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International Journal of Contemporary Hospitality ManagementCorporate social responsibility: what are top hotel companies reporting?Judy L. Holcomb, Randall S. Upchurch, Fevzi Okumus,
Article information:To cite this document:Judy L. Holcomb, Randall S. Upchurch, Fevzi Okumus, (2007) "Corporate social responsibility: what are tophotel companies reporting?", International Journal of Contemporary Hospitality Management, Vol. 19 Issue:6, pp.461-475, https://doi.org/10.1108/09596110710775129Permanent link to this document:https://doi.org/10.1108/09596110710775129
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Corporate social responsibility:what are top hotel companies
reporting?Judy L. Holcomb, Randall S. Upchurch and Fevzi OkumusUCF Rosen College of Hospitality Management, Orlando, Florida, USA
Abstract
Purpose – The purpose of this paper is to ascertain the level of socially responsible behavior of thetop ten hotel companies.
Design/methodology/approach – This study used content analysis method to identify anddescribe social responsibility (SR) patterns in web sites, annual reports and corporate socialresponsibility (CSR) reports for the top ten hotel companies as listed in Hotels magazine.
Findings – The findings reveal that 80 percent of the hotel companies analyzed reported sociallyresponsible activities relating to some form of charitable donations. A diversity policy was reported by60 percent of the hotel companies, while 40 percent provided some mention of SR in their vision ormission statements. Some companies were highly focused on providing a balanced approach to SRwhile other hotel companies were less focused in their efforts. The areas of SR that seemed to belacking with regards to reporting were environmental, and vision and values.
Research limitations/implications – Future studies should collect data from hospitalityorganizations and potential shareholders via interviews and surveys.
Practical implications – With rising consumer awareness regarding corporate responsibility (CR),it is important for the industry to begin profiling their efforts at SR as part of their overall corporateand business strategies.
Originality/value – This is one of the first research papers looking at CSR in the hospitalityindustry. It provides some practical implications about reporting of socially responsible activities forhospitality organizations.
Keywords Corporate social responsibility, Citizenship, Hotels, Economic sustainability
Paper type Research paper
IntroductionThe focus on corporate social responsibility (CSR) has been in the media within the USsince the 1990s, and as such has become a mainstay in many corporations’ publicrelations campaign arsenal. In an ideal world, a common assumption is that companieswill act in a socially responsible manner as the result of ethical obligations that areeither internally or externally motivated. This notion is supported by academic andtrade literature that suggests there are various reasons for engaging in sociallyresponsible behavior (e.g. Juholin, 2004; Mcintosh et al., 2003). These reasons rangefrom increased economic profits, employee organizational commitment, publicscrutiny, improved investor relations, the good of society as a whole, up to andincluding the general view that CSR is the “right thing to do” (Gan, 2006; Juholin, 2004).
At present there does not seem to be a dearth of academic based research studiesregarding the degree to which top lodging operators report their CSR initiatives in thepublic domain. Therefore, the purpose of this study is to ascertain the level of sociallyresponsible behavior as exemplified through a review of public domain media using a
The current issue and full text archive of this journal is available at
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Corporate socialresponsibility
461
International Journal ofContemporary Hospitality
ManagementVol. 19 No. 6, 2007
pp. 461-475q Emerald Group Publishing Limited
0959-6119DOI 10.1108/09596110710775129
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content analysis procedure. This review focused on the reporting activities of top hotelcompanies as listed in the publication, Hotels. This paper will first offer a proposeddefinition of CSR for the hospitality industry then provide a brief overview of theliterature surrounding CSR. Second, the research methodology will be explained. Next,the research findings will be presented and discussed. The paper will conclude bystating key conclusions emerged from the study and propose suggestions for practiceand future research.
Literature reviewCorporate social responsibility definedCorporate social responsibility is known by several names such as social responsibility(SR), corporate citizenship, and in the case of tourism, corporate sustainability. TheDow Jones Sustainability Index (2005) web site defines corporate sustainability asfollows:
Corporate sustainability is a business approach that creates long-term shareholder value byembracing opportunities and managing risks deriving from economic, environmental andsocial developments. Corporate sustainability leaders achieve long-term shareholder value bygearing their strategies and management to harness the market’s potential for sustainabilityproducts and services while at the same time successfully reducing and avoidingsustainability costs and risks.
