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