Corporate social responsibility and work engagement: Evidence from the hotel industry

This study aims at testing a research model which explains how corporate social responsibility (CSR) affects work engagement. Relationships between variables were assessed using structural equation modeling (SEM). Research data were gathered from full-time hotel employees (N: 680) and managers (N: 325) in Antalya province of Turkey. SEM results indicate that perceived external prestige and organizational identification play a partially mediating role in CSR's effect on work engagement. The present research is the first study which examined the relationship mechanism between CSR and work engagement by focusing on CSR with a broader perspective (the stakeholder approach) in the hospitality literature. Furthermore, it contributes to hospitality literature through revealing on the basis of generalized reciprocity principle of social exchange theory that work engagement could be increased with the help of CSR.     

Corporate social responsibility and sustainability balanced scorecard: The case study of family-owned hotels

This research aims to find empirical support for the benefits of Corporate Social Responsibility (CSR) to family-owned hotels by identifying paths through which CSR influences business. The Sustainability Balanced Scorecard (SBSC) concept is used to assess the perceived importance of relationships between CSR and business performances to support the goals of the case hotels. SBSC breaks the business down into five dimensions namely; Financial, Customer, Internal Business, Learning & Growth and Non-Market Perspective, which is CSR in this study. The results of partial least squares (PLS) regression using the sample consisting of three stakeholders (i.e., two hundred customers, seventy employees and thirty managers) of family-owned hotels delivered several findings: (i) both the employee and manager group shows that CSR has a significant influence on BSC dimensions with variance (ii) all of the stakeholder groups support the significant relationship between CSR and goals and (iii) all of the stakeholder groups confirm the causal relationship among BSC dimensions with variance. Lastly, we conclude the paper by discussing implications for family-owned hotels as well as addressing limitations.     

Effects of different dimensions of corporate social responsibility on corporate financial performance in tourism-related industries

Although the stakeholder framework proposes the multidimensionality of corporate social responsibility (CSR) (Clarkson, 1995), previous research has yet to investigate the relationship between certain dimensions of CSR and corporate financial performance (CFP) in tourism-related industries. The purpose of this study was to disaggregate CSR into five dimensions based on corporate voluntary activities for five primary stakeholder issues: (1) employee relations, (2) product quality, (3) community relations, (4) environmental issues, and (5) diversity issues, and examine how each dimension would affect financial performance among firms within four tourism-related industries (airline, casino, hotel, and restaurant). While all CSR dimensions were proposed to have positive financial effects, results revealed that each dimension had a differential effect on both short-term and future profitability and that such financial impacts varied across the four industries. The findings can provide tourism managers with insights into which dimensions of CSR activities would improve their companies’ financial performance.     

Are better-connected CEOs more socially responsible? Evidence from the U.S. restaurant industry

Extensive research has documented how corporate social responsibility (CSR) outcomes are determined by CEOs' intrinsic characteristics, while their social network status has been under-researched. Building on impression management theory and resource-based theory, the current study analyzes the association between CSR activities and top management's position in the social hierarchy, i.e., network centrality. The heterogeneous effects across different restaurant and CSR types are examined based on stakeholder theory. Using a panel dataset of publicly traded U.S. restaurant companies and a novel dataset of CEO network centrality, we find that firms with highly connected CEOs are involved in more socially responsible activities. In addition, the marginal effect of network centrality on CSR is stronger for fast-food than for full-service restaurants and more prominent for external than internal stakeholder subcategories. The results advance the determinant analysis of CSR and provide managerial implications for CEO selection and policy suggestions on CSR promotion.     

Application of upper echelon theory for corporate social responsibility dimensions: Evidence from the restaurant industry

ABSTRACT

This study applies upper echelon theory and validates its conceptual framework by investigating chief executive officers’ observable determinants (e.g., the age, tenure, and formal education of top managers) of corporate social responsibility (CSR) in the restaurant industry. Multiple CSR dimensions (e.g., operational, non-operational, community, diversity, employee, environment, and product) are examined through fixed effects regression. The results indicate that older and highly educated CEOs who serve more stakeholders perform fewer CSR activities, whereas longer tenured CEOs who serve more stakeholders perform more CSR activities. Consequently, non-operational, community-, diversity-, employee-, and environment-related CSR activities are significantly explained by the proposed attributes. By validating both the theoretical perspectives of upper echelon theory and the role of stakeholder demands in CSR decisions, this research can contribute to expanding the CSR and upper echelon literature to the restaurant industry.     

