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SupervisedbyAdrianaBudeanu
DepartmentofInternationalEconomics&Management
MSocScinServiceManagement
97pages/168,615STUs
November2012
MaureenAngelicaT.Padilla
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2
Abstract
Hotelsparticularlyaffectthesustainabilityofthenaturalenvironmentduetoconsumption
of large amounts of naturalwater and energy and leaving behind substantial amounts of
waste.Therehasbeengrowingsocialconcernanddemandsamongdifferentstakeholders
for environmentally friendly hotels. Despite the growing demand and popularity, only a
handfulofhotelcompaniesaresaidtohaveadoptedenvironmentalmanagementandused
itforgainingcompetitiveadvantage.
The study takes on the case ofMarco Polo Davao, a chained hotel in the Philippines. A
competitiveenvironmentalstrategywassuggestedforthefirmafterexaminingthedifferent
factors and actors that are said to influence the firm’s decisions on environmental
management. Theperceptionsonenvironmentalmanagementof themanagersofMarco
PoloDavaowerefirstlookedinto.Anexaminationoftheotherfactorsandactorsthatare
said to influence managers’ suggestions and decisions in selecting a competitive
environmental strategy followed. The factors includeenvironmental legislation, resources
and capabilities, facilitators/opportunities & barriers/challenges. The actors include the
suppliers, employees and customers, who were also interviewed and surveyed for their
respectiveviewsandopinions. Lastly, recommendationsforactionareasareenumerated,
accordingtothefindingsfromtheinterviewsandsurveys.
The study foundout that there is apositiveattitude towardsenvironmentalmanagement
among the four stakeholder groups. The hotel has current environmental efforts but is
limitedby resourcesandmarket conditions. Mostof the findingson the factorsaffecting
decisionsonenvironmentalmanagementsupportedthetheoreticalassumptions.Onevery
significantfindinghowever,wasthatnoneofthemanagersregardcustomers’demandasa
facilitatorwhilethecustomersurveyresultsshowedthatthere is indeedahigh interest in
environmentally responsible hotels. Abeyond compliance strategy is suggested forMarco
Polo Davao to adopt in designing its environmental management program.
3
Acknowledgements
Thecompletionof this thesismarks theendofmy journey throughtheMSocSc inService
Managementprogram.IwishtothankCBSforgivingmetheopportunitytogothroughthe
program and ultimately, through this unique experience of acquiring knowledge in my
chosenfield.
IwouldliketothankMs.AdrianaBudeanuforherguidance,motivationandpatience.Ialso
wish to express my most sincere appreciation to Ms. Claire Magno and Mr. Rafael
Dominguez, for helpingmake this project possible and to everyone atMarco Polo Davao
whowillinglyparticipatedandhelpedmewitheverythingthatIneededfortheproject.
Mydeepestgratitudegoestoallmyfamily&friendswhohavesupportedmethroughthis
challengingtime.Specialthanksgoestomyparents,Ms.SallyTevesandtoMs.CaitlinYao
&family.
4
TableofContents
Abstract ............................................................................................................................. 2
TableofContents ............................................................................................................... 4
ListofFigures&Tables....................................................................................................... 6
1. Introduction ................................................................................................................ 7
1.1 Background ....................................................................................................................................7
1.2 PurposeoftheResearch................................................................................................................9
1.3 Clarificationofconcepts ..............................................................................................................11
1.4 ThesisStructure ...........................................................................................................................12
2. RelatedLiterature...................................................................................................... 14
2.1 Corporateenvironmentalstrategies............................................................................................14
2.1.1 Environmentalmanagementandthefirm’svalue ...............................................................14
2.1.2 Competitiveenvironmentalstrategies .................................................................................15
2.1.3 Sustainabilityaskeydrivertoinnovation.............................................................................16
2.1.4 Sustainability&shareholdervalue .......................................................................................17
2.1.5 DiscussiononCorporateenvironmentalstrategies ..............................................................18
2.2 EnvironmentalManagementinHotels ........................................................................................232.2.1 Managers’rolesinstrategydecisions ..................................................................................24
2.2.2 Factorsinfluencingmanagers’decisionsonthechoiceofanenvironmentalstrategy ........25
2.2.3 Actors (Stakeholders) influencingmanagers’ decisions on the choice of an environmental
strategy.............................................................................................................................................27
2.2.4 ActionsAreas ........................................................................................................................29
2.2.5 CurrentEnvironmentalBusinessPracticesinHotels.............................................................32
2.3 Conceptualframework ................................................................................................................34
3. Methodology............................................................................................................. 39
3.1 ResearchDesign...........................................................................................................................39
3.2 PhilosophicalConsiderations .......................................................................................................41
3.3 DataCollectionProcess ...............................................................................................................43
3.4 Interviews ....................................................................................................................................45
3.5 Surveys.........................................................................................................................................47
5
3.6 DataAnalysis................................................................................................................................48
3.7 Reliability&Validity.....................................................................................................................49
3.8 Limitations ...................................................................................................................................50
4. TheCase .................................................................................................................... 51
4.1 ThehotelindustryinthePhilippines ...........................................................................................51
4.2 TheHotel .....................................................................................................................................51
4.3 BusinessModel ............................................................................................................................52
4.4 Currentbusinesssituation ...........................................................................................................524.4.1 CurrentenvironmentaleffortsofMarcoPoloDavao ...........................................................53
5. Findings&Analysis.................................................................................................... 58
5.1 InterviewswithManagers ...........................................................................................................58
5.1.1 Managers’roleonenvironmentalmanagement..................................................................59
5.1.2 Factors’influenceonmanagers’decisionsinthechoiceofanenvironmentalstrategy.......59
5.1.3 Actors/Stakeholders’ influence onmanagers’ decisions in the choice of an environmental
strategy.............................................................................................................................................64
5.2 Supplierinterviews ......................................................................................................................655.3 Employees’survey .......................................................................................................................67
5.4 Customers’survey .......................................................................................................................68
5.5 RecommendationsonActionAreas.............................................................................................71
6. Discussion ................................................................................................................. 76
7. Conclusion................................................................................................................. 80
Bibliography..................................................................................................................... 82
Appendices ...................................................................................................................... 88
AppendixA:Managers’InterviewQuestionnaire .................................................................................88
AppendixB:Suppliers’interviewquestions ..........................................................................................91
AppendixC:Employees’Survey ............................................................................................................92
AppendixD:Customers’Survey ............................................................................................................93
AppendixE:OtherenvironmentaleffortsbeingdonebytheF&Bdepartment ...................................94
AppendixF:OtherenvironmentaleffortsbeingdonebytheTechnicaldepartment...........................95
AppendixG:OtherenvironmentaleffortsbeingdonebytheHousekeepingdepartment ..................97
6
ListofFigures&Tables
Figure1:2010‐1015ForecastofPhilippineHotelSales(inMillionsofPesos)…………………….9
Figure 2: Model of linkage between strategy, environmental management and firm
performance…………………………………………………………………………………………………………………….15
Figure3:GenericCompetitiveEnvironmentalStrategies…………………………………………………..16
Figure4:KeydimensionsofShareholderValue……………………………………………………………..…17
Figure5:ConceptualFramework……………………………………………………………..……………………….35
Figure6:Familiaritywithanenvironmentallyfriendlyhotel……………………..……………………….69
Figure7:Interestinstayingatagreenhotel……………………………….…………………………………..…69
Table1:EnvironmentalStrategiesaspresentedbyselectauthors…………………………………….19
Table 2: Survey results for facilitators in implementing an environmental management
program…………………………………………………………………………………………………………………………….62
Table3:Surveyresultsforbarriersinimplementinganenvironmental
managementprogram……………………………………………………………………………………………………….63
Table4:Employees’surveyresults……………………………………….…………………………………………….68
Table5:CustomersurveyresultsforlocalPhilippinetourists…………………………………………….70
Table6:CustomersurveyresultsforforeignPhilippinetourists………………………..……………...71
7
1. Introduction
1.1 BackgroundTourism is the world’s largest industry, contributing to 11.5% of the world’s GDP and
employing12.5%oftheworld’sworkforce.Itisexpectedtogrowatanannualrateof3‐4%
from2011‐2016,mainlydue to the strongeconomiesofemergingcountries (Euromonitor
International,2012).
The global growth in tourism naturally brings inmore revenue to different countries and
mobilityamongdifferentpopulations. However, it alsobrings in issues thathaveharmful
impacts on society and the environment. The issues of growing population, increasingly
scarceresourcesandinappropriatepracticesanddevelopmentsintourismputpressureon
natural habitats and resources, which hastens environmental degradation. This situation
brings in more focus on the importance of addressing the issue of sustainable tourism.
There is an ever‐increasing demand for sustainable tourism as driven by businesses
supporting sustainable practices, authorities and local communities (Euromonitor
International,2012).
Thetravelaccommodationisoneofthelargestsectorsofthetourismindustry,andhotels
have proven to be the biggest players in the sector. There is a growing awareness in
environmentalismnowadaysforboththeindustryplayersandthecustomers.
Thereisaglobaltrendshowingthathotelguestsaremoreeco‐mindedandareconcerned
abouthowtheirchoicescanaffecttheenvironment.Hoteliersalsoincreasinglyknowabout
the need to implement sustainability practices to reduce costs, attract new guests and
benefitfromfuturecost‐savingopportunities(EuromonitorInternational,2012).Inspiteof
thehigherawarenessanddemand,thereareonlyafewcompaniesinthehotelindustrythat
haveacomprehensiveapproachtosustainablepractices (Lopez‐Gamero,Molina‐Azorin,&
Claver‐Cortes,2010).
The world’s largest hotel operators are only just beginning to address social and
environmentalchallenges.Accorplanstocutitsenergyandwaterconsumptionby10%in
8
fiveyearsthroughitsEarthGuestprogram.TheIntercontinentalHotelGroup(IHG)hasan
in‐house sustainability system, the Green Engage program which targets to save 20%
annually in energy consumption. Marriott plans to reduce 25% energy and water
consumptionperroomby2017.OtherplayerssuchasHilton,Hyatt,Starwoodhavesimilar
programsputinplace(EuromonitorInternational,2012).
Accoriscurrentlythemostsustainableoftheworld’s10largesthotelgroups. Accorhasa
scoreofonly55%, followedby IHGwith43%andMarriottwith35%. Otherhotelgroups
scorewellbelowthetop3,withtheremaining7ofthetop10onlygarneringscoreswithin
therangeof6%‐17%.Anumberofotherhotelgroupsoutsidethetop10suchasScandic,
Radisson,Movenpickarealsohavingsustainabilityeffortsbutclearlyhasalongwaytogoin
terms of integrating sustainability management within core processes, monitoring
performance and engagingwith stakeholders on how to address sustainability challenges
(EuromonitorInternational,2012).
The World Economic Forum Sustainability ranking takes into consideration the country’s
environmental regulations, CO2 emissions, particulate matter concentration, threatened
species and environmental certifications. The rankings show that there is a strong
correlation betweenwealth and countries achieving high sustainability rankings. Europe
leadstheworldinsustainabledestinationswhiletheworstperformingcountriesaremainly
thosefromthedevelopingworld. ThePhilippinesisamongthelowestrankedcountriesin
terms of sustainability, with Manila, its capital city, placing among the bottom 5 least
sustainableAsianCities(EuromonitorInternational,2012).
Natural disasters and pandemics are also being feltmore in developing countries, posing
threatstothecountries’tourismindustryandtravelaccommodationsector.ThePhilippines
isnoexception,whichwashitby strongstorms,and tropical cyclones thepast fewyears.
Thesestorms,observedtohavebecomestrongerlatelyduetoclimatechange,havebrought
aboutnaturaldisasterssuchasfloodsandlandslides,displacingandkillingmillionsofpeople
inthecountry.
In the Philippines, hotels are taking up 90% of total travel accommodation sales
(EuromonitorInternational,2010).Itsvaluehasincreasedby12%in2010anditisexpected
to grow in constant value at a compoundedannual growth rate (CAGR)of 8%until 2015.
9
Thenumberofoutlets isalsoexpectedtoincreasewithaCAGRof1%until2015.Thesaid
forecastismainlyattributedtotheglobalgrowthofthetourismindustryandthepopularity
ofintra‐regionaldestinations(EuromonitorInternational,2010).Withthegrowthintourist
arrivalsandincreaseinhotelsales,ithasbecomeevenmoreimportantfortheplayersinthe
Philippinehotel industry to takeup responsibility in addressing sustainability issues in the
destination. Doing thiswill notonlyhelp save theenvironment from furtherdegradation
andcontributeinreversingtheeffectsofclimatechangebutwillalsosavepopulationfrom
sufferingmoredisasters,onehotelatatime.
Figure 1: 2010‐1015 Forecast of Philippine Hotel Sales (in Millions of Pesos) Source:
EuromonitorInternational
1.2 PurposeoftheResearch
Having established the need for hotels to respond to the demands of environment and
society,thisstudylooksintohowhotelscancontributetosustainabletourism.
Studies regarding sustainability efforts of hotels in the Philippines are rare even if the
country is anemergingmarket for thehotel industry. Although thereareenvironmental
effortsindifferenthotelsinthecountry,itisataveryminimallevelandcertainlylagbehind
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
90,000.00
100,000.00
2010 2011 2012 2013 2014 2015
Hotels
ChainedHotels
IndependentHotels
10
those of the developed countries. There is also no data available for sustainability
performanceofhotelsinthePhilippines.Thus,theresearcherdecidedtoinquireinthisarea.
There are four alternative forms of sustainable tourism, namely green tourism, ethical
tourism, responsible tourism and eco‐tourism (Euromonitor International, 2012). This
researchfocusesongreentourismparticularlyonhoweffortsthataregearedtowardsthe
environmentareselected,asopposedtoeffortsthatconcentrateonethical,cultural, local
welfare,politicalandeconomicelementsofthedestinations.
Inorderforahotel tobeabletocontributetogreentourism, likeeveryotherbusiness, it
needs to have clear environmental strategy, implemented through an environmental
managementprogram.Sustainabilityissuesimpactoncorporatestrategyandperformance
(Rohm&Dan,2011). Thechoiceofanenvironmental strategy impactson thecompany’s
environmental performance. Different authors present different sets of environmental
strategies that a company can followand implement for its environmental efforts, oneof
whichisnamed“Competitiveenvironmentalstrategies.”Thisisasetofstrategiesbasedon
the competitive advantage and competitive focus of different environmental strategies.
Examination of the different factors that lead to the general manager’s selection of a
competitiveenvironmentalstrategyisdone.
ThePhilippines lagsbehind thedevelopedcountries in termsof sustainabilityand there is
also a trend that most hotels do not have clear environmental strategies for their
operations. Thus, the market would be a very relevant and practical area for study on
competitiveenvironmentalstrategies.Thegoalofthisresearchistosuggestacompetitive
environmental strategy for a Philippine hotel. This is done by examining the different
factors,actorsandconditionsthatleadtothegeneralmanager’sselectionofacompetitive
environmental strategy, which the hotel can adopt in planning and implementing its
environmentalmanagementprogram.
Theresearchproject ismainlywrittenforthegeneralmanagerofahotel.Thismeansthat
theanalysis, findingsand final recommendationsare to servehowthemanagement team
canoptimizetheirenvironmentalefforts.
11
Theresearchquestionforthestudyis:
What competitive environmental strategy can Marco Polo Davao adopt for its
environmentalmanagementprogram?
Inordertoanswerthisresearchquestion,thefollowingsub‐questionswereformulated:
o What is the role of the general manager’s and the department managers’
perceptionsonselectingacompetitiveenvironmentalstrategy?
o Whatarethefactorsandactorsthat leadforastrategytobesuggestedbythe
departmentmanagersandchosenbythegeneralmanager?
o Whatistheinfluenceofthefactorsandactorsontheselectionofacompetitive
environmentalstrategy?
o What are the recommendations forMarco Polo Davao on the following action
areas: (1)greenprogramstructure(2)energyefficiency(3)resourceandwaste
management(4)sustainablesupplychainmanagement
1.3 ClarificationofconceptsWith the focusongreen tourism, this thesisused the terms,environmentalperformance/
environmentalmanagement/environmentalstrategies/greeneffortsinlieuofsustainability
performance,sustainabilitymanagement,sustainabilitystrategiesandsustainabilityefforts.
Thisclarifiesthefocusofthestudy,whichisontheenvironmentalpartofsustainability.
Sustainability stands for practices that protect and enhance the human and natural
resourcesneededbyfuturegenerationstoenjoyaqualityoflifeequaltoorgreaterthanour
own(USEnvironmentalProtectionAgency,2010). It isamatterofmakingdecisions inthe
shortrunthatdoesnothavenegativeimpactsinthelongrun(Field&Field,2009).
Sustainableeffortspertaintotheactionstowardsachievingsustainability.Consideringthe
scopeand limitationof this study, the term is consideredsynonymouswithgreenefforts,
environmentaleffortsandenvironmentalactions.
Sustainability strategies would then be “structural changes based on sustainability that
impact corporate strategies and performance” (Rohm & Dan, 2011). Environmental
strategiesisusedsynonymouslywiththeterminthisthesis.
12
Environmental management deals with technical and organizational activities aimed at
reducing the environmental impact of the company’s operations (Carmona‐Moreno,
Cespedes‐Lorente,&DeBurgos‐Jimenez,2004).
Energy and waste management means strategizing of the use and conservation of
resources,usuallydonebyexploringpossiblealternativeenergysourcesandbyfindingways
toreduceenergyconsumption,reducewasteandrecycle(EuromonitorInternational,2012).
Supply chain management is the effort to effectively and efficiently manage the supply
chain activities in order to maximize customer value and have a sustainable competitive
advantage. Supply chain activities cover everything from product development, sourcing,
production, and logistics, as well as the information systems needed to coordinate these
activities”(Handfield,2011).
Thegeneralmanagerreferstothepersonwhoisinchargeofadministeringalloperationsof
thehotel.Thedepartmentmanagers refertothosewhoareresponsibleforadministering
the operations of a specific department. In this study, the use of the term “the
managers/themanagement”willrefertobothparties.
1.4 ThesisStructure
Belowisthelistofchaptersinthisthesiswithabriefdescriptionofeach.
Chapter 1‐ Introduction: Introduces the topic of hotel sustainability, and presents the
researchproblemtobestudied,researchpurposeandresearchquestionstobeaddressed.
Thechaptercontainsthedefinitionoftermsandthestructureofthethesis.
Chapter2‐Literaturereview:Themainliteraturewithinthefieldisreviewedandthestudy’s
theoretical framework is presented. The frameworks on corporate sustainability that are
related to the study are presented first, and then a discussion on environmental
management inhotels follows. Thechapterendswiththeconceptual frameworkwherein
theappropriatetheoriesusedforthestudyarebepointedout.
13
Chapter3‐Methodology:Explains the researchand introduces thescientificapproachand
themethodsused in conductingdata collectionanddata analysisprocedures. Theoverall
processofthestudyisalsodiscussed.
Chapter4‐Thecase:GivesabackgroundonthePhilippinehotelindustry,historyandcurrent
situation,andthecaseofthechosenhotelinthePhilippines.
Chapter5Findings&Analysis:Thischapterdiscussesandanalyzesthedatafindingsinorder
tocomeupwithgeneralconclusionsfromthedatagatheringprocess.
Chapter6‐Discussion:Thissectionofthepaperwilldiscusstheanalyzedfindingsanduseit
toanswertheresearchquestion.
Chapter7‐Conclusion:Finalremarksandconclusionsendthepaper.
