Influence of HRM on CSR and performance of upscale hotels in developed and developing countries

Abstract

The researchers showed their increased interest in linking human resource management (HRM) and corporate social responsibility (CSR) practices in recent studies. HRM is a critical factor in how CSR should be enacted, developed, and understood at a broader level to achieve organizational benefits. Hence, it is evident that current studies are asking for more studies on HRM–CSR nexus, and we argue that such a relationship is necessary and relevant. Probing more in this research stream, the current research investigates the impact of HRM and CSR on sustainable performance. More specifically, this study explores how 3-star, 4-star, and 5-star hotels achieve sustainable performance through HRM and CSR in the hospitality industry of the UK, Italy, and Pakistan. A stratified random sampling technique was used to select the hotels by collecting hotel details from Chambers of the Commerce United Kingdom, Italian Government Statistics, and Pakistan Hotel Associations for the UK, Italy, and Pakistan. Through a highly structured survey questionnaire, the data were collected from 438 UK, 520 Italian, and 354 Pakistani hotels. The results confirm the HRM–CSR–sustainable performance nexus in the hospitality industries of three countries. They show that HRM impact on CSR and sustainable performance is relatively stronger in five-star hotels followed by three-star and then four-star hotels. These results supported the resource-based view theory by providing strong evidence that HRM and CSR are essential resources for achieving sustainable performance and competitive advantage.

The nexus of human resource management, corporate social responsibility and sustainable performance in upscale hotels: a mixed-method study

“…Furthermore, they claimed that individuals categorize themselves and others in several social classifications based on religion, age, institute affiliation and gender. An employee is a team member assigned to disseminate a positive and strong self-concept (Joseph et al, 2021;Sarwar et al, 2022).…”

“…According to Yu et al (2020), work conditions directly impact the ethical work environment, limiting the formation of the egoistic environment. Effective work environments enable organizations to overcome and respond to environmental concerns, contributing to long-term environmental sustainability (Gilal et al, 2019;Sarwar et al, 2022).…”

“…The rapid development of human economic expansion has devastated the world's natural resources and environment. Therefore, the involvement in social activities to restore this situation is highly restricted (Trianni et al, 2019;Sarwar et al, 2022). Prior literature has emphasized the impact of the human element on resource preservation and sustainable development (Di Fabio (2017); Rehman et al, 2021).…”

“…HR professionals play a business partner role in an organization to support the legitimacy and credibility of HRM functions and enable an organization to develop strategies in swiftly changing business operations (De Gama et al, 2012;Leroy et al, 2018) in which corporate social responsibility (CSR) amongst the prominent factors. HRM is increasingly gaining momentum in the international context because of its ability to develop strategies, policies and practices that respond to variations in the economic, socio-political environment and the changing needs of businesses (Jamali et al, 2015;Sarwar et al, 2022). They further argued that HRM has an important role in shaping CSR strategies to acquire unique competencies and resources for the organizations.…”

How Corporate Social Responsibility Impacts Employee Identification, Psychological Benefit, and Customer Orientation in Hospitality Industry?

“…Employees often play a central role in delivering and communicating value to customers, and thus, employees who contribute to such relationship-building will likely be highly valuable to a company. It is surprising that there has been no research on how CSR might impact employee performance in terms of relationship building [9] . In other words, while we deeply appreciate how CSR affects employee relationships with the company, we need a greater understanding of how CSR impacts the link between employees and customers.…”