10 1108 - Whatt 06 2020 0041
10 1108 - Whatt 06 2020 0041
10 1108 - Whatt 06 2020 0041
https://www.emerald.com/insight/1755-4217.htm
Corporate
Corporate Social Responsibility in social
hospitality: are sustainability responsibility
Abstract
Purpose – In 2016, the United Nations published the agenda for sustainable development with 17
Sustainable Development Goals (UN SDGs), asking everyone to commit to reach the Goals’ targets by 2030.
Accordingly, hospitality brands developed Corporate Social Responsibility (CSR) initiatives to deliver positive
direct, indirect and induced impacts to the triple bottom lines’ environmental, social and economic dimensions.
The purpose of this paper consists in investigating the benefits that companies want to obtain, engaging in
these activities. Three very different hotel brands’ CSR are analyzed to consider their undeclared coordination
with the UN SDGs namely CitizenM, Lefay and Six Senses.
Design/methodology/approach – The paper is based on secondary qualitative data retrieved from
websites.
Findings – When choosing to commit to CSR initiatives, companies not only behave as good corporate
citizens but also pursue their economic interests. By so doing, they receive benefits that vary from improved
image and reputation amongst guests to enhanced satisfaction and commitment amongst employees, passing
through reduced fiscal burdens and financial savings.
Practical implications – The UN SDGs seem to potentially create a virtuous cycle in which Goal 8,
decent work and economic growth, must be a leading cornerstone. To make the cycle work, socio-economic
engagement and factual certainly should be improved and hospitality companies should pay a role both by
measuring and publishing the benefits of committing to CSR and funding sustainability research that can be
beneficial to their business, too. If this happens and the UN SDGs’ targets are met, the future will benefit from
a circular economy, whereby resources will not be disposed of but maintained, repaired, reused,
remanufactured and refurbished before being recycled. In other words, sustainability is not only about
creating a better life for every living being but also about developing favourable business environments to
benefit companies.
Originality/value – The comparison of hospitality brands’ with theoretically identified benefits represents
the starting point of a wider multi-dimensional reflection on coordination between companies’ CSR and UN
SDGs. Recommendations to sustain the sustainability virtuous cycle and to look at the future are drawn.
Keywords CSR, Hospitality, Sustainable development goals, Circular economy, Sustainable growth
Paper type Case study
Introduction
The objective of this paper is to give an overview of the meaning of Corporate Social Worldwide Hospitality and
Tourism Themes
Responsibility (CSR) and to multi-dimensionally analyze how hospitality brands’ Vol. 12 No. 5, 2020
pp. 525-545
sustainability strategies positively affect quality economic growth, today and tomorrow. © Emerald Publishing Limited
1755-4217
The research opens with a concise literature review of the concept of CSR. Then, three DOI 10.1108/WHATT-06-2020-0041
WHATT hospitality cases are presented, namely, CitizenM, Lefay Resorts & SPA and Six Senses. The
12,5 study highlights their CSR initiatives’ compliance with the sustainable development goals
designed and encouraged by the UN. An analysis of the CSR financial benefits on these
hospitality players’ businesses is considered too. Finally, a reflection on the United Nations
sustainable development goals (UN SDG’s) virtuous circle led by economic growth is given
and next steps for sustainability in hospitality.
526 Throughout the paper, connections between academic and practical research are
mentioned. For example, none of the three hotel brands explicitly refer to the UN SDGs, so
correlations are drawn comparing CSR initiatives’ explanations and examples to Goals’
targets. The literature review is then used to highlight the financial advantages that brands
obtain when committing to CSR. In an attempt to become known as excellent corporate
citizens, brands may be tempted to hide the monetary benefits they (may) receive from
sustainable practises. Still, it is worth highlighting them as persuasive tools to attract more
and more operators to the Goals. In turn, the UN SDGs potentially generate a virtuous cycle
that makes the economic system sustainably grow and that is fuelled by it. To sum up,
everyone benefits when sustainability practises are adopted and inclusive development is
generated (Gupta and Vegelin, 2016).
The conclusion summarizes the main findings and highlights future study areas,
fundamental to periodically assessing the actuality of UN SDGs and the possibility of
committing to the next step: the circular economy.
