Corporate Social Responsibility (CSR)

We as citizens of the world need to have responsibilities. Throughout the years mankind has evolved in many ways. 10 million years ago when humans made their first tools out of stone, woods and bones was the first step for evolution. Then came fire the most wonderful thing. We could cook our foods with it and keep warm through the night. Just as we were on the right path, we decided to evolve faster and faster. The hunt for resources began growing. The more valuable resources the more power you have against other countries. Millions of wars out broke for power. One major resource was oil. The earliest known oil wells were drilled in China with bits attached to bamboo poles. Oil has been a resource that many fight for. Millions of years later we still use it; for our cars, generate electricity, industrial factories etc. We all know too much of something good is bad news. So we see in our daily lives. From a leap forward we are heading for disaster. How did this get so far that it could be the end of us? Simply being greedy. Always wanting more and never to stop and think of what sorts of affects our decisions have on the planet and humanity itself.

Therefore the CSR or corporate social responsibility was created. Also called corporate conscience, corporate citizenship or responsible business. It is a form of corporate self-regulation integrated into a business model. It is a policy where a business monitors and ensures its active compliance with the law, ethical standards and national or international norms. The CSR strategies basically encourage companies to have a positive impact on the environment and stakeholders including consumers, employees, investors, communities and others. A broader definition of CSR is according to the Business Dictionary defines CSR as "A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs and (3) by earning adequate returns on the employed resources."

So CSR can make a huge contribution towards sustainability.

Now the topic of this business case is related to China at the moment. If we look at the rising Chinese inbound tourism you might think more money for the businesses that profit from these Chinese tourists. But the moment we stop to think about the economical aspects and really see the other aspects that are affected by the growing tourism and consumers.

What would we see? I see more pollution and waste being done.

Other people see opportunities and feel the urge to act upon this growing trend. More money invested to build hotels, restaurants, attraction parks and shopping malls. Therefore we see less and less nature, because nature is just a nuance that keeps us from making more money. We don’t need nature. We are better without it. We are smart, but we also have the ability to be stupid. The reason we are here the reason there is life is because of nature and many other things. Everyday by thinking to boost ones economy means destroying everything that makes life. The dead truth is that money makes us blind. We are never happy with our fair share, we always need more and that is the problem of mankind. Back to the topic on tourism. CSR measures the tourism businesses comprise the responsible use of natural and cultural resource, minimization of pollution and waste, conservation of landscapes, biodiversity, fair and responsible treatment of employees, suppliers and guests, fair use of local products and services as well as involvement and cooperation with local communities so as to improve the quality of local people. As we can see CSR measure a whole lot of things, but do corporates really report these as it is? Or do they report it as to how the public wants it known? I guess they only know the truth. But the concept of CSR has become a central part of corporate strategies for the tourism industry, because they have strong relationships with local communities in which they operate. Therefore having a strong influence on the socio-economic development of regions. Tourism a set of activities aimed at attracting visitors to a region, receiving them and ultimately satisfying their needs. So, why sustainability in tourism? Well, everything with consuming and living has effects on the earth. Sustainability is a way to preserve ecosystems and biodiversity, limit growth and improve the quality of life of host populations. Basically, when being a tourist you too have to contribute to all of those things.

China has 2.7 million hotel rooms and counting. Some argue that although the economic growth of China has slowed down in the recent months there is no reason to stop building more hotels. Ones estimate is that China will have 9.1 million hotel rooms by 2039. Now this puts pressure immense pressure on the country improving their sustainability regarding carbon emissions, energy and especially water consumption.

Studies have shown that in general, China’s hotel consumes more water and energy per square meter and also per occupied room than other large countries. The difference being in personal reasons, owners prefer lavish displays in public areas and lobbies that use high amounts of energy and water. The tourism industry of China has many challenges such as silo approach, lack of understanding, knowing and doing gap, misperception of sustainability costs and bias of Chinese hotel owners. Some Chinese Hotel owners don’t view sustainability as a competency even though studies have shown that it is. The way to move forward would be if hotel companies provide owners with case studies, project life cycle, prepare for future legislation and firms can highlight the consumers seeking green hotels. That may be a way to stimulate the Chinese hotel industry to take sustainability into account for the better of their country and the rest of the world.

We have the power to use our business to solve social and environmental problems. A few reasons I have found why it is critical for an organization to work with CSR principles are that employees feel better about themselves if their company is socially responsible. Studies have shown that they tend to be more productive and loyal. Another reason is that some consumers expect better business practices. If it the product or service is for a good cause the consumer will go for an extra mile to buy it. It’s also a moral imperative. According to Michael Porter and Mark R. Kramer in the Harvard Business Review, “When a well-run business applies its vast resources, expertise, and management talent to problems that it understands and in which it has a stake, it can have a greater impact on social good than any other institution or philanthropic organization.” Personally, I think that companies who see these moral imperatives are seeing more than just money. They see the value of life and how they are affecting it. They choose not to turn their backs on society. They as corporates have responsibilities.  The importance to control the aspects in the CSR guidelines are extremely important, because it is not fair to make a report look like what the public wants to see. CSR cannot completely help save the world, but it can help people see what kind of influence the corporate has on the environment.

A few reasons why companies should embrace CSR is that it could be cost savings. If a company wants to start engaging in sustainability it needs to find a way to start cutting their costs. An example may be to use less packaging or plastic. Finding ways to be more efficient while being friendly to the environment. It shows a good image to public. The companies engaging in sustainability demonstrates that they are not only there to make profit, but to also show concern on social issues.

A business can grow with or without social responsibility, but doing good for others allows a business to reap rewards in many ways.

That is why I personally find CSR a helpful guideline for corporates to follow.

Resources

(2011, september 12). Retrieved from europeancitiesmarketing: http://www.europeancitiesmarketing.com/corporate-social-responsibility-and-tourism/

(2011). Retrieved from http://blog.movingworlds.org/5-reasons-your-business-should-be-socially-responsible/

(2012, february). Retrieved from forbes: http://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/#307514244c03

(2015). Retrieved from movingworlds: http://blog.movingworlds.org/7-research-backed-reasons-your-business-needs-to-be-socially-responsible/

(2015, april). Retrieved from http://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp

(2016, august). Retrieved from expainthatstuff: http://www.explainthatstuff.com/timeline.html

(2016). Retrieved from http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1012&context=chrreports

siteresource. (2005, june). Retrieved from http://siteresources.worldbank.org/INTEXPCOMNET/Resources/CSR_in_tourism_2005.pdf