An Analysis of Corporate Social Responsibility in Hospitality Sector

This report delves into the critical role of Corporate Social Responsibility (CSR) within the hospitality industry. It begins by highlighting the importance of corporate sustainability, given the industry's significant environmental impact through resource consumption and emissions. The report then explores various sustainability issues, including environmental concerns such as energy consumption and waste management, social aspects like staff training and ethical sourcing, and economic considerations related to cost savings and profitability. It examines how these issues impact the profitability of hospitality businesses, emphasizing the benefits of adopting sustainable practices, such as improved brand image, cost reduction, and enhanced employee engagement. The report also provides an overview of how sustainability practices can be implemented, including the adoption of green initiatives and the impact of these initiatives on the overall business operations. The report concludes by underscoring the need for the hospitality industry to embrace CSR for long-term environmental and economic sustainability. The report also emphasizes the importance of sustainable practices in the hospitality industry, including the environmental, social, and economic impacts.

Running Head: CORPORATE SOCIAL RESPONSIBILITY IN HOSPITALITY INDUSTRY 1
Corporate Social Responsibility in Hospitality Industry

Corporate Social Responsibility in Hospitality Industry 2
Abstract
With the rapid exploration of the natural resources and the energy consumption, the business
organizations have realized that the future is insecure. It is also important to handover the earth
in the same conditions as today to the future generations. It is necessary that the business
organizations do not harm the environment with the business operations. The corporate
sustainability is important as the operations of the business organizations is negatively impacting
on the environment. It is important to minimize these practices. The sustainability practices can
also enhance the brand image of the organization. Hilton chain of hotels also implements
sustainability practices in their business operations. There are several environmental, economic
and social issues in the sustainability management. The hospitality industry is major in the
emission of pollutants and energy consumptions. Therefore, it is necessary for the industry to
take some significant steps to overcome this situation.

Corporate Social Responsibility in Hospitality Industry 3
Table of Contents
Abstract.......................................................................................................................................................2
Introduction.................................................................................................................................................4
Importance of Corporate Sustainability.......................................................................................................4
Sustainability Issues in the Hospitality Industry...........................................................................................5
Environmental Issue................................................................................................................................5
Social Issue..............................................................................................................................................6
Economic Issue........................................................................................................................................6
Impact of these Issues on the Profitability of Hospitality Industry..............................................................6
Example of Hotel Practicing sustainability...................................................................................................8
Importance of Corporate Sustainability Management in the Hospitality Industry......................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Corporate Social Responsibility in Hospitality Industry 4
Introduction
Currently, sustainability is the most important issue in the hospitality industry due to the
significant negative impacts of the operations of the hospitality industry on the environment. In
the recent years, there has been a boom in the hospitality industry due to higher per capita
income. The activities in the industry creates burden on the local economy, result in higher
consumption of the local resources and degrade the natural environment of the tourist places
(Steurer, Langer, Konrad &Martinuzzi, 2005). These issues have brought the attention of various
national and international entities and organizations towards the role of the hospitality industry in
the environmental degradation.
In the essence, the present report discusses the issue of sustainability in the hospitality
industry. As hospitality is one of the major industries in the UK’s economy, it’s important that
the hospitality industry follow the sustainability practice so that there is minimal negative impact
on the environment. The present report will also discuss various sustainability issues in the
hospitality industry which includes the environmental, social and economic issues which arise
due to lack of sustainability management in the organization. These sustainability issues also
play a critical role in the profitability of the company. The report will also investigate the impact
of the sustainability practices on the profitability and the business of the organization. At last, the
report will also shed light on the importance of thee corporate sustainability management in the
hospitality industry.
Importance of Corporate Sustainability
The hospitality industry is one of the largest industries which contribute to the global
carbon emission. The recent changes in the tourism industry are also raising concern for the
complex environmental challenges of the firm’s activities. There are also several indirect impacts
of the tourism industry on the tourism industry. For instance, the short and medium distance
flights among the tourists have exponentially increased the carbon emission. The increased
number of trips to the natural reserves increases the disruption in the ecological balance. It also
raises questions regarding preservation and conservation of the natural resources (Jones, Hillier,
& Comfort, 2016). There are also multiple, less visible environmental impacts of the tourism
industry. It includes high energy used to cool down or to heat up the rooms and facilities in the
hotels. It also generates waste in large volume, requires large quantity of water and there are also
other negative impacts of building and expansion facilities. These issues have increased the
importance of sustainability in the hospitality industry. Currently, the green initiatives and the
issue of sustainability have changed the hospitality industry. The government has also become
more aware and forcing the business to adopt and implement environment friendly policies.
There is also increased consciousness of the customers as well as the employees regarding the
green initiatives and the sustainability which has increased the importance of the sustainability

