EVALUATION

OF
CORPORATE
SOCIAL

RESPONSIBILTY IN
WATERFRONT
HOTEL AND CASINO
_________________________________________
A Thesis Proposal Presented to the
Faculty of Business Administration
School of Business and Economics
University of San Carlos
Cebu City, Philippines
_________________________________________
In Partial Fulfillment for the Course
BA109 Business Research
BA106/600-730/MW

Submitted by:
Bitang, Kahlil Florenz Ted

Chin, Kiane
Leyson, Joy Noeleen
Libradilla, Jon Timothy
Lo, Grace
Minoza, Reanne Andrea
Ribo, Andrae Paich
Suson, Cheenie
Chapter 1
INTRODUCTION OF THE STUDY

Rationale of the Study

According to Roberts (2007), that Corporate Social Responsibility (CSR) requires
organizations to demonstrate responsible business conduct that does no harm in the marketplace,
in the workplace, in the community they operate in and to the natural environment. Hotels, which
are primarily a part of the hospitality industry, are often characterized as a labor-intensive,
people-focused service in which frontline employees are critical to the firms success. The
hospitality industry often faces issues that concerns with ethics, sustainability and people
relations. Corporate Social Responsibility in the Hotel industry might be a challenge to perform
because; it often requires people to perform.
In the global context the Hotel industrys efforts to the environment has dominated the
Corporate Social Responsibility activities given that the cost-saving nature of green practices
such as paper-recycling programs, less usage of plastics implementation and installation of selfenergy and water-efficient systems are likely practiced. However, Corporate Social

Responsibility, does not only concern a specific issue like the environment but it also
encompasses other initiatives such as the customers, employees and the society.
Corporate Social Responsibility is linked to the belief that acting as a responsible
organization leads to profitability and good business (Burke & Logsdon, 2008. In the
Philippines, corporate social responsibilities held by hotel corporations are often practiced in the
initiatives of environmental sustainability, social development and the boosting of Philippine
tourism. The Hospitality industry alone contributed 7.8% in the GDP growth of the country
giving the Hotels more responsibility to practice their CSRs.
In growing cities like Cebu, the rise in the Hospitality industry is off the bar and with the
rise of the industry other factors may have had been affected such as the impact in the area, the
people residing in the area, social development and most especially the environment. This study
aims to know the present state of the Corporate Social Responsibility in the Hotel industry in
Cebu city specifically in Waterfront Hotels and Casino.

THE PROBLEM
Statement of the Problem
The study on the current status of the Corporate Social Responsibility in Waterfront
Hotels and Casino in Cebu city seeks to establish the idea of the current state and practice of
Corporate Social Responsibility of the hotel.
Specifically, the study seeks to answer the following questions:
1.) How are the Corporate Social Responsibility of Waterfront Hotel and Casino
practiced?
2.) Characteristics of the Waterfront Hotel and Casinos CSR activities

2.1 Employee-focused
2.2 Environment-focused
2.3 Economy-focused
2.4 Socially-focused
3.) What type of Corporate Social Responsibility is practiced by the Waterfront?
4.) Comparison of Waterfront Hotel and Casinos CSR activities from the recent years:
4.1 Which year did the CSR activities performed best?
4.2 Which activities from the past CSR activities are to be re-designed?

Significance of the Study

This study will mainly benefit the following :
Hotel Industries. They will have the knowledge of the importance being aware of their
external environment.
Customers. They will benefit from the findings of the study by giving them the
information on what best personalized accommodation experience, exceeding their expectations
with the excellence of the best service that the hotel can provide.
Community. They will benefit from the findings of the study giving them the idea to
actively seek and generate prosperity and sustainable development in the communities where the
study is present.
Employees. The employees will like benefit from this study because it will give them an
awareness of the how the Corporate Social Responsibilities of their organizations are being
implemented and will likely encourage them to fully participate in any activities their
organization.

Environment. The study will actively benefit the environment by contributing to

preserve the environment and landscape monitoring the impact of the business and promoting
awareness about sustainability among our stakeholders.

DEFINITION OF TERMS
For better understanding and knowledge about this study, a concrete definition of terms is
being provided.
Corporate Social Responsibility involves achieving commercial success in ways that
honor ethical values and respect people, communities, and the natural environment (Clark,
2006; Porter & Kramer, 2006). There is no universally accepted definition of Corporate Social
Responsibility, but most of the definitions have to do with business having a positive impact on
the community (Redford, 2005) and meeting or exceeding public expectations of good corporate
citizenship (Brands that do good, 2003).
Gross Domestic Product (GDP) It is the broadest quantitative measure of a nation's total
economic activity. More specifically, GDP represents the monetary value of all goods and
services produced within a nation's geographic borders over a specified period of time.
Hotel

and

Lodging

sector

is

generally

classified

into

six

categories:

luxury hotels, upper-upscale, upscale, upper-midscale, midscale and economy (Miller et

al, 2013). Upscale is sometimes categorized as part of luxury hotel sector as well (World
Luxury Index, 2013)

