CSR Debate and Analysis: Marriott Hotel's Initiatives

This report provides a critical analysis of Corporate Social Responsibility (CSR) with a specific focus on Marriott Hotel. It begins with an introduction to CSR, defining its role in sustainable development and its impact on stakeholders. The main body delves into the current debates surrounding environment and sustainability within CSR, examining whether CSR activities are a positive contributor to corporate value or a cost. It also highlights different strands of thought from various authors, including Milton Friedman, Brammer, Jackson, and Matten, Kang, Lee, and Huh, Kolk and Van Tulder, Minch, Jo and Harjoto, Ioannou and Serafeim, Servaes and Tamayo, and Inoue and Lee. The report assesses the validity of these perspectives, particularly in the context of Marriott's initiatives, such as reducing water, waste, and energy consumption. The conclusion summarizes the overall assessment of CSR practices, highlighting the balance between financial considerations and ethical responsibilities. The report also includes references and an illustration index.

CORPORATE SOCIAL
RESPONSIBILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Critical review of the current debate............................................................................................3
Highlighting different strands of thought....................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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ILLUSTRATION INDEX
Illustration 1: Environmental Protection Activities.........................................................................5
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INTRODUCTION
Corporate social responsibility can be defined as the business approach which which
helps in the contributing to sustainable development that delivers economic, social and
environmental benefits to all the stakeholders of a firm. Further, it is very essential for the
corporate to perform the CSR activities so that as to sustain the competitive advantage by
making better public image (Lindgreen and Swaen, 2010). Along with that, it boost the employee
engagement which helps in motivating the employees. Thus, this report is mainly focused on the
CSR activities of Marriott Hotel. Furthermore, this report describe the critical review of current
debate in this environment and sustainability in CSR. Along with that discussion has been made
on the different strands of thought and the main reason behind them. Along with that, validity of
the topic has been assessed. At last, conclusion has been drawn on the overall assessment.
MAIN BODY
Critical review of the current debate
Debate in the area of environment and sustainability in CSR has become a serious issue
in current era. Further, every organization aims to identify that CSR is a positive contributor to
corporate value or they act as the cost to the company. As per the expert view of Du,
Bhattacharya and Sen (2010) CSR is an important issue in contemporary debates. It has been
assessed that it has become difficult for the firms to escape from this activity. Further, it is
viewed that CSR is mainly done or its central existence is for the concern of environmental
sustainability. The reason behind this is that, CSR is crucial for the long term success and
survival of the company. Further, the environmental law of EU has imposed this on the all the
firms of UK that every company has to perform CSR activities in order to protect the
environment and to do the sustainable development. Along with that, Gainer (2010) defined that
CSR activities has benefited the company in a most efficient manner. If the firm adopt such
activities then they can make their customers satisfied because the firm is producing goods and
services by protecting the environment in which consumer survive. This will put a positive
impact on the consumers because company is not biased towards earning profits but the firm also
thinks about the society and environment as well. Along with that, company also generate high
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revenue because the rate of customer retention increases and this makes the company more
profitable.
(Corporate social responsibility, CSR, 2016)
However, WORK (2011) argued that CSR activities incur heavy cost to the organization.
It is because, to operate in a environmental friendly manner, company will require capital and
changes in the work practices. These investment does not give any return to the investor. Thus,
this shows that company cannot generate more profit while performing the CSR activities. This
shows that businesses are falling while fulfilling their community and environmental
commitments. According to Milton Friedman, if corporate are socially responsible then it is
useless and even it is potentially dangerous because this activity divert the companies from its
very aim of doing business; making profit. Such activities may cause the demise of an enterprise
before the time and this way economy of the country will be harmed.
