corporate social responsibility hospitality industry case study

CSR challenges facing the hospitality industry: a case study

In all industries, the importance of corporate social responsibility initiatives and reporting is relevant and growing. For the hospitality industry in particular, CSR is both a necessity and a challenge. As one of the industries whose activities have consequences for the environment, many practitioners believe the hospitality industry has a responsibility to promote positive social change by engaging employees, owners, and customers in their CSR initiatives.

This idea was one of the major takeaways from a summit staged in London at the end of October, where the key topics were sustainable development, stakeholder engagement, sustainability reporting, and change management. At the conference, Lisa Basford, Global Director of Corporate Responsibility for the Intercontinental Hotel Group, shared IHG's vision and strategy for CSR communication in hospitality.

In 2016, IHG was listed among the top 100 in the Global RepTrak: The World's Most Reputable Companies and the Global CSR RepTrak Leaders rankings. With 350,000 employees worldwide, 5,999 hotels, 314 million guest rooms, and a dozen brands, communication is one of the greatest challenges the Intercontinental Hotel Group faces. If we consider all the stakeholders this entails, communication becomes an intricate web of CSR messages, initiatives, motivational activities, expectations, and engagement.

For Lisa Basford, the greatest asset in implementing IHG's CSR strategy is the employee. Employees who are already on board and aware of the company's CSR initiatives understand its purpose and are more committed to the company. Nonetheless, communicating with all of these employees is complex. Many employees associate themselves and their jobs with the brand franchise, rather than the umbrella company of IHG. To improve the consistency of CSR messages across all of the properties, IHG uses internal social media and video, holds meetings, gives presentations, and annually promotes the 'IHG Foundation Week' of volunteer work, charity, and fundraising.

In an email interview following the conference we asked her how IHG approaches these complex communications activities.

Q: What are the best ways of engaging your employees on an individual property, local, and global level?

Engagement with hotels can vary massively, depending on the region and the hotel. The majority of our hotels are franchises and our route to those hotels is through the IHG Owners' Association. We promote our programs and share success stories in owner meetings and via regional conferences. Where possible, we also communicate directly with hotel-based colleagues through company intranets and websites. Of 350,000 colleagues working in IHG-branded hotels, the vast majority do not actually work for IHG, but for the owning company.

The second greatest asset – and challenge – is the Owners' Association. Like the employees, the owners, too, may not immediately identify themselves with IHG, especially if they own competitor hotels as well. To communicate CSR initiatives to the Owners' Association, there are traditional meetings and conferences, but Basford suggests a much more effective method. She tries to engage the owner stakeholders as ambassadors or advocates who can tell the IHG story to their employees. Their endorsement of IHG's broader CSR strategy is then firmly embedded in their employees' work experience.

Q: What are the greatest challenges in stakeholder engagement?

That's an interesting question. I guess I would split the audience into advocates (those who are aware and supportive) and adversaries (either unaware of actively reject your message). However the biggest challenge (and therefore the biggest opportunity) is the middle ground. If they are not actively supporting, they might as well be rejecting. These are the people we need to work with to understand their business needs and ensure they can understand the role CR can play in delivering their objectives.

For all stakeholder groups, it is important to communicate via relevant channels: for example, activities promoting sustainability can be communicated to kitchen staff through posters; to other employees or future employees through Facebook, LinkedIn, and Twitter (#IHGcares); to analysts, academics, and advocates through official CSR reports; or to existing or future customers through the corporate website. In short, there is no one way to communicate CSR activities inside or outside IHG; rather, it is necessary to mix the channels, language, and purpose at a global, local, and individual business unit if needed.

To conclude our conversation, I asked Lisa how to better prepare the future generation within our academic programs.

Q: How can we (academics, training programs and potential employers) prepare the next generation of hospitality professionals to be 'change managers' and advocates of positive social change?

I think the key here is to be able to turn theory into actions. As a commercial business we are delivering for our shareholders. Whilst there is a growing awareness amongst businesses and shareholders that responsible business is, it is still not fully embedded in the majority of companies. Students, who can demonstrate positive behavioral change and link this to commercial success, will win here.

