a literature review on csr

3
Ensuring STD through CSR: Idealism versus Realism Md. Abdul Hamid 1 As climate change gains global attention from events like the summit in Copenhagen held during December of 2009, the need for sustainable tourism is more important than ever (Deale and Barber, 2010). But the query simply arises who will proceed as the role player to make sure sustainable tourism development (STD)? The thinking is till now in infant level so an inclination of ‘pillow-passing’ among its stakeholders is noticed. Corporate bodies have come forward as ‘self-declared’ accountable faction in this endeavor. Now the concern arises, is it myth or really possible to ensure STD through performing corporate social responsibility (CSR)? In other industries, more or less, CSR has been recognized as a part of business policy. For an unknown reason, in tourism industry, this is not so apparent yet. Fragmented ventures of societal responsibility is observed, the reason might be…tourism is neither a phenomenon nor a simple set of industries. It is a human activity, which encompasses human behavior, use of resources, and interaction with other people, economics, and environments (Eraqi, 2010). The good thing is that the awareness in this issue is increasing among its stakeholders. It is universal that the motive of business venture is to earn profit. Besides, it’s true that the actions of business impact the local, national, and global community, so businesses have a responsibility to ensure that the impact is positive (Becken, 2007). For this, this is highly desired that the companies will act in such way so that the natural resources can be used generation after generations. In other words, value cration represents for a firm a basilar survivor factor on the long run, contributing to social needs and benefits (Formisano, 2002). Though most of the business organizations confess about their responsibility toward society, the basic question is: do the managers perceive CSR in the same way? A study on 1000 managers in eight large international firms concluded that the managerial perceptions of societal responsibilities differ in some respects from the mainstream models found in the CSR and business ethics literature (Pedersen, 2010). If they ‘point their guns’ in different targets, how will it be possible to achieve unique goal from this venture? On the other hand, while the notion of CSR is increasingly evident in the corporate world, among many civil-society advocates and in public policies it is ambiguous and contested on various grounds (Carroll, 1999), just like the concept of ‘sustainable development’ is contested and disputed. Many different approaches have been identified (Redclift, 1997; Hopwood et al., 2005; Redclift, 2005) and the contribution of CSR to sustainable development can be questioned (Moon, 2007). Conflict between shareholders and management, on CSR issue, is not new at all. From the very beginning, it is being tough to make the shareholders understand that through CSR practices they will earn benefit in the long run. As most investors expect revenue in the short term, it creates problem in the board meetings! Some educators and researchers also ‘add fuel in this flame’. For example, Friedman argues (1970) that the only responsibility of the managers is to increase shareholder value. As only businessmen have given them money to do business so the executives should ensure desired return for them. The craze (or appeal) of CSR is being deemed gradually also. Many studies have shown that the corporate decision makers calculate their ‘interest’ at first before launching any social welfare program. And so, aware publics are considering so called CSR as nothing but a ‘strategic weapon’ of gaining marketing goals. On the other side, in a report The Economist strongly criticized “acting ‘good’ and advertising it may elicit charges of hypocrisy, leading other companies to decide that CSR might be more trouble than it’s worth”. The logic behind this dispute is once 1 European Master in Tourism Management (EMTM) student under University of Southern Denmark.

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This literature review was done as part of the project paper of Sustainable tourism development course in October, 2010.

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Page 1: A Literature Review on CSR

Ensuring STD through CSR: Idealism versus Realism

Md. Abdul Hamid1

As climate change gains global attention from events like the summit in Copenhagen held during December of

2009, the need for sustainable tourism is more important than ever (Deale and Barber, 2010). But the query simply

arises who will proceed as the role player to make sure sustainable tourism development (STD)? The thinking is till

now in infant level so an inclination of ‘pillow-passing’ among its stakeholders is noticed. Corporate bodies have

come forward as ‘self-declared’ accountable faction in this endeavor. Now the concern arises, is it myth or really

possible to ensure STD through performing corporate social responsibility (CSR)?