Another definition of social responsibility is provided in an association known asbusiness in the community (BITC). BITC defines corporate (social) responsibility as“. . . the management of a company’s positive impact on society and the environmentthrough its operations, products or services and through its interaction with keystakeholders such as employees, customers, investors and suppliers” (Business in theCommunity, 2005b).
One of the more cited definitions of CSR is proposed by Carroll (1979). He states thatbusinesses that practice social responsibility attend to “economic, legal, ethical, anddiscretionary (philanthropic) expectations that society has of organizations at a givenpoint in time” (p. 499). In doing so Carroll takes the perspective that businesses areresponsible to society and should do what is expected from society. On the other hand,Clarkson (1995) and Donaldson and Preston (1995) believe that businesses are notresponsible to society but responsible to their stakeholders and view CSR from thisperspective.
The commonality among these different definitions of social responsibility is thatcompanies should engage in socially responsible behavior as part of theirorganizational strategy. The outcome of embracing social responsibility as anorganizational strategy is that it offers the host organization a competitive advantagewithin the immediate marketplace (Porter and Kramer, 2006). For instance, accordingto a report published by Business for Social Responsibility, 67 percent of executivesstrongly agree that implementation of CSR initiatives provide a competitive advantagefor their organization (Business for Social Responsibility, 2006).
The scope of CSR reportingFrom the general public’s perspective there are mechanisms by which to gauge acompany’s presence or absence of socially responsible actions concerning social,environmental compliance, and sound investment practices. In the US, Generally
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Accepted Accounting Principles (GAAP) provides regulations regarding the disclosureof company financial information within the public domain (Defoe and Falk, 1998).Even though these annual reports have been traditionally used for financialinformation disclosure, it is not uncommon for companies to provide social andenvironmental disclosures within their annual report. The inclusion of social andenvironmental issues is not an anomaly because such inclusion is viewed as anindicator of overall company strength in the marketplace (Line et al., 2002).
On a grander scale, the European Union has activated the European ModernizationDirective that requires all member countries to create legislation with the explicitpurpose of reporting employee and environmental matters. At present the UK, TheNetherlands, and France are in compliance with this directive. In line with thisdirective, the UK passed the operating and financial review (OFR) regulation, whichrequires companies to generate reports of their social and environmental activities. TheOFR goes beyond the requirements of the European Modernization Directive and indoing so is expected to become the standard that other countries will use as abenchmark (Asmus, 2005).
In summary, it does appear that the emphasis on CSR is ramping up to be a globalinitiative. For instance, in a 2001-benchmark survey of the state of globalenvironmental and social reporting, it was found that over 65 percent of the world’slargest 100 companies engaged in some form of internet reporting of CSR issues (Lineet al., 2002). In addition, Esrock and Leichty (1998) noted that 90 percent of companyweb pages addressed at least one socially responsible issue with the common notationscentering on community involvement, environmental concerns, and public educationalsupport. It appears, however, that this interest in internet reporting is driven by theprimary purpose of presenting a positive public image building than anything else.Nonetheless, the interest in this dissemination medium is very complementary to therelease of CSR information via annual reports (Esrock and Leichty, 1998).
The state of CSR within hospitality and tourism enterprisesSince 1992, the trend in the hospitality and tourism industry has been to focus onenvironmental concerns, use of technology, and efficient use of energy (Kalisch, 2002).This emphasis was escalated to an international scale through the implementation ofagenda 21. Agenda 21 as forwarded by the World Travel and Tourism Council(WTTC), the World Tourism Organization (WTO), and the Earth Council setinternational guidelines relative to sustainable tourism. The WTO went on to establishthe Global Code of Ethics for Tourism (GCET), which is a “comprehensive set of tenprinciples whose purpose is to guide stakeholders in tourism development” (WorldTourism Organization, 2005). These ten principles are not legally binding but do serveas guidelines to central and local governments, local communities, tourism operators,and tourists concerning preservation of the environment.
In the European arena two prominent European hospitality organizationsestablished the Initiative for Improving CSR in the Hospitality Sector. In reference tothis initiative the European Federation of Food and Agriculture and Tourism TradeUnions and Hotels, Restaurants and Cafes in Europe drafted compliance parametersconcerning equal opportunity, non-discrimination, working conditions, “fair pay”,vocational training and life-long learning, health and safety, and the relationshipbetween employers and employees at all levels. This proactive stance is important to
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note because these unified actions are reflective of industry association adoption andengagement in socially responsible behavior as opposed to externally derivedgovernmental compliance directives.