Hotels’ corporate social responsibility practices,organizational culture,firm reputation,and performance

Corporate social responsibility (CSR) practices are considered one of the key success factors influencing firm performance. However, how CSR practices should be integrated into an organization’s business practices has not been investigated empirically. The present research proposes an integrated model incorporating the interrelationships among CSR practices, organizational culture, and corporate reputation to improve firm performance in the hotel industry. The proposed model is developed using stakeholder theory and the perceptions of the general managers. According to the study’s results, organizational culture influences different dimensions of CSR. The results further indicate that hotels using CSR practices related to employees and customers strengthen their reputation. Through improved reputation, CSR practices positively influence firm performance. Furthermore, hotel managers perceive that CSR activities in the local community and related to the environment do not significantly affect a hotel’s reputation. Theoretical and practical implications are provided, and the limitations of the study and future lines of research are discussed.     

Narcissistic CEOs and corporate social responsibility: Does the role of an outside board of directors matter?

During recent years, there has been a growing interest in CEO narcissism across disciplines. Various scholars document that CEO narcissism is an important factor that should not be overlooked when analyzing various organizational outcomes and strategies. Research on CEO narcissism has focused on its negative implications on organization outcomes. However, little attention has been paid to its effect on corporate social responsibility (CSR). This study explores the relationship between CEO narcissism and two distinct facets of CSR (stakeholder management and social issue participation), while taking into account the moderating role of outside board of directors. Using a sample of publicly traded U.S restaurants, the results document that an outside board of directors plays a moderating role on the relationship between CEO narcissism and the two distinct facets of CSR.     

A review of the business case for CSR in the hospitality industry

Despite prolific research on corporate social responsibility (CSR) in its various forms in the hospitality industry, there is no consensus regarding the business case for CSR initiatives. Using a stakeholder lens, we review the research on CSR and its rationale by analyzing its impact on the environment, employees, customers, community, and investors in the hospitality industry. Our review analyzes 170 articles published between 1990 and 2017 covering different conceptual frameworks, measures, and samples to evaluate the current state of the field, integrate findings, identify gaps, and suggest avenues for future research. Our review calls for a) more studies that examine hospitality-specific CSR initiatives to examine impact on firm performance, b) greater theory-driven research, and c) expansion of contexts both in terms of different sectors of the industry and geographical locations, than is covered by existing studies. Future research directions are provided.     

The impact of four CSR dimensions on a gaming company’s image and customers’ revisit intentions

The purpose of this study is to investigate whether perceptions of corporate social responsibility (CSR) initiatives affect casino customers’ corporate image as well as the customers’ behavioral intentions (i.e., revisit intentions), through the lens of Carroll’s corporate social performance model, stakeholder theory, and legitimacy theory. This study also examines the mediating effect of corporate image on the relationship between perceived CSR and behavioral intentions. An onsite survey was conducted with 596 casino customers in South Korea. The results revealed that ethical CSR had the strongest impact on corporate image, followed by economic and philanthropic CSR. Only philanthropic CSR had a significant and direct effect on behavioral intentions. Corporate image mediated the relationship between three types of CSR (ethical, economic, and philanthropic) and behavioral intentions. Companies can benefit from these findings by understanding how specific CSR initiatives can enhance corporate image and increase customer retention. This study advances the emerging field of CSR in the gaming industry.     

Social responsibility and total quality in the hospitality industry: does gender matter?

