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CORPORATE SOCIAL RESPONSIBILITY IN THE HOTEL INDUSTRY

Article  in  International Journal Advanced Quality · February 2017

DOI: 10.25137/IJAQ.n2.v44.y2016.p7-12

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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.

CORPORATE SOCIAL RESPONSIBILITY IN THE HOTEL INDUSTRY

UDC: 640.412; 005.57; 331.262;
Srđan Bogetić 1 , Zorana Antić 2, Snežana Lekić 3
1 Department for Management, Belgrade Business School – Higher Education
Institution for Applied Studies, 11000 Belgrade, Kraljice Marije 73, Republic of
Serbia, sbogetic@yahoo.com
2 Department for Management, Belgrade Business School – Higher Education
Institution for Applied Studies, 11000 Belgrade, Kraljice Marije 73, Republic of
Serbia, zanticbg@gmail.com
3 Department for Management, Belgrade Business School – Higher Education
Institution for Applied Studies, 11000 Belgrade, Kraljice Marije 73, Republic of
Serbia, snezana.lekic@bbs.edu.rs
Paper received: 19.01.2016.; Paper accepted: 20.02.2016.

Abstract: The hospitality industry has been characterized by an intense growth rate enabling the development of
certain world regions (mostly East Asia and the Pacific region), which until recently had poor economic
perspectives. The global market conditions have necessitated their implementation of corporate social responsibility
(CSR) principles aimed at promoting their competitiveness. Corporate social responsibility is no longer just a desire
of certain hospitality enterprises to appreciate the environment in which they operate; it is also a business operation
approach in the contemporary market. The reason for these changes is a result of the changes not only among
customers, but also the market itself and the way it operates. Namely, the hospitality market has undergone maj or
market segmentation as a result of a changed end consumer attitude towards hospitality services. In the hospitality
industry, the environmental issues, such as greening, are becoming one of the major activities i n the f ield of CSR.
The reason for the commitment of the hospitality industry to the protection of the environment lies in the f act that
such a business approach leads to major cost savings in terms of water consumption saving (laundry), electricity
saving, etc., which have been a great enough motive for other hotels to consider this concept.
Key Words: hotel enterprises, corporate social responsibility, communication, human resources.

1. INTRODUCTION is the constant improvement of hotel services with a

Over the past decades, tourism has experienced
continued growth and deepening diversification to
become one of the fastest growing economic sectors in
the world. Modern tourism is closely linked to
development and encompasses a growing number of
new destinations. These dynamics have turned tourism
into a key driver for socio-economic progress.
Nowadays, the business scope of tourism is equal or it
even surpasses the export of oil, food products or
automobiles. Tourism has become one of the major
players in the international commerce and it is at the
same time, one of the main income sources for many
developing countries. This growth goes hand in hand
with an increasing diversification and competition
among destinations. The global expansion of tourism
in industrial and developed countries has created both
economic and employment benefits in many related
sectors – from construction to agriculture and
telecommunications. The contribution of tourism to
the economic welfare depends on the quality and
revenues of the tourism offer, [1].
In contemporary business conditions, hotel
enterprises have to find the solutions to all the
challenges they are facing. When we talk about the
global market, it is necessary to point out that all
changes and the new trends as well, influence the
business of hotel enterprises. One of the business
philosophies of prime importance to hotel enterprises
goal of increasing guest-satisfaction, as well as
achieving competitive advantage. One of the ways of
achieving competitive advantage is the creation of a
hotel brand.
Furthermore, we cannot ignore the fact that there
have been profound changes on the hotel market when
it comes to the locations of the world’s best hotels.
The business conditions in the hotel industry are
characterized by the increase of new demands by end
users and the advent of new trends in this area. For
this reason, hotel enterprises solve this problem with
continuous advancement of knowledge and business
processes, along with the application of new
management concepts like QMS, TQM, IMS,
corporate social responsibility and the like. In this
fashion, hotel enterprises gain an excellent tool for
communication with their end users, business
associates and other interested parties.
Corporate social responsibility (CSR) is a
management concept which is increasingly present in
different business areas in the last decade. Hotel
industry has realized its significance on time, both for
its business and for the community in which it
operates. Consequently, the largest international hotel-
chains have become the advocates of CSR in this
industry.
Having in mind its economic and environmental
influence, the hotel sector is one of the most evident
potential users of the application of CSR policies.

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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.