Appendices‐materialsgatheredandregardedrelevantforfurtherexplanation
14
2. RelatedLiteratureEnvironmental management refers to all efforts to minimize the negative environmental
impactofthefirm’soperationsprocesses,whichcontributetowardssustainability(Klassen
&McLaughlin,1996).Itinvolvesawidevarietyofinitiatives,whichwoulddifferperindustry
due to difference in operations. The initiatives are usually classified as technical and
organizational. Long‐term planning and integration with other corporate decisions
determinetheenvironmentalstrategyofthefirm(Lopez‐Gamero,Molina‐Azorin,&Claver‐
Cortes,2010).
Afirm’senvironmentalstrategyreferstohowthefirmrespondstoenvironmentalissuesand
how ituses themasacompetitive tool. Differentauthors identifydifferentstrategiesbut
one common themeamong the strategies is that it is organized in a continuum from low
commitmenttoadvancedstrategies(Lopez‐Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
Environmentalperformancemeasureshowsuccessfulafirmisinreducingandminimizingits
impact on the environment (Klassen&McLaughlin, 1996). It is shown in terms of results
achievedbythecompanyfromhavinganenvironmentalmanagementprogram,whichgoes
hand inhandwithanenvironmental strategy thatdefinesa firm’scompetitiveorientation
(Lopez‐Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
2.1 Corporateenvironmentalstrategies
2.1.1 Environmentalmanagementandthefirm’svalue
Many suggest that profitability is adversely affected by higher production costs of
environmental management initiatives (Klassen & McLaughlin, 1996). According to
Maignan,customersusuallywantfirmstoinformthemoftheirsustainabilityinitiatives.This
usually influencesthecustomer’spurchasebehaviorascustomersarenowexpectingfirms
tobemoresociallyandenvironmentallyresponsible(Pomering,Noble,&Johnson,2011).
The environmental orientation of the firm is determined by corporate strategy.
Environmentalmanagementbecomesanintegralelementofcorporatestrategyasitaffects
thecompany’senvironmentalperformance.Operationsstrategyisthepatternofstructural
and infrastructural choices that guide decisions in operations to support overall firm
15
performance (Klassen &McLaughlin, 1996). However, according to Reinhardt, there is a
groupofexecutivesandbusinessacademicsthatdisagreebecauseenvironmentalismmakes
managementlosefocusontherealproblemsofbusiness(Reinhardt,1998).
Nevertheless, there are indicators that effectively link environmental management and
financial performance. Firms who invested in activities that minimized environmental
impactwererewardedinthemarketplacebyhighervaluation(Klassen&McLaughlin,1996).
This view however, is criticized by the interpretation that business is concerned with
sustainabilityeffortsandenvironmentalmanagement,onlytotheextentthatitcontributes
long‐term value for the owners of the business and not for the good of society (van
Marrewijk,2003).
Figure 2: Model of linkage between strategy, environmental management and firm
performance
2.1.2 Competitiveenvironmentalstrategies
A study by Orsato presents a framework on the different competitive environmental
strategies.Ithelpsmanagersoptimizeeconomicreturnoninvestmentsandtransformthese
investments into sourcesof competitiveadvantage (Orsato,2006). Thiswould fitwell for
companies trying to find functional solutions that create value in termsof the company’s
economic,socialandecologicalperformanceasmotivatedbytheviewthatsustainabilityis
intheinevitabledirectionthatprogresstakes(vanMarrewijk,2003).
16
In1980,MichaelPorteridentifiedtwogenerictypesofcompetitiveadvantage,lowcostand
differentiation.AccordingtoPorter,afirmcan—throughefficientuseoflaborandcapital—
obtain competitive advantage by selling products or services with the lowest cost in its
industry. On the other hand, a firm can use differentiation strategies to create unique
featuresforitsproductsoritsservices(Orsato,2006).
TheResource‐BasedViewhighlights the influence (internal)organizationalprocessesexert
on competitiveness. Competitive advantage should be seen as a result of the ability to
acquire,use,andmanageresources,suchastechnicalcapabilities,ownershipofintellectual
property,brand leadership, financial capabilities, andorganizational structureand culture.
All these advantages can be utilized at the firm’s advantage in environmental innovation.
(Orsato,2006).
In the framework presented in the study, organizational processes tend to have a more
encompassingscopethanproductsorservicesanditcanbeusedtodefineastrategyfora
productor thewholebusiness. Environmentalstrategiesmustbealignedwiththeoverall
businessstrategyinordertooptimizeresources(Orsato,2006).
Figure3:GenericCompetitiveEnvironmentalStrategies
2.1.3 SustainabilityaskeydrivertoinnovationIn another study, Nidumolu et.al looked at 30 companies and their research has
demonstrated that companies end up with lower costs when becoming environmentally
17
friendlyduetohavingreducedinputs. It isopinedthat inthefuture,onlycompaniesthat
make sustainability a goal will achieve competitive advantage. In order to become
sustainable, there is a need for companies to rethink business models, products,
technologiesandprocesses.Thereare5stagesintheprocessofbecomingsustainableand
thesewillbediscussedindetailbelowtogetherwiththatofthesimilarstrategiesproposed
byOrsato.
2.1.4 Sustainability&shareholdervalueA sustainable enterprise delivers simultaneously economic, social and environmental
benefits toward achieving sustainable development (Hart & Milstein, 2003). Business is
expected to accomplish social goods and initiatives (Brønn & Vidaver‐Cohen, 2009).
However, firmsusually find itdifficult reconciling sustainabilityand increasing shareholder
value(Hart&Milstein,2003).
Orsato showed a framework based on competitive advantages and competitive focus as
discussedabove.Hart&Milsteinhowever,presentsaframeworkthatfocusesonthehow
sustainability affects shareholder value. They present shareholder value as a
multidimensionalconstructusingamodelwith2axes.Theverticalaxisisbuiltonthefirm’s
need to manage the business while simultaneously creating tomorrow’s technology and
markets. Thehorizontalaxis looksat the firm’sneedtogrow internalorganizationalskills
whileinfusingknowledgefromoutside.
Figure4:KeydimensionsofShareholderValue
18
Sustainabledevelopmentisalsoamultidimensionalchallenge.Therearefoursetsofglobal
driversofsustainability.Thefirstisrelatedtoindustrializationandhowitbringsirreversible
effects to theenvironment.Thesecond is thegrowthofgroups incivil society tomonitor
andevenenforcesocialandenvironmentalstandards.Thethirdsetofdriversisrelatedto
emerging technology that can possibly provide solutions to the material and energy‐
intensiveprocessestoday.Thefourthsetrelatestotheincreaseinpopulation,povertyand
inequity. The challenges associatedwith global sustainability can help identify strategies
and practices, which improve performance in all four quadrants of the shareholder‐value
framework(Hart&Milstein,2003).Inordertomaximizeshareholdervalueovertime,firms
mustperformwellsimultaneouslyinallfourquadrants(Hart&Milstein,2003).
2.1.5 DiscussiononCorporateenvironmentalstrategies
Beforea firm isable to implementenvironmentalefforts, it isessential thata strategybe
chosenafterdoingacompanydiagnosis.Theselectedstrategywillguidethedesignofthe
company’senvironmentalmanagementframework.
Thethreeauthorspresentedaboveofferedvariousenvironmentalstrategiesthataresimilar
to each other. Orsato’s competitive environmental strategies willmainly be used for this
study but the important and defining points in the similar theories presented by Hart &
MilsteinandNidumoluet.alwillalsobeintegratedwithOrsato’stoobtainamoreholistic
viewofthedifferentstrategiesthatcanbeusedinthisstudy.
Strategy1:Eco‐Efficiency
Organizations should be able to transform costs into profits by identifying concealed
opportunities for innovation, leadingtomoreefficientorganizationalsystems. Byworking
towards eco‐efficiency within and beyond the firm, it will be able to save money and
decreasetheenvironmentalimpactofitsprocesses(Orsato,2006).Eco‐efficiencyisusually
donetodiminishnegativeeffectsontheenvironmentbyusingstrategiessuchasreducing
resourceconsumption,energyuse,emissionsandwastes,landfilluseandtoxicreleasesand
recycling(McDonough&Braungart,2000). However,McDonough&Braungartclaimthat
thinkingofeco‐efficiencyassustainableisamisconceptionbecauseitprovidesthe
19
Table1:EnvironmentalStrategiesaspresentedbyselectauthors
appearanceofchange,wheninfactwithsimplyreducingandrecycling,doesnotreallyputa
halt in environmental destruction. Thus, better actions such as product redesign (i.e.
replacing non‐biodegradable and harmful chemicals used in products contents to
environmentally friendly ones) and radical innovation should be done in order to ensure
long‐termsuccessinenvironmentalperformance(McDonough&Braungart,2000).
This strategy is quite similar with that of Nidomulo, et. al’s stage 1 called ‘viewing
complianceasanopportunity.’Thedifferenceisthatitputsmorefocusontheinfluenceof
standards on how the companieswould view opportunities for sustainability. In another
theory by Hart & Milstein, the first quadrant in the shareholder value framework is
concernedwithcostandrisk reduction. This supportseco‐efficiencybecause thereduced
use of resources would potentially lead to quarterly earnings growth and reduction in
exposure to liabilities and other potential losses (Hart & Milstein, 2003). At this level,
AUTHORS: ORSATO NIDUMOLU, PRALAHAD &
RANGASWAMI
HART & MILSTEIN
Eco-efficiency Viewing compliance as an
opportunity
Cost & Risk Reduction
Beyond compliance Viewing compliance as an
opportunity, Making value
chains sustainable
Reputation and Legitimacy
Eco-branding Designing sustainable products
& services
Innovation and positioning
Environmental cost management Developing new business
models
Growth path & trajectory
STRATEGIES:
Creating next practice platforms
20
business is concerned with how sustainable efforts in business operations and decision‐
making,reducerisksandcosts(vanMarrewijk,2003).
Strategy2:BeyondComplianceLeadership
TheBeyondcomplianceleadershipstrategytakeseco‐efficiencyastephigherbyseekingto
beacknowledgedintheireffortsfortheenvironment. Inthisstrategy,firmsarewillingto
voluntarilyspendmoneyonenvironmental improvementsbeyondwhat is required (i.e. to
haveitsenvironmentalmanagementsystemcertified),andonthemarketingoftheirefforts
(Orsato,2006).Complyingwithmorestringentstandards,evenbeforetheyareenforcedis
a goodway of fostering innovation and it also provides companieswith the possibility of
benefiting from the first‐mover advantage (Nidumolu, Prahalad,&Rangaswami, 2009). It
can give business major opportunities for out‐designing the competition (McDonough &
Braungart,2000).
Thoseagainstenvironmentalprotectionarguethatthemovetowardsenvironmentalismand
puttingenvironmental standardsor regulations inplaceare thereasonsbehindrecessions
andeconomic slowdownof industrializednations (Shrivastava, 1995). KeithDavis further
supportsthisbystatingthatenvironmentalregulationactuallyrestrictsflexibilityofdecision‐
making.Forbusinesses,itisactuallymoredesirabletohavelessregulationinordertohave
more freedom in decisionmaking to be able tomeetmarket and social factors (Brønn&
Vidaver‐Cohen,2009).
Another important concept that can be factored in the second strategy of going beyond
compliance iswhatNidomulo et. al presented as stage 2 of being sustainable or ‘making
value chains sustainable.’ This is the stage where the companies already got past
compliance and are trying to increase efficiencies throughout the value chain. The
difference of this from eco‐efficiency is brought by the fact that it also helps make the
suppliers environment‐conscious towards the goal of having a sustainable supply chain
(Nidumolu, Prahalad, & Rangaswami, 2009). Environmental concerns drive socially
responsiblefirmstohaveasustainablesupplychainwhilehigherprofitabilityfromadopting
sustainablesupplychainsencouragesotherfirmstodoit. Afirm’senvironmentaldecision
notonlyhaseffectsonitselfbutonitscustomersandsuppliersaswell(Hall,2001).
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ThelasttheorythatcanbeintegratedtothisstageisthatofHart&Milstein,presentedas
reputation and legitimacy as shown in the shareholder value framework extends to
numerous external stakeholders in the value chain. Fostering the stakeholders’ interests
may lead to enhanced reputation and legitimacy leading to growth of shareholder value.
The view indicates that organizations have to balance stakeholders’ interests and
shareholder’s wealth. Stakeholder’s interests can affect or can be affected by the
achievementofanorganization’sobjectives(Hart&Milstein,2003).
Thisisfurthersupportedbythefactthatcompaniesareanintegralparttosociety;theyare
responsibletoservetheneedsandsatisfysociety.Inthisview,motivatedbytheimportance
of reputation and social legitimacy, there is thus a need to balance economic, social and
ecological concerns by going beyond compliance level and profit considerations (van
Marrewijk, 2003). This view of Hart & Milstein on the importance of reputation and
legitimacy is different from what Orsato presented as beyond compliance leadership
because this focuses on the reputation of the firm and its stakeholders, but it however
supportsitsincereputationandlegitimacyareeffectsthatthecompanycanattainbygoing
beyondcompliance.
Strategy3:Eco‐Branding
Once the company has gone beyond compliance and has strengthened its organizational
processes, it would be time to further explore opportunities for environmental
differentiationintermsofproductsandservices,whichcouldfurtherprovideacompetitive
advantage (Orsato, 2006). In environmental product differentiation, a business creates
productsthatprovidegreaterenvironmentalbenefits,orthatimposesmallerenvironmental
costs,thansimilarproducts.Thechangesintheproductsortheproductionprocessusually
raise operating costs but it enables the company to command a price premium in the
marketplace or to capture additional market share (Reinhardt, 1998) through filling the
greenmarketnichewillingtopayapremiumforenvironmentalproducts(Blanco,Lozano,&
Ray‐Maquieira,2009).
Nidumoluet.al’sstage3inbecomingsustainableisnamed‘designingsustainableproducts
andservices.” This isalmost identical toeco‐brandingstrategyofOrsatosince it takeson
22
the challenge of developing sustainable offerings or redesigning existing ones to become
eco‐friendly(Nidumolu,Prahalad,&Rangaswami,2009).
TheinnovationandrepositioningstrategyofHart&Milsteininthesustainableshareholder
valueframeworkisalsosimilartotheeco‐brandingstrategybecauseit isaboutgenerating
productsandservicesforthefuture.Itisasearchforcreatingsynergistic(economic,social
andecological)valuethroughtheadoptionofsustainabilityefforts(Hart&Milstein,2003).
Thedifferencehoweveris,itputsmorefocusoninnovationandpointsoutitsimportancein
currentbusinessstrategies.
Strategy4:EnvironmentalCostLeadership
This strategy entails radical innovations in product design. Innovation is extended to the
"revenuebasis"ofthefirm,andthereisalargenumberunderdevelopment(Orsato,2006).
Inordertodothis,oneshouldconsideriftheproductisecologicallyintelligent,sociallyjust
(inmanufacturing,useanddisposal)andguilt‐freethroughouttheproductionanddelivery
process.Itisalsoimperativeinthisstrategythatinnovationandadaptationoccurinorder
togainacompetitiveadvantage.(McDonough&Braungart,2000)
Nidumoluet.al’sstage4isondevelopingnewbusinessmodels,whichmeansfindingnovel
ways of delivering and capturing value, which will change the basis of competition
(Nidumolu, Prahalad, & Rangaswami, 2009). Businesses have now taken the leap from
lookingat firm’ssustainableactivitiesas limited,unprofitableand isolate toadoptingwith
organization‐wideframeworktoolsandprograms(Larson,Teisberg,&Johnson,2000).The
fullbenefitsofsustainabilityapproacheswillnotberealizedifitisjusttreatedasadd‐onsor
performance variables andarenot integrated into the firm’s strategic vision andbusiness
model(vanMarrewijk,2003).
ThisfourthstrategyissimilarandcanbeconnectedwithHart&Milstein’slastquadrantof
the shareholder value framework, which is growth path and trajectory. The theory of
growthpathandtrajectoryismoreconcernedwiththeexternaldimensionsassociatedwith
futureperformance. There shouldbea clearoutlook for futuregrowthbyeitheroffering
newproductsorenteringnewmarkets.
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Nidomuloet. al furtherpresentsa stage5or the last stageofbeing sustainablewhich is
creating next‐practice platforms. This stage requires the expertise to synthesize business
models, technologies, and regulations in different industries (Nidumolu, Prahalad, &
Rangaswami, 2009). A network of alliances across a group of firms in the value chain is
needed in order to be able to manage innovative change processes and have a truly
sustainablebusiness(Larson,Teisberg,&Johnson,2000).Nidomuloet.alfurtherstatethat
stages 4 and 5 would be a challenge for firms in most industries, as this requires costly
investments in innovation. It is however, a good possibility for the future (Nidumolu,
Prahalad,&Rangaswami,2009).
2.2 EnvironmentalManagementinHotels
Hotels have also been inspired by increasing environmental consciousness among
stakeholder to take actions to reduce the impact of its operations on the environment.
Having an environmental management program addresses this. Environmental
managementisthesetofprocessesandpractices introducedanddonebyanorganization
forthereduction,preventionandeliminationofnegativeenvironmentaleffectsarisingfrom
itsoperations(Hsieh,2012).
Thehotelindustryismadeupofalargenumberofsmalloperationsthatconsumerelatively
smallamountsofenergy,waterandotherresources,andduetothis,theimpactofhotels’
operations on the environment is diffuse (Carmona‐Moreno, Cespedes‐Lorente, & De
Burgos‐Jimenez, 2004). This leads to the perception that it does not cause gross
environmentalpollutionordegradation.However,iftheimpactsthatallthesmallindividual
operations bring are added together, then the hotel does have a significant effect in
resource depletion and pollution contribution (Kirk, 1995). Despite knowing this, the
perception that it does otherwise still remains, leading to a lack of legislation made
specifically for the industry, paving way for the trend of the voluntary nature of
environmentalmanagement in thehotel industry (Carmona‐Moreno,Cespedes‐Lorente,&
DeBurgos‐Jimenez,2004).
Allactivitiesthathaveenvironmentalimpactshouldbecoveredbyahotel’senvironmental
management program to reduce the hotel’s environmental impact (Carmona‐Moreno,
Cespedes‐Lorente,&DeBurgos‐Jimenez,2004).Thehotelindustryisparticularlyconcerned
24
in environmental issues that relate to wastemanagement & recycling, energy andwater
conservation, building permits, legislation & regulations compliance, purchasing and
environmentaleducation(Hsieh,2012).
The InternationalHotels Initiative (1996)states thathavingaclearenvironmentalpolicy is
oneoftheelementsofanenvironmentalprogram(Hsieh,2012).Thepolicywillbeguided
byacompetitiveenvironmentalstrategy,whichwillbedeterminedbydifferentactorsand
factors.Themainactorinthecaseofahotelisthehotels’groupofmanagers,usuallymade
upofthegeneralmanagerandmiddlemanagers.Themanagers’viewsandopinionsarevery
important inmakingenvironmentaldecisionsandthiswillbediscussedfurther inthenext
section.Followingthiswillbeaninvestigationofthefactorsandstakeholdersthataffectthe
managers’decisionsonutilizingenvironmentalmanagementtobringcompetitiveadvantage
tothefirm.