Example 1: CitizenM
CitizenM was launched in 2008 and today it operates 30 hotels in 11 countries (CitizenM,
2018b). CitizenM claims to be a “disruptor” of the traditional hotel model, proposing
affordable luxury hotels for modern travellers in central city locations (CitizenM, 2018c). Corporate
CitizenM’s brand has a strong personality: “we are not afraid to do things differently, to social
have fun and to shout it to the world” (CitizenM, 2018c). CitizenM does not comform to
traditional standards, but connects with younger travellers in places that are not just
responsibility
to sleep but to work, relax and play (CitizenM, 2018c). Sustainability does not appear in
CitizenM’s mission and values. Still, the company commits to some initiatives, as it believes
in minimizing its negative environmental impact and maximizing the positive social one.
CitizenM’s CSR initiatives make sense as they provide a coherent response to the UN SDGs. 529
Environmental dimension of CitizenM’s Corporate Social Responsibility. The
environmental dimension of CitizenM’s CSR refers to technology: to minimize its negative
environmental impact, the company uses the latest energy efficient technologies when
building new hotels and various accreditations have to be met (Building Research
Establishment, 2020; CitizenM, 2018d; U.S. Green Building Council, 2020). This commitment
to building environmentally friendly hotels is related to UN SDG 9: industry, innovation and
infrastructure (United Nations, 2020e.). Because of technological progresses, more
sustainable hotels are built, improving the sustainable development of cities. CitizenM
recognizes that we are only guests in this world, and it claims that it “is kind to the planet”
(CitizenM, 2018d). It obtained sustainable building labels, especially related to energy
efficiency, to minimize environmental impact (CitizenM, 2018d).
Social dimension of CitizenM’s Corporate Social Responsibility. In terms of the social
dimension of CSR, CitizenM claims that its finest asset is people: not only guests but also
employees and partners (CitizenM, 2018e). Coherently, its social initiatives are dedicated to
both internal employees, mainly in terms of gender equality and to the external
environment, focussing on educational improvement and inequality reduction. The main
Goals for this dimension are 5, 4 and 10, namely, gender equality, quality education and
reduced inequalities.
As women continues to suffer from discrimination all over the world, the UN published
SDG 5 to focus on gender inequality and the empowerment of women (United Nations,
2020j). The aim here is to ensure the full participation of and equal opportunities for women
at work. In line with this goal, CitizenM declares its love for diversity: “we see no difference
in gender, religion, ethnicity, orientation or age” (CitizenM, 2018f). Equal opportunities and
human rights are protected, as well as cultures and values, to create a good working
environment (CitizenM, 2018e). CitizenM is involved in other initiatives, too: its CSR fits
Goals 4 and 10: quality education and reduced inequality.
According to the UN, in 2017, 262 million children were out of school and more than half
were not minimally proficient in reading and mathematics (United Nations, 2020f). CitizenM
realized that a major problem in poor countries is that children cannot go to school even
when schools are present because of the distance from home or because they are only able to
attend classes irregularly (CitizenM, 2018g). CitizenMovement is the initiative, which
CitizenM seems to be most committed, and it consists of a non-profit independent
organization that delivers positive social effects (CitizenM, 2018a; CitizenM, 2018e; CitizenM,
2018g). What defines mobile citizens is mobilization that reduces distances between people
and opportunities (CitizenM, 2018g). CitizenMovement aims at inspiring hotel staff, guests
and community to give each other the gift of mobility (CitizenM, 2018g). In 2018,
CitizenMovement partnered with World Bicycle Relief, an organization that gives bicycles to
students in developing countries so that they can more easily and quickly travel to school: a
bicycle means better attendance, academic performances and enhanced prospects of staying
in school (CitizenM, 2018g). Additionally, engaging and awareness raising events related to
this initiative are organized periodically. For example, once a year, a cycling competition is
WHATT organized and stationary bikes are installed in offices so that when employees ride, they can
12,5 raise money for the CitizenMovement. Finally, CitizenM organizes spinning classes to cycle
and donate to citizenMovement (CitizenM, 2018g).
Although CitizenM is not directly involved in education, its initiative allows children to
build their own education, as per UN SDG 4. Access to school means better education, and,
in turn, reduced inequality. These initiatives are directed to the least developed countries,
530 often the most vulnerable and where inequality persists. This also aligns with Goal 10, in
which the UN focusses on the disparities between more developed countries and less
developed ones, mostly in the southern hemisphere (United Nations, 2020g).