Hoteliers are increasingly worried about this policy, “a concept whereby companies integrate social and
since they have understood it as an imperative for environmental concerns in their business operations
achieving sustainable growth and long-term and in their interaction with their stakeholders on a
profitability. There are some questions concerning the voluntary basis”, [5].
debate about CSR in the hotel sector, such as – is there The issues of sustainable development and
a business plan for CSR in this industry, does it lead to corporate social responsibility are the areas which
generating revenue, which operational zones have to hotel enterprises have incorporated in their business
be included in this business policy, how to develop a philosophy. These two concepts are quite connected,
communication plan for CSR and is there a large although some consider them similar. However, [6]
enough market segment for the development of such a when the organization decides to undertake and
specialized offer. The influences of environmental implement social responsibility, the overall goal is
protection in the hotel sector are documented to a naturally to contribute to sustainable development.
large degree; therefore, the hotel managers are quite
Table 1: Top 10 hotel enterprises [7]
aware of the need to manage the environmental
performances and the social pressure for 2014 2014 2014
Company Location
Rank rooms Hotels
environmental responsibility, as well. This leads to a
McLean,
discrepancy between the commitment to CSR that 1
Hilton
Virginia, 715.062 4.322
managers are advocating and the actual commitment Worldwide
USA
shown in practice. This gap is motivated by the lack of Bethesda,
Marriott
knowledge in the CSR area, especially when it comes 2 Maryland, 714.7665 4.175
International
to city facilities, and the utilitarianism of hotel USA
managers. Since CSR has been treated as a minor Denham,
3 IHG 710.295 4.840
marketing factor so far, from now on it can be England
Parsippany,
developed by focusing on the socially-responsible Wyndham
4 New Jersey, 660.826 7.645
consumers’ niche, [2]. Hotel Group
USA
Choice Rockville,
2. THE CHARACTERISTICS OF SOCIAL 5 Hotels Maryland, 500.000 6.300
RESPONSIBILITY IN THE HOTEL International USA
Paris,
INDUSTRY 6 AccorHotels
France
482.296 3.717
Plateno
Corporate social responsibility (CSR) as a term Guangzhou,
7 Hotels 442.490 3.023
first started being used as far back as the 1970s, even China
Group
though different forms of this concept emerged at the Starwood
Stamford,
end of the 19 th century. The technological and social Hotels &
8 Connecticut, 354.225 1.222
changes in the world brought the change of Resorts
USA
consciousness in terms of what corporate social Worldwide
Shangai Jin
responsibility means. In the beginning, the companies’ 9 International
Shanghai,
352.538 2.910
focus in the area of CSR was on philanthropic China
Hotel Group
activities, i.e. on donating certain funds to charity. Best Phoenix,
Issues such as working practices and ethical business 10 Western Arizona, 303.522 3.931
are in use for more than a century now. However, International USA
issues concerning human rights, environmental
protection, consumer protection and the fight against According to the list by an online magazine
corruption were added later on as a result of market Hotels.com (table 1), six out of ten best hotels are
changes [3]. from the United States and two each from Europe and
The global nature of some environmental and China. This ratio increases on the final list of the top
health issues, the recognition of responsibility around 50 hotel enterprises, where the number of hotels from
the world in the fight against poverty, the growing the region of North America is 21 (US 20, Canada 1),
financial and economic independence and from the region of Asia and the Pacific 17 (China 14,
geographically more widespread value chains, mean Japan 2, Singapore 1) and from Europe 12. These data
that the issues relevant for one organization can far show that countries which so far haven’t had a
exceed the boundaries of a specific area in which the significant influence in the hotel industry are
organization is found. It is important that the appearing on the hotel market. Moreover, the
organizations are involved in social responsibility appearance of hotel enterprises from Asian and the
regardless of social and economic circumstances. The Pacific regions, shows the development of these
instruments such as The Rio Declaration on national economies, which is a prerequisite for the
Environment and Development, The Johannesburg success of the hotel industry (along with other
Declaration on Sustainable Development, The industries which aid its development, such as traffic).
Millennium Development Goals, The ILO Declaration Hotel enterprises have, each in their own way,
on Fundamental Principles and Rights at Work, developed examples of good business practice which
emphasize this need, [4]. In 2010, the European pertain to the issues of sustainable development and
Commission defined corporate social responsibility as CSR in its role of encouraging environmental care and