2.2.1 Managers’rolesinstrategydecisions
According to studies, a positive relationship exists betweenmanagement’s perceptions of
environmental issues as opportunities and the adoption of proactive environmental
strategies.Managersaccountableforthecompany’scommitmenttotheenvironmenthave
opportunities to influence the organization’s level of commitment. Their interpretations,
preferences or decisions help them make their decisions, which also depend on the
possibilityofgainingcompetitiveadvantageassociatedwithenvironmentalactions (Lopez‐
Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
The passive accommodating or proactive environmental attitude ofmanagers determines
whatresourceswillbeneededforafirm’senvironmentalbehavior.Ifthemanagershavea
passive attitude, then end‐of‐pipe technologies are usually adopted. Proactivemanagers
would require a shift to using proactive technologies that would reduce pollution to a
greater extent or would completely remove it. Shifting from a reactive to a proactive
approachwould requiresubstantial resourceallocationand investments in termsofgreen
products,green technologies,employeeskillsanda restructuringof thestrategicplanning
process(Lopez‐Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
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The generalmanager is themain person in charge of the whole hotel and he ultimately
decidesonstrategiestobeadoptedbyhotel.However,itisthedepartmentmanagersthat
mainlyhandle theplanningand implementationprocess, thus their suggestions shape the
generalmanager’sdecision. Thedepartmentmanagers’perceptionsonfactorsandactors
affecting decisions on an environmental management are important because it directly
influences their suggestions to the general manager in terms of selecting a competitive
environmentalstrategyforthehotel.
2.2.2 Factors influencing managers’ decisions on the choice of an
environmentalstrategy
Thedepartmentmanagersmainlyinfluencethedecisionofthegeneralmanager.However,
theirsuggestionsfromtheir individualunitsofresponsibilityarealsotakenintoaccount in
planningthehotel’senvironmentalprogram.Thefollowingfactorsinfluencethemanagers’
perceptions on the different environmental strategies for the hotel. The managers’
perceptionsinturninfluencethegeneralmanager’sultimatechoiceofstrategy.
Thesectionbelowdiscusseshowthefactorsanditscurrentconditionsshapethemanagers’
perceptionsonenvironmentalmanagementanddecisionsonacompetitiveenvironmental
strategy.
• EnvironmentalLegislation
Environmental legislation has been themain driving force behindmanagerial perceptions
and a positive relationship between this and according to Rivera andMolero,managerial
perceptioncanhelpdesignenvironmentalmanagementasanopportunity (Lopez‐Gamero,
Molina‐Azorin,&Claver‐Cortes,2010). Studieshave shown thatenvironmental legislation
forhotelsisusuallyscarceandunclear,makingitmoredifficulttocomply,possiblyleading
managerstochooseinaction(Shrivastava,1995).
• Resourcesandcapabilities
Resources and capabilities owned by the firm influence managers’ perception of
environmentalresponsibility.Theresourcesandcapabilitiesthatthefirmownsareusually
readily available and can bring costs down, thereby facilitating the adoption of
26
environmental efforts. What the firms have and what its capabilities are in terms of
investments and implementing a system help set limitations in its decisions on what
environmental strategy it can pursue. Thus, it is important to determine what are the
resourcesavailableforthefirm’susefor itsenvironmentalefforts(Lopez‐Gamero,Molina‐
Azorin,&Claver‐Cortes,2010).
Moreover,thefirms’capabilitiesintermsofexperiencecanmaketheprocessofadoptingan
environmentalmanagement program in amore efficientmanner (Lopez‐Gamero,Molina‐
Azorin, & Claver‐Cortes, 2010). A lack in education may hinder the implementation of
environmentalpracticesandhavingasystemizedmeasurementanddocumentationofutility
consumptionratesandcosts(Scanlon,2007).
• Facilitators/Perceivedopportunities
Thereareanumberoffactorsthatareperceivedtobringincompetitiveadvantage.These
include improvements of company image, delivery of specific service, cost savings in the
medium/long term, better relationshipwith public authorities, increasing staffmotivation
andcompliancewithlegalrequirements(Ayuso,2006).Thesedifferencesarebroughtabout
by cost saving through cost‐reductionmeasures, additional revenue through lower costs.
Moreover,influencingsupplierstodeliversuppliesofhighqualitywouldstrengthensupplier
ties. Quality improvement results from reinforcing total qualitymanagement, leading the
company to have a competitive edge and reduced liabilities in long‐term issues such as
environmentalandsocialchallenges(Shrivastava,1995).
Insupportofthis,astudybyLee,etal.entitled“Understandinghowconsumersviewgreen
hotels:howahotel’sgreenimagecaninfluencebehavioralintentions”showsthatahotel’s
greenimagecaninfluencebehavioralintentions.Ahotelwithasoundsustainableprogram
and a good green image can reduce costs, appeal to investors, motivate employees and
cultivateguestloyalty,leadingtoagreatermarketshare.Thisisbasedonthepremisethat
intoday’ssociety,firmsarejudgedonitsfinancialoutcomesandbehaviortowardssociety
basedonethics,socialaccountabilityandsocio‐economicawareness.Thisisalsodrivenby
theincreasingeducationonglobalwarmingandclimatechange.Agreenhotelimagethus
becomes a powerful tool in gaining market share and having a green positioning and
philosophyinoperationscanhelpattainthis(Lee,Hsu,Han,&Kim,2010).
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• Barriers/Challenges
Therearealsobarriersthatcompaniesfaceinimplementinganenvironmentalmanagement
program. First is the cost, it is quite costly to invest in sustainability programs and this
usuallydiscouragesmanagerswhoareworking tomeetshort‐termperformancegoals. In
some settings, there is lack of know‐how and environmental information,wherein crucial
informationisnotavailable.Thenthereisalwaysaresistancetochangetheproceduresand
systemsthatthecompanyhasbeenusedto.Thiswillalsoentailchangingdecisionroutings,
standardproceduresandculturalhabits(Shrivastava,1995).
Externalbarriersalsoexistincludingthehighopportunitycostofenvironmentalinvestment,
limitedinfrastructureservices,therigidityoflegislationandbureaucraticcomplexity;lackof
knowledge or difficulty understanding the legislation; and troubles derived from the
competitivepressures(Lopez‐Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
2.2.3 Actors (Stakeholders) influencing managers’ decisions on the
choiceofanenvironmentalstrategy
Inadditiontothefactorsdiscussedabove,thefollowingsectiondiscussesthestakeholders
or actors that are considered to influence the managers’ perceptions on the different
environmental strategies for the hotel. The section below discusses how the actors and
theircurrentopinionsanddemandsinfluencethemanagers’perceptionsonenvironmental
efforts.
Stakeholdersinfluencemanagersbyeitherpressureorcooperation.Thestrongerpressure
thestakeholdersexertonthecompany,andthegreaterthecooperationopportunitieswith
its stakeholders, the greater the positive impact on the managers’ perception on the
environmentasacompetitiveopportunity.Theinfluenceofthestakeholdersgiveswayfor
thecompanytodevelopcollaborativerelationshipwithstakeholdersinfindingsolutionsfor
environmentalissues.Thisalsofostersinnovationamongtheorganizations(Lopez‐Gamero,
Molina‐Azorin,&Claver‐Cortes,2010).
o Employees
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Employeesarethemainplayersofenvironmentalsustainability inthehotel. Accordingto
GreenHotelsAssociation(GHA)founderPatriciaGriffin,"Ahousekeepercansee ifatowel
and sheet program is causing less wear and tear, or soap, water and labor savings, for
example.Theyhavesomuchmoreinputonchangesthatcanbemade."Thesustainability
programs actually become a force that bonds management and the employees.
Empoweringemployeesandmakingthemseethedifferencesareencouraging(Block,1998).
Griffinadds thateducatingemployees is very important in conservation, as it is theywho
makealltheinvestmentsproductive.Shestatesthat”Youcanspendhundredsofthousands
ofdollarstoinstallenergyefficientlighting,butiftheemployeesaren'teducatedanddon't
turnthemoff,whatgooddoesitdo?"(Block,1998).
Howtheemployeesperceiveenvironmentalmanagementandtheirwillingnesstoengagein
environmentaleffortswouldhelpthemanagersgaugethelevelofreadinessandcapability
oftheemployeesandthewholehotelintakingonacompetitiveenvironmentalstrategy.
o Suppliers
The suppliers’willingness to collaboratewith the company is essential for thehotel tobe
able tohaveasustainablesupplychain. It is important toknow if thesuppliers’attitudes
andopinionsonenvironmentalpoliciesareinlinewiththatofthehotel.Theircooperation
andopenness toadaptingtothehotel’senvironmentalstandardswill influencemanagers’
perceptionsthatwillinfluencethegeneralmanager’schoiceofstrategy.
o Customers
The customers are the ones who bring in revenue to the business, thus their demands
should be fulfilled. There has been a growing demand for green hotels among the
customers. This trend is shown in the resultsofaUSSurveybyDeloittewherein95%of
respondents believe that the hotel industry should be taking green initiatives and 38%of
business travelers have tried to determinewhether a hotel was green. Another study by
Accorshowsthat76%ofhotelguestsfeltsustainabledevelopmentisimportanttothem.It
alsofoundoutthatguestshavehighexpectationsforhotelstohaveeffortsintheareasof
water, energy, and waste. Of the 7,000 guests surveyed, 51% of guests take a hotel’s
29
environmental involvement into consideration when choosing one (Euromonitor
International,2012).
The customer also plays a role in the delivery of service and implementation of
environmentalpractices(Carmona‐Moreno,Cespedes‐Lorente,&DeBurgos‐Jimenez,2004).
Itmustbetakenintoconsiderationthatmostcustomersinthehospitality industry,expect
to be pampered. Delivering services efficiently usuallymean using energy and resource‐
demanding facilities and activities. Examples include constant use of water heaters, air
conditioners,high‐pressuredshowers,havingamplesupplyoftowelsand linens,abundant
supplies of food and drink and having facilities such as swimming pools and saunas (Kirk,
1995). Thus,whatever isdonetoreducewastecanonlybedonewiththeconsentof the
customer, who is directly involved in terms of deciding his/her energy and resource
consumptionandgenerationofwaste (Carmona‐Moreno,Cespedes‐Lorente,&DeBurgos‐
Jimenez,2004).Itmustalsobedoneinsuchawaythatthecustomerdoesnotnoticeany
deteriorationofservice(Kirk,1995).
The level of customers’ demands for environmental efforts in hotels and their need and
willingnesstoengagethemselvesintheenvironmentalhotelexperiencecanhelpmanagers
indeterminingwhichcompetitiveenvironmentalstrategytosuggest.
2.2.4 ActionsAreasThefollowingsectionpresentstheactionareasthatareusuallyaddressedwhenplanningan
environmental management program. The significance of the action areas is discussed
below. Thedepartmentmanagers’perceptionson the factorsandactorsare reflectedon
their suggestions for the following action areas. The department managers’
recommendations will be relevant because they help the general manager decide what
strategywillbestaccommodatethesuggestionsforthesaidactionareas.
o Greenprogramstructure
AccordingtoHsieh,actualenvironmentalpracticeshavetobeexaminedtoestablishwhat
amongthemanyguidelinesandlegalrestrictionsforenvironmentalmanagementaretobe
applied for each establishment (Hsieh, 2012). In order to be successful, all departments
30
withinthehotelshouldplayaroleintheplanningandimplementationofitsenvironmental
managementprogram.
A study by Enz and Siguaw (1999) looked at the environmental practices of four hotels
considered as environmental champions, namely: theColonyHotel, theHotel Bel Air, the
HyattRegencyChicago,andtheHyattRegencyScottsdale.Ithasfoundoutthateachofthe
hotels focusedon resource conservation,educationandcommunity involvement.Another
commonfeaturewasthateachcreatednewmanagementpositions(i.e.recyclingmanager,
directorofenvironmentalprograms)orestablishedspecialcommittees(i.e.GreenTeam)to
take charge of the implementation of the hotels’ environmental programs (Hsieh, 2012).
TheGreenTeamconcept focuseson training andpooling staff andmanagerswhowill be
responsible for the firm’s environmentalmanagement program. The employees are very
essentialinmakingtheGreenTeamconceptasuccessineveryorganization(Scanlon,2007).
Studies have shown that the Green Team keeps employees involved in a hotel’s
commitment to theenvironmentbygivingemployeesavoice increatingnewpoliciesand
practiceswithinthehotel.Italsoencouragesvolunteerismpromotinghighinvolvementand
boosting employee morale and truly makes a difference in the hotel’s environmental
performance(Heney,2009).
o Energyefficiency
Sustainable hotel practices are initially built on energy conservation and resource
management. In the hospitality industry, electricity use accounts for 60%‐70% of utility
costs.HVAC(Heating,ventilationandairconditioning)andlightingaccountfor75%oftotal
hotelenergyuse (Chan,Mak,Chen,Wang,Xie,&Hou,2008). For thepast twodecades,
hotelshavebeencontinuouslyimplementingelectricityusereductionmeasures.Theusual
simplemeasures include using fluorescent bulbs instead of incandescent bulbs, replacing
windowsoraddinginsulationtocutheatingandcoolingcosts,andincludingmotionsensors
andtimerstoreducepoweruse(Miller&Washington,2008).
Energy conservation measures can also be done through implementing an energy
managementsystem. Thisisasystemthatmonitorsenvironmentalandsystemloadsand
adjustsHVAC (heating, ventilationandair conditioning)operationsaccordingly inorder to
conserveenergywhilemaintainingcomfort(USEnvironmentalProtectionAgency,2006).In
31
hot regions, air‐conditioning is the main factor for energy use. There are a lot of
technologicaladvancesforreducingorutilizingsolarenergythathaveenteredthemarket.
This includecoatedglassofvariouskinds,triplevacuumglazing,switchableelectrochromic
windows and solar control films. These reduce heat entering the rooms and can lower
energyuseforcooling(Chan,Mak,Chen,Wang,Xie,&Hou,2008).
o Resource&wastemanagement
Water conservation and waste management are also focus areas for the hotel industry
(Miller & Washington, 2008). Water conservation refers to efforts toward reduction in
water consumption. Waste reduction is done to prevent or decrease waste quantities
throughwasteprevention,recycling,orpurchasingrecycledandenvironmentallypreferable
products(USEnvironmentalProtectionAgency,2006).Recyclingprogramsinhotelcankeep
asmuchas80%ofwastefrombeinglandfilled(Miller&Washington,2008).
Energy,resourceandwastemanagementcanleadtohelpingreduceemissions,whichisalso
oneoffthemaingoalsofsustainablehotelpractices.Emissionsusuallycomeintheformof
carbon dioxide (CO2) andmethane (CH4). It is pollution discharged into the atmosphere
fromsmokestacks,othervents,andsurfaceareasofcommercialor industrial facilities (US
EnvironmentalProtectionAgency,2006).
o Sustainablesupplychain
Sustainablesupplychainmanagementistheuseofpurchasingpoliciesandpracticestohelp
realizeacompany’scommitmenttotheenvironment.Itusuallyinvolvesacollaborationof
the supply chain members‐ particularly between the companies and their suppliers that
provideproducts,servicesandinformation.Thewillingnessofbothpartiestocollaborate
and do research can also lead to making environmental products and services readily
available for thehotels’ customers. Acompanynotkeenoncollaborationcanalso takea
forcedcompliancestrategythroughsettingperformancestandardsandgoals.Factorssuch
astypeofbusiness,levelsofcompetition,sizeandinfluenceofthebuyerandsupplierhelp
determineifthecompanywouldadopteitheracollaborativeorforcedcompliancestrategy
(Font,Tapper,Schwartz,&Kornilaki,2008).
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Developinganenvironmentalpolicy is the first stepacompanycantake towardshavinga
sustainable supply chain. It will then be easier for the company to communicate
environmentalgoalsandexpectations to its suppliers. Codesof conduct for suppliers can
also be included in communicating the company’s environmental goals. The issues to be
coveredbythissetofcodesincludeissuessuchasworkplaceconditions,productmaterials,
and restricted substances. The suppliers’ environmental compliance status and standards
should be checked and regularly monitored. The suppliers’ environmental achievements
shouldalsobeacknowledged recognizingandawarding themappropriately (Font, Tapper,
Schwartz,&Kornilaki,2008).
2.2.5 CurrentEnvironmentalBusinessPracticesinHotels
A number of hotel companies around the world have implemented sustainable business
practices over the past two decades (Bader, 2005). Examples of hotels that have
implemented the different environmental strategies are presented below. The examples
illustrate how the competitive environmental strategies are being applied in hotels. The
managerscanusetheexamplesasatoolforreflectingonwhichenvironmentalstrategyis
relevantandpossiblyapplicableforadoption,consideringthehotel’scurrentconditions.
Oneexampleof ahotel thathas clearly adopted theeco‐efficiency strategy isDoubletree
Hotel and ExecutiveMeeting Center in Portland, Oregon. The strategy is evidenced in its
sustainableresourcemanagementprogram,whichhasbroughtdowncostsofoperationand
hasachange inorganizationalprocesses. Itswastedisposalvolumehasbeen reducedby
sixty‐fivepercentintenyears.Othersupplementaryeffortsincludesellingwastekitchenoil
to biodiesel producers, maintaining small inventories, donating excess food to a local
shelter, preferring reusable containers to disposable one, and having a paper‐saving
program. The success of the program is attributed to its integration into the business
philosophy.Accordingto theGeneralManager,SteveFaulstick“TheDoubletree’sprogram
startsatthetop,withmanagement’spersonaldedicationtogreenness”(McPhee,2006).
Movenpick hotels and resorts is a chain that has implemented the beyond‐compliance
leadership strategy as it focuses on differentiation through organizational processes.
Sustainability is treatedasa toppriorityofalloperations in thehotel. Asevidence, ithas
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achievedtheGreenGlobecertificationforall its21hotels inEurope. Its initiativesinclude
using biodegradable products such as biodegradable pens, wooden key cards, ecological
bathroomamenitiesandusingfair‐tradecoffee.Itsfoodislocallysourcedandorganic.Its
employeesinall21hotelsinEuropeundergosustainabilitytrainingandaregivenaccessto
itse‐learningtoolkittolearnmoreaboutsustainability(EuromonitorInternational,2012).
Anotherhotelthatisagoodexampleofhavingabeyond‐complianceleadershipstrategyis
the InterContinental Grand Stanford Hong Kong, which has a clear environmental vision
created in1999. Its initiativeshave included installationofdigital thermostats inallguest
rooms, water purification systems, an ISO environmental management system and a
buildingmanagementsystem.Itsavedover€650,000,between1999andOctober2005.Its
greatstaffmoraleanddedicationhasimproveditspublicimage,increasingthehotel’spublic
relations value. These efforts and systems have led to an increase in its business
performance(Bader,2005).
Element by Starwood has the following global strategy: “ Element is positioned as the
world’sfirstfullyLEED(LeadershipinEnergyandEnvironmentalDesign)certifiedhotelchain
for ‘Healthy Active’ guests sensitive to Green and Sustainable issues.” This hotel chain is
implementing the eco‐branding strategyby focusingondifferentiation in its products and
services.Thedifferentiationisveryevidentfromthefactthatalltheninehotelsinthechain
aremandated to be built ecologically and seek for LEED accreditation. Theymarket the
hotelatmosphereasmodernandsociable,aswellasbeingenvironmentallyfriendly.Ithas
incorporated eco‐friendly materials in construction, furnishing and energy conservation,
bringinginhigherprofits(EuromonitorInternational,2011).
EnvironmentalcostleadershipisseenintheexamplesbelowforRezidor’sRadissonSASand
CrownePlaza Copenhagen. It involves radical innovation in technology andproducts and
services. The initial investment is certainlyof a considerable amountbut it is expected to
pay‐offandeventuallybringthecostsdown,givingthehotelaclearcompetitiveadvantage
fortheyearstocome.
