Corporate Social Responsibility Functions - Essay Example

Corporate social responsibility is the continued commitment by a company to behave ethically and contribute economically while looking into the welfare of its workforce, shareholders, the environment, and the improvement of the lives of the communities around them.  A second definition is the impact of a person’s (resorts inclusive as legal persons) actions on society or system. The person is held accountable for his or her actions. A third definition says that CSR is the commitment by a firm to pursue social objectives that are above and beyond its economic and legal obligations. This is done by focusing on social responsibility, environment, and financial issues. Some firms will, therefore, do it or ignore it together depending on their objectives. CSR functions are handled by the marketing or operations departments. Kotler (2010, p 12)

In the private sector, competition is stiff. Firms seek to maximize profits, market command, presence, and firm value. CSR is advantageous in that a firm applying it holds an upper hand over others. This is as much as it was geared towards the improvement of the stakeholders’ welfare can also be used by the firm as a marketing strategy. The resort concentrates on ensuring that everyone around them is happy and at peace with their operations thereby providing a healthy working environment. CSR also works towards increasing the awareness of clients about the firm. These bring with it new and return clients who bring in profits into the resort. It also attracts investors. The firm will grow and become acceptable and earn a lot of value in terms of goodwill and government support due to their taking care of some national goals. As a result, they become a sound investment. Credit lines become open and available for them from the bank and nonbank institutions and suppliers. This reduces their cost of production also aids in their expansion of operations internally and geographically.  Kotler (2003, p. 124)

In the travel and tourism industry where the product, leisure, is homogeneous and tourist attraction sites static, the organizations need to go the extra mile and make attractive packages for their stakeholders. This is mainly done in the marketing, human resource, and operations/events departments simultaneously. The marketing departments will be responsible for the external forces and society around the premises. This is achieved by addressing environmental and social needs. Many firms have green policies. Legally, they are statutorily required to take care of the environment. Therefore, environmental management is not entirely CSR.

Other CSR avenues explored include taking part in social activities such as sponsoring sports and games e.g. motor shows and marathons whose collections are geared towards charity or other social needs. They can also provide solutions to problems affecting the communities such as the need for recreational facilities. As a travel and tourism resort, the firm can use its resources and networks to provide the community with social recreation centers such as parks or shopping centers that include gaming centers and souvenir shops for art lovers. Resorts are mainly located away from the busy city life. To access them as a tourist, there is a need for reliable transport. This is by road or air. Road transport is primary. The management constructs feeder roads to join the resort from the main roads. This infrastructure opens up the local community for economic activity.  As the resort grows economically, so does the community via trade. The travel firm can also offer transport facilities to the community in cases where the resorts are located in rural areas. Others can construct community schools and hospitals or donate funds to aid their operations. Internally, management can put in a child care center where working parents. The employees can be provided with benefits packages such as insurance policies, subsidized leisure packages such as family holidays, and transport allowances.  Sarova Hotels offer their employees benefits packages such as the above. This has strengthened their employee retention capacity as well as attract highly skilled professionals to the hotel and its resorts. Shareholders can be treated to holiday packages, especially in the tourism and travel industry. This gives the impression of value for their investment.

The staff feels free to communicate their grievances to their superiors. The issues are appropriately addressed since the management looks into their employees’ welfare. A healthy and content workforce leads to efficient production. The shareholders will have the value of their investment growing as the proceeds and ratings of the firm grow. They will be compelled to invest more in the CSR-focused firm. This gives the firm an edge over other firms that overlook or underestimate the value of CSR.

All the above considered, the benefits overweigh the costs if the CSR activities are properly addressed and there is management commitment and longevity in the long horizon of CSR projects. Kotler (2008, p. 458)