The Mediating Role of HRM in the Relationship between CSR and Performance in the Hospitality Industry

Abstract

In recent years, the concepts of human resource management (HRM) and corporate social responsibility (CSR) have gained significant focus across industries. The role and implications of CSR are vital for organizational success; similarly, HRM plays a vital role in understanding, developing, and implementing CSR strategies. Therefore, we claimed that the nexus of HRM and CSR is worthwhile to study and relevant in the current pandemic situation. Despite recent calls about the role of human resource management (HRM) and corporate social responsibility (CSR) in achieving sustainable performance, a few studies have investigated their role combinedly in the hospitality industry, especially in a cross-cultural context. Therefore, the present study addresses the current lack of comparative research about the impact of HRM and CSR on sustainable performance in the hospitality industry of Pakistan, the UK, and Italy and shows the mediating role of HRM in such a relationship. A quantitative methodology is applied to the survey of the employees from 354 Pakistani, 438 British, and 520 Italian hotels working in three-, four-, and five-star hotels. The results showed a positive correlation between CSR, HRM, and sustainable performance. Moreover, the results also indicated significant differences among the three countries analyzed concerning the mediating role of HRM in this relationship.

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

“…We believe that HRM facilitates the employees in designing and executing of sustainable practices and that subsequently leads to higher economic, environmental and social performance, as supported by previous studies (Kim et al, 2019 ; Shafaei et al, 2020 ). Regarding CSR influences, the direct and significant relationship with sustainable performance also endorsed the previous studies (Franzoni et al, 2021 ). Considering the results, it is evident that the firms are learning new techniques to work in the current pandemic of COVID-19 and achieve their goals effectively and efficiently.…”

“…Extant literature proposed HRM presents the greatest potential for the incorporating the CSR initiatives and activities as compared to other factors such as top management support (Jamali et al, 2015 ; Sharma et al, 2015 ). Increasing interest in sustainable activities in the organizations is related to the increasing pressure from customers, communities, governments, and non-governmental authorities, to develop more accountable toward society and environment and to be more actively involved in the solution of social and environmental concerns (Franzoni et al, 2021 ). Many other authors have stated that HRM can engage with CSR from different perspectives, for instance, training development, motivation, recruitment of employees and employee well-being.…”

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

“…Employee participation in CSR projects has a major positive impact on the organization's performance and makes them the strategic stakeholders. Employees are the primary CSR stakeholders and carry out CSR projects (Aguinis and Glavas, 2012;Franzoni et al, 2021). Therefore, organizations need their employees' support to fulfill their goals and rules and control mechanisms (Mossholder et al, 2011).…”

“…The hospitality business is highly respected for developing and implementing sustainability initiatives. This induction is alluded to by worldwide adaptations and good implications for the growth and performance of companies (Franzoni et al, 2021). CSR contributes to sustainable performance in the hotel industry (Font and Lynes, 2018).…”

“…Hence, the successful association between HRM and CSR is only possible if the HR professionals chalk-out CSR initiatives from the inception phase. Integrating these two constructs is essential for organizations due to the positive individual and organizational consequences for all the stakeholders (Jamali et al, 2015;Franzoni et al, 2021).…”