CSR IN TOURISM INDUSTRY

I. Introduction
1. The rationale of the topic: (Trinh)

The world is witnessing a change in public perceptions about the role of businesses in
society. The conventional view that exclusively to earn profits is no longer acceptable.
While business contributions to economic growth, wealth creation, and employment
are a given, businesses also have to be aware of the social and environmental impacts
of their own activities. Because of making profit, a company is forced to care about
society. They are not only to make high quality products or customers will stop
buying, but they also have to treat its workers well or they’ll leave and it cannot
pollute the environment or its brands will be hurt.

In particular, it seems increasingly important that businesses in the tourist industry

should be more aware of CSR as the tourism industry has been developed rapidly and
therefore businesses in this sector have faced an ever-increasing level of competition.
The different sides of CSR of tourism organizations are reflected in the mindset of the
management board and in the actual events organized for the employees and the
consumers of tourism services as well as the local population which is directly
associated with tourism activities.

Moreover, we observe that while there is research on certain stakeholders groups such
as management, employees, shareholders and consumers, there is less emphasis on the
impacts of companies on communities and ecosystems. If an organization does not
look toward waste reduction, clean water programs, or other environmentally-friendly
opportunities, they are missing out on the entire market of consumers who prefer to
travel and go on holiday responsibly and sustainably.

These are the major reasons why every business has to take its CSR activities in which
it is operating in a way that benefits society and the environment instead of degrading
them.

2. The aims of the report: (QA)

 The development of local destinations (financial support of cultural and
historical sites, charity, etc)
 Environmental protection and sustainability (economical and careful use of
natural resources, pollution prevention, efficient environment management
incorporated in the tourism activity)
 Raise the public’s awareness about the eco-tourism.
3. Brief introduction about the company Fidelity Travel: (more interesting,
relevant information, a paragraph like BBC) + pictures (offices,
employees, logo) (QA)
 The company was established in 1994 and since then has been expanding its
business throughout the tourism sector in Danang City
 Fidelity Travel works in partnership with both large and small tour operators
around Vietnam in order to create portfolios of accommodation units that
satisfy the needs of each market segment. The knowledge and accumulated
experience of both local and international markets made the company the
largest incoming agent in Danang and a highly reputable, professional and
organized travel enterprise.
 Fidelity Travel organizes tours and excursions which are available to all
holidaymakers in Danang.
 Fidelity Travel provides airport services including transfers and airport
representation.
 Fidelity Travel provides office space including all essential technological &
telecommunication facilities and offers administrative support to its partners.
II. Theoretical background and the CSR proposal in the tourism industry
1. Theoretical background: (Trinh)

Definition of Corporate Social Responsibility (CSR):

What does CSR mean? This term may refer to a lot of issues. Therefore, there is no
single definition of this concept. Although this term is not new, it has evolved
conceptually both in academic literature and in business.

In July 2001, the Commission presented a Green Paper “Promoting a European

Framework for Corporate Social Responsibility” (COM, 2001). The paper defined
CSR as “a concept whereby companies integrate social and environmental
concerns in their business and in their interaction with their stakeholders on a
voluntary basis”.

The World Business Council for Sustainable Development considered “Corporate

social responsibility is the commitment of business to contribute to sustainable
economic development, working with employees, their families, the local
community and society at large to improve their quality of life.” (WBCSD, 1999).

Corporate social responsibility is the overall relationship of the corporation with

all of its stakeholders. These include customers, employees, communities, owners/
investors, governments, suppliers and competitors. Through effective CSR
practices, organizations will achieve a balance between economic, environmental,
 and social imperatives, address stakeholders’ expectations, demands, and
influences, and sustain shareholder value.”

Based on previous research, Graafland et al. (2004) have distinguished more than
60 concrete aspects of CSR, so the high diversity of CSR makes it difficult to five
an exact definition. Graafland et al. (2004) stresses the importance of determining
how companies apply CSR in their business by determining how they choose to
define what CSR is since it differs significantly between companies. They have
found that the main CSR focus of companies today lies within the areas of:

 Environmental protection (e.g. reduction of emissions and waste and the

recycling of materials)
 Philanthropy (donating to charities, etc.)
 Employee schemes (higher standards of occupational health and safety,
good standard of staff treatment, job-sharing, flexitime, etc.)
 Ethics in advertising

When considering CSR in the tourism industry, the authors also base on the 4
aforementioned areas that most companies nowadays focus on. However, in this
report, the authors use the following terms:

 Physical environment
 Community
 Workplace
 Marketplace

Benefits of Corporate Social Responsibility:

As important as CSR is for the community, it is equally valuable for a company.

CSR activities can help forge a stronger bond between employees and
corporations, boost morale, and aid both employees and employers in feeling more
connected to the world around them.

