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Extent of Corporate Sustainability Adoption in the Hospitality Industry: A Case Study of Tourist Hotels in Sri Lanka
- C.N.R. Wijesundara
- Ali Khatibi
- S.M. Ferdous Azam
- Jacquline Tham
- 79-92
- Sep 26, 2024
- Tourism and Hospitality
Extent of Corporate Sustainability Adoption in the Hospitality Industry: A Case Study of Tourist Hotels in Sri Lanka
C.N.R. Wijesundara1, Ali Khatibi2, S.M. Ferdous Azam3, Jacquline Tham4
1Department of Tourism Management, Faculty of Management Studies, Sabaragamuwa University of Sri Lanka.
2,3,4 Post Graduate Centre, Management & Science University, Shah Alam, Selangor, Malaysia.
DOI: https://dx.doi.org/10.47772/IJRISS.2024.809007
Received: 14 August 2024; Accepted: 28 August 2024; Published: 26 September 2024
ABSTRACT
The hospitality industry, particularly in emerging tourism destinations, faces increasing pressure to adopt sustainable practices that align with global environmental and social standards. This study investigate the existing level of corporate sustainability adoption by tourist hotels in Sri Lanka. Through a case study approach, the research investigates the extent to which these hotels have integrated sustainable practices into their operations, including economic, socio-cultural and environmental practices. Quantitative method was employed as the research method and questionnaire survey method has been utilized to collect the required data. 247 questionnaires were distributed among the registered tourist hotels & a representative of the top management was invited to fill the questionnaire from each hotel. 213 questionnaires received and 207 completed questionnaires were used for data analysis and the mean ranking technique was employed by using the SPSS software. The findings revealed a significant emphasis on environmental sustainability initiatives by these tourist hotels. This prioritization aligns with broader trends observed in developing nations, where businesses tend to focus more on environmental aspects than on socio-cultural and economic dimensions. The dominance of environmental practices in the sustainability efforts of Sri Lanka’s tourist hotels underscores the sector’s commitment to addressing ecological concerns, a trend corroborated by previous academic research. These insights contribute to the understanding of how sustainability is implemented in different contexts, particularly in developing countries, and suggest a need for a more balanced approach that equally considers all dimensions of sustainability. Finally, this study provides practical insights for policymakers, hotel managers, and stakeholders aiming to enhance the sustainability of the tourism sector in Sri Lanka. The implications of this study suggest that needful support and capacity-building initiatives are essential to fostering widespread adoption of sustainability practices across the industry, ensuring long-term environmental stewardship, socio-cultural and economic resilience.
Keywords: environmental practices, economic practices, socio-cultural practices, corporate sustainability, hospitality industry
INTRODUCTION
The hospitality businesses play a major role in the world economy, contributing heavily to employment generation, international trade, and tourism (Avinash & Rahman, 2021). However, this industry’s rapid expansion has also brought up additional social and environmental issues, calling for a change to more sustainable business methods (Busch et al., 2024). Corporate sustainability has been an important concept in recent years, pushing organisations to operate in ways that balance economic success with environmental stewardship and social responsibility (Kanchana, 2019; Teng, 2015). Particularly due to the deterioration of natural resources, sustainability concerns are receiving more and more attention on a global scale these days (Busch et al., 2024). Businesses that engage in corporate sustainability are typically intended to improve societal well-being and lessen the negative effects of their activities (Avinash & Rahman, 2021). As per Bello et al., (2017) revealed, the hotel sector itself is one of the factors contributing to ecological degradation. The hospitality industry can have an impact on nature & environment in a few different ways, including excessive use of natural resources, excessive growth of tourism activities, and high visitor numbers (Wijesundara, 2023; Chindu & Bhattacharya, 2019; Hossein et al., 2020). As Kanchana (2019) mentioned, the hospitality business uses a lot of resources, adopting sustainable procedures is essential to reducing their influence on the natural environment. Sustainability methods should therefore be widely adopted and employed in the hospitality industry (Kim et al., 2015; Wijesundara, 2023). Teng (2015) claims that sustainable practices are initiatives that support hoteliers in conserving electricity, water, and waste materials in order to save operating expenses and safeguard the environment.