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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.
economic and social issues in the community in which
they operate. It is often found in practice that the
hotels are located in big cities, near cultural and
natural heritage, thus attracting a huge number of
tourists, who in this fashion experience the cultural
heritage of the local community in which the hotel is
located. In this regard, the Hilton hotel-chain has set a
vivid and instructive example for the rest of the hotel-
chains.
The most famous hotels have accepted these
business concepts through the following
environmental practices [8]:
 Codes of conduct,
 Best Environmental Practice,
 Eco-labels and awards,
 Environmental Protection Management System,
and
 Environmental Performance Indicators.
However, when it comes to the application of the
CSR concepts in hotel enterprises, it is necessary to
emphasize two important elements which contribute to
its successfulness:
 Communication in the area of CSR
 Human resource management.
The role of communication in the CSR area is
important, since it best supports the company’s efforts
in the area of CSR. The form of communication itself
is created by the company and it can be presented by
the Sustainable Development Report, the CSR Report,
the Internet and so on. However, in order to achieve
the company’s business transparency and the
stakeholders’ trust, the information on CSR has to be
qualitative and authentic.
According to the research conveyed in 2010 on a
sample of 150 hotels which have websites in English,
up to 46 companies have no information on the goals
or efforts in the area of CSR. Unlike them, 105
companies use certain methods of communication in
the area of CSR.
Table 2. The number of companies which use a
different number of CSR communication methods
[9]
The number of The number of
communication methods companies
1 communication method 39 companies (26%)
2 communication methods 21 companies (14%)
3 communication methods 14 companies (9%)
4 communication methods 16 companies (11%)
5 communication methods 11 companies (7%)
6 communication methods 3 companies (2%)
No information 46 companies (31%)
Table 2 offers a review of the number of methods
which hotel enterprises use in CSR communication.
As can be seen, the companies mostly use one method
of communication and it is most often the ‘about us’
section on the website (used most often), career
section, special CSR sections, media section, but also
internal bulletins. Nevertheless, some hotel-chains,
such as InterContinental group, NH Hotels and
Marriott International, use all six communication
methods in the area of CSR.
As can be seen in table 3, there are four groups of
companies in relation to the CSR communication
patterns. The fewest number of companies (21) creates
CSR or Sustainable Development Reports. Special
sections within the annual report can be created as
well. These reports are available for download from
the hotel’s website. Based on this, it can be concluded
that the communication on CSR topics in the area of
hotel enterprises can be conducted in two ways:
 CSR reports
 The Internet.
The Internet is an excellent communication tool
which offers great possibilities to the hotel enterprises.
The companies of the second type use it to create
special sections on their websites where they present
their goals and examples of good practice in the CSR
area. The companies of the third type do not have the
CSR reports, and they do not have special CSR-
devoted sections within their websites. However, these
companies still understand the importance of CSR
very well and the information can be found in other
parts of the website, such as the ’about us’ section,
career section, media section and so on. These hotel
enterprises still do not have a definite communication
strategy with their stakeholders and other interested
parties.
Table 3. Types of companies based on CSR
communication pattern [9]
The number
Communication pattern
of companies
21 companies
CSR report or CSR section in AR
(14%)
CSR-devoted website section, but 41 companies
no CSR report nor CSR section in AR (27%)
No report, no CSR website section, 42 companies
other sources of information (28%)
46 companies
No information
(31%)
Corporate social responsibility covers different
business aspects, but the one which is insufficiently
mentioned in domestic practice is the employee-
employer relationship. This aspect is especially
prominent in hotel enterprises where work success and
the acceptance of new management concepts depend
on the employees’ motivation and knowledge. The
experience of successful hotel enterprises has shown
that the acceptance of environmental protection
practice has a positive impact on employees. The
employers participation in these hotel activities itself
is going to contribute to its long-term application and
greater motivation to work. The hotel managers are of
the opinion that the advantage of CSR application lies
in the greater sense of belonging and the creation of a
better relationship among the hotel employees.
For this reason, the hoteliers think that the CSR
application improves the employer-employee
relationship in hotel enterprises. Likewise, the HR
managers have managed to gain greater practical
experience in CSR area, because they collaborated
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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.

