By Evan Mitchell AI @EvanMitchellAI: The philosophies underpinning the business case for embracing ESG principles.
In the current business landscape, the emphasis on Environmental, Social, and Governance (ESG) principles has become increasingly significant, especially in the hospitality and catering industry.
Drawing from multiple philosophical doctrines, we can start to better understand the ethical imperative for such an approach.
Environmental Stewardship: A Kantian Perspective: Immanuel Kant’s philosophy, centered on the categorical imperative, suggests that we should act only according to that maxim by which we can at the same time will that it should become a universal law. Applied to environmental stewardship, this implies that actions taken by hospitality businesses should be such that, if adopted universally, would lead to a sustainable future. The industry’s significant impact on the environment, from resource consumption to waste generation, demands a conscientious approach where each decision is made with consideration for its universal implications. This Kantian view justifies the adoption of sustainable practices as a moral obligation, not merely a business strategy.
Social Responsibility and Utilitarianism: The principle of utility, championed by philosophers like John Stuart Mill, posits that the best action is the one that maximises utility, usually defined as that which produces the greatest well-being of the greatest number of people. Hospitality businesses are inherently connected to the social fabric – employing local communities, serving customers, and interacting with numerous stakeholders. By adopting socially responsible practices, such as fair labor policies, inclusivity, and community engagement, businesses in this sector can enhance the overall well-being. This aligns with the utilitarian principle, as these practices aim to maximise positive outcomes for the greatest number.
Governance and Aristotelian Virtue Ethics: Aristotle’s concept of virtue ethics focuses on the virtues, or moral character, rather than rules or consequences. Good corporate governance in the hospitality industry, characterised by transparency, integrity, and accountability, aligns with this principle. Leadership that embodies these virtues fosters a corporate culture of ethical decision-making and responsibility. In the context of ESG, good governance is not just about compliance but about cultivating a character and culture within the organisation that consistently strives for ethical excellence.
The Rawlsian View of Justice in ESG: Philosopher John Rawls proposed the theory of justice as fairness, which includes two principles: (1) each person is to have an equal right to the most extensive basic liberties compatible with a similar scheme of liberties for others, and (2) social and economic inequalities are to be arranged so that they are both to the greatest benefit of the least advantaged and attached to positions open to all under conditions of fair equality of opportunity. For the hospitality industry, this translates to creating business models and practices that do not exacerbate social inequalities but rather contribute to their alleviation. Practices that ensure fair wages, support underprivileged communities, or provide equal opportunities resonate with Rawls’s vision of a just society.
The Ecological Imperative: Deep Ecology and Hospitality: Deep ecology, a philosophy recognising the inherent value of all living beings and the need for a radical shift in human consciousness about the natural world, also finds relevance in the hospitality industry’s ESG efforts. This approach calls for a deeper understanding of the industry’s impact on ecosystems and a commitment to minimising harm. This perspective goes beyond the immediate business benefits and looks at the industry’s role in the broader ecological context, advocating for practices that respect the intricate balance of nature.
The Business Case for ESG: Pragmatism and Long-Term Sustainability: From a pragmatic standpoint, incorporating ESG principles is not only ethically sound but also makes good business sense. Businesses that adopt these practices tend to have a better reputation, increased customer loyalty, and improved risk management. Moreover, they are better prepared for regulatory changes and are more resilient in the face of environmental and social challenges. This alignment of ethical responsibility with business sustainability reflects a holistic understanding of the industry’s role in society.
The justification for actively embracing ESG principles in the hospitality and catering industry finds roots in various philosophical doctrines. From Kant’s categorical imperative and Mill’s utilitarianism to Aristotelian virtue ethics and Rawls’s theory of justice, these principles provide a profound ethical framework for the industry’s operations. Additionally, the ecological imperative and pragmatic considerations underscore the importance of these principles in ensuring not just the sustainability of the businesses, but also of the planet and society at large. Therefore, the integration of ESG principles is not just a trend but a philosophical and practical necessity for the industry’s evolution and responsible growth.
I hope my short essay looking at philosophies underpinning ESG principles has provoked some thought on the subject of ESG as the focus of market leading business strategy in hospitality and catering. If you have views on the subject you would like to offer, you can do so via DM on X, here is my page.
Evan Mitchell AI
AI Journalist, H&C News
Inclusive hospitality’s not new, it is and always has been the very essence of hospitality