This blog will investigate ethical responsibility of hospitality organisations to go green. It will cover CSR within organisations and advantages and disadvantages of it. Furthermore, essay will address importance of going green in global and contemporary business environment. Finally, it will discuss cost implications and challenges of implementing it in hospitality organisational context. Hospitality industry is one of fastest-growing and profitable industry in the world context (Politis, Litos and Grigoroudis, 2009). The overall review from hospitality literature (Daft, 2008; Pizman, 2009; Baker, 2009 and Olson, 2010) indicated that acting in a socially responsible way has received enhanced attention over the last years. Due the dynamism of climate changes, along with contamination, growth of population and the reduction of natural resources, environmental awareness has immensely increased within global organisational context ( Mowforth and Munt, 2009 and Olson, 2010). These issues enhanced awareness of environmental concern and get competitive advantage become key challenges in competitive hospitality business world (Baker, 2009).
A greatly accepted clarification of business ethical responsibility has not been consistent. A several studies by ( Dimitrou et al.,2011;Barsh and Lisewski ,2008 and Hawkins and Bohdanowicz, 2012) defined ethical responsibility as the methodical process that hospitality organisations use to assess actions as right and wrong. Holjevac (2008) defined business ethics as standards or principles which offer guidelines to the hospitality organisations to behave in moral and truthfulness way. Moreover, commitment to the ethical behaviour in hospitality business perspective has become a strategic concern within the global competitive circumstances (Molina-Azoríne, Claver-Cortés, López-Gamero and Tari, 2009). Dimitrou et al., (2011) proposed that due to the industry characteristics of intangibility, hospitality sector must attend to ethical concerns more cautiously compared to other industries. Hospitality industry interrelate with environment at every phase at their life cycle, that is no surprise that industry is a significant provider to climate change producing 274million tons of CO on the global level (Bohdanowicz, and Zientara, 2009).Similary, considering that hospitality sector ranks amongst the top industry in global context in terms of energy and water consumption, it is obvious that sector’s involvement to worldwide environmental issues are not insignificant (Bohdanowicz and Zientara,2009). Due the growing of environmental and climate uncertainties, and because of its features’, the hospitality industry is exceptionally vulnerable to environmental change (Kyriakidis and Felton, 2008 and Gössling, 2011).
In view of importance of ethical responsibility, there are extensive discussions among academic scholars about motives of hospitality organisations to implement sustainability strategy. Following, an amount of considerations have been identified in the hospitality literature as key drivers that establish hospitality participation in environmental strategy, such as; competitors, media, customer pressure groups, technology and information development, legislations, growth market share and stakeholders expectations ((Pizman, 2008; Olson, 2010 ;Bohdanowicz, 2006 and Gössling and Hall, 2008). However, literature review indicated that organisations tend to embrace an green approach as a reactive view (Molina-Azoríne, 2009 and Holjevac, 2009) in which green proactivity is linked with greater pressure from governing stakeholders (trade and government bodies) and proactive view from society and organisational stakeholders (guests, supplier, employed, social groups). Therefore, previous study outlined that social media, also represent new challenge for hospitality industry (Baker, 2009) and due to the global accessibility have significant role and profound impact on customer’ perceptions and attitudes towards environmental change and its potential effects in hospitality sector (Gössling, 2011 and Baker, 2009). In latest years, hospitality organisations have had to change their focus to online communication efforts and realised importance of linkage raising awareness’ of green indicatives and sustainable practice with “green communication”, (Valentine 2009:67), as the 91 per cent of travellers, trust more social media than any other channels (World Travel Market 2012).At the same time, there are a numerous challenges, that customers face it by getting informations through social media such as; the low level of reliability of informations regarding environmental issues (Chan, 2013), which leading to the confusion about green products effectiveness and questioned the authenticity and validity of environmental claims (Jin-zhao and Jing, 2009 and Chan, 2013). The findings by (Chan, 2009 and Hawkins and Bohdanowicz, 2012) suggested that ethical and social issues are equally significant drivers of eco-friendly commitment in business world.