On the contrary, Mishra and Suar (2010) disagreed with the above statement and argued
that in the present era, CSR has become very reason for business survival. Further, he also
commented that business cannot earn profits until it satisfy their customers. And today, customer
get satisfy only with those products and services who are contributing in the environment. Along
with that, CSR also helps in the retention of customer and employees. Now a days, buyers have
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Illustration 1: Environmental Protection Activities

become more aware about the environmental protection and also support such companies which
are concerned towards the protection of environment. Furthermore, companies can also promote
good public interest and supportive innovation. Moreover, Cheng, Ioannou and Serafeim (2014)
has explained that, government has made the rules and regulations and has imposed on the firms
to adopt and perform the activities of CSR. Further, he states that in order to reduce the corporate
risk like scandals, etc. It is necessary to comply with the rules and regulations of corporate risk.
The debate of CSR on environment and sustainability has been done in the Hotel Marriott
as well. The company is carrying out such activity in order to save the environment and develop
the sustainability. For this aspect, company has made several objectives such as it will reduce the
consumption of water, waste and energy in their hotels ans they will more focus on integrating
greater environmental sustainability through their business. Further, they are developing the
green hotels in order to comply with the aim of environmental protection and sustainable
development (Servaes and Tamayo, 2013). This way they can generate huge customer base.
Furthermore, this project is the largest project by the hotel and this require heavy cost to be
incurred. Along with that, company has an objective of inspiring associated and guest in order to
create awareness about the sustainability initiatives. Furthermore, this hotel wants to support
conservation of environment globally so that they can contribute more in the CSR of
environment and sustainability (Environment, 2016).
On the contrary, whilst doing the CSR activities, company has incurred many cost which
has reduced its profit. For doing these activities, company has spent £330.11 million which has
highly impacted the company's profitability. Furthermore, management of Marriott had a serious
debate on this issue whether or not CSR is good opportunity for them or not. The shareholder of
the company were highly affected by this. It is because the cost incurred does not give monetary
return and thus, shareholders and investor's profit got down (Inoue and Lee, 2011).
Highlighting different strands of thought
There are various authors who have discussed about the CSR and they have different
pattern of thoughts about the area. Milton Friedman thinks that sole reason of company is to earn
more and more profits and organization has only one social responsibility that is to use its
resources in business activities for increasing profits. Further, he argued that it is not the
responsibility of a business firm in fact it is the responsibility of a government to perform such
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activities. The reason behind this thinking is that businesses are formed top do the economic
activities and not for the non-economic benefits. Therefore, Friedman thought is correct form
one perspective. However, Brammer, Jackson and Matten (2012) argued that such thinking is not
suitable in the contemporary world. Therefore, company cannot survive in this era without
giving back to the society what they have taken before. Furthermore, when the company uses the
resources for designing business activities then environment get affected which in turn destroys
the environment and the natural habitat. Therefore, it is moral and ethical responsibility of a
company to protect the environment in return of those resources.
On the contrary, Kang, Lee and Huh (2010) supported the statement of Friedman. In this
the author stated that statement of Friedman and was accurate because of the close link between
their argument and the generic mission of a company to maximize the shareholder's value.
Whereas, Kolk and Van Tulder, (2010) completely disagree with the fact and commented that in
a proper business ethics company has an indirect responsibility of returning back to the
community as a social hand. Further, he argued that in the present world, such thinking of
Friedman cannot be entertained as the firm's sole reason of survival is the extent to which
company can perform CSR activities.
Moreover, Minch (2011) thinks that it is the legal responsibility of a company to perform
its business in accordance to the laws and regulations enacted by the government of UK.
Therefore, government has also introduced the laws related to environmental protection and
sustainable development. For this aspect, company should be socially responsible towards the
protection of environment. Thus, it thinks that company must consider the social responsibility
as the law of a company. Along with that, he has also explained that any business cannot perform
their activities without ethics. For this purpose, company has to carry out its business in an
ethical manner. In a similar manner, performing social activities is also a ethical responsibility of
a company (Lindgreen and Swaen, 2010). So for this purpose, organization must carry out the
social responsibility in order to remain ethical. The reason behind this is that, company has
perform every activity in an ethical manner so businesses has to carry out the corporate social
responsibility in order to save the environment in which it is doing its business.
