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CORPORATE SUSTAINABILITY ASSESSMENT IN SELECTED HOSPITALITY

AND TOURISM BUSINESSES IN TACLOBAN, LEYTE: INPUTS FOR EFFICIENT

AND ENVIRONMENT FRIENDLY SERVICES

________________________

A Proposal

Presented to

the Faculty of the COLLEGE/DEPARMENT

SCHOOL/UNIVERSITY

Tacloban City

_______________________

In Partial Fulfilment

of the Requirements for the Degree

INSERT DEGREE

_____________________

June 2022
CHAPTER I

INTRODUCTION

Background of the Study

As sustainability assessment at the national level is becoming more and more

common, because of the government policies, appointing certain institutions to

evaluate countries’ sustainable development and spreading of countries’ sustainable

development strategies, similarly, the sustainability assessment of the business

sector has also several attempts already. Corporations are seen as an important

participant in the pursuit of sustainable development, thus researchers build

corporate sustainability assessment frameworks and models that would be used to

evaluate business contributions to sustainability. The research problem of this paper

can be defined as creation of various new business sustainability evaluation models,

reflecting different approached to define sustainable development and sustainability,

and employing different mathematical procedures to draw conclusions.

Most of the business sustainability researchers try to build a unique and the

best sustainability evaluation model without much deep research of what colleague

researchers have created already and how his or her own model differs or is similar

to the ones already used. This brings a problem of doing the same thing many times

by different people, while it could be beneficial to build on the models already

created and try to improve on them. Thus, the aim of this review is to build a general

understanding about how corporate sustainability researchers suggest to evaluate

corporate sustainability: what tools are used, what models are suggested, what

mathematical or logical procedures are suggested to execute this process, with the
focus on the selected hospitality and tourism establishments in Tacloban, Leyte. The

review with a historical perspective should also bring some insights on how did the

proposed sustainability evaluation models change over time. Another benefit of such

research would be for the reviewer and the other readers to build a general

understanding of what models have already been created and used in empirical

studies, so the author in his or her own research could use one or several of the

models proposed, or create his or her own corporate sustainability assessment

model knowing various perspectives of other researchers.

At the corporate level several of the major international hotel chains

increasingly stress their commitment to sustainability and to integrating it into their

core business strategy while pursuing continuing growth which makes a range of

demands on environmental resources (Jones, Hillier and Comfort, 2014). In a similar

vein the Intercontinental Hotel Group (2013, webpage) reports ‘we are committed to

designing, building and operating more environmentally sustainable hotels.’ At the

same time commitments to sustainability are often couched within the idiom of

continuing economic growth.

In Tacloban, one of the focal areas of the local government is tourism and

hospitality, and the government has taken very keen interest in developing it on a

bigger scale. The strategy has been developed with sustainability on the focus.

Sustainable tourism according to United Nation World Tourism Organization

(UNWTO) is "Tourism that takes full account of its current and future economic,
social and environmental impacts, addressing the needs of visitors, the industry, the

environment and host communities" (UNWTO, 2005).

In the light of these apparent contradictions this research offers some

personal reflections on sustainability within the hospitality and tourism industry and

as such its aim is to stimulate, challenge and provoke debate and discussion rather

than to offer a definitive and comprehensive review of either current corporate

sustainability strategies and practices or the academic literature on sustainability

within the hospitality industry. The paper includes an outline discussion of the origins

and characteristics of the concept of corporate sustainability, a review of the growing

interest in corporate sustainability within the business world and an outline of the

scope and flavour of research on sustainability in both the general business and

management and the hospitality literatures, and a discussion of three fundamental

sets of issues the authors believe the hospitality industry needs to address in

pursuing sustainability , namely: variations in the way sustainability is defined within

the hospitality industry; materiality and independent external assurance; and

sustainable consumption and continuing economic growth.

Tourism is considered to be the fastest growing service sector in the world

and has a bearing on the economic growth of the country (Osman & Sentosa, 2013).

The tourism and hospitality industry has outperformed the manufacturing, retail,

financial services and communications globally. The contribution of tourism and

hospitality industry to the Gross Domestic Product (GDP) in most of the countries is

quite significant.
Nevertheless, there has been growing pressure from stakeholders, such as

governments and destination management organizations (DMOs), on small and

medium-sized enterprises (SMEs) and family businesses (FBs) of the hospitality and

tourism sector to be more sustainable and socially responsible in their activities. The

increasing concerns about the environment and social problems have led to many

enterprises adopting new operational and legal strategies. Emerging values and

aspirations for sustainable business activity create articulation of interests between

business and society.