Rezidorhas21RadissonSAShotelsthatitconsidersasbestpracticeexamplesofresponsible
businesspolicyimplementation.Ithasinvestedincost‐savingmethods.InBeijing,Chinaa
steamrecoverysystemwasinvestedin,whichhadathree‐monthpayback.Combinedwitha
34
greywatersystem,thetwosystemsresultinannualsavingsof€5,000.InIstanbul,40solar
panelswereinstalledwithanestimatedpaybackperiodoftwoyears.InMalta,25%ofthe
energyutilizedbythehotelisderivedfromsolarpanels.InStavanger,Norway,twohotels
were able to reduce energy consumption by 9 percent through a single energy‐saving
campaign.InIreland,itschemicalandlaundrysupplieswerereducedby50%(Bader,2005).
Crowne Plaza Copenhagen has a carbon‐neutral building. The hotel boasts of the largest
building integrated solar panel park in Northern Europe and the first ever groundwater‐
based cooling and heating system in Denmark. It also operates a system (Variable Air
Volume or VAV) that electronically regulates the amount of air in each individual room
according to need. It uses lowenergy light sources and its hotel corridors has intelligent
light management and water saving is applied everywhere (Crowne Plaza Copenhagen
Towers, 2010). The rooms are loadedwith green products such as organic toiletries (i.e.
shampoo bottle, toothbrush) and all paper‐printed informationmaterial are history as all
informationisdeliveredelectronicallythroughaninteractiveTVscreeninformationsystem.
Allofthehotel’sITinfrastructurehasbeenselectedbasedonenergyframeandrecyclability.
The kitchen is designed to operate at the lowest heat emission possible and all waste
produces from the kitchen is processed and sent to a biogas plant to be further used as
fertilizers. It has also revolutionized its supply chainmanagement by having a calculated
food strategy, reducing weekly deliveries, and preferring post‐mix beverage over bottled
beverages(CrownePlazaCopenhagenTowers,2010).
2.3 Conceptualframework
Havingdiscussed rationalebehindenvironmentalmanagement, the factorsand theactors
influencing department managers’ perceptions and possible suggestions and the general
manager’sdecisionsonanenvironmentalstrategy,thissectiondiscusseshowthesewillbe
relevantandhowitwillleadtotheanswersforthestudy’sresearchquestionandobjectives.
35
Figure5:ConceptualFramework
Companiesemploydifferentstrategies inorder tosuccessfullycarryoutanenvironmental
management program. The competitive environmental strategies byOrsato are a set of
environmental strategies that focuses on a company’s competitive advantage and
competitive focus. A number of actual examples on the application of the competitive
environmental strategieswere discussed in the previous section. How a generalmanager
ultimatelyselectsastrategyfordependslargelyonthecurrentconditionsofthefactorsand
actorsthataresaidtoinfluencethegeneralmanager’sperceptions&decisionaswellasthe
department managers’ perceptions and suggestions. The latter are taken into account
beforedecidingonastrategy.
The current states of the factors, namely, environmental legislation, resources and
capabilities and opportunities and challenges all influence the department manager’s
perceptions and suggestions on environmental efforts as well as the general manager’s
decisioninselectingastrategy.Inadditiontothefactorsmentioned,itisimportanttonote
the bilateral relationship that exists between the managers and the actors/stakeholder
groups. How the managers perceive the importance of the stakeholder groups in
consideringa competitiveenvironmental strategyaffect theirperceptionsand suggestions
and in turn, affects theway the generalmanager selects a strategy. On the other hand,
36
knowing how the stakeholder groups perceive environmental management, what their
demands are and their willingness to cooperatewould also enablemanagement to cater
theirsuggestions inaccordancewiththestakeholders’views. Thisthenallowsthegeneral
managertoselectaworkablestrategyconsideringcurrentconditionsofthefactorsandthe
actors,allowingthecompanytogaincompetitiveadvantage.
The departmentmanagers will play a significant role in giving out information about the
differentfactorsdescribedabove,includingthecurrentconditionsofthebusiness,business
environment and the local legislation. The suppliers’ and employees’ views will allow
management to point out recommendations for business activities involving both
stakeholdergroups.Thecustomers’viewswilleitheraffirmordenytheperceived ideasof
managementregardingthemarketandwillhelpmanagementchooseastrategythatwillfit
thedemands.
Recommendations for the fouractionareasofgreenprogramstructure,energyefficiency,
resourceandwastemanagementandsustainablesupplychainarethenbepresented.The
recommendationswere derived from the thoughts of themanagers and the views of the
threestakeholdergroups.Therecommendationswillstandasanotherfactorandbasisfor
thegeneralmanager’sdecisiononthechoiceofcompetitiveenvironmentalstrategy.Itwill
also be useful for further planning and implementation of the firm’s environmental
managementefforts.
How the strategies will be selected depend largely on the department manager’s
perceptions and suggestions on the current environmental position and efforts of the
companyandthecurrentconditionsofthefactorsandactors.
Four sets of combinations of different factors and actors’ conditions, ideal for each
competitiveenvironmentalstrategyarepresentedbelow. Thesetsofcombinationsactas
guide in order to be able to match the current conditions with the ideal conditions
presented per strategy. The set that gives the closestmatch to the current conditions is
recommendedasthestrategythatthehotelcanadopt.
The generalmanager’s decision on a competitive environmental strategy depends on the
followingfactors:
37
o Departmentmanagers’perceptionsandsuggestionsonenvironmentalefforts
o Stakeholders’viewsanddemands
o Environmentallegislation
o Availabilityofresources
o Environmentalknowledgeandcapabilitiesofthefirm
The following sections describe the ideal level (i.e. low/high presence) of each driver in
terms of current business conditions in order to be able to influence the department
managerstosuggestandthegeneralmanagertoselectacertaincompetitiveenvironmental
strategies.
o Eco‐efficiency
Eco‐efficiency strategy is geared towards cost savings through resource use reduction
(McDonough&Braungart,2000).Thestrategycanbeselectedifthemanagershavepositive
view on environmental management and Employees and customers are willing to be
engaged in environmental efforts. Moreover, environmental legislation on simple
environmentalmeasures ispresent. Lastly, thisbecomesthe idealstrategy if the firmhas
limited resources and knowledge for implementing an environmental program and if the
firmhaslowinfluenceonitssuppliers.
o BeyondComplianceLeadership
This strategy can be selected if the managers have a growing concern in environmental
managementandareinterestedinmovingtowardsadoptingaproactiveapproach. This is
also ideal if there is a demand from shareholders, and customers and openness among
employees in terms of implementing environmental efforts and regulations on
environmentallegislationarepresentandsupportiveofcompaniespursuingenvironmental
efforts. In this strategy, firms are willing to voluntarily spend money on environmental
improvements (Orsato, 2006). This strategy is applicable to firms that have resources to
financeenvironmentalinvestmentsintechnologyandorganizationalchangesandifthefirm
has access to knowledge providers and consultancy services for environmental
management. Lastly, this strategy is ideal if both the companyand suppliers areopen to
strengtheningties.
38
o Eco‐branding
Thisisthestagewhereinthefirmisreadytofurtherexploreopportunitiesforenvironmental
differentiationintermsofproductsandservices,whichcouldfurtherprovideacompetitive
advantage(Orsato,2006).Theeco‐brandingstrategyrequiresthatmanagershaveastrong
interest and are willing to adopt the proactive approach in environmental management.
Thisstrategybestfitsafirmwhoseshareholdersandcustomershaveastrongdemandandif
its employees have a high interest in the firm’s environmental performance. When
environmentallegislationispresentandnotverystrictbutideallysupportiveofcompanies
pursuing environmental efforts, this strategy is ideal. Moreover, adequate resources to
financeenvironmental investments intechnologyandorganizationalchangesarerequired.
Knowledgeaboutenvironmentalmanagementandenvironmental technologiesandaccess
toexcellentknowledgeprovidersandconsultancyservicesforenvironmentalmanagement
arealso important. Strong supplier tiesandwillingness for collaborationamongsuppliers
arealsoneededtobesuccessfulinthisstrategy.
o EnvironmentalCostLeadership
The pattern of the factors’ level of importance here are similar as that of eco‐branding
strategybut it is required that themanagershaveavery strong interest inenvironmental
management as this strategy entails radical innovation and design (Orsato, 2006). This
strategyisidealifthefirmhasabundantresourcestofinanceenvironmentalinvestmentsin
technology and organizational change and if the firm is highly knowledgeable about
environmentalmanagementandenvironmental technologiesandhaveaccess toexcellent
knowledgeprovidersandconsultancyservicesforenvironmentalmanagement. Lastly,this
strategycanbeselectedifthereisanadequatenumberofsuppliersandstrongsupplierties
withastrongwillingnessforcollaboration.
Havingpresentedtheidealconditionsfortheselectionofastrategy,itisimportanttonote
thatthestrategiesareindependentandarenon‐linearfromeachother.Thismeansthata
firmcansurpasstheadoptionoflowerstrategiesandselecthigherstrategiesifitiscapable
ofadoptingit.Itisalsopossibleforafirmtoswitchfromonestrategytoanother,regardless
ofwhetheritisfromalowerstrategytoahigheroneorviceversa.
39
3. MethodologyMethodology is the “general approach to studying research topics,” usually a systematic
sequence of procedural steps to be followed by the researcher (Gobo, 2008). It shapes
which and how methods are used and how they can generate answers to the problem
(Silverman,2005).
3.1 ResearchDesignThe research design addresses four areas in order to acquire good findings and draw a
reliableconclusion.Thesefourareasdealwiththequestionsofthestudy,therelevantdata,
thedatatobecollectedandhowtoanalyzetheresults(Yin,2003).
Therearefivecomponentsofaresearchdesignforcasestudies. Thesearethe(1)study’s
questions,(2)itspropositions(ifany),(3)itsunitsofanalysis,the(4)thelogiclinkingdatato
thepropositionsandthe(5)thecriteriaforinterpretingthefindings.Theunitsofanalysis
aredeterminedoncetheprimaryresearchquestionshavebeenspecified. Thedesigntells
whatistobedoneafterthedatahavebeencollected,asindicatedbythelogiclinkingthe
datatothepropositionsandthecriteriaforinterpretingthefindings(Yin,2003).
Implementing an environmental management program requires that an environmental
strategybeselectedinorderforthefirmtoknowhowtorespondtoenvironmentalissues
andhowtousesuchissuesasacompetitivetool(Lopez‐Gamero,Molina‐Azorin,&Claver‐
Cortes,2010).Thustheresearchquestionisthefollowing:Whatcompetitiveenvironmental
strategycanMarcoPoloDavaoadoptforitsenvironmentalmanagementprogram?
Thenatureoftheresearchquestioncallsforanexploratorystudydesign.
Exploratory research isprimarilyconcernedwithdiscoveryandwithbuilding theory (Jupp,
2006)asopposedtoexplanatoryresearch,whichusuallyseekscausal relationshipsamong
variables(Vogt,2005).Exploratoryresearchisusuallyemployedwhendecidestoworkona
littleresearchedarea,or isdevelopingmethodsfora latermoreformalstudy. It isoftena
precursortoa largerprojectthat investigatesseveraldifferent,butrelatedareas(Williams
40
M.,2003).Sincethereisbarelyanypreviousstudydoneonenvironmentalmanagementfor
theselectedhotel,theresearcherfirmlybelievesthatthisisanexploratorystudy.
Asinglecasestudydesignisappropriatewhenitrepresentsthecriticalcaseintestingawell‐
formulated theory (Yin, 2003). Studying views and opinions of management and other
stakeholder groups was conducted for single case chained‐hotel in the Philippines, the
MarcoPoloDavao.
The case is selected because it is an internationally chained, full‐service hotel in the
Philippines. International hotel chains are by and large, theoneswhohave sustainability
programs,oratleasthaveenvironmentaleffortsputinplace.Theyalsotypicallycommand
a greater share of themarket because of their high level of standards and consistency in
services.Thispushesthemtocontinuallyinnovateandfindwaystomaintainandimproveits
marketperformanceinordertobeabletocompetewiththeothers.Withconsiderationto
the currentmarket, which ranks low on sustainability, studying a hotel that is part of an
internationalchainwouldbeadvantageousbecausethereisagreaterchancethatitwould
have environmental efforts put in place (Euromonitor International, 2012). It is also
advantageous in a way that since most of the time, hotel chains originate from more
developed countries,which rank higher on sustainability, then itwould bemore open to
adopting strategies and investing in sustainability efforts. Moreover, being the market
leader, it has a greater chance of influencing its competitors and suppliers to implement
environmentaleffortsintheirbusinesses,bringingthemarket’senvironmentalperformance
toahigherlevel.
The single case design is chosen to answer the above‐mentioned objectives in order to
suggestacompetitiveenvironmentalstrategyforatypicalchainedhotel inthePhilippines.
The rationale behind the decision to adopt a single case design is to test theory that is
considered to influence the general manager’s decision in choosing a competitive
environmental strategy and draw conclusions onwhat environmental strategy to suggest
(Yin,2003).Atestingandanalysisprocessthatmaybeapplicableforatypicalchainedhotel
inthePhilippines
Theunitofanalysischosenwillbe14managersfromdifferentdepartmentsofthehotel,the
generalmanager,afewsuppliersandasampleofemployeesandcustomers.
41
Thefindingsofthestudy isdeemedsuccessful if itmatcheswiththeory,meaningthatthe
intervieweesagreewithwhatisgenerallysaidintheoryandthatthesurveyresultsconfirm
what is said in theory. The findings is then used to select a competitive environmental
strategy for thehotel, in accordance to how theory describes its applicability to a certain
firm.
3.2 PhilosophicalConsiderationsA research paradigm is the theoretical framework, made up of general theoretical
assumptions, laws and techniques that support the research process that is normally
adopted by a particular scientific study. It helps the researcher answer the research
questionthroughtheframework’sguidingstructureandtools(Wills,2007).Itdefineswhat
the research is about and what falls within and outside the limits of legitimate research
(Voce,2004).Itthenfollowsthatthemethodologies,practicesordataanalysistechniques
are dependent on the chosen paradigm. The paradigm allows the researcher to identify
his/her role in the research process, determine the course of the project and distinguish
otherperspectives(WilliamsE.,1998).
The research paradigms are positivism, interpretivism and critical theory. Positivism and
interpretivismaredifferentinsuchawaythatinterpretivistresearchgoalsareusuallyaimed
forunderstanding,contrary to thatof theexplanationaimofpositivistgoals. Interpretive
researchers see theworldascomplexanddynamicand try tounderstandhowothers see
theworldorconstructmeaning.Thegoalistoseektoknowwhythingsarehappeningina
particular context. Thus, interpretivism raisesquestions abouthowweobtain knowledge
about theworld and nature of knowledge is based on observable phenomena, subjective
beliefs, values, reasons and understandings. “The subjective process promotes cultural
conditionsofasocietyandanunderstandingofwhythingsoperate”(Pope,2006).Inductive
reasoning is used here. Methodologically, the researcher plays a role of being the co‐
creatorofmeaning.Asthestudyisoneofexploration,theresearcheralsobringsherown
subjective experience to the research and tries to develop an understanding of the
phenomenonandadeepunderstandingofhoweachpart relatesand is connected to the
wholephenomenon.
42
Inthisstudy,interpretivismisappropriateasthenatureoftheknowledgearederivedfrom
observablephenomenainthechosenhotel.Itisacknowledgedthatthepersonsconcerned
have subjective views on the importance and feasibility of having an environmental
managementprograminplace. Ittakesonrealityandhowpeoplelookatthesituationas
the basis for creatingmeaning. It looks into how things are currently operating, why the
managers behave theway that they are behaving right now. The understanding of the
researcher regarding the phenomenon, based on theories are brought into the research
togetherwith the data gathered fromdifferent stakeholder groups of the organization to
createadeeperunderstandingofthephenomenon.
• ResearchApproach
Inductionanddeductionarevaluabletoolsthatfacilitateproblemsolving.Onelooksatthe
general characteristics in a set or group of observations (deduction). The other one
identifiesaparticularresemblancetoagroupofknownobservations(induction)(Silverman,
2005).
Induction is making inferences of a general law from observation of particular instances,
while to induce (in relation to science and logic) means to suggest or end up with a
conclusionasderivedfromreasoning(Rothchild,2006).Inductionisputtingintoanorder
orrulethefeaturesoracombinationthereofthatarefoundinthedatamaterial. Itdeals
withextendingandgeneralizingtheinformationavailable(Flick,Ernst,&Steinke,2004). In
qualitative induction, theexistenceofqualitative features ina sample isused to infer the
presenceofotherfeaturesthatarenotperceived.Allscientificproceduresthatarefound
from collected data; new versions of what is already known are based on qualitative
induction(Flick,Ernst,&Steinke,2004).
Considering theselectedparadigmof thestudy, Induction is theappropriateapproach for
thisstudy.Thisisbecauseitisessentialtofirstlookintothecurrentfactsandtheviewsof
the different stakeholders on environmental management before a broader and more
general conclusion may be reached, which is to point out a strategy for the whole
organizationandnotonlyforaspecificdepartment.Fromthespecificindividualinterviews,
wecombinetheresultsthecommonfeaturesthatwerenotinitiallyperceivedwereputinto
order.
43
3.3 DataCollectionProcess“Methodologyshapeswhichmethodsareusedandhoweachmethod isused”(Silverman,
2005).Therearetwomethodologiesinresearch,quantitativeandqualitativeresearch.Both
havedifferentstrengthsandlogics,whichareappropriatefordifferentpurposes.
Quantitativeresearchreliesontheattainmentofaprecisemeasurementofsomethingfor
descriptions,explanationsandpredictionsaboutaphenomenon.Inordertoattainaprecise
measurement, its sample design is usually large and based on probability. The research
design,selectedbeforestartingthestudy,remainsconsistentuntiltheend.Eithersingleor
mixed methods are used in quantitative research (Cooper & Schindler, 2011). The most
commonmethods of data gathering are by conducting surveys and experiments. Survey
resultsprovideanumericdescriptionofasample, inwhichresearchersgeneralizefindings
to a population. In experiments, cause‐and‐effect relationships are tested. Experimental
variables aremanipulatedby the researcher andaredeterminedwhether it influencesan
outcome(Cresswell,1994).Statisticalandmathematicalmethodsareusuallyusedfordata
analysis,maintainingacleardistinctionbetweenfactsandjudgments(Cooper&Schindler,
2011).
Qualitative research isdone inorder tounderstandand/or interpretaphenomenon. The
researchertakespartindatagatheringandoftenimmersesoneselfintheissuetoprovidea
detaileddescriptionofwhatiscurrentlytakingplace.Thesamplesizeisgenerallysmalland
itsresearchdesignisadjustedthroughoutthestudy(Cooper&Schindler,2011). Common
data gatheringmethods include observations, conducting interviews, analyzing public and
private documents, examining physical evidence, photographs and videos and taking
photographs and videotapes (Cresswell, 1994). Multiplemethods are customary and are
donesimultaneously.Dataisregularlyintheformofverbaldescriptionsanddataanalysisis
ongoingthroughoutthecourseofthestudy(Cooper&Schindler,2011).
Qualitativeresearchclaimstodescribetheworldfromthepointsofviewofthepeoplewho
participate.Thismethodbringsabetterunderstandingoftheprocesses,meaning,patterns
and structural features of social realities (Flick, Ernst, & Steinke, 2004). The inductive
approachofqualitativeresearch,with itsfocusonspecificsituationsorpeople,andwords
ratherthannumbers,givequalitativeresearchitsstrength(Maxwell,1996).
