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IJRMEC

Volume3, Issue 5(May 2013)

ISSN: 2250-057X

CORPORATE SOCIAL RESPONSIBILITY (CSR) IN HOSPITALITY INDUSTRY WITH SPECIAL REFERENCE TO MCDONALD: A MEASURE OF CONSUMER LOYALTY
Dr. Shaukat Ali* Associate Professor & Head ,Department of Commerce, Akbar Peerbhoy College of Commerce & Economics ,University of Mumbai- Mumbai.

ABSTRACT
CSR is becoming a fast-developing and increasingly competitive field. The case for Demonstrating corporate responsibility is getting stronger as expectations among key opinion makers, customers and the public are changing. It is becoming hugely evident that organizations that pay genuine attention to the principles of socially responsible behaviour are finding favour with the public and are the preferred choice for their goods and services. Corporate Social Responsibility (CSR), can be described as, the continuous commitment by corporations towards the economic and social development of communities in which they operate. In India CSR is in a very much budding stage. A lack of proper understanding, inadequately trained personnel, misplaced policies affect effectiveness of CSR programs. Large no. of companies are undertaking these activities superficially and promoting/ highlighting the activities in Media in the very casual way. In this paper an attempt has been made to analyze the essential changes in concept of corporate social responsibility and the new innovative practices being applied for its performance in India, This paper focus on new ways & means to overcome the challenges faced by CSR activities & impact on consumer in India & also its positive impact on consumer loyalty. Keywords: - CSR, Corporate Social Responsibility, Service sector, consumer loyalty.

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IJRMEC INTRODUCTION

Volume3, Issue 5(May 2013)

ISSN: 2250-057X

Corporate Social Responsibility (CSR) is viewed as a comprehensive set of policies, practices and programs that are integrated into business operations, supply chains, and decision-making processes throughout the organization -- wherever the organization does business -- and includes responsibility for current and past actions as well as future impacts. CSR involves addressing the legal, ethical, commercial and other expectations society has for business, and expects creation decisions that reasonably balance the claims of all key stakeholders. Effective CSR aims at achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment. Smart CSR behaviour can benefit in numerous way such as It attract green and ethical investment it attract ethically conscious customers. it can lead to reduction in the cost through recycling It differentiate firm from its competitor & can be source of competitive superiority.

CSR typically includes issues related to business ethics, community investment, environment, governance, human rights, the marketplace and the workplace. In this age of widespread communication and growing emphasis on transparency, customers of any product or service are unlikely to feel satisfied in buying from an organization that is seen to violate the expectations of what is deemed to be ethically and socially responsible behaviour. It is becoming increasingly evident that organizations that pay genuine attention to the principles of socially responsible behaviour are also finding favour with the public and are the preferred choice for their goods and services.

ORGANIZATIONAL PROFILE
Mc Donald is world largest chain of hamburger fast food restaurant serving around 68 million customers daily in 119 countries. Businessman Ray Kroc joined this company as franchisee agent in 1955 .He subsequently purchased the chain from McDonald brothers and oversaw its worldwide growth .McDonalds philosophy of QSCV (Quality, Service, Cleanliness and Value) is the guiding force behind its service to the customers in India. Following its philosophy of being sensitive to local food and cultural preferences, India was the first country in the McDonald's system where it served non-beef and non-pork products. More than 70 percent of the menu in India has been locally with complete segregation of vegetarian and non-vegetarian products right from the food processing plants to the point of serving the International Journal of Research in Management, Economics and Commerce www.indusedu.org

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IJRMEC

Volume3, Issue 5(May 2013)

ISSN: 2250-057X

customers. Mc Donald is set to embark on campaign for corporate social responsibility in Asia & in India particular it is trying to shed its junk food tag by underscoring the nutritional benefits of its fare. McDonalds also launched social communication campaign urge people on road to observe the traffic rules with smile on lip.

OBJECTIVE OF THE STUDY


The Present paper is basically concerned with the following objectives. 1. To study the Issues and Challenges for CSR in hospitality industries. 2. To understand the CSR in hospitality industry from viewpoint of consumers.

3. To study impact of new innovative ways of CSR & its impact on consumers loyalty

RESEARCH METHODOLOGY
Research Approach:
Qualitative and Quantitative approach Descriptive

Research Design:

Sampling Technique
Random conventional sampling

Sample Universe

Consumers in Mumbai & Thane

Sample Size: - 100 Consumers ; Research Tool: - A structured questionnaire. Secondary data is gathered from internet, official websites, research articles, Statistical Tools: - Percentage Analysis

DATA ANALYSIS & INTERPRETATION


1 How often you visit Mcdonald restaurant?
Responses of consumers Every day Alternate day Once in week Total 100 65 10 25 No. of Respondents

2-Are you satisfied with quality of product & service?


Responses of consumers Highly Satisfied Satisfied Neutral Dissatisfie d Highly Dissatisfie d Total 100 03 22 05 10 No. of Respo ndents 60 82 % of consumers are satisfied with quality of food & services, whereas 13 % consumers didnt agree & 05 % consumers didnt answer.

Survey indicate that 65% people visit once in week whereas 25 % visit alternate days & 10% visit daily .

International Journal of Research in Management, Economics and Commerce www.indusedu.org

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IJRMEC

Volume3, Issue 5(May 2013)


Responses of consumers 80 % consumers are satisfied with conduct & service Strongly Agree Agree Neutral Disagree Strongly Disagree Total 100 42 11 13 09 No. of

ISSN: 2250-057X
67 % consumers

3 Are you satisfied with conduct & services of McDonalds employees?


Responses of consumers No. of Respond ents

Respond agree t whereas ents 25 22 % consumers disagree & 11 % consumers appears to into category of neutrality..

