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The Influence of Geo-Political Factors on the Corporate Social Responsibility of Multinational Hospitality Organisations

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The hospitality industry is a multi-billion dollar one and the sector therefore has alarge impact not only on the economy of the given region but also on its surroundings

As aresult, companies within the industry are making great strides towards, and putting more andmore emphasis on sustainable development. The demands of the society, where concerns aboutsustainability have an increasing potential, are still growing.

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The U.S. government also was forced to pass legislation regarding the fair treatment of employees, use of child labor, workplace safety, and the formation of trusts (Farmer, 1985). It was around this time in 1906 that Upton Sinclair published his famous book, The Jungle, which highlighted the scandalous working conditions at major meat factories in the US. As a result of the book, the public essentially demanded corporate social responsibility regarding the working conditions for factory employees and the cleanliness of food processing activities. The public outrage eventually led to the creation of the Food and Drug Administration which serves to ensure corporations are in fact looking out for the best interests of their public. Essentially, CSR is a result of industrialization (May et al., 2007). During the times of the Great Depression and World War II (WWII), further interests in social controls continued to arise in the forefront of American business. Labor protection, banking reform, and public utility controls were just a few of the social reforms of the time (May et al., 2007)

American business however, was not alone in their CSR endeavors.

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Companies engaging in CSR related activities can build up a resource or capability. As a consequence, the company may have a sustained competitive advantage allowing for a continuation of its economic activities for a long-term period. Making use of year-benefits and firm-level data on environmental profitability, Russo and Fouts (1997) empirically tested this theory, resulting in both variables being positively correlated. This implies firms with higher environmental performance also present higher financial results. Recent studies regarding hotel industry (García-Rodríguez & Armas-Cruz, 2007; Lee & Park, 2009) have found hotel firms’ CSR has a positive relationship with financial performance; thus, it is bringing economic as well as social and cultural benefits

The hotel business sector is one of the key elements of the tourism industry; consequently, it is the one which should be the most involved. Therefore, addressing any of these key areas denotes a corporate interest in environmental and social responsibility.

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Summing up, scholars and researchers are paying more attention to CSR and its influence because of the indirect effect of CSR on organizations, communities, and stakeholders

More and more businesses expand their strategies and operations to include social and environmental concerns (Izzo, 2014). The purpose of this quantitative causal-comparative study was to examine the potential influence of familyowned hotel owners’ attitudes towards CSR and star ratings on hotels’ occupancy rates.

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Roner, L. (2006). The hospitality industry: Have hotels checked out on responsible tourism? Ethical Corporation.

Russo, M. V., & Fouts, P. A. (1997). A resource-based perspective on corporate environmental performance and profitability.

Scanlon, N. L. (2007). An analysis and assessment of environmental operating practices in hotel and resort properties. International
Journal of Hospitality Management, 26(3), 711-723.

Sharpley, R. (2000). Tourism and sustainable development: Exploring the theoretical divide. Journal of Sustainable Tourism, 8(1), 1-19

Toro, D. (2006). El enfoque estratégico de la responsabilidad social corporativa: Revisión de la literatura académica. Intangible
Capital, 2(4), 338-358.

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