Sustainable hospitality operation has initiated in early 1990s, and firstly initiated by well-known affiliated hotels and resorts (Kim et al., 2019). Since then, a number of related research works have been conducted, and the application has generated number of benefits to the industry. The highlighted benefits encompass financial advantages, the attainment of competitive edge, customer loyalty, brand recognition, enhanced brand value, and the retention of employees (Kanchana, 2019; Avinash & Rahman, 2021; Busch et al., 2024). Aside from that, the primary driving forces behind the establishments of the green hotel sector are financial gain and shifting customer perceptions of sustainable practices (Kularatne et al., 2019). These researches have demonstrated that sustainable methods are the best and most advantageous option for the sector. Moreover, previous researches have examined the processes that make up tourism organisations’ corporate sustainability plans. The results usually show that corporate sustainability is a multifaceted concept, and that, according to the situation, corporations prioritise different aspects of corporate sustainability in practices (Pereira,et al., 2021; Kim et al., 2019). According to these studies, the hotel industry in developed nations places a strong emphasis on the environmental aspect of business sustainability (Runtuk et la.,2023). In contrast, the industry in developing nations places more of an emphasis on social issues and community assistance (Kanchana, 2019; Wijesundara, 2023). Research suggests that hospitality businesses in the developed world have a fair awareness of corporate sustainability standards, but information about these practices is scarce in the Asian region (Kularatne et al., 2019). The majority of research on the subject of corporate sustainability practices in the tourism sector has ignored the South Asian setting in favour of developed Western and developing Asian economies (Kim et al., 2019; Kanchana, 2019).
The hospitality business has a unique opportunity to embrace corporate sustainability principles, especially in developing nations like Sri Lanka (Kanchana, 2019). Since Sri Lanka is currently having a huge boom in tourist arrivals, the hotel industry faces the dual challenge of meeting growing tourist demands while minimizing its environmental footprint and contributing positively to local communities (Kularathne et al., 2019). As Wijesundara et al., (2023) depicted, sustainability approaches were introduced in Sri Lanka a few years ago, but gained increased attention in 2010 with the end of the civil war and the restoration of peace and harmony. In post-war tourism development, pollution and environmental problems were widespread in Sri Lanka (Kanchana, 2019). According to Kularatne et al., (2019), the government of Sri Lanka started incorporating green practices into its tourism strategic plan, and the idea was further supported by the 10-year master plan for tourism development. These policies led to the integration of sustainable practices, including in hotels, within Sri Lanka’s tourism sector (Nagendrakumar et al., 2022). Even though they may receive a lot of benefits, acceptance is still very gradual (Kanchana, 2019; Wijesundara et al., 2024).
Even while sustainability is widely acknowledged to be important, insufficient research works have been carried out to know to what extent these principles have been implemented in Sri Lanka’s hotel industry (Kanchan, 2019; Mihilar et al., 2021). This study aims to address this gap by conducting a detailed case study of tourist hotels in Sri Lanka. In response to the circumstances, this study is being carried out to identify the prevailing level of the adoption of corporate sustainable practices by tourist hotels in Sri Lankan. Using data from Sri Lanka, this study has investigated the types of corporate sustainability initiatives implemented in the hotel industry. The study specifically identified the existing level of adoption of corporate sustainability practices by Sri Lankan tourist hotels. Comprehending these facets can furnish significant insights for professionals in the sector and legislators, aiding in the development of more efficacious sustainability approaches within the hospitality sector (Kanchana, 2019). It is anticipated that the study’s conclusions would provide useful suggestions for improving sustainability in the hotel industry in Sri Lanka, with possible implications for similar scenarios in other developing nations.
