The Relevance of CSR in the Hospitality Industry According to the GCET and the SDGs

The Relevance of CSR in the Hospitality Industry According to the GCET and the SDGs

Francisca Castilho, Rita Oliveira, Andreia Moura, Susana Lima, Eugénia Lima Devile
Copyright: © 2022 |Pages: 22
DOI: 10.4018/978-1-7998-9285-4.ch005
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Abstract

This chapter aims to analyze the importance of corporate social responsibility (CSR) in the hospitality sector according to the global code of ethics for tourism (GCET) and the 17 Sustainable Development Goals (SDG), defined in the Agenda 2030. To achieve this objective, a literature review was carried out about the concepts of sustainability and CSR in the hospitality sector and their close interconnection with the GCET and the SDGs. Literature put in evidence that the adoption of sustainable practices, and specifically of CSR, increases hotels competitiveness and differentiation. On the other hand, bureaucratic, organizational, and legal aspects were identified as the main obstacles in the implementation of CSR measures in hotels. Finally, some theoretical and practical implications are presented in the main dimensions of CSR in hotels, as identified in the scope of GCET and SDG: customer loyalty, promotion of organizational citizenship behaviors, and corporate financial performance.
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Introduction

Tourism is one of the fastest growing economic activities worldwide in recent decades (WTTC, 2020). Despite the severe blow caused by the pandemic COVID-19, the prospect of rapid recovery and recovery requires holistic and responsible tourism development approaches for the future. It is undeniable that consequences have been drawn from the pandemic crisis experienced, putting into perspective ulterior practices founded on purely mercantilist visions. This limiting situation, reinforced by the growing awareness of the climate emergency and international commitments made in this regard, has led to a greater awareness of the magnitude of the impacts of tourism and its dependence on limited resources. This implies that everyone has the responsibility to contribute to its preservation and enhancement.

At a time when the Paris Agreement, existing since 2016 and ratified by 189 Parties, and the pressure of thousands of young people in the streets of several cities driven by Greta Thunberg's movement, has attracted unprecedented world attention to the problem, it is not possible for any sector to remain indifferent. These factors may limit, in a more or less effective way, the tourism activity in the various regions of the planet, which requires a transformative and innovative approach, calling all agents of the sector to understand what is at stake and make the necessary efforts to adapt tourism activities to the new climate and reduce/eliminate their contribution to the problem (Turismo de Portugal, 2021).

In the case of Portugal, with the challenge of contributing to a responsible and resilient recovery to ensure the recovery of tourism activity in a sustainable and competitive way, Turismo de Portugal, I.P., has proposed a plan called “Turismo + Sustentável 20-23”, (“More Sustainable Tourism 20-23”) a set of over seventy initiatives and projects aimed at strengthening the sustainable performance of the sector, particularly in the context of the circular economy and climate change. It assumes a set of principles, concepts and practices that tourist resorts can and should adopt in order to renew themselves as responsible economic actors, while establishing new quality standards for services and products, in response to the growing demand of guests already committed, or aware, of climate change and sustainability (Turismo de Portugal, 2021).

It should also be noted that, in 2019, the United Nations (UN) and the World Travel and Tourism Council (WTTC) proposed a joint programme to implement sustainability actions in the tourism sector, with emphasis on combating climate change. From the UN and WTTC plan, the following initiatives stand out, among others: identifying and implementing new sustainability strategies and innovative business models; aligning sustainable development efforts with UN goals; prioritising sustainability by setting specific deadlines; collaborating and sharing data and best practices to promote sustainability practices, as well as producing an annual action report on them (IPDT, 2020).

In this sense, the sustainable development model will be the only truly viable one, maintaining environmental quality, essential for the host community and for the visitor; ensuring the distribution of benefits in an equitable way, stimulating the knowledge and training of professionals in the sector and promoting the evolution and business dynamics in a harmonious and compatible with the resources of the destinations.

Corporate social responsibility (CSR) emerges as one of the solutions to be adopted in this context, since it is a process of awareness-raising of companies in the enhancement of the relationship between them and society, contributing to a fairer society, seeking the common good and benefiting both in the best possible way and also contributing to a cleaner environment (Lopes & Devile, 2012). CSR should be based on plurality and ethics, addressing its customers in a transparent way and its employees through fair working conditions and maintenance of their fundamental rights.

Key Terms in this Chapter

Greenhushing: This phenomenon occurs when entrepreneurs intentionally choose not to communicate the CSR measures. They implement and apply in their companies, for fear of being criticised, misperceived and/or obtaining negative feedback from their customers and the press.

Sustainable Development Goals (SDGs): Goals with targets, established by the UN in Agenda 2030, with the purpose of promoting international cooperation, mainly from developed countries (DPs) with developing countries (DCs), in order to combat social, economic, political and environmental problems: hunger, gender inequality, climate change, illiteracy, war, discrimination, among others. The publication of this guideline intends to promote sustainable growth and ensure that the resources for the development of present and future generations.

Organizational Citizenship Behavior (OCB): Carrying out tasks that go beyond the employees' contractual obligations, as a result of identifying with the organisation's values and wanting it to be positively recognised by customers, since they feel supported and valued by their managers. Furthermore, they are employees who usually presume the creation of a close relationship with the customer, in order to contribute to customer satisfaction.

Corporate Financial Performance (CFP): Assesses the financial performance of organisations by analysing the consequences of their management, i.e., the relationship between the financial health and income achieved through the strategies determined by the management team.

Sustainability: Concept according to which, for the human being to lead a sustainable life, the current society should be able to satisfy its needs, without compromising the needs of future generations, through the interconnection and balance between the factors: economic, social and environmental.

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