Economic dimension of CitizenM’s Corporate Social Responsibility. In support of the
economic dimension of CitizenM’s initiatives, a funding activity was created:
“We involve our guests in our initiatives by giving them the option to skip their room cleaning,
and donating the money saved to initiatives for better mobility in developing countries”
(CitizenM, 2018g).
With this initiative, in 2018, CitizenMovement raised about e170,000, the equivalent of 1,000
bikes (CitizenM, 2018g). This initiative may also result in energy saving, related again to
Goal 9, industries, innovation and infrastructure (United Nations, 2018e). Finally, Goal 17 is
met by CitizenM through CitizenMovement, as partnerships were and will be created with
other agencies in communities to implement successful CSR initiatives.
How CitizenM’s Corporate Social Responsibility strategy makes financial sense. CitizenM
engages in CSR activities that make it a good corporate citizen and that make economic
sense to the company, too. The monetary support that CitizenM grants to CitizenMovement
is not known, but it may be assumed that it is quite relevant. Still, the foundation is at a
relatively early stage, and the objective is that it becomes self-sustaining (CitizenM, 2018a).
At that point, CitizenM will no longer need to fund it, even if it may decide to make periodic
donations.
By asking hotel guests to skip room cleaning, costs are reduced and this helps to support
CitizenMovement. In essence, CitizenM spends on room cleaning or it devolves the same
amount to its charity and there is no additional disbursement. In terms of the biking events,
it is not clear who pays for them and how funds are raised, but it may be that for the Europe
cycling routes, money is raised from the public. Initiatives in CitizenM offices help to
highlight the charitable work and the more employees who engage, the more the firm itself
donates to this cause.
Finally, building hotels with high certification standards make economic sense, as they
normally allow firms to alleviate their fiscal burden and to save money in heating and
maintenance. Image and reputation may be enhanced because of CitizenMovement and
because modern travellers tend to appreciate staying in environmentally friendly structures,
knowing that their carbon footprint is more limited by this.
CitizenM’s CSR initiatives may affect employee satisfaction and retention too: knowing
that the company is helping children in need with an education-related activity is for sure
important, but the real impact on employees is still not known. As these initiatives are at an
early stage, future analysis may be made more widely available to the public.
Discussion
United Nations Sustainable Development Goals: a virtuous cycle
Reflecting on the UN SDGs, categorizations may be drawn (Breuer et al., 2019). In this paper,
four categories are created and highlighted. Goals from 1 to 6 are mostly related to people,
their health and their lives, including poverty and education. SDGs 7 to 12 connect with
energy usage, economies and development, namely, what people focus on once they are
Corporate
UN SDGs CitizenM Lefay Six Senses
social
Goal 1: responsibility
No poverty
Goal, 2:
Zero Hunger
Goal 3: 537
Category 1: Good health and well-
being
UN SDGs related
to people’s health Goal 4:
Quality education
Goal 5:
Gender Equality
Goal 6:
Clean water and
sanitation
Goal 7:
Affordable and clean
energy
Goal 8:
Decent work and
economic growth
Goal 9:
Industry, innovation and
Category, 2: infrastructure
UN SDGs related to Goal 10:
energy and economies Reduced inequalities
Goal 11:
Sustainable cities and
communities
Goal 12:
Responsible
consumption and
production
Goal 13:
Climate Action
Category 3:
Goal 14:
UN SDGs related to
Life below water
environment’s and
planet’s health
Goal 15:
Life on land
Goal 16:
Category 4: Peace, justice and strong
institutions
UN final and general
Sustainable Goal 17:
Development Goals Partnership for the Goals
Note: A summary of the United Nations Sustainable Development Goals to which the three Table 1.
UN SDGs and CSR
hospitality companies commit with their CSR initiatives
WHATT healthy and educated. Finally, the last five Goals are divided into two groups: Goals 13, 14
12,5 and 15 aim at protecting and improving the environment and planets’ health, while 16 and
17 are broader objectives about peace and about the suggested way to reach all the other
goals (Pedersen, 2018). Table 1 contains the complete list of categories and corresponding
SDGs. These four categories are intertwined, and should be nurtured at the same time to
create a virtuous cycle and deliver positive impacts. The Earth’s inhabitants, whose life and
538 health are improved because of the first category of Goals, should take care of the way they
live and carefully develop their economic systems and settlements (second category of
Goals). If not well-managed, these may, in turn, negatively affect the third category’s focus,
the planet. To ensure that this virtuous cycle amongst Goals is nurtured in the long-term,
institutions should promote collaboration.