LITERATURE REVIEW
2.1 Theoretical Review
Corporate sustainability is based on a number of theoretical frameworks, each of which provides a different perspective on the mechanisms and motives driving the acceptance of the concept (Kim et al., 2019). As Wijesundara et al., (2023) mentioned, one of the most well-known theories in the sustainability discourse is the Triple Bottom Line (TBL) idea, which places an emphasis on the harmony between people, the planet, and business. TBL emphasizes the necessity for businesses operating in the hospitality industry to prioritize social justice and environmental conservation over profit maximization (Kaftan et al., 2023)
2.1.1 Corporate Sustainability in Hospitality Industry
With its 11% GDP contribution, the tourism industry is a phenomenon that is becoming more and more integrated into the dynamics of the global economy (Nagendrakumar et al., 2022). As a result, its advancement may help a nation’s social and economic well-being (Kularathne et al., 2019). It is a significant source of revenue, employment, and development for many countries and areas (Kim et al., 2019). A portion of this industry is still hesitant to support sustainable initiatives of these respective nations (Runtuk et la.,2023). While industries like manufacturing have gotten far more focus for research on environmental issues, the tourism industry’s environmental consciousness has expanded due to the increasing number of environmental legislation and expanding market pressures (Pereira et al., 2021). As Kularathne et al., (2019) mentioned, within the field of tourism, the hotel sector is the largest employer and has the biggest impact on the growth of the areas in which it operates. This industry is also distinguished by a high utilisation of resources and trash production rate (Swarnapali, 2017). Without a doubt, the tourism industry’s major subsector, the hospitality industry, has the widest environmental effects (Kanchana, 2019). Therefore, sustainability becomes a crucial and vital component for both preserving this industry’s competitive advantage and enhancing the natural environment (Kularathne et al., 2019: Wijesundara, 2023).
Corporate sustainability takes into account moral norms and values while encouraging moral actions that balance the needs of the environment, society, and the economy ( Wu & Jin, 2022 ). Sustainability looks at the future from a long-term viewpoint (Wang et al., 2018). The environmental component of sustainability aims to lessen the negative effects that hotel operations have on the environment by implementing appropriate monitoring systems and/or group initiatives like developing environmentally friendly products and greening production methods (Pereira et al., 2021). The social aspect or dimension aims to enhance the wellbeing of the employees, other suppliers, the visitor, and the local community at large by providing appropriate training, establishing a safe workplace, promoting fair trade, fostering long-term partnerships, and other measures (Nagendrakumar et al., 2022; Leonidou et al., 2020). Earning money and growing a company’s market share while causing minimal negative social and environmental repercussions is the economic component of sustainability (Kanchana, 2019). Businesses must prioritise long-term profitability, ensuring the social health of their partners, including suppliers, employees, and customers, as well as minimising the negative environmental effects of their activities, in order to achieve sustainability (Kaftan et al., 2023; Kanchana, 2019). Finally, corporate sustainability is now a primary objective, supporting the laws passed by authorities and the responsible behaviours of businesses and people.
2.2 Empirical Review
In the hotel sector, corporate sustainability has drawn more attention as businesses look to strike a balance between their social and environmental obligations and financial success (Mihilar et al., 2021). This section reviews empirical studies that have examined corporate sustainability practices in the hospitality industry, with a particular focus on tourist hotels.
2.2.1 Environmental Practices
Value creation relies on adopting appropriate environmental practices and technologies, as well as a proactive attitude towards the environment (Khatter, 2019). As Gavilanes et. al (2019), mentioned, the hospitality industry’s “go-green” movement is defined by an increased emphasis on minimising its impact on the environment through the use of sustainable vendors and environmentally friendly waste-reduction strategies. According to Chan et al., (2018) revealed, a number of countries have implemented more restrictive environmental laws and pushed businesses to protect the environment as a result of growing environmental concerns including global warming. Many hotel facilities are aware that adopting green practices is beneficial for cost savings, image enhancement, market positioning, and improved corporate social responsibility—in addition to being ethically correct (Kanchana, 2019). According to Kularathne et al., (2019), the hotels’ management not only affects its earnings and capacity to keep customers, but also improves its reputation and demonstrates a stronger social responsibility. Environmental practices are being created to enhance innovative business plans that reconsider the company model through the exploration of substitutes and the creation of fresh approaches (Nagendrakumar et al., 2022). The hotel industry employs several environmental measures, such as using eco-friendly cleaning methods, conserving electricity and water, and disposing of solid waste carefully (Nagendrakumar et. al.,2022). Following environmental related corporate sustainability practices can be summarized by adhering to the prevailing literature.
