Tag Archives: CSR

Environmental Responsibility in the Hospitality Sector

In a recent media release Hyatt has reiterated its commitment to environmental stewardship with a focus on energy, waste and water reduction, sustainable building, supply chain management as well as stakeholder engagement. In Hyatt’s Corporate Responsibility Report, the listed hotel corporation has unveiled an aggressive set of environmental goals for the year 2020, all designed to strengthen Hyatt’s collective ability to collaborate, inspire and further its commitment to environmental stewardship. Hyatt has also defined a suite of measurable and actionable targets. Hyatt hotels aim to create a more sustainable future for themselves and for their neighbours. The hotel group posits that the conservation efforts have reaped fruit, resulting in major reductions in greenhouse gas emissions and water and energy usage by property across their portfolio. Hyatt maintains that its commitment to environmental stewardship touches every aspect of its business, from the way how the hotels are built and operated, to the way they collaborate with their global supply chain, to the way the hotel chain influences change through the passion and commitment of its employees around the world.
Setting Focus Areas
Hyatt 2020 Vision focuses on significantly expanding the global chain’s strategic scope, especially in areas where past efforts have not had as much of an impact due to occupancy fluctuations and rapid business growth in developing markets. With this in mind, the hotel chain’s three strategic priorities include the following;
• “Use Resources Thoughtfully: Hyatt is committed to examining how its hotels source, consume and manage natural resources to serve their guests. Hyatt will identify ways for Hyatt hotels to reduce energy consumption and greenhouse gas emissions, use less water, produce less waste and make more environmentally responsible purchasing decisions. As a highlight, Hyatt has set the goal to reduce water use per guest night by 25 percent, and within water-stressed areas, Hyatt has set a 30 percent reduction goal. Additionally, Hyatt is elevating its recycling efforts by challenging every hotel to reach a 40 percent diversion rate, as well as by setting a recycling goal for renovation waste.
Build Smart: Hyatt will work closely with stakeholders to increase the focus on building more efficient, environmentally conscious hotels across the enterprise. Beginning in 2015, all new construction and major renovation projects contracted for Hyatt managed hotels will be expected to follow enhanced sustainable design guidelines. Hyatt will lead this initiative by mandating that all new construction and major renovation projects for wholly owned full service hotels and resorts achieve LEED certification, or an equivalent certification.
Innovate and Inspire: This goal reflects Hyatt’s commitment to be a catalyst for bringing more hearts, hands and minds to the table to help advance environmental sustainability around the world. This includes Hyatt’s commitment to create a funding mechanism to support the innovation, ideation and acceleration of sustainable solutions within its hotels that can be replicated across the Hyatt portfolio, as well as the broader hospitality industry” (Hyatt Corporate Responsibility Report, 2013/2014).

Reporting Progress
Hyatt’s reported some of its major milestones, including:

• “The launch of Ready to Thrive, Hyatt’s global corporate philanthropy program focused on literacy and career readiness, which included a $750,000 investment in career readiness programs in Brazil.
• Building 11 libraries and supporting reading and writing programs in 30 schools through a new partnership with Room to Read, impacting 30,000 students in India.
• Donating 35,000 books to kids in need across the globe through We Give Books and Room to Read.
• Donating more than 100,000 volunteer hours in 2013 – a 69 percent increase from 2012.
• More than 80 percent of Hyatt hotels recycling at least one or more waste streams.
• A reduction in resource use intensity in each of Hyatt’s three regions compared to 2006 – up to a 20 percent reduction in greenhouse gas emissions, up to a 13 percent reduction in energy and up to a 15 percent reduction in water.
• Development of responsible seafood sourcing goals based on a global purchasing audit in partnership with World Wildlife Fund.
• Required more than 40,000 of its global associates — including housekeepers, front office, concierge, guest services, key service and security personnel, and all management-level colleagues — to complete Human Trafficking Prevention Training. Hyatt also implemented a standard for all of its hotels to have training measures in place” (Hyatt Corporate Responsibility Report, 2013/2014).

Sources:
Hyatt Thrive: http://thrive.hyatt.com/en/thrive.html
Hyatt Corporate Responsibility Report (2013-2014): http://thrive.hyatt.com/content/dam/Minisites/hyattthrive/Hyatt%20Corporate%20Responsibility%20Report-2013-2014.pdf

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Generating Synergistic Value for Business and Society

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Synergistic value integrates insights from the stakeholder theory [1] [2] [3] and the resource based view theory [4] [5].

