The Influence of Corporate Social Responsibility and Star Rating on Chinese Hotels' Occupancy Rate

Some small business owners are unaware of the possible long-term benefits of engaging in corporate social responsibility (CSR). A business undertaking CSR can benefit from long-term financial benefits. Hotel businesses can benefit from developing long-term relationship with visitors and higher occupancy rates. The purpose of this causal-comparative study was to examine the potential influence of family-owned hotel owners' attitudes towards CSR and star ratings on hotel occupancy rates. The study's population comprised owners of family-owned hotels within Yanqing Zhen, Yanqing County, in Beijing, China. Bowen's formulation of CSR constituted the theoretical framework. Independent variables were hotels owners' attitudes towards CSR and the star ratings of their properties; the dependent variable was hotel occupancy rate. Data were collected using a web-based, Likert-scale survey, which was administered to 583 hotel owners and then analyzed using multiple linear regression modeling. Owners' attitudes towards CSR and their hotels' star ratings were positively related. Each independent variable also significantly predicted occupancy rates p = .000 for owner attitudes and p = .016 for star ratings. The coefficient for interaction influence between star rating and owners' attitudes was not statistically significant (p =.641). With better understanding of the potential benefits from addressing CSR, small hotel owners could increase hotel occupancy rates and improve their image and reputation as well as their employees' engagement, resulting in potential positive social change. Local governments can also develop more informative CSR-related guidelines and policies that benefit local Chinese communities.