Table 1: Environmental Practices
No | Environmental practices | Authors of the relevant publications & the year of publication |
1 | Using cleaning supplies that are safe for the environment | Nagendrakumar et. Al., (2022); Garay & Font, (2013); Ayuso, (2006); Khatter (2019); Chan et al., (2018); Ulrike, (2020); Danijela et. al, (2016); Kularathne, (2018); Bresjin, (2019); Gavilanes et. al., (2019); Huang et. al., (2015); Kanchan, (2019) |
2 | Installing showers and taps with minimal water consumption | Kularathne, (2018); Gavilanes et. al (2019); Garay & Font, (2013); Becherer and Helms (2014); Danijela et. al, (2016) |
3 | Management of prevalent leaks in water | Gavilanes et. al (2019); Khatter (2019); Pereira et. al, (2021); Hossein et. al, (2020); Kanchan, (2019); Huang et. al., (2015) |
4 | Repairing alternate energy sources, such wind and solar power | Nagendrakumar et. Al., (2022); Kim et. al (2015); Garay & Font, (2013); Chan et al., (2018); Danijela et. al, (2016); Huang et. al., (2015) |
5 | Utilising solar heating systems, automated cooling systems, and smart cards | Kanchan, (2019); Kim et. al (2015); Ayuso, (2006); Khatter (2019); Becherer and Helms (2014); Kularathne, (2018) |
6 | Install LED (light-emitting diode), often known as light bulbs that save electricity. | Nagendrakumar et. Al., (2022); Garay & Font, (2013); Ayuso, (2006); Chan et al., (2018); Danijela et. al, (2016); Huang et. al., (2015) |
7 | Setting up motion detection sensors that control the on and off of lights and other electrical equipment. | Kanchan, (2019); Ayuso, (2006); Khatter (2019); Pereira et. al, (2021); Hossein et. al, (2020); Kularathne, (2018) |
8 | Make as much use of sunlight as you can. | Garay & Font, (2013); Khatter (2019); Chan et al., (2018); Ulrike, (2020) |
9 | Recycling of plastics and glass | Huang et. al., (2015); Ayuso, (2006); Ulrike, (2020) |
10 | Establishing internal guidelines to conserve office supplies. | Nagendrakumar et. Al., (2022); Kularathne, (2018); Garay & Font, (2013); Ayuso, (2006); Becherer and Helms (2014) |
11 | Separation of generated waste | Ayuso, (2006); Khatter (2019); Chan et al., (2018); Pereira et. al,(2021); Kularathne, (2018) |
2.2.2 Socio-cultural Practices
The social aspect of corporate sustainability works to enhance the well-being of employees, other suppliers, guests, and the surrounding community by providing appropriate training, a secure work environment, equitable business practices, fostering long-term partnerships, and other means (Siddique et. al., 2022; Bello et al., 2017);. The social component of corporate sustainability encompasses the actions taken by the business to enhance the quality of life and general well-being of its current customers or the people in the community in which it operates (Hogrefe & Bohnet, 2022). Further to that, through empowerment, it raises social capital, which lowers risk and maintains the security of social and cultural systems (Modica et. al., 2020). Following socio-cultural related corporate sustainability practices can be summarized by adhering to the prevailing literature.
