Table of Contents:1) Introduction??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦..(3) 1.1) Corporate Social Responsibilities (CSR)2) CSR Issues??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦(3)2.1) Ethical issues. 2.
2) Employee rights2.3) Environmental issues 2.4)Service to society3) Challenges in hospitality Industry in relation to CSR??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦.(6) 3.1) Environmental issues 3.2) Labour issues4) Good CSR practices in hospitality industry??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦..(7) 4.
1) Apex Hotels 4.2) Scandic Hotels5) Advantages of good CSR practices in Hotels??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦….
(9)6) Motivational factors for applying CSR in hospitality industry??¦??¦??¦??¦??¦??¦.(10) 6.1) Goodwill 6.
2) Recycling 6.3) Environmental policies & Energy conservation 6.4) Philanthropic activities & Community development7) Good practices in Social Issues??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦.
.(13)8) Conclusion??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦(14)9) Referencing??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦??¦..
(15)Introduction:Corporate Social Responsibilities- CSR gain popularity in last few years as an idea. On the other hand, corporate social responsibilities is not a new concept (Friedman, 1970), has come to the importance in early 1990??™s. By applying CSR practices in company??™s work place, companies are here to justify their existence in terms to the service to community, environmental sustainability rather than only engaging in profit making exercise (Crook, 2005).
Companies are therefore has to behave as a good corporate citizen and behave in an ethical manner by taking the responsibility of the society and the environment t (Smith & Crane, 1992; Sparkes, 2002). There are so many dimensions to CSR. Corporate social responsibility is the working procedure of the company not only towards the stakeholders of the company their workers and the consumers but also towards the society, environment and even for the coming future generation and to help the NGO??™s, providing donation to charities and to promote environmental sustainability.But there are some criticisms of CSR also. According to Friedman (1970), one of the first to argue against CSR issues believed that it is wrong to think that profit making by the firm is entirely against the society. Companies create jobs to the people, provide services and goods and thus generate revenue to the nation and create value for the society.
Other suggests that CSR schemes implicated by the company is actually for building positive image of the company which is actually well directed PR activity rather than actual working towards the CSR issues.CSR Issues-Ethical Issues- Each organisation must behave ethically towards all stake holders, society, employees apart from their customers. There are many ethical issues for the hotels.
1. Safety and security of the guest.2. Safety and security of team members.
3. Keeping all the information of the guest safe and secure.4. Accessibility for all.Apex hotels in UK understand that every guest has different needs and they treat their entire guest in same manner. For this they make hotel facilities available and easily accessible to the entire guest. They also made their facilities easily accessible to all disable guests. For the guest with disability they include the services like designated car parking, accessible entrance to all hotel facilities, easily accessible bedrooms and WC??™s ( www.
apexhotels.com).Employee rights: Most of the focus on human rights in the tourism industry has revolved around labour laws and poor working condition of employees like long working hours, low pay cheques and more work, lack of job confirmation and satisfaction.
All organisations must take good care of all employees and protects their rights and the dignity of human being. Good practices in the field of employee rights are:1. Sign formal contracts with all the employees.2. To ensure health and safety of the entire employees, organisation must establish sound policies and guidelines.
3. Providing good salaries and other benefits to the employees.4.
Organisation must ensure that the working hours of employees should not be too long and proper breaks to be provided to the employees.5. Ensure that the working hours and the shift breaks should be according to the local laws and procedures.
6. Encourage women and other minorities to start working for their livelihood.7. Ensure proper care and safety and security of the employees8. Ensure proper communication system to inform all workers about their rights.Environmental Issues- Working towards the betterment of environment is very important issue in current scenario. Global warming is a very big issue in today??™s world. The day to day activities of the hotels results in Co2 emissions and emission of other toxic materials, which are very harmful to environment.
All the hotels are working towards the environment issues. Scandic is one of the leading hotel group which is very serious to this issue. Scandic short tern goal is to cut down CO2 emission by half by the end of 2011 and ensuring that in the process Scandic hotels has zero CO2 emission by 2025.Scandic set up a reporting system called SIR (Sustainability Indicator Reporting) in which Scandic start logging energy consumption, water usage and CO2 emission. Each month hotel reports all their consumption to SIR.Energy consumption of Scandic hotel since 1996Year Energy consumption (kWh/gn)1996 56.931997 50.
