Towards Mapping Environmental Performance and Financial Performance a Primer From the Hospitality & Tourism Industry

Mr. Dipendra Singh; Mr. Leonard A. Jackson

doi:https://doi.org/10.51768/dbr.v16i1.161201503

Submit Manuscript Login / Register Subscribe

Home Page

Editorial Board Members

Mission, Aims & Scope

Current Issue

Towards Mapping Environmental Performance and Financial Performance a Primer From the Hospitality & Tourism Industry

Dipendra Singh, Leonard A. Jackson

https://doi.org/10.51768/dbr.v16i1.161201503

Published Online: January 03, 2015

Author Details ( * ) denotes Corresponding author

1. * Dipendra Singh, Assistant Professor, Rosen College of Hospitality Management, University of Central Florida, Orlando, Florida, United States (Dipendra.Singh@ucf.edu)

2. Leonard A. Jackson, Director, Hotel Finance and Investment, Cecil B. Day School of Hospitality Administration, J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia, United States (ljackson58@gsu.edu)

There is increasing discussion of the way in which corporate social responsibility of firms is assessed in terms of their financial performance. This study aims to review the hospitality industry corporate social responsibility and financial performance literature, thereby providing a conceptual framework for visualizing understanding corporate performance in terms of social performance.

Design/Methodology/Approach: A comprehensive and extensive literature review helps develop a framework for examining the environmental and financial performance of the hospitality industry.

Findings: Given the growing importance of both financial and non-financial disclosures in the decision making processes of stakeholders, it is important that firms’ performance on both constructs are assessed and presented in a manner that can be easily understood and interpreted by prudent stakeholders. A better understanding of how these dimensions interact with each other that can be used to present stakeholders with a visual map of performance on both the dimensions.

Originality/Value: The study attempts to fill the gaps in the discussion of the way in which corporate social responsibility and financial performance of hospitality industry is developed. A research framework embedded with visualization of CSR and financial performance is proposed. Critical research questions about the impact of CSR on financial performance has been identified.

Keywords

Environmental Performance, Financial Performance, Multidimensional Scaling.

