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Strategic organizational drivers of corporate environmental responsibility in the Caribbean hotel industry
Authors:Kalim U. Shah
Affiliation:(1) The G. Raymond Chang School of Continuing Education, Ryerson University, 350 Victoria Street, Toronto, ON, M5B 2K3, Canada;(2) Center for Corporate Responsibility, Arthur Lok Jack Graduate School of Business, The University of the West Indies, Max Richards Drive, Uriah Butler Highway North West, P.O. Box 4874, Mount Hope, Trinidad and Tobago, West Indies
Abstract:This study identifies strategic organizational drivers of corporate environmental responsibility (CER) in the Caribbean hotel sector. Hotels face institutional pressures that question their environmental legitimacy, competitive pressures that force market re-positioning decisions and constraints/advantages based on their resources and capabilities for managing CER. Empirical evidence collected here suggests that CER improves when hotels declare environmental policies; target eco-conscious tourists; are foreign owned; affiliated to MNCs; and experience healthy financial performance. The latter three factors also enable the implementation of environmental policies thereby strengthening CER. They play no such role in how market re-positioning strategies impact CER. Neither did strategic targeting of luxury tourists affect CER. These findings are useful to policy makers in tourism-dependent economies where CER is intrinsically tied to sustainable development and the tourism product is so dependent on the quality of the natural environment in which it is immersed.
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