44
Themixed‐methodologydesigniswheretheresearchercombinesaspectsofthequalitative
and quantitative methods at all or many methodological steps in the design (Cresswell,
1994).Inthiscase,theresearcherisinterestedinmeaningsandrelationshipsbetweenthe
managers’viewsanddifferentfactorsandactorsaffectingtheirdecisionsandthesupplier’s
views. Qualitative methods were employed in finding out the said meanings and
relationships.Moreover,asurveywasalsoconductedamongemployeesandcustomers,in
ordertobeabletoclearlypointoutthedifferencebetweenfactsontheirviews,asshown
bythesample’sresultsand judgmentsasstated intheory.Therefore,bothqualitativeand
quantitative datawere collected,making the study amixed‐method research. The study
usesmethodologicaltriangulationasamethodofprimarydatacollection. Triangulation is
basedon the assumption that any bias in a data sourcewill be neutralizedwhenused in
conjunction with other data sources and data collection methods. It will help achieve
credibilityoftheevidencecollectedandconclusionsmade(Cresswell,1994).
Thepurposeofthestudyistounderstandthemeaningoftheevents,situationsandactions
oftheparticipants,namelythemanagersinthisparticularcontext.Theirperspectiveonthe
differenteventsandactionsrelatedtothephenomenonbeingstudiedispartofthereality
thatwearetryingtounderstand.Theresearcherisalsointerestedinhowtheparticipants
are making of their understanding of the current factors and conditions concerning the
hotel’senvironmentaleffortsandhowthoseareinfluencingtheirbehaviortowardsthose.
The purpose weremainly addressed by conducting qualitative interviews withmanagers.
This means that the qualitative method of conducting interviews predominates the
quantitativemethodtobeemployed,whichareintheformofsurveys.Thesemethodshelp
determine common themes and detect patterns and relationships on the views of the
different stakeholder groups. This mixed‐method research is done to increase the
representativenessofdata(Silverman,2005).
The goal of the study is to suggest a competitive environmental strategy forMarco Polo
Davaobylookingintothefactorsthatinfluencethegeneralmanager’sdecisions.Withthe
managersbeingthemaindecision‐makers,theinterviewswiththemanagersaretherefore
theprimarymodeofthedatacollectioninthisresearch.Supportingdatawerealsoderived
frominterviewswithsuppliers.Anothermethodofdatacollectionemployedwasthesurvey
45
conducted with employees and customers. The researcher personally conducted all the
interviews for the managers and the suppliers. The researcher took notes and asked
permission from the interviewees to record the interviews using an audio device for
documentation.Hotelstaffhelped ingivingoutthesurveys foremployeesandcustomers.
Secondarysourcesincludeexaminationofcompanybriefingsandreportsandthecompany
website.
3.4 InterviewsThe interview is one of themost significant sources of case study information. It usually
appears as guided conversations and the questions are usually more fluid than that of
surveys, where questions are usually more rigid (Yin, 2003). Case study interviews are
usuallyofopen‐endednature,inwhichtheopinionsandeveninsightsandproposalsofthe
keyrespondentsaboutspecificeventsandphenomenonaresought.Itcanalsobeafocused
interviewwhere questions are specifically worded so that there are less subjective input
fromtheresearcher,allowingtherespondenttopossiblyprovideadifferentperspectiveon
it (Yin,2003). Interviewsareadvantageous in that it isusefulwhen informantscannotbe
directly observed, the informant can provide historical information and it gives the
researcher “control” over the line of questioning. Although it can be advantageous in
numerous ways, interviews also have its limitations. It is limited in such a way that it
provides“indirect”informationfilteredthroughtheviewsofinterviewees.Itisalsosaidto
provideinformationinadesignatedplace,ratherthanthenaturalfieldsetting.Researcher’s
presencemayalsobiasresponsesanditshouldbeconsideredthatnotallpeopleareequally
articulateandperceptive(Cresswell,1994).
• Interviewwithmanagers
Face‐to‐face interviews were conducted at the managers’ offices in Marco Polo Davao,
during office hours. Semi‐structured interviews were conducted with the selected
managers. This formwas selected to allow themanagers to talk about the topic, as the
researcherwouldbenefitfromhearingtheiropinions, insightsandproposals. Sinceit isof
anopen‐endednature,thereisroomforthemanagerstoproposetheirinsights,whichcan
beusedasbasis for further inquiry. Asetofprimaryquestions isdevelopedtoguide the
managers what to talk about and to help them avoid deviating from the topic. The
46
researcherfollowedthedesignedlineofinquiryandaskedquestionsinanunbiasedmanner
with friendly and non‐threatening open‐ended questions (Yin, 2003). This eliminated
defensivenessandallowedtheresearchertoopenlyspeakabouthis/herinsights,proposals
andsuggestions.
Themanagers’ interviewwasof3parts. Inthefirstpart, themanagerswereaskedabout
theirjobanddepartmentbackground,includingcurrentenvironmentalefforts.Thesecond
partsoughtinformationabouttheirhowtheyperceivethedifferentfactorsthataffectthe
choice of an environmental management. The last part consisted of a short structured
interviewon facilitators andbarriers of environmentalmanagement. Themanagerswere
presentedalistof13facilitatorsand6barriersandwereaskediftheyconsidereachitemas
afacilitatororbarrier,onlyasasecondaryfacilitatororbarrierornotafacilitatororbarrier
atall.
Themanagerswere selectedbasedon thepremise that their job functions allow them to
contributetoenvironmentalmanagementplanningandthedepartmentstheymanagemay
possibly benefit from the adoption of environmental efforts in the hotel. The following
managerswereinterviewed:GeneralManager,TechnicalManager,ExecutiveHousekeeper,
Assistant Executive Housekeeper, Director of Human Resources, F&B Training Manager,
Food&BeverageManager,RestaurantManager,BanquetManager,ExecutiveChef,Director
ofSales&Marketing,FinancialController,PurchasingManagerandtheSecurityDirector.
Inadditiontothefourteen(14)managersmentionedabove,theowner’srepresentativewas
included. The owners’ representative is designated as the Senior Vice President of the
owning company‐ Halifax Davao Hotel. His main role is to look after the interests and
investmentsoftheownersbymonitoringthehotel’soperations.Heisprimarilyconcerned
with checking budget deviations, capital expenditures and final decisions on recruiting
employees.Heisalsoinchargeofallowingthepresentationofinvestmentproposalstothe
owners.
The managers’ interviews were mainly done to examine their views on environmental
management and the factors that affectmanagement’s decisions. The results from the
interviewswillhelppointoutcurrentsituationintermsofthemanagers’viewsandattitudes
47
and environmentalmanagement and how they currently perceive the factors. This then
enablesmanagementtohaveapositionintermsofdeterminingastrategyforthefirm.
• Interviewwithsuppliers
In addition to the interviews with the managers, four (4) suppliers were interviewed
regardingtheirviewsonsustainabilityandtheirwillingnesstohelpimprovethesupplychain
ofthehotelbymovingtowardsasustainablesupplychain. The interviewswerebriefand
semi‐structured as well. This is used to support the data and to help determine the
advantagesandchallengesthemanagementmaypossiblyneedtoaddressinmakingpolicies
forasustainablesupplychain.
3.5 SurveysAsurveyprovidesaquantitativeornumericdescriptionofasample.Datacollectioninthis
method generally refers to a sample of people being asked questions on one occasion‐
eitherorallyorthroughaquestionnaire.Themainpurposeofthesurveysconductedinthis
study is to obtain descriptive statistics, which reflect the population’s view (Cramer &
Howitt,2004).
• Surveyforemployees
Although this thesis deals about the possibility of adopting strategies and in addressing
issues inthecompanyaspointedoutbythemanagers,thefactthattheemployeesplaya
vitalroleinrealizingacompany’ssustainabilitystrategiescannotbeneglected.Thus,ashort
surveywith5questionswasgiventotheemployeestodeterminetheirviews,attitudesand
willingness to participate in a sustainability program. This is to help determine if the
employeesarewillingandinterestedineducationandtrainingandbeengagedinthehotel’s
sustainabilityprogram.Theanswerstothequestionsweremainlyintheformofyesandno.
o Surveyforcustomers
Customersbringinrevenuetoanybusiness.Inaservice‐orientedinstitutionlikeahotel,itis
important to know the customers’ demands and interests. This will enable the hotel to
designitsenvironmentalplans,withthecustomersinmind.Shortinterviewquestionnaires
with7questionswerehandedout tocustomersandprospectivecustomers. Thismethod
48
helpedtheresearcherfindoutifthereisgeneralinterestongreeneffortsamongtheguests
andifthereiswillingnesstopaymoreforit.Theanswerstothequestionsareinayesand
noformat.
3.6 DataAnalysisThe research has a qualitative approach based on a single method. The general analytic
strategyemployed in this study is to relyon theoreticalpositions’wherein the researcher
looks for patterns by comparing the findings with the theory laid down for the study or
findings from other studies (Yin, 2003). The data gathered from the interviews were
compiledandbrokendownintocodesorcategories.Thecodeshelp“identifythepatterns
and themes from the perspective of the interviewees.” Themes for analysiswere drawn
fromtheorganizedcodes(Cresswell,1994).ThesetofanalyticmanipulationsbyMilesand
Huberman (1994)was followed in order to successfully organize the data collected. The
methodinvolvessettingtheinformationintodifferentarrays,layinginformation/evidencein
differentcategories,creatingflowchartsforanalysis,tabulatingthefrequencyofeventsand
findings,andlastly,puttingtheinformationinorder(Yin,2003).
Quasi‐statistics refer to the “simple use of simple numerical results that can be readily
derived from the data” (as cited in Becker, 1970). It allows the researcher to assess the
amountofthedatathatsupportsaparticularconclusionordiscrepantinstances(Maxwell,
1996).Anexampleofthisistodeterminewhetherintervieweesshowapositiveattitudeor
a negative attitude toward sustainability and from how many different sources the
informationwereobtained.
Descriptive statistics summarizesandcompressesdata to identifyessential characteristics.
Basicstatisticalmethodsandmeasuresareusedtosummarizelargesetsofdata,whichlead
tomakingdescriptivestatementsaboutindividual,groupsorsocieties(Pierce,2008).Forthe
surveys,themodeisusedasthemeasureofcentraltendencytointerpretthedata.
The above‐mentioned procedures for data analysis are done in chapter 5‐ Findings &
Analysis.
49
3.7 Reliability&Validity“Unlessyoucanshowyouraudiencetheproceduresyouusedtoensurethatyourmethods
were reliable and your conclusions valid, there is little point in aiming to conclude a
research”(Cresswell,1994).
Validity is the extent towhich an account accurately represents the social phenomena to
which it refers (Hammersley as cited in (Silverman, 2005)). The so‐called validity threat,
whichis‘youmightbewrong’,isthekeyconceptforvalidity,whichoftencomesintheform
ofalternativeexplanations.Inqualitativeresearch,mostvaliditythreatsareruledoutafter
usingevidencecollectedduringtheresearch(Maxwell,1996).
Tostrengthenthevalidityoftheory,thediscrepantdataandalternativeexplanationswere
considered in theanalysis.Discrepantdata refers todata thatdisagreewith themajority.
Furthermore, triangulation was in data gathering by ensuring that key informants come
different departments and have different ranks within the hotel. Suppliers were also
considered for interviews. This reduces the risk of systematic biases and gives a higher
chance of the generality of explanations derived from the assessment of data (Maxwell,
1996).
Reliabilityisthedegreeofconsistencyinwhichinstancesareassignedtothesamecategory
eitherbydifferentobserversorbythesameobserversondifferentoccasions(Hammersley
ascited in(Silverman,2005)). It isademonstrationthatthedatacollectionproceduresof
the study can be repeated and will yield the same results. Reliability has the goal of
minimizingerrorsandbiasesinastudy(Yin,2003).
To secure the reliability of the study, the context inwhich datawere gathered, including
focusofthestudy,theroleoftheresearcher,theprofileofthe intervieweesandbasisfor
selection are stated clearly (Cresswell, 1994). Proper documentation of data collection
proceduresandconsistentuseofcategoriesarepresented,togetherwithadetailedreport
of analysis (Silverman, 2005). Triangulation, as explained above, is used to support the
reliabilityofthestudy.
External validity refers to the validity of a conclusion beyond the setting being studied
(Maxwell,1996).Inthisstudy,externalvalidityisnotacrucialissuesincethegoalisnotto
50
generalizethefindingstootherhotelsintheindustrybuttoexplainwhatisgoingoninthe
particularsetting.Whatwillbeuncoveredinthisstudywillbeapplicableonlyforthiscertain
case and is not generally true for and will not be applied to other organizations in the
industrysincetheunderlying factors for thestudywillbedifferent.However, thetheories
derivedfromthefindingscanbeusedasabasisforcomparisoninsimilarfuturestudies.
3.8 Limitations
Thestudy issubjecttoafewlimitations. First, thefindingsarederivedfromthecaseofa
particularhotelandtheanswertotheresearchquestion;specifically theselectedstrategy
may only be applicable for the selected hotel. However, the general results on the sub‐
questionspertainingtothefactorsandactorscanbeusedforhotelinasimilarsituation,size
orbusinessenvironment. Second,theremaybebiasesintheanswersofthemanagers, in
orderfortheorganization’sperformanceandimagetolookbetterthanwhattheyreallyare
inreality.
51
4. TheCase Marco Polo Hotel Davao is used as the case in this thesis. This chapter provides a
background of the Philippine hotel industry, a history of Marco Polo Hotel in Davao, its
business model and current situation. Information presented in this chapter is mainly
gatheredfrommarketreports,companybriefings&interviews.
4.1 ThehotelindustryinthePhilippines
ThePhilippinehotelindustryhasincreasedinvalueby12%in2010.Itstotalvalueisnowat
PHP60.4billion.ForecastfiguresshowthatthehotelindustryinthePhilippinesisexpected
togrowfurtherfromPHP60.4BilliontoPHP88.2Billionin2015.Chainedhotelsaccountfor
majorityofthemarket,at58%(EuromonitorInternational,2010).
MarcoPoloDavao is located in thethird largestcity in thecountry in termsofpopulation
andeconomicrevenues.ItisalsothemainbusinesscenterintheislandofMindanao.The
overallregionisgrowingandthehoteltakesadvantageofthisgrowthinthecityandnearby
provinces(Mauhay,2012).
4.2 TheHotelThe Marco Polo Davao was inaugurated in the year 1998 and is the only international‐
chained hotel in Davao and inMindanao. It is positioned to be the choice for first‐class
accommodationinDavaoCityandtoalsocontributetothegrowthofDavaoandMindanao
asapremierdestinationinthePhilippines(MarcoPoloDavao,2012).Ithasbeenandisstill
thelocalbenchmarkinthearea’shotelindustry.
It has 245 rooms, which it maintains and operates up until this day. Its room rates are
normally25%higherthanitsmaincompetitorsinthearea,notablytheApoViewHoteland
theWaterfrontInsularHotel(Mauhay,2012).Despiteitshighroomrates,itremainstobe
themarketleaderinthearea.Thisisattributedtothehotel’shighinternationalstandards
andforbeingtheonlyhotelinthecitythatispartofaninternationalchain(Mauhay,2012).
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4.3 BusinessModel
TheMarcoPoloDavaoisalocallyownedproperty(byHalifaxDavaoHotelIncorporated)and
ismanagedbytheMarcoPoloHotelGroup.Thismeansthatallitsstandardsandbusiness
operations are in accordance with that of the prescribed model by Marco Polo Group
(Serafin,2012).
TheMarcoPologrouptakesprideinitsembodimentofAsianwarmthandWesterncomfort.
IthasninepropertiesinAsiaanditisnowestablishedasoneoftheleadinghotelbrandsin
the region (Marco Polo Davao, 2012). Ms. Jonna Serafin, the HR Director, said in an
interviewthattheMarcoPoloGroupisopentoembracingchangeifitisforthebetterment
of its hotels, as mainly reflected by improvements in its financial performance. The
individual hotel can also customize its operations according to its needs and market
demands, as decided by the management team and approved by the general manager.
However, it should be communicated and pre‐approved by theMarco PoloGroup before
implementingthechanges(Serafin,2012).
Marco Polo Davao’s client base comprised of 80% business customers and 20% leisure
customers. Of its business customers, 90% are from domestic arrivals while 10% are
internationalarrivals. Thus, itsmaintargetmarket iscomposedofbusinesstravelersfrom
locallybasedcompanies(Mauhay,2012).
4.4 CurrentbusinesssituationMarcoPoloDavao is currently themarket leader in thecity. Itsmarket share in termsof
revenueisat38.77%‐YTDJune2012(MarcoPoloDavao,2012).
Although the business has been growing steadily since its establishment, it is anticipating
toughercompetitionin2013. Withtheregion’shighgrowthrate,twoboutiquehotelsare
currentlybeingbuiltandareset toopen inDavaoCity inthefirstquarterof2013. These
hotels arePark InnbyRadisson, the first in SouthEastAsia andKukun, aPhilippinehotel
chain. Both hotels however, are boutique hotels and are expected to target a different
marketthanthatofMarcoPolo.Itisexpectedtofillinthegapbetweentheratesofferedby
MarcoPoloanditscurrentclosestcompetitors.MarcoPolowillstillserveitscurrentmarket
andisnotplanningtoloweritsratesinordertomaintainitsimageandstandards.Itexpects
53
to continually be a notch above its current and prospective competitors in terms of the
brand,amenities (i.e.MarcoPolo’sContinentalClubroom)andservicedeliverystandards.
Its sales department however, still expects a tough year ahead and it is aggressively
improving its marketing efforts by offering competitive corporate rates to prospective
corporateclientsandarrangingtie‐updealswithtouroperatorsandresortsinthearea.Ms.
Mauhayhowever,admitsthattheyhavetoexploremoreeffortsforthehoteltoberesilient
to tougher competitionand for it tobeable tomaintainagood financialpositiondespite
upcomingmarketchallenges(Mauhay,2012).
Thedepartmentsandmanagersunderstudy
MarcoPoloDavaohasamanpowercomplementof326,with277(85%)regularemployees
and 49 (15%) contractualworkers (Serafin, 2012). It has nine departments,which are all
beingsupervisedbythedesignatedgeneralmanager.TheseninedepartmentsareFoodand
Beverage,FrontOffice,Housekeeping&FitnessCenter,Sales&Marketing,Finance,Human
Resources,TechnicalandSecurity(MarcoPoloDavao,2012).
4.4.1 CurrentenvironmentaleffortsofMarcoPoloDavao
Thehoteliscomplianttolocalgovernmentenvironmentalrequirementsasmandatedbythe
Davao‐CENROortheCityEnvironmentandNaturalResourcesOffice,undertheDepartment
of Environment and Natural Resources (DENR). The CENRO Office has set guidelines for
waste segregation, wherein all waste should be segregated into biodegradable, non‐
biodegradableandresiduals(i.e.sachets,deodorantbottles). InlateJune2012,ithasalso
startedtoimplementthebanontheuseofplasticbagsinthecityandinstead,promotesthe
use of paper bags or biodegradable plastics. These are the only legislations that are
currentlyinplacethatthehoteladheresto.Atpresent,thesegregationisputinplaceinthe
F&BandHousekeepingdepartments.
MarcoPoloDavaosubscribestotheCorporateSocialResponsibility(CSR)Frameworkofthe
MarcoPoloGroup.Ithasenvironmentalmeasuresputinplace,whicharenotrequiredby
thegovernment. Thishas ledthehotel toreceivetheASEANGreenHotelAward in2009.
These efforts are discussed in the following section and presented by department
implementation.