Other initiatives such as that of “Green Hotels” have gained a foothold in lodgingoperators’ contribution to society’s concern for the environment. “Green Hotels,” aninitiative of the Green Hotels Association, focuses on programs that are designed tosave water, save energy and reduce solid waste (Green Hotels Association, 2005).Program components such as towel rack hangers and sheet-changing cards haveachieved positive responses by hotel management staff as well as guests for over tenyears (Green Hotels Association, 2005).
The Green Hotelier, a publication of the International Tourism Partnership, is amagazine whose readership cares about environmentally and socially responsible hotelbehavior as focused upon positive sustainable travel and tourism development (GreenHotelier, 2005). Another example of socially responsible behavior is displayed by theManhattan East Suite Hotels. In 2002, this hotel chain was the proud recipient of theNYSAE Social Responsibility Award. Manhattan East Suites received this honor due totheir invaluable community service to New York City and its citizens.
The general conclusions from this hospitality and tourism literature review is thatbehaving in a socially responsible manner has received increased attention over thepast decade by hospitality and tourism organizational and associations, has receivedincreased attention via public domain media outlets, and that these socially responsibleprograms are strongly related to the broader corporate socially responsible initiativesthat are occurring worldwide and in doing so has become more codified.
MethodologyThis study used content analysis as a technique to identify and describe patterns inweb sites, annual reports, and specified social responsibility reports for the identifiedhotel companies. According to Neuman (2003, p. 219) “content analysis is a techniquefor gathering and analyzing the content of text. The content refers to words, meanings,pictures, symbols, ideas, themes, or nay message that can be communicated”.
Through the content analysis process, themes were identified as being applicable todata analyzed. Many dimensions make up CSR, from the environment to theresponsible treatment of employees. This fact means that different companies oftenlabeled similar socially responsible behavior differently depending upon the source.For example, for the social responsible treatment of employees, sources categorizedthis area as workforce (Business in the Community, 2005a), employees (Clarkson, 1995),employee wellbeing (Jenkins and Yakovelva, 2005), and human resources (Alnajjar,2000). In an effort to determine which of these dimensions apply to the hotel industry,categories from several research articles (Jenkins and Yakovelva, 2005; Clarkson, 1995;Alnajjar, 2000; Esrock and Leichty, 1998) as well as SR web sites (Business in theCommunity, 2005a; Business for Social Responsibility, 2006) were analyzed. Afteranalyzing these sources along with the electronic media content of the hotels analyzed,the authors identified five categories that best fit the activities that hotel companieswere reporting. Those categories are community, environment, marketplace, visionand values, and workforce. It is interesting that these categories fit closely to thecategories identified by the Business in the Community web site. In an effort to further
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explain the content of these categories, key words were identified. The categories andkeywords are presented in Table I.
The study population represents the top ten hotel companies (by propertiesmanaged) as listed in Hotels magazine (Strauss, 2005). This is an annual listingcomposed by Hotels magazine (official publication of the International Hotel andRestaurant Association) called GIANTS, it compares the top ten hotel companies onspecified metrics. The top ten companies identified in the present study were selectedbased on the number of hotel units that each company managed. This list is shown inTable II.
To measure these hotel companies’ CSR reporting, a content analysis of companyweb sites, annual reports, and CSR reports available on the Internet were conducted.All companies that were analyzed for this research project maintained company websites and provided information regarding CSR issues via downloadable in PDF formator an equivalent document of their annual report or social and/or environmental report.In some cases, both the web site and the electronic media reports were used to identifyCSR issues. In an effort to uniformly capture CSR information, a Google search wasemployed, using search keywords from each category listed in Table II.
After identifying the CSR issues mentioned in the web sites and reports, theinformation was sorted into common themes by following Table II, which in turn led tothe development of the selected categories. Not all of the categories identified were usedin this study’s analysis since certain categories were absent.
Each company was coded for the presence or absence of CSR behaviors relating tothe five major SR areas during the last three months of 2005 as shown in Table III. Itshould be understood that tallies within each category represent the frequency of theobserved item and is not an assessment of quality for each instance. The researchfindings are presented below.
FindingsA matrix of the findings is presented in Table III and areas that were found to bereported on by the hotel company were noted by placing an X in the correspondingcategory. After the content analysis was performed, it was found that two hotelcompanies, Extended Stay Suites and Tharaldson Enterprises did not provide enoughinformation to be included in the final results.