Along with that, Jo and Harjoto (2011) explains that if the company will save the
environment then organization will get more resources to carry out their business. If the CSR
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activities will not aim towards the environment protection then the company could not generate
more profits for long term. Therefore, it is necessary for the company to carry out the activities
in a most effective manner. This is how CSR has become a most essential activity in a present
scenario. On the contrary, Ioannou and Serafeim (2010) argued that non-renewable resources
will never get renewed even though the company may utilize them or not. Along with that, he
stated that environment cannot be saved by mere working of organization. There are many other
factors which destroy the environment that is pollution by human beings, wastage throw by the
people on the road, air pollution by carbon emission from the cars, etc. therefore, only by
carrying out the CSR activity cannot save the environment until every human beings takes the
initiatives.
On the other hand, Servaes and Tamayo (2013) also stated that taking initiative for CSR
activity makes the business more cumbersome to operate. When the company makes the
provision and reserves for the environmental safety then separate budget has to be made by
them. Furthermore, the company has to make separate policy for it and then every employee
must be trained accordingly so that none of the employee can work against the environmental
policy. Therefore, firm has to carry out their business activities along with the CSR activities.
This create ambiguity in the minds of employees and becomes difficult for the management to
manage both the activities. Therefore, this creates confusion in the minds of employees as well
and this is how employee resist for the changes being made in the company's policy. Whereas,
Inoue and Lee (2011) argued that, CSR is one of the crucial activity of a company and this is
inherited in the business aims. If the company is not socially responsible then employees will not
feel satisfied. Therefore,it is one of the aspect to make the employee feel satisfied in the
company. Thus, every organization must aim towards the fulfilment of CSR activity.
In support of this Taneja, Taneja and Gupta (2011) explained that doing CSR activity in a
company will put the positive impact on the community. Thus, society will more likely avail the
services of Marriott Hotel because the company less polluting and destroying the nature.
Therefore, the CSR activity helps in retaining the customers and attracts lot more customers. On
the other hand, it has been argued that, if the firm carry out such activity than they have to incur
heavy cost which in turn will reduce the profitability of an organization. For this aspect, the firm
would get divert from the sole aim of generating high profit. Furthermore, the huge investment
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on this activity will not give any return in fact the company may get decline prior to the time.
However, Kolk and Van Tulder (2010) argued that cost incurred by the organization will not
give monetary benefits but it will great benefits in an indirect manner. Further, he stated that by
doing this activity, organization will have a benefit such as it will attract more and more
customers towards this company and retain them for longer period of time. This way company's
profit will raise or get maximize. Moreover, increase in the customer base will attract many new
investors because the company has start earning more profits then ever before. This way, more
shares will be sold which in turn would increase the share prices. Along with that, shareholder's
value will get maximize. Thus, it infers that, in an indirect manner company can generate high
benefits in both monetary and non-monetary aspect (WORK, 2011). Thus, it can be said that
corporate social responsibility is a most important criteria which is to be done by the company in
order to perform in a best manner.
The thoughts of Sprinkle and Maines (2010) is that company must do the CSR activities
in order to avoid the government intervention. If the firm is carrying out the activities as per the
stated laws and regulations then government will less interfere in the economic working of a
firm. Along with that, in order to get the recognition from the government the company has to
focus more on the environmental protection and sustainability of a nature. This way, company
can survive for a longer period of time. By performing this activity, a firm could achieve its basic
aim of maximizing profits. Along with that, company will also get more customers, more
advanced suppliers and if the customers number will get increases then the production cost of the
company will start decreasing which is positive aspect for the company. This way company can
overcome the cost incurred on the CSR activities (Green and Peloza, 2011).
