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Corporate Social Responsibility Of Hospitality Industry Tourism Essay

Paper Type: Free Essay Subject: Tourism
Wordcount: 5022 words Published: 1st Jan 2015

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Corporate Social Responsibility is the means by which a company justifies their existence in order to gain success by showing an interest in taking care of the people and the communities that surround them. Corporate Social Responsibility has the purpose of giving to the society as a whole, an impact that is positive which ensures that it is sustainable for quite some time. The hospitality industry should tightly uphold Corporate Social Responsibility which is also referred to as social responsibility. Corporate Social Responsibility ensures that the society is up to date with events that take place in the society.

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The society consists of the shareholders to the companies and hence if the society benefits they benefit too. Corporate Social Responsibility helps the companies to create a good image to the public and hence market themselves. Recently so many students are taking hospitality courses, and research carried out has shown that they have come to know about the industry through Corporate Social Responsibility. Most of the students are studying about management of hospitalism. The hospitalism industry requires understanding with a high level of skills in order to deal with the management strategies that are required. The hospitality industry also attracts many people because of the hefty pay that employees get.

This industry has many business people running different firms in it. Majority of the people who are in this firms do not look at the industry as being sustainable, and hence they make their short term profits and leave the damage to the society, this has greatly spoilt the image of the industry to the society. These firms should be responsible about the environment if they want the industry to sustain itself through conservation of resources. This way they should be in a position to take care of the pollution that they cause and the waste released to the environment that is toxic.

Companies that have upheld corporate social responsibility are doing very well in the market because the society wants to support the companies so that they can continue to do good for the society. Corporate Social Responsibility is about conducting business according to the code of ethics that are laid down for the industry. The society has expectations from the hospitality industry, and it is only fair that they should be met. Corporate Social Responsibility makes the firms in the hospitality industry to strictly obey the laid out rules so that they do not cause damage to the society. However the laws and policies set by the government need to be good to effect Corporate Social Responsibility.

So many brands are widely known because of the place where they are produced, which can be in another country or continent for example people believe that items manufactured in the United Kingdom are of a better quality than those produced in African countries. The sales strategy that some companies use to advertise their products has enabled them to be known in the whole globe. Thus Corporate Social Responsibility is the way to recognition for many companies if they want to be known globally. These firms in the hospitality industry are assessed on their financial strengths using the financial statements.

The financial position of a company determines how much the brand is going to be recognized. Hospitality companies with high capital tend to attract so many shareholders because the shareholders have trust in the survival of the company and hence they love to be associated with such a company. Above all things the environment is the focus of every company especially those in the hospitality industry. A conducive environment is important for the hospitality industry because it ensures a good regulation for the weather. With so many hospitality companies neglecting the negative effect that  they are subjecting the environment to ,they are hence  encouraged to look for other companies in the hospitality industries that they can group up with so that they can be able to address the negative impact on the environment.

Corporate Social Responsibility helps in the overriding of firms in the hospitality industry. The name that a company carries to the public has always proven to be an asset that is valuable. The other thing that has proven important is the value of the brand. With these two aspects Corporate Social Responsibility comes in place to assist in creating a good name for the company or the firm it makes the customers to have trust in the company and also construct loyalty among the employees and even the shareholders. Majority of hospitality companies express corporate social responsibility by making a contribution to causes that are good in the society.

The hospitality industry should be in a position to put into consideration equality in respect to gender in order to avoid discrimination at work. The employees in this industry need to be very well trained to ensure that they are in a position to serve clients well. Corporate Social Responsibility helps to take care of some employees who are often vulnerable to discrimination such as the immigrants and people who are physically incapacitated. The hospitality industry needs people who love to work in the industry, this is because it helps them in their hiring of employees for the reason that as much as the salary is good employees want to work for companies that have the interests of the community by being able to help decrease the levels of poverty that are being experienced by some countries.

Corporate social responsibility helps to motivate stuff and make them want to continue working in the industry. Many hospitality companies who have engaged in Corporate Social Responsibility events ensure that they include the activities in the company reports that are prepared annually.