This empirical study examines the role of gender diversity in top management teams (TMTs) and their impact on corporate social responsibility (CSR), which is an underexplored topic within the hotel sector. Based on stakeholder theory, we argue that the relationship between gender diversity and hotel performance is indirect and mediated by CSR. Our study also analyses how the implementation of total quality management (TQM) and CSR influences hotel stakeholder results, and hence business performance. Using a sample of Spanish hotels, we provide evidence that gender diversity in TMTs increases the level of implementation of CSR within the hotel industry. The results show that the impact of gender diversity on hotel performance is mediated by CSR. The findings also suggest that the adoption of TQM and CSR management philosophies improves the capacity of hotels to benefit their stakeholders, and that this improvement has a positive effect on hotel performance.     

Can corporate social responsibility protect firm value during the COVID-19 pandemic?

The novel coronavirus (COVID-19) pandemic has caused a significant decline in the stock market worldwide, and hospitality companies are experiencing serious financial problems. Protecting and preserving firm value is a critical way of helping hospitality companies survive the crisis. The influence of corporate social responsibility (CSR) on firm value has been widely investigated. However, little is known about the stock price movement following CSR activity adoption during an industrial crisis. Using event study and difference-in-difference method, this study reveals that engaging in CSR activities can increase the stock returns and stakeholder attention of hospitality firms during the pandemic. Community-related CSR has a stronger and more immediate effect on stock returns than customer- and employee-related CSR. Results also indicate that hospitality firms that pursue improved stock market performance during a pandemic can invest in CSR to protect communities, customers, and employees for attracting further stakeholder attention.     

Environment management in the hotel industry: does institutional environment matter?

Limited theoretical attention has been paid to understand the underlying drivers of hotels’ engagement in environment management (EM). By using institutional theory, this study provides an integrated model that captures various social drivers of hotels’ engagement in EM. The associations between the three dimensions of institutional environment and hotel environmental practices were empirically tested, as well as the moderating role of hotel characteristics. A total of 414 usable surveys representing 414 hotels were collected from hotel managers in China. The results demonstrate positive associations of hotel EM practices with supportive state regulations, shared industry standards, competitors’ EM practices and expectations from various stakeholders such as employees, local community, and investors. Particularity, the strength of positive relationships between specific institutional pressures vary across hotel sizes and scales. Theoretical and practical implications are discussed     

The impact of employee-oriented CSR on quality of life: Evidence from the hospitality industry

This paper builds on recent corporate social responsibility (CSR) literature and on stakeholder theory. Our aim is to analyze the direct and indirect effects of employee-oriented CSR on hotel workers' quality of life (QoL). Based on survey collected from a sample of hotel employees in the Canary Islands (Spain), relationships were empirically examined through partial least square structural equation modeling (PLS-SEM). This study confirms that workers' perceptions of employee-oriented CSR positively and directly enhance their QoL. We found indirect positive effects through several mediators. Our results highlight the key role of working conditions, task significance, turnover intentions, and intrinsic quality on the relationship between employee-oriented CSR and QoL. Moreover, hotel service quality level is an antecedent of employee-oriented CSR. These findings advance the literature on CSR and reveal important managerial implications, especially in a post-pandemic scenario in which workers’ overall QoL is essential to ensure no one is left behind.     

Corporate social responsibility and systematic risk of restaurant firms: The moderating role of geographical diversification

Despite growing attention to corporate social responsibility (CSR) in the tourism literature, the relationship between CSR activities and systematic risk, one of the critical components in evaluating shareholder value, has been a topic of scarce examination. Further, the moderating role of geographical diversification on the link between CSR and systematic risk in the restaurant context has not been studied. Therefore, the current study explores these issues in the restaurant context based on the organizational theory and stakeholder theory. In addition, this study dichotomizes CSR activities into two dimensions, socially responsible activities (i.e., positive CSR) and socially irresponsible activities (i.e., negative CSR), to examine the separate effects of the two dimensions. A two-way fixed-effects model that effectively accounts for unobserved effects in a panel data set has been employed to test the proposed hypotheses.     