Ensuring the sustainability during the promotion of hospitality as well as

tourism is important for the overall development of Tacloban, Leyte. This is because

the growth of the hospitality industry may be detrimental to the maintenance of the

ecosystem and biodiversity in the form of loss of wildlife and rare species, habitat

loss, environmental degradation which can disturb the social wellbeing of the

community (Rabbany et al., 2013).

While there are many different dimensions to sustainability of hospitality

industry especially in the context of the Philippines, it is surprising to note that not

many of the studies are focused on specific dimensions of sustainability, particularly

in the form of empirical studies. There is a need to have a detailed study about how

the employees in hospitality and tourism in Tacloban, Leyte respond to the context of

sustainability. If sustainability of hospitality has to be ensured as per the initiatives

taken by the Tacloban local government, the focus should be directed towards the

social dimension of sustainability in the hospitality and tourism industry.


Statement of the Problem

The research focuses on gaining insight into current practices of selected

hospitality and tourism establishments in Tacloban, Leyte in relation to corporate

sustainability. It answers two questions:

1. What is the awareness of sustainable practices among hospitality and tourism

establishments operating in Tacloban, Leyte?

2. What are the prevailing practices adopted by hospitality and tourism

establishments operating in Tacloban, Leyte with respect to corporate

sustainability?

Theoretical Framework

Corporate sustainability has evolved dramatically over the last years.

Decades ago, public administrations and governments started to develop

environmental legislation that needed to be accomplished by corporations, especially

large corporations like companies from oil industry or big pollutants. Then,

international organizations created voluntary certificates like ISO 14001

(International Standard Organization) or EMAS (Eco-Management and Audit

Scheme). In addition, those corporations that wanted to go one step beyond had the

chance to design eco-innovative practices among their business processes. These

kinds of practices allowed companies to make products decreasing the


environmental impact or launching new products whose consumption does not harm

our planet.

Utilizing stakeholder analysis, is in responsibility to determine Corporate

Sustainability. Thereby, relevant stakeholders and, derived from this, possible target

groups, and their demands and needs should be identified and prioritized. Only by

an adequate analysis, the measure may be conceptualized suitably and most

effective for the targeted group of participants, with respect to stakeholders.

Following in the conceptualization, the relevant aspects of corporate strategy,

politics, culture and objectives must be formed as a background and foundation of

the measure. Additionally, the objectives and overall contents of the measure in

orientation on the identified stakeholder demands, and the intended effort and extent

must be defined.

The second aspect is the evaluation of the impact on the stakeholders out of

the perspective of corporate sustainability, and thereby the impact on the company’s

reputation and sustainability development efforts. By this evaluation, the outcome of

the measure may be identified, implicating insights on the purposefulness of the

measure regarding the corporate sustainability and human resource development

value creation. In addition, as far as the measure is repeated and implemented long-

term, potential for improvement must be identified.

Conceptual Framework

In this section, Figure 1.1 will illustrate the process of implementation of a

measure from the preliminary analysis to the outcome. The focus of this framework
is not the exhaustive and detailed explanation of all relevant steps, but the

clarification of the different and shared responsibilities of Corporate Sustainability

and Human Resource Development according to the process.

Figure 1.1 Process Framework

Scope and Delimitation

As mentioned, the research focuses on gaining insight into current practices,

attitudes, and awareness of selected hospitality and tourism establishments in

Tacloban, Leyte in relation to corporate sustainability. Considering this, the findings

of the paper will only be an accurate representation of the selected hospitality and

tourism establishments in the specified locale. The research participants were only

limited to employees of selected hospitality and tourism establishments in Tacloban,

Leyte.
Due to limited resources and the ongoing COVID19 pandemic in the

Philippines, the researchers will not able to survey the entire hospitality and tourism

establishments in Tacloban, Leyte. Additionally, due to specific constraints regarding

health issues, the researchers have decided to limit the sample to 50 participants,

from at least 10 selected hospitality and tourism establishments in Tacloban, Leyte.

Significance of the Study

The information generated in this research will be used to improve efficiency

in business operations like saving resources such as energy, water, and other

materials input. Moreover, the study may also suggests best practices that can be

adopted by hotel/resorts owners and other related hospitality and tourism

establishments in Tacloban, Leyte. This may also inform them on their compliance to

environmental laws. Sustainable business operations can also be used as marketing

strategy or branding. Or, an initial compliance to any business or operation

certification such as ISO.