with their employees, marketing managers and general like), the largest hotel-chains have accepted some of
managers, thus realizing the benefits from employee these five categories and thus started tackling the
participation in CSR. issues of CSR more efficiently. When we talk about
Certain authors identify five themes which depict good examples of CSR in the hotel industry, it is
the benefits for hotel enterprises [8]: necessary to mention the Hilton Corporation hotel-
1. A relationship building-unifying process; chain which has a long-standing tradition in this area,
2. Having fun; ever since its establishment. All hotels from this hotel-
3. Feeling pride; chain are required to be of help to the local
4. Developing skills and communities in case of natural disasters.
5. Building teamwork. The Hilton hotel-chain has directed its business
Based on these topics, hotel enterprises can philosophy in four directions and they are presented in
improve the relationship between employees, which their Corporate Social Responsibility Report titled
could contribute to the processes of establishing the “Travel with purpose”:
atmosphere where employees are satisfied with the 1. Creating opportunities: Striving to be an
company they work for. Correspondingly, the employer of choice; Fostering diversity and
employees are given the opportunity to give the inclusion; Providing workforce development and
initiative for the work process improvement, such as career pathways; Supporting educational and life
for example, the creation of training processes in the skills programs for young people.
CSR area for the new employees. 2. Strengthening communities: Contributing to
local economies; Providing for basic needs and
3. THE EXAMPLES OF CORPORATE disaster relief; Supporting human rights.
3. Celebrating cultures: Facilitating commerce
SOCIAL RESPONSIBILITY IN THE
through travel and tourism; Providing cultural
HOTEL INDUSTRY experience; Preserving cultural heritage.
4. Living sustainably: Managing efficiency and
As a result of different attitudes of some experts in performance of our natural resources; Investing in
the CSR area, table 4 was created, which shows the partnerships that support restoration and
categories in which it is best to place new data in the
awareness, [11].
report on hotel activities. For the purpose of a more
efficient representation of the contents of these five Furthermore, besides the report which can be
categories, some key words were identified. downloaded from the website, there are a couple of
statements about CSR which present its commitment
Table 4. Key words [10] to this topic. One of them is “Philanthropy and
Community Environment Marketplace Citizenship” and it can be found on the website’s
Charitable home page.
donations The Accor Hotel Group is another hotel-chain
Ethical
Community which successfully implements the concept of CSR
advertising
welfare
Corporate
Cultural heritage Providing a and efficiently communicates with all interested
Energy product of value parties about this concept. The Accor hotel-chain does
giving
management Relationship not have a separate CSR report, but it publishes one
Donations in
Pollution control w/guests
kind
Recycle Relationship
within the annual report. However, it is important to
Education emphasize the fact that this hotel-chain is the only one
Waste w/suppliers
Grants which has signed the United Nations Global
management Relationship
Local Compact.
Water with
regeneration
National
conservation shareholders In an effort to show their commitment to the
Supplier Global Compact, the Accor provides a ‘management
welfare
diversity chart’ that lists their shareholders and objectives
Volunteerism
World welfare which are in accordance with the ten principles of the
Vision and United Nations Global Compact. Accor has also
Workforce
values established a committee to follow the United Nations
Advancement Global Reporting Initiative, which provides a
Fair and equitable benefits
Accountability
Career planning
framework of 90 sustainable development indicators
Clear purpose for hotel companies to use as a guideline for Socially
Compensation and rewards
Code of conduct Responsible Reporting [10].
Daycare and family accommodations
Enduring values
Diversity/equal opportunity Thus, the Accor hotel-chain ensures a global
Ethical behavior
Employee assistance program spread of good environmental and social practices. As
Fairness
Employee communication a result of its environmental actions, this hotel-chain
Self regulation
Health and safety has achieved the best ‘green rating’.
Trust
Recruitment
Training The Marriott Corporation hotel-chain is an
example of good communication in the CSR area.
When making their activity reports (The CSR Instead of detailed information on their official
Report or Sustainable Development Report and the website, Marriott provides links to secondary pages.
Their CSR-dedicated webpage is labeled “Diversity”

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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.