Of all the companies observed, Hilton Corporation provided the most detailedinformation regarding their CSR activities. As a link on their web site, they provided an84 page CSR in Adobe pdf format. Of all the hotel companies researched, Hilton wasthe only company to provide a link to such a long report. This report contained areassuch as equal opportunity and diversity, human rights, health and safety, andenvironment and sustainability. They also mentioned diversity in their annual reportto stockholders but the majority of the information pertaining to their CSR efforts iscontained in their CSR Report. Hilton supports their commitment to SR by providingseveral statements throughout their web site. One of which appears at the top of theweb page called “Philanthropy and citizenship” states:
At Hilton Hotels, we practice corporate citizenship wherever we do business.
Another quote from the same web page by the Chairman explains Hilton’s commitmentto SR:
Corporate socialresponsibility
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Com
mu
nit
yE
nv
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men
tM
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ion
and
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ues
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omm
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tP
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Table I.Keywords
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As the world leader in lodging hospitality, we at Hilton recognize our responsibility tocorporate citizenship wherever we do business. Since our company was founded more than 80years ago by Conrad Hilton, and through the stewardship of his son, Barron Hilton, we havedemonstrated our commitment in this area through active support of a wide variety of causesand organizations.
Although the Accor hotel group does not provide a separate SR report (information isincluded in their annual report), they provided a vast amount of information on theirweb site regarding their CSR activities. The CSR section of their web site is labeled“Sustainable development”. The section contains the six major subsections ofshareholders, local communities, suppliers, environment, customers, and employees.The authors research also indicated that Accor is the only hotel company that reportshaving signed the United Nations Global Compact. In an effort to show theircommitment to the Global Compact, Accor provides a “management chart” that liststheir shareholders, objectives and how these comply with the ten articles of the UnitedNations Global Compact. Accor also has established a committee to follow the UnitedNations Global Reporting Initiative, which provides a framework of 90 sustainabledevelopment indicators for hotel companies to use as a guideline for SR reporting.United Nations Environmental Programme (UNEP) Monique Barbut, Director of theDivision of Technology, Industry and Economics states:
Accor’s global commitment to sustainability, and in particular to the UN Global Compact’sprinciples, is a terrific way to ensure a global spread of environmental and social goodpractices.
According to one of their stakeholders, Ulrika Rosen, Travel manager with Tetra LavalGroup Transport and Travel:
Accor has achieved our best “green rating” for its environmental actions.
Another quote from their web site shows how they integrate SR (which they callsustainable development) into all aspects of their business:
To make this commitment (to sustainable development) lasting, it must be integrated into allmanagement decisions and operating procedures (Accor Hotels, 2005).
Company Hotels managed
Marriott International 889Extended Stay Hotels 654Accor 535InterContinental Hotels Group 403Tharaldson Enterprises 360Global Hyatt Corp. 316Interstate Hotels and Resorts 306Starwood Hotels and Resorts 283Lourve Hotels 227Hilton Hotels Corp. 206
Source: Strauss (2005)Table II.
Top ten hotel companies
Corporate socialresponsibility
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Com
mu
nit
yE
nv
iro
Mar
ket
pla
ceV
isio
nan
dv
alu
esW
ork
forc
eA
BC
DE
FG
HI
JK
LM
NO
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arri
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££
££
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££
2.E
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ites
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3.A
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4.In
ter
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orts
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Notes:
A:
com
mu
nit
ies
and
char
itie
s(w
orld
wid
ean
dlo
cal)
;B
:jo
bs
for
han
dic
app
ed/d
isad
van
tag
ed;
C:
aid
sp
olic
y;
D:
emp
loy
eev
olu
nte
er;
E:
env
iron
men
t;F
:ar
chit
ectu
ral
inte
gra
tion
(cu
ltu
ral
her
itag
e);
G:
gu
idel
ines
for
sust
ain
abil
ity
dev
elop
men
t;H
:b
usi
nes
sp
artn
ers
and
sup
pli
ers
(div
ersi
ty);
I:re
spon
sib
leg
amin
g(g
ood
san
dse
rvic
es);
J:v
isio
n/m
issi
onst
atem
ent;
K:
cod
eof
con
du
ct(e
thic
s);
L:
boa
rdco
nd
uct
edC
SR
rev
iew
;M
:in
dep
end
ent
ver
ifica
tion
;N
:em
plo
yee
div
ersi
ty;
O:
fam
ily
serv
ices
/em
plo
yee
wel
fare
pro
gra
ms;
P:
chil
dca
re
Table III.Social responsibilitymatrix
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They go on to discuss a booklet circulated to management staff outlining thecompany’s values, principles and management practices a well as a video titledTogether, even more Responsible which features employees explaining how theyintegrate environmental protection into their day-to-day responsibilities (Accor Hotels,2005).