371998 46.121999 44.152000 42.012001 46.382002 44.932003 49.632004 46.652005 43.
332006 42.052007 39.662008 37.562009 40.142010 40.76Table: 1 Scandic Hotel, 2011Water Consumption in Scandic HotelYear Energy consumption (kWh/gn)1996 258.81997 235.441998 223.
711999 235.692000 224.322001 223.022002 230.332003 240.852004 225.412005 216.182006 210.
152007 210.492008 199.962009 204.272010 200.86Table: 2 Scandic Hotel, 2011Fossil CO2 emission in Scandic Year Fossil CO2 emission (Kg/gn)1996 3.8711997 2.
9941998 2.7751999 2.5892000 1.8972001 1.
8972002 1.642003 1.552004 1.3652005 1.2392006 1.1922007 1.192008 0.
952009 0.9082010 0.801Table: 3 Scandic Hotel, 2011Service to the Society- Society services is one of the main aims of Corporate Social Responsibilities. According to Logsdon and Wood (2002), main purpose of developing CSR is to shift power to the society from corporates, taken in mind the basic idea of human rights taking lead over corporate rights. CSR is the concept that ??™exist to guard against the undesirable consequences of the power imbalance in social structure??™ (Logsdon & Wood, 2002:179).
Apex Hotels is doing a great work to support the local communities in the area of the hotel. They also support local NGO??™s and charities by providing monetary help. The entire donation to these charities and NGO??™s are raised through guest, suppliers, and staff of the hotel. Each Apex hotel has some particular charities which is funded through support of the staff through a number of activities held by hotel and this is annually reviewed by the charity committees. (www.apex hotel.
co.uk) Challenges for hospitality management in relation to CSREnvironment issues: Hospitality industry is the one of the most energy consuming industry. They spent a considerable amount on energy resources like electricity, water consumption, heating and cooling sources.
In the earlier times there is a lack of recycling methods in hotels like bottles, glass, plastic and other energy sources. But fortunately hospitality industry is joining hands with other industries in going green ways which is a positive development in the field of corporate social responsibility.Since 1992 when the Rio Earth Summit held the debate on global warming and climate change has gain importance in hotel industry.
Green movement has much talked about matter in the Hotel industry worldwide. But the process of working towards environment sustainability is quite slow. Many large group hotels have started working towards the environmental issues but there are so many hotels seem not very serious towards these issues. Many hotel chains starts providing yearly environmental reports and there are the examples of Eco friendly hotels like Bloomfield house hotel, Bath, UK, Orchid hotel in Mumbai , Scandic group of Hotels and Victoria Hotel, Freiburg, Germany which are working towards low impact on environment.(www.sustdev.org).
Hospitality industry and hotels in particular considered as a major energy user and the hotel activities has a negative impact on environment. Heating systems and the electricity consumption are responsible for carbon di oxide emission and the emission of toxic chemicals such as sulphur di oxide and nitrogen oxide that has disastrous implication such as global warming and acid rain (Chan & Lam, 2002). A normal guest of hotel creates 1 kg of waste per night (Green hotelier, October, 2000) and consume large amount of water. By using best quality environmental managements tools hotel can reduce their dependence on natural resources and at the same time they can maintain high quality service standards.Labour issues- The travel and tourism industry employs around 238 million man power worldwide, representing 8.
4% of total global employment and generate 9.9 per cent of world GDP. According to reports by 2018, employment in the hospitality industry is expected to grow further around 296 million people.
Hospitality industry largely depends on the man power. The growth of the company considerably depends on the skills of the employees and their work ethics. That is the reason for the high employee turnover in the hospitality industry which is the most challenging aspect of every hotel (www.ilo.org).
