From philanthropy to a different way of doing business: strategies and challenges in integrating pro-poor approaches into tourism business

Figures & data

Table 1: Four approaches to Corporate Social Responsibility

Minimalist	Philanthropic	Encompassing	Social activist
Basic stakeholder support Addressing aspects that are generally HR (Human Resource) oriented Tokenistic	Project-specific Related to specific issues relevant to the particular organisation Donations and gifts Seeks to change	Looks beyond the immediate business stakeholder group to the broader community Embedded in company values and management style Seeks to lead change	Approach is the foundation of the business Business is a catalyst for change Seeks to effect change in others
Source: Table adapted from text in Locke, 2003.

Table 2: Advantages and disadvantages of the two approaches

	Philanthropic donations	Adapting business practice
Potential advantages	Development: Can meet priority needs (e.g. education) and span the community Large cash value in a poor community Commercial: Does not interfere with business operation High PR (Public Relations) value Can be outsourced, e.g. CCA (Conservation Corporation Africa) A foundation for more substantive partnerships Tourists also like to participate in donating or volunteering	Development: Long-term impact on community and company can be enormous. Multipliers and spin-offs Commercial: Enhanced tourism product, complementary product Development of brand0 Cost-saving Feeds into enhanced corporate governance Greater recognition from others, and hence impact on social licence, market appeal, government relations, finance, etc.
Disadvantages	Development: Projects that fail or are not sustained – unused computers/classrooms Creates dependency, embodies paternalism Commercial: Budget constraints on volume Community development is not a core competence of tourism business Commercial: Uses up cash – a scarce resource for most tourism companies	Development: Impacts take time to show, and are unevenly distributed Commercial: More binding on the company – less flexible if need to restructure It is difficult, requiring time, inputs, leadership, corporate change, etc.

Locke , R . 2003 . “ Note on corporate citizenship in a global economy ” . Sloan School of Management and Department of Political Science, MIT . Available at: http://mitsloan.mit.edu/50th/pdf/corpcitizenship.pdf

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