In addition to their internet reporting, Accor provides 34 pages in their annualreport detailing their CSR activities including a scorecard of their progress in this area.In this report, Accor addresses CSR initiatives such as sex tourism and aids policy thatare unique initiatives that are not addressed by any other hotel company in this study.To demonstrate their commitment to this issue, they state their objective for 2005 as:
. . . Signing the ECPAT Code of Conduct for the protection of children against the sexualexploitation in the tourism industry in at least three new countries, and distribute dedicatedmaterials for that purpose (Accor Hotels, 2005).
Although Marriott Corporation was one of the top three companies listed on the matrix,the information provided on their web site lacked specificity. Instead of detailedinformation, Marriott provides links to secondary pages. Their CSR page is labeled“Diversity” and addresses three areas; owners/franchisees, suppliers and theworkforce. However, the information contained on the sub-pages was limited indetail. They do provide a strong statement on the first page of their diversity sectionstating:
At Marriott International, diversity is more than a goal . . . it’s our business. From our globalworkforce to our suppliers, owners and franchisees, and customers and communities, wethrive on the differences that give our company its strength and competitive edge. In theprocess, we’ve set the standard for the entire hospitality industry (Marriott Hotels, 2005).
This general statement, however, does imply that Marriott is committed to sociallyresponsible behavior.
Intercontinental Hotels also had a section on their web site dedicated to CSR actions.The content of these pages focused on children, education, employee involvement, hotelsupport and supporting humanitarian efforts. Each of these categories has at least onepage of reporting dedicated to it. In an effort to show their commitment to CSR,Intercontinental Hotels provides a dedicated page that outlines their efforts. One suchstatement that seems to capture the essence of their stance on socially responsiblebehavior is:
Through volunteer and education programs, diversity initiatives, environmental protectionand in scores of other ways, we help the world become a better place, one community at atime. Wherever we are, we’re people taking care of people.
In addition, the information reported on their web pages, Intercontinental Hotelsprovided a link to a CSR report called “Overview: corporate social responsibility”. Thisreport was an easy to read summary of their CSR activities. As an indication of theirsocial responsible behavior, Andrew Cosslett, Chief Executive states:
We are building a culture at IHG that’s focused on driving returns for our owners and ondoing the right thing. This means concentrating on areas that fulfill our business objectivesand also create social benefit for the communities we work in (Intercontinental Hotel Group,2005).
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Global Hyatt Corporation’s web site focused mainly on their diversity efforts. Theyprovided information regarding diversity awards, in addition to sections devoted totheir employee and business-partner diversity efforts. The only section that is notdiversity related is a section called “community ally” which is a section that lists theircommunity outreach efforts and initiatives. Their employee volunteer program calledFORCE has proved some 900,000 hours of volunteer efforts to more than 400community organizations. Hyatt has won many awards relating to their diversityefforts, a few of which are listed below:
. DiversityInc.com rated Hyatt as one of the “20 Noteworthy Companies” in 2004.
. The National Association for the Advancement of Colored People presentedHyatt with an Exhibitor’s Award for our exemplary efforts and continuedcommitment to the organization.
. Child Magazine – recognized Hyatt as one of the “Best Hotels for Families” in2003.
. Fortune Magazine named Hyatt as one of “America’s 50 Best Companies forMinorities,” for a sixth straight year in 2004. In 2003, Fortune noted that Hyatthad the fifth most diverse workforce on the list.
In addition Interstate Hotels Corporation has a single web page on their web sitededicated to SR; the page is titled “Company values”. Listed on this page are twosections, one with a statement regarding their CR philosophy and another discussingtheir areas of charitable contributions. Their CSR Philosophy is as follows:
As a responsible corporate citizen, Interstate Hotels & Resorts believes we should play ameaningful role in the social and economic conditions of the areas we serve. Our philosophy isto participate in programs that support and improve the quality of life in communities inwhich our employees live and we do business. Our efforts include support from our individualhotels, as well as our corporate office.
