Essay

1713 Words May 15th, 2014 7 Pages
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Zilic and Dulcic (2012) explains the relationship between corporate social responsibility and the organization efficiency in high-class hotels. They use a table to clearly state that hotel profitability is in the highest correlation with environmental protection activities, and hotel efficiency is in the highest correlation with working conditions. What’s more, Zilic and Dulcic (2012) present that with continuous improvement of the hotel products and services, hotel processes are enriched and its consumers feel satisfied.



It is possible to hypothesize that if a company is producing products that are harmful to society, it may be charged with failing to keep socially responsible. However, Hellsten and Mallin (2006) argue that people cannot think of a company is without controversy because some activities may pollute environments and perceptions differ across individuals and cultures. People also have different beliefs on what benefits, and what does not benefit society. Few firms can be considered non-controversial in all aspects. For example, legal medicines can save lives, however, some criticisms of ‘big pharma’ for its impact on prescribers and comments on drug efficacy. (Schwartz 2003) The discussion is limited to the areas such as tobacco, alcohol and gambling, which are controversial, but are legal here.



Numerous studies emphasize the importance of corporate social responsibility in controversial industry sectors. Cai, Jo, and Pan (2012) find stocks from
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