Turnover in hospitality industry is different in different countries. It can be ranges from 3% to 4 % in developing countries to the high in developed countries (Mahesh, 1993, Pizam and Ellis, 1999). The cost of turnover is very difficult to manage in hospitality industry, not only in the monetary case but it also cast enormous pressure on Human Resource to keep the highly skilled staff as they are in high demand in hotels. There is not a best way to stop the employee turnover but it can be restricted to minimal level by focussing on employee needs. Addressing employee turnover includes employee focus recruitment and selection procedures, giving higher wages, providing best training facilities, giving rewards and recognition in work place, providing training in developing soft skills which helps employees in getting good opportunities in future in the same organisation and by increasing employee participation in the work place (Timo and Davidson, 1999)Good CSR practices in Hospitality Industries:Apex Hotels: In Apex hotels its each and every staff responsibilities to comply with hotel??™s environmental policies and Apex hotels designed the adequate systems for the improvement of overall impact on environment. Good practice used in Apex Hotels is as follows:1. Environment consideration is the very important matter in all major business decision.
2. All the guest of the hotels is made aware of the hotel??™s environmental policies in every area of guest contacts.3. All the business activities are conducted in keeping in mind about the environmental sustainability.
4. Suppliers are encouraged to work with in the hotels environmental policies and to operate in environmentally friendly manner.5. All the employees are trained to work in environmentally responsible manner.6. Whenever possible and appropriate they use environmentally friendly equipment??™s and even encourage guest by providing services and products which is helpful in environmental sustainability.7. At the time of selecting new suppliers, the supplier??™s green and CSR credentials will be checked by the hotel.
8. Maintaining documents regarding environmental recordings of the hotel.9. Using dual flush toilets to save the water.
10. Installation of low energy consuming bulbs.11. They reuse and recycle all the solid waste and when they cannot reuse solid waste they dispose all these solid waste in best environmentally manners.12. Re-use of hotel furniture and fittings and even donating these items to the local charities.13.
They set the target for reducing energy consumption and they monitor record and update this annually.14. Recycling of plastics, papers, cooking oil, cartridges and card boards.15. Encourage local transport and providing hotel transportation facilities to staff and encourage car share.16. Providing good training to staff and give opportunities to grow further and also provide good facilities to staff like life insurance policies and other benefit.
17. Providing good wages to staff and also provides reward to the deserving employees.18. Donate soap bars and toiletries to charity and poor people.
19. Use organic food items in breakfast menu.20. Key card systems control lighting, heating and air coolers when room not in use and Building management systems are in place to control temperatures throughout the building.Scandic Hotels: Scandic hotels are one of the first the leading hotel group which start practicing CSR issues in their work place.
They are completely dedicated towards good CSR practices. Following are the examples of their good practices.1. They worked continuously towards safety and security of guest. Safety and security manual has been designed which goes through periodically examination2. All the employees go through safety training in hotel at least twice a year.3.
They started an initiative known as a Scandic in Society, under this programme they work towards upliftment of the society.4. They initiate and arranged various camps like blood donation camp, providing help to the youth with some problem, breast cancer awareness camps with the help of team members5. Scandic promotes the local sports and sponsor the local sportsperson.6.
They used renewable energy sources, which is very helpful in Energy saving.7. They also provide suitable jobs to the disable people so that they can earn for themselves.8. They provide high class training to their staff and provide them with good opportunities to progress.9. Accessibility to all the services to the guest is the main focus of Scandic.10.
They redesigned the hotels according to need of disable guests. All the areas of hotel is easily accessible to all the disable guest.11. They also encourage staff and guest to quit smoking, by providing awareness about health hazards of smoking.
12. Scandic also raise funds for research in breast cancer projects.13. Scandic also took a great care of their guest health; their food is high on nutrition and low on calories.14. Scandic always encourage their in house guest in exercising in their gym, and also provide cycles to the guest for transporting.
Advantages of good CSR practices in Hotel industry:1. Taj group of hotels use solar energy to meet their hot water requirements, has found out that they recover all the investment they incur in installing solar water plant in 2 years only. This saves lots of energy requirement of the hotels which results in cost cutting and energy conservation.2. The Seattle Westin Hotel has changed all of the high energy consuming bulbs to energy saving bulbs which helps then in cutting down around 66% of energy requirement and the annual saving of $400,000.3.