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• Administration
Accordingtothegeneralmanager,thehotel’scurrentenvironmentalactivitiesarerelatedto
cost savings. Water and electricity problems are being addressed by energy saving and
trying to reducecosts. He states thatdecisionsonenvironmental investmentsare largely
dependentontheowners’willingness.Hethinksthatthereshouldbecompanypoliciesfor
decisionsonenvironmentalinvestments,asthereisnoclearpolicyinplaceatthemoment.
The financial controller said that they do not do any environmental measures in their
department but they do consider, examine and approve for presentation to the board of
directors,theproposalsfor investmentsinenvironmentaltechnologies. Underthefinance
departmentisthepurchasingdepartment,inchargeofitemsandsuppliesprocurementfor
thehotel. Thepurchasingmanagersaidthathisdepartmentdoesnotdirectlydoanything
towardsbeingenvironmentallyfriendly.Thepurchasingdepartmenthashighstandardsfor
itssupplierstocomplywith.Itdoesroutinecheck‐upswiththeproductsandfacilitiesofits
suppliers,especially for foodandbeveragesuppliers. Formeat suppliers, theyonly select
thoseaccreditedbytheNationalMeatInspectionServiceandpreferGMP‐HACCPaccredited
suppliers for the other products. GMP‐HACCP is quality assurance system for food
processors and services operating in Philippines. It identifies and evaluates food safety
hazards (chemical,biologicalorphysical agents in food) that canaffect consumer’shealth
(Philippine Exporters Confederation Inc., 2011). Other than being strict on workplace
environment and product hygiene, the department does not require other specific
environmentalrequirementsfromitssuppliers.
TheDirectorofsalesandmarketingsaidthatthedepartmentisinchargeofCorporateSocial
Responsibility(CSR),whichfocusesmoreonsocialefforts.Itisalsoinchargeofintegrating
greenmarketing into its campaigns. However, it is not currently very active in these two
areassince it isanticipatingtheentryoftwonewmajorcompetitors inthemarketandits
mainconcernatthemomentistomaintainitscurrentmarketshare,
TheHumanResourcesDirectorsaysthattherearenocurrentprogramsatthedepartment
aside from staff training in order for the hotel to be able to successfully implement its
55
compliance to government‐mandated legislations on waste segregation and non‐use of
plastics.
• Food&BeverageDepartment
ForF&BOffices,theypracticerecyclingandreductionofpaperused.Thetrainingmanager
dealswithintegratingsafetyandhygienepracticesintothetrainingprograms,especiallyfor
newhiresandonthejobtrainees(OJT).TheF&Btrainingmanageralsoorganizesseminars
andtrainingsfortheF&Bassociatesonbeingenvironmentallyfriendly.
Therestaurantmanagerseestoitthatenergyandwaterconsumptionisreducedasmuchas
possible. He also tries to see to it that the use of bottles and breakages areminimized.
Aside from that, the restaurantmanager also oversees themaintenance of greens in the
area.
The executive chef has pointed out that the kitchen maintains high sanitary and
environmental standards. They operate in partnership with Ecolab, the global leader in
water,hygieneandenergytechnologies. Ecolabproductsandservicesaregearedtowards
helping its client keep their environments clean and safe, operate efficiently and achieve
sustainability goals (Ecolab, 2012). The F&B Kitchen department specifically works with
Ecolab in meeting international safety standards for food processing, specifically GMP‐
HACCPguidelines.DoingthishelpsthedepartmentprepareforitsapplicationforaHACCP
certification in the near future. The department also pays an external consulting firm,
Intertek,toaudititsperformanceinfoodsafety,watersamples,andfacilities.
Other specific environmental efforts done by the F&B department are enumerated in
AppendixE.
• TechnicalDepartment
The technical departmentmainly carriesout the requirementsof thebuilding, equipment
and even maintenance tasks such as repainting. The technical manager is a qualified
PollutionControlOfficerbytheDepartmentofEnvironmentandNaturalResources(DENR)
anddoesthesameroleforthehotel.Heistheonewhospearheadsprojectsforenergyand
water conservation, including projects on environmental technologies. He said that the
department’smaingoalisforenergyusereduction.
56
Under its energy management program, it has replaced its lamps with energy‐efficient
lamps, saving the hotel a total of 181,202 kWh per year. It has installed VPD (vacuum
positive displacement) to selected pumps and blowers, saving 306,810 KWh. They are
currentlyata70%replacementcompletionrateandtheaimistofinishitwithintheyear.
Moreover, it has installed steamwater heat pumps for the hot water system instead of
using diesel power and it hasmoved from using single split‐type air conditioners to VRF
(Variable refrigerant flow)airconditioners, savinga totalof62,290kWh.There isalsoan
on‐going replacement of existing high rating steam boiler (200 BHP) with a smaller unit
(40BHP),saving18,000litersofdieselfuelperyear.
TheycurrentlygiveusedoiltorecyclerslikeHolcimPhilippineswhoprocessitanduseitas
fuel. They are also starting the practice of bringing used cooking oil to a biogas plant to
convertitintobiofuel.However,itscostsequalitssavingsonfuelexpensesthusthereare
noprofitsfromitatthemoment.
Asidefromhavingtheenergymanagementprogram,thetechnicaldepartmentalsohandles
thesolidandwaterwastemanagementprogram.Solidwastesareeitherputinarecyclable
bin, a biodegradable bin or a residual bin. Recyclables are sorted by scrap buyers and
broughttoscrapbuyingstations.Leftoverfoodfromthebiodegradablebinarecollectedand
fedtolivestock.Theremainingsolidwasteisdumpedatthecitydumpsite.Allofthehotel’s
wastewateristreatedinasewagetreatmentplant,senttoasewageejectorpitandsentto
thecitydrainagesystem.
Otherspecificenvironmentaleffortsdoneby the technicaldepartmentareenumerated in
AppendixF.
• SecurityDepartment
Thesecuritydepartment is incharge inmakingsure that theenvironmentalmeasuresare
being carried out correctly. It mainly controls and double‐checks the garbage and if
segregationactionsarecarriedoutright.Forsafetypurposes,italsochecksproperhandling
ofchemicalsduringdeliverybeforeitisallowedinthehotelpremises.Furthermore,itworks
together with the technical department by monitoring if the measures put in place is
properlyfollowedandexecuted.
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• HousekeepingDepartment
The Housekeeping department mainly implements the waste segregation efforts of the
hotel,which is in compliancewith local legislation. Togetherwith theHR department, it
presentlyrunsaninformationcampaignandtrainingonwastesegregationforassociates.In
compliance to the legislation on non‐use of plastics, bio bags are being used for laundry
bags.
Otherspecificenvironmentaleffortsdonebythehousekeepingdepartmentareenumerated
inAppendixG.
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5. Findings&AnalysisThepurposeofthisresearchistosuggestacompetitiveenvironmentalstrategythatMarco
PoloDavaocanemployinitsoperationsbyexaminingthedifferentfactorsandactorsthat
influence the departmentmanagers’ suggestions and the generalmanager’s decisions on
environmentalstrategies. Inchapter2, thedifferentcompetitiveenvironmentalstrategies
that companies may adopt in its operations were investigated. Individual manager
interviewswerechosenasthemethodofcollectingdatainordertohaveabackgroundon
thecurrentbusinessconditionsandthehotel’scurrentenvironmentaleffortsasdiscussedin
chapter4.Moreimportantly,theinterviewsprovideddataonthemanagers’perceptionson
the different factors and actors that influence their suggestions and decisions on
environmental management. Supplier interviews and employees and customers surveys
werelikewisedonetodiscerntheirviewsandopinionsonenvironmentalmanagement,are
deemedhelpfulinsuggestingastrategyforthecompany.
This chapterpresents the resultsof themanagers’ interviews, structuredaccording to the
researchsub‐questions. This is followedbytheresultsandanalysisofdatacollectedfrom
suppliers’ interviews and employees and customers’ surveys. A presentation of the
recommendations derived from the data collection process on the four action areas on
environmentalmanagementconcludesthechapter.
5.1 InterviewswithManagers
Themanagerswere themain focusof the interviews. Thedepartmentmanagers are the
decision makers in their own units. Their suggestions have an impact on the general
manager’sstrategicdecisions. Inturn,howtheymaketheirsuggestionsanddecisionsare
influencedbydifferentfactorsandactorsspecifically,thesuppliers,theemployeesandthe
market,asrepresentedbythecustomers.
59
5.1.1 Managers’roleonenvironmentalmanagement
As earlier stated, there is a positive relationship between management’s perceptions on
environmentalmanagementandtheadoptionofproactiveenvironmentalstrategies(Lopez‐
Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
The interviews commenced with an investigation on the managers’ familiarity with
environmentalmanagement.Elevenoutofthe15managerswhowereinterviewedclaimed
thattheyarefamiliarwithenvironmentalmanagementandliketheidea,especiallythatthe
hotelalreadyhasenvironmentalmeasuresputinplace. Despitetheirperceivedfamiliarity
withthetopic,uponfurtherdiscussionswiththemanagers,itwasascertainedthatmostof
themonlyhadageneralfamiliaritywiththetopicanddidnotunderstanditfully.Inferred
fromthecommonresponsethattheyarenotexpertsonthefield,moreeducationisneeded
andthatthereisnoclearsystematthemoment.
Thedepartmentmanagerspointedout that theyarewilling tobeengagedand suggested
actionsforenvironmentalissuesfacedbytheirdepartments. Thegeneralmanagerargued
that for the hotel to be successful in its environmental efforts, all departments must be
involved.Thismeansthegeneralmanagerwillconsiderthesuggestionsofthedepartment
managersinmakingenvironmentaldecisions.Thegenerallypositiveviewonenvironmental
management by the majority of the managers indicate that Marco Polo Davao may
potentiallydrawonenvironmentalissuesasaplatformtogaincompetitiveadvantages.
5.1.2 Factors’ influence on managers’ decisions in the choice of an
environmentalstrategy
o EnvironmentalLegislation
As earlier pointed out, a positive view on environmental legislation facilitates the firm’s
exploitation of environmental management as an opportunity (Lopez‐Gamero, Molina‐
Azorin,&Claver‐Cortes,2010).
Thehotelisdoingitsbesttomakeendsmeetandcomplywithinthesoonestpossibletime,
despite complaints from some managers regarding the implementation procedures of
governmentagenciesonenvironmentallaws.Thegeneralmanagerpointedoutthatthere
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shouldbeatransitiontimegivenforthehoteltomakeplansforitsinventoryandintegrate
therequirementsofthenewlegislationintothebudget.
Most managers maintained that they are not bothered by the possibility that stringent
governmentstandardsmayhinderthehotel’scompetitiveness.Theypreferstandardstobe
put in place, as long as information is widely disseminated and the implementing are, in
considerationtotheneedsofthebusiness.
The findings show that environmental legislation directly influences the managers’
suggestionsanddecisionsinselectinganenvironmentalstrategy.
o Resourcesandcapabilities
Resources
Asearliercited,theavailabilityofresourcesaresaidtoinfluencethemanagers’perception
ofenvironmentalresponsibility(Lopez‐Gamero,Molina‐Azorin,&Claver‐Cortes,2010).
In the conduct of the interviews, the managers were asked if high costs involved in
environmentalmanagementisabarrier. Themajorityor67%agreethat it is,while16.5%
thinkit isonlyasecondarybarrierandtheremaining16.5%thinkthatit isnotabarrierat
all.
ForMarcoPoloDavao,resourcesforenvironmentalmanagementareavailablebutlimited.
There iswillingnessamongmanagers,especiallythefinancialcontrollerandtheownersto
allocate budgets for environmental management and environmental technologies.
However, the capacity for allocation is limited, especially in terms of investing in new
environmental technologies. The managers pointed out other priority areas for
improvement,suchasmaintainingorexpandingthecurrentmarketshareinthemidstofthe
entryofnewcompetitors. Mostmanagerssuggestthattheresourcesbeinitiallyallocated
for developing an environmentalmanagement system and for the full implementation of
environmentaleffortsandtechnologiesalreadybeingdone. Furthermore,theysuggested
thatallocationsfornewenvironmentaltechnologiesshallonlybedoneifthetechnological
costsandreturnoninvestmentsismorereasonablethanthecurrentrate.
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Generally,themanagersareoftheviewthatMarcoPoloDavao’senvironmentaleffortsare
limitedduetoresourceconstraints. Thisleadstotheinevitableconclusionthatresources
directly influence the manager’s suggestions and decisions in selecting an environmental
strategy.
Capabilities
The firms’ capabilities in terms of experience make the process of adopting an
environmentalmanagement program in amore efficientmanner (Lopez‐Gamero,Molina‐
Azorin,&Claver‐Cortes,2010).
Despitethefamiliaritywithenvironmentalmanagement,itwasuncoveredthatmostofthe
managersdonotunderstandtheconceptfully. Anothercommonresponsewastheclaim
that they are not experts on the field; thus a clear system and more education and
experienceareneededforthemtofullyunderstandtheconcept,toshowthewaytoamore
efficient planning and implementation process. The findings imply that environmental
capabilities arehighly influential in themanagers’ suggestionsanddecisions in selectinga
strategy.
o Facilitators/Opportunities
Studieshaveshownthat implementingenvironmentalpracticesbringsmanybenefits fora
hotel. Perceived benefits that bring in competitive advantage include improvements of
company image,deliveryof specific service, cost savings in themedium/long term,better
relationshipwith public authorities, increasing staffmotivation and compliancewith legal
requirements(Ayuso,2006).
All themanagers are in agreement that implementing environmental efforts will bring in
competitive advantage to the company, enhance the corporate image, reduce cost and
improve product quality and services. Themanagers are indeed conscious of the need to
maintainthehotel’sbrandreputationandhowitisregardedinthemarketasan“icon”and
astandardinbusinessinDavao.
The followingare the facilitators themanagers regardas the focal reasons thatprompted
the hotel to implement environmental efforts: government and managing company
requirements, cost reduction,better corporate image,public recognitionandpreservinga
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healthierenvironment.Theseopportunitiesareconsideredtohavedirectinfluenceonthe
managers’suggestionsanddecisionsinselectingacompetitiveenvironmentalstrategy.
Somemanagersregardthefactorssuchassuppliers,employees,customersandinvestorsas
onlysecondary,withstrongsuppliertiescominginasthestrongestfactoramongthefour.
Ontheotherhand,onlyafewmanagersthinkthatemployeesareinterested.Themanagers
do not regard it though as a facilitator and a competitive advantage that environmental
managementcanbring.
Thefindingsagreewiththeory,whichstatesthat,perceivedfacilitatorsinimplementingan
environmental program include cost reduction, revenue improvement, stronger supplier
ties,qualityimprovementandahealthierenvironment(Nidumolu,Prahalad,&Rangaswami,
2009).
Facilitators/Opportunities Yes Only
secondary
No
Required by government or managing
company
100% 0 0
Cost reduction 100% 0 0
Revenue improvement 33.33% 58.33% 8.33%
Competitive advantage 100% 0 0
Stronger supplier ties 75% 8.33% 16.67%
Better quality of products & services 91.67% 0 8.33%
Performance & quality improvement 75% 0 25%
Better corporate image 100% 0 0
Public Recognition 100% 0 0
Healthier environment 100% 0 0
Pressure of customers 0 33.33% 66.67%
Employee interests 33.33% 25% 41.67%
Investors’ demand 66.67% 16.67% 16.67%
Table 2: Survey results for facilitators in implementing an environmental management
program
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o Barriers/Challenges
Sixbarrierswerepresentedtothemanagers.Intheory,costispointedouttobethemain
barrierinimplementinganenvironmentalprogram(Lopez‐Gamero,Molina‐Azorin,&Claver‐
Cortes,2010).Also,insomebusinesses,lackofinformationistreatedasabarrier,aswellas
resistance to change (Shrivastava, 1995). These are all confirmed by the results of the
manager’s survey on barriers. The results demonstrate that the main barrier to
implementingenvironmentalefforts,wherein80%ofmanagersagreed, ishigh investment
costs.This is followedbyresistance tochange,whichgarnereda58.33%response. There
aredisparitiesintheresponsesintermsoftheenvironmentaleffortsnotmeetingshortterm
goals, which garnered a 50‐50 score and having no idea on what to do, which garnered
about thesamescoreaswell. Absenceofknowledgeornotknowingwhat todo likewise
provedtobeamainbarrierandissuesonenvironmental legislationwerealsoraised. The
managers’ comments agree with theory to wit: that legislation is usually unclear and
unfocused.
Highcostsandalackofknowledgeandcapabilitieshaveadirectinfluenceonthemanagers’
suggestionsanddecisionswhile the challengeofexertingmucheffort in implementingan
environmentalmanagementprogramonlyhasaminimalinfluence.
Barriers/Challenges Yes Only
Secondary
No
High investment costs 80% 16.67% 16.67%
Does not meet short term goals 50% 0 50%
No idea on what environmental efforts
to do
41.67% 8.33% 50%
Resistance to change 58.33% 0 41.67%
Too much effort in implementing a
program
25% 25% 50%
It makes the company less competitive 8.33% 0 91.67%
Table3:Surveyresultsforbarriersinimplementinganenvironmentalmanagementprogram
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5.1.3 Actors/Stakeholders’ influence on managers’ decisions in the
choiceofanenvironmentalstrategy
The following sectionpresents themanager’sperceptionson the importanceof the three
groupsofstakeholders,namely:theemployees,thesuppliersandthecustomersintermsof
influencingdecisionsinchoosinganenvironmentalstrategy.
o Employees
Theemployeesareconsideredtobethemainplayersofenvironmentalsustainabilityinthe
hotelandtheirinterestthereonisrelevantfortheymaketheinvestmentsproductive(Block,
1998).
Amongthe15managersinterviewed,only33%believethatemployees’interestsplayavital
role in making decisions regarding the company’s environmental management program.
Most of the respondents (41.67%) said that employees’ interests do not facilitate their
decisions on environmental management and another 25% claimed that it is only a
secondaryfacilitator,meaningitisconsideredonlyafterthemoreimportantfacilitatorssuch
ascostsandotherfactorsaretakenintoaccount.
The managers do not regard employees’ interests as an opportunity and a competitive
advantage that environmental management can bring. The findings from the managers’
pointofviewdonotagreewiththeorythusimplyingthatemployees’viewbarelyinfluences
thedecisionsofmanagementinselectinganenvironmentalstrategy.
o Suppliers
All the managers who dealt with suppliers claimed they have strict standards to make
certain thatdeliveredprovisions conforms to thehotel’s established standards forhealth,
hygieneandsafety.Theyputemphasisonrandominspectionandexaminationonsuppliers’
products,workingfacilitiesandeventhehygieneofsuppliers’employees.Thehotelrequires
them to be compliantwith the established standards, includingmandatory attendance to
seminars conductedby thehotel’s consultant in hygienic standards, the Ecolab. It is also
worthyofnote that thehotel recentlycut tieswith two local foodsupplierswhofailedto
passhygienicstandards
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Thehoteldealswithsuppliersbysettingperformancestandardsandgoals,whichembodies
aforcedcompliancestrategyratherthanacollaborativestrategy.Themanagersagreethat
this is an effective approach to ensure compliance by suppliers with the announced
standards. The importance of having stronger supplier ties is considered by 75% of the
managersasan important, ifnotacrucial, facilitator inarrivingatdecisions regarding the
hotel’senvironmentalefforts.
o Customers
None of the managers regard the pressure of customers as a key facilitator in making
decisions for thehotel’senvironmentalmanagementprogram. A fewmanagershowever,
saidthattheycouldmakeoutfromtheguestssomedegreeofinterestingreenefforts.But
mostmanagers assume that themarket is generally not interested in green efforts. The
managers’perceptionsofthecustomers’apparentnon‐interestingreeneffortsdonotagree
with the resultant theory fromUS surveys thatmajority of customersprefer greenhotels
(Euromonitor International, 2012). Therefore, the managers do not regard customer
pressure as a factor. Although to some extent, they consider customers as actors that
influencetheirenvironmentalmanagementsuggestionsanddecisions.
