Carlson Company Corporate Social Responsibility Analysis

Carlson Company Corporate Social Responsibility Analysis

  1. Company Background

Curtis L. Carlson founded the company in 1938 as the Gold Bond Stamp Company. The Gold Bond Stamp Company supplied stamps to grocery shops, gas stations, and other businesses to enable them to create customer loyalty. The success of the Gold Bond Stamp Company enabled Carlson to enter the hospitality sector. From the 1970s, the Carlson Company acquired various other businesses. Carlson’s interest in philanthropy led him to create the Carlson Family Foundation. The Carlson Company is based on a participative leadership style where decisions are made through consultations between the people holding various leadership positions. The Carlson Company is made up of various units including Carlson Hospitality Worldwide, Carlson Wagonlit Travel, and Carlson Marketing group. Carlson Hospitality World Wide manages the Regent and Radisson hotel brands. Regent is a brand that serves high-end clients. The company operates through partnering with franchise owners in different geographical locations to establish hotel facilities (Linde 2).

  1. The link between Carlson Company and sex trafficking

The TOURISM industry is closely associated with sex trafficking (Steinman 54). Companies in the hospitality industry serve clients that may potentially engage in sex trafficking and sexual abuse of children. The global environment also creates the possibility of some of the hotels being located in areas where child sexual abuse and sex trafficking may be prevalent. Carlson Company is exposed to the risk of child sexual abuse and sex trafficking due to its involvement in the hospitality industry. There is a risk that some of the guests may use the hotel room to engage in sex tourism. As was previously the case with Marriott, some of the employees may also enable sex tourism (Linde 10). Thus, the operations that Carlson engages in create the chance that the services it offers may be used to enable sex tourism with or without the permission or the awareness of the management team. The reputation of the company is susceptible to the actions of some of the unethical employees and guests.

iii. Pros and cons of development of Regent Hotel and Resort in Costa Rica

Pros. The pros are based on the financial benefits or losses that the company may experience from launching operations. Risks that lead to greater financial loss are ranked first.

  1. An increase in profitability. Companies are created with the main objective of generating profits. Costa Rica presents the opportunity to increase revenue (Linde 7). Costa Rica generated 2.14 in billion from tourism in 2008, thus showing the size of the market.
  2. Enable expansion into Central and South American countries (Linde 7).
  3. Enable the diversification of revenue. Diversification reduces risk as a company does not rely on one region for income.
  4. Costa Rica has a stable political environment. It is one of the most politically stable Central American countries (BBC). The political stability provides for an attractive business environment that would guarantee viable operations.

Cons

Cons are evaluated based on their impact on the profits and revenue, Cins ranked first lead to the highest value of financial losses.

  1. Failure to support child trafficking may cause failure if Costa Rica’s tourism industry is dependent on child trafficking and sex tourism
  2. Litigation- There is a risk that the company may face litigation from victims of child trafficking and which could be expensive (Linde 7)
  3. Corruption in law enforcement and among politicians may make it difficult to enforce the code and laws on sex tourism and child

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