An Exceptional Case Of CSR Commitment: Millennium Hotel And Resorts Case Study
Introduction - An Exceptional Case Of CSR Commitment: Millennium Hotel And Resorts Case Study
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The concept of CSR is highly significant in the present world. CSR stands for corporate social responsibility which deals with the social issues instead of those which influence the profit margin of an organisation that attract consumers who possess the same values[1].
“Millennium Hotels and Resorts” is a hotel brand that is especially known for serving the “guest as family” and for its unique range of global properties across Europe, “Asia”, the “Pacific, Middle East and North America”[2]. Millennium has more than “120 hotels” and this institution focus on blending Asian hospitality with western comfort. One of the biggest competitors of the Millennium hotel is Melia Hotel and Shangrila hotel. Melia hotel is an internationally known hotel channel and is considered the best hotel in the world in the luxury resort segment as dictated by the US Global Traveler magazine[3]. This brand has more than 350 hotels in around 40 countries. Another competitor Shangrila hotel is also a five-star hotel situated in the premier cities across Asia.
The main challenge faced by the hotel industry is relating the environmental issues and sustainability challenge and the waste of a large amount of water. In addition to this, food waste and garbage and waste is also another issue faced by the hotels caused by not using recyclable items.
The main purpose behind the CSR policies of Melia hotel is to develop a tourism model which can face and overcome global environmental challenges like, climate change and their goal is to deliver their employees enough career opportunities by ensuring all the facilities. Shangri la hotel is committed to operating the organisation in a balanced manner economically, socially and environmentally. The firm focuses on maintaining sustainable development via caring for guests, colleagues and the communities in which they serve and their main goal is to help in advancing and delivering a positive impact on the life of people and communities in which they serve.
Millennium hotel and resort focuses upon the relationship between investors, employees and suppliers and to fulfil this purpose, the hotel organisation maintains ethical and legal behavior and also maintain respect and consideration while treating their employees which helps in creating a better working environment[4]. In addition to that, Millennium hotel emphasizes equality and maintain equal work and equal pay and encourage diversity and equal opportunity. In 2020, the Millennium hotel has employed 5,986 people all over the globe in 25 countries. In 2018, the Millennium hotel has published a second gender pay gap report which has increased the transparency of the firm and facilitated them in good governance. Moreover, based on the Modern Slavery Act 2015, the Millennium hotel firmproduces an annual statement which states the details regarding initiatives taken by the firm in order to prevent slavery and human trafficking[5]. For reducing environmental impact, the hotel organisation builds mass awareness among the employees and stakeholders and delivers necessary information and ideas in order to ensure that tall the legal compliances are achieved. Lastly, the Millennium hotel has also taken initiatives to reduce waste disposal and energy consumption and other natural resources and increase recycled materials and products from sustainable sources.
Number of male and female employed by Millennium hotel in 2020[6]
In spite of Covid-19 hit, the performance of Millennium hotel in 2019 and 2020 was remarkable[7]
Corporate social responsibility is the backbone of Melia hotel. In the case of Melia hotel, the organisation achieved a special dimension in the side of developing climate strategy, social reporting, Tax strategy and CRM. The main agenda behind the CSR programs of Melia hotel is to develop an efficient tourism model which can face global issues like climate change, environment protection, improving education and increasing equality[8]. Furthermore, the organization also provide importance to human right via their ethical and responsible business model. They also adhere to building a long-lasting relationship with their suppliers via mutual respect. The Shangri la hotel specially put an emphasis upon bringing out economic opportunity and bringing value to the larger public. Community participation, biodiversity, workforce development, a sustainable supply chain, and health and security are the five primary areas on which the hotel[9]. Along with this, the Shangri la hotel has specially focused upon employees, guests and communities due the Covid-19 pandemic.
Highlighted areas of CSR of Shangri-La hotel in 2020[10]
Reduction in energy, water and carbon Footprint by the hotel Shangri la from 2015-2019[11]
The Millennium hotel report has forecasted that by the year the hotel will reduce greenhouse gas emission by 27% utilizing 2017 as base year. The company's environmental approach to environmental preservation will help it to continue to be sustainable in the future, as well as promote brand recognition and customer trust, which will boost the company’s appeal. As a result, the firm will explore increased consumer loyalty, value-driven purchasing, innovation and employee engagement.