The International Standardization Organization (ISO) wants to create standards that will apply to hospitality and other companies that will ensure their involvement in the corporate social responsibilities. These standards once created will help in the conversation of the environment. The hospitality industry deals a lot with the lifestyles that people live. It is however supported by tourists and hence it is important to create a good name for itself in order attract more customers. The hospitality industry is encouraged to offer services that the customers demand from them. Corporate social responsibility prevents the hospitality industry from embezzling funds.

Millennium hotel group UK contribution to CSR

Since the world travel and tourism council released reports on  the contribution that the  hospitality industry  to the economy in form of the high revenues that they fetch for the country, the participation in corporate social responsibilities is almost inevitable. The millennium groups of hotels have learnt to merge focus of the business with ethics that are highly integrated to responsibilities. They have also come to the realization that, when the societies are involved in the hotels operations, they help them to gain leadership behaviors that guide them in managing their small businesses and most of all they have helped the society acquire styles of leadership that are sustainable.

The millennium hotels in the events of promoting the corporate social responsibilities

have been able to interact with communities from different backgrounds. They have interacted well and made some of the best relationships that are cross sectored and across the various cultures at the same time. The creation of such relationships helps in sharing ideas that are good for business. This ideas help the organizations know what is expected on the inside of the hotel management and even on the outside. Also about leadership, they learn how to transform the various styles of leadership that they use to suite them.

Some of the benefits that the millennium hotels have got are that they are able to know some of the factors that are ultimate for dealing with Corporate Social Responsibility. The millennium hotels have also been able to carry campaigns which are encouraging the other business that in the hospitality industry to get involved in helping the society move forward. The millennium hotels have been able to learn the gains that accrue to them because they have created a brand name for themselves globally and have also been assisted in carrying out their ways of marketing the products that they offer. They have been in the front line as far as the protection of the environment is concerned because they have very developed systems of disposing off the wastes from their premises.

They have helped to shape the society regarding ethics that people should uphold. They have taught the society that offering help at the right time is important and one should help where he or she can. There are some industries that offer help when it is too late and this makes development very expensive. The millennium hotels are among the top in the list among Corporates that have been involved greatly in the corporate social responsibilities.

The millennium hotels have been offering corporate social responsibilities for a long time now and hence they have a lot of knowledge as far as corporate social responsibility is concerned. They are therefore good in dealing with challenges that come as far as corporate social responsibility is concerned.

The millennium hotels have created partnership with some agricultural corporations to help in the production of foods that are quality and that fetch the country a lot of revenue. Also so that the hotels can have a diversification in foods that they offer which are not commonly found in other hotels. The agricultural industry faces a lot of challenges as far as climate is concerned and hence in order to ensure there is food security in the United Kingdom. The millennium hotels help them by offering trainings for them that help them to use the best agricultural practices to enable them use irrigation and help in the storage of water in the soil.

The millennium hotels encourage conservation of resources by offering funds to create awareness to the public not to waste resources that are available such as water and gas because that helps to save a lot of money. Besides partnering in agricultural industry they have also participated in the summits which are about conservation of energy. Some businesses in the private and public sector are said to be consuming a lot of energy in the processing of their products and hence they are being encouraged to come up with ways that help in the conservation of the same.

The millennium hotels have done a commendable job in Corporate Social Responsibility and were recently given an award in the global corporate social responsibility summit and awards for helping and participating in helping the society grow. They have helped the society to solve some of the problems that they can handle. This is very good for their image because people get to learn about them and recommend the hotels to friends or tourists visiting United Kingdom from other countries. They have also paid a lot of concern on the climate change issue which is caused by global warming.

The millennium hotels are willing to support campaigns on climate by getting the government to make new policies that are on companies that cause degradation of the environment. The millennium hotels are also on the fore front in addressing issues concerning human rights violations especially of the employees who work in the hospitality industry. There have been cases of violations for rights concerning employees joining the trade unions. Some of the big hotels in the United Kingdom did not want the employees to join the trade unions so that some of the issues that need to be addressed can be looked at.

