Assessing Hotels Social Responsibilities To Its Host Communities
This study was carried out to assess hotels social responsibilities to its host communities. The study was limited to Hotels in Enugu Metropolis, Enugu state, Nigeria. The study adopted a descriptive survey design. The researcher used the Taro Yamane formula to calculate the sample size which was 223 from a population of 500. The instrument that was used for data collection was an online survey questionnaire. After collection of the questionnaires, the study was then analyzed using descriptive (frequency and percentages) and inferential statistics. The results were presented on tables. The concepts of ethical behavior and social responsibility have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing. These two concepts can bring significant benefits to a business. The idea that business enterprises have some responsibilities to society beyond that of making profits for shareholders has been around for centuries. The study addressed the concepts of organizational ethics and corporate social responsibility. From the perspectives of Managers, it came out that organizational ethics and social responsibility are very important for organizational growth and success. Specifically, they consider organizational ethics to lead to positive employee, customer and community relations. Not only that but also, they perceive that better public image/reputation; greater customer loyalty; strong and healthier community relations can inure to the benefit of corporations that are socially responsible. Implications of the findings are finally drawn.
Table of Content
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objectives of the Study
- 1.4 Research Questions
- 1.5 Significance of the Study
- 1.6 Significance of the Study
- 1.7 Definition of Terms
- 1.8 Organization of Study
2.0 Literature Review
- 2.1 Conceptual Framework
- 2.2 Concept of Social Responsibility
- 2.3 Factors That Influence CSR Programs
- 2.4 Corporate Social Responsibility in Communities
- 2.5 Impact of Corporate Social Responsibility On Communities
- 2.6 Emergence of Ethical and Social Responsibility
- 2.7 Pitfalls of Effective Corporate Social Responsibility in Nigeria
- 2.8 Theoretical Framework
- 2.8.1 Stakeholders Theory
3.0 Research Methodology
- 3.1 Research Design
- 3.2 Sources of Data
- 3.3 Population and Sampling Procedure
- 3.4 Sampling Procedure
- 3.5 Instrument for Data Collection
- 3.6 Reliability
- 3.7 Validity
- 3.8 Data Collection and Analysis
4.0 Results and Discussion
- 4.1 Results
- 4.2 Discussion
5.0 Summary, Conclusion and Recommendations
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendations
1.1 Background of the Study
Ethical behavior and corporate social responsibility can bring significant benefits to a business. The idea that business enterprises have some responsibilities to society beyond that of making profits for shareholders has been around for centuries (Barry, 2000). This partly accounts for the reason why the concept of Corporate Social Responsibility (CSR) has continued to grow in importance and significance (Carroll &Shabana, 2010). One of the core beliefs is that business organizations have a social and ethical responsibility, as well as, the economic mission of creating value for shareholders or owners of businesses (Carroll, 1989). Whereas, the economic responsibilities of a business are to produce goods and services that society needs and wants at a price that can perpetuate the continuing existence of the business, and also satisfy its obligations to investors; ethical responsibilities are those behaviors or activities expected of businesses by society and other stakeholders such as employees (Ferrell & Fraedrich, 1997).
Corporate social responsibility has become a common practice among most hotels in Nigeria. It is one of the newest management strategies where companies try to create a positive impact on society while doing business. Holme and Watts (2000) defined CSR as the continuous commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement in the corporation. Several reasons have been advanced to explain why commercial institutions voluntarily engage in social activities. Most companies practice social activities to satisfy their primary needs of presenting themselves as legitimate members of society (Bowen, 1953). This legitimacy has led companies to pursue their primary purpose of seeking sustainable profitability.
Leaving aside the fact that the corporate sector provides significant economic benefits to society, there are growing concerns that larger society provides great opportunities for companies to use public resources to operate their businesses (Carroll, 1979). Some experts are of the idea that most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder and that if there were no outcry, there would be little regulation (Carroll, 1999). A firm is not socially responsible if it merely complies with the minimum required of the law, because this is what a good citizen would do.
It’s now recognized that sustainable development and reduction of poverty are the key issues that need to be addressed by the governments, mostly in the developing world. However, the government cannot meet this alone without the help of the private sector. Policy makers are paying much attention to the potential contribution of the private sector to such policy objectives. As the issue of sustainable development becomes more important, CSR becomes an element that addresses these issues and therefore it becomes more vital in the daily operations of hotels company in the hotels industry. According to Pranjali (2011). The World Business Council for Sustainable Development (WBCSD) describes CSR as a contribution to sustainable economic development; It is said that there is no way to avoid paying serious attention to corporate social responsibility: the costs of failing are simply too high.
There are countless win opportunities waiting to be discovered: every activity in a firm’s value chain overlaps in some way with social factors, everything from how you buy or procure to how you do your research, yet very few companies have thought about this. The goal is to leverage your company’s unique capabilities in supporting social causes, and improve your competitive context at the same time. The job of today’s leaders is to stop being defensive and start thinking systematically about corporate responsibility according to Michael Porter (2005) who says successful executive or leaders know that CSR is inevitable and their long-term success is based on continued good relationship with the society.