Related Links

• Conference Notebook: Make that change! Empowering employees as ambassadors of positive social change
• Corporate social responsibility in the digital economy

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Case Studies

Hyatt hotels: developing an integrated csr strategy, june 3, 2011, the challenge.

One of the biggest industries globally, travel and tourism contributes up to 10 percent of the world’s economy and about one in every 12 jobs. Yet most companies in this sector are still in the early stages of assessing and addressing their sustainability impacts. To better communicate the newly public company’s commitment to responsible practices, and to prepare for the increased transparency required of public companies, Hyatt leaders partnered with BSR to articulate a vision for an integrated sustainability strategy.

Our Strategy

Our goal was to help Hyatt build a strategy that connects corporate responsibility objectives to business goals in ways that:

• Deliver value and innovation to Hyatt’s operating companies.
• Identify and mitigate sustainability risks.
• Build trust externally and engage colleagues internally.

At Hyatt, which owns, manages, and franchises hotels, engaging internal stakeholders such as general managers, owners, associates, and executives was an essential first step in understanding the unique global and local sustainability challenges each property faces.

First, BSR interviewed several executives to establish senior management’s current and future conception of CSR. We then conducted workshops in Asia, the Middle East, Europe, and the United States to identify current activities, prioritize CSR issues, and understand regional nuances. Several key themes emerged:

• Addressing poverty and inequality in local communities through education and economic self-sufficiency
• Recruiting, developing, and retaining staff
• Managing the environmental footprints of its hotels, expanding its commitment to sustainable sourcing, protecting the biodiversity of the areas surrounding its hotels, and using sustainable design and construction

This work allowed Hyatt to develop and implement “Hyatt Thrive,” a strong, practical CSR vision representing Hyatt’s goal of creating “thriving communities, places where we are proud to work, our neighbors want to live, and our guests want to visit.” The platform, which establishes a global CSR framework with a common vision and strategic focus that can easily be implemented locally, is centered on four pillars: educational and personal advancement, health and wellness, environmental sustainability, and economic development and investment. Hyatt Thrive’s primary objective is to help the company communicate its philanthropic, environmental, and community engagement initiatives, and to position Hyatt to focus on and articulate the value it brings as a global company to the many communities it serves.

The CSR strategy has spurred additional sustainability initiatives, including a new human rights policy statement that references specific industry issues such as human trafficking. Hyatt Thrive also led to an improved approach to aligning Hyatt’s giving and volunteerism with the four pillars of the Thrive framework.

• Travel and Tourism

Let’s talk about how BSR can help you to transform your business and achieve your sustainability goals .

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Corporate Social Responsibility and Sustainability Initiatives of Multinational Hotel Corporations

• First Online: 26 October 2019

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• Artie W. Ng 5 &
• Pimtong Tavitiyaman 5  

Part of the book series: World Sustainability Series ((WSUSE))

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Multinational hotel corporations participating actively in international business developments have become aware of the significance of disclosures on Corporate Social Responsibilities (CSR) and Sustainability issues. Such development is driven by the external stakeholders and endorsed by the internal ones. Financial regulators around the world have appeared to embrace the international trend of disclosures about CSR and Sustainability by publicly listed corporations. Through case studies of major multinational hotel corporations operating in Asia and the West, this study examines the emerging emphases of disclosures on CSR and Sustainability matters as a global trend—including public relation management (PRMs), enterprise risk management (ERMs), and integrated innovation management (IIMs). The results showed different aspects of CSR and sustainability practices among multinational hotel corporations worldwide. Western hotel corporations indicate an emphasis on IIMs with global measurement and standard such as GRI standard and ISO14001 certification. In the meantime, Asian hotel corporations have diverse CSR and sustainability initiatives in terms of PRMs (e.g., staff development, staff remuneration and welfare, and good stewards of the environment) and ERMs (e.g., operational risks management, use of solar energy, and new energy conservation) approaches, but low implementation on IIMs. Various aspects of CSR and sustainability initiatives can be reinforced to enhance multinational hotel corporations’ sustainability.