Definition of Terms

 Corporate Sustainability – is the strategy a business uses to make a

positive impact on the environment and in communities.

 Corporate Social Responsibility – Corporate social responsibility is closely

related to corporate sustainability, though it is a distinct business practice.

Corporate social responsibility is a broader term, used more generally to


describe practices or actions a business has taken to advance social and

environmental causes.

 Human Resource Development – in relation to corporate sustainability, it

can be defined as “the adoption of human resource strategies and practices

that enable the achievement of financial, social, and ecological goals, with an

impact inside and outside of the organization and over a long-term time”.

 Destination Management Organizations – organizations whose primary

function is to attract visitors for the purpose of enhancing the local economy

through purchase of room nights, food and beverage, retail items,

transportation or visitor services.

 Small and Medium-sized Enterprises (SMEs) – are businesses that

maintain revenues, assets or a number of employees below a certain

threshold.
CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

The globalization of business environments, the growing importance of

sustainable development in the 21st century and corporate sustainability in its three

dimensions (economic, social and environmental), led to researchers and

organizational managers in the 1990s being faced with a paradigm of transition

regarding strategic management (Stead and Stead, 2008) . According to these

authors, this transition was already shown in their book, when stating that “strategic

managers” know that most of the decisions they make can potentially affect the

natural balance, and here lies the change in thought concerning the relationship

between economic activity and sustainability. Stead and Stead (2008) also

concluded that this thinking is considered critical.

Based on the definition of universal sustainable development, it is accepted

that without corporate support, society will not achieve sustainable development as

organisations represent the economy’s productive resources (Carcano, 2013), and

so organisations face this question more and more. Following this line of thought, the

concept of sustainable strategy was introduced (Stead and Stead, 2008), which

means that strategic management involves developing competitive advantages that

allow organisations to capitalize on environmental opportunities and minimize the

threats, as the environmental dimension can provide relevant benefits, despite being

subject to some criticism. Based on the premises underlying the concept of business

strategy, but aiming to give organisations a three-dimensional (economic, social and


environmental—triple bottom line), long-term, competitive advantage (Stead and

Stead, 2008).

Regarding the phenomenon of globalization, another important concept must

also be defined, i.e., sustainable development. Historically, this concept has been

addressed from 1945 until today, by various international organisations.

Conceptually, sustainable development has been relevant in the last decades

(Kostoska & Kocarev, 2019). Sustainable development is defined as development

that satisfies the needs of the present without jeopardizing the capacity for future

generations to also satisfy theirs (here, three basic principles were defined

(European Commission, 2013): environmental integrity (related to not harming the

natural environment); social equality/equity (equal access to resources and

opportunities) and economic prosperity (organisations’ productive capacity to provide

individuals with a reasonable quality of life).

In this context, recent decades have seen numerous efforts to integrate the

legislation associated with corporate sustainability in organisations’ management

systems. This means that for organisations to contribute to improving global

sustainability, they must undertake an internal transition process of adaptation and

flexibility, which should involve all stakeholders and be in line with a long-term

strategic view (Chua and Chrisman, 2018). It was shown that the importance of

organisations adapting their strategies to the triple bottom line, while considering the

particularities of the business, organisational culture and their own resources so that

sustainable objectives can be fulfilled in practice. In addition, current business


models and management systems should direct organisations towards the creation

of a competitive advantage supported by the creation of a sustainable added value

(Kramer and Porter, 2011).

The increase in corporate commitments to corporate sustainability has been

accompanied by a growing volume of business and management research. While

much of the early work had a strong environmental emphasis it has increasingly

been broadened to address many dimensions of corporate sustainability including

the business case for corporate sustainability; supply chain management (e.g.

Seuring et. al. 2008); innovation (e. g. Boons and Ludeke-Freund 2013)

entrepreneurship (e. g. Hockerts and Wustenhargen 2009); marketing (e.g. Hult

2011); leadership (e.g. Jones et. al. 2014); human resource management (e. g.

Jackson et. al .2011); and management information systems (e.g. Dao et. al. 2011).

A range of research has also been undertaken across the extractive industries

(e.g. Franks et.al. 2010), in the manufacturing and service sectors generally (e. g.

Gunasekaram and Spalanzani1 2012) and on a number of sector specific studies

(e.g. on manufacturing Egilmez et. al (2013); on health care, (Pammolli et. al. 2011);

on retailing, (Jones. et. al. 2011); and on the global hotel industry, (Jones et. al.