Airline Travelers' Causal Attribution of Service Failure and Its Impact on Trust and Loyalty Formation: The Moderating Role of Corporate Social Responsibility

This study examines airline travelers' causal attribution (stability and controllability) and its impact on trust and loyalty formation and investigates the moderating role of corporate social responsibility (CSR) in this process. Based on a literature review, theoretical relationships between stability, controllability, CSR, trust, and loyalty were derived, and the moderating effects of CSR on relationships between stability/controllability and trust/loyalty were examined. To empirically test these theoretical relationships, quantitative data were collected from 271 airline passengers who experienced a service failure in the past year. The results provide support for effects of stability and controllability on trust as well as the effect of stability on loyalty. In addition, the perception of CSR had positive effects on trust and loyalty. Finally, a favorable CSR perception weakened the negative effects of a service failure on trust and loyalty, particularly when the failure was attributed to a stable cause. The results highlight the important role of CSR in service failure situations and have important implications for airline managers.     

The impact of hotel CSR for strategic philanthropy on booking behavior and hotel performance during the COVID-19 pandemic

During the novel coronavirus (COVID-19) pandemic, some hotels have engaged in corporate social responsibility (CSR) activities to help overcome the crisis. Given that most existing research examines the impact of hotel CSR on a single stakeholder, how hotel CSR activities in a crisis are perceived by multiple stakeholders is unknown. Drawing on the concept of strategic philanthropy, this study examines the impact of hotel CSR activities during the pandemic, such as providing accommodations to healthcare workers, on hotel firms' market value and prospective hotel customers’ booking behavior. Adopting mixed-methods approach, this study finds negative impacts of hotel CSR for strategic philanthropy on firm market value and customer booking behavior. The study result indicates that the value of hotel CSR depends on the nature and environmental contexts of CSR. Specific theoretical and practical implications are provided.     

Contribution of corporate social responsibility studies to the intellectual structure of the hospitality and tourism literature

This study aims to identify the role of corporate social responsibility (CSR) studies in formulating the intellectual structure of the hospitality and tourism literature by conducting a bibliometric analysis. A total of 8049 articles published in the top six hospitality and tourism journals between 1973 and 2019 and 401,473 listed references are extracted from Scopus. BibExcel and VOSviewer are used to develop and visualize bibliometric mapping and indicate the level of contribution of the CSR studies. Findings show that environmental responsibility outweighs the other CSR-related topics. In addition, stakeholder theory is the most commonly applied theory in the CSR literature, and five research clusters are identified. Furthermore, CSR-related studies remain in the emerging stage in the hospitality and tourism literature, and studies examining the perspectives of local communities are scarce. Finally, a holistic approach is necessary in CSR-related studies to connect and consolidate current CSR knowledge.     

Corporate social responsibility in cruising: Using materiality analysis to create shared value

Creating Shared Value hinges on the interdependence between a company's success and social welfare, and also the identification and expansion of connections between that company and society. Because critics say the concept is counterproductive, in that it focuses too narrowly on the company's economic value creation, we take a materiality analysis approach of corporate social responsibility (CSR). This approach provides evidence of what is important to stakeholders and promotes meaningful corporate disclosure, central to the Global Reporting Initiative. This study reports on a materiality analysis of the cruise industry, comparing stakeholder concerns/demands with both the relevant literature and existing CSR reports to determine to what extent the current industry definition of its social responsibility matches the expectations of its stakeholders, and subsequently, to theorise reasons for the patterns found. Results evidence that cruise companies tend to both over-report immaterial issues and under-report material issues, without responding to stakeholders' requests.     

The COVID-19 pandemic and organisational commitment of senior hotel managers

The COVID-19 pandemic will reduce the attractiveness of hospitality occupations. This particularly concerns senior management positions whose holders may substitute hospitality jobs with more secure and rewarding employment in other economic sectors. Organisational resilience of hospitality businesses, including their response to COVID-19, and corporate social responsibility (CSR) practices may, however, affect perceived job security of senior managers and, thus, influence their commitment to remain in their host organisations. This paper quantitatively tests the inter-linkages between the above variables on a sample of senior managers in hotels in Spain. It finds that the levels of organisational resilience and the extent of CSR practices reinforce perceived job security of managers which, in turn, determines their organisational commitment. Organisational response to COVID-19 affects perceived job security and enhances managers’ organisational commitment. To retain senior management teams in light of future disastrous events, hotels should, therefore, strengthen their organisational resilience and invest in CSR.