Note : An earlier version of this article was presented as a working paper under the Working Paper Series organized by the School of Professional Education and Executive Development at The Hong Kong Polytechnic University.

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Ng, A.W., Tavitiyaman, P. (2020). Corporate Social Responsibility and Sustainability Initiatives of Multinational Hotel Corporations. In: Leal Filho, W., Borges de Brito, P., Frankenberger, F. (eds) International Business, Trade and Institutional Sustainability. World Sustainability Series. Springer, Cham. https://doi.org/10.1007/978-3-030-26759-9_1

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Determinants of hotel business success in rural areas of the western balkan countries.

1. Introduction

2. literature review, 3. materials and methods.

4. Results and Discussion

4.1. results, 4.2. findings and discussion, 5. conclusions, author contributions, institutional review board statement, informed consent statement, data availability statement, conflicts of interest.

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Share and Cite

Pimić, M.; Simonović, Z.D.; Radivojević, N.; Nicolae, I.; Ćurčić, N.V. Determinants of Hotel Business Success in Rural Areas of the Western Balkan Countries. Sustainability 2024 , 16 , 7704. https://doi.org/10.3390/su16177704

Pimić M, Simonović ZD, Radivojević N, Nicolae I, Ćurčić NV. Determinants of Hotel Business Success in Rural Areas of the Western Balkan Countries. Sustainability . 2024; 16(17):7704. https://doi.org/10.3390/su16177704

Pimić, Miroslav, Zoran D. Simonović, Nikola Radivojević, Iuliana Nicolae, and Nikola V. Ćurčić. 2024. "Determinants of Hotel Business Success in Rural Areas of the Western Balkan Countries" Sustainability 16, no. 17: 7704. https://doi.org/10.3390/su16177704

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Please note you do not have access to teaching notes, how csr and well-being affect work-related outcomes: a hospitality industry perspective.

International Journal of Contemporary Hospitality Management

ISSN : 0959-6119

Article publication date: 26 January 2022

Issue publication date: 11 March 2022

The purpose of this study is to analyze how hospitality industry employees’ perceptions of corporate social responsibility (CSR) and participation in CSR activities influence their well-being and loyalty boosterism.

Design/methodology/approach

Using the positive psychology approach of well-being (hedonic and eudaimonic dimensions) and the affect theory of social exchange, a survey of hospitality employees was conducted to test the theoretical model.

Employees’ perceptions of CSR significantly influenced their participation in CSR activities. CSR participation positively influenced employees’ hedonic and eudaimonic well-being, which in turn influenced their loyalty boosterism. The mediation effects of well-being and the sequential mediation effects of CSR activity participation and well-being were also significant in the relationships mentioned above.

Research limitations/implications

While panel data offer many advantages, they also have limitations. The authors, therefore, suggest future studies replicate their conceptual model and empirically test it through firms well known for their CSR. In addition, future studies may cover the whole hospitality industry to enhance generalizability.

Practical implications

By exploring the connection between employees’ CSR perceptions and participation, this research can help hospitality practitioners develop more engaging CSR strategies and activities, which in turn can foster employees’ well-being and enhance their loyalty boosterism.

Originality/value

This study is among the first to empirically demonstrate the effect of CSR in both hedonic and eudaimonic well-being and to explore the connection between employee perceptions of CSR and participation in CSR activities.

• Hospitality industry
• Employees’ behavior
• Corporate social responsibility
• Eudaimonic well-being
• Hedonic well-being
• Loyalty boosterism

Guzzo, R.F. , Abbott, J. and Lee, M. (2022), "How CSR and well-being affect work-related outcomes: a hospitality industry perspective", International Journal of Contemporary Hospitality Management , Vol. 34 No. 4, pp. 1470-1490. https://doi.org/10.1108/IJCHM-06-2021-0754

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