Table 2: Socio-Cultural Practices
No | Socio-cultural Practices | Authors of the publications and the year of the published |
1 | Local programmes reduce poverty and improve education. | Hogrefe & Bohnet, (2022); Modica et. al (2020); Kim et. al (2015); Garay & Font, (2013); Bello et al (2017); Cavagnaro et al. (2015); Kabir (2011) |
2 | Gifts of charity to the community members. | Siddique et. Al., (2022); Hossein et. al., (2021); Batista & Francisco, (2018); Jones et. al (2016); Modica et. al (2020); Cavagnaro et al. (2015); Kabir (2011); Kühnetal (2018) |
3 | Voluntary efforts to improve the local community’s quality of life. | Hogrefe & Bohnet, (2022); Jones et. al., (2016); Modica et. al (2020); Carcano (2013); Cavagnaro et al. (2015); Kabir (2011) ; Muthuri & Gilbert (2011) |
4 | Establishing enduring relationships with suppliers. | Modica et. al (2020); Garay & Font, (2013); Bello et al (2017); Cavagnaro et al. (2015); Batista & Francisco, (2018) |
5 | Treating all consumers equally & fairly. | Siddique et. Al., (2022); Hossein et. al., (2021); Modica et. al (2020); Garay & Font, (2013); Jones et. al., (2016) |
6 | Offering reliable & quality services and products. | Hossein et. al., (2021); Modica et. al (2020); Bello et al (2017); Kabir (2011); Pereira et. al,(2021) |
7 | Planning events in collaboration with the neighbourhood. | Hogrefe & Bohnet, (2022); Modica et. al (2020); Garay & Font, (2013); Pereira et. al,(2021); Batista & Francisco, (2018) |
8 | Establish a secure and hygienic workplace. | Siddique et. Al., (2022); Schwartz et al (2008); Farmaki (2015); Kühnetal (2018); Muthuri & Gilbert (2011); Jones et. al., (2016) |
9 | Observe labour laws and contract agreements. | Hogrefe & Bohnet, (2022); Jones et. al (2016); Farmaki, 2015; Garay & Font, (2013); Kühnetal (2018); Muthuri & Gilbert (2011) |
2.2.3 Economic Practices
It is common to refer to the “economic aspect” of company sustainability as the general dimension (Hristov & Chirico, 2019). As Hussain et.al, (2017), mentioned, economic sustainability encompasses not just social and environmental aspects but also general organisational qualities that must be maintained for a corporation to endure over time. Moreover, the financial facet of corporate sustainability pertains to generating profits and expanding market share, all the while maintaining insufficient social and environmental repercussions (Chindu & Bhattacharya, 2019). Corporate sustainability’s economic component promotes greater product and service utilisation, which eventually enhances people’s standards of life (Garay & Font, 2013). This relates to the profit-driven mentality of big businesses and gives hoteliers the opportunity to create a win-win situation by implementing efficient, sustainable projects that will both improve the environment and increase their long-term profits (Hristov & Chirico, 2019). Following economic related corporate sustainability practices can be summarized by adhering to the prevailing literature.
Table 3: Economic Practices
No | Economic practices | Authors of the publications and the year of the publication |
1 | Whenever feasible, use locals to fill staff positions. | Nagendrakumar et. Al., (2022); Garay & Font, (2013); Kim, Barber, & Kim, (2019); Petri & Mikuli, (2012); Hossein et. al, (2020); Hussain et.al, (2017) |
2 | Reward employees more than the industry standard. | Hristov & Chirico (2019); Garay & Font, (2013); Kim, Barber, & Kim, (2019); Petri & Mikuli, (2012); Chindu & Bhattacharya, (2019); Rupert & Ebner, (2010) |
3 | Supply an additional benefit for workers. | Hussain et.al, (2017); Garay & Font, (2013); Kim, Barber, & Kim, (2019); Chindu & Bhattacharya, (2019) |
4 | Urge visitors to utilise and consume locally produced or acquired goods. | Nagendrakumar et. Al., (2022); Kim, Barber, & Kim, (2019); Pereira et. al,(2021); Hossein et. al, (2020); Hristov & Chirico (2019); Rupert & Ebner, (2010) |
5 | Urge visitors to make donations to worthy causes. | Garay & Font, (2013); Kim, Barber, & Kim, (2019); Petri & Mikuli, (2012); Hristov & Chirico (2019) |
6 | Choose vendors who support regional development. | Hussain et.al, (2017);Garay & Font, (2013); Kim, Barber, & Kim, (2019); Hossein et. al, (2020) |
7 | Evaluate the company’s financial influence. | Garay & Font, (2013); Kim, Barber, & Kim, (2019); Petri & Mikuli, (2012); Chindu & Bhattacharya, (2019) |
8 | Offering training programs for staff. | Nagendrakumar et. Al., (2022); Garay & Font, (2013); Kim, Barber, & Kim, (2019); Petri & Mikuli, (2012); Rupert & Ebner, (2010) |
METHODOLOGY
3.1 Research Method & Research Instrument
The quantitative research method was employed for this particular study and questionnaire was utilized for the intended data collection instrument. By referencing previously published works, the researcher created the suggested questionnaire. This questionnaire was designed to collect primary data in order to evaluate the intended research aims. The top management of the chosen tourist hotels served as the study’s primary respondents.
