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Corporate Social Responsibility in Different Business Areas
- 2. Negative Economic Impacts Negative Socio-cultural Impacts Negative Environmental Impacts
- 3. Inflation Opportunity cost Over-dependence on tourism
- 4. Overcrowding Over commercialization of traditional arts and crafts Demonstration effect Acculturation
- 5. Water pollution Air pollution Noise pollution Visual pollution Waste disposal problems Ecological disruption Environmental hazards Damage to archeological and historic sites Land use problems
- 15. CSR view on ethical issues CSR view on environmental aspects CSR view on social aspects CSR view on economics
- 29. community-based charitable activities food banks homeless shelters meal programs for the elderly and school nutrition programs demonstrating environmental responsibility through sustainable business practices, such as recycling programs and energy- and water- conservation measures. sustainable food choices through support of sustainable agricultural practices and sustainable seafood, as well as by offering organic and locally sourced menu items
- 30. Adding spices Herbs New flavor label indicating a health benefit consumed per person daily has increased improve the nutritional value strong marketing program Consistent Nutrition Labeling
- 31. The fast food giant JFC, through its foundation's FOODAID program, added a pledge to donate P100 million worth of food products – packed meals from Jollibee, Chowking, Mang Inasal, Red Ribbon, Greenwich, Burger King, Panda Express, and PHO24 – for health workers and checkpoint personnel
- 33. Promoting responsible drinking Prevention of underage drinking Responsible promotion
- 36. 1. Business 2. Staff 3. Guests
- 37. Reputation of the establishment Continuous Operation Control the possible destruction of properties Reduces cost
- 38. Reduces the workload of staff Reduces the risk of injury to staff Will be able to communicate easily with customers Establishes a peaceful place for both staff and guests Increases retention rate as staff feels secured
- 39. Reduces risk of injury Promotes a positive and accommodating atmosphere for the guests Reduces chance of violent behavior Prevents crimes
- 47. 1. A business does not exist in society to only make a buck for the owners. 2. Some companies and many individuals link legal requirements and ethics with social responsibility. That is not necessarily wrong, but it may cloud the issue of working toward CSR programs. 3. What a company does is often not purely profit oriented or socially oriented. 4. The argument about whether or not a company should participate in social programs will and should continue 5. There is personal benefit received through volunteerism at work.
Editor's Notes
- Rising energy consumption and the related issues of environmental pollution, increased cost of garbage and sewage disposal, surface consumption and loss of biodiversity put a lot of pressure on the environment. The loss of values and the effects of acculturation through tourism, as well as financial and sexual exploitation of the host population have become major social issues. Yet pure, unsullied nature, beautiful landscapes, cultural heritage, foreign cultures and a sound infrastructure represent the core elements of the supply side of tourism. To maintain these elements, the resources vital to tourism must be managed in a sustainable way and a preference for sustainable products and services should be encouraged. Since tourism is an important form of human activity, it can have major impacts. These impacts can be seen in the destination region where tourists interact with the local environment, economy, culture and society. The impacts of tourism are usually classified as economic, socio-cultural and environmental impacts.
- Inflation – is the progressive increase in the general level of prices of land, houses, and food brought about by tourism. Prices for these commodities can increase when tourist place extra demands on local services in a tourist destination. Opportunity cost – refer to the cost of engaging in tourism instead on another form of economic activity. For example, in rural area, opportunity cost refer to investing in tourism instead of farming, gardening or fishing. As a result, the country becomes so dependent on tourism revenue that any change in demand will lead to a major economic crisis.
- Overcrowding – if there is overcrowding of amenities, shopping and community facilities and congestion of transportation system by tourists, the local population cannot use them, hence they will become irritated and resentful of tourism. Domestic tourists may also become resentful of international tourist if their own attractions are congested by foreigners. It local attraction such as beaches are closed to the local residents and open for the exclusive use of tourists, the residents can become hostile towards tourism. Over commercialization of traditional arts and crafts – commercialization and loss of authenticity of traditional arts and crafts, customs and ceremonies can result if these are changed to suit the tourist demands. An example is when traditional dances and music performances are modified or shortened to fit the tastes and schedules of tourists. Another example is when a high quality traditional handicrafts are mass produced and sold as souvenirs to the tourists. These situations are the result of the insensitivity of handicraft producers and tour operators who are not concerned about cultural authenticity. Demonstration effect – in the demonstration effect, behavioral changes occur in the resident population by simply observing tourists. It is disruptive when the local residents become resentful because they are unable to obtain the goods and lifestyle shown by the visitors. Young people are usually susceptible to demonstration effects. It may encourage the more able and younger to migrate from rural areas to urban or even overseas in searched of a lifestyle demonstrated by the tourists. Acculturation – occurs when two cultures come in contact for any length of time, an exchange of ideas and products take place, that through time; produce various of levels of convergence between the culture that they become similar.