This study has highlighted some trends in terms of SDGs preferred by hospitality
brands for their CSR strategies. Namely, CitizenM, Lefay and Six Senses all concentrated
their efforts on industry, innovation and infrastructure (SDG 9) and on partnerships for the
goals (SDG 17). The three companies are quite young and their properties quite new. When
they built their hotels and resorts, they met Goal 9 with investments on infrastructures that
are sustainable, resource efficient and provided with environmentally sound technologies.
Today’s technology and research in terms of energy efficiency and CO2-savings permit
brands to both be compliant with the UN Goals and save money. This approach is
sustainable and makes financial sense to commit resources to this Goal. Goal 17 is in effect,
compulsory for all hospitality brands. The reality is that most hospitality brands’ core
businesses are not as yet, primarily focussed on environmentally, socially and economically
sustainable activities. So, hotels need help to deliver these positive impacts through their
CSR. The easiest way to do that is through partnerships with experts, in win-win situations:
hotels deliver their sustainability initiatives with all the related benefits, and the other expert
organizations improve their brand awareness and image amongst hotels’ guests and other
stakeholders. Apart from these commonly tackled Goals, CitizenM, Lefay and Six Senses
chose to focus on different initiatives and Goals in line with their respective missions. By
doing so, these brands follow the priorities set by the UN and nurture the virtuous cycle of
sustainability Goals delivering direct, indirect and induced positive effects.
United Nations Sustainable Development Goals and Corporate Social Responsibility: what’s
next?
Sustainable quality growth. The questions about the role of CSR in hospitality businesses in
relation to the UN SDGs are yet to be fully explored. The answers, however, relate to Goal 8,
decent work and economic growth. Goal 8 can potentially bridge sustainability and
business, nurturing a sustainable future not only for the planet but also for organizations
seeking sustained profitability for long term survival and success. According to the UN,
“sustained and inclusive economic growth can drive progress, create decent jobs for all and
improve living standards” (United Nations, 2020h). 2020 global economy is still
characterized by a “lack of decent work opportunities, insufficient investments and under-
consumption [that] lead to an erosion of the basic social contract underlying democratic
societies: that all must share in progress” (United Nations, 2020h). Economic growth should
grant everyone opportunities in terms of quality jobs that, in turn, stimulate the economies
(Gupta and Vegelin, 2016; United Nations, 2020h). However, the UN do not mention quality
standards for growth. Still, growth should be obtained and sustained without negatively
affecting the positive results that are ensured by other goal progression. Being part of the
virtuous cycle, Goal 8’s quality dimension may be ensured by all other goals. This process
may also work the other way around: if the other 16 Goals are met, Goal 8 will be secured
too, ensuring a continued positive business environment for all operators worldwide. In
other words, to bridge UN Sustainable Development Goals and businesses, Goal 8 should
lead the way.
The circular economy. According to the UN, sustainable growth should “meet the needs of
the present without compromising the ability of future generations to meet their own needs”
(Andersen, 2007; United Nations, 2020o). The current (and possibly the next 10 years’)
production model is not sustainable as it includes the disposal of finite resources (Bocken et al.,
2016; Lüdeke-Freund et al., 2019). After 2030, a tactic to nurture quality and sustainable growth
will be represented by the concept of the circular economy (Kirchherr et al., 2017):
“a regenerative system in which resource input and waste, emission, and energy leakage are
minimised by slowing, closing, and narrowing material and energy loops. This can be achieved
through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and
recycling” (Geissdoerfer et al., 2017, p. 759).
The financial benefits generated by the circular economy may represent incentives for
companies to commit to it, and hospitality companies can play a role. For example, some
luxury brands periodically change their furniture. Instead of just producing waste with the
“old” furniture, it may be re-used by someone else, introducing it into the circular economy.
When this happens, waste is reduced and scarce and precious resources are better used.
