Decision Making essay Example

  • Category:
  • Document type:
  • Level:
  • Page:
  • Words:


Sustainability and Corporate Social Responsibility

Student name & Admission number


The hospitality industry is among the fast developing industries around the globe. Their competition advantage is catalyst by their active involvement within sustainability and corporate social responsibility (CSR) programmes. Each firm around the globe is working hard to secure its position in the market and seize a particular number of customers. Sustainability and CSR among hotels like other firms remain key factors and as such, each hotel is toiling hard to remain significant in the industry as they become watchful of subjects that entail environmental as well as social responsibility (Kotler, 2008).

Sustainability and Corporate Social Responsibility

Sustainability in businesses is meant to implement practices that support and enhance economic safety, social wellbeing and environmental protection as they work hard improved performance. To achieve this, firms in hospitality industry formulate sustainable business strategy which is enclosed in sustainability reports. Sustainable development entails three components, namely, environmental protection, social equity, and economic prosperity, form the basis for a reporting paradigm called the triple bottom line (TBL). The TBL approach is intended to help companies integrate the three components of sustainable development into core operations and to translate sustainability theory management practice (Carlson R, & Carlson S, 2011).

“Corporate social responsibility” (CSR) entails organization’s responsibility to respond to its stakeholders’ economic, legal, ethical and philanthropic concerns and issues. Generally, society cannot function without the economic, social and philanthropic benefits that firms offer. Businesses and management that employ a stakeholder approach commit to serving broader goals, in addition to economic and financial interests, of those whom they serve, including public. There is also a rising trend of spending in the social sector and improving the company’s reputation as firms that are socially responsible. Increasingly, hotels are launching campaigns stressing on their corporate social responsibility (CSR), which includes things like keeping the environment clean, causing lesser pollution, helping the underprivileged children and doing good for the society at large (Kotler, 2008). These have become some of the most reliable and easy means of reaching out to the audience, not to mention the cost effectiveness of each of these methods.

Impact of Sustainability and Corporate Social Responsibility (CSR) onthe decision making process

Nowadays, hotels are called upon to integrate their sustainability and Corporate Social Responsibility (CSR) on the decision making process. Shareholders and other stakeholders within a particular hotel segment not only pride in their influence on firm’s decisions, but also play a key role in solving the challenging problems in societies. Presently, hotels function in a dynamic surroundings because of rapid changes in environment, inform of technology, legal system, social system and political matters with cut-throat competition among stakeholders (Neath & Wuhi, 2010) As such, hospitality businesses and management need to be concerned with sustainability and social responsibility issues so as to secure a competitive edge at the market.

While hotel shareholders decisions may vary on approach to be embraced, they together unanimously agree on broader scope of responsibility to solve some of the existing problems in society. For this reasons, firms in hospitality industry are ever more working with stakeholders to comprehend their views and apprehensions on a number of issues ranging from social, economic, environmental and governance as they integrate and address this issues and concerns of the firm’s strategic decision-making processes.

Sustainability has been vital in decision making processes for firms in hospitality industry. The focus of sustainable development has entirely been made compatible with the hotel goals and decisions of business itself like in the creation of long-term shareholder value (Stitzer, 2010) In fact, proponents on hotels’ sustainability contend that the TBL approach is merely an extension of the scope and time line over which a shareholder’s interests are assessed on strategic decisions reached upon. In some firms, sustainability chair has been utilized in pursuing and developing policies and decisions that help satisfy firm’s impact on goals and achievements. Presently, other hotels’ stakeholders have sometimes used sustainability impact evaluations in support decision-making process so as to realize more sustainable outcomes.

Additionally, sustainability reports have assisted the hotels to highlight keys achievements they have made for the public on new initiatives put forth during the strategic decision making process. It has been impressive on how social reporting have expanded the scope of issues covered when analyzing a hotel’s performance. As such, the sustainability system offers a broader perspective to issues that financial reporting fails to account for during decision making period by various stakeholders (Taylor, 2010).


Any business draws its sustenance decisions from the society in form of inputs. So there has to be a socially responsible behavior which would help to maintain this relationship. The business decisions which the company takes have an impact on the society, where it operates. For that reason, firms in hospitality industry must fulfill the social obligations as a compensation for undermining the legitimate interests of the society. The Hotels grows and so does its power. As its power grows, the responsibility it has for the society also increases. As such, firms need to operate within a manner that society considers responsible will lose it. This is the iron law of responsibility. The social responsibility legitimizes and promotes economic objectives of business. When the social life is improved, the business can have good customers, employees and community.


Carlson, JR, Carlson, DS. & Ferguson M. 2011. Deceptive impression management: Does

Deception pays in established workplace relationships? Journal of Business Ethics, 100(3), 497–514.

Kotler, NL. 2008. Corporate Social Responsibility: Doing the Most Good for Your Company

and Your Cause. New York: Wiley

Neath, G & Wuhi, C. 2010. Corporate management. SAGE: New Jersey.

Stitzer, T. 2010. Organizational strategy and business ethics. New York: Cengage Learning.

Taylor, P. M. (2010). Economics. New York: Cengage Learning EMEA.