All the CSR activities practiced by Millennium hotel is definitely of great importance, specially, their approach towards enhancing employee opportunity and initiatives towards decreasing human trafficking is undoubted of great significance. Along with these initiatives, the firm also focuses on the projects like fundraising with the purpose of aligning their value. In addition, they should also try to localize their efforts in order to build trust, consistency through their CSR activities. Furthermore, to decrease the food waste issue, the organisation should develop campaigns like developing local food banks which will aim to serve the foods to the needy people which will benefit in reducing hunger and reducing food waste.
All of the mentioned hotels are integrally involved in the CSR activities. All the three organization have their own CSR reports. In terms in terms of international CSR standards, the millennium hotel follows ISO 14001 standard[12]. The Shangri-La hotel inclines with the GRI standard and lastly, the Melia hotel sustainability standard is informed by the sustainable development goals, which has a close relation to the ISO 26000 standard[13]. All off these three highly reputed hotel organizations are in-compliance with the international standards. The fundamental activities of CSR of Millennium hotel includes,
Caring approach towards larger wellbeing
Food Donation
Charity Donation
Partnership with St. James Settlement
Partnership with Hong Kong Young Women's Christian Association (HKYWCA)
Student Programme
Hotel Shangri-La in order “to shelter the environment have presented water bottling plants and other more sustainable resources across the hotel processes. In other areas, Shangri-La dynamically exercise smart technology food waste management, “low temperature laundry facilities, composting and the planting of herb gardens” to manage “food waste”.
Chief CSR activities of Melia includes, business ethics: “transparency”, “human rights”, “business ethics”
Society: “children protection, knowledge sharing, talent and employability, social action and philanthropy”
Environmental: Climate change, innovation, measurement and impact
Reputation: leadership, sustainable brands, responsible value chain
From the CSR/sustainability reports of these three hotels, it is evident that the reporting procedure of millennium and Shangri-La is much more elaborate and systematic in comparison with that of Melia. In order to further enhance the range, scope and effectiveness of its CSR initiatives, Millennium should consider aligning its CSR objectives with the framework set by the World Business Council for Sustainable Development.
References
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies, 65.
Asvanyi, K. and Chaker, H., 2019. CSR Activities of Tunisian Eco-Labeled Hotels. In Proceedings of FIKUSZ Symposium for Young Researchers (pp. 10-23). Óbuda University Keleti Károly Faculty of Economics.
CORPORATE RESPONSIBILITY 1. 2020. [online] Available at: https://media.millenniumhotels.com/Live/F/B/F/FBF84630-280D-4E70-B93D-0495B47E5010/Corporate%20Responsibility%20-%202020%20dated%2014May2021%20to%20upload%20to%20website.pdf. [Accessed on 11.1. 2022]
Fakfare, F., 2019. A comparative study of the leadership styles of Kwon Ping Ho (Banyan Tree Hotels and Resorts) and Kwek Leng Beng (Millennium Hotels and Resorts). ASEAN Journal of Management and Innovation, 6(1), pp.88-101.
Meliahotels international, 2019. Corporate responsibility - Official Meliá corporate website. [online] Available at: https://www.meliahotelsinternational.com/en/our-company/reputation-sustainability/corporate-responsibility. [Accessed 6 Jan. 2022].
MILLENNIUM and COPTHORNE HOTELS LIMITED CONTENTS. 2020. [online] Available at: https://media.millenniumhotels.com/Live/2/C/9/2C9B181C-1654-4848-8D8D-09D10CBFB3FD/2020-annual-report.pdf?r=210618042529. [Accessed on 11.1. 2022]
Millenniumhotels, 2021. Corporate Responsibility : Millennium Hotels and Resorts. [online] Available at: https://www.millenniumhotels.com/en/governance-and-corporate-responsibility/corporate-responsibility [Accessed 6 Jan. 2022].
Puriwat, W. and Tripopsakul, S., 2018. The impact of corporate social responsibility on customer satisfaction and loyalty: A case study of the hotel industry in Thailand. Asia-Pacific Social Science Review, 18(2), pp.347-355.
Sustainability Report, 2020. Incorporated in Bermuda with Limited Liability Stock Code: 69. [online] Available at: https://sitecore-cd.shangri-la.com/-/media/Project/Shangri-La-Group/OurStory/Files/Community-And-Social-Impact/Sustainability-Reports/2020_SustainabilityReport.pdf.