In other industries, more or less, CSR has been recognized as a part of business policy. For an unknown reason, in

tourism industry, this is not so apparent yet. Fragmented ventures of societal responsibility is observed, the reason

might be…tourism is neither a phenomenon nor a simple set of industries. It is a human activity, which

encompasses human behavior, use of resources, and interaction with other people, economics, and environments

(Eraqi, 2010). The good thing is that the awareness in this issue is increasing among its stakeholders.

It is universal that the motive of business venture is to earn profit. Besides, it’s true that the actions of business

impact the local, national, and global community, so businesses have a responsibility to ensure that the impact is

positive (Becken, 2007). For this, this is highly desired that the companies will act in such way so that the natural

resources can be used generation after generations. In other words, value cration represents for a firm a basilar

survivor factor on the long run, contributing to social needs and benefits (Formisano, 2002).

Though most of the business organizations confess about their responsibility toward society, the basic question is:

do the managers perceive CSR in the same way? A study on 1000 managers in eight large international firms

concluded that the managerial perceptions of societal responsibilities differ in some respects from the mainstream

models found in the CSR and business ethics literature (Pedersen, 2010). If they ‘point their guns’ in different

targets, how will it be possible to achieve unique goal from this venture?

On the other hand, while the notion of CSR is increasingly evident in the corporate world, among many civil-society

advocates and in public policies it is ambiguous and contested on various grounds (Carroll, 1999), just like the

concept of ‘sustainable development’ is contested and disputed. Many different approaches have been identified

(Redclift, 1997; Hopwood et al., 2005; Redclift, 2005) and the contribution of CSR to sustainable development can

be questioned (Moon, 2007).

Conflict between shareholders and management, on CSR issue, is not new at all. From the very beginning, it is

being tough to make the shareholders understand that through CSR practices they will earn benefit in the long run.

As most investors expect revenue in the short term, it creates problem in the board meetings! Some educators and

researchers also ‘add fuel in this flame’. For example, Friedman argues (1970) that the only responsibility of the

managers is to increase shareholder value. As only businessmen have given them money to do business so the

executives should ensure desired return for them.

The craze (or appeal) of CSR is being deemed gradually also. Many studies have shown that the corporate decision

makers calculate their ‘interest’ at first before launching any social welfare program. And so, aware publics are

considering so called CSR as nothing but a ‘strategic weapon’ of gaining marketing goals. On the other side, in a

report The Economist strongly criticized “acting ‘good’ and advertising it may elicit charges of hypocrisy, leading

other companies to decide that CSR might be more trouble than it’s worth”. The logic behind this dispute is once

1 European Master in Tourism Management (EMTM) student under University of Southern Denmark.

Page 2: A Literature Review on CSR

this social responsibility might be a matter of ‘showcase’ and unfair means can be adopted to gain name and fame

by the companies.

Bramwell, B. and Lane, B. (1993) mention that the sustainable tourism is an economic development model

conceived to improve the quality of life for the local community, and to facilitate for the visitor a high-quality

experience of the environment, which both the host community as the visitors depends. Moreover the pursuit of

sustainability is never-ending. Environmental conditions and patterns of resource use are dynamic and interact in

complex ways (Lebel, 2010).

In this process the main parties are companies and customers. The corporations are speaking for ‘social

responsibility’ but what about customers? The findings do not show very positive somewhat. Evidence in the UK

shows that less than 1% of all outgoing holidays booked in the UK give any real priority to the environment (Mintel,

2005). Boon, Flucker, and Wilson (2008) test the effect of a 10 year program of awareness reising to promote

ecological sustainable tourism in south east Australia and conclude that the program had almost no effect over the

period. In response, different education programs are proposed.

Finally it can be said, only orporate bodies will not be able to take the charge. Even if they try, it will not bring so

mentionable output. And very simply, they will not attempt to make annoyed their king (Consumer is the king: Paul

Mazur). So, the hope of achieving STD through CSR is very far from the reality. We have to change ourselves to

ensure sustainability of nature as well as tourism industry. At last it can be quoted - The behavior change literature

underlines the necessity of examining tourism and people’s willingness to adapt to more sustainable lifestyles

(Miller, 2010).