Corporate Social Responsibility in Hospitality Industry 5
practices in the hospitality industry (Benavides-Velasco, Quintana-García, & Marchante-Lara,
2014). The hotel operators are also held accountable for the global citizenship standard.
Therefore, it is the significant responsibility of the hotel organizations to adopt sustainability
practices on a long-term period. Being part of the community, it is important for the hotel
organizations to contribute to the environmental-wellbeing and positively contribute to the future
endeavors of various stakeholders (Molina-Azorín, Claver-Cortés, Pereira-Moliner, & Tarí,
2009). Over the last few years, various hotels have gone green and are demonstrating several
different sustainable practices for the efficient operation of their properties. However, there are
several discouraging factors including the budget restraints and capital cost which can increase
the cost to the organization.
Being part of the largest industry in the world, hotel industry should be pioneer in the
environmental sustainability management. Over the past years, the human activities including
that of the hotel industry have drastically impacted on the ecosystem of the earth. However, in
the present, the negative influence all these activities can be shown on the ecosystem of Earth.
As hospitality industry is one of the largest service industries, it is one of the significant
contributors of these environmental issues. The recent boom in the tourism industry has also
contributed to the rate of climate change in the country. The human footprint and various
artificial activities has disrupted the biogeochemical cycle which has remained unchanged over
the last centuries (Luo & Bhattacharya, 2006). The large and metropolitan cities have
irresponsibly consumed the natural resources and the limited water supply resent in the earth.
The manmade activities have also contributed to the wastage of resources and have contributed
to the changing climate. With the depletion of the natural resources, it is important to identify
renewable resources which can be either in the form of renewable energy resources, water or the
raw materials.
Sustainability Issues in the Hospitality Industry
Environmental Issue
As discussed in the above section, the hospitality industry has significant impact on the
environment. These influences are ranging from the environmental impacts to the social and
economic impacts. There are a large number of environmental impacts of the hotel industry. The
inflow of the tourists from different destinations increases thee consumption of the petroleum
and or the fuel. Other than that, the tourists’activities disrupt the ecological balance of the
tourists’ destinations. A large number of natural reserves and wildlife sanctuaries are categorized
as tourists’ destinations; however, significant tourism activities in these places can create
environmental pollution. Hotels are also a part of the tourism industry. However, in order to
provide brilliant services to their customers, they use natural resources in an excessive manner. It
negatively influences the environment (Sen, & Bhattacharya, 2001). The major challenges with
the hotel industry are energy consumption, water conservation and the waste management. The

Corporate Social Responsibility in Hospitality Industry 6
waste produced by these organizations is enormous in size and it is important to implement some
strategies for the proper management of waste.
Social Issue
In the business environment, social sustainability refers to the identification and
management of positive and negative business impacts on the community. It improves the
quality of relationship and engagement with the stakeholders. In the hotel industry, the issues
related to the social sustainability are the sustainable procurement, environment quality and the
staff training programs. The indoor environment quality refers to the provision of high quality
and hygienic air and indoor environment. The organization should focus on chemical cleaning of
the air and the building so that a safe and hygienic environment can be provided to the
customers. The staff training programs are also important for the improved performance and high
level of employee performance (Hansen, Dunford, Boss, Boss, & Angermeier, 2011). The
organizations in the hotel industry can also adopt programs and certifications. In the hospitality
industry, the environmental programs can be categorized in three broad categories, namely, the
environmental programs focused on uplifting the standards of the hospitality industry, the
programs targeted towards green building design and operations and certifications associated
with adoption and use of green products (Bonilla-Priego, Font, & del Rosario Pacheco-Olivares,
2014).
Economic Issue
There are also economic sustainability issues. It means that the organizations in the hospitality
industry can save their expenditure by adopting sustainability practices. Moreover, the
realization that there are significant financial returns of the sustainability practices is the biggest
motivation for the private sector. The energy efficiency has several opportunities for cost saving
in the areas of water consumption and waste management. Several sustainable strategies can be
implemented which can optimize the performance of personnel and machinery. The construction
of the green building and the use of green products also drive the cost of operations low for the
business organizations (Benavides-Velasco, Quintana-García & Marchante-Lara, 2014). They
also provide a number of fiscal and economic incentives such as tax waiver, discount in
development fees, cash incentives, grants, low interest loans and grants to cover the green design
of the products.
Impact of these Issues on the Profitability of Hospitality Industry
The sustainability practices have an immense impact on the profitability and the overall
efficiency of the hotel industry. Although a large number of hotels, restaurants and other
institutions in the hospitality industry have been reluctant in adopting the sustainability practices
due to the budget and monetary constraints, it increases the profitability of the organizations in
the long run. In the present, the tourists and other consumers of the hospitality industry have
become aware regarding the environmental impact of the hospitality industry; therefore, adopting