Allouche, J., & Laroche, P. (2005). A meta analytical investigation of the relationship between corporate social and financial performance. Human Resource Management Review, 57(1), 8-41.
Aragon-Correa, J.A., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of management Review, 28(1), 71-88.
Arce, C., & Garling, T. (1989). Multidimensional scaling. Directory of Psychology, 43, 63-80.
Berman, S.L., Wicks, A.C., Kotha, S. & Jones, T.M. (1999). Does stakeholder orientation matter? The relationship between stakeholder management models and firm financial performance. The Academy of Management Journal, 42(5), 488-506.
Bohdanowicz, P. (2005). European hoteliers’ environmental attitudes: Greening the business. Cornell Hospitality Quarterly, 46(2), 188-204.
Bohdanowicz, P., Zientara, P., & Novotna, E. (2011). International hotel chains and environmental protection: An analysis of Hilton’s we care! programme (Europe, 2006-2008). Journal of Sustainable Tourism, 19(7), 797-816.
Bromiley, P., & Marcus, A. (1989). The deterrent to dubious corporate behavior: Profitability, probability, and safety recalls. Strategic Management Journal, 10(3), 233-250.
Chand, M. (2006). The relationship between corporate social performance and corporate financial performance: Industry type as boundary condition. The Business Review, Cambridge, 5(1), 240-245.
Cho, C.H., & Patten, D.M. (2007). The role of environmental disclosures as tools of legitimacy: A research note. Accounting, Organizations and Society, 32(7/8), 639-647.
Cho, C.H., Roberts, R.W., & Patten, D.M. (2010). The language of US corporate environmental disclosure. Accounting, Organizations and Society, 35(4), 431-443.
Clarkson, P.M. (2012). The valuation relevance of environmental performance: Evidence from the academic literature. In S. Jones, & J. Ratnatunga (Eds.), Contemporary issues in sustainability accounting, assurance and reporting (pp.11-42). Bingley, UK: Emerald Group Publishing Limited.
Clarkson, P.M., Li, Y., & Richardson, G.D. (2004). The market valuation of environmental capital expenditures by pulp and paper companies. The Accounting Review, 79(2), 329-353.
Clarkson, P.M., Li, Y., Richardson, G.D., & Vasvari, F.P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4/5), 303-327.
Clarkson, P.M., Overell, M.B., & Chapple, L. (2011). Environmental reporting and its relation to corporate environmental performance. Abacus, 47(1), 27-60.
Clarkson, P.M., Li, Y., Richardson, G.D., & Vasvari, F.P. (2011). Does it really pay to be green? Determinants and consequences of proactive environmental strategies. Journal of Accounting and Public Policy, 30(2), 122-144.
Davidson, W.N., & Worrell, D.L. (1990). A comparison and test of the use of accounting and stock market data in relating corporate social responsibility and financial performance. Akron Business and Economic Review, 21(3), 7-19.
De Bakker, F.G.A., Groenewegen, & Hond, F.D. (2005). A bibliometric analysis of 30 years of research and theory on corporate social responsibility and corporate social performance. Business and Society, 44(3), 283-317.
Dhaliwal, D.S., Li, O.Z., Tsang, A., & Yang, Y.G. (2011). Voluntary non financial disclosure and the cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting Review, 86(1), 59-100.
Freedman, M., & Jaggi, B. (1982). Pollution disclosures, pollution performance and economic performance. Omega, 10(2), 167-176.
Frederick, W. C. (1994). From CSR1 to CSR2: The maturing of business-and-society thought. Business and Society, 33(2), 150-164.
Giguère, G. (2006). Collecting and analysing data in multidimensional scaling experiments: A guide for psychologists using SPSS. Tutorial in Quantitative Methods for Psychology, 2(1), 26-38.
Graci, S., & Dodd, R. (2008). Why go green? The Business case for environmental commitment in the Canadian hotel industry. Anatolia: An International Journal of Tourism and Hospitality Research, 19(2), 251-270.
Graves, S.B., & Waddock, S.A. (1994). Institutional owners and corporate social performance. Academy of Management Journal, 37(4), 1034-1046.
Griffin, J.J. (2000). Corporate social performance: Research directions for the 21st century. Business and Society, 39(4), 479-491.
Griffin, J.J., & Mahon, J.F. (1997). The corporate social performance and corporate financial performance debate: Twenty- five years of incomparable research. Business and Society, 36(1), 5-31.
Hart, S.L. (1995). A natural-resource based view of the firm. Academy of Management Review, 20(4), 986-1014.
Hughes, S., Anderson, A., & Golden, S. (2001). Corporate environmental disclosures: Are they useful in determining environmental performance? Journal of Accounting and Public Policy, 20(3), 217-240.
Ilinitch, A.Y., Soderstorm, N.S., & Thomas, T.E. (1998). Measuring corporate environmental performance. Journal of Accounting and Public Policy, 17(4/5), 383-408.
Jackson, L.A. (2010). Toward a framework for the components of green lodging. Journal of Retail & Leisure Property, 9(3), 211-230.
Jackson, L. A. (2013). Best management practices in green lodging defined and explained. FIU Hospitality Review, 31(1).
Jackson, L.A., & Hua, N. (2009). Corporate social responsibility and financial performance: A snapshot from the lodging and gaming industries. Journal of Hospitality Financial Management, 17(1), 63-78.
Johnson, R.A., & Greening, D.W. (1999). The effects of corporate governance and institutional ownership types on corporate social performance. Academy of Management Journal, 42(5), 564-576.
Kasim, A., & Ismail, A. (2012). Environmentally friendly practices among restaurants: Drivers and barriers to change. Journal of Sustainable Tourism, 20(4), 551-570.
Kruskal, J.B. (1964). Nonmetric multidimensional scaling: A numerical method. Psychometrika, 29(2), 115-129.
Kruskal, J.B., & Wish, M. (1978), Multidimensional scaling, Quantitative Applications in the Social Sciences, Beverly Hills, London, UK: Sage Publications.
Luan, C.H., Singh, D., & Hua, N. (2013) Financial performance and internationalization in the US restaurant industry: A simultaneous perspective and analysis. Journal of Hospitality Financial Management, 21(2), 95-114.
Luo, X., & Bhattachrya, C.B. (2006). Corporate social-responsibility, customer satisfaction and market value. Journal of Marketing, 70(4), 1-18.
Lynes, J.K., & Dredge, D. (2006). Going green: Motivations for environmental commitment in the airline industry. A case study of Scandinavian Airlines. Journal of Sustainable Tourism, 14(2), 116-138.
Maignan, I., Hillebrand, B., & McAlister, D. (2002). Managing socially responsible buying: How to integrate non-economic criteria into the purchasing process. European Management Journal, 20(6), 641-648.
Margolis, J.D., & Walsh, J.P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268-305.
Mattingly, J.E., & Berman, S.L. (2006). Measurement of corporate social action: Discovering taxonomy in the kinder lydenberg domini ratings data. Business & Society, 45(1), 20-46.
McClain, R.A. (1978). Endogenous bias in technical progress and environmental policy. American Economic Review, 68(4), 538-546.
McGuire, J.B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 31(4), 854-872.
McPeak, C., &Tooley, N. (2008). Do Corporate social responsibility leaders perform better financially? Journal of Global Business Issues, 2(2), 1-6.
Mitchell, J., Percy, M., & McKinlay, B. (2006). Voluntary environmental reporting practices: A further study of “Poor environmental performers. Australian Journal of Corporate Law, 19(2), 182-215.
Myung, E., McClaren, A., & Li, L. (2012). Environmentally related research in scholarly hospitality journals: Current status and future opportunities. International Journal of Hospitality Management, 31(4), 1264-1275.
Nehrt, C. (1996). Timing and intensity effects of environmental investments. Strategic Management Journal, 17(7), 535-547.
Nicholls, S., & Kang, S. (2012). Going green: The adoption of environmental initiatives in Michigan’s lodging sector. Journal of Sustainable Tourism, 20(7), 953-974.
Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24(3), 403-441.
Panapanaan, V.M., Linnanen, L. Karvonean, M., & Phan, V.T. (2003). Roadmapping corporate social responsibility in Finnish Companies. Journal of Business Ethics, 44(2/3), 133-148.
Patten, D.M. (2002). The relation between environmental performance and environmental disclosure: A research note. Accounting, Organizations and Society, 27(8), 763-773.
Porter, M.E., & Linde, C. van der (1995). Toward a new conception of the environment competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118.
Preston, L.E., & O’Bannon, D.P. (1997). The corporate social-financial performance relationship: A typology and analysis. Business and Society, 36(4), 419-429.
Reinhardt, F.L. (1998). Environmental product differentiation: Implications for corporate strategy. California Management