References:

Barnea, A. and Rubin, A., (2010) ‘Corporate social responsibility as a conflict between shareholders’ Journal of Business Ethics,

Springer 2010.

Becken, S. (2007) ‘Tourists’ perception of international air travel’s impact on global climate and potential climate change

policies’, Journal of Sustainable Tourism, 15 (4), 358-368)

Boon, P., Fluker, M., and Wilson, N. (2008). A ten-year study of the effectiveness of an educative programme in

ensuring the ecological sustainability of recreational activities in the Brisbane Ranges National Park, South-Eastern

Australia. Journal of Sustainable Tourism, Vol 16 (6), 681-697.

Brammer, S. and Millington, A. (2005) ‘Corporate reputation and philanthropy: An empirical analysis’, Journal of Business Ethics,

61, 29-44.

Bramwell, B. and Lane, B. (1993) ‘Sustainable tourism: An evolving global approach’ Journal of Sustainable Tourism, 1, 1-5

Carroll, A.B. (1999) ‘Corporate social responsibility: Evolution of a definitional construct’, Business and Society, 38 (3), 268-295.

Cheung, D.K.K., Welford, R.J. and Hills, P.R., (2009) ‘CSR and the environment: Business supply chain partnerships in Hong Kong

and PRDR, China, Corporate Social Responsibility and Environmental Management, 16, 250-263.

Deale, C.S. and Barber, N. (2010), ‘Sustainability: What matters to students, educators, and hospitality and tourism

professionals’; BEST EN Think Tank X paper.

Dobers, P. and Halme, M. (2009) ‘Corporate social responsibility and developing countries (editorial)’, Corporate Social

Responsibility and Environmental Management, 16, 237-249.

Dorbes, P. (2009) ‘Corporate social responsibility: management and methods’ Corporate Social Responsibility and

Environmental Management, 16, 185-191.

Eraqi, M., I. (2010), Social responsibility as an innovative approach for enhancing competitiveness of tourism business sector in

Egypt. Tourism Analysis, 15 (1), 45-55

Page 3: A Literature Review on CSR

Fougere, M. and Solitander, N. (2009) ‘Against corporate responsibility: Critical reflections on thinking, practice, content and

consequences, Corporate Social Responsibility and Environmental Management, 16, 217-227.

Friedman, M. (1970) ‘The social responsibility of business is to increase its profits’, New York Times Magazine, 13 September,

New York.

Hopwood, B., Moller, M. and O’Brien G. (2005) “International codes of conduct and corporate social responsibility: Can

transnational corporations regulate themselves?’, Transnational Corporations, 8 (1), 143-180.

Lebel. L., et al. (eds), ‘Sustainable production consumption systems: Knowledge, Engagement and Practice’, Springer Science +

Business Media B. V. 2010, 1-12.

Miller, G., et al, (2010) ‘Public understanding of sustainable tourism’, Annals of Tourism Research, Vol. 37 (3), 627-645

Mintel (2005). Ethical holidays. London: Mintel-Leisure Intelligence.

Pedersen, E.R. (2010) ’Modeling CSR: How managers understand the responsibilities of business towards society’, Journal of

Business Ethics, 91, 155-166.

Redclift, M. (2005), ‘Sustainable development (1987-2005): An oxymoron comes of age’, Sustainable Development, 13, 212-227.

Redclift, M., (1997), ‘Postscript: Sustainable development in the twenty-first century: The beginning of history’, Policies of

Sustainable Development: Theory, policy and practice within the European Union, Baker, S., Kousis, M., Richardson D. and Young

S. (eds), Routledge: London; 259-268.

Schwartz, B. and Tilling, K. (2009) ‘ISO-lating’ corporate social responsibility in the organizational context: A dissenting

interpretation of ISO 26000’, Corporate Social Responsibility and Environmental Management, 16, 289-299.