2. CSR proposal in the tourism industry:

PHYSICAL ENVIRONMENT
 Minimize pollution (sporty tours
with tourists walking for most of
the tour) and waste (by not using
plastic packages or single-use
packages)
 Within the resort, transport
modes include walking trails,
bicycle tracks and electric cars.)
 Develop and operate eco-friendly
tours (no pollution and waste
produced) or green tours (tourists
come to vulnerable places and
contribute to make them better/
pay additional fee for making
these places better)
 No constructions that may harm
natural habitat
 Develop suitable tours for each
locality
 Construct more entertainment
sites that use energy wisely and
economically
 Water efficient fittings are
installed in showers and toilets
 Visitors who stay at the resort are
encouraged to monitor their
waste and energy use via the in-
house television system, and are
rewarded with prizes (such as
free return trip, vouchers)
accordingly if their usage is low
 Develop tours combined with
workshops to raise the visitors’
awareness about environmental
protection
 Visitors are required to bring
their toothbrushes and towels on
WORKPLACE
 Prevent labor exploitation of
minors, children
 Treat employees fairly
 Have appropriate reward and
remuneration packages
 Offer fringe benefits such as paid
holiday and paid sick leave for
employees
 Fair promotion opportunities
 Involve employees in waste
management efforts (reduce
office waste (papers) & recycle
paper
 Reduce energy consumption in
office (electricity) & window
(solar energy)
 Switch to renewable energy
(solar energy)
 Advertise jobs publicly
 Have a rigorous selection
process, and regularly review our
hiring and promotion process.
 Have detailed training courses
 Have frequent webinars/
seminars/ workshops/ field trip
when employees can update and
widen their expertise and learn
new skills
 Modern, clean, and well-
equipped offices
 Flexible working hours
 There are clear overtime
regulations
 Regular surveys of employee
satisfaction
 their own.
COMMUNITY
 Develop, operate and market
tours that make positive
contribution to the cultural
environment (cultural tours),
generate benefits for the host
communities (with tourists
buying traditional handicrafts or
local specialities)
 Providing jobs for local people
by engaging local people in the
business (advertisement team or
R&D team) and using more local
tour guides
 Support local communities by a
way of charitable donations and
employee volunteer
 For every booking made directly
on our website, we have made a
donation to local charitable
organizations that provide free
meals for the homelessness and
poor families within the local
communities.
 Arrange workshops and seminars
occasionally in which our staff
share the skills in hospitality and
tourism management we might
have to students from local
universities
 Allow local communities to come
into our business and find out a
little bit about what we are doing.
MARKETPLACE
 Advertise tours online via social
platforms (better than billboards
and leaflets)
 Develop and operate tours that
bring new and trendy concepts to
customers
 Promote tours that tourists can
learn more about the local culture
 Categorize tours in different
categories so that customers can
easily choose their favorite one
(sightseeing tours/ adventure
tours/ walking tours/ cultural
tours/ food tours)
 Connect with transportation
companies, restaurants and shops
that provide excellent services,
high-quality products and have
ethical business practices
 Encourage responsible and
respectful behaviors towards
customers and other partners
 Monitoring customer feedback
about company’s CSR
performance/ operation
 Inform timely the customer on
the sustainability of our products
and services and campaigns
 Regulating the number of visitors
to the resort to minimize the
damage done to the natural
 environment

III. Recommendations and conclusions

PROJECT MONITORING AND EVALUATION:

Nhận định trong quá trình thực hiện dự án

Đánh giá mức độ hiệu quả của dự án (tiêu chí)

Những mặt dự án đang làm tốt

Những mặt dự án đang làm chưa tốt - Solutions

Khuyến nghị cho những dự án sau

1. Recommendations:
 Management board should consider environmental outcomes, which
limit/reduce the impact of operations on the natural environment.
 Consumers should be more concerned with how companies make their money
and are expecting to engage in responsible activities that will limit and lessen
their social, ethical, and environmental impacts on society and the community.
 CSR programs must involve the employees in order to achieve success. This
means ensuring that everyone in the companies is informed timely about CSR
policies and practices and are involved in implementing them.
2. Conclusions:
 Profit is good, but it is just a by-product, not the end goal. Instead, businesses
exist to serve a purpose, to make products that change customers' lives for the
better, to provide employees with a healthy and enriching workplace and
preserve the environment for the future generations. If businesses do that well,
profits come naturally.
 In order to achieve this balance, businesses need to take their CSR into
consideration seriously. If hospitality and tourism organizations can adopt and
implement their CSR best into their organizational strategies, they can increase
and improve their organizational competitiveness, while at the same time
contributing positively to society as well as solve problems in society that may
arise.
REFERENCES

1. Corporate Social Responsibility (CSR) Explained With Examples

(investopedia.com)

2 PROJECTS: Community (nhà ăn 0 đồng) (QA) & Physical environment

(ecotours) (Trinh)

Stage 1: Proposal – identify the idea or need

 BENEFICIARY: Đối tượng của dự án

 PLACE: Nơi diễn ra dự án
 GOALS: Mục tiêu của dự án (SMART)
 Or RESULTS: Kết quả của dự án (đã thực hiện)
 BENEFITS FOR THE COMPANY: Lợi ích của dự án đối với công ty
(SMART)

Stage 2: Initial investigation – a brief overview of the possible requirements and

solutions

 WORKFORCE: Nhân lực – bao nhiêu người?

Chia làm bao nhiêu nhóm nhiệm vụ? Mỗi nhóm bao nhiêu người

Vai trò cụ thể của từng nhóm?

 TIMELINE: Thời gian diễn ra của dự án

Tổng thời gian là bao lâu?

Vẽ timeline – hoạt động cụ thể cho từng mốc/ khoảng thời gian

 BUDGET: ngân sách cho dự án

Tổng ngân sách là bao nhiêu?

Vẽ bảng dự toán – số tiền cụ thể cho từng hoạt động cụ thể

 SOURCES OF FUNDS: Nguồn funds – từ ai?

Mỗi người/ tổ chức bao nhiêu?

 (POSSIBLE) ADVANTAGES: Những thuận lợi có thể xảy ra khi thực hiện dự
án
 POSSIBLE RISKS: Những rủi ro có thể xảy ra khi thực hiện dự án

Or DAMAGE/ LOSSES: Những tổn thất khi thực hiện dự án (đã thực hiện)

 (POSSIBLE) SOLUTIONS: Những phương pháp có thể giải quyết rủi ro

(BẢNG)

Stage 3: (bôi vàng) WORKFORCE – TIMELINE – BUDGET – SOURCES OF

FUNDS

Stage 4: Recommendations & Conclusions