The Relationship between Sustainable Business Management and CSR Practices
Discuss about the Sustainable Operations and Destinations Method.
The aim of the study is to identify and present the key responsibilities of Alto Hotel, Melbourne that is taken while implementing its Corporate Social Responsibility (CSR) practices to develop a structured approach regarding the management of sustainable business and application of CSR practices in the organization. For accomplishing the aim, individual objectives are presented:
- To examine the implication of sustainable business management practices on CSR practices
- To identify the key responsibilities an organization takes while implementing CSR practices
- To identify whether CSR policies and promotions of Alto Hotel, Melbourne are tokenism or verifiable
- To analyse the practices undertaken by Alto Hotel, Melbourne to enhance its CSR practices for supporting destination and stakeholders
It has been explored that tourism industry is not limited to the accommodation, transportation and hospitality, but tourism is considered as a complete system, which involves the sustainable management practices of the organisation. The major impact of tourism can be seen on the host communities and the destination (Zaei & Zaei, 2013). In this regard, the main problem that has arisen in the study is to identify the key responsibilities that an organisation must adopt regarding CSR practices and sustainable business management. The main focus of this study is on the case study of Alto Hotel, Melbourne. There are two major aspects that are used in this study, first, sustainable operations management that can be defined as the operational policies, techniques, operational strategies, and tactics of an organisation, which supports the environmental as well as economic goals of the organisation (Chiarini, 2015). Another important aspect is corporate social responsibility, which can be defined as a business approach followed by the organisations, which focuses on providing benefits to all the stakeholders by focusing on the aspects of economic, social and environment, regarding sustainable development (Werther & Chandler, 2010). In order to conduct the study, secondary method is used, so that qualitative information can be gathered with the help of literature review method. For conducting literature review, books, journals and online sources are used, as they are helpful in providing insight regarding the focus of the study (Fink, 2013). The major limitation of this study is that the study does not involve first-hand data that is beneficial in providing real-life experiences (Robson & McCartan, 2016).
In the current scenario, the need of the society is towards sustainable approach, which requires an organisation to adapt to CSR responsibilities. There is a positive relationship between CSR practices and sustainable business management (Saha & Dahiya, 2015). With the help of adoption of CSR practices and responsibilities under it, economic, environmental and social benefits can be provided to the stakeholders, which leads towards sustainable development and hence, sustainable business management (Saha & Dahiya, 2015). The literature has explored that in the current competitive environment, the main focus of the organisations is on competing in the market by developing certain strategies. Therefore, organisations have focused on sustainable business management, which is required by the stakeholders in the present time. This sustainable business management involves benefiting the stakeholders of the organisation in terms of economic, environmental and legal aspects (Saha & Dahiya, 2015). All the three aspects are the major focus of CSR practices, which is enhanced with the help of the three aspects. In this manner, it can be stated that there is a positive relationship between sustainable business management and CSR practices of an organisation. In addition to this, sustainable business management improves the CSR practices of an organisation so that the organisation can compete in the market (Saha & Dahiya, 2015).
Key Responsibilities an Organization takes while Implementing CSR Practices
There are major three responsibilities that an organisation takes while implementing CSR practices, namely ethical responsibilities, legal responsibilities and economic responsibilities. Economic responsibilities are the responsibilities, which can be fulfilled by providing the society with the products and services that are desired and expected (Werther & Chandler, 2010). The process also involves making profits with the help of products and services. In the case of tourism industry, it is important that services are provided to the customers that does not impact the environment (Werther & Chandler, 2010). Legal responsibilities depicts that with the economic aspects, it is also important that legislation and current laws are considered by the organisation regarding the sale of its products and services (Laasch & Conaway, 2014). Lastly, ethical responsibilities are the standards and norms that are followed by an organisation, in order to meet the expectation of society, customers and shareholders. These responsibilities must be in fair manner, and must be able to reflect equality (Laasch & Conaway, 2014).
It has been explored that CSR practices are important for an organisation, as it helps the organisation in providing benefits to all of its stakeholders (Pechlaner & Smeral, 2014). There are certain practices that adopted by Alto Hotel, Melbourne that helps the hotel in enhancing its CSR practices and also support the destination that is Melbourne. Alto Hotel is the first hotel in Bourke, Melbourne that has calculated its carbon output, which has enabled the hotel to be carbon neutral and benefit the environment (Alto, 2008). It has been stated by Alto Hotel, Melbourne that by staying for one night at the hotel on an average 11.8 kilogram of carbon is produced, which is less than the estimate set by the Sustainable Tourism. The electricity generated by the hotel is generated through renewable sources and the building has implemented Environment Rating System (Alto, 2008). In addition to this, ran water is preserved by Alto Hotel, Melbourne so that the preserved by the hotel can be used for gardening and cleaning purposes. The windows installed in the building of the hotel are double gazed, which reduces the reflection of heat and hence leads to less use of air conditioner. Another practice adopted by Alto Hotel, Melbourne is regarding recycling of materials into biodiesel (Alto, 2008). All these practices are helpful for Alto Hotel, Melbourne in contributing towards sustainable business management and benefiting the destination as well as its stakeholders.