Hospitality industry is a broad category of fields within the service industry that
includes lodging, event planning, theme parks, transportation, cruise line, and additional fields
within the tourism industry.
Tourism is a travel for pleasure; also the theory and practice of touring, the business of
attracting, accommodating, and entertaining tourist, and the business of operating tours.
Casino is a facility which houses and accommodates certain types of gambling activities.
They are most common built near or combined with hotels, restaurants, retail shopping, cruise
ships or other tourist attractions.

Chapter 2
THEORITICAL BACKGROUND

Review of Related Literature

Geoffrey P. Lantos reviewed the CSR literature and redefined CSR by classifying it as
ethical, altruistic, or strategic. Ethical CSR is mandatory and means that a firm must obey all
laws and avoid doing harm as a result of its business. This could include harm caused by
pollution, faulty products, and unfair labor practices. Good laws and governmental policies will
often alleviate ethical CSR problems (Lantos, 2002).
While the hospitality and tourism industry arose through the growth of capitalism,
freedom and tentative relations to geographic areas, which increased the need for travel
accommodations (Sandoval-Strausz, 2007), the luxury hotel industry has progressed as an
outlet for travelers to dream of and fantasize about other lifestyles (Curtis, 2001). It is for
this reason that the luxury hotel industry places a large focus on the guest experience
along with their satisfaction. That is, luxury is more of an experience than a product.
Shah, Bhaskar (2010), has taken a case study of public sector undertaking i.e. Bharat
Petroleum Corporation Ltd. in their research work. The research has discussed that there is a
broad relationship between the organization and society. Organization has its existence only with
the society. Organization used the resources/inputs of the society like material and human etc. In
reverse, the organization provides services to the society. From the case study of the BPCL, it
was found that company has taken a lot of initiatives in order to serve the society.
Mc William & S. Seigal (2010) provided the importance of CSR as a strategy of
enhancing reputation of companies. The study indicated that firms selling convincing goods
which comes under the umbrella of CSR activities, leads to consumer loyalty and increased

revenue. Further the study also indicated the importance of advertising for providing information
to consumers.
Barbara Talbott (2004), former Chief Marketing Officer of Four Seasons Hotels,
suggested that there are four key factors that contribute to a luxury hotel experience; style,
comfort, service, and pampering. In this way any hotel, either chained or independentlyowned,
rated or non-rated, can be considered as a luxury one as long as it suffices
whatever is required in the four dimensions and the four key factors.
According to Carroll (1983), corporate social responsibility involves the conduct of a
business so that it is economically profitable, law abiding, ethical and socially supportive. To
be socially responsible then means that profitability and obedience to the law are foremost
conditions when discussing the firms ethics and the extent to which it supports the society in
which it exists with contributions of money, time and talent (p.608).
Regina Anaejionu said that CSR is a corporations obligations to its stakeholders, which
are any groups/people that have a stake or interest in a companys success and products. This
includes customers, employees, suppliers, investors and communities surrounding the business.
(Werther & Chandler 2006, 6) CSR has also been referred to as corporate
responsibility, corporate citizenship, corporate community engagement, community
relations, corporate stewardship or social responsibility
According to Maignan and Ferrell (2004), there are two main motivations of
organizational CSR activities concerning stakeholder-relations: the first one is the instrumental
approach. As companies rely on stakeholders for their continuous support or providing resources
(Barney 1991), managers have to consider the claims and needs from stakeholders. The other one
is from the moral perspective, as Donaldson and Preston (1995) argue that all persons or groups

with legitimate interests participating in an enterprise do so to obtain benefits and [ :::] there is
no prima facie priority of one set of interests or benefits over another (p. 68).
Gond, Crane (2008), made an analysis on the distortion of corporate social performance
concept. The research analyzed that the past researches and found some reason of emerging fall
in the interest of corporate social performance research among the scholars. The paper also
suggested models on the basis of which the researcher explained that why the CSP concept has
lost its importance and development. Further, the researcher depicted some model which the
researcher can used in their research related to corporate social performance. The paper argued
that tensions and contradictions are the starting point to develop the CSP concept. CSP has an
umbrella of activities which need to measure differently in order to move the researches from a
simple concept to development.
Truscott, Bartlett, Trwoniak (2009), paper The reputation of Corporate Social
Responsibility industry in Australia in Australian marketing journal, based on case study
methodology. On the basis of the interview of key persons of industries in Australia, the term
CSR has been explained. The industrialist revealed that CSR increasingly has become
significant. They shared their views of CSR in economic, legal and ethical roles of business in
society. Beside this, the industrialist viewed CSR as a model of corporate reputation.
Hartman (2011), article Corporate social Responsibility in the food sector in European
review of agriculture economics journal, analyzed the importance of CSR in food sector,
particularly those companies which have high brand. CSR is an important part of these
companies. But SMEs are less capable in discharging their obligation towards society. Further,
the research found that food sector always tries to improve the controlling and discharging its