3.2 Population & Sample
The study’s participants were registered lodging establishments with a dedication to incorporating corporate sustainability programmes within their properties. According to the information provided by Sri Lanka torism statistics, 475 lodging options for tourists were included in the study and it can be considered as the general population of the study. Only 318 lodging facilities for tourists actively engage in corporate sustainability initiatives, hence the study concentrated on this particular hotel demography, and these 318 tourist hotels can be concerned as the target population of the study. A simple random sampling method was used to select participants, ensuring each individual had an equal chance of being included in the study. Considering to the restricted quantity of the intended audience, the researcher has distributed questionnaires to each member of the intended audience. Therefore, the whole target population has been considered as the sample of this study & questionnaires have been sent to the each of these tourist hotels. Moreover, a total of 213 completed questionnaires were received, translating to a response rate of around 67%. However, because of incomplete responses, six surveys had to be disqualified. In the end, 207 completed questionnaires were used in the data analysis.
3.3 Data Collection
A systematic questionnaire created to examine the relevant variables was used to gather data. Three subdivided areas comprised the questionnaire: Environmental practices, Socio-cultural practices, and Economic practices. This section included 17 items measuring different sustainability practices which were developed based on the prevailing literature. Responses were recorded on a 5-point Likert scale, ranging from 1 (Very small extent) to 5 (Very large extent). Before the data was collected, the questionnaire’s validity and reliability were confirmed. Expert reviews were used to guarantee content validity, while factor analysis was used to assess construct validity. Cronbach’s alpha was used to examine the scales’ reliability, and all of them showed adequate reliability (α > 0.70).
3.4 Data Analysis
The Statistical Package for the Social Sciences (SPSS) was used to analyze the data. To compile the responses, descriptive statistics such as mean, standard deviation, and average mean were computed.
3.5 Construct / Variables & Operationalization
The model suggested in this study incorporates three dimensions of corporate sustainability practices as identified in the literature review. These dimensions are Economic dimension, Socio-cultural dimension, and Environmental dimension. Below paragraph provides a concise overview of all three proposed sustainability pillars, including their corresponding items and the researchers who have conducted relevant studies on them. These components were operationalized using a five-point Likert scale. The selected hotels’ top management were asked to express their level of implementation of each sustainability practice on a scale of 1-Very small extent, 2-Small extent, 3-Moderate extent, 4-Large extent and 5-Very large extent. Finally, the main data obtained from respondents via questionnaires were coded and collated into a database using SPSS software version 20. This procedure also includes data entry and modification. The “Mean Ranking” technique was employed to examine the prevailing extend of adoption of corporate sustainability practices by tourist hotels in Sri Lanka.
Table 4: Construct Operationalization
Construct | Item Code | Item Description | Literature |
Economic | ECO1 | Generating income by selling waste products. | Barber, & Kim, (2019); Petri & Mikuli, (2012); Hossein et. al, (2020); Hristov & Chirico (2019); Chindu & Bhattacharya, (2019); Nagendrakumar et. Al., (2022); Garay & Font, (2013) |
ECO2 | The hotel has reduced the cost of inputs | ||
ECO3 | Reduced the cost of waste management. | ||
ECO4 | Recruited & hire local people for jobs. | ||
Environment | ENV1 | Reduced energy consumption | Nagendrakumar et. Al., (2022); Bresjin, (2019); Gavilanes et. al., (2019); Khatter (2019); Pereira et. al, (2021); Hossein et. al, (2020); Kanchan, (2019); Kularathne, (2018); Ulrike, (2020); Ayuso, (2006) |
ENV2 | Reduced waste and emissions. | ||
ENV3 | Reduced impact on animals and natural habitat. | ||
ENV4 | Reduced environmental impacts of services offered. | ||
ENV5 | Reduced the purchases of non-renewable resources. | ||
ENV6 | Limited paper-based marketing materials. | ||
ENV7 | Use green products as much as possible for services. | ||
ENV8 | Used renewable energy sources. | ||
ENV9 | Grow or raise organic food. | ||
Social | SOC1 | Improved employee/community health & safety. | Hogrefe & Bohnet, (2022); Modica et. al (2020); Kim et. al (2015); Siddique et. Al., (2022); Hossein et. al., (2021); Batista & Francisco, (2018); Jones et. al (2016); Hogrefe & Bohnet, (2022); Hogrefe & Bohnet, (2022); Kühnetal (2018); |
SOC2 | Increased the funds for local community activities. | ||
SOC3 | Increased steps to protect the rights of the local community | ||
SOC4 | Increased purchases from local suppliers. |
RESULTS & DISCUSSION
The purpose of this study was to determine to what extent Sri Lankan tourist hotels have adopted the economic, social, and environmental facets of sustainable practices. This approach is frequently used in the social sciences, marketing, and economics to evaluate and contrast performance or preferences across different entities according to numerous attributes or criteria. In this particular study employed mean ranking analysis to evaluate the level of agreement among top management in tourist hotels regarding their adoption of different corporate sustainability practices.
