Introduction to CSR

(Corporate Social
Responsibility)
Presented by Mr Husam Helmi
 Learning outcomes

 Demonstrate the importance of Corporate social

responsibility in contemporary business environment.
 Discuss the different views on CSR in contemporary
business environment.
 Discuss different benefits and challenges of CSR in the
business world.
 Recognise different HR practices that can enhance CSR.
 What is CSR?

 The Term Social Responsibility can be described in

different ways such as:
 “Going beyond profit making”
 “Any discretionary corporate activity intend to
further social welfare”
 “Improving social and environmental conditions”
Robbins and Coulter (2016)
 CSR

 “The perception that corporations have an obligation to

groups in society other than stockholders and beyond that
prescribed by law and union contract”. Jones (1980)
 “a commitment to improve community well-being through
discretionary business practices and contributions of
corporate resources”.
 Kotler and Lee (2005: p. 3)
 Different Views of CSR

 Classical View: The View that Management’s only social

responsibility is to maximize profit.

 Socioeconomic View: The View that management’s social

responsibility goes beyond making profits to include protecting
and improving society Welfare.
 Marriott as a case study
 Being a responsible organisation: providing an environment where our
associates have the opportunity to achieve their potential, are highly
engaged and are empowered to deliver exceptional guest service.
 Serious consideration of human rights: Standing against tragedies such
as human trafficking and child exploitation. Continues training on key
matters is provided for associates.
 Maintenance of ethical and legal standards: Training managers and
associates on laws relating to antitrust, unfair competition, political
contributions, abuse of purchasing power, commercial and political
bribery, and more.
(www.marriott.co.uk, 2018)
 Marriott as a case study
Marriott’s environmental goals are to:

 Further reduce energy and water consumption 20% by 2020 (Energy 20

percent per kWh/conditioned m2; Water 20 percent per occupied room
(POR). Baseline: 2007);
 Empower the hotel development partners to build green hotels;
 Green the multi-billion dollar supply chain;
 Educate and inspire associates and guests to conserve and preserve;
 Address environmental challenges through innovative conservation
initiatives including rainforest protection and water conservation.
(www.marriott.co.uk, 2018)
 Marriott as a case study
Examples of Society contributions:

 Shelter and food: corporate contribution, fundraise and make in-kind

donations to help victims of disasters through organizations such as the
American Red Cross and the International Federation of Red Cross and
Red Crescent Societies.
 Jobs: training and educating the next generation. The hotels creates
opportunities through programs that provide work experience and life stills
to youth, and provide on-the-job training in our hotels.
(www.marriott.co.uk, 2018)
 Marriott as a case study

 several other factors such as

 work-life balance
 leadership quality
 training
 career growth and work environment that outweigh money when it
comes to Marriott’s employees.
 Marriott provides its employees with tailored employee benefits
and flexible schedules to maintain work-life balance.
 Discussion
 Is it a Classical and socioeconomic approach? Which one is
better?
Arguments for CSR

For CSR:
 Long run profit making: More security for future.
 Public image: Creating a favourable public image.
 Ethical obligation: Responsible actions are the right
things to do.
 Public expectation: Economic and social gaols.
 Arguments against CSR
Against CSR:
 Violation of profit maximization: business can be socially
responsible only when it pursues its economic interest.
 Dilution of purpose: Social goals dilutes business’s
primary purpose – Economic productivity.
 Cost: someone has to pay.
 Lack of skills: Business leaders lack the necessary skills to
address social issues.
 Key lessons
 Engagement in CSR should be motivated not only with the focus
on return on investment but a genuine desire to create positive
change in society.  Very often companies use CSR as simply one
more marketing tool and indulge in “green washing” – claiming
more than what they do for the environment (or other
stakeholders). 

 This can result in negative consequences like backlash or loss of

credibility and trust damaging the brand.
 (Singal and Rhou, 2017)
 Key lessons
 The nature and characteristics of the services industries and especially the hotel
sector render social initiatives salient to several desirable outcomes.

 For example, a hotel’s involvement in CSR practices can improve its brand
awareness and loyalty for customers.  

 As services are intangible, and evaluated based on perception of quality, rather

than tangible product attributes, the goodwill created by social initiatives taken
by the firm, transfers to the brand image, creating differentiation, which can in
turn create an advantage in a highly competitive industry that provides
substitutable services like hotel rooms. (Singal and Rhou, 2017)
 Reference list and further
reading
 Jones, T. M. (1980). Corporate social responsibility revisited, redefined.
California Management Review, 22(3), 59-67.
 Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the
Most Good for Your Company and Your Cause. Hoboken, NJ: John Wiley
and Sons Inc.
 www.marriott.co.uk. (2018). Corporate Responsibility. [online] Available
at: https://www.marriott.co.uk/corporate-social-responsibility/corporate-
responsibility.mi [Accessed 22 July. 2018].
 Robbins, S., and Coulter, M. (2016) Management , 13th edn., England :
Pearson .
 Singal, M. and Rhou, Y. (2017). Corporate Social Responsibility in the
Hospitality Sector, Boston Hospitality Review » Boston Hospitality Review
| Blog Archive | Boston University. [online] Bu.edu. Available at:
http://www.bu.edu/bhr/2017/01/27/hospitalitycsr/ [Accessed 22 July. 2018].