The document presents research on customer awareness and perception of corporate social responsibility (CSR) activities related to the environment conducted by hotels. It outlines the objectives to study customer awareness of hotel CSR programs and actions, and customer reactions to CSR activities. It discusses environmental issues addressed by hotel CSR like waste and defines CSR. It reviews literature on customer expectations of socially responsible companies and awareness of CSR. It also examines specific CSR activities by hotels in areas like water, waste and energy reduction. Findings show CSR enhances customer trust but awareness varies, and a combination of CSR and good service most impacts purchasing decisions. It recommends increasing employee CSR awareness and marketing CSR programs.

1. Presented by:
Sally Kirana
Phoebe
CJ Lim
Mervin

2. Outline
• Problem Statement
• Objectives
• Environmental Issues
• Concepts of CSR
• Awareness of Hotels regarding CSR
• Customers Perception
• CSR activities by Hotels
• Customer Perception on CSR Activities by Hotels

3. Problem Statement
• Low awareness and participation of hotel guests on the CSR
program from hotels

4. Objectives
• To study the customers’ awareness of CSR done by hotels.
• To identify the actions that has been taken by hotels regarding
CSR – environment section.
• To study the reaction and perspective of customers regarding
CSR – environment section.

5. Environmental Issue
• Wastage
• Deforestation
• Energy Consumption

6. Concept of Environmental CSR
• “Businesses or organizations that are responsible to go beyond legal
requirement to make a positive impact on society and the
environment through their management” (OWW Consulting, 2010)
• According to Welten (2012), CSR is the silent revolution going on and
others call the whole thing a total hypocrisy.
• "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,
2010)

7. Awareness of Environmental
CSR
• Customers are looking for companies to present them with purchasing
decisions which can be taken without compromising the future (Baker, M.
2012).
• 76 percent of consumers report a willingness to pay more for a product
from socially responsible company and over half are willing to pay 6 percent
or more (Hopper, C 2010).
• Customers who paid more for the products and services have the rights to
demand what they want, and they expect more efficient environmental
solutions (Francoise Quairel-Lanoizelee, 2011)

8. Customer Perception
• Hospitality industry seems to have increasingly responded
positively to the implementation of CSR, because of the
perception that customer have on the meaning of being
responsible. Therefore, they have started to turn their
organization to more ethical practices as it is desired (A K,
2011).

9. Environmental CSR activities by Hotels
• Marriott set out specific steps the company can take in five
key areas: water, waste and energy; supply chain; green
buildings; helping protect the rainforest; and employee and
guest engagement (Just means, 2010).
• Berjaya hotel’s CSR program focuses in biodiversity
conservation such as coral reefs around Malaysia. The Berjaya
Hotels & Resorts hosts a bi-yearly CSR awareness program
(Just means, 2010).

10. Environmental CSR activities by Hotels
• Minimizing the use of materials that may be
harmful to the environment
• Providing appropriate environmental training for
employees
• Raising awareness of environmental issues
amongst all of its employees, partners and
suppliers
(Jones, P., Comfort, D. and Hilliter, D. 2006).

11. Customers’ Perception
• There is a strong connection between the ethical behavior of
the companies and customer’s purchasing decision
(Cristache, Micu and Eliza, 2010).
• More than 75 percent of consumers say that it is important
for companies to be socially responsible as according to
Burson-Marsteller
• And 38% of respondents will spend the same or more for
products and services from socially responsible companies

12. Customers’ Perception
• According to Mr. Ikram (2012), people nowadays more aware of the
environmental issues, especially, climate change. Therefore, most of
them are likely to support the hotels which implement
environmental CSR program.
• Berjaya UCH students (2012) who are knowledgeable about CSR,
stated they don’t even aware of the hotels doing CSR if they don’t
provide a sign of practicing that kind of program.

13. Findings
• The purpose of doing CSR is to enhance customer confidence
and trust in the hotel brands.
• Hotels have been practicing CSR toward climate change to
build reputation, reduce cost and gain profit on it.

14. Findings
• Customers’ perception differs depending on the individuals
because of the knowledge and point of view of CSR.
• Doing environmental CSR is not the only key factor to get
customers’ purchasing decision- needs a combination of both
service provided and implementing of the “green practicing”.

15. Recommendation
• Create employees awareness about CSR is essential.
• Doing CSR marketing.

16. Conclusion
• CSRs have been practiced in a great number of sector
business, especially in Hotel sector.
• Problem: low awareness and participation of customers.
• Doing CSR brings benefits to hotel organization.

17. References
• Baker, M. (2012). Corporate social responsibility. [online] Available at:
http://www.mallenbaker.net/csr/Environment.html [Accessed: September 16, 2012]. J
• Berjyaya UCH students (2012). Customers' perception on environmental CSR in hotel sector.
Interviewed by Sally Kirana and Dao Ngoc Nga [in person] Berjaya University of Hospitality,
September 20, 2012.
• Cristache, N. et al. (2010). The analysis of the customers' perception on CSR - tridimentional
approach - cultural, economical and social. [e-book] Economics and Applied Informatics.
p.314
• Hopper, C. (2010). Corporate social responsibility in Hospitality industry. [report] p.4.
• Ikram (2012). Customers' perception on environmental CSR in hotel sector. Interviewed by
Sally Kirana [in person] Berjaya University of Hospitality, September 20, 2012.
• Jones, P. and Comfort, D. (2006). Reporting and reflecting on corporate social responsibility
in the hospitality industry. 18 336.
• Laura P. Hartman and Joe DesJardins, (2011). 'Business and Environmental Sustainability'.
In: (ed), Business Ethics: Decision Making for Personal Integrity & Social Responsibility. 2nd
ed. New York: McGraw-Hill. pp.48
• Marsteller, B. (2010). The 2010 Corporate Social Responsibility Survey. Burson-Marsteller,
[blog] March 29, 2010
• Vijayaraghavan, A. (2010). CSR and Hotels. CSR Blogs, [blog] December 20, 2010, Available
at: http://www.justmeans.com/CSR-Hotels/40633.html [Accessed: September 19, 2012].