Table 5: Mean Ranking of Sustainability Practices
Category | Items | N | Mean | Std. Deviation |
Economic | ECO1 | 207 | 2.57 | 1.251 |
ECO2 | 207 | 3.14 | .914 | |
ECO3 | 207 | 2.98 | 1.134 | |
ECO4 | 207 | 4.04 | 1.047 | |
Average Mean of Economic | 3.18 | |||
Environmental | ENV1 | 207 | 3.81 | .807 |
ENV2 | 207 | 3.84 | .743 | |
ENV3 | 207 | 3.74 | 1.135 | |
ENV4 | 207 | 4.13 | .840 | |
ENV5 | 207 | 3.38 | .952 | |
ENV6 | 207 | 3.49 | 1.261 | |
ENV7 | 207 | 4.04 | .832 | |
ENV8 | 207 | 3.20 | 1.206 | |
ENV9 | 207 | 3.50 | .999 | |
Average Mean of Environment | 3.68 | |||
Scio-Cultural | SOC1 | 207 | 4.08 | .918 |
SOC2 | 207 | 3.31 | 1.133 | |
SOC3 | 207 | 3.33 | 1.079 | |
SOC4 | 207 | 4.12 | .780 | |
Average Mean of Socio-cultural | 3.71 | |||
Valid N (listwise) | 207 |
The representatives of the upper management at these respective lodging properties were instructed to fill out a questionnaire consisting of seventeen queries with a five-point Likert scale to indicate their level of implementation with each sustainability practice. The purpose of the questionnaire was to determine the current level of sustainability adoption by tourist hotels under the three pillars of sustainability (Economic, Environment, & Socio-cultural). According to the values given to these options, it is verified that if the mean value is higher than 3.5, it suggests that a certain practice has been widely used in tourist hotels. Should the average figure fall below the 03, it suggests that specific behaviours have been implemented to a minimal degree within these resort hotels. A mean value of between 03 and 03.5 suggests that certain practices have been implemented in these tourist hotels to a moderate degree.
Regarding the “average mean” of the aforementioned three sustainability dimensions, the “Social” pillar has achieved the greatest average mean rank (3.71). It has been established that, in contrast to the other two pillars (economic & environment), tourist hoteliers in Sri Lanka have been largely engaging in “Socio-cultural” practices. The dimension titled “Environmental” has achieved the second-highest “average mean” rank (3.68). It has been established that a significant portion of Sri Lankan tourist hoteliers have also been using “Environmental” related corporate sustainability practices in their lodging properties. According to the “average mean” of the these 03 sustainability dimensions mentioned above, the “Economic” pillar has the lowest average mean rank (3.18). It has been established that, in comparison to the other two pillars, tourist hoteliers in Sri Lanka have been employing “Economic” techniques to a moderate degree.
Table 06 has been suggested as a resource for enabling better knowledge of the various sustainability practices and the degree to which they have been adopted. In order to provide further insight into the sustainability practices that tourism hotels have embraced, the corporate sustainability practices that have achieved a mean rank greater than 3.5 are compiled in the table below.
