CSR In Tourism Ip Forte


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CSR In Tourism Ip Forte

  1. 1. Presentatie titel Rotterdam, 00 januari 2007 CSR in Tourism IP FORTE Responsible Tourism Valencia, 2009 Belgium & The Netherlands Barbara Swartelé Cor van Leeuwen “ With the support of the LLP- Erasmus IP programme of the European Union .”
  2. 2. Program: A journey towards Corporate Social Responsibility (CSR) <ul><li>Tourism in Europe </li></ul><ul><li>What is CSR? </li></ul><ul><li>Status CSR in Europe </li></ul><ul><li>Business & CSR </li></ul><ul><ul><li>Models </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Two examples </li></ul></ul><ul><li>Focusing on CSR in small hotel business </li></ul><ul><li>Take home message </li></ul>
  3. 3. Tourism in Europe <ul><li>According to the World Tourism Organisation (WTO), Europe remains </li></ul><ul><li>the world’s most important tourist destination and tourismgenerating </li></ul><ul><li>region. Indeed, according to figures from the same source, more than </li></ul><ul><li>half (54.8 %) of the worldwide international tourist arrivals in 2005 </li></ul><ul><li>(estimated at 806 million) were recorded in Europe (441.5 million </li></ul><ul><li>international arrivals). </li></ul><ul><li>Most of these were recorded within EU-27 Member States, as France, </li></ul><ul><li>Spain, Italy, the United Kingdom, Germany and Austria all figured in </li></ul><ul><li>the top 10 list of international tourist arrivals, altogether accounting </li></ul><ul><li>for almost 30 % of the worldwide total. </li></ul>
  4. 4. Tourism in Europe STRUCTURAL PROFILE The hotels and restaurants sector recorded value added of EUR 163.5 billion in the EU-27 in 2004, which represented 3.2 % of the total for the non-financial business economy. However, the contribution of this sector to total employment was about twice its share in total value added, as the 1.6 million enterprises in the hotels and restaurants sector employed 8.7 million people, which is equal to 6.9 % of the EU-27’s non-financial business economy workforce. This latter share ranked the sector as the fifth largest employer among all the divisions of the non-financial business economy. Among the two subsectors that make up the hotels and restaurants sector, the activities of restaurants, bars and catering contributed about two thirds (65.4 %) of the EU-27’s sectoral value added in 2004, while providing around three quarters (75.4 %) of the sectoral workforce. Accommodation services made up the rest of the sector.
  5. 5. Tourism in Europe STRUCTURAL PROFILE There were 248 400 enterprises in the accommodation services sector which generated EUR 116.2 billion of turnover in the EU-27 in 2004 and EUR 56.6 billion of value added, with a workforce of just over 2 million persons. The contribution of this sector to the hotels and restaurants total was about three tenths (30.1 %) for turnover, over one third (34.6 %) for value added, and a smaller share of the workforce, around one quarter (24.6 %). Among the Member States, the United Kingdom created the highest value added for accommodation services in 2004 (EUR 10.7 billion, 18.9 % of the EU-27 total), and had the largest workforce (17.2 % of the EU-27 total).
  6. 6. Tourism in Europe STRUCTURAL PROFILE There were approximately 70 000 travel agencies in the EU-27 in 2004 which generated EUR 21.0 billion of value added and employed half a million persons, accounting for 5.8 % of the transport services total for both measures. The United Kingdom and Germany were by far the largest contributors to the wealth and employment generated by travel agencies in the EU-27 as together they accounted for 57.9 % of the value added and 39.2 % of the workforce. In value added terms these two Member States were also relatively specialised in the travel agencies sector, each generating 0.6 % of their non-financial business economy value added in this sector, more than any other Member State.
  7. 7. What is CSR? The definition of corporate social responsibility (CSR) has many similar elements to sustainable tourism in that both focus on how stakeholders should be identified and engaged and that initiatives should be measured to determine their impact on others. Whereas CSR relates to a company’s obligation to be accountable to all of its stakeholders in all its operations and activities with the aim of achieving sustainable development not only in the economical dimension but also in the social and environmental dimensions, sustainable tourism was first seen mainly from an environmental perspective and has only recently incorporated social and community aspects.