services towards consumers. Consumers also prefer those brands or food firms which give
preference to CSR activities and provide good product and services.
Agunis, glovas (2012), Paper entitled what we know and dont know about corporate
social responsibility: A review and research agenda in Journal of management, based on 588
journal articles and 102 books. The study provided a framework of CSR actions which affects
external as well as internal stakeholders and outcomes of such actions. The paper also enhanced
the knowledge regarding levels, forms of CSR; need to understand CSR with outcomes etc.
further the researcher also suggested a framework of research design, data analysis and
measurement for future research of CSR.
CSR activities have found to positively influence attitudes and behavior of employees,
who are considered critical internal stakeholders (e.g., Clarkson, 1995; Kim et al., 2010)
Although there are many definitions of CSR exist, they commonly refer to the relationship
between businesses and society, which denotes firms actions to balance financial performance,
impacts on society and the environment. These corporate activities are often voluntary and/or
beyond legal obligations (Carroll, 1999; McWilliams and Siegel, 2001)
The first definition of CSR is suggested by Bowen (1953), as the social obligation to
pursue those policies, to make those decisions, or to follow those lines of action which are
desirable on terms of the objectives and values of our society.
Marketing scholars started to consider CSR issues from 1960s and they only emphasized
on the social obligations related to marketing functions, without thinking of other aspects of CSR
activities.
Stakeholders refer to individuals or groups who have or claim, ownership, rights, or
interests in a corporation and its activities (Clarkson, 1995, p. 106)

(cited in Wood, 2010). The origin of CSR can be traced back to at least three sources,
indicating the long illustrious history of this topic: Dodds (1932) argument for firms
responsibility toward society beyond shareholders (cited in Cochran, 2007), Bowens (1953)
book Social Responsibilities of businessman (cited in Carroll, 1999) whom Carroll (1999)
called, the Father of Corporate Social Responsibility (p. 270), or Boundings general systems
theory in regards to CSR Measurements .
Corporate social responsibility is an evolving concept that currently does not have a
universally accepted definition. CSR is understood to be the way firms integrate environmental,
social and economic concerns into their values, decision making, strategy and operations in a
transparent and accountable manner and thereby establish better conducts within the firm, create
wealth, material and improve society (Michael Hopkins, 2011)
CSR has become an important matter for businesses, in recent years, in the wake of
global problems such as climate change, the depletion of natural resources, supply chain issues,
coupled with financial scandals and economic crises. Annual industry surveys (e.g., Kiron, et al.,
2013; PricewaterhouseCoopers or PwC, 2011) reported that managers now recognize CSR and
sustainability as essential for strategic operations, innovations, and talent management. Similar
to Kiron et al. (2013) emphasized, Sustainability is both a business necessity and an opportunity
(p. 12), PwC contended, Corporate responsibility is not an altruistic nice-to-have, but a business
imperative (p. 121). CSR is not a recent phenomenon for the lodging industry. In fact, the
American Hotel and Motel Associations Code of Operating Practices emphasized ethical and
responsible operations since the 1970s. However, faced with the global challenges, particularly
in recent years, many hotels have begun practicing various CSR activities. For instance, in an
extensive review of company reports, websites, and literature, Levy and Park (2011) identified

129 CSR activity items currently practiced by 10 hotel companies with the largest number of
rooms in the world.
These variety of CSR activities reflect the concepts multi-dimensionality, often
categorized by the aspects of responsibilities, or structural principles (Wood, 2010, p. 50)
economic, legal, ethical, and discretionary (or philanthropic) responsibilities (Carroll, 1999;
Wood, 1991, 2010). These were then categorized based on to whom (stakeholders) the firm is
responsible. Stakeholders refer to individuals or groups who have or claim, ownership, rights,
or interests in a corporation and its activities (Clarkson, 1995, p. 106) and thus can affect or are
affected by the achievement of the organization's objectives (Freeman, 1984, p. 46). Depending
on the groups relationship with the firms survival as a going concern, they can be either
primary stakeholders such as customers, employees, community, government, or secondary such
as activists (Clarkson, 1995)
According to the Department of Educational, Department of Business
Management in Payam Noor University, The concept of corporate social responsibility
constantly adapts to the needs of global business. Given the recent development of corporate
social responsibility and sustainability ideologies, along with methodologies and criteria used to
meet the standards of a responsible company. However, a specific connotation of corporate
social responsibility (CSR) has not been unified, though the norms and standards related to CSR
are developing now. There is a growing interest in social responsibility of the corporations
among academicians and practitioners. Companies now are not only expected to be responsible
to their shareholders but to society in general.
Based on the discussion of marketing and stakeholder-relation management in the CSR
area, more and more scholars value the examination of CSR issues from the integrated strategy