2014).

Income from hospitality has influence on the income of local residents and in

turn the income of the local residents has influence on the tourism sustainability

(Paci & Marrocu, 2013). This is because hospitality industry promotes travel and
tourism, has a direct contribution to the GDP, employment, and also indirect impact

on capital investment, government collective spending, and supply chain effects. A

lot of income is generated by hospitality through hotels, travel agents, airlines and

other passenger transport services, as well as the activities of restaurant and leisure

industries that deal directly with tourists, which directly adds to the GDP of the

country. Hospitality industry growth is vital, because it provides a lot of employment

opportunities and there is an opportunity for the national citizens to have a priority on

recruitment, selection, training and a steady employment.

In recent times the terms sustainable development and sustainability began to

receive much more widespread attention and currency especially from the 1980’s

onwards following the publication of the ‘World Conservation Strategy’ (International

Union for Conservation of Nature and Natural Resources 1980) and ‘Our Common

Future’ (World Commission on Environment and Development 1987). Increasing

interest in sustainability reflects a growing concern about a range of major

challenges and problems facing societies, environments and economies at a variety

of spatial and temporal scales. These concerns include continuing population growth

and urbanisation and the pressures this is putting on natural resource consumption

and food supplies; climate change; growing levels of pollution; the loss of natural

habitats; and water stress and the increasing scarcity of water resources in some

areas of the world. In theory the concept of sustainability has become increasingly

seen as offering a potential solution to these problems.

Diesendorf (2000) argued that sustainability can be seen as ‘the goal or

endpoint of a process called sustainable development.’ Arguably the most widely


used definition of sustainable development is that provided in ‘Our Common Future’

namely ‘development that meets the needs of the present without compromising the

ability of future generations to meet their own needs’ (World Commission on

Environment and Development 1987, accessed 2022). That said defining

sustainability is not straightforward and there are a number of contrasting and

contested meanings.
CHAPTER III

METHODOLOGY

Research Design

The study will utilize a systematic type of sampling technique. Email and

contact information were readily available through a contact list, establishment’s

websites (if available, Facebook, and Google Mail. To reach the goal of at least 30

responses, another additional survey delivery method will be used. A stratified

random selection of hospitality and business staff in the selected establishments had

the survey sent to them through Google Mail (Gmail). At the end of the survey three-

month timeframe, a final sample size of 50 participants, from at least 10 different

hospitality and tourism establishments, will be collected.

Research Locale

The population sample will consist of employees of selected hospitality and

tourism establishments in Tacloban, Leyte. Different sizes of hospitality and tourism

establishments will be incorporated in this research to increase the accuracy of the

results. This population was chosen due to their increase in company knowledge and

simplicity of communication. No personally identifiable information was asked in the

survey in order to ensure participant anonymity.

Research Instruments

The survey questions in the questionnaire are designed, in which fourteen

questions, incorporating a 5-point Likert scale were used to capture information


about the employees’ attitudes or awareness as well as the sustainable practices of

their organization. Two questions looked at an employee’s attitude or awareness

level related to sustainability. Sixteen current practice questions were designed to fit

into one of three sustainability categories: economical, environmental, and societal.

All questions were close-ended to allow for easier quantitative interpretation of the

answers. Several questions contained similar content in order to provide reliable

results. Key terms were thoroughly defined before the survey questions began.

Data Gathering Procedure

Distinguishable questions were used for the purpose of drawing better

conclusions and correlations between varying companies. These types of questions

answered: the age of the responder, his or her education, and the geographical area

at which his or her company operated. Each respondent also had the choice to write

down the name of his or her company. However, this information was not required

for the completion of the survey. The geographical area, at which a company

operated, and the total number of employees later proved to be contributing factors

as to what practices a responder’s company incorporated. Figure 3.1 shows the flow

of activities needed in order to conduct the survey and to ensure a sufficient amount

of data was collected. This process will help yield more accurate results.
Figure 3.1 Data Collection Process

Sampling

The research study population consisted of participants working for hospitality

and tourism business establishments in Tacloban, Leyte. Email and contact

information was obtained through the Internet. Much of this information came from

the establishments' websites (if available), Google Mail, Facebook and other various

social media networks. The final contact list will consist of a wide variety of

hospitality and tourism establishments in terms of employees and geographical

operation. By using a diverse sample set, the results more accurately resembled the

sustainable actions and knowledge of companies throughout the hospitality and

tourism industry.