Stakeholder’s involvement to CSR of hospitality industry.

The stakeholders of the hospitality industry has played a big part in promoting Corporate Social Responsibility by  ensuring that the manner in which it is conducted, is fair to all persons in the society. The stakeholders have helped to reduce the rates of pollution on the environment. They have also helped in providing solutions to the problems that were facing the environment. They have helped the companies to translate the theories which are related to corporate social responsibility to practice. They have helped in the application of good leadership in the hospitality industry. The stakeholders have also helped the hospitality industry to use innovation which in order to keep with the changing times as the technology continues to advance.

The advancement in technology helps it to be sustainable. The stakeholders help in the preservation of cultures and some of the tradition which act as tourism attraction. The stakeholders have also helped in the conservation of water catchment areas and valleys that are important for tourism. The hospitality industry contributes to the economic growth of the country in a very big way. The stakeholders have helped countries to see that they follow and meet their mission. The stakeholders help to connect the industry internationally and hence making the businesses grow. The stakeholders in the hospitality industry ensure that the employees undergo intensive training because the hospitalism industry is more about public relations.

The stakeholders are very concerned about the working conditions that the workers work in and also about the level of dedication that the workers have towards their work. The stakeholders are also concerned about the kind of equipments that the workers use in order to deliver quality services. The stakeholders help in reaching at a decision that is suitable for the industry or about giving suggestion that would help in providing quality services. All this is aimed at improving the corporate social responsibility towards the employees in the hospitality industry.

The stakeholders have not at any point stopped to support the hospitality industry and that is why majority of companies and business are taking responsibilities of the environment and also of the society. Research carried out, about  the hospitality industry regarding corporate social responsibility  show that it can integrate well with tourism. Some of the areas that are conserved for use by the hospitality industry to attract tourists are done by the permission from the stakeholders with an agreement of making them to be part of the projects that they carry out. The hospitality industry is also integrated with the media industry because of the advertisements that are carried out about the industry. The industry helps in the development of the communities that are around areas that have tourist attraction sites.

The hospitality industry is being challenged to construct communities that are stronger for the changing generations where things are done in a different way than they are normally run. The stakeholders offer a lot of help when it comes to long term business partnerships. The stakeholders look at advancing the corporate social responsibilities in order to have an impact on the community and also help make changes in people’s lives that would not have been able to do make it in life without a little help. The stakeholders encourage the public to get involved in volunteerism so that the public can be able to understand how the concept of corporate social responsibility works.

Volunteerism helps give people an insight about life and makes them ready to always help. The spirit of helping and giving should be included in the school curriculum because majority of student do not understand what volunteerism is all about. People who have worked as volunteers at any point in their life make very good managers and hardly embezzle funds from the company. The hospitality industry is surrounded by compassionate people  who love to travel and are ready to learn the diverse cultures that the world has to offer, that is why hospitality  courses integrate very well with corporate social responsibility.

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The stakeholders like to work with leaders who are ready to listen to suggestions that people have because sometimes they turn out better than anything that they would have come up with. The stakeholder’s best know the areas in the society that need to be given attention by the corporate world such as the hospitality industry. The stakeholders write proposals to the business in the hospitality industry to guide them on projects that they should undertake which make changes in the society. The stakeholders ensure that they follow up with their proposals because when they go through they are called upon to undertake the projects. Majority of the projects are usually community based projects and hence every person in the society is entitled to the services that are going to be provided.

Theories that support corporate social responsibility

There are theories that support Corporate Social Responsibility. These theories help in guiding companies about the responsibilities that they should have. Mostly the theories have an impact on the society, the economy of a country and last but not least the environment in which we live in. The theories that influence corporate social responsibility are Clarkson theory, stakeholder theory and the shareholder theory.

