Which corporate social responsibility issues do consumers perceive as relevant to be evaluated in the hotel sector

The concept of corporate social responsibility (CSR) has gained much attention in recent years. It provides companies with a signiﬁ cant approach for achieving performance excellence and considered a source for enhancing competitive advantage. This paper comes to investigate CSR within the context of ﬁ ve-star hotels in Hurgada, Egypt and assess its impact on employees’ job engagement, retention, attraction, and organizational commitment. Data was collected using multiple research methods, including: questionnaire survey, semi-structured interviews, and content analysis.This research found that the majority of hotels did not consider their CSR to society but tackled their CSR to environment undertaking various measures to conserve resources. Hotels provided little support to most internal CSR practices identiﬁ ed in this study. The study showed that internal CSR could be used as an important driver for enhancing employee job engagement and organizational commitment. However, CSR still not considered a signiﬁ cant tool to attract and retain high potential candidates.This research concluded that hotels should show more commitment to serve the community and formulate their core business strategies accordingly. The governmental and environmental organizations’ intervention is essential to provide more awareness to hotel businesses regarding tackling their CSR.

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Communication about Corporate Social Responsibility practices and Return on Equity

European Journal of Family Business ◽

10.24310/ejfbejfb.v5i1.5060 ◽

2015 ◽

Vol 5 (1) ◽

Cited By ~ 2

Author(s):

Germán Gémar ◽

David Espinar

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Financial Performance ◽

Family Firms ◽

Competitive Advantages ◽

Return On Equity ◽

Environmental Setting ◽

Negative Effect ◽

Hotel Sector ◽

Corporate Social

We have analysed the importance of companies’ corporate social responsibility (CSR) and how the relationship between CSR and financial performance has been scientifically studied. It is clear that the literature offers contradictory results. This debate is particularly relevant in the hotel sector due to the intense relationship and dependency this industry has on its environmental setting. This paper has shown a neutral relationship between the CSR and return on equity (ROE), which means introducing CSR measures stop short of having a negative effect on shareholders’ profits. Therefore, based on the results of this study, we encourage the hotel sector to introduce CSR practices into its strategy, as CSR produces new competitive advantages that have neutral effects on financial performance. The conclusions were not different once we distinguished between family or non family firms. One of the most common excuses business owners and executives use to justify having no CSR policies is that they cannot afford to spend money on these activities, as they will affect their companies’ profitability. This study has demonstrated that CSR has a neutral relationship with ROE, and, consequently, other benefits (e.g. reputation and competitiveness) will arise from applying those practices, without weakening ROE.

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