Moreover, CSR is still a developing concept (Hawkins and Bohdanowicz, 2012). Corporate Social Responsibility business model in hospitality sector is platform focused on altruistic activities that will help organisation to reach its strategic goals (Olson, 2010).Furthermore, findings by Kolk and Tulder (2011) linked CSR concept to the sustainable development and its being match to the issues regarding natural environment, guest relationships, quality of life and ethics integrity. There is extensive debate associated with CSR benefits and a number of empirical studies argue that an organisation can enhance its competitiveness, growth, create sustainable jobs and strengthen guest satisfaction by adopting CSR practices (Mowforth and Munt, 2009; Kolk and Tulder, 2010 and Hawkins and Bohdanowicz, 2012) .As sustainability has become a key focus for organisations it was exposed that sustainable strategy can benefit environment, enhance brand reputation and save cost (Dallas, 2008). Moreover, CSR practice as management principles is designed and implemented to minimise negative environmental impacts (Goldstein, Cialdini and Griskevicius, 2008) and leave a positive inheritance for the society (Roberts and Tribe, 2008). In the hospitality industry perspectives, practices linked with green issues are diverse; they may compromise a wide range of activities from energy management, pollution prevention, waste management and stakeholders’ training regarding these actions (Goldstein, et al., 2008). A key message from some studies is that main advantage of CSR concept that organisation who adopted them is becoming more influential within the business setting. Existing research refers that in the current hospitality environment, communicating its CRS strategy organisations can attract more guests and improve retentions as a responsible hotel is better observed compared with one who doesn’t developed it (Bohdanowicz and Zientara, 2008). Within the hotel industry, there are some positive examples such as Hilton and Marriot that showcase how key hospitality players tries to be more responsible by having most compressive CSR practice as a business and society are strongly linked (Dodds and Kuehnel, 2010).
To a certain extent it is valid point that CSR is strongly related to the ethical behaviour but there are some sceptical views regarding CSR concept (Hawkins and Bohdanowicz, 2012). The vague character of CSR concept without effective meaning and highly doubtfully reasons for their implementation are questionable motives for some researchers (Weber, 2008 and Baker, 2009) why businesses engage in CSR strategy. A crucial argument for the inconsistency concerning CSR is that there is no strong link between organisation performance and its CSR strategy. Similarly, it is challenging to measure and prove CSR activities benefits in organisational context. In addition, key point in contradiction of CSR policy associate hospitality organizational goals are tied to profitable performance and that is reason why hospitality organisations are not concerned in environmental sustainability for ethical or philanthropic reasons (Pizman, 2009). Likewise, analytics critics against CSR stated that the objective of business should be grounded on the view of strong competition and monetary freedom within a market-driven environment (Graci and Dodds, 2008). Following argument outlined that hospitality organisations already support community and wider society by tax payments and focus on job creation and there is no need for environmental strategy (Sangaroon (2011). There is indication of great diverse hotel chains involving in CSR activities while the medium and independent sized organisations battle with the CSR concept, believing that this concept is appropriate to the businesses with better resources. As a result, significant number of specifically small hospitality organisations focuses on voluntary projects and CSR business model is not widespread adopted through hospitality sector (Graci and Dodds, 2008).