  8. 8. Corporate Social Responsibility: extra costs?
  9. 9. <ul><li>A Study prepared for the CSR Practice Foreign Investment Advisory </li></ul><ul><li>Service Investment Climate Department was carried out in 2005 </li></ul><ul><li>The objective of this study was to assess whether the development </li></ul><ul><li>of national certification schemes may help countries to </li></ul><ul><li>address expectations of tourists, investors and supply chain actors </li></ul><ul><li>such as tour operators and travel agencies, </li></ul><ul><li>b) ensure the sustainable development of their tourism industry, </li></ul><ul><li>c) ensure a localisation of the corporate social responsibility (CSR) </li></ul><ul><li>agenda by guaranteeing that certification standards are developed in </li></ul><ul><li>accordance with national criteria and </li></ul><ul><li>d) whether certification schemes have contributed to spreading </li></ul><ul><li>sustainable tourism practices or would align with international criteria </li></ul><ul><li>or standards. </li></ul>Status CSR in Europe
  10. 10. <ul><li>certification schemes, although increasing in their number and </li></ul><ul><li>scope over the past ten years, have not enabled Small and </li></ul><ul><li>Medium Sized Enterprises (SME’s) greater access to market </li></ul><ul><li>opportunities, nor have they moved the tourism industry </li></ul><ul><li>significantly forward towards sustainability. </li></ul><ul><li>Guidelines within the industry are becoming more common, </li></ul><ul><li>however, implementation and evaluation is still weak. </li></ul>Status CSR in Europe To date, CSR is largely driven by publicly traded European companies who see it as a way to reduce any potential risks that might negatively impact on the value of their stocks.
  11. 11. <ul><li>CSR and Low Income Countries </li></ul><ul><li>It must be recognised that without political stability, </li></ul><ul><li>security and basic infrastructure, tourism will not be </li></ul><ul><li>fostered by any of the larger international companies, </li></ul><ul><li>as risks to customers would be deemed too large, and </li></ul><ul><li>therefore CSR cannot be considered in largely </li></ul><ul><li>non-democratic countries. </li></ul>Status CSR in Europe
  12. 12. <ul><li>Consumer surveys indicate that there is a willingness to pay for </li></ul><ul><li>More sustainable types of tourism. </li></ul><ul><li>In the STI survey (2004) 75.4% of self-declared environmentally </li></ul><ul><li>Oriented consumers declared they were willing to pay $1-20 </li></ul><ul><li>extra per ticket to mitigate the green house gas effects of their </li></ul><ul><li>travel. Seventy-seven declared they would switch online travel </li></ul><ul><li>sites to one that made contributions on their behalf to offset the </li></ul><ul><li>portion of their emissions. </li></ul>Status CSR in Europe
  13. 13. Business & CSR: Models
  14. 14. <ul><li>Sustainable marketing is the establishment, maintenance, and enhancement of customer relationships so that the objectives of the parties involved are met without compromising the ability of future generations to achieve their own objectives. </li></ul>Business & CSR: Models
  15. 15. Support Activities Primary Activities The value chain concept is a tool to help companies identify opportunities ( Resources and Capabilities) for competitive advantage in international markets. Business & CSR:Models Technological Development Human Resource Management Firm Infrastructure Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales (4P’s) Service
  16. 16. Business & CSR:Models
  17. 17. Generic strategies Operational excellence Customer intimacy Product leadership Business & CSR: Models
  18. 18. Competitive Advantage and Generic Strategies <ul><li>The concept s of competitive advantage and competitive strategy at the firm level are closely related. Competitive advantage refers to the basis upon which a firm competes in its target international markets. </li></ul>Business & CSR: Models
  19. 19. Do you know more tools? Business & CSR: Models
  20. 20. International Pricing Issues <ul><li>Nature of the product or industry </li></ul><ul><li>Location and environment of international market </li></ul><ul><li>Chosen system of distribution </li></ul><ul><li>Government regulations </li></ul><ul><li>Competition in the international market </li></ul><ul><li>Culture </li></ul>Business & CSR: Price
  21. 21. Cost price and CSR: If related to V.C. B.E.P. F.C. V.C. Sales Number of units € Examples?