CONCLUSION
After preparing this report, it has been concluded that Corporate Social Responsibility is
a most crucial activity in a contemporary world. Further, it has been debated that CSR can be a
benefit for the company or it can be a major cost for the company. Though it act as a social cost
for the organization which reduces its profit but along with that it benefits the firm in a numerous
manner. Some author gave their viewpoints that, CSR is not an activity which is to be carried out
by corporate but it is an activity of a government to do good for the society. Critics also stated
that while doing the CSR activities, company get diverted from their main purpose of generating
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and maximizing profits. For this aspects, they thinks that CSR should not be carried out by the
organizations. On the contrary, some authors favours this activity and thinks that companies
must carry out such activities in order to stay ahead in the competition and create competitive
advantage. Furthermore, they also stated that, it is an ethical responsibility of every firm to
protect their environment and do the sustainable development. If they do such thing then
customer's base will get increase and also more investor would get attracted towards the
organization to invest. Along with that, there will be less interference of government in the
company. Additionally, company will get more resources to design their business activities.
Therefore, it has been concluded that every organization must aim towards the performance of
CSR activities as the benefits received will be more then the cost incurred.
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REFERENCES
Journals and Books
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-Economic Review. 10(1). pp.3-
28.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic Management Journal. 35(1). pp.1-23.
Du, S., Bhattacharya, C. B. and Sen, S., 2010. Maximizing business returns to corporate social
responsibility (CSR): The role of CSR communication. International Journal of
Management Reviews. 12(1). pp.8-19.
Gainer, B., 2010. Corporate social responsibility. In Third Sector Research. pp.187-200.
Green, T. and Peloza, J., 2011. How does corporate social responsibility create value for
consumers?. Journal of Consumer Marketing. 28(1). pp.48-56.
Inoue, Y. and Lee, S., 2011. Effects of different dimensions of corporate social responsibility on
corporate financial performance in tourism-related industries. Tourism Management.
32(4). pp.790-804.
Ioannou, I. and Serafeim, G., 2010, August. THE IMPACT OF CORPORATE SOCIAL
RESPONSIBILITY ON INVESTMENT RECOMMENDATIONS. In Academy of
Management Proceedings. 2010(1). pp.1-6.
Jo, H. and Harjoto, M. A., 2011. Corporate governance and firm value: The impact of corporate
social responsibility. Journal of business ethics. 103(3). pp.351-383.
Kang, K. H., Lee, S. and Huh, C., 2010. Impacts of positive and negative corporate social
responsibility activities on company performance in the hospitality industry.
International Journal of Hospitality Management. 29(1). pp.72-82.
Kolk, A. and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development. International business review. 19(2). pp.119-125.
Lindgreen, A. and Swaen, V., 2010. Corporate social responsibility. International Journal of
Management Reviews. 12(1). pp.1-7.
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Minch, M., 2011. Corporate social responsibility. In Encyclopedia of Global Justice.pp.195-197.
Mishra, S. and Suar, D., 2010. Does corporate social responsibility influence firm performance
of Indian companies?. Journal of Business Ethics. 95(4). pp.571-601.
Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value:
The role of customer awareness. Management Science. 59(5). pp.1045-1061.
Sprinkle, G. B. and Maines, L. A., 2010. The benefits and costs of corporate social
responsibility. Business Horizons. 53(5). pp.445-453.
Taneja, S. S., Taneja, P. K. and Gupta, R. K., 2011. Researches in corporate social
responsibility: A review of shifting focus, paradigms, and methodologies. Journal of
Business Ethics. 101(3). pp.343-364.
WORK, W. C. Y., 2011. Corporate Social Responsibility. Routledge.
Online
Corporate social responsibility, CSR. 2016. [Online]. Available through:
<http://www.nktphotonics.com/company/corporate-social-responsibility-csr/>.
[Accessed on 28th March 2016].
Environment. 2016. [Online]. Available through: <http://www.marriott.com/corporate-social-
responsibility/corporate-environmental-responsibility.mi>. [Accessed on 28th March
2016].
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