CSR is also practiced because customers as well as governments today are demanding more ethical behaviors from organizations. In response, corporations are volunteering themselves to incorporate CSR as part of their business strategies, mission statement and values in multiple domains, respecting labor and environmental laws, while taking care of the contradictory interest of various stake holders according to Kashyap et al., (2006).
Corporate Social Responsibility (CSR) activities are no longer only charitable events but tools for boosting positive image of the company, employee and customer satisfaction and organizational profitability. Islam (2012) confirmed that the concept of business has changed from profit making activities to social welfare activities where businesses are not only responsible to its shareholders but also to all of its stakeholders of which employees satisfaction forms a nucleus. The main force that drives companies to adopt corporate social responsibility is CSR’s financial benefits (Rapti and Medda, 2012).
The World Business Council on Sustainability Development (cited in Folajin, Ibitoye and Dunsin, 2014) described corporate social responsibility (CSR) as “the continuing commitment by Business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. While Nicolau (2008) defined socially responsible companies as those which in profit-making operational decisions, considers the full scope of environmental impact and balances the needs of stakeholders.
The happier people are with their jobs, the more satisfied they are said to be (Odunlade, 2012). The perception of being paid what one is worth predicts job satisfaction. Job satisfaction is perceived as an individual’s attitude and behavior towards aspects of his own job. Employee job satisfaction is an affective or emotional response toward various facets and outcomes of one’s job; meaning that employee satisfaction in relation to a job is not unitary, as a person may be satisfied with one aspect of his or her job and may be dissatisfied with the rest (Bozeman and Gaughan, 2011).
In the domain of human resource management, hardly is any issue more important, relevant, and crucial to an employee than what he receives in exchange for his labour services to the organisation. Presently one of the manager’s tasks, is the need to create a socially responsible environment which motivates employees to perform satisfactorily and to be a profitable asset, so that they can foster the organisation’s growth and performance.
Employees will demonstrate pleasurable positive attitudes when they are satisfied with their job. Thus, high employees’ job satisfaction will increase the productivity of an organization and in turn increases the organizational overall performance (Millan et al, 2011). Whether corporate social responsibility is negatively or positively related to workers job satisfaction in Nigeria is an issue that remains open to empirical studies. Hence, this study will investigate hotels social responsibilities to its host communities.
1.2 Statement of the Problem
As for the hotels industry, the relation between organizational ethics and corporate social responsibility and organizational productivity has not been examined extensively, and the few existing studies offer conflicting evidence. In spite of the existing of some literature about the role of corporate social responsibility in the aspects of environment and society, there is a significance gap about how corporate social responsibility improves organization performance due to lack of documented evidence of the benefits hence the researchers focus was to find out the effect of CSR on organization performance based on Hotels as we find out whether this organization realize any benefits from the much they spend.
Hotels with good operating results and strategies can reduce screening and monitoring costs and diversify risk across different projects and overcome liquidity risks which ultimately provide savers with high return. Having long term financial success can attract investment in long-term projects while allowing investors access to their savings at short-term notice (Levine, 1991).
These institutions allow cross-sectional diversification across projects, allowing risky innovative activity while guaranteeing contracted interest rate to savers (King and Levine, 1993). Hotels can boost the rate of technological innovation by identifying the entrepreneurs with most promising technologies. Successful institutions can help reduce liquidity risk and enable long-term investment (Diamond and Dybvig, 1983). Organizations with sound long term performance can offer job security to its employees, create new employment opportunities, assure government of continuous revenue apart from satisfying their shareholders’ expectations. These problems necessitate the need to carry out a study on ethics and social responsibilities and organization performance.
1.3 Objectives of the Study
The main objective of the study is to assess hotels social responsibilities to its host communities. Specifically, the study sought to:
- Examine the perceptions of hotel managers on the benefits of social responsibilities and ethics to host communities.
- Examine what the community and organizations get out of social responsibilities and ethical behavior.
- Examine how hotels benefit tangibly from engaging in social responsibilities policies, activities and ethical practices.
1.4 Research Questions
- What are the perceptions of hotel managers on the benefits of social responsibilities and ethics to organization performance?
- What do the community and organizations get out of social responsibilities and ethical behavior?
- How do hotels benefit tangibly from engaging in social responsibilities policies, activities and ethical practices?
1.5 Significance of the Study
The following null hypotheses were formulated to be tested at .05 level of significance;
- HO1: There is no significant relationship between ethics and hotels performance
- HO2: There is no significant relationship between social responsibilities and hotels performance
1.6 Significance of the Study
The study also seeks to articulate what social responsibility and ethics means, and why it makes good business sense to integrate the two concepts into strategic decisions, policies and practices of hotels.
The study is expected to make contributions to knowledge in a number of ways. The outcome of this research will provide information about CSR in relation to corporate institutions especially the hotels in Nigeria. It is also expected that the results of this study would produce relevant material for scholarly discourse in management science relating to corporate social responsibility and profitability. Another benefit is that in a truly global economy, hotels in Nigeria would be more responsible and become citizens. Organizations would more easily and willingly respond to the social needs of the societies where they operate.
