Customer’s Perception of Environmental CSR Activities in HotelsPresented by:

Sally KiranaPhoebeCJ LimMervin

Outline• Problem Statement• Objectives• Environmental Issues• Concepts of CSR• Awareness of Hotels regarding CSR• Customers Perception• CSR activities by Hotels• Customer Perception on CSR Activities by Hotels

Problem Statement

• Low awareness and participation of hotel guests on the CSR

program from hotels

Objectives

• To study the customers’ awareness of CSR done by hotels.

• To identify the actions that has been taken by hotels regarding

CSR – environment section.

• To study the reaction and perspective of customers regarding

CSR – environment section.

Environmental Issue

• Wastage

• Deforestation

• Energy Consumption

Concept of Environmental CSR

• “Businesses or organizations that are responsible to go beyond

legal requirement to make a positive impact on society and the

environment through their management” (OWW Consulting, 2010)

• According to Welten (2012), CSR is the silent revolution going on

and others call the whole thing a total hypocrisy.

• "A concept whereby companies integrate social and environmental

concerns in their business operations and in their interaction with

their stakeholders on a voluntary basis" (European Commission,

2010)

Awareness of Environmental CSR• Customers are looking for companies to present them with purchasing

decisions which can be taken without compromising the future (Baker, M.

2012).

• 76 percent of consumers report a willingness to pay more for a product

from socially responsible company and over half are willing to pay 6 percent

or more (Hopper, C 2010).

• Customers who paid more for the products and services have the rights to

demand what they want, and they expect more efficient environmental

solutions (Francoise Quairel-Lanoizelee, 2011)

Customer Perception

• Hospitality industry seems to have increasingly responded

positively to the implementation of CSR, because of the

perception that customer have on the meaning of being

responsible. Therefore, they have started to turn their

organization to more ethical practices as it is desired (A K,

2011).

Environmental CSR activities by Hotels

• Marriott set out specific steps the company can take in five key

areas: water, waste and energy; supply chain; green buildings;

helping protect the rainforest; and employee and guest

engagement (Just means, 2010).

• Berjaya hotel’s CSR program focuses in biodiversity

conservation such as coral reefs around Malaysia. The Berjaya

Hotels & Resorts hosts a bi-yearly CSR awareness program

(Just means, 2010).

Environmental CSR activities by Hotels

• Minimizing the use of materials that may be

harmful to the environment

• Providing appropriate environmental training for

employees

• Raising awareness of environmental issues

amongst all of its employees, partners and

suppliers

(Jones, P., Comfort, D. and Hilliter, D. 2006).

Customers’ Perception• There is a strong connection between the ethical behavior of

the companies and customer’s purchasing decision

(Cristache, Micu and Eliza, 2010).

• More than 75 percent of consumers say that it is important

for companies to be socially responsible as according to

Burson-Marsteller

• And 38% of respondents will spend the same or more for

products and services from socially responsible companies

Customers’ Perception

• According to Mr. Ikram (2012), people nowadays more aware of the

environmental issues, especially, climate change. Therefore, most of

them are likely to support the hotels which implement

environmental CSR program.

• Berjaya UCH students (2012) who are knowledgeable about CSR,

stated they don’t even aware of the hotels doing CSR if they don’t

provide a sign of practicing that kind of program.

Findings

• The purpose of doing CSR is to enhance customer confidence

and trust in the hotel brands.

• Hotels have been practicing CSR toward climate change to

build reputation, reduce cost and gain profit on it.

Findings

• Customers’ perception differs depending on the individuals

because of the knowledge and point of view of CSR.

• Doing environmental CSR is not the only key factor to get

customers’ purchasing decision- needs a combination of both

service provided and implementing of the “green practicing”.

Recommendation

• Create employees awareness about CSR is essential.

• Doing CSR marketing.

Conclusion

• CSRs have been practiced in a great number of sector

business, especially in Hotel sector.

• Problem: low awareness and participation of customers.

• Doing CSR brings benefits to hotel organization.

References• Baker, M. (2012). Corporate social responsibility. [online] Available at:

http://www.mallenbaker.net/csr/Environment.html [Accessed: September 16, 2012]. J• Berjyaya UCH students (2012). Customers' perception on environmental CSR in hotel sector.

Interviewed by Sally Kirana and Dao Ngoc Nga [in person] Berjaya University of Hospitality, September 20, 2012.

• Cristache, N. et al. (2010). The analysis of the customers' perception on CSR - tridimentional approach - cultural, economical and social. [e-book] Economics and Applied Informatics. p.314

• Hopper, C. (2010). Corporate social responsibility in Hospitality industry. [report] p.4. • Ikram (2012). Customers' perception on environmental CSR in hotel sector. Interviewed by Sally

Kirana [in person] Berjaya University of Hospitality, September 20, 2012.• Jones, P. and Comfort, D. (2006). Reporting and reflecting on corporate social responsibility in the

hospitality industry. 18 336. • Laura P. Hartman and Joe DesJardins, (2011). 'Business and Environmental Sustainability'. In: (ed),

Business Ethics: Decision Making for Personal Integrity & Social Responsibility. 2nd ed. New York: McGraw-Hill. pp.48

• Marsteller, B. (2010). The 2010 Corporate Social Responsibility Survey. Burson-Marsteller, [blog] March 29, 2010

• Vijayaraghavan, A. (2010). CSR and Hotels. CSR Blogs, [blog] December 20, 2010, Available at: http://www.justmeans.com/CSR-Hotels/40633.html [Accessed: September 19, 2012].