purpose of hospitality sector is to satisfy their guests by providing the best
facilities and services which do not harm the environment and economy. Sustainability ensures
them that the people and society is up to date with all the activities done by them and that take
place in the society. The society and community consist of shareholders to the company and if
they get benefits then businesses gets benefited too. This sector requires to have
understanding with a high level of knowledge and skills for dealing with management
strategies that are required by them.
The main importance to become sustainable for hotel industry is that most of the guests
and people want to stay in green hotel. They allow them that they are contributing and helping
the environment in protecting them and also are saving hotel money in the long term. The most
important factor and reason that forces all the businesses to become more sustainable is to
improve and have healthy communities and also for improving the lifestyle (Sobaih, 2015). For
fulfilling this goal, it is important to have clean air and more natural resources or non toxic
environment. Sustainability helps in improving the quality of environment and also aid
hospitality industry in reducing the negative effects of business operations on the public health.
It has been stated that most of the people are facing problems and diseases due to unclean
and impure water and pollution.

Illustration 1: Corporate sustainability
(Source: C O R P O R AT E S U S TA I N A B I L I T Y F O R P E O P L E , P R O F I T,
P L A N E T, 2 0 1 7 )
For solving this type of problem it is essential to focus on reducing wastes and re usage all the
resources that can be reused. Some importance of becoming sustainable are:
Better guests experience: By investing in environmental technologies can have a
positive impact and influence on the guest experiences. Hoteliers are more increasingly are
paying their attention to furnishing, lighting and also other front of house products that have
various impacts on guests and also influence occupancy.
Cost efficiency: Hotels and most of the businesses in hospitality sectors by
maintaining balance between reducing costs and also improving efficiency by implementing
and developing working procedures. By developing environmental technologies and also by
adopting strategies for reducing, recycling and reusing wastes are important for the hotel's
profitability in the long run. There are other areas on which this industries focus including
prioritizing quality of air and by improving and cleaning products use (Chan and Hsu, 2016). It
can give higher level of employees satisfaction.
Economic incentives: Government has introduced economic incentives in order to
encourage industries and businesses of hospitality sectors for development of environmental
improvements and also for construction of green buildings. Economic incentives include
financial grants, insurance premium discounts & expedited regulatory permitting.
Brand image: The main important factors and reason that why all the businesses and
industries in hospitality sector want to become sustainable is to have positive brand image.
Sustainable business practices make it able and lead to an improved brand image. It also
make them able to increase profits and sales by satisfying their guests.

Tours and Travels sector Like Thomas Cook have to face various problems like
changes in consumer preferences. All these changes go hand in hand with generational shifts
& digitization (Jones, Hillier and Comfort, 2016).
CONCLUSION
From the above study it has been concluded that sustainability and corporate
responsibility played an important role in any type of business. management of sustainability
and corporate responsibility helped the company and hospitality sector industries to achieve
their determined goals. There are some strategies that tourism and hospitality sector industry
used and implemented to have positive environmental, social and economic impacts as it can
also be supported them in developing their business and for satisfying their customers and
guests. It has been also concluded that reuse, recyclable and reduce strategies helped
hospitality industry to manage sustainability and reducing negative impact that it had on
environment, society and economy.

REFERENCES
Books and journals
Aynalem, S., Birhanu, K. and Tesefay, S., 2016. Employment opportunities and challenges in
tourism and hospitality sectors. Journal of Tourism & Hospitality, 5(6), pp.1-5.
Chan, E. S. and Hsu, C. H., 2016. Environmental management research in hospitality.
International Journal of Contemporary Hospitality Management, 28(5), pp.886-923.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings
and cases in a global context. Routledge.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.Phaneuf, J.É. and et.al., 2016. Personality and transformational
leadership: The moderating effect of organizational context. Personality and Individual
Differences. 102. pp.30-35.
Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.Pomery, A. and et.al.,
2016. Skills, knowledge and attributes of support group leaders: A systematic review.
Patient Education and Counseling. 99(5). pp.672-688.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Lins, K. V., Servaes, H. and Tamayo, A., 2017. Social capital, trust, and firm performance: The
value of corporate social responsibility during the financial crisis. The Journal of Finance,
72(4), pp.1785-1824.
Melissen, F. and et.al., 2016. Sustainable development in the accommodation sector: A social
dilemma perspective. Tourism Management Perspectives, 20, pp.141-150.
Narangajavana, Y. and et.al., 2016. Measuring social entrepreneurship and social value with
leakage. Definition, analysis and policies for the hospitality industry. International
Entrepreneurship and Management Journal, 12(3), pp.911-934.

Peric, M. and Vitezic, V., 2016. Impact of global economic crisis on firm growth. Small business
economics, 46(1), pp.1-12.
Sobaih, A. E. E., 2015. Hospitality employment issues in developing countries: The case of
Egypt. Journal of Human Resources in Hospitality & Tourism, 14(3), pp.221-243.
Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.
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