  22. 22. Cost price and CSR: If related to F.C. B.E.P. F.C. V.C. Sales Number of units € Examples?
  23. 23. Price elasticity: What are the influencing CSR factors? Q P Examples?
  24. 24. Business & CSR: Two examples
  25. 25. Business & CSR: Two examples
  26. 26. Business & CSR: Two examples
  27. 27. <ul><li>This year Air France again pursued its policy on employee and </li></ul><ul><li>corporate social responsibility agreements. The year was marked by </li></ul><ul><li>the implementation of the provisions foreseen in the 2006 three- year </li></ul><ul><li>human resources planning agreement and its additional clause signed </li></ul><ul><li>in December 2007. </li></ul><ul><li>The company’s commitment to corporate social responsibility and </li></ul><ul><li>respect for diversity was pursued with the implementation of the </li></ul><ul><li>agreements on the vocational integration of staff with disabilities, </li></ul><ul><li>professional gender equality, internship, the diversity charter, mutual </li></ul><ul><li>insurance and workplace medicine, etc. The signature, in July 2007, </li></ul><ul><li>of a second clause in the incentive agreement of August 1, 2005 </li></ul><ul><li>enables the commitment of employees to be recognized more fully. </li></ul>Business & CSR: Two examples
  28. 28. Business & CSR: Two examples Diversity and corporate social responsibility Air France is pursuing its employment policy based on social integration through employment and respect of diversity. The company’s commitment was refl ected in the signature of the 4th internship charter for the 2005-08 period by all the union bodies representing ground staff and cabin crew. The number of apprenticeships or vocational training contracts signed in 2007 Showed an increase of more than 50%.
  29. 29. The race has begun! <ul><li>What race? </li></ul><ul><li>The race to be “Green”, “ecologically minded” </li></ul><ul><li>Examples for hotel industrie </li></ul><ul><li>Who is to say who is green and who not? </li></ul><ul><li>No official rules </li></ul><ul><li>Opportunity for hotels to save money </li></ul><ul><li>Easy win? - easier for small hotels to adept because they are more flexible! </li></ul>Focusing on CSR in small hotel business
  30. 30. However CSR contains so much more! <ul><li>What? </li></ul><ul><ul><ul><li>Economic viability </li></ul></ul></ul><ul><ul><ul><li>Social responsibility </li></ul></ul></ul><ul><ul><ul><li>Environmental protection </li></ul></ul></ul><ul><li>Thinking LONG TERM STRATEGY </li></ul><ul><li>TRIPLE BOTTOM LINE (Profit/People/Planet) </li></ul><ul><li>Process of awareness </li></ul><ul><li>Key for change </li></ul><ul><li>PROFIT stays the essential role of businesses. </li></ul>
  31. 31. How to integrate the issues of CSR into general management?
  32. 32. CONCLUSION FOR SMALL HOTEL BUSINESS <ul><li>NO “one-size-fits-all” approach </li></ul><ul><li>Become aware of what is NOT DONE and how you CAN make a change </li></ul><ul><li>Ongoing business </li></ul><ul><li>Earn respect </li></ul><ul><li>Customer loyalty </li></ul><ul><li>Enhance company’s competitiveness </li></ul>
  33. 33. GENERATING PROGRESS IN RESPONSIBLE TOURISM <ul><li>MAJOR STAKEHOLDERS: </li></ul><ul><li>Customers </li></ul><ul><li>Sectors </li></ul><ul><li>Government/ EU </li></ul>How to improve CSR? A I D A Take home message
  34. 34. Take home message <ul><li>Is there a role for HEI’s & Universities? </li></ul><ul><li>WHY & HOW? </li></ul>