and it addresses three areas [10]: owners/franchisees, investors (which include all of the company’s
suppliers and the workforce. However, the shareholders).
information contained on the subpages is limited in Unlike the key words in table 3, international
detail. Nonetheless, on the first page of their diversity standards (ISO, ISO 14001, ISO 26000, OHSAS
section they emphasize [10]: “At Marriott 18001, HACCP) as well as awards are added in these
International, diversity is more than a goal … it is our criteria as an important element of CSR promotion.
business. From our global workforce, to our suppliers, Thus, the data for 2014 is confirmed by the
owners and franchisees, customers and communities, International Organization for Standardization, which
we thrive on the differences that give our company its shows that after Europe, the East Asia region and the
strength and competitive edge. In the process, we’ve Pacific region have the highest proportion of certified
set the standard for the entire hospitality industry.” companies.
The Intercontinental Hotels (IHG), another large According to Cherapanukorn and Focken [12], it
hotel-chain, has a CSR-dedicated part on its official can be concluded that two out of ten largest Asian
website. The focus of their activities is on the hotel chains, Banyan Tree and Six Senses, use CSR as
following segments: children, education, employee a competitive advantage (table 5). They position
involvement, hotel support and supporting sustainable practices as a core of their business
humanitarian efforts. Each of these has at least one operations and many of the activities mentioned on the
page of reporting dedicated to CSR. With the aim of websites and other newspaper articles affirm the
showing their commitment to this concept as much as statements of the groups such as “The agent of social
possible, Intercontinental Hotels provides a dedicated and economic development through responsible
page which outlines their efforts. One such statement tourism” (Banyan Tree) and “Responsible and caring
which seems to capture the essence of their stance on attitude is intrinsic to the brand” (Six Senses). Besides
socially responsible behaviour is [10]: “Through these environmental activities, many hotels have
volunteer and education programs, diversity programs for the preservation of biodiversity and in
initiatives, environmental protection, and in scores of particular for marine conservation (Shangri La, Six
other ways, we help the world become a better place, Senses, Banyan Tree and Dusit Thani).
one community at a time. “Wherever we are, we’re
Table 5. Key words for hotel enterprises in Asia
people taking care of people.”
[12]
However, when we talk about the application of
CSR in the hotel industry and the communication of Policy Community Environment Employees
the hotels themselves in this area, it is necessary to Performance
Purpose Healthcare Recycle
Management
pay attention to the markets of East Asia and the
Grants
Pacific as well. Over the past 20 years there has been a Vision &
Donation in
Pollution Compensation&
great expansion in the construction of hotel-chains in Mission control Rewards
kind
that region. Even though those were mainly the hotels Enduring Waste
from the largest hotel chains in the beginning, with the Education Advancement
values management
economic development local hotel brands are also Accounta- Scholarship/ Water Diversity/equal
appearing, characterized by luxury and comfort. bility internship conservation opportunity
Domestic hotels have accepted working principles of Commitmen Corporate Energy
Employee
the international hotel chains and therefore the assistance &
t giving management
concern about corporate social responsibility. In their communication
paper, Cherapanukorn and Focken [12] state that for Restore
Volunteeris
nature Recruitment
the evaluation of the areas of CSR practice and m
habitats
activities by the top Asian hotel companies, a detailed Local/nation
literature review regarding CSR in hospitality and best / Biodiversity Training and
practices was identified and the main criteria were world conservation development
identified on this basis. Thereafter, the criteria were Welfare
divided into four main CSR activities and practices: Fair & Equitable
the community, environment, employees and the benefits
supply chain. The environmental components include: Supply Chain Standards Awards
energy efficiency, water conservation, waste Relationship with the Asian CSR Awards
ISO 14001
management, biodiversity preservation and guests Program
environmental construction. The Community Relationship with
ISO 26000 Earth Check Certificate*
suppliers
components cover the following: education
Relationship with OHSAS
(scholarships, training, mentoring and the facility shareholders 18001
Global CSR Award
supporting actions), local welfare, donations and Strong in partnerships HACCP
fundraising and health care. The employee Clear/honest/
components include: career advancement Respectful to all
opportunities, recruitment, communication, training stakeholders
and career rewards and benefits. The supply chain * The certificate of the International Earth Check Organization is
components are the following: the the confirmation that the hotel facility adheres to the standards of
environmental protection, corporate social responsibility and
companies’suppliers, the customer/guests and the energy efficiency.

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 International Journal ’’Advanced Quality’’, Vol. 44, No. 2, 2016. year, Belgrade, Serbia.
4. CONCLUSION
The hotel industry is developing with great speed
on the global market and it is one of the most labour-
intensive industries. The reason for this lies in the
appearance of new markets which are successfully
replacing the markets in which there is occasional
saturation with the services offered to the users. The
development of the hotel industry is simultaneously
accompanied by the new service-user trends which
have contributed to the global development of the
hotel industry.
The trend of accepting management concepts
(QMS, EMS, IMS, TQM, CSR) is also responsible for
the successful development of hotel enterprises as
they have enabled the business to operate in
accordance with the market requirements and to meet
the end users’ requirements.
The degree of social responsibility is considered to
be one of the important factors of the hotel product
quality. International hotel companies, such as hotel
chains, are the initiators and leaders in the domain of
social responsibility in the hotel industry. Through
socially responsible behaviour and charitable
activities, sponsorships, grants and training, hotels can
help in solving the problems of pollution, poverty, the
status of marginalized groups and the like.
International organisations play the key part in raising
the consumers’ awareness of the imperative to protect
the planet, thus rewarding the hotels which care about
the environment are punishing the ones that do not,
through the function of demand. The ecological
business standards are striving to have zero impact on
the environment, with the starting point being the
principle of 3Rs (Reduce, Reuse, Recycle) [13].
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