Corporate Social Responsibility in Hospitality Industry 7
sustainability practices can increase the brand image of the organization. The use of natural
resources in a more sustainable manner can create more important contribution to the
biodiversity contribution. The most important benefit with the adoption of sustainable practices
is that it can be used to appeal to the engaged customers. Currently, most of the consumers have
become aware regarding the sustainability, biodiversity conservation, healthier environments and
products. The company can engage these customers and encourage them to use the products of
the organization (Martínez, Pérez, & Rodríguez del Bosque, 2013). Another significant benefit of
the sustainable practice is to reduce the cost to the organization. The adoption of the sustainable
practices can reduce the operating cost, reduce the expenses, expenditure in thee resource
procurement and disposal. The adoption of the sustainable practices can reduce the overall
expenditure to the organization in the long run. The hotel organizations can use sustainable
energy resources such as solar energy. There are several social impacts of profitability on the
hospitality business. For instance, the unsociable working hours and erosion of the traditional
values of the organization.
Although the initial setup cost for the solar energy equipment is very high, the organization can
save a lot in the long run. The adoption of the sustainable practices can improve the quality of
the destination. It can create tourism destinations rich in biodiversity, create attractive tourism
destinations which appeal to the customers and preserve the natural beauty of the place. It can
also create scope for the biodiversity-based recreational activities. When an organization engages
in sustainability practices, it can create a positive organization culture within the organization.
The employees feel strongly motivated and feel responsible for the environment (Pereira-
Moliner, Font, Tarí, Molina-Azorin, Lopez-Gamero, & Pertusa-Ortega, 2015). They are proud of
the initiatives of the organization and become more engaged with the well-being of the
organization. The social responsibility activities increase the engagement of the employees with
the organization and they become more concerned with the productivity and the achievement of
goals of the organization. The employees of the organization increase the motivation of the
employees and they become more productive and loyal. It reduces the employee’s turnover and
increase the overall efficiency of the organization. The sustainable practices of the organization
also secure the license and increase the goodwill of the organization towards different
stakeholders (Park & Levy, 2014). The implementation of the environmental practices ensure
that a hotel cares for the environment wherein it operates and it demonstrates that there is
increased support from the government, staff and the local communities. The profitability drives
the organization and they ignore the social, environmental and the economic impacts. There are
several negative impacts on the environment as well such as air pollution and waste emission.
The investors and other stakeholders of the organizations also remains assured that their funds
and the financial resources remains in good hand and will be invested prudently. The most
important benefit of the adoption of the sustainable practices is that it will reduce the energy
consumption and the waste created in the local community. It can be critiqued that the hotel
industry is one of the largest consumer of energy as it tries to provide all the necessary comforts