aspect (e.g., Baron 1995). For instance, Maignan and Ferrell (2004) point that organisations act
in a socially responsible manner when they align their behaviours with the norms and demands
embraced by their main stakeholders (p. 6) and they illustrate a framework to analyse the
antecedents and outcomes of organisational CSR behaviour from major stakeholder perspective.
Aguilera et al. (2007) produce a figure to explain during the social change process, the role of
stakeholders, stakeholder-company relations, and how stakeholders influence organisational
strategy through the mechanisms. McWilliams and Siegel (2011) observe that CSR which is
embedded in an integrated strategy may be labelled strategic CSR. From the resource-based
A speech delivered by Mr. Fredrick Ma, secretary for financial services, based on
Corporate Social Responsibility (2004) organized by the British consulate. The speaker explored
the concept of CSR on the basis of survey of 1500 business leader attending the world economic
forum in bevos. In which 5% leaders said that CSR is important for the success of business,
while 24% said CSR is not important but the shareholders interest is most important for the
businesses. But for the speaker, CSR and corporate governance are complementary to each other.
Corporate governance is a medium of driving CSR among corporate. Further the speaker also
talked about the role of government in CSR, SMEs as well as for unlisted companies. It was
also included in their views that CSR should be a part of companys objective.

Theoretical Framework
The concept of corporate social responsibility can be defined in various ways and may
have very different meanings. It seems that consistent terminology is yet to be developed,
because the definition of CSR varies from one to another. CSR may be referred as corporate
responsibility, social responsibility, community relations or community engagement, all

of which pertains to the ability of the company to operate without doing harm in the different
initiatives. There have been responsibilities that a company must perform to ensure the
companys growth without compromising posterity. This study aims to know how Waterfront
Hotel and Casino implement CSR in its different initiatives such as in Social Development,
Environmental Sustainability and in the Philippine Tourism and Arts.

Figure 1: Theoretical Framework

Conceptual Framework
The main concept of this study was to evaluate the CSR programs of Waterfront Hotel
and Casino. Furthermore, the study also investigates the implementation of Waterfronts CSR in
lieu to the relationships between the concepts of CSR and the performance of the company to the
actual practice of the activity.

Figure 2: Conceptual Framework

Chapter 3
RESEARCH METHODOLOGY
A descriptive evaluation shall be utilized for this research project making use of
subjective methods such as interviews and observations to collect primary and relevant data.
These interviews shall be conducted within the hotels premises and be able to gather data that
are of the company. A qualitative approach is applicable here due to the varying Corporate Social
Responsibility activities that the hotel is practicing. Upon collecting the qualitative data derived
from said interviews and access to archives of the hotels CSR activities, careful analysis shall be
done to know how to best analyse the given data.
Research Environment
The research is conducted mainly in Waterfront Hotel and Casino, elite in the Hospitality
industry in Cebu City. Waterfront Hotel is located at Lahug, Cebu City. Secondary studies are
also being held in the particular Baranggays which are affiliated and are a beneficiary of the
hotels Corporate Social Responsibility projects.

Research Respondents
The respondents of this study are the employees engaged in the companys Corporate
Social Responsibility (CSR). Beneficiaries of the said activities are also part of the research
respondents.
Research Instruments
The main tool used in this study was the access of data archives from Waterfront Hotel
and Casinos CSR activities. A set of questionnaires was also made for additional data.

Research Procedures
Gathering of Data
The data that has been used in this study were primary data that was acquired through an
interview and an access of the archives from Waterfront Hotel and Casino. Some of our data
were acquired through observation in areas that are affiliated to the Corporate Social
Responsibility practices of the hotel.
Treatment of Data
All data gathered were treated with confidentially. From the questionnaire, the
demographic data and the archives of the past Corporate Social Responsibility activities held by
the hotel. The Scale Method is used to interpret the collected data and a thorough.

Scope and Limitation

This evaluation was conducted to determine the Corporate Social Responsibility (CSR) in
Waterfront Hotel and Casino. To enhance our understanding about internal mechanisms of how
CSR activities work among employees, future research should extend for this study to examine
potential relationships among other variables relevant to the organization. Future research can
be included on CSR definition, conceptualization and practices in the hospitality and tourism
sector. Studies should collect data from hospitality organizations and potential shareholders via
interviews and surveys.