The stakeholder theory is about the stakeholders of the company who own of the company in their own way because without them then the company would not be in existence since they greatly contribute. This theory talks about recognizing them and making them feel important so that they can greatly support the company. The hospitality industry needs to put the stakeholders into consideration because they help in marketing, by recommending the products to new customers. This theory is all about the business ethics that should be adhered to. The stakeholders are the basis for a company when compared to the stockholders.

However this theory faces contradictions based on the use of the profits that companies make. The argument behind is that whether the gains made by the company should be given first be given to the stockholders. The extension of the companies’ responsibilities to the society who are not stockholders or stakeholders is very important. The stakeholder theory besides considering the non stockholders to the companies also considers the employees to the companies, the communities that are localized, the institutions that are responsible for offering finances to the public in form of loans the customers and finally the organizations who are given tenders to supply goods and services to the hospitality industry.

The stakeholder theory helps the company and industry managers to be able in to enter into the business environment that is bigger. It also teaches them to know the various ways of taking care of business and effect procedures that are important to the stakeholders. It also helps the managers to make major decisions about the company and think through about the impact that such decisions will have on the people in the society or all the stakeholders. This theory is dynamic because it gives room for changes in the companies and the companies will also need to adapt to these changes.

However, when the company makes it a priority to increase the wealth of the stockholders, the stakeholders to the company can become sidelined and this not good for business. The stakeholder theory says that it is not ethical to fail putting into consideration the stakeholder’s interests. Companies who overlook the stakeholders look at the benefits of the company in a short term manner compared to the companies who look at making or getting benefits that are long term for sustainability. This theory says that it does not matter whether the company is in business for a long term period or a short one because either way they are supported by the society.

Stakeholder theory helps corporations to define their reasons for existent and what they really are. It helps to analyze that, the companies exist because of the shareholders that they have. It says that with this aim the company surely prospers. Companies and industries are viewed as large organization even if they are not big enough because of the social integration that they have with the society. Proposals have been written to the United Kingdom government requesting them to include the section of corporate social responsibility in the constitution so that the industries and businesses in general can be of a common good to all citizens. The government has not made it mandatory for companies to put into application the stakeholder’s theory but it highly recommends it for companies that want with the support of the society.

The Clarkson theory talks about the stakeholders but in a different classification. This theory classifies them into two groups; the primary stakeholders and the secondary stakeholders. This theory says that the stakeholders to a company have different interests in the company that they are members to. This classification enables the firms to be in a better position to develop its policies and more so its reputation. The firms will also be able to meet the benefits which accrue to them economically.

The shareholder or stockholder theory is about the people who have capital in the business. It says that the stockholders need to see that the profits generated by the company go to a good course such as charitable activities. These theories have supported the corporate social responsibility in many companies whether is it done in a formal way or not. These theories have acted as a key and eye opener to many companies because they have helped them understand the concept of giving back to the society as they seek to expand.

Many businesses face the challenge of knowing who they should give support to. They are torn between the stakeholders and the stockholders. The stockholders according to these theories only want the companies to participate in corporate social responsibilities when the company has made enough profit that can cater for such responsibilities. The stockholders do not like it when the company offers corporate social responsibilities on the expense of the stockholders. The conflict thus is still there as the companies keep on defining their policies. The companies also face the challenge of how far they should extend their responsibilities because there are companies who start foundations and support them for a long time and there are others who donate funds to onetime events that occur.

The theories all conclude with a form of business that the company should employ which allows them to become more responsible in how they do business. This theories have helped in sealing some of the gaps that exist in many companies which the business were finding hard to take care of because they were not conducting business in the right manner. Many companies forget that involving the customers in business is what makes them to seal the gaps in the economy and policies to companies.

A comparative analysis of millennium hotels UK and the organizations that are highly socially responsible

Globalization has in every way helped the hospitality industry to move forward and to help the society. They have helped in curbing inequalities that are experienced in the economy. The other organizations take a section of the profits that they have made in a particular financial year and give to an organization that help in offering of charitable activities. The markets in which the goods and services are being traded nowadays are local and hence this makes the private companies to become more obligated in offering corporate social responsibilities.

