THE IMPACT OF SOCIAL RESPONSIBILITY ON COMPANY PERFORMANCE IN THE HOSPITALITY INDUSTRY

The hotel management affects the general standard of employees, the level of utility load, the system of ecological burden and businesses in their environment (suppliers, guests, unions, banks, sports and cultural institutions). As hotel companies are capital and labor intensive, the traditional management approach to reducing operating costs is mainly realized through the reduction of salaries. Such an approach of maximizing the financial effects of stockholders provokes discontent of workers (unions), local government and business partners, and consequently reduces the overall quality of hotel services. However, when as a result of such business endeavors occur management decisions that are in the "gray" zone of ethical and moral responsibility, the measures often taken by workers, trade unions and / or related institutions are aimed at promoting and improving the ethical climate and the social responsibility of the hotel companies. The paper follows the idea that competitive advantages on the market result from the positive differentiation from the competition, and that one of the ways involves a socially responsible approach to business. The authors of the paper believe that these immoral actions can be solved through supportive measures and models of "whistle-blowers" that expose the illegal and / or unethical business actions and decisions. In this sense, the paper intends to explore and demonstrate the mentioned measures as a possible solution for reducing adverse effects and thus improving company performance in the hospitality industry. The research model will be based on hotel companies operating in tourist destinations across the Mediterranean, using benchmarking approach to hotel companies in other and comparable tourist destinations. Research results will be transparent and applicable in practice. In order to reach the goal of the paper, quantitative and qualitative methods will be used in primary and secondary data processing