Corporate Social Responsibility in Hospitality Industry 8
to the guests. The hotels provide several services, facilities and amenities to its guests to attract a
large number of customers and build customer loyalty (Kang, Lee & Huh, 2010). The hotels are
one of the largest consumers of the energy. A significant amount of this energy is wasted;
therefore, it is important to adopt practices which can reduce the energy consumption in the
organization. The hotels also have high demand for energy in different areas for cooling, heating,
lighting and other purposes. With the help of sustainable means, the organization can reduce its
expenditure on the energy requirements of the organization. It can utilize various renewable
sources of energy which includes solar power, wind power, hydropower and geothermal power
to reduce the energy consumption in the location. The economy will also suffer due to the drive
of the profitability of the company. It will result in price wars and the product quality will
degrade with the declining prices. Other than that, the companies can also engage in unhealthy
competition because of their drive for profitability.
The water conservation is also important for the organization to reduce its expenses. In addition
to it, it can also reduce the waste generated in the hospitality industry. The hotel organizations
can utilize different ways such as recycling and efficient resource use to reduce the generated
waste in the organization (Benavides-Velasco, Quintana-García, & Marchante-Lara, 2014). In
addition to it, the organization can also utilize different training, employee involvement and
recognition programs so that recycling and waste management practices are integrated in the
operations of the organization.
Example of Hotel Practicing sustainability
The sustainability practices also have a strong impact on the retention of the employees. The
companies can better attract, motivate and retain the employees with the CSR activities. Hilton
hotel is a popular example of a company in the hospitality industry which has implemented good
CSR strategies (Hilton, 2017). The hotel chain has implemented a corporate responsibility
performance measurement platform which analyzes how the various hotels manage the energy,
water and the waste in the organization. The hotel chain has utilized data from the past to create
the training for the hotels. It reduces the consumption of the energy in the hotels which increases
the cost-efficiency of the organization.
Importance of Corporate Sustainability Management in the Hospitality
Industry
In the present times, there is consensus regarding the role of the business institutions
which goes beyond making profits and extending to a responsible member of the society. The
corporate social responsibility initiatives of the organizations assist them in adopting a socially
responsible stance towards the society. The concept of corporate social responsibility states that a
company should go beyond its profitability and the benefit of its investors and customers and
should be considerate of the interest of large society and community. The hospitality industry,

Corporate Social Responsibility in Hospitality Industry 9
being one of the largest consumers of the natural resources and having a large footprint no terms
of employment is at the forefront of implementing practices which minimize the negative impact
on the business and the environment. The business organizations in the hotel industry are trying
to reduce the impact of business operations on the environment. It includes increasing the fuel
efficiency in the airlines industry, reducing the food waste in the restaurants, and increasing the
strategies related to water and energy saving in the hotels. Although CSR initiatives are
voluntary and on the discretion of the organization, there are several benefits of engaging in
these activities including several financial returns. The involvement of the hotel in CSR activities
can increase the brand image of the organization and can increase the loyalty of the customers
towards the organization. The services are intangible and the perceived quality is dependent upon
the goodwill of the firm (Luo & Bhattacharya, 2006). The CSR activities create a brand image of
the organization which creates differentiation and create competitive advantage in a highly
competitive industry such as the hospitality industry. The association of the organization with the
cause-related social issues can create new customers and maintain them for long-term. With the
development of reputation from the social initiatives, the customers will be more willing to pay
premium prices for the services. Different demographic segments have created huge demand for
the green hotels; therefore, it is important to take into account sustainability while making
business decisions.
Conclusion
It can be concluded that the socially responsible activities are essential for the business
organizations at the present times. The human activities are having a strong impact on the
environment and degrading it gradually. It is important that the organizations adopt sustainable
behavior and reduce the negative impact on the environment. The hospitality industry is one of
the largest service industries and therefore, the impact on the environment is also immense. It is
important that the business organization in the hospitality industry adopts CSR activities to
increase their efficiency and improve their brand image. The business organizations in the
hospitality industry can use sustainability practices to reduce their expenditure. The use of
energy resources such as solar power, wind power or hydro power can reduce the cost to the
organization. Moreover, the energy efficient and waste management practices can reduce the
overall cost to the organization in the long run. There are also social as environmental issues
related to the sustainability management. A business organization can train its employees so that
they can efficiently work on different aspects related to sustainability. They can also join special
charitable causes to show their stand or responsibility towards the society. It will increase the
brand image of the organization. The hotel can connect and attract different niche customer
segments. Other than that, the organization can also increase the engagement of the employees
with the organization with the CSR activities.

Corporate Social Responsibility in Hospitality Industry 10
References
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Corporate Social Responsibility in Hospitality Industry 11
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