5.2 SupplierinterviewsSupplierinterviewswereconductedinordertoknowtheextentoftheircontribution,ifany,
towardsthegreeneffortsandtoappreciatetheirwillingnesstocooperateandcomplywith
the hotel’s environmental standards. This may aid management in determining what
direction to take in terms of integrating the suppliers’ behavior with its environmental
managementprogram.Thesuppliers’responsesmayalsoprovideabasisfortheselection
ofacompetitiveenvironmentalstrategy.
Interviewedwerefourhotelsuppliersofmeat,ice,waterandfruits&vegetables.Thefocal
point of the inquiry is their contribution, if any, on environmental efforts in their own
companies.
Themeat supply company is based inCebu, thePhilippines’ second largest city that is an
hour’splanetriptothenorth.Thesupplier‐intervieweeownsthecompanynamedGabriel
FoodCorporation,whichsuppliesmeatandbreakfast itemstodifferentclientsaroundthe
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country.HiscompanyadherestotherulesonGoodManufacturingPractices(GMP)andits
coldstoragefacilityalignsitsoperationswithISOmeasures.
Theotherthreesuppliersare locallybased inDavao. Allof themarecompliantwith local
legislationrequirementsofwastesegregationandaredoingtheirbesttofullycomplywith
the non‐use of plastics in their operations. The first local supplier interviewed was a
representative of the hotel’s ice supplier. He confessed that they have no specific
environmentalmanagementprogramintheircompanyalthoughtheyusethelatestinverter
technologies for their freezers to save on energy consumption. Recently, they renovated
their work premises and reconfigured their plant to allow the entry of natural light and
insulationsheetswereusedinceilingstoreduceheat.Theyusethermoplasticsfordelivery
ofthesupplies.
Theinterviewofthehotel’slocalsupplierofpurifieddrinkingwaterfollowed.Thesupplier‐
intervieweewas theProduction andQualityController of the companynamedWaterman
Davao. The company supplies 5‐gallonbottles and individual PETbottles. They currently
usenon‐biodegradableplasticsfor itswatercontainersbutareincontactwithsuppliersof
biodegradable containers to eventually implement theuseof biodegradableplastics. The
by‐productfromitsproductioniswaterwithionsandsalts,whichisdraineddirectlytothe
publicdrainageandsewagesystem.But theyplantorecyclewater tobeusedfor laundry
and washing. In fact, they have ordered, and are awaiting delivery of, a water tank for
storageofproductionwastewaterandtheeventualutilizationandrecyclingthereof. The
company follows GMP (Good Manufacturing Practices) Standards, complies with BFAD
(BureauofFood&Drugs),CityHealthOfficeandDOH(DepartmentofHealth)requirements.
Theymaintainhighqualitystandardstobeabletokeeptheirlicensetooperateandproduct
registrationnumber.
Thelastlocalsupplier(offruitsandvegetables)interviewedweretworepresentativesfrom
Eden Corporation, a company engaged in trading fruits and vegetables. Environmental
measuresbeingundertakenare theuseof a compostpit fororganic fertilizerproduction,
theoperationofhydroponicwaterpumpstosavewater,theutilizationofreusableplastic
cratesandtheemploymentofanautomatictemperaturecontrollerforitscoldstorage.
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Theresultsof,andtheoutcomeofthesuppliers’ interviewsshowthattheydonothavea
functioning environmental management program in their companies. Apparently, the
suppliersareexertingtheirbestefforttobeefficientintheirbusinessoperations,involving
toalesserextentsomedegreeofenvironmentalefforts.Otherthantheeffortsmentioned
in the findings from supplier interviews, they confessed that they have no other specific
environmentalmeasuresputinplace.Asasavinggracehowever,theyacknowledgedtheir
willingness to comply with whatever requirements imposed by the hotel for business
transactionstobemoreenvironmentallyfriendly.
5.3 Employees’survey
Hotel employeesplay a vital role for the successof anenvironmental program since they
deliver the services andmake the efforts happen (Block, 1998). The employees’ surveys
wereconductedtohaveaglimpseoftheemployees’interestingreenefforts.Thisisused
toshowwhetherthemanagers’perceptionsonemployees’interestsareatparwithreality,
asrepresentedbythesurveysample.
At random,employeeswereselectedandwereaskedto respondtoashortquestionnaire
concerningthegreeneffortsofthehotel. Therewereseventy‐five(75)respondents. The
questionnaire comprised of 5 questions. The first query is about the job title of the
employee. Thesecondquestion iswhether thehotelhasanyenvironmentalefforts. The
thirdquestioniswhethertheemployeeperformsanyenvironmentallyfriendlyefforts.Ifthe
answer isyes, then respondent isasked ifhe/sheperformsorexecutesanyenergysaving
measures, waste reduction measures, water conservation measures, recycling or others
(asked to specify). The fourth question iswhether he/shewants the hotel to havemore
environmentally friendly rules. The last question is if the employee iswilling to undergo
trainingprogramsforthehoteltoattainasuccessfulenvironmentalmanagementprogram.
Survey Questions Response rate
The hotel has environmental efforts 100%
I perform environmental efforts at work 98.67%
I perform energy saving measures 94.59%
I perform waste reduction measures 85.14%
68
I perform water conservation measures 81.08%
I recycle 70.27%
I perform other environmental measures 5.4%
I am willing to undergo an environmental training program 98.67%
Table4:Employees’Surveyresults
Thirty‐seven of the respondents answered yes to all the questions and checked all four
environmentalmeasuresmentioned.Fourmorehad the same responsebutalso specified
other efforts with 3 of the 4, citing garbage segregation and the fourth (a waiter/food
server)citingproperinspectiontoavoidbreakages.
Fourteen respondents answered yes to all questions and checked all environmental
measuresexceptrecycling. Fivedidthesameexceptforwastereductionandanotherfive
gave the sameanswer except for reducingwaste. Two answered yes to all exceptwater
saving.
Eleven answered yes to all plus one or two efforts, with water conservation as the only
effort they have not done. One respondent said that he/she has not done any
environmentaleffortsandanotherassertshe/sheisnotwillingtoundergotrainingforthe
hoteltoachieveasuccessfulenvironmentalprogram.
Fromtheresultsoftheemployees’questionnaire,itcanbeinferredthattheyaregenerally
awareaboutthegreenefforts.Therearesomediscrepanciesintheconsistencyofhowthey
docertainenvironmentalefforts. This showsanarea that canbedeveloped. The results
demonstrate theelevatedwillingnessamong theemployees to learnaboutenvironmental
management and contribute to the success of the hotel’s environmental program.
Moreover,theresultsareincontrasttothemanagers’perceptionsonemployees’interests
andtheweightofitsinfluenceinselectinganenvironmentalstrategy.
5.4 Customers’survey
Abusinessoperatesforprofitthusit isessentialtofulfillthedemandsofthecustomersto
satisfythemandcontinuepatronizingthehotel.Studieshaveshownthattherehasbeena
growing demand worldwide for green hotels (Euromonitor International, 2012). The
customer’s surveys were conducted to know if guests of the hotel are interested in
69
environmentallyfriendlyatmosphere.Theresultsarethenmeasuredagainstthemanagers’
perceptionsthatthemarketofthehotelisignorantabout,andaredisinterestedinagreen
hotel.
Thesurveysweredonebyrandomlygivingoutcustomerquestionnairestohotelguests,and
otherPhilippinetouristsataPhilippineimmigrationoffice.Hotelstaffandimmigrationstaff
distributed the questionnaires to the respondents. One hundred fifty (150) surveyswere
distributed and one hundred eighteen (118) surveyswere collected and considered valid.
Therewere90localrespondentsand28foreignrespondents.
The results fromboth touristgroups reveal that foreign touristsaremore informedabout
environmentally friendly hotels than local tourists. However, despite the disparity in
awareness,thereishighinterestionthesubjectinbothgroups.Onlyanegligiblenumberof
the respondents said they were not interested in staying at an environmentally friendly
hotel.
Figure6:Familiaritywithanenvironmentallyfriendlyhotel Figure7:Interestinstayingatagreenhotel
Almost all foreign tourist‐respondents have experienced staying at an environmentally
friendly hotel, as opposed to local tourists where only 40% said they have stayed in an
environmentally friendly hotel. For both groups, majority of the respondents who have
66%
34%
Ihaveheardofanenvironmentallyfriendly
hotel
Yes
No93%
7%
Iaminterestedinstayingatagreenhotel
Yes
No
70
previously stayed in an environmentally friendly hotel said that they enjoyed their stay.
Mostoftheforeigntourists(82%)saidtheypaidmorefortheirstayatanenvironmentally
friendlyhotelwhileonlyabouthalfofsaidpercentage,consistingofPhilippinetourists,said
theypaidmoreforit.Thereisahighpositiveresponserateforbothgroupswhenaskedif
theywerewillingtostayorstayagaininanenvironmentallyfriendlyhotel.Takingtheresults
together,itcanbegleanedthatmajorityoftherespondentswerewillingtopay3%more.A
significantnumberalsosaid theywerewilling topaymorethan3%. This is followedbya
groupnotwillingtopaymore,whichiscomposedoflocaltourists.
The survey shows that themarket, as represented by the sample is indeed interested in
greenhotels,asopposedtowhatthemanagersthink.
The following tables each summarize the results for local and foreign tourists in the
Philippines.
LOCAL TOURISTS Respondents Yes No
Have you heard of an environmentally friendly
hotel?
90 56.67% 43.33%
Are you interested in staying at an environmentally
friendly hotel?
87 91.95% 8.05%
Have you stayed in an environmentally friendly
hotel?
82 40.24% 59.76%
- Did you like your stay? 33 90.91% 9.09%
- Did you pay more for it? 30 40% 60%
Will you stay/stay again in an environmentally
friendly hotel?
82 95.12% 4.87%
+3% 3% 2% 1% 0 How much will you be willing to pay for it? 78
24.35% 25.64% 14.10% 15.38% 20.51%
Table5:CustomersurveyresultsforlocalPhilippinetourists
71
Table6:CustomersurveyresultsforforeignPhilippinetourists
5.5 RecommendationsonActionAreas
Inhavinganenvironmentalmanagementprogramforahotel,allthedepartmentsshouldbe
involvedinplanningandimplementingtheefforts.Butthereisnosingleguidelineforallthe
departments to follow. In hotels, the different departments have necessarily different
functions, thus theenvironmental impactsarenot the same foreach. It then follows that
eachofthedepartments,especiallythemanagers,havedifferentneeds,opportunitiesand
challengesintermsofsustainability.
The department managers’ perceptions on the factors and actors are reflected on their
suggestions for the four action areas. The common theme arising from the department
managers’suggestionsontheactionareashelpthegeneralmanagerdecidewhatstrategyis
bestconsideringtherecommendationsforthesaidactionareas.
FOREIGN TOURISTS Respondents Yes No
Have you heard of an environmentally friendly
hotel?
28 92.86% 7.14%
Are you interested in staying at an
environmentally friendly hotel?
28 92.86% 7.14%
Have you stayed in an environmentally friendly
hotel?
26 92.31% 7.69%
- Did you like your stay? 23 100% 0
- Did you pay more for it? 22 81.82% 18.18%
Will you stay/stay again in an environmentally
friendly hotel?
26 100% 0
+3% 3% 2% 1% 0 How much will you be willing to pay for it? 26
15.38% 53.85% 7.69% 7.69% 15.38%
72
The following section enumerates the recommendations on the action areas to be
addressedbythehoteldiscussed inChapter2. Therecommendationsaremainlyderived
fromtheresultsof thedatagatheringprocessand fromtheresultsof the interviewswith
themanagers.
o Developingitsgreenmanagementprogram
Themanagersadmitthatthereisnoclearstrategyandsystemintermsofitsenvironmental
efforts.Aclearsystemdesignedinaccordancewiththehotel’sneeds,maybedeveloped.
Havingahotel‐wideinformationcampaignonsustainabilityandenvironmentalmanagement
can be implemented in order for everyone in the hotel to fully grasp the meaning of
sustainability and what it takes to be successful in implementing an environmental
management program. The Green Team concept, which focuses on training and pooling
staff and managers who will be responsible for the firm’s environmental management
program(Scanlon,2007)maybeadoptedbyMarcoPoloDavao.Agreenteamcomposedof
different managers and associates from different departments may then be formed to
assumeresponsibilityofplanning,implementingandmonitoringthehotel’sgreenefforts,in
accordancewiththechosenstrategy.
Thegreenteamcanhaveplanningsessionswiththedifferentdepartmentstoaddressthe
possible areas of improvement within the respective departments in terms of enhanced
environmentalperformance.Incaseofdifficultyinstartingtheprogram,thehotelmayseek
help from consultants on, or experts in environmental efforts. Currently, the hotel has a
partnershipwithEcolabforitsfoodsafetymeasuresand,asindicatedbyitswebsite,Ecolab
isaconsultantforgreenmanagementimplementation.
Accordingtotheresultofcustomersurvey,almosthalfofthelocaltouristhavenotheardof
an environmentally friendly hotel but interested,whenmade to understandwhat it is. In
addition,morethanhalfofthelocaltouristsandalmostallforeigntourists,whoresponded,
are familiar with environmentally friendly hotels. This is contrary to the managers’
perceptionthatthereisanignorantmarket.Thesurveyresultsalsoshowahighinterestin
environmentally friendly hotels among its current and prospective guests. Not only that,
mostoftherespondentsarealsowillingtopaymorefor it. Thusthesalesandmarketing
73
teammaytakethisopportunitytopromotethehotel’sgreenefforts,byeffectiveintegration
intoitsmarketingcampaigns.
The human resources department may integrate the idea of being environmentally
responsible in its training programs, as recommended by the current HRmanager. Aside
fromthecurrentinformationandtrainingprogramformats,thedepartmentmayimplement
environmentally responsible social outreach programs, to be participated in by the
employees. Theseprogramsarenotonlyeducationalbutsociallyresponsibleaswelland
canenhancethehotel’sCSRperformance.
Lastly,sincethehighcostsofhavingasustainabilityprogram inplace isconsideredas the
main barrier, the green teammayworkwith the finance department to secure sufficient
budget for environmental efforts. This will make sure that investments made in
sustainabilitywillbereasonableanditsperformanceandreturnswillbewellsupervised.
o Energyefficiency
Thetechnicaldepartmentprincipallydealswithactionsonenergyefficiency.However,tobe
successful,cooperationwithallotherdepartmentsisnecessary.
Thegreenteammayhelpthetechnicaldepartmentbyencouragingallconcerned inevery
departmentcontributeideasonenergyefficiency.Continuousandregularresearchonthe
possibilities in energy efficiency and the keen supervision of its costs and returns is
suggested.
It is further suggested that Marco Polo Davao fully implements its current program and
effortsinenergyefficiency,likethehotel’sprogramofreplacingalllightbulbsintoenergy‐
efficientones.Otherpossibilitiesandrecommendationsmaythenbeconsidered.According
tothetechnicalmanager,therearecurrentplansofeventuallyre‐processingusedcooking
oil into bio‐fuel for the boilers which, blendedwith diesel fuel, will optimize combustion
expecting a reductionof 24 liters in diesel fuel per day and installing solar panels for the
hotel’swaterheatingsystem.Therearealsoenergyefficiencyeffortsthatwerevoicedout
by the different managers from different departments. They suggested that energy
efficiency efforts be implemented and should be monitored, possibly supervised by the
green team. Examples of the energy‐saving efforts include improved monitoring of
74
equipmentintheboilerrooms,exhaustsystemsandgenerators.Alsorecommendedisthe
adoptionofbettersystemssuchastheuseofautomaticdoorsespeciallyforpantrydoors.
Oneexampleofanoperationalenergy‐efficiencyrecommendationisthestrictmaintenance
ofpropertemperatureofthefridge,which,accordingtotherestaurantmanager,is,checked
onlywhenauditorswouldpayavisit.
o Reductionofwasteandresourceusemanagement
The segregation and recycling program of the hotel currently addresses the concern of
reductionofwasteandresourceuse.Thesegregationprogramisgenerallydoingwellbutit
can be extended to all areas of the hotel, including offices. Onemanager admitted that
segregation isnot implemented inhisofficebecauseofminimalwastematerials. This is
one area for improvement to ensure consistency in the implementationof environmental
policiesallthroughouttheproperty.
During the interviews, the managers pointed out some of their ideas in terms of waste
reductionandresourceimprovement.
• Usewater‐basedpesticide
• Usecarpetshampoowithlessharmfulcleaners
• Selectdishwashingliquidsthathavelessharmfulchemicalsbutareaseffective
• Noprintingoffoodlabelsinthebanquet
• Nopaperforsignage
• Useboxesastakeoutcontainers
• Reducedchemicalsinsoap
• Implementmoregreendesignsespeciallyinopenspaces
o Sustainablesupplychainmanagement
Both the management and suppliers are willing to do their part in order to have more
sustainablebusiness transactions. Inconsistencies inpolicies forsupplierswereuncovered
duringtheinterviews.Itissuggestedthatareviewbedonetoaddresstheinconsistencies.
Environmental requirements can be integrated in its policies with suppliers. This will
eventually help achieve a green supply chain. The purchasing departmentmay continue
75
searching for new suppliers to widen its choices, giving preference to those who offer
greener products. As for its current suppliers,Marco Polo Davao can encourage them to
adopt sustainablemeasures in their own businesses and to supply only environmentally
responsibleproducts.
76
6. Discussion
The interviews conducted with the managers and the suppliers and the questionnaire
answered by themanagers, the customers and the employees are all relevant forMarco
Polobecause theyprovideawindowshowinghow thedifferent stakeholdersof thehotel
think about environmental management. Knowing their views and opinions gives an
overview of the current situation as is and provides knowledge on how the factors and
actors influence themanagers’perceptions. Thedatagatheringprocessalsohelpedpoint
outiftheresultsarecongruentwiththetheory.Themanagers’viewsareconsideredtobe
the most important since they make suggestions and decisions on environmental
management. Theviewsofemployees,suppliersandcustomers,aswellastheiropinions,
arerelevantoncecomparedwith,andmeasuredagainstthemanagers’perceptionsonhow
theactorsinfluencetheirdecisions. Anysimilaritiesordifferencesbetweenthemanagers’
perceptionsandthestakeholders’opinionsaretakenintoconsideration.Usingboththeory
and the knowledge on actual circumstances gathered from the interviews and surveys, a
competitiveenvironmentalstrategythatMarcoPoloDavaocanadoptforitsenvironmental
managementprogramissuggested.
This study focusedon the four competitiveenvironmental strategies suggestedbyOrsato,
namelyareeco‐efficiency,beyondcomplianceleadership,eco‐brandingandenvironmental
cost leadership. The influence of the factors and actors that are said to persuade the
department managers’ suggestions and the general manager’s decisions in selecting a
competitive environmental strategywere discussed in the analysis. The following section
attemptstomatchthefindingsforMarcoPoloDavaowiththesetsofcombinationsofthe
stateofactorsandfactorsfortheselectionofastrategyasdiscussedinsection2.