Hotel Nikko in Hong Kong has found out that most of the guest does not switch off the lights of the room when they go out which cost them so much of extra money. To solve this problem they installed key card controlled master switches, which saves $0.30 per room per day.4. The Banff Springs Hotel, in Canada, has cut down about 85 % of the waste by recycling their products.5.
The Novatel North Beach hotel in Australia has great recycling methods in which they recycle 700 kg of paper, 100 kg of plastic, 500 kg of card boards, 5000 kg of glass and 1500 kg of organic waste on an average per week since 1998.Motivational Factors for Applying CSR in Hospitality IndustryResponsible and good practices in hospitality industry was highlighted at the Earth Summit in Rio de Janeiro in 1992 with the agenda 21 and the Rio Declaration which generate the main principle for sustainable development in 21st century (WTTC et al., 2002)Goodwill: The competition is gradually increasing in hospitality industry which leads to the development of loyalty programs. There is a big change in marketing strategy which is now more focussed towards building long term relation with customers to develop customer loyalty (Gronross, 1997, McIloy and Barnett, 2000). It is also find out that the loyal customers are more profitable than the new guests. 5% increase in regular customers generally leads to 25%-85% profit (Reichheld and Sasser, 1990). Advertising Corporate Social Responsibility practices is the good way of attracting new guest and it also helps in retaining loyal customers.
CSR practices plays an important and positive role in image building of the organisation which results in increase number of guest and also increase in profit. The aim of CSR is to increase the quality of the life of the people in society and also helps in solving the environmental and socio-cultural problems locally and globally. Corporate social responsibility practices are generally seen by the potential customers as the human side of the corporates. Many hotels have improved their image by being socially responsible and by being environmentally friendly, for examples Scandic group of hotels.Taj group of hotels in India started a new initiative called EARTH-Friendly green rooms which are completely environmentally friendly.
All the guest who use these rooms get extra 15% Taj inner circle points which helps in gaining customer loyalty and in image building,Recycling: Recycling in hospitality industry helps organisation in cutting cost by re using the resources and lowering the annual budget. Recycling is an important part and solution of bigger problem for the environment and all the hotels should do their bit in this regards. Providing training to staff in recycle matters largely helps the organisation in achieving recycle goalsAdvantages of recycling: 1. It feels good to be involved in something which helps our earth in becoming a better planet.2.
It helps in reducing the cost price of the products and services and saves the money.3. It helps in protecting the environment.4. It reduces the solid waste and lowers the CO2 emission.5. It saves space and reduces clutters.6.
By recycling solid waste like glass and aluminium helps in reducing weight of solid waste and the associated cost with that waste.7. By recycling following type of weight reduction can be achieved- *16% waste reduction from hotels*30% waste reduction from pubs*98% waste reduction from night clubs. 8. Producing new items from recycle products needs less energy than producing new item from fresh materials. E.
g. Recycling aluminium cans into new cans needs 95% less energy than producing new aluminium can.9.
Recycling one tonne of aluminium saves seven tonnes of CO2 being emitted into the atmosphere. One tonne of CO2 is equivalent to emissions produced from driving 2800 miles.Environmental Policies and Energy Conservation: Energy conservation is 1 of the motivating factor for hospitality organisation, which also helps in cutting cost for the hotel. Many hotels start using products which are environmentally friendly and which help in low energy consumption. Hotel industry has several motivations to bring change in their climate strategy. Making efficient changes in the building structure can results in cost saving. Consuming less electricity, less fuels and using less water reduce the cost very significantly. Another reason for a hospitality organisation to embrace good environmental practices is the competition they are facing from other green properties.
