NATIONAL REPORT—On September 14, 2010, ISO 26000, which gives organizations guidance on implementing social responsibility (SR), was approved for publication as an ISO International Standard. Its target release date is November 1, 2010. The publishing of ISO26000 will prove to be a tipping point in worldwide implementation of SR practices. Up until now there has been no “official” definition or framework for social responsibility.
So what does it all mean for the hotel industry? For those hotel groups that already have SR or corporate social responsibility (CSR) programs in place, it offers a definitive guideline for benchmarking and gap analysis. For groups without an existing program, it offers an excellent foundation on which to design and implement your program.
Effectively this standard should provide the preeminent foundation for any organization to build its SR framework. It provides guidance on:
• Concepts, terms and definitions related to social responsibility;
• The background, trends and characteristics of social responsibility;
• Principles and practices relating to social responsibility;
• The core subjects and issues of social responsibility;
• Integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence;
• Identifying and engaging with stakeholders; and
• Communicating commitments, performance and other information related to social responsibility.
The standard provides seven core subjects and associated principles in the SR framework: organizational governance; human rights; labor practices; the environment; fair operating practices; consumer issues; and community involvement and development.
The seven principles of SR include: accountability; transparency; ethical behavior; respect for stakeholder interests; respect for the rule of law; respect for international norms of behavior; and respect for human rights.
Make no mistake, SR is not just about philanthropic activities such as giving to charity. While philanthropy is discussed in the seven core subjects (under community involvement and development), it is just one part of the broader spectrum of SR covered under ISO 26000. Another common misconception about SR is that it should be the responsibility of your public relations (PR) department. While PR and communications plays an important role in raising awareness of SR efforts, they cannot effectively drive a hotel group’s SR program.
Due to the broad nature of SR and its area of influence, top management needs to take responsibility for understanding, implementing and driving SR strategies throughout a hotel company or individual property. SR is applicable to smaller properties just as much as it is to larger properties and chains. In the standard, ISO has a dedicated section for small to medium-sized organizations. Often due to their more nimble and flexible nature, individual properties can have better SR programs in place than larger chains.
Importance of Dedicated Effort
At minimum, hotel groups need corporate and property based SR committees with representation from all internal divisions. Best practice hotel companies have a dedicated corporate senior management position assigned, reporting directly to the CEO. This position drives corporate and individual property committees/heads in achieving their group-wide SR objectives.
Due to the diverse nature of the hotel industry, SR is particularly relevant. Hotel groups have multiple stakeholders such as employees, customers, suppliers, and government. They have environmental impact such as water usage, energy consumption, CO2 emissions and climate change. Hotel companies effect the communities in which they operate and need to be leaders in the areas of health and safety. On top of all that, reporting to investors and stakeholders on SR initiatives is expected, and quickly become legislation in various jurisdictions. It also forms the basis for companies to be included in the fast growing sector of sustainable investment