Highly Satisfied Satisfied Neutral Dissatisfie d Highly Dissatisfie d

45

rendered by McDonalds

35 04 06

consumers.

10

6 Are you satisfied with CSR innovative plans? Responses of No. of 65 % of

Respond consumers are ents 31 satisfied, whereas 20 %are not satisfied & 15 % 34 15 11 consumers are not sure.

Do you think CSR policies

consumers Highly Satisfied

adopted by company are beneficial to society?


Responses of consumers Strongly Agree Agree Neutral Disagree Strongly Disagree Total 100 42 06 10 06 No. of Respond ents 36 78% consumers agrees that CSR policies are beneficial to society, Whereas 16 % consumer thinks otherwise & 06 % is undecided.

Satisfied Neutral Dissatisfie d Highly Dissatisfie d Total

09

100

7 Do you think CSR help company in getting more business?


Responses of No. of 69 % consumers Respond agree that CSR ents 42 helps in generating good business whereas

5 Do you think companys campaign against junk food is beneficial to society?

consumers Strongly Agree

International Journal of Research in Management, Economics and Commerce www.indusedu.org

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IJRMEC
Agree Neutral Disagree Strongly Disagree Total 100 27 10 12 09

Volume3, Issue 5(May 2013)


22% disagrees & 10% people didnt answered consumers Strongly Agree Agree Neutral Disagree Strongly 04 31 48 15 ents 02

ISSN: 2250-057X
only 63% consumers trust company for its ethical behaviour whereas 31 % remain neutral & 06% suspect.

Do You Think Company Adopt

Disagree Total 100

Unethical Mean to Gain Business? Responses of consumers Strongly Agree Agree Neutral Disagree Strongly Disagree Total 100 06 22 50 20 No. of Respond ents 02 70% consumers disagree that company use unethical mean to get business & whereas 8% agree & 22% didnt answered.

10 do you think CSR policies adopted by McDonald increases consumer loyalty?


Responses of consumers Strongly Agree Agree Neutral Disagree 45 05 20 05 No. of 70 % Consumers Respond Agree That CSR ents 25 Policies Increases Customer Loyalty Whereas 25 % Disagree &05 % Didnt Answered.

Do You Think Company Adopt

Strongly Disagree Total

illegal mean to Gain Business? Responses of No. of Respond All is not good for the company,

100

FINDING & CONCLUSION:Close analysis of information gathered in the above survey reveals some important fact against the popular believes .It is good that more than 60 % consumers are aware about CSR activities of company less than 40 % consumers are not aware of CSR activities. It also indicates that CSR has positive impact on consumers mind which resulted in customer loyalty. Consumers welcome innovative ideas as well as appreciate also. Employee performance is very essential which is reflected positively in survey. There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers. International Journal of Research in Management, Economics and Commerce www.indusedu.org

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IJRMEC

Volume3, Issue 5(May 2013)

ISSN: 2250-057X

CSR is becoming a fast-developing and increasingly competitive field. The case for demonstrating corporate responsibility is getting stronger as expectations among key opinion formers, customers and the public are increasing. Being a good corporate citizen is increasingly crucial for commercial success and the key lies in matching public expectations and priorities, and in communicating involvement and achievements widely and effectively. The biggest problem is of lack of budget allocations followed by lack of support from employees and lack of knowledge as well. Lack of professionalism is another problem faced by this sector. General public also do not take enough interest in participating and contributing to CSR activities of companies as they have little or no knowledge about it. a key challenge facing business is the need for more reliable indicators of progress in the field of CSR, along with the dissemination of CSR strategies. Transparency and dialogue can help to make a business appear more trustworthy, and push up the standards of other organizations at the same time. CSR is just not responsibility but it is a valuable tool to achieve success & consumer loyalty & as well as retention of consumers .It is a win- win strategy & while developing such a strategy consumer should be made a party to it. Overall CSR of McDonalds appears to be good however, in this age of cut throat competition much more attention need to be paid toward CSR McDonald should do something extra to change perceptions of consumer about its functioning & practices to discharge its social responsibility toward society.

REFERENCES:
1) Age Of Responsibility CSR 2 & New DNA Of Business By Wayne Visser & Jefrey Hollender Published By John Wiley & Sons Ltd.2011. 2) Business Line, Business Daily from THE HINDU group of publications, Wednesday, Jun 23, 2010. 3) CSR in India: Some Theory and Practice in Wall Street Journal dated Thursday, April 23, 2009. 4) Corporate Social Responsibility Practices in India, Times Foundation, the corporate social responsibility wing of the Bennett, Coleman & CO. Ltd. 5) Essentials in Corporate Social Responsibility by Huzaifa Khorakiwala, Vijay Kapur and Enakshi Sengupta published by Wockhardt Foundation. 6) Fundamental of Business Organization & Management 1999 Edition ; by Y.K. Bhshan (Sultan Chand & Sons Publications New Delhi)

International Journal of Research in Management, Economics and Commerce www.indusedu.org

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IJRMEC
(Aug 1 2010)

Volume3, Issue 5(May 2013)

ISSN: 2250-057X

7) Improving business process (Pocket Mentor) by Harward Business School press

8) International Business: Environment & Management 2009 Edition by; V.K. Bhalla & S. Shivkumar Ramu (Anmol Publication Pvt.Ltd. New Delhi) 9) Strategic Corporate Social Responsibility: Stakeholders in a Global Environment by William B. Werther and David B. Chandler (Apr 28, 2010) Published by SAGE Publication inc. 10) Trust and Corporate Social responsibility: Lessons from India by Ashwani Singla, Chief Executive Officer, & Prema Sagar, Founder & Principal, Genesis Public Relations Pvt. Ltd.

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