Facing competition from other environmentally savvy organisation and the demand of environmentally aware consumers, hotels are changing their environmental practices to meet the preference of the consumer.Taj Group of Hotels, India: Taj group has initiated a new program called EARTH- Friendly green room, in which they have converted some of their rooms into environmentally green rooms. In these rooms they have replaced mini bar with snack bar, which means no use of refrigerator in these rooms which affects the ozone layer. They are using more energy efficient CFL lamps in the rooms. The air conditioners are also pre-set at 24degree centigrade which saves 30% of energy. Taj group is continuously working towards the conserving the energy. They instructed the engineers and the architects to build new rooms environmental friendly.
The Taj group also set the guidelines on minimising the use of electrical energy as well as the water consumption with the low emission of CO2 which comes under Eco Taj Policy. Taj hotel also used handmade and recyclable papers in daily use and even the bedside note pad has few pages of recyclable papers.Philanthropic activities & Community Development: Hospitality and tourism industry has a big impact on society and local community. This industry provide lots of employment but not many jobs goes to local people and most of the revenue has not used for the betterment of local community because of the various foreign owners which leads to the conflict with the leaders of local community. Thus serving to local community and providing jobs to the local people helps the organisation in getting good support of local communities and their leaders.Following are the ways of contributing towards society development:1. Employing local people and providing jobs to the disabled people according to need.
2. Motivate their staff to be volunteer in the local charity programmes and encourage them to use good environmental practices at home.3. Support local community, charities, NGO??™s, local schools and sponsor local talents.4. Encourage local suppliers and purchased local products and goods.
5. Develop good training programs and provide job training to local people and develop skill in them so that they can serve the organisation.6. Encourage and educate guest about local culture and religious faiths and encourage them to visit local places and purchase local artefacts.Benefits of Community Developments: 1. Supporting community development helps in creating good repo with local people and leaders.2.
It helps in improving reputation of organisation and generating positive publicity which leads to profitability.3. It also helps in sustainability of the organisation by improving economic linkage with local community.4. By contributing to the society, organisation receives good support from the local people and government and even enhance hotel reputation with the guest also which leads to the higher revenue and profit.Good Practices in Social Issues:1. The Punta Cana Resort and Club, in the Dominican Republic promote local handcrafts and helps local women in marketing their artefacts.
2. A five-time winner of the TUI Environmental Champion award, Iberhotel Sarigerme Park in Turkey, a great success in environmental strategy, has encouraged their staff to apply similar environmental practices at their village and in home which helps them to conserve energy and in cost cutting of electricity bills.3. Accor Hotels in Indonesia initiated a program known as “A Tree for a Child??? by which they support the education and the health of the local children by raising funds from Accor revenue and by planting trees.Conclusion: This report discuss about CSR issues and the various factors which motivates the hospitality organisation to embrace the Corporate Social Responsibility in their business module. There has been a great upswing of Corporate Social Responsibility in Hospitality industry in last two decades.
Each and every company has accepted corporate social responsibility as integral part of their business strategy. Every hotel has different reasons to accept corporate social responsibility. Some hotels are serious about the issues of corporate social responsibility and they are working towards the betterment of the society, environment, but some hotels see this as an obligation which they have to accepted. There are some serious doubts about the actual effectiveness of the corporate social responsibility, but if it is accepted as an integral part of the business model and carried out in a genuine manner, it will be certainly helps in the organisation self-interest(revenue generation) along with the goals and motives of corporate social responsibility. Corporate Social Responsibility has been greatly endorsed by the big hotel chains in their business model despite the serious doubts raised about the actual effectiveness of corporate social responsibility driven initiatives as they understood the economic benefit of the CSR which at last results in profit making. Corporate Social Responsibility create a positive publicity of an organisation which has a humongous effect on the reputation of hotel which in turn attract more customers and it make a real difference to profit margin.
In the present scenario when subject like global warming is much discussed point in the world, consumer prefers the hotels with excellent corporate social responsibility practices and environmental policies. Because of this profitability increased as the guest are most likely to remain the same hotel and loyal to the organisation. Most of the guest concerned about the image and reputation of the hotel rather than the corporate strategies of the organisation and good CSR practices help the organisation in gaining the popular and positive image of the hotels among the consumers and can attract more customers which is the ultimate goal of the hospitality organisation.Referencing:1. Apex hotels () Our environment our responsibility [online].
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