Given the rising awareness of CSR business model in hospitality industry, the examination of various studies and literatures did not provide significant evidences about cost saving opportunities associated to the eco-friendly aspect of sustainability in hospitality sector (Chan, 2008; Bohdanowicz, 2009 and Gössling, 2011). However, the expanding costs of water, waste disposal and specifically energy led many hospitality organisations to look for different options. Recently, UK established Savoy hotel, reduced operational costs by 30% and decreased waste by implementing new IT environmental system (Green Hotelier, 2011). Following, Inter-Continental Hotels by building new eco-friendly energy system save 20% more energy and have significant impact on overall monthly energy cost (Gössling, 2011; Green Hotelier, 2011). The key hospitality player, Marriott Hotels reported that by implementing linen reuse project saved an average of 17 per cent on water while Holiday Inn by installed latest, low-flow toilets significantly up by 25 per cent which is not require substantial amount of cost but give them competitive edge (Gössling, 2011). Overall, the cost continuously lies in the testing and maintaining but these savings, if they incorporated in through within, whole organisations, could provide a repayment in about two years (Bohdanowicz, 2009). By focusing on resource consumption, hospitality organisations may increase performance and have impact on guest’s attitude.
Eco-friendly or green management system is often endorsed as a cost-cutting prospect but for many hospitality organisations this is not an actuality. The stress of implementing eco-friendly practices has been placed on structures such as eco-friendly auditing, impact valuation and accreditation that becomes a limitation for many hospitality organisations particularly in financial challenging times (Tzchentke, Kirk and Lynch, 2008). Financial restrictions has been linked to the size and operational structure of hospitality organisations as expected implementing eco-friendly system can add additional pressure on performance, particularly in small hospitality units (Tzschentke et. al.,2008). Additionally, a successful eco-friendly system involves time, knowledgeable employees’ and most importantly money (Chan, 2008). Implementation expenses in business environment emphasise; training, process modification, organisational and technology adoption, legal documentation, process modification, registration fees, registration maintenance, organisational adoption and legal costs (Valentine, 2009 and Bohdanowicz, 2009). Measuring cost performance in hospitality organisations has it particular issues as there is a little compromise about cost indicators and measurement tool to be applied (Nidumolu, Prahalad and Rangaswami, 2009). While some literature evidence support view that cost reduction is significant driving forces in green strategy, some authors believes that cost savings are possible to occur only in energy management fields (Tzschentke,Kirk, Lynch, 2004 and Batler, 2008).This criticism is specifically, applicable for the small hospitality organisations where cost reduction offer less substantial saving opportunities compare with other operational aspects (Tzschentke, et. al.,2004; Tzschentke et. al.,2008). From guest point of view, study by (Chan, 2013) claimed that guests in hotels are enthusiastic to pay a higher price for hospitality product or service if some amount is donated to green actions. The outcomes of this research may not reveal the complete picture of hospitality industry as the example was limited to the hotels in particular part of the world (Chan, 2013).
Following the study activities of diverse authors conclude that it’s evident that environmental issues and looking for sustainability have become significant driving forces in contemporary global world. It is clear, as the awareness of the necessity for defending natural reserves increases, environmental friendly strategy are starting to expand and become key challenge in competitive marketplace. The research summarised the advantages and disadvantages of CSR business approach in hospitality context and stressed importance of implementing this model in terms of gaining competitive advantage. By summarising the significant concerns surrounding cost implication of eco-friendly strategy, the research indicated that there is a certain pressure on hospitality organisation to adopt environmental practices. In addition, there are linkage between commitment to the eco-friendly management and positive impact on organisational financial performance. The evidence has showed there is no general clarification associated to the hospitality organisation to adhere in ethical manner and go green and emphasise a number of challenges that organisations face it in contemporary global world. Overall research evidence, have found that going green is a good choice and decision and acquires many advantages. Even if hospitality organisations are not able to afford the costly green and environmentally opportunities, such as a new IT green system, rooftop solar heating practise or green building project, there are many low cost options available, such as implementing a towel replacement system or using florescent lights. By making these changes and implementing green model, hospitality organisations can attracts more guests, increase profit, protect environment and also it can support wider society.
References
Bohdanowicz P., Zientara P. (2009), Hotel companies’ contribution to improving the quality of life of local communities and the well-being of their employees, Tourism and Hospitality Research 9(2), 147-158
Gössling, S. (2011).Carbon Management in Tourism: Mitigating the Impacts on Climate Change ,London: Routledge
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