The stakeholder theory [1] provides opportunities to align business practices with societal expectations and sustainable environmental needs. Businesses ought to reconcile disparate stakeholders’ wants and needs (e.g. employees, customers, investors, government, suppliers etc.). Firms can create synergistic value opportunities by forging alliances with internal and external stakeholders.  This may lead to an improvement in mutual trust and understanding. As a result, there are also benefits for corporate reputation, brand image, customer loyalty and investor confidence. This societal engagement also responds to third party pressures, it lowers criticisms from the public and minimises regulatory problems by anticipating legal compliance.

The synergistic value model [6] as featured in Figure 1. presents the potential effect of the government’s relationship on the organisation’s slack resources. Moreover, scarce resources are a facilitator for quality and innovation. Therefore, discretionary expenditures in laudable practices may result in strategic CSR [7] outcomes  including; effective human resources management, employee motivation, operational efficiencies and cost savings (which often translate in healthier financial results) [6]. business-comment_05_temp-1359037349-510143a5-620x348(source: Camilleri, 2012)

This promising notion suggests that there is scope for governments in their capacity as regulators to take a more proactive stance in promoting responsible behaviours. They can possibly raise awareness of social and sustainable practices through dissemination of information; the provision of training programmes and continuous professional development for entrepreneurs [6]. They may assist businesses by fostering the right type of environment for responsible behaviours; through various incentives (e.g. grants, tax relief, sustainable reporting guidelines, frequent audits et cetera) [6].

 

Synergistic value implies that socially responsible and environmentally-sound behaviours will ultimately bring financial results – as organisational capabilities are positively linked to organisational performance. Synergistic value is based on the availability of slack resources, stakeholder engagement and regulatory intervention which transcend strategic CSR benefits for both business and society.

References:

[1] Freeman, E.E. (1994). The Politics of Stakeholder Theory: Some Future Directions Business Ethics Quarterly, 4(4), 409

[2] Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.

[3] Donaldson, T., and Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, Evidence and implications. Academy of Management Review, 20(1), 65–91.

[4] Orlitzky, M., Siegel, D. S. and Waldman, D. A. (2011). Strategic Corporate Social Responsibility and Environmental Sustainability. Business & Society, 50(1), 6-27.

[5]McWilliams, A. and Siegel, D. 2011. Creating and capturing value: Strategic corporate social responsibility, resource-based theory and sustainable competitive advantage. Journal of Management, 37(5), 1480-1495.

[6] Camilleri, M. A. (2012). Creating shared value through strategic CSR in tourism.. University of Edinburgh. https://www.era.lib.ed.ac.uk/handle/1842/6564 accessed 10th July 2014.

[7] Werther, W. and Chandler, D. (2006). Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. London: Sage Publications.

[8] Porter, M. E. and Kramer, M.R. (2011) Creating shared value. Harvard business review 89.1/2 (2011): 62-77.

 

Links:

http://www.timesofmalta.com/articles/view/20131010/business-comment/Unleashing-shared-value-through-content-marketing.489766

http://www.timesofmalta.com/articles/view/20130523/business-comment/Leveraging-organisational-performance-through-shared-value-propositions.470940

http://www.timesofmalta.com/articles/view/20130124/business-comment/Creating-shared-value-for-long-term-sustainability.454548

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Creazione di Valore Sinergetico per la Sostenibilita’ delle Aziende

La letteratura sulla responsabilità sociale ed ambientale suggerisce che ci sono benefici ottimali per l’ imprese che si comportano con integrita. Con questo in mente, la metodologia integra intuizioni della teoria degli stakeholder (stakeholder theory) e la teoria delle risorse (RBV theory) per affinare la base strategica per gli investimenti lodevoli. Image

Inoltre, la tesi fa riferimento alla nozione di Porter e Kramer (2011) e della UE (2011). Tecniche di ricerca di triangolazione sono state usate per scoprire come le imprese turistiche stanno sfruttando la creazione di valore condivisi per se stessi e per la società. L’analisi quantitativa ha testato la relazione tra i benefici che risultano dalle responsabilita sociali ed ambientali in confronto alle risorse che dedicano (risorse umane, finanziarie e investmenti sostenibili nel ambiente). In secondo luogo la fase qualitativa di questo studio e stata effettuata attraverso la realizzazione di interviste con proprietari / gestori nel settore turistico e con esperti governativi che sono responsabili per la regolamentazione politica e per formulare le linee guida per la sostenibilità. I risultati hanno indicato che un comportamento responsabile delle imprese ha portato a risultati ottimali (finanziari e strategici), gestione efficace delle risorse umane, efficienza operativa e risparmi sui costi. Finalmente, la tesi presenta un modello empirico che puo condurre a la ‘creazione di valore sinergetica’  per la società e per l’imprese stesse.  (Dottor Camilleri ha completato la sua tesi alla universita d’Edinburgo, in Scozia).

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