CSR PRACTICES IN TOURISM AND HOSPITALITY
As the world’s largest hotel company by rooms, InterContinental Hotels Group (IHG) are always under public scrutiny for every action that they do. All the actions have a direct impact socially, culturally, economically, environmentally and politically. Zooming in on the corporate social responsibility (CSR) in particular, we are going to evaluate the strategies and programmes undertaken by IHG. IHG has in place a CSR programme with the four pillars as the main skeletal. We have selected one specific programme from each pillar to further critic the performance of the programme. There are discussions about the positive ways IHG has managed to overcome their challenges while implementing the programme. We will also be looking at one of the special ongoing case in Tibet which has raised major CSR issues. Last but not least, we will be looking into the potential challenges that IHG may face with regards to their CSR programmes in the future, as well as giving recommendations for the challenges. To conclude, CSR is becoming increasingly important as it is even grabbing the attention of the media. IHG has integrated CSR into their daily operations, and has so far done well in managing their CSR activities. Yet with this, IHG may need to bear in mind that as such a big organisation, IHG can definitely do much more than what they are doing now, as they have more resources as compared to other smaller organisations.
InterContinental Hotels Group (IHG), headquartered in England, is one of the world's leading hotel companies – with 678,000 rooms in over 4,600 hotels in nearly 100 countries and territories around the world (Appendix A). Operating nine hotel brands with a large percentage of business saturated in America (Appendix B), IHG operates in three different ways (as a franchisor, a manager and on an owned-and-lease basis). It has four reporting regions (Americas, Europe, AMEA, Greater China).
Key CSR Strategies
IHG uses an internally developed framework to develop and evaluate CSR programme, a wheel with four quadrants. This framework is used to make every business decision and is communicated to all IHG employees worldwide. The four quadrants are financial performance, people, guests and business responsibilities (which comprises of reducing environmental impact, workplace safety etc.). Although the framework originates from the IHG headquarters, IHG encourages respective hotel managements to adapt it to a regional and local level. The corporate office manages the framework, strategy and direction of initiatives and provides key targets for the individual hotels to achieve. The General Manager has the discretion to decide what activities to adopt and the extent of CSR efforts of each hotel. He is also able to tailor the Key Performance Indicators (KPIs) of employees to suit the four quadrants. The most important target for the corporate office of IHG is to reduce energy usage levels by 8% per annum. IHG has 4 key objectives for their CSR programmes. IHG aims to drive environmental sustainability, to have a positive impact on the local community and drive economic opportunity, to embed and strengthen CSR elements in their brands, and lastly to engage stakeholders so that they can champion and protect IHG’s reputation and brain.
IHG’s CSR programmes are based on 4 pillars: Innovation, Collaboration, Environment and Community, as shown below. IHG Academy is a programme that comprises of all the 4 pillars.
Summary of CSR Strategies (Overview of organization’s CSR) 3.1.
Green Engage is IHG's innovative online environmental tool designed to help hotels in IHG's system monitor, reduce and manage their energy consumption, as well as water and waste (IHG, 2013). The system,...
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