The findings generated in this study are useful in testing the existing theories under extreme conditions not present in developed economies where most of the prior studies were carried out. Current and potential investors are supplied with information to help them make good investment decisions. The findings and conclusion may enable the regulators to know the nature of demand placed on hotels industries in Nigeria and ways the organizations have responded to them.
The work is important to the government, host communities and non-governmental organizations involved in development programmes. This study fills literature gap by investigating the effects of CSR on profitability of Hotels. The results provide useful evidence to other emerging sectors in Nigeria.
1.7 Scope of Study
This study was focused on hotels social responsibilities to its host communities. The study will be limited to selected hotels in Enugu Metropolis, Enugu state.
1.8 Limitation of the Study
These are the challenges that the researcher encountered during data collection. The anticipated challenges of data collection were: Due to the nature of the quantitative and qualitative research emphasized here the study was not exempted to limitations in the homogeneity of the sample population and representation. The study was only limited to hotels in Enugu Metropolis, Enugu state and staff and employees of the organization. Therefore, this cannot be extrapolate representational to additional academic institutions. Again there was unwillingness of respondents to fill the questionnaires. Some of the copies questionnaires were also reported missing and it was severally replaced and this affected the researcher negatively finance wise.
1.9 Definition of Terms
Refers to the moral principles that govern a person’s behaviour or the conducting of an activity.
Is an ethical theory in which individuals are accountable for fulfilling their civic duty, and the actions of an individual must benefit the whole of society. In this way, there must be a balance between economic growth and the welfare of society and the environment.
Comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Specialists in many fields are concerned with organizational performance including strategic planners, operations, finance, legal, and organizational development.
1.10 Organisation of the Study
This study is organized into five chapters. Chapter one included the background of the study, research problem, research objectives and questions as well as limitation of the study. Chapter two contains the literature review. Chapter three includes the methodology and study area. Chapter Four contains the results anddiscussion of key findings of the study. Chapter Five finally looks at the summary, conclusions, and recommendations based on the findings.
5.0 Summary, Conclusion and Recommendations
This study sought to assess ethics and social responsibilities and organization performance. The population of the study constituted managers and staff of various Hotels offices in Nigeria. As at the time of the study, the population of the study was 500. The instrument that was used for data collection is a online survey questionnaire. Online surveys using questionnaires were administered to the managers eliciting their views on organizational ethics, social responsibilities and organizational performance. Findings showed that when managers were asked on the importance of organizational ethics for business success, most of the respondents affirmed in the positive. Also, most of the managers 32 (78%) identified “a better public image/reputation;” “greater customer loyalty;” and “a strong and healthier community” as very important benefits that will inure to the benefit of a company that is socially responsible; while 21 (51%) cited “increased revenue.”
The objective of the study was to assess ethics and social responsibilities and organization performance. Corporations are facing increasing demands, and that, they should look beyond their own interests and prioritize those of the societies in which they operate. This is because businesses host their operations within society, and in return, society expects these businesses to show responsibility for aspects of their operations. It is no longer acceptable for a firm or corporation to experience economic prosperity in isolation from the stakeholders.
This study showed that many of the Managers perceive organizational ethics and social responsibility as important for organizational growth and success. Specifically, they consider organizational ethics to lead to positive employee, customers and as well community relations. Furthermore, they perceive better corporate image/reputation, greater customer loyalty; and a strong and healthier community as benefits that can inure to the benefit of corporations that are socially responsible. It is therefore, important that business schools and professionals in the corporate world turn their attention to these factors, since they are critical components in their training and practices. Our study is however without limitations. Further research with a larger sample of business schools should help us to contribute to this line of inquiry. These studies may also deploy both the quantitative and qualitative approaches to research. This has the potential to complement any inherent weaknesses that may exist in either approach.
Organizations can manage ethics in their workplaces by establishing ethics management programs that convey their corporate values, codes and policies to guide decisions and behavior. However, the mere presence of a code of ethics does not necessarily guarantee causation of ethical behavior within a company, unless it is integrated into all aspects of an organization.
Employees must buy into the programs and code of ethics for easy and proper implementation. Therefore, there is need for training on the ethical code which may include the values, codes, and standards of the organization. In addition, every employee wants to be part of an organization where they are recognized and made aware of the truth and what is going on, particularly in crisis situations. Companies which are responsible and transparent with their employees have a better chance of attracting and retaining more talented staff.
Also, CSR is not only relevant because of the changing policy environment, but also, because of its ability to meet business objectives. As the business environment gets increasingly complex and stakeholders become vocal about their expectations, good CSR practices can only bring in greater benefits. Undertaking CSR initiatives and being socially responsible can have the following benefits: strengthening relationships with stakeholders; attracting the best industry talents; and risk mitigation because of an effective corporate governance framework. Additionally, a well-managed CSR creates social and environmental value, while supporting a company’s business objectives and reducing operating costs, and enhancing relationships with key stakeholders and customers. It is therefore imperative that corporations establish a CSR unit whose primary responsibility is coordinating and integrating all CSR initiatives.
Assessing Hotels Social Responsibilities To Its Host Communities
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