Hotel industry faced with losing business if CSR commitment is lacking

I’ve written a number of times before about how I anticipate that Corporate Social Responsibility (CSR) initiatives and practices on a company by company basis will ultimately need to fall under a wider umbrella of ratings for both customers and service partners alike in the near future. I anticipate many industries will fall in line with customer/consumer and supplier expectations in the coming years although that transition may be accelerated in certain industries with a higher public profile such as airlines, automobiles and travel and tourism. For example, the hotel industry relies on a healthy mix of both private and corporate customers to maximize occupancy rates and as such may be on the front line for potentially losing revenues if they are not operating viable CSR programs when evaluated by potential guests.

Many corporations are now including evaluations of green and CSR ratings when negotiating with hotel chains before establishing corporate contracts and rates. In turn members of the public are also becoming increasingly aware of the best practices of hotels when making lodging decisions. According to the Considerate Hoteliers Association (CHA) in the UK these factors are already impacting the industry particularly from the corporate booking side. The group offers membership to hotels that promote sustainable, environmentally friendly and socially responsible practices. Their director John Firrell said:

“Social responsibility has come more to the fore over the last few years in general – not just in the hospitality industry. Now a lot of companies looking to make mass bookings will ask what the hotel’s CSR policy and environmental policy are before they put in their request for pricing. If you don’t come out with the right answers now, you don’t get the business. Companies now have their own CSR policies and they expect the hotels they use to match those.”

What’s actually occurring is a natural extension of the supply chain management that I feel will be a huge determining factor in the growth of CSR this year and beyond. The ethical sourcing of materials, resources and indeed where a company spends its travel and entertainment budget will all need to funnel under the same standards that a company deploys as its own CSR standards. While it will result in many hotels needing to invest and reevaluate their present commitment to CSR I find it encouraging that the supplier/partner aspect of corporate social responsibility is accelerating so rapidly. I imagine it will only be a few short years until the hotel industry introduces a standard rating system to evaluate CSR performance much like it currently uses a star or diamond rating so that potential guests know in advance the quality of the hotel and its features. That official integration may be a few years in coming depending on the country (or industry) but it will certainly level the playing field and encourage the entire industry to reinforce its commitment to CSR.

To learn more about the Considerate Hoteliers Association please visit their website.

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