Corporate Social Responsibility in the Tourism Industry: the Case of Lanzarote Island

5 
INTRODUCTION 
Whether the intention is to live in a better world or merely promote their own brand image, 
many corporations nowadays believe in the importance of Corporate Social Responsibility as a 
new and socially accountable business model. Whatever the motivation, the outcome is 
arguably one that makes a substantial difference. 
The choice to examine this topic as the subject of my thesis sprang from a pressing awareness 
of CSR
1
 practices as an emerging field of study, now an integral aspect in the performance of 
most big multinationals. 
Effectively, my first real exposure to the matter was through my recent internship experience in 
a big hotel chain in Lanzarote, a small island located in the Canary Islands. Even though the 
resort seemed to be oriented towards the best of sustainable practices, I learnt that the 
management of substantial infrastructures can be insidious and may very well cause damage to 
the detriment of the surrounding environment. 
Nevertheless, I also understood that such responsible measures can also be pursued at an 
individual level and the inhabitants of the archipelago are the living proof of such new attitudes 
and behaviour. When exploring the Canaries, visitors may immediately perceive the great care 
and effort that local inhabitants dedicate to the protection and conservation of their territory. 
The Lanzaroteños
2
 are actually strongly environment-oriented and very proud of their origins; 
on closer observation, I came to the conclusion that positivity and cooperation are crucial 
aspects to the enactment of sustainability programmes. 
It was right there, in that amazing piece of land far away from the mainland, that I found 
inspiration and began to reflect on urgent, pressing issues capable of jeopardising our society. 
Until this year I had never really wondered about the meaning of CSR or what it might entail. 
However, I became more sensitive to the matter and I realised that many corporations really 
care about the impact that their business activities may create, while others make empty 
declarations and promises. 
While working, I met people who share the same perspectives as me, with whom I exchanged 
ideas about the hotel's general framework and the current conditions on the island. This cultural 
exchange led me to notice that Lanzarote is still far from being a fully sustainable destination, 
even though it was declared Reserve of the Biosphere in 1993. 
 
1
The Anglo-Saxon acronym of Corporate Social Responsibility. 
2
Spanish nomenclature to indicate the inhabitants of Lanzarote.
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Acting responsibly is, sadly, still perceived as an obligation, rather than an intrinsic sense of 
duty. Nonetheless, I feel motivated to examine such issues at depth, since environmental 
responsibility is of the utmost concern to me. In addition, I would like to suggest solutions to 
be envisaged for future improvements. 
The recurrent theme present in my work ranges over the general context towards a specific 
instance, starting out with a theoretical analysis of the concept, applied thereafter to the focal 
point of this case study, with confirmation at the end by the conclusions reached. 
In the first chapter, I will illustrate the concept of CSR from a notional point of view.  
It is definitely important to understand the origins of the subject, its developments and why the 
concept is gaining so much popularity. In actual fact, most people imagine that such a business 
model can only be applied to big corporations, considering their strong impact on any given 
environment. On the contrary, it is clearly possible to undertake certain initiatives and transform 
daily routine into proactivity both as single individuals and international enterprises. 
Even though the commitment of a single person or entity might seem small and insignificant, 
the contribution as a whole and the sum of their actions can sometimes bring substantial 
improvements. 
Subsequently, I applied CSR theories to the tourism industry in the second chapter. 
Originally responsible behaviours developed and evolved in company contexts, whereas 
application to the hospitality industry is still in the early stages. Therefore, I have endeavoured 
to understand whether CSR measures could be suitable for island destinations, as given their 
remoteness, they risk being left in oblivion. 
Lastly, after a brief report on the island of Lanzarote, I dedicated the third chapter to a 
description of my work placement details and to an objective review of my overall experience. 
I discovered first-hand that, despite the existing strict measures, this territory desperately needs 
greater action and intervention by citizens, workers, governments and business entities. 
Undoubtedly, CSR measures have already been undertaken, but further, more stringent 
application is required to improve the residents' quality of life. 
The aim of the present work is not, however, to criticise those businesses that fail to comply 
with sustainable practices. My real objective is to introduce Corporate Social Responsibility to 
whoever may be unaware of its existence or intent as well as provide further in-depth analysis. 
I wish to demonstrate that by means of simple precautions, it is possible to overcome many 
pressing issues caused by our negligent, indulgent society. These can be applied not only to 
environmental purposes, but also to the respect for human rights and on ethical fronts. 
I really trust future generations, I feel that the agenda is moving forward.
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CHAPTER ONE 
CSR: A REVOLUTIONARY BUSINESS STRATEGY 
 
1.1 CORPORATE SOCIAL RESPONSIBILITY: A GENERAL OVERVIEW 
The planet hourglass leaves us few years within which to prevent irreversible changes. The 
pressing globalization process continues to undermine the fragile balance of our ecosystem to 
an alarming extent. However, awareness of these hazards and risks is not only worrying for the 
young and future generations but also requires considerable commitment on behalf of economic 
agents at a global level. Myriad organisations constantly rank the activity of corporations, while 
society has become much more sensitive to what is happening.  
This reality is confirmed by the role of the consumer, since his choices are no longer related 
exclusively to the cost-benefit ratio of the product or the service offered; there is a new tendency 
to evaluate brands according to global values, which may involve ethical, political and moral 
considerations. The consumer is often oriented towards a product for reasons of belonging, 
rewarding a company or a public entity when social, ecological and political outlooks are 
shared. As a result, a new concept has gained legitimacy in economics studies all over the world: 
the Corporate Social Responsibility. 
 