The information regarding Starwood Hotels and Resorts’ CSR initiatives was difficultto locate. They do not provide a specific area of their web site dedicated to their efforts.In order to analyze and quantify their reporting information, it was necessary to jumpto several different areas of the web site. One of the areas of the web site was dedicatedto corporate governance. This page provided Adobe pdf files for information such asfinance code of ethics, corporate governance guidelines and code of business conductand ethics. Their web page titled “Company values” provided a statement of valuesincorporating their pledge to be socially responsible:
We celebrate the diversity of people, ideas and cultures. We honor the dignity and value ofindividuals working as a team. We improve the communities in which we work.
DiscussionThe research findings suggest that Hilton Hotels Corporation, Marriott Hotels, andAccor received the highest frequency of CSR reporting incidences. Two of these threecompanies (Hilton and Marriott) manage a large portion of hotels in the US while Accorhas a stronger presence in Europe. Of the ten companies analyzed, 80 percent reportedsocially responsible activities relating to some form of charitable donations. Theseresults coincide with a study conducted by Esrock and Leichty (1998). In their study,
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they found that “good deed” CSR issues were often reported on company web sites. Inaddition to the above results, 60 percent reported having a diversity policy regardingsuppliers/business partners as well as employees, 50 percent of the companiessupported an employee volunteer program, while 40 percent of the companies providedsome mention of SR in their vision or mission statement or related documents.
Only one hotel company, Hilton, performed both internal (board review) andexternal (independent) CSR audits. This clearly indicates their commitment to CSRissues above the other hotel companies researched in the sample. In addition, Hiltonwas the only company to report that they had written guidelines for sustainabledevelopment with regards to the development of new hotel projects. As well, Hiltonwas the only company to report their efforts regarding responsible gaming. GlobalHyatt and Extended Stay Suites presented socially responsible programs but to alesser degree than the other companies under review.
Referring back to the model developed in Table III, the authors identified categoriesof CSR reporting that are either highly reported by the hotels in the study or ifnoticeably absent represent gaps that need to be addressed. The “community” categoryseems to be the area where most hotel companies concentrate their efforts whenreporting their philanthropic activities being a highly publicized activity. Thepublicizing of corporate contributions has changed drastically over the past severaldecades (Muirhead, 1999). In the beginning, corporations felt a need to keep theircontributions quiet. More recently, corporations have seen the benefit of makingknown their contributions since research shows that good corporate citizenshipbenefits employee morale and assists in promoting the reputation of the corporation aswell as their brand image (Muirhead, 1999). For example, Marriott Hotels has seenbenefits in recruitment due to their community efforts (Webster, 2004). Communicatinga hotel’s CSR efforts effectively will aid hotels in communicating to potentialemployees their efforts and in turn possibly create a competitive edge when attemptingto recruit and retain employees.
Diversity, whether it applies to employees or business partners, is another area thatseems to be heavily reported. Marriott Corporation actually provided several webpages on their initiatives regarding diversity in all areas. The underlying premise isthat diversity within the employee ranks and among suppliers and business partners isa good virtue to practice. In research conducted by Mohr et al. (2001), respondentsstated that they would like to have systematic information regarding a company’ssocially responsible actions. Consumers in this study also stated that it was too hard toget the information needed. Some consumers specifically promoted the internet as away of disseminating CSR information (Mohr et al., 2001). Hence, providing detailedinformation via the internet can enhance a company’s image as well as provideinformation for CSR conscious potential consumers.
There were several categories in the matrix that only one or two hotel companiesreported on. Surprisingly, the environmental category was one that was not heavilyreported. According to Knowles et al. (1999) the push to “green” the hospitalityindustry has been less than successful. Furthermore vision, value statements and astated code of ethics were relatively absent in the reviewed media. The fact that astated code of ethics was absent seems to align with the fact that there is no unifiedcode of ethics for the tourism industry in the US; however, the Tourism IndustryAssociation of Canada has developed a code of ethics (Fleckenstein and Heubsch,
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1999). The authors assert that if the industry is to become more socially responsible,the development of a code of ethics would be the best place to start.