The global market operate socially nowadays because with the availability of internet stakeholders have the ability to post comments about the hospitality industries and the various organizations that contribute to the society. Sometimes the corporate social responsibility helps to tap investors, because investors like to invest in organizations that are conducting business legally and give back to the society. The other organizations like the millennium hotels in the United Kingdom do a research on what the customers want and hence take effect if what the customers want is possible.

So many investors have invested in the millennium hotels because they have shown stability which is justified by the management team that they have in place which gives the investors’ confidence. The way the millennium group of hotels in which run the business is so professional and hence the contribution in the social responsibilities.

Corporate social responsibility revolves about delivering what is in the mission statements that companies have. The millennium hotels in the United Kingdom have clearly shown this because they are not involved in scandals that other hotels face in the hospitality industry when customers complain about services that were offered. The millennium hotels are willing to build on assets that are not tangible because they give returns after an extended time. They are also are not afraid to effect changes when it comes to the structures that they have in the organization.

The other organizations face a lot scrutiny and delay when it comes to making changes that affect the management. The millennium hotels are at an advantage because all they have to do is create a good name through the services that they offer to the customers. They also have to intensively advertise the hotels so that many people can become aware. The millennium hotels have excellent booking services since they have offices in the airports and also have fantastic facilities for recreational. This way they help to create demand for the goods that are readily available.

The other organizations contribute to the corporate social responsibilities by training the local residents and offering them job opportunities. They teach them to be entrepreneurs because relying on being employed leaves a very small room for innovation. They are known to be very sensitive when it comes to gender issues. They employ women who are situated in the rural areas of the United Kingdom and also consider the youths who are just out of college and are looking for jobs. Most important they employ the people who are not skilled who are mostly based areas that are remote. They consider such persons when hiring workers because they know that the chances of them getting employed in places like the millennium hotels are very rare.

The millennium hotels are commended for being able to create job opportunities and to make wealth out of utilizing resources that are naturally and culturally held. The millennium hotels are concerned about the rising levels of poverty in some countries especially in Africa. Helping the society in order to reduce poverty is not concerned with the moral obligation that people have in the society. Countries that have high levels of poverty are said to pose insecurity in the hospitality industry. The hospitality industry in the developing countries is reported to grow at an alarming rate and hence there needs to be improvements so that the tourist or guests feel secure in those countries. There are so many cases of tourist getting robbed and even getting murdered in foreign countries or even residents getting hurt while in local hotels . The millennium group of hotels offers tight security to their guests.

The decline in the well being of societies that host some of the organizations makes the society think less of them. For those companies whose societies are well kept, the implication created is that the stakeholders are taken care of well. The millennium hotels are situated in very clean environments that guests would love to associate with. It is upon the government  to figure out  how the other organizations apart from the millennium hotels maintain cordial relationships with the stakeholders. The millennium hotels offer support to countries that are sometimes affected by war. International peace is very important for many businesses and not just the hospitality industry.

There is a great need to have programmes that are run by organizations from various industries so that they can come up with the creation of funds that are global. These funds are used to set up foundations and the rules of conduct that companies should use to guide them. This way this can help in creating an economy that is sustainable with time. These foundations can be used to protect the eco- system among other things. The other organizations need to come with a better strategy on how they will be responding to some of the issues, that the community needs to be addressed. These foundations should funded by long term businesses that are going to be operational for a long time so that they can assist the community more. This way they can generate very huge profits following the support from the society.

Corporate Social Responsibility will one day become compulsory for all the companies because the society is the backbone of the companies. The market forces continue to be stronger and thus making sure that every company is up to date with the current happenings in the world.

The other organizations are so focused on making profits for themselves such that they forget about the societies. They often violate the business ethics and hence most the times embezzle the stockholders capital. Majority of managers in this organizations are not honest since most of the time they run the business in the way they feel they should and not on how the rules state. Majority of this organization leave such responsibilities to the government.

 

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