There is an increased awareness of corporate social responsibility and ethical business practices within the hospitality industry especially with the rapid globalization taking place in the industry that has seen many hotel chains enter new markets.
Corporate social responsibility and ethical business practices have affected the way that hotels are run as they strive to show their good corporate citizenry and give back to the community while ensuring that they give back to it.
The customer in the hospitality industry expects the hotels to be actively participating in giving back to the community and also to exhibiting and ensurung that all their business practices are honest and above board.
Effects of Corporate Social Responsibility and Business Ethic on the Global Hospitality Industry Corporate Social Responsibility refers to an organization’s promise to the elimination and the minimization of harmful effect on the community while ensuring that they maximize both the long term and short term benefits to the community they operate in.
Ethics refers to the rules, standards and expectations for morally upright behavior at all times (Mulki et al, 2006, p. 21).
Corporate social responsibility and Business ethics have in the recent past gained increasing importance and attention in the hospitality industry especially as hotels and properties expand and open up in many different countries around the world.
As the hospitality industry globalizes, many hotel chains are setting up in territories that they have not operated in before and at times cultures that they are not all too familiar with. Many hotels have developed Corporate Social responsibility programs and ethical business policies. (McWilliams, et al, 2006).
These programs have revolved over time from simple charity work and giving donations to more robust schemes that are aligned with the property’s strategy and directly address the issues that the community faces in the area that the hotel operates. Hotels have also developed and aggressively enforced business ethical standards which are well known to clients, suppliers and the community.
Whereas many hotels have put in place corporate social responsibility programs and ethical business standards almost on auto pilot not to be left behind, studies have shown that the properties with robust corporate social responsibility programs and ethical business standards have been able to reap huge benefits in terms of attracting more clients and gaining community acceptance, as well as employee engagement and retention. (Matten, 2004).
How corporate Social Responsibility and Ethical Business has added value to the customer in the hospitality industry
Customers in today’s world are more enlightened and demand more from the businesses and particularly the services that they use. This trend has also taken root in the hospitality industry with more and more people around the world making holiday and accommodation decisions based more than on the cost of the property or the services that are offered.
Customers are increasingly choosing to spend more money on properties that have demonstrated their commitment to genuine corporate social responsibility and caring for the environment and the community that they live in. Corporate social responsibility in the hospitality industry has added value to the customer in several ways the most notable of which is the ‘feel good’ factor. (Welten)
Guests who stay at properties that are doing their part for the community feel that they are directly involved in the programs by giving business to the hotel. Indeed, many hotels now offer their guests opportunities to give donations of their time or money to the corporate social responsibility programs.
The environment is a big concern for many people the world and this has seen the rise of ecologically friendly hotels and lodges. These ‘Eco’ properties especially lodges and tented camps in the wild have carved a niche for themselves by emphasizing their environmental friendly practices which reduce or prevent damage to the environment while at the same time giving back to the community.
Ethical business practices and standards in turn protect the customer from over charging or unfair business practices on the part of properties in the industry (Reilly, 1990, p. 23).
List of References
Matten, D. & Moon, J. (2004) ’Implicit’ and ’Explitic’ CSR; A Conceptual Framework for Understanding CSR in Europe, No. 29-2004 ICCSR Research Paper Series.
McWilliams, A.; Siegel, D.S. & Wright, P.M., (2006) Corporate Social Responsibility: International Perspectives. Web.
Mulki, J. P., Jaramillo, F., & Locander, W. B. (2006). Effects of ethical climate on supervisory trust on salesperson’s job attitudes and intentions to quit. Journal of Personal Selling & Sales Management, 26(1), 19-26.
Reilly, B. J., & Kyj, M. J. (1990). Ethical business and the ethical person. Business Horizons, 33(6), 23-27 Welten, R. Social Responsibility in the Hospitality Industry:Corporate Social Responsibility; Zombie Ethics? Web.