Study limitationsIt is important to note that this study analyzes the reporting of CSR activities and doesnot measure or verify those activities that might have existed but for some reason werenot publicly reported. Esrock and Leichty (1998) assert that there may be littlerelationship between a reporting of a company’s CSR and their actual CSRperformance. This view may not be a universal truth seeing that more companies aresharing certain public relations materials with the general public through the internet.For instance, however, the 2001 Benchmark Survey of the State of Global and SRReporting noted that over 65 percent of the world’s largest 100 companies use theinternet to report CSR activities (Line et al., 2002). This is perhaps why Esrock andLeichty (1998) report that image building via the internet has become an acceptablepublic relations practice.
As analyzed with other studies (Esrock and Leichty, 1998; Jenkins and Yakovelva,2005; Brammer and Pavelin, 2006; Lewis, 2003; Philip, 2003) most companies reporttheir efforts in order to improve their image. This goes back to the age-old question ofwhether engaging in CSR activities is to portray that a company is “doing good” toshow that you are “good” or doing it because it is the “right thing to do”. MichaelWoodley, vice president of distribution and marketing services of Independent HotelCorporation states that CSR activities are more than simply a nice thing to do, it can“assist in establishing the human face to your hotel to the outside world, as well as agood way of improving employee morale” (Webster, 2004). Hence, communicating thatyou are “doing the right thing, can show the public that you are “doing good”.
Conclusion and future researchThis study aimed to ascertain the level of socially responsible behavior as exemplifiedthrough a review of public domain media through a content analysis of the reportingactivities of top ten hotel companies as listed in the publication, Hotels. The resultsindicated that the top ten hotels could improve their reporting their CSR activities.
Several hotel companies such as Hilton and Accor are progressive in their reportingefforts of CSR activities. Clearly, more and more companies are beginning to realize thebenefits of reporting their CSR activities. With the increased popularity of theconsumer markets on the internet, providing this information is facilitated. In closing,White (2005) states that, “CSR is not an opinion; it is a reality”. However, for most of thehotel and hospitality industry, the reality has not hit. This in combination withconsumer acceptance of internet shopping for products, services and generalizedinformation means that incorporating a socially responsible presence via the web is asound strategy indeed.
Some examples of this sophistication in reporting include Hilton’s separate CSRreport and Accor’s multi web page documents covering many areas of CSR. Asindicated by our results, only one hotel company analyzed had an external verificationof their data, this company was Hilton. This verification shows the commitment thatHilton has given to their CSR efforts and is a good example for other hotels to follow.
There is little research available regarding CSR in the hospitality and tourismindustry, yet, it continues to be a “hot” topic in many other industries. The results of
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this study, begins a discussion that is long over due within the industry. It is time forthe hospitality industry, specifically hotel companies, to be proactive and live up totheir reputation of being “hospitable” not only to their guests but also to society.Perhaps this study shows how far the industry has to go in order to catch up withindustries like manufacturing in the reporting of CSR activities.
Furthermore this study has several limitations. First, web sites are constantlyevolving, this analysis was performed during the last quarter of 2005, and web pagesmay have changed since that time to include or delete information found in this study.Next, as this is a study of only ten hotel companies, it is difficult to generalize thefindings to all hotel companies. Last, simply listing areas that are reported by hotelweb sites does not provide details as to how much information were provided in eachcategory simply that the category was reported about on a hotel’s electronic mediasource. Readers must keep in mind that this study does not indicate what CSRactivities are being performed by the sample hotel companies, it only addressesinformation regarding the reporting of each company’s CSR issues in the categoriesdeveloped by the authors.
Given limitations of the current study, future research could include more in-depthstudies regarding the reporting of CSR issues by hospitality and tourism firms. Inorder to gain more insight into hotel industry CSR reporting this study could berepeated with a larger sample. With the wide rage of subject areas that CSRencompasses, specific areas such as community or employee relations could beresearched. In addition, much insight could be gained by comparing companies in thehospitality and tourism industries with other “champions” of CSR in order to determinehow far the industry needs to progress. With CSR being such an in-depth topic, specificareas of CSR such as donations or employee volunteer programs could be researched.There is a wide-open slate of topics to be delved into and much can be learned fromresearch that has been performed in CSR outside the hospitality and tourism industry.
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Further reading
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Henderson, K.A. (1991), Dimensions of Choice: A Qualitative Approach to Recreations Parks, andLeisure Research, Venture Publishing, State College, PA.
Hill, R., Stephens, D. and Smith, I. (2003), “Corporate social responsibility: an examination ofindividual firm behavior”, Business and Society, Vol. 108 No. 3, pp. 339-64.
Corresponding authorJudy L. Holcomb can be contacted at: [email protected]
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