1.1.1 DEFINITION AND OBJECTIVES  
CSR emphasizes the "ethical component of entrepreneurial activity and creates with appropriate 
tools a series of pre-conditions aimed at creating value, which guarantee an objective balance 
in the relationship between company and society” (Favotto F., Bozzolan S., Parbonetti A., 2016, 
page 187).  
In simple terms, business is sustainable when it lives up to the "triple bottom line" of economic 
prosperity, environmental quality and social justice. Capitalism can be the solution to the  
current sustainability crisis, in the same way that it is its cause (Elkington J. in Cannibal with 
Forks, 1997, page 402). 
It is not easy to provide a universal definition of the concept, so it seems reasonable to examine 
why it has emerged as a priority for managers. CSR conveys four main arguments: 
1. the desire to avoid negative reactions, such as consumer boycotts, press criticism, 
protests organized by NGOs and collective movements. Companies feel the duty to 
follow moral obligations;
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2. within the framework of its own administrative, managerial and commercial strategies, 
the affirmation of CSR can guarantee a direct economic value, such as improved 
reputation, greater satisfaction, employee involvement and the ability to attract quality 
human resources and new investors;     
3. in terms of sustainability, corporations are required to keep their impact on the 
environment and local communities to the minimum; 
4. due to the progress of communication technologies, companies are required to account 
for their actions, both in terms of condemnable practices (fraud, corruption, misleading 
advertising, indifference to safety standards, etc.), and on the scale of the so-called 
"external diseconomies" (energy waste, environmental degradation, unemployment, 
etc.). 
Before dwelling on the analysis of these practices and focusing on the adoption of a specific 
CSR tool, it is appropriate to mention the genesis of this concept to understand its complexity. 
 
1.1.2 EVOLUTION OF THE CONCEPT 
The debate on social responsibility regarding the work of companies has arisen in the last few 
decades: this discussion has become the theoretical basis of concrete applications conducive to 
more responsible decisions by an increasing number of companies and organizations.  
This concept emerged in the United States between the 1930s and 1950s when new schools of 
thought began to see the role of manager as one imbued with social obligations. 
These currents of thought laid the foundations of an intricate subject later to be developed in 
Europe. A new conception of “company” began to germinate, whereby it is no longer  
considered an isolated entity but something, given its choices, harmonious with the surrounding 
environment and society. 
Although ethical accountability was initially the responsibility of the manager, it would shift in 
some twenty years to the enterprise itself; thus, the concept of Corporate Social Responsibility 
was born. 
Fundamental to subsequent developments on the subject were Carroll's theories
3
, who in the 
1970s created a pyramid of priorities that companies had to bear in mind in the pursuit of their 
goals and conduct. Accordingly, economic responsibilities are placed at the base of the  
 
3
 Archie B. Carroll is professor emeritus of management in the Terry College of Business, University of Georgia 
in the United States of America. He has been the first to introduce CSR concept in management teaching (1979). 
Carroll theorized the so-called “pyramid of Carroll”, which represents new responsibilities that every company 
should undertake.
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pyramid, as one of the company's main priorities, followed by the responsibility to meet legal 
obligations, to act ethically and morally. He believed that in socially responsible companies all 
these aspects must emerge; whereas the maximization of profit and respect for the law had 
always been essential, equitable and ethically correct behaviours were to become equally  
fundamental. 
The concept of Social Responsibility developed from the Stakeholder Theory propounded by 
Freeman in the 1980s. However, this current of thought was harshly criticised as it defined a 
new positive interaction between the company and those who have an interest in it. (see  
paragraph 1.2.2).   
Contemporary to the Stakeholder Approach are the Business Ethics studies. Unlike the former, 
the latter focussed on moral and ethical values as critical to corporate behaviour. In Italy, it was 
Lorenzo Sacconi
4
 who made the major contribution to this discipline, defining business ethics 
as "the study of the set of principles, values and ethical rules that govern (or should regulate) 
economic activities”. Business ethics studies have contributed significantly to the development 
of the theme, and led to the emergence of two distinct CSR orientations: the "strategic" vision 
(which provides certain advantages, both economic and reputational, given by the pursuit of 
social goals) and the "ethical" vision (which considers as duty of the company acting with  
respect to each subject, even if not necessarily advantageous).  
Stakeholder theory and business ethics studies have therefore laid the foundations since 
the1990s, for thorough analysis of the subject. All these considerations have been fundamental 
for the development of CSR, but nowadays the definition given by the European Commission 
in the Green Paper (2001)
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 is considered to be the most reliable. EU defined Corporate Social 
Responsibility as “the voluntary integration of the social and ecological concerns of companies 
in their commercial operations and their relations with the interested parties”. It was precisely 
this definition that brought the consumer to the centre of attention. The latter plays an  
increasingly essential role in redefining the principles to be followed by a company.  
However, other than recognition of the human element, businesses are required to become 
transparent, though the communication of its values can be a real challenge. 
 
4
 Lorenzo Sacconi is professor of economic policy at the University of Milan. He is also Director of the  
inter-university centre EconomEtica, president of the Italian Society of Law & Economics and member of several 
international scientific associations. Since he was among the founders and president of the Italian Network of 
Business Ethics, he contributed to the drafting of the ethical codes of various Italian and multinational companies 
and business associations. 
5
 Published in Bruxelles, the Green Paper concerns a set of documents issued by the European Commission to 
stimulate discussion on given topics at European level. They invite the relevant parties (bodies or individuals) to 
participate in a consultation process and debate on the basis of the proposals they put forward.