Corporate Social Responsibility

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For my Sustainable Tourism Development Course...I prepared this presentation on September, 2010.

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Corporate Social Responsibility

  1. 1. CSR in Tourism Presented by Md. Abdul Hamid European Master in Tourism Management University of Southern Denmark
  2. 2. Understanding CSR The obligation of businessmen to pursue those politics, to make those decisions, or follow those lines of action which are desirable in terms of the objectives and value of the society (H. R. Bowen, 1953).
  3. 3. “CSR is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis” (European Commission , Green Paper , 2001)
  4. 4. Finally…. CSR is about how companies manage the business processes to produce an overall positive impact on society. (Mallen Baker, 2010 )
  5. 5. Carroll’s pyramid of CSR: Nature of Responsibilities (Carroll, 1991)
  6. 6. Lantos prefers to classify as… • Ethical: Morally mandatory (economic, legal and ethical responsibilities) • Altruistic: Fulfillment of philanthropic responsibilities (going beyond preventing possible harm) • Strategic CSR: Benefit the enterprise through positive publicity and goodwill (Lantos, 2001)
  7. 7. Sustainable tourism… "Tourism which is in a form which can maintain its viability in an area for an indefinite period of time" (Butler, 1993) Sustainable tourism development… "Meeting the needs of present tourism and host regions while protecting and enhancing opportunity for the future" (Inskeep, 1991)
  8. 8. Be responsible to…..
  9. 9. Reasons of adopting CSR in tourism sector… • Product improvement • Ethical and moral value enhancement • To gain customers and employees loyalty • To get favor of local community • To improve PR and image to its stakeholders • Increase brand image & gain competitive advantage • To escape themselves from new laws and regulations (‘good citizen’ attitude show)
  10. 10. Institutionalization CSR has been endorsed in of CSR Europe since the late 1990s. EC launched, in 2001, its own strategy through forming ‘Multi- stakeholder Forum on CSR’ It forms finally, in 2006, ‘European Alliance for CSR’ UNO is trying to promote the CSR agenda through the Global Compact. UN Global Compact is currently the largest and most recognized global CSR initiative (7700 member companies in 130 countries)
  11. 11. CSR Stakeholders Primarily Tourism enterprises and its shareholders Secondarily • Local and national authorities (municipality, ministry) • Other civil society and public interest groups (academicians, environmentalists) • International development agencies (USAID, GTZ) • Other international tourism organizations (UNWTO)
  12. 12. Application of CSR in Tourism Till now it’s in the ‘infant’ level The scarcity of ‘self-described tourism CSR initiative’ is mentionable WB, IMF, & NGO community is working as watchdog from 2002 Focus is merely on ‘environmental management’ not human rights, governance and labor WTTC (world travel and tourism council)…working to motivate organizations to cope CSR activities WTTC emphasizes on voluntarily adaptation of CSR ventures Implementing CSR and other environmental policies, the tourism sector lags behind other EU industries
  13. 13. Environmental CSR in Sustainable Tourism - Tourism CSR is only a part of Sustainable tourism development - Environmental impact minimization has received the most attention of CSR activities in tourism - According to UNEP study, around 30 codes of conduct were exercised by the stakeholders. Social and Ethical CSR in Tourism - Tourism plays significant role in poverty alleviation - Some discrepancies are found very often: Gender discrimination, labor exploitation, labor migration and trafficking etc. - UNWTO Task Force has developed a code of conduct regarding ‘Protection of Children in Tourism’ in 2000. - WCTE (world committee on tourism ethics) is working to settle disputes among concerns
  14. 14. Future Developments on CSR in Tourism Millennium Declaration by 189 countries (2000) was a milestone UNWTO launches ST-EP (sustainable tourism-eliminating poverty) in 2002 which is complimentary to MDGs (Africa & Asia). Different awards have been introduced for CSR performance in tourism industry. ISO 26000 series is going to be assigned for satisfactory role in CSR tourism (Sweden & Brazil is working to make it more meaningful)
  15. 15. H[]]]]]]]]]]A MID 111 To achieve ISO 26000, an organization has to show performance on these areas
  16. 16. Criticism / Other side of the coin Friedman argues (1970), the only responsibility of the managers is to increase shareholder value. The Economist (2005) shows, corporations act in the best interest of society when they act in their own best interest. Acting ‘good’ and advertising it may elicit charges of hypocrisy, leading other companies to decide that Corporate Social Responsibility might be more trouble than it’s worth (The Economist, 2004). Orlitzky et al. (2003) found: “A positive association between CSR and Financial performance across industries!”

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