Then, if this furniture-transaction example is enacted, financial benefits can accrue for the
WHATT hotel. The circular economy would not only rely on selling old objects to others but provides
12,5 other alternatives as maintenance, reparation, reusage, remanufacturing and refurbishment
(Korhonen et al., 2018). In this scenario, the very last step would be the recycling of the
resource.
As mentioned, organizations make decisions that are motivated by profit potential. After
the UN SDGs, the circular economy may represent the next, great opportunity for hospitality
540 brands. Its adoption would enable hospitality firms to demonstrate good corporate
citizenship delivering positive direct, indirect and induced effects and at the same time
taking advantage of the consequent benefits on their financial statements.
The role of hospitality. The importance of the hospitality industry to the global economy
gives its operators the possibility to make advances on certain under-researched topics and
even to accelerate socio-political approval on complex and complicated sustainable
development challenges. For example, when factual certainty is low, knowledge gaps exist:
hospitality brands could help to fund scientific research on these sustainability-related
topics. This would not only improve publicly available academic and scientific information
but also facilitate choice of the most effective or beneficial initiatives. In addition, hospitality
brands can opt to address the more complicated development challenges: some goals may
not be met because companies do not know how to respond. Creating communications,
showing data and results and mobilizing customers and guests around certain themes could
help in improving socio-political engagement around them.
To conclude, hospitality plays a relevant role worldwide because of its economic and
social relevance: why not carefully and ethically exploit it to advance attainment of the UN
SDGs and nuture the circular economy?
Conclusions
When setting the SDGs, the UN was intentionally ambitious and provocative. Companies
are invited to contribute and develop a better world by addressing these Goals. As a
response to this call, companies are increasingly committing to CSR activities, as well as
focussing on their ultimate purpose of staying in the market and being profitable.
It is interesting to analyze how different companies in the hospitality industry, CitizenM,
Lefay Resorts & SPA and Six Senses chose to align their initiatives with different UN Goals,
and how these choices make financial senses to them. Six Senses and Lefay differ in many
aspects, but they have something fundamental in common. Namely, they strongly benefit
from their CSR as it reinforces their image and respects their mission while attracting more
customers, enhancing guest satisfaction and, in turn, generating more revenue and profit,
improving brand equity. All stakeholders may be satisfied by Lefay’s and Six Senses’
initiatives, as they all benefit from them and from correlated partnerships. CitizenM’s focus
is on new tourists and disruption, but it still developed a meaningful series of initiatives for
its CSR not only with CitizenMovement but also by caring about equality and sustainable
buildings. CitizenMovement may help the brand to improve its profits by reducing costs,
and it attracts guests and convinces them to remain loyal.
Six Senses dedicates a significant portion of its website and communications to
sustainability initiatives, and measurements of results are provided. Lefay regularly
publishes sustainability reports where specific information about projects, key performance
indicators and the status of initiatives are explained in detail. CSR information relating to
CitizenM is not as prominent in terms of quantity. The reason may rely on the fact that CSR
is really core to Six Senses and Lefay, while it may be a tactical strategy for CitizenM, whose
mission and values are not related to sustainability. Still, as it is developing different
initiatives, it may be interesting to analyze them in more depth, if the company publishes-
related information and results. Not many hospitality brands have sustainability at their Corporate
core, but some good practises may be embraced by everyone, no matter the company values, social
the target market and the geographical presence.
These examples were useful to test the win-win outcomes of CSR activities: companies
responsibility
that commit to UN SDGs with CSR not only look to be good corporate citizens but also help
themselves to stay financially sustainable and profitable, pleasing all stakeholders.
After, 2030, when the UN SDGs’ targets will be (potentially and hopefully) met, the
circular economy will represent not only the new way to produce environmental, social and
541
economic effects, but it will make financial sense. Still, not all companies have successfully
committed to the satisfaction of the Goals’ targets to-date, putting at risk the UN agenda’s
success. To incentivize them, greater emphasis should be placed on Goal 8, decent work and
economic growth, and on the role of hospitality, that can set the example and push
engagement and research around simple, complex and complicated challenges. If all those
who participate in global economies commit to the SDGs, the Goals’ virtuous cycle will be
nurtured, sustaining quality and sustainable growth. In turn, macro and microeconomic
environments will improve, with clear financial benefits for all the players that are there,
including corporations and hospitality brands.
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Corresponding author
Virginia Maria Stombelli can be contacted at: virginia.stombelli@gmail.com
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