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

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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

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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.

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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).

21

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.

23

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.

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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.

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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.

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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.

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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.

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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,

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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