- Visual pollution – poorly design hotels, facilities and other buildings incompatible with local architectural style. Unsuitable materials, inappropriate landscaping, big ugly advertising, overhead electric and telephone lines. Overuse of fragile natural environments by tourist can lead to ecological damage, examples are stunting the growth of vegetations in the parks by tourist who walk through them, trees being cut by hikers and campers to use as a fuel to make camp fires. Deforestation, collection of sea shells, coral, turtle shells.
- n recent decades, consumer awareness of social and environmental issues has increased markedly. Companies are progressively integrating sustainable development into their growth strategies for both ethical and profitable reasons, especially if they are to continue attracting the younger, socially active customer
- Sustainable hospitality involves integrating eco-friendly practices into every aspect of the industry's operations. This encompasses reducing waste, conserving energy and water, sourcing local and organic products and adopting responsible tourism practices. The Green Hospitality Program provides third-party verification that facilities in the tourism, hospitality and recreation sectors meet environmental best practice standards and demonstrate a strong commitment to water quality, water conservation, waste minimization, resource conservation, and energy efficiency.
- Impact on hospitality industry Environmental policies are on the agenda for all businesses and rethinking hospitality as a sustainable practice is becoming an increasingly urgent matter. Indeed, the hospitality sector is known for its outsized environmental impact. Thus, hoteliers have shifted their focus to sustainability and its challenges, as they begin to realize that making greener choices will benefit them because meeting their customers’ appetite for a more “conscious consumerism” is simply good business. This is why Corporate Social Responsibility has emerged as an indispensable priority for business leaders around the world. CSR means that a company is implementing socially responsible practices into its business and is responsible for its actions related to society, based on a triple bottom-line approach: people (community), planet (environment) and ethics. The crux of CSR includes environmental concerns, respect of local communities, technology use and energy consumption. The purpose of this article is to shed light on several companies that have shifted their strategies to cater to a younger generation of more environmentally and socially active customers, and to encourage other companies to take similar action. Contribution to a specific issue The negative environmental and social impacts of the hospitality industry must be mitigated if companies are to be sustained and profitable in the future. It has been proven that CSR initiatives improve service quality. Indeed, a socially responsible activity has a positive impact on customer satisfaction, leading to retention and loyalty. CSR’s main goal is to create a positive image of the industry, do business in a sustainable and ethical way without compromising comfort or quality for guests, while always striving to improve their experience. CSR view on ethical issues A company should ensure it abides by the strictest ethical and moral standards so all stakeholder groups (e.g., management, employees, shareholders, and consumers) are on board with its strategy and practices. CSR view on environmental aspects A company should use its resources while minimizing its impact on the environment, and have projects that reduce its footprint - otherwise the company could attract negative publicity. CSR view on social aspects A company should not have a negative effect on the values - or any other social aspects - of the communities in which it operates. CSR view on economics Firms should invest in better standard operating procedures and emerging environmental technologies to cut operating costs.
- CSR is no longer a vague concept with limited relevance to the foodservice industry. In today's high tech world, news spreads quickly; everyone is expected to do his/her part to take care of the world, and corporate responsibility is a business necessity. Firms are expected to go beyond their profit-oriented activities and boost the well-being of the community. Modern consumers increasingly make purchasing choices from businesses that they trust to be good corporate citizens. Such trust is difficult to earn and easy to lose; once a company loses trust, it may lose its customers' business forever. Although there may be no readily available tool for calculating the payback to a firm for its civic or public health actions, many corporate officials believe that "doing the right thing" has a value that cannot be measured. I
- The foodservice industry has played a significant role in the development of this epidemic, even if that role is only one of several contributing factors. Americans are dining out today more than ever before; almost half of consumers' food dollar is now spent in restaurants and other foodservice establishments. Many persons are getting at least one-third of all their calories from restaurant foods, and the higher frequency of eating meals outside the home has been associated with adverse nutritional consequences (Frumkin, 2010; Kant & Graubard, 2004). The foodservice industry has a record of becoming actively involved in social issues, including smoking and foodborne illnesses (McCool & McCool, 2010). Today consumers are expecting businesses to behave responsibly and are looking for more information about the food they are consuming and its impact on their health (Frumkin, 2010). Thus, it seems logical that the foodservice industry should recognize that it has social responsibility regarding the obesity epidemic and take the initiative in assuming a leading role in the nation's efforts to combat obesity, a far more critical public health issue than any previously faced in the U.S. Such a proactive approach would reflect the foodservice industry's long-standing support of each operation's local community while also helping to deflect potential obesity-related legal and legislative actions that would be detrimental to the industry as a whole. Both smoking and foodborne illnesses represent significant public health issues related to the foodservice industry (McCool & McCool, 2010). One might ask whether the industry has taken actions to reduce the problems associated with these health issues because the industry believes that it has an ethical and a social responsibility to do so or because it has an economic interest in doing so. Perhaps it is both; perhaps the industry's economic interests are related to its ethical and social responsibility.
- Rendtorff (2009) noted that ethical principles are important to service firms, i.e., firms such as foodservice establishments that deal directly with people, and that such principles apply to all the firm's stakeholders, including both employees and customers. He defined four ethical principles relevant to these firms: autonomy, dignity, integrity, and vulnerability (See Table 1). In Table 1, the concepts embodied in each of these principles are identified, and the identification is expanded to illustrate how it might apply to the foodservice industry and the obesity epidemic. These principles could provide guidance to foodservice firms as they consider their relationship to the obesity epidemic and their ethical responsibility to all of their stakeholders, including their local community.
- Today business firms are expected to have ethical responsibilities; thus, they are expected to go beyond their profit-oriented activities and boost the well-being of the community. People tend to put their trust in responsible firms. Trust in a firm and the product sold is very important to a foodservice establishment, as food is closely related to the health and wellbeing of the customer, as has been noted by discussion regarding foodborne illnesses (McCool & McCool, 2010). CSR initiatives can reflect a strong public relations strategy that can lead to competitive advantages and long-term financial rewards, particularly in today's market environment, in which many stakeholders may have strong social concerns (Nicolau, 2008). While there is no firm definition of CSR, it should be noted that CSR is ultimately based on the recognition that businesses are part of society and that, as such, they have the potential to make a positive contribution to social goals and aspirations. Thus, CSR might be thought of as a concept whereby firms voluntarily integrate social and environmental concerns into their business operations and into their interactions with their stakeholders (Jones, Comfort, & Hillier, 2006).
- Adapted from Wildes, V.J. (2008).
- When the total foodservice industry is considered, the industry has a strong "track record" of involvement in local community activities and in support of the local community’s social needs. According to the National Restaurant Association (2005), 90% of restaurants participate in community-based charitable activities. They also help support food banks, homeless shelters, meal programs for the elderly and school nutrition programs. Many restaurants are demonstrating environmental responsibility through sustainable business practices, such as recycling programs and energy- and water-conservation measures. They are also offering sustainable food choices through support of sustainable agricultural practices and sustainable seafood, as well as by offering organic and locally sourced menu items. Some restaurants are taking note of consumer interest in animal rights and are specifying the use of products such as cage-free eggs and meats from humanely raised animals (Restaurant, Food, 2009). While such socially responsible actions are certainly desirable and may offer long-range benefits to both the establishments and their stakeholders, most do not directly address the obesity issue. In addition to the previously noted actions regarding advertising practices, foodservice industry CSR actions are needed regarding two industry-related key concerns reg
- It has been suggested that one way to encourage consumers to make better food choices, eat better nutritionally, and potentially reduce their risk for obesity, would be to provide nutrition information about menu items for consumers. Most consumers are unaware of the nutritional value of foods available to them in foodservice establishments. Generally, the caloric level and the amounts of fat and sodium in foods are higher than the consumer thinks; so, consumers may believe they are eating healthy foods when, in reality, the foods are likely to be contributing to their potential weight gain (Burton, Creyer, Kees, & Huggins, 2006). While there have been efforts to require restaurants to provide nutrition information for some time, such efforts have only recently gained strong support. Nutrition labeling would be consistent with the perspective that individuals are personally responsible for what they eat. If nutrition labeling provided consumers with information about their possible food choices, then, from this perspective, consumers could take responsibility for their food intake and choose more healthful foods (Kwan, 2009).
- All members of staff within the hospitality and retail industries need to appreciate and understand their responsibilities relating to alcohol, know how alcohol affects the body and be aware of the benefits and risks associated with alcohol consumption. Selling alcohol requires many skills and involves legal responsibilities - that is, the things you have to do as part of your job in order to comply with the laws. You also need to be aware of your social responsibilities - that is, the things you should do to run a good business and have a positive impact on your community.
- All establishments, regardless of the industry owes duty care to guests. This has been practiced for a long time and is applicable anywhere in the world.
- Each country has its own laws regarding the legal drinking age. Please refer to local laws when handling possible underage drinkers. For the Philippines, the legal drinking age is eighteen (18). For this lesson, we will briefly discuss the highlights of the law covering the legal drinking age of the Philippines. The following is Section 4. Prohibited Acts taken from S.B No. 2636 otherwise known as the “Anti-Underage Drinking Act.”
- Responsible Serving of Alcoholic Beverages Employee should understand that a 12 ounce glass of beer, a 4 ounce glass of wine and a 1 ounce serving of 100 proof liquor all have approximately the same 1/2 ounce of pure alcohol. They should know the legal definition of intoxication. While this varies, someone is legally intoxicated when the blood alcohol concentration (BAC) in his or her blood reaches 0.10 grams of alcohol or higher, per 100 milliliters of blood. How may drinks can someone consume before becoming intoxicated? There is no precise answer to this question because so many factors could influence the effects of alcohol. However, one approach that could be uses as a basis related to the weight of an individual to the number of drinks that may be consumed before reaching a BAC of 0.10 gram. A large heavy person experience fewer effects with the same amount of alcohol than does a smaller, lighter person. However, care must be taken in relying on this chart since it only considers weight and the number of drinks consumed. An active, fit individual has a high percentage of muscle in relation to fat and is typically less influenced by alcohol. Since women tend to have a higher percentage of body fat than men, women may absorb more alcohol into their blood streams than men of the same weight consuming the same number of drinks. Fatigue and many common illnesses also affect how the body responds to alcohol. When alcohol is consumed by someone in a weakened condition, the result is quicker intoxication.
- Responsible serving of alcohol is not just because an establishment is afraid of not complying with existing laws, but responsible serving of alcohol has many benefits for the business, staff, and customers.
- Reputation of the establishment - if an establishment is able to continuously provide alcoholic beverages without untoward incidents, its reputation among customers increases which will equate to more revenue Continuous Operation – if an establishment follows responsible service of alcohol according to local laws, business would be allowed to continue. Otherwise, an establishment could be shut down Control the possible destruction of properties. – intoxication can lead to trouble and thus preventing this from happening reduces the possibility of a ruckus happening Reduces cost – in terms of having to hire more people to handle intoxicated guests and liability issues to insurances and legal claims.
- Today the aviation industry operates in a highly competitive environment, with CSR being one of the sources of competitive advantage. This industry transacts with several negative effects like noise, carbon dioxide emissions, pollution and work practices. Corporate Social Responsibility (CSR) is a strategic business activity that can boost the sustainability of the aviation industry. Clearly, aviation as one of the growing industries has an immediate effect on the environment because of the generally recognized contribution to climate change through fuel consumption and the consequent greenhouse gas (GHG) emissions (Holden, 2006). The proportion of pollution from airlines is increasing. Annually, millions of tons of all types of gases are transferred into the atmosphere owing to air transport. Many chemical combinations and heavy metals such as CO2 and Nitrogen Oxides cross international borders without control. As far as the atmosphere grants a rapid diffusion, the impact on the environment is not fast and direct but it is a prolonged and accumulated operation. The public has badly criticized public noise disclosure and the despoiled air quality nearby airports since this industry’s commenced. But recently, attention has shifted to the impact of aviation on the global climate. The industry will contribute significantly to the impact of global warming and is really regarded as one of the main causes of global warming. Specifically, the levels of carbon dioxide in the atmosphere are constantly increasing. It is one of many greenhouse gases (GHGs) and causes serious damage to the environment. The aviation industry also makes climate change by the discharge of water vapor, not just by releasing carbon dioxide.
- Corporate social responsibility (CSR) has a positive influence on passengers’ purchasing behavior and decision-making, thus providing airlines with a competitive advantage [1,2,3]. Airlines’ CSR is particularly important because the airline industry has a considerable environmental impact and is under pressure to decrease environmental harm and implement green management [1,2]. The increasing number of eco-conscious passengers has accelerated airlines’ CSR strategies. Some airline passengers have a greater awareness than others regarding social and environmental issues caused by airline companies; accordingly, these customers are increasingly choosing to purchase the services of companies that are socially and environmentally responsible [4,5]. Passengers’ increased eco-consciousness has necessitated airlines’ CSR endeavors to elicit passengers’ positive attitudes and loyalty, which are fundamental for airline companies’ long-term viability [6]. Therefore, we explore the effectiveness of airlines’ CSR in fostering passengers’ positive attitudes. This examination is of paramount importance owing to passengers’ increasing interest in social and environmental issues.
- A total of 181 children and 139 guardians from a community sponsored by Better World Tondo, a learning facility dedicated to improving the lives of children, had the opportunity to enjoy a day filled with educational exhibits and entertaining shows. In addition to exploring the park, the kids were also treated to snacks sponsored by Universal Robina Corporation (URC).
- A business does not exist in society to only make a buck for the owners. It also exists to help make society a better place. Some companies and many individuals link legal requirements and ethics with social responsibility. That is not necessarily wrong, but it may cloud the issue of working toward CSR programs. The emphasis on CSR should be after and in addition to obeying the law and acting ethically in situations where the law is not specific. What a company does is often not purely profit oriented or socially oriented. There is a continuum and much overlap. The argument about whether or not a company should participate in social programs will and should continue. It is important for managers to know why they do what they do and argue against what they believe to be inappropriate policy. There is personal benefit received through volunteerism at work.