Hotel Business Review

Mr. Johnson

Eco-Friendly Practices

Social Responsibility is More Than Just Being Green

By Mark Johnson, President, Loyalty 360 - The Loyalty Marketer’s Association

Corporate social responsibility (CSR) is increasingly becoming an integral part of brands’ business strategies. Typically, when we think of socially responsible hotels examples of environmental stewardship come to mind. But in today’s increasingly competitive business landscape, CSR efforts can - and should - go beyond the typical green initiatives that have become expected practice in the hospitality industry. Richard Edelman, President and CEO of Edelman Public Relations and panelist at the 2009 World Savers Congress hosted by Conde Nast Traveler, summed it up well when he said, “The traveler’s expectation is that the company is going to be green. Instead of being the eco-cherry on the sundae, it’s in the ice cream.”

Guests have come to expect hotels to be environmentally-friendly - be it through water conservation efforts, recycling programs, energy saving initiatives and beyond. In fact, a recent study by Carlson Hotels found that 76% of travelers said that a hotel’s degree of environmental friendliness influenced their decision of where to say. Surprising? Not really. But what is eye-opening is that the same study found that some guests are willing to pay a premium to those with a high CSR involvement.

CSR efforts affect consumer purchase decisions

The way brands approach corporate social responsibility has evolved from philanthropy to a true integration into business practices. Once viewed as how you spend the money you make, social responsibility is now more about how you make the money you spend. And it’s an increasingly important factor consumers consider when deciding whom to do business with. People want to be associated with companies that are good corporate citizens.

The 2008 Cone/Duke University Behavioral Cause Study, released by Cone and Duke University’s Fuqua School of Business, validates for the first time that cause-related marketing can significantly drive actual consumer choice. According to the survey:

• 85% of Americans say they have a more positive image of a product or company when it supports a cause they care about
• 84% of women and 75% of men say they consider a company’s commitment to social issues when deciding what to buy or where to shop
• 85% feel it is acceptable for companies to involve a cause in their marketing

A poll of its readers by CondeNast Traveler echoed these findings. The survey found that 73% of readers would be willing to pay more to stay in a hotel that helps support the local community through health and education initiatives:

• 20% would spend between 1-5% more
• 29% would spend between 6-10% more = 24% would spend 10% more.

Given these findings it should not be surprising that CSR programs are gaining popularity, with 68% of hotel executives polled currently operating such programs and another 20% planning to implement such programs with the next 12 months (Ernst & Young 4/09)

So, what CSR efforts are hotels doing initiating?

There are a variety of ways in which hotels are acting locally to effect positive global change and betterment . To illustrate the scope of socially responsibility efforts we are seeing in the hospitality industry today, let me highlight a few best-practice examples.

InterContinental Hotels Group

InterContinental Hotels Group is committed to making a positive contribution in the communities in which they operate. In addition to its corporate efforts, IHG hotels are also very involved grass roots efforts within their local communities. For instance, InterContinental Hotels Group participates in the Dekalb County Schools’ mentoring program, Partners ‘N Pals. Each mentor commits to spend 30 minutes a week with a specially matched student at one of the county system’s schools. Once established, the mentoring relationship continues throughout the school year.

IHG takes the idea of casual days one step further by offering its Atlanta corporate office employees the opportunity to wear jeans in the office the last Friday of every month - provided that employees donate a minimum of $2 to a charitable organization for each “Denim Day,” with all donations matched by the company. Benefiting organizations are selected from a pool of employee recommendations that have been pre-qualified for compliance with IHG donation guidelines.

Kimpton Hotels & Resorts

Kimpton Hotels & Resorts’ commitment to social responsibility is evident via its long-running Kimpton CARES initiatives. On a national level the Kimpton CARES program builds awareness and raises funds for three non-profit organizations through a series of annual events: Dress for Success, The Trust For Public Land, and the Red Ribbon Campaign.

On a local level, all of Kimpton’s hotels are affiliated with local non-profit organizations, including those that benefit the arts, education and neighborhood beautification. In addition, Kimpton Restaurants are involved in their local communities, working to help support food and hunger organizations, as well as underprivileged children, by hosting and teaching cooking classes along with other charitable events and promotions throughout the year. On a national scale, many of its chefs and restaurants are also involved in Taste of the Nation, a program for Share Our Strength.

Marriott International

Marriott International’s Spirit to Serve program supports a breadth of socially responsible efforts. Through a long-standing affiliation with Habitat for Humanity International, Marriott employees and guests have helped fund and build thousands of homes in 15 countries. While the company and its partners contribute about $200,000 annually to the cause, its employees work in teams to create safe and affordable homes for others. For example, its Fairfield Inn brand made service to Habitat for Humanity its signature community service activity, incorporating house builds into major events such as general manager and owner and franchisee conferences.

Marriott is also committed to providing opportunities to the next generation, focusing on programs that serve young people from challenging backgrounds. Partnering with the International Tourism Partnership’s Youth Career Initiative (YCI), more than 1,600 young people are on paths toward more promising futures. The program combines six months of classroom training with on-the-job hotel experience.

Each year the Marriott hosts client/associate sales meetings where they bring in top planners from various segments to focus on what’s happening in the industry and to thank them for their loyalty. According to James Karson, senior manager in Marriott’s global meetings department, when participants register to attend, they can sign up for the community service project attached to that particular event. “We just had the top intermediary producers at the JW Marriott Camelback Inn (Scottsdale, Ariz.) for three days,” he recounts. About 50 people came in a day early and helped to refurbish and reorganize four homes run by Maggie’s Place, a Phoenix nonprofit that takes care of expectant mothers who are homeless or who don’t have anyone to turn to. “We went in for 4–5 hours, and our volunteers painted, landscaped and organized the homes. It’s a feel-good for attendees and a chance to help a good cause,” he says. (“Corporate Social Responsibility,” SmartMeetings, August 2009)

Is being green important? Absolutely. And, hotel guests expect hotels to be stewards of the environment. But increasingly, guests expect “doing well by doing good” to be a part of a hotel’s business strategy. And, they’re happy to reward companies that give back with both respect and patronage.

Mark Johnson is President and CEO of Loyalty 360 - The Loyalty Marketer’s Association. Loyalty 360 is the only organization that addresses the full spectrum of both customer and employee loyalty issues. An unbiased, market driven clearinghouse and think-tank for loyalty and engagement opportunities, insights, and responses, Loyalty 360 is the source business leaders trust for industry metrics, market driven research, case studies, and networking opportunities. A sought-after speaker and writer, Mr. Johnson is frequently called upon by media worldwide to share his expert insights into customer and employee loyalty issues. Mr. Johnson can be contacted at 513-290-5147 or markjohnson@loyalty360.org

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