CSR Policies and Promotions of Alto Hotel, Melbourne are Tokenism or Verifiable
Tokenism is defined as a practice of making any symbolic effort so that minority groups can be depicted as inclusive. This is also done by recruiting staff members from minority groups or underrepresented groups. It is beneficial for an organisation in representing racial and sexual equality within the workplace (Sherrer, 2018). On the other hand, verifiable practices are those practices, which are able to set a benchmark by the process of evaluation (Sherrer, 2018). It has been explored that the policies adopted by Alto Hotel, Melbourne regarding CSR are verifiable, as the practices are adopted by the hotel and they have set benchmark for other organisations in the tourism sector. The carbon emission rate set by Sustainable Tourism is of 24-26 kilograms per day (Alto, 2008). However, Alto Hotel, Melbourne has set a benchmark by emitting carbon 11.8 kilograms every night. This is possible due to the practices adopted by Alto Hotel, in the form of renewable sources of energy, recyclable materials, and rain water harvesting (Alto, 2008). In this manner, it can be stated that the CSR policies and promotions of Alto Hotel, Melbourne are verifiable.
It has been analysed from the findings of the study that with the help of CSR practices and responsibilities adopted by an organisation, sustainable business management can be gained. In the tourism and hospitality industry, organisations adopt CSR practices, so that they can contribute towards sustainable development, as the system impacts the destination and the host communities. There are major three types of responsibilities that have been identified in the study under CSR practices. These three responsibilities are ethical responsibilities, economic responsibilities and legal responsibilities. In the case of Alto Hotel, Melbourne, it has been analysed that the organisation has adopted CSR practices and also enhanced these practice by reducing overall carbon emission and using renewable sources for the generation of electricity. The approach adopted by Alto Hotel, Melbourne is verifiable as the organisation has set a benchmark for other organisations in the tourism and hospitality industry.
In order to maximise the impact of CSR practices adopted by Alto Hotel, Melbourne, certain steps can be adopted by the organisation. These steps are given below:
- In order to improve CSR program and activities adopted by an organisation, it is important that the organisation has a long-term vision that can help in providing environmental, economic and legal benefits to the stakeholders. It is also important that the long-term vision also focuses on brand positioning in the market (Okpara & Idowu, 2013).
- For improving CSR practices, it can be stated that it is important for an organisation to focus on the needs and expectation of the communities and society. Therefore, an organisation must monitor the needs of the society and communities to address the social issue and improve the CSR program (Grayson & Hodges, 2017).
- Under CSR practices, social media campaigning can also be conducted by an organisation so as to interact with the individuals and analyse the social issues faced by the society. This can help the organisation in understanding the society and communities in a better way (Grayson & Hodges, 2017).
Conclusion
It can be concluded that with the help of effective CSR practices sustainable business can be developed. CSR practices involve business approach of an organisation that helps in benefiting all the stakeholders of the organisation regarding economic, social and environmental aspects. Sustainable operations management is the practice of an organisation, which involves focusing on tactics, techniques, operational strategies and operational policies of the organisation. While implementing CSR practices, there are certain responsibilities that are adopted by an organisation, in order to enhance the CSR practices and policies. There are three major responsibilities, namely ethical responsibilities, legal responsibilities and economic responsibilities. In the case of Alto Hotel, Melbourne, it has been identified that the organisation has developed its CSR policies, which is enhanced by the use of renewable sources and setting a benchmark regarding carbon emission. Regarding the terms tokenism and verifiable, it has been identified that the organisation has been successful in setting benchmark for the other organisations in the tourism and hospitality industry, which shows that the CSR policies of Alto Hotel are verifiable.
References
Alto. (2008). Environmental Sustainability Fact Sheet. Retrieved May 29, 2018, from https://www.altohotel.com.au/green-hotel-accommodation-melbourne.php
Chiarini, A. (2015). Sustainable Operations Management: Advances in Strategy and Methodology. London: Springer.
Fink, A. (2013). Conducting Research Literature Reviews: From the Internet to Paper. London: SAGE Publications.
Grayson, D., & Hodges, A. (2017). Corporate Social Opportunity!: Seven Steps to Make Corporate Social Responsibility Work for your Business. London: Routledge.
Laasch, O., & Conaway, R.N. (2014). Principles of Responsible Management: Global Sustainability, Responsibility, and Ethics. Boston: Cengage Learning.
Okpara, J.O., & Idowu, S.O. (2013). Corporate Social Responsibility: Challenges, Opportunities and Strategies for 21st Century Leaders. London: Springer Science & Business Media.
Pechlaner, H., & Smeral, E. 2014. Tourism and Leisure: Current Issues and Perspectives of Development. London: Springer.
Robson, C., & McCartan, K. (2016). Real World Research. New Jersey: John Wiley & Sons.
Saha, R., & Dahiya, R. (2015). Corporate Social Responsibility & Sustainable Business Practices: A Study of the Impact of Relationship between CSR & Sustainability. Proceedings of International Conference on ‘Research and Business Sustainability’, 473-477.
Sherrer, K. (2018). What Is Tokenism, and Why Does It Matter in the Workplace? Retrieved May 29, 2018, from https://business.vanderbilt.edu/news/2018/02/26/tokenism-in-the-workplace/
Werther, W.B., & Chandler, D. (2010). Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. London: SAGE.
Zaei, M.E., & Zaei, M.E. 2013. THE IMPACTS OF TOURISM INDUSTRY ON HOST COMMUNITY. European Journal of Tourism Hospitality and Research, 1(2),
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