Table 6: Practices With Highest Mean Ranking
Descriptive Statistics | ||||||
Item Description | Item code | N | Minimum | Maximum | Mean | Std. Deviation |
Reduced environmental impacts of services offered | ENV4 | 207 | 1 | 5 | 4.13 | .840 |
Increased purchases from local suppliers | SOC4 | 207 | 2 | 5 | 4.12 | .780 |
Improved employee/community health & safety | SOC1 | 207 | 1 | 5 | 4.08 | .918 |
Use green products for services as much as possible | ENV7 | 207 | 3 | 5 | 4.04 | .832 |
Recruited & hired local people for jobs | ECO4 | 207 | 1 | 5 | 4.04 | 1.047 |
Reduced waste & emission | ENV2 | 207 | 2 | 5 | 3.84 | .743 |
Reduced energy consumption | ENV1 | 207 | 2 | 5 | 3.81 | .807 |
Reduced impact on animals & natural habitat | ENV3 | 207 | 1 | 5 | 3.74 | 1.135 |
Grow or raise organic food | ENV9 | 207 | 1 | 5 | 3.50 | .999 |
Valid N (listwise) | 207 |
Table 06 illustrates that, 09 corporate sustainability practices that have achieved a mean rank greater than 3.5. These practices are arranged in descending order of maximum mean value to smallest mean value. Out of the total nine practices, six belong to the environmental dimension, two to the socio-cultural dimension, and just one to the pillar of economics. The above table’s analysis supported the claim that Sri Lanka’s tourist hotels have been implementing “Environmental related sustainability initiations” to a great extent. This claim has been supported by numerous academic studies (Bhakat et al., 2023; Hull, 2022; Heesup 2021; Danijela et. al, 2016; Gavilanes et. al., 2019; Chindu & Bhattacharya, 2019) that show there are many business firms in developing nations heavily rely on environmental-related sustainability practices as opposed to the other two sustainability pillars. When the corporate sector in developed nations implements corporate sustainability in their various business premises, they are very concerned about the economic and environmental aspects of business operations (Sakshi et al. 2019; Wu & Jin, 2022; Ulrike, 2020).
CONCLUSION & IMPLICATIONS
5.1 Conclusion
In conclusion, the findings from the analysis of corporate sustainability practices in Sri Lanka’s tourist hotels reveal a significant emphasis on environmental sustainability initiatives. This prioritization aligns with broader trends observed in developing nations, where businesses tend to focus more on environmental aspects than on socio-cultural and economic dimensions. The dominance of environmental practices in the sustainability efforts of Sri Lanka’s tourist hotels underscores the sector’s commitment to addressing ecological concerns, a trend corroborated by previous academic research. However, the relatively lower emphasis on socio-cultural and economic sustainability highlights an area for potential growth and development within the industry. These insights contribute to the understanding of how sustainability is implemented in different contexts, particularly in developing countries, and suggest a need for a more balanced approach that equally considers all dimensions of sustainability.
5.2 Implications
Policymakers can benefit from this research by learning more about the hotel industry’s current state of adoption of sustainability and identifying areas that may require regulation or where current rules are already successfully supporting sustainable practices. Future study can further develop and enhance theories connected to sustainability practices, particularly in sectors with high resource consumption and environmental effect, by analysing the amount of adoption. The results can be used as guidelines for comparison research in various geographical areas, cultural contexts, and hotel industry sectors. Subsequent investigations can look into the ways in which diverse legal frameworks, market dynamics, and societal perspectives on sustainability impact the implementation of corporate sustainability initiatives, thus providing a broader worldwide outlook.
However, the study had a few limitations. The fact that the study’s conclusions are based on cross-sectional data gathered from a single South Asian nation may prevent them from being applied to the hotel sectors of other Asian nations. This study only examined the existing level of corporate sustainability adoption of tourist hotels. Therefore, future research may want to conduct experimental research to discover the diverse motivational factors behind these sustainability adoptions. Specifically, future research may be performed to reveal the prevailing barriers for corporate sustainability adoption of tourist hotels.
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