Strategic organizational drivers of corporate environmental responsibility in the Caribbean hotel industry

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.