Managers and employees, demonstrating seniority and knowledge of his or

her company, were targeted. This targeting occurred by analyzing each employee’s

job title. The sample size depended solely on the response rate of the survey. Based
on research adequacy and time feasibility, 30 responses from a wide variety of the

determined establishments was the goal.

This study also collected demographic data such as whether the

establishment was publicly or privately owned, the number of employees working at

each company, and the location at which it operates. This included: statewide,

regional, national, and international. Each subject had the option to identify the

establishment’s name for which he or she worked. Gathering this information

provided insight into sustainable practices/awareness and distinguishability.

Validation of Research Instrument

Before the survey will be administered, the questions were validated. Content

validation was completed using the face validity method. According to Sekaran

(2000), face validity ensures that items intended to measure a concept do appear to

measure that concept. Two graduate students performed face validation and

provided feedback as to how the survey could be written and structured to better

answer the research questions within this study.

Sekaran (2000) states that using an expert panel of judges to validate a

survey can be considered as an acceptable way of ensuring content validity. The

ability of measuring the intended concept and collecting accurate and measurable

data were realized through this process. The face validity method was chosen due to

time constraints and because it allows for more accurate results.


In order to increase the validity of the survey, an expert panel review also took

place by three university professors specializing in research, statistics, and

sustainability. The professor specializing in statistics previously created and

administered many surveys throughout his career and is an expert at structuring

questions. The professors in research and sustainability know how to ensure that

content validity is accurate.

Statistical Treatment

Data collection, statistical analysis, and documentation of findings occurred

through the use of Microsoft Excel. Microsoft Excel has the ability to analyze data

through statistical testing. Using this tool will also improve the accuracy/validity of the

data and results because there is no need to transcribe data. Many human errors

can occur when a researcher has to transcribe data. Microsoft Excel will assist in the

documentation of findings and the creation of graphs and tables. These graphs and

tables also helped in better understanding the results. Detailed descriptions were

used to display the results of the study. Finally, discussion and conclusions will be

generated after the data will be analyzed and the findings documented.
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APPENDIX A

SURVEY EMAIL

Subject: IMPORTANT: Research Survey

Greetings!

We are researchers from college/school performing a study on sustainability

practices in hospitality and tourism industry. We are in need of your assistance to

participate in the very short survey we have created which should take you no more

than 5 minutes to complete. The intent of this survey is to better understand the use

of sustainability practices in logistics. When the results are being collected, any

identifying information will be removed. There will be no way to trace responses back

to a specific person. We ask that you provide the name of your company for

research purposes only. No company names will be published. Thank you in

advance for your participation and assisting me in completing my research and

graduate degree.

You may access the survey by clicking on the link below:

ENTER LINK HERE

Best Regards,
APPENDIX B

SURVEY FORM via Google Form

Corporate Sustainability Assessment in Selected Hospitality and Tourism

businesses in Tacloban City: Inputs for efficient and environment - friendly

operations and services.

The information you provide in this survey will be kept anonymous to maintain your

privacy. Please answer all the questions to the best of your knowledge and provid

the company for which you work. The name of your company will not be published; it

will be used to better understand the results of the survey.

1. Which of the following represents your age group (years old)>?

o 18-24 o 46-52

o 25-29 o 53-65

o 30-36 o 65 or older

o 37-45

2. What is your highest level of education?

o Completed high school o Master’s Degree

o Some College o Doctor of Philosophy

o Bachelor’s Degree o N/A

3. What is the name of your company? This information will be unpublished.

(OPTIONAL) ____________________

4. Is the establishment where you are currently employed publicly or privately

owned?
o Publicly owned o Privately owned

5. Approximately, how many employees does the establishement have?

o 1-500 o 1001-1500

o 501-1000 o 1501-2000

For the responses below, refer to YOUR establishment’s current practices:

Strongly Disagree Neither Agree Agree Strongly

Disagree or Disagree Agree

As new forms of energy and


sustainable practices become
available, best practices are re-
evaluated.
Supply chain efficiency
procedures are often checked.
Supply chain sustainable
practices are regularly
evaluated with environment in
mind.
Environment-friendly practices
are very important.
Loss or waste of time and/or
resources is corrected always.
All employees have a clear
understanding of the
establishment’s sustainability
practices.
Employees develop problems in
family, social life, and overall
health.
An additional employee is
regularly hired to ease
workload.
Employee interests are a
primary concern.
We are sincerely grateful for taking the time completing the survey. Please

ensure you have answered ALL questions before submitting your response.

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