Ascanbeseeninthefirm’soperations,itcanbesaidthatitisdoingeffortsthatareinline
with the eco‐efficiency strategy such as reducing resource consumption, energy use and
wastes, having a sewage treatment plant in the segregation and recycling. There are
however, still measures that need to be streamlined to be consistent all throughout the
77
hotel.Examplesarethesegregationprocess,thenon‐useofplasticsandthecompletionof
low‐energylightbulbsreplacement.
Themanagersdonotonlyhaveapositiveviewonenvironmentalmanagementbutarealso
willing to gradually adopt measures towards moving into a proactive approach on
environmentalmanagement.Thedatagatheredalsoshowedawillingnessamongsuppliers
andemployeestocooperateandthereisademandfromcustomers.Theseindicatorsshow
that the firmhas all the potential and capabilities to go a step higher than eco‐efficiency
alone.
Thebeyondcomplianceleadershipstrategyisastephigherthaneco‐efficiencywhereinthe
firm seeks to be acknowledged in their efforts for the environment. (Orsato, 2006) As
Forsythputsit:“Manyhaveproposedthataproactiveresponseinenvironmentalregulation
may actually result in environmental regulation plus competitive advantage in business.”
(Forsyth,1997)
Inadoptingthestrategy,managementputsinplaceitsownstandards,whichitmaypossibly
patternfrompopularenvironmentalmanagementprogramslikeISO.Mostofthemanagers
believe thatobtaining certifications like ISOandHACCP is good for the companybut they
alsoclaimthatresourceconstraintsmakeitimpracticalatthemoment.MarcoPoloDavao
canhowever,starttakingmeasuresthatareinaccordancewithaccreditationprogramslike
ISOoremployconsultancyservices.Thiswillhelpguidethemanagementonwhattodoto
for itsenvironmentalmanagementprogramandwillalsomakethehotelreadytoseekfor
accreditation,attheopportunetime.
Going beyond compliance will not only require costs but also time and effort from the
managementside.Onemanagerpointedoutactualintegrationinthebudgetandcostswill
not be a problem if the same if properly planned and proposed and justified. The real
challenge isonhow to incorporate theprogram into thewhole systemwhereineveryone
canfocusontheirrespectiveresponsibilities,notsinglybutinconsortiumwithothersinthe
hotel. This will also help solve the other constraint that with new leadership, there are
alwaysnewrules.TheMarcoPoloGrouphasanewpresidentandchangesinthecorporate
frameworkareanticipated.Amajorityofthemanagersexpressedtheviewthatdesigninga
78
clearsystem,strongenoughtoweatherchanges in leadership,willbehelpful,especially if
designedtobealong‐termprogram.
Another challenge in going beyond compliance is the proposition that it can make the
companybecomelesscompetitiveascompanieswhodonotgobeyondcompliancewillnot
bearitscosts.Themanagershowever,arenotdisturbedbythispossibility,fortheyknow
that resources are available to be used as investments in order to boost the hotel’s
competitive advantage. They also strongly agree that to be the first‐mover and to invest
ahead of its competitors in terms of environmentalism will help the hotel maintain its
marketshareandimproveitsbrandreputation.TheDirectorofSalesandMarketingpoints
outthat itwillbegoodforSales&marketinganditwillbecomeauniquesellingpointfor
thehotel.
Anotherimportantfactoringoingbeyondcomplianceisthegreeningofitssupplychain.At
themoment,therearenogreenpoliciesforthehotelsupplierstofollow.Theindependent
interviewwiththemanagersandthesuppliersshowthatbotharewillingtoworkwitheach
other in order to have greener business transactions and businesses. Actions on a
sustainable supply chainmay be integrated as soon as the policies for an environmental
managementprogramarelaid.
The two other strategies of eco‐branding and environmental cost leadership require
abundantfinancialresourcestofinancetechnologyinvestmentandorganizationalchanges,
astrongknow‐howaboutenvironmentalmanagementandenvironmentaltechnologiesand
ideally collaborations with suppliers for research and development. Moreover, both
strategiesmustmatchcurrentmarketdemands.
ThemanagersthinkthatEco‐brandingisagoodideabutareskepticalbecausetheyassume
that it isunrealisticat themoment. Asonemanagerputs it: “It isbetter topromote the
hotelasagreenhotel. However,Ithinkitissomethingforthefuture.”Thisisbecauseof
different factors, includingcostsand incongruencewith thecurrentprioritiesof thehotel.
Selling the whole hotel stay as green is not a priority at the moment and there are no
immediateplansforit.Anotherreasonforthisisthatgreenproductslikeorganicfoodand
greencleaningagentsareexpensiveandnotreadilyavailable.Moreover,themarketmight
notbe ready for it, thus creatinguncertaintyonwhether selling thewholeexperience,as
79
green will work or not. Since abundant resources are needed to be successful in this
strategy is currently a challenge, then itwill bemorepractical for theorganization tonot
adopt this at the moment but have the vision to move forward and include it in the
company’slong‐termplans.
Ontheotherhand,theenvironmentalcostleadershipstrategyissomethingthatiscurrently
beyond what the managers think is doable and practical. This is due to costs and a
requirementofhavingastrongenvironmentalmanagementprogram,whichin itself isstill
absentinthehotel.Technologicalinvestmentsinparticularposetobeachallengerightnow
becauseof thecurrentmarket conditions. Allof themanagers like the ideaand theyare
opentoitifROIwillbemorereasonablebecauseasofthemoment,thecurrentstudiesof
thetechnicaldepartmentshowthattheROIininstallingsolarpanelsispeggedat20years,
which istoolong. However,thestrategy isrecommendedforconsiderationintheMarco
PoloGroup’snewupcomingproperties.
Havinganalyzedboththeoriesanddatagatheredfromtheinterviewsandquestionnaires,it
issuggestedthatthegeneralmanagerselectthebeyondcomplianceleadershipstrategyfor
MarcoPoloDavao’senvironmentalmanagementprogram.
80
7. ConclusionThere has been a surge in environmentalism in different countries all around the world.
However, thedeveloping countries lagbehind theperformanceof thedevelopednations.
Since tourism is the world’s largest industry and its growth is currently concentrated in
developingcountries,thenitisrelevanttolookathowplayersintheindustrycanconfigure
itsoperationstobeabletocontributetothegoalofenvironmentalsustainability.Thehotel
industry players have adopted different measures and approaches in their businesses to
addresstheneedformoreenvironmentaleffortsthatwillhelpreversethedegradationof
nature.Thestudyhaslookedintohowacompetitiveenvironmentalstrategyisselectedbya
hotel’sgeneralmanager.Theresearchinvestigatedwhatthecurrentenvironmentalefforts,
and how the factors and the actors influence themanager’s suggestions and decisions in
selecting a competitive environmental strategy for a hotel’s environmental management
program. The theoretical framework offered insights on the different competitive
environmental strategies that can be applied in businesses and how these are being
employedindifferenthotelsworldwide.
Environmental efforts not only help the environment but are also linked to cost savings,
revenue improvement, improvedpublic relations andbrand imageandbetter service and
qualityperformance,nottomentionemployeeinvolvementandmotivation.
The research question in the study was: What competitive environmental strategy can
Marco Polo Davao adopt for its environmental management program? The research was
carriedoutinacaseforahotelinthePhilippines.Itispartofaninternationalchain,basedin
HongKong,whichoperatesintheAsia‐Pacific.
Themain objective of this researchwas to suggest a competitive environmental strategy
thatMarcoPoloDavaocanadoptforitsenvironmentalmanagementprogram.Thegoalwas
togeneralize results to theory;dataand resultsaregathered inorder todraw inferences.
The inferences are used to suggest a competitive environmental strategy for the hotel’s
managers.
81
Theanalysisofdatacollectedhasshownthatenvironmentaleffortsarewarmlywelcomed
bymostof themanagersofMarcoPoloDavao. Thehotel’scurrentenvironmentalefforts
aremainlydrivenbyenvironmental legislationandthepossibilityofcostsavings. Noneof
themanagerstreatcustomerpressureasafacilitatorbutuponcompletionofthecustomer
survey,resultsrevealedthatmostofthecustomersandprospectivecustomersare indeed
interestedinenvironmentallyfriendlyhotels.Mostofthemanagersthinkthatcostsarethe
main barrier in havingmore environmental efforts. These findings agreewith the theory
thattheabove‐mentionedfactorshaveadirectinfluenceonmanagers’perceptions,which
in turn shape thedepartmentmanagers’ suggestions and the generalmanager’s decision.
Thehotel iscurrentlydoingeffortsbeyondwhat isrequiredby legislationandmostofthe
managerswant thehotel to domore, even if not required. Thus,MarcoPoloDavao can
adopt the beyond compliance leadership strategy for its environmental management
program.
Themanagement ofMarco Polo Davao can use the results of the study for planning its
environmentalmanagementprogram. However, itdoesnotfollowthatthesamestrategy
willbeapplicable tootherhotels in theareaorotherhotels in thechainsinceeverycase
requires careful diagnosis. However, the findings can be presented to the managing
companyandcanpossibly influencethewholechaintodiagnoseitshotelsanddevelopits
environmentalmanagementprogramsspecificallyfitforeachhotel.Thefindingscanalsobe
used as reference for other hotels that are in the same situation, size or similar business
environment,especiallyforhotelsinthePhilippines.
The process of developing an environmental management program starts with reviewing
theory, findingout informationabout thecaseandcarefulanalysisofdatacollected. The
findings in this case suggest that a clear environmental policy be put in place in order to
enhance Marco Polo Davao’s current environmental efforts. Higher strategies were not
suggestedsincetheresultshaveshownthatitwillnotbepracticalforthehoteltoadoptit
right now, considering the hotel’s current performance and other economic and market
factors. It canhowever, includepreparations foradoptionofhigher strategies in its long‐
termplans.
82
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Appendices
AppendixA:Managers’InterviewQuestionnaire
Lengthoftenure(currentposition)
BackgroundonDepartment?Whatdoesitmainlydo?
Areyoufamiliarwithsustainability/environmentalmanagement?
Doesyourdepartmentdoanythingtowardsbeingenvironmentallyfriendly?
Is your department concerned with any requirements by government and the managing
companyintermsofenvironmentalefforts?
Do you thinkmore stringent standards from the government and themanaging company
will help thehotel performbetter in termsof its environmental efforts andultimately, in
termsofprofits?
If the legislations remain the same, do you think it would be good forMarco Polo to go
beyondwhatisrequiredinmakingeffortstowardsustainability?Whyorwhynot?(
Doyouthinkitiswisetoinvestonenvironmentaleffortsaheadoftheothersinthemarket?
What are your ideas on reducing resource use andwaste in your department and in the
hotel?
Doyoudealwithsuppliesandsuppliersinyourdepartment?
Do your suppliers/the hotel’s suppliers are ecological and offer sustainable products (i.e.
deliverorganicfoodandhighqualityproductswithnotoxiccomponents,theydisposetheir
wasteproperly)
Doyouthinkyoucan/thehotelcanrequireorinfluenceyoursuppliertobeenvironmentally
friendly? (i.e. less harmful laundry detergents, replace soap w/ recyclable dispensers,
89
calculated food strategy, reduced deliveries, less/ecological packaging, organic raw food
fromnearbyplaces)
Wouldyouwanttoencouragethesupplierstohavesustainablebusinessestoo?
Whatdoyouthinkaboutsellingthehotel’sproductsandservicesasgreen?(Itaimstogreen
allfactorsinthecustomerexperienceandsellthestayasagreenstay.)
Doyouthinkthefirmshoulddomorethanjustdevelopinggreenproductsandservices?
Environmentalcostleadershipstrategy:Canyouseethehotelhavingastrongsustainability
programisimplementedwithenvironmentalinvestmentsinthenearfuture?
Whatdoyouthinkaboutdevelopingatotallynewbusinessmodelbasedonsustainability?
This is where sustainability is integrated into the firm’s mission and vision and is
implementedintoallthedepartmentsoftheorganization.
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Areyouawareof the following facilitatorsandbarriers in implementinganenvironmental
managementprogram?Pleaseassesseach itemifyouconsider itasafacilitator/barrieror
not.
Facilitators:
1. Requiredbygovernmentormanagingcompany2. Costreduction3. Revenueimprovement4. Competitiveadvantage5. Strongersupplierties/supplychainpressure6. Betterqualityofproductsandsupplies7. Performanceandqualityimprovement8. Bettercorporateimage9. Publicrecognition10. Lessemissions,healthierenvironment(communityenvironmentalconcern)11. Pressureofcustomersortouroperators12. Employeeinterests13. Investorsdemand
Barriers:
1. Highinvestmentcosts2. Itdoesnotmeetshort‐termgoals3. Noideaonwhattodointermsofsustainability4. Resistancetochange5. Toomucheffortinswitchingstrategiesandtrainingpersonnel6. Itmakesthecompanylesscompetitive
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AppendixB:Suppliers’interviewquestions
Backgroundofthecompany
WhatdoyousupplytoMarcoPolo?
Doyouknowaboutsustainability?
Doyouhaveanyeffortstowardstheenvironment?
Areyouopentoadoptinggreeneffortsinyourcompany?
AreyouopentosupplyinggreenproductstoMarcoPoloiftheypreferit?
Howabout competition?Do you think your competitors are as/more/less green than you
are?
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AppendixC:Employees’Survey
1. Jobtitle____________________2. Doesthehotelhaveenvironmentalefforts?
________Yes ________No ________Idon'tknow3. Doyoudoanyenvironmentallyfriendlyeffortsatworkandwithinthehotel?
________YesIfyes,whatarethoseefforts?________saveenergy(i.e.turnofflightsandairconwhennotinuse)________reducewaste________savewater________recycle________otherspleasespecify______________________________
________No4. Do you want the hotel to be more environmentally friendly and have more
environmentallyfriendlyrules?________Yes________No
5. Areyouwillingtoundergotrainingforthehoteltohaveasuccessfulenvironmentalprogram?________Yes________No
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AppendixD:Customers’Survey
1. Whattypeoftouristareyou?________Local
________Foreign
2. Haveyouheardofanenvironmentallyfriendlyhotel?________Yes–pleaseproceedtonumber3
________ No – An environmentally friendly hotel does efforts that help save the
environmentfromfurtherdegradation
3. Areyouinterestedinstayinginanenvironmentallyfriendlyhotel?________Yes–pleaseproceedtonumber4
________No‐Thankyouforansweringthequestionnaire!
4. Haveyoustayedinanenvironmentallyfriendlyhotel?________Yes‐pleaseproceedtonumber5
________No–pleaseproceedtonumber6
5. Questionsaboutyourstay:a. Didyoulikeyourstay? ________Yes________Nob. Didyoupaymoreforit? ________Yes________Noc. Willyoustayagain? ________Yes________No
6. Willyoustayorstayagain(ifyou’vestayedinonebefore)inenenvironmentallyfriendlyhotel?
________Yes‐pleaseproceedtonumber7
________No–Thankyouforansweringthequestionnaire!
7. Howmuchmorewillyoubewillingpayforit?________morethan3%pleasespecify___________%
________3%
________2%
________1%
________nothing
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Appendix E: Other environmental efforts being done by the F&B
department
Current energy conservation andwastemanagementmeasures in the kitchen include the
following:
o Minimizingtheopeningofdoorsofcoldstorageandfreezer
o Keepingatemperaturelogofallchillerstwiceaday
o Keepingkitchendoorsadjacenttodiningareaclosed
o Replacingoldgaskitchenequipmentbynewerenergy‐savingmodels
o Leftover(unserved)foodfrombanquetsarebroughttoemployees’cafeteria
o Sellingchemicalcontainers,bottlesandtincanstorecyclers
o Reusingoldfoodcontainersforstorage
o Useofinductioncookersforallcookersinthebuffet
o Sellfoodwasteandusedoil
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Appendix F: Other environmental efforts being done by the Technical
department
Otherenergyandresourceconsumptionmeasuresbeingdonebythetechnicaldepartment
o Regularchecksonwaterleaks
o Maintenancescheduleforwatersystems
o Properdisposalorrecyclingofappliancesreplaced
o Finetuningofcontrollersforairconditioning
o Installationofsolarcontrolfilms
o Addinglightswitches
o Cleaninglightfittings
o Energysavingpolicy
o Turnsoffventilationandlightswhennotinuse
o Illuminationlevelisnothigherthannecessary
o Drapesandblindsofunoccupiedroomsareclosed
o Policyonminimizingtheopeningofdoorsofcoldstorageandfreezers
o Preventivemaintenanceprogram
o Checksaccuracyofbuilt‐ininstruments
o Chilledwatertemperatureismaintainedattherightlevel,nottoolow
o Followflowratespecified
o FinetuneofpneumaticcontrolsforallAHUsandPAUs
o ESO(energysavingoperations)functioninlifts
o Examinedthecoolingdistributioncarefully
o Installednaturalcoolingdistributionequipment
o Lampsandventilationsystemincarparkcontrolledbytimerswitch
o Checkedindoorparameters(temperaturesandhumidity)toensurenoovercool
o Replacethefluorescentlightballastwithelectronictype
o Stopallassociatedwaterpumpswhenchillerisshutoff
o Strictcontrolofmaximumelectricalcurrentlimitonthechillerunits
o Temperatureandfanspeedsettingsforroomthermostatsarecorrectlyadjusted
o Closeguestfloorduringlowoccupancytosaveenergy
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o Aboilershouldbeoperatedatpercentageloadofover30%
o Kitchendoorsadjacenttodiningareaskeptclosed
o Kitchenexhaustmake‐up
o Checkedleakageofrefrigerantandwater
o Checkkitchenequipmentefficiency
o Testboilerefficiencybyadjustedfuelratio
o Adjustwaterflowrateandwatertemperaturetosuitdifferentkitchens
o Followwashingmachinemanufacturer’sspecifiedwatertemperatureandamount
o Temperaturesensorandcontrolvalveareinstalledindrycleaningmachine
o Adjustair/fuelratioorfuelflowrate
o Checkfreshairdampers
o Routinechecknormaloperationofaboiler
o Useasmuchoutdoorairaspossibletomaximizefreecoolingeffectwhenpermitted
byweatherconditionsandductsystemdesign
Measuresdealingwithairpollutants
o Non‐smokingguestfloor
o Environmentally‐friendlyfireextinguisher
o Phaseoutrefrigerantr‐11
o Replace existing dry cleaning machine with an approved model to reduce air
pollution
o Improved building air balance: positive building internal pressuremaintained (less
outsideairpollutantdrawninside)
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AppendixG:OtherenvironmentaleffortsbeingdonebytheHousekeeping
department
o Drapesandblindsofunoccupiedroomareclosed
o Temperatureandfanspeedsettingsforroomthermostatsarecorrectlyadjusted
o Closeguestfloorduringlowoccupancytosaveenergy
o Followwashingmachinemanufacturer’sspecifiedwatertemperatureandamount
o Non‐smokingguestfloor
o Replace existing dry cleaning machine with an approved model to reduce air
pollution
o staffcafeteriaisanon‐smokingarea
o Donationofusedclothestocharitiesexceptforthosewithofficiallogos
o Collectionofoutsidepublicationsforstafftoread
o Envelopeandpaperrecycling
o Paperlaundrytags
o Newspaperrecycling‐soldtorecycler
o Printercartridgesarecollectedbytherecyclers
o Returnchemicalcontainertosupplierforrecycling
o Soapdonations(collectusedsoapsforpartieswhowant)
o Towel/bedlinenreusecampaign
o Donateoldlinens
o Reusingchemicalcontainers
o Bottlerecyclingtosuppliersorcollectors
o Tincanrecycling
o Woodenhangers
o Recyclingofbathroomlinen,usedasrags
o Noplasticlinersinroomgarbagebins,theyarewashedinstead