Application Of The Theories Of Shareholder, Stakeholder, And Virtue In Peace Tourism

By Author: Henry Ford
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“Ten years is an epoch.” It is a Korean proverb, which originally means that there is nothing in the world that does not change as time passes, needless to mention about rapid change in today’s world. Nowadays, the world changes everyday. Due to the enhancement of information system along with the industrial development, our culture is improving day in day out. Furthermore, the appearance of capitalism allowed any private individual to produce their own wealth by serving public’s needs. Capitalism promoted more diversity in the world market by raising the mobility of people and capital which results in the world’s economic growth. These enrichments brought a lot of advantages into the human life by allowing people to experience, learn, and understand the differences.

In addition, since the rapid growth in international trade and investment in the late 20th century, the term, globalization, has appeared and explained the phenomenon of people from different parts of the world being unified into one, in various aspects such as; economic, technological, socio-cultural, and political dimensions. According to the ...
... definition in the Corporate Citizenship Review of YARA, the globalization means “the increasing integration of economies and societies around the world, transcending the boundaries of the nation state, particularly through international trade and the flow of capital, ideas and people, the transfer of culture and technology, and the development of transnational regulations”. With the rapid technological improvement such as internet and increase in international travel and tourism, globalization also contributed to the dramatic growth in cross-cultural contacts, attracting more individual to directly experience diverse cultures from traveling (Novelli and Burns, 2007, p. 328).
However, in some other aspects, these circumstances made people believe that being superior is what matters and therefore mitigated them to want to be better and powerful than others causing ongoing conflicts between countries and terrorism. These conflicts have risen from demographic, economic, ecological, and geo-political dimensions. Most countries agreed that communication between nations is what we need, to peacefully solve these conflicts. Willy Brandt, who was a former politician in Germany, said that, “no national interest can today be isolated from collective responsibility for peace. This fact must be recognized in all foreign nations.” The world can reduce severe tensions, and promote communication and peace beyond frontiers through tourism.

As Roger Dow, who is a president and CEO of Travel Industry Association of America, mentioned in the “peace from the perspective of the tourism industry” lecture, the interconnection in the tourism industry makes tourism an intrinsic job. It does not discriminate people from getting a job and brings everyone together to work for the same goal. Building understanding and relationship between people, communities, and further nations through sustainable tourism can solve existing conflicts and even prevent future problems.

There is an old saying “if we’re not part of the solution, we’re the problem,” and Mark Twain said that “travel is fatal to prejudice, bigotry, and narrow-mindedness.” Therefore, from these two quotations, it can be concluded that, people should not let the world pass by with the problems happening in it right now, but rather personally experience it and export hope and opportunities by solving the world dilemma by means of tourism. Tourism has become an essential element in many developing countries and will become a more vital tool in creating peace around the world.

Application of the Theories of Shareholder, Stakeholder, and Virtue in Peace Tourism
Shareholder theory
Shareholder theory states that it is managers’ duty to maximize shareholder’s profitability. However, the theory has its dilemma in many ways. According to the theory, managers cannot do non-economical, perhaps non-beneficial activities because it will not make any profits for shareholders, owners of the corporation. Managers are supposed to make only economical moves that benefit the shareholders. However, shareholders must consider both short and long term benefits. Long term benefits are exceptionally hard to achieve since it takes short term achievements to fulfill the needs. Managers and shareholders much enforce and pursue both short and long term goals to maintain greater profits.

Tourism’s effects have been a great market for both corporations and countries throughout the world. Pope John Paul II stated that “Tourism puts us in touch with other ways of living, other religions and other perceptions of the world and its history. This helps people to discover themselves and others, both as individuals and as communities.” (Louis D’Amore). Conversely, there are many negative concerns about developing tourism. Although tourism’s positive contributions to societies have long been contested, it has been accepted as one of the world’s most important economic sectors (Levy and Hawkinds). There have been positive and negative movements about tourism.

A sustainable tourism approach can provide a higher quality tourist experience, an improved quality of life for local residents, justification for environmental protection and enhancement of cultural pride (Levy and Hawkinds). There are noticeable positive impacts tourism has on the corporations involved. In particular, the private sector of tourism has the potential to simulate local commerce, improve the standard of living, provide employment opportunities and generate foreign exchange (Levy and Hawkinds). Although corporation social responsibility in the tourism and hospitality industry grew out of a concern for the environment (Holcomb et al., 2007), the trend is now being integrated into the foundational elements of contemporary tourism development through adoption of sustainable tourism practices (Henderson, 2007). Fort and Schipani (2007) suggest that businesses can contribute to strengthening peaceful societies in four ways: fostering economic development; adopting principles of external evaluation; nourishing a sense of community; and utilizing track-two, or non-governmental, diplomacy. Especially in employment quality, corporations can contribute enormously.

For instance, Marriott Corporation partners with the non-profit organization Youth Career Initiative to offer a six-month hotel management and life skills program to underprivileged high school graduates in five countries, including Brazil and Thailand (Levy and Hawkinds). Bank of America Corp. hugely funded the building of the Golden Gate Bridge of San Francisco. After establishment of the bridge, it provided convenience in transportation by connecting San Francisco to Marin Country. The Golden Gate Bridge was the longest suspension bridge span in the world after its completion in the year 1937.

Now, it has become an internationally recognized symbol of San Francisco and California. Not only does the bridge contribute economically to its city due to its’, superior reputation, but also it supports the Bank of America Corp. Corporations promote tourism in a larger sense than solely economically. While they are endorsing the shareholder theory and stimulating long term goals of greater profits, they also promote the touring of cities and the country as a whole for the greater benefit. This will in turn impact greatly in the tourism industry as more people are able to visit the country and its cities which promote peace in the world. They are many countries with wonderful tourism sites that are inaccessible due to lack of infrastructure. The corporations intervene in such situations by providing funds, which will assist in building the infrastructure, opening up such sites to tourism.

Stakeholder Theory
Tourism has been considered as one of the most important sources in the economies of different countries. This is true because from statistics, it has been estimated that the number of tourism arrivals by the year 2020 will hit the 1.6 billion mark, a population mark that has taken the entire human generation more than one hundred and fifty years of existence (Hawkins and Levy, p.2). With these ratings, it is evident to say that tourism can be used to promote peaceful activities between communities of the world, as it seems to be the largest social interactive activity that the world can ever experience. Because of this, it can have diverse effects on the communities across the world. With this, it therefore requires that this essential part of an economy should undergo sustainable approaches to make it more beneficial, to be able to stand the periods and enhance foreign exchange and keep globalization in continuity.

However, for the world to reach that peaceful end, tourism has to be incorporated in the process and be applied in the sense that those who will take part in the quest for peace will do so in their own benefit as stipulated by the stakeholder theory. The stakeholders in this whole process are all the governments, the tourism boards, the tourists in general plus the communities that get the opportunity of interacting with the tourists in the course of their touring. Therefore, if all these bodies; the government, the boards and the communities work together for the sake of their own benefits, then a peaceful end will have been reached in the long run (Pederson, 2007,p. 8)

From the philosophical points of view, the tourism sector is composed of different stakeholders who have different perspectives but are united by the common tourism sector. All these stakeholders need to make the right action that will not equate to its option, according to utilitarianism theory. This action seems to promote peace through their profession and help the world stabilize as a peaceful universe (Kant, p.46). This will eventually benefit all stakeholders in the tourism sector.

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