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CSR in Tourism Presented by Md. Abdul Hamid European Master in Tourism Management University of Southern Denmark
23

Corporate Social Responsibility

Nov 13, 2014

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Abdul Hamid

For my Sustainable Tourism Development Course...I prepared this presentation on September, 2010.
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Page 1: Corporate Social Responsibility

CSR in Tourism

Presented by

Md. Abdul Hamid

European Master in Tourism Management

University of Southern Denmark

Page 2: Corporate Social Responsibility
Page 3: Corporate Social Responsibility

Understanding CSRUnderstanding CSRUnderstanding CSRUnderstanding CSR

The obligation of businessmen

to pursue those politics, to make those

decisions, or follow those lines of action decisions, or follow those lines of action

which are desirable in terms of the objectives

and value of the society

(H. R. Bowen, 1953).

Page 4: Corporate Social Responsibility

“CSR is a concept whereby

companies integrate

social and environmental concerns

in their business operations and in their business operations and

in their interaction

with their stakeholders

on a voluntary basis”(European Commission , Green Paper , 2001)

Page 5: Corporate Social Responsibility

Finally….Finally….Finally….Finally….

CSR is about how companies manage

the business processes

to produce an overall positive impact

on society.

(Mallen Baker, 2010 )

Page 6: Corporate Social Responsibility
Page 7: Corporate Social Responsibility

Carroll’s pyramid of CSR: Nature of Responsibilities

(Carroll, 1991)

Page 8: Corporate Social Responsibility

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)

Page 9: Corporate Social Responsibility

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… Sustainable tourism development…

"Meeting the needs of

present tourism and host regions

while protecting and enhancing opportunity

for the future"

(Inskeep, 1991)

Page 10: Corporate Social Responsibility

Be responsible to…..Be responsible to…..Be responsible to…..Be responsible to…..

Page 11: Corporate Social Responsibility
Page 12: Corporate Social Responsibility

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)

Page 13: Corporate Social Responsibility
Page 14: Corporate Social Responsibility

Institutionalization Institutionalization Institutionalization Institutionalization

of CSRof CSRof CSRof CSR� CSR has been endorsed in

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’‘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)

Page 15: Corporate Social Responsibility

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)

Page 16: Corporate Social Responsibility

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 � 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

Page 17: Corporate Social Responsibility

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 TourismSocial 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

Page 18: Corporate Social Responsibility

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�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)

Page 19: Corporate Social Responsibility

H[]]]]]]]]]]A

MID 111

To achieve ISO 26000, an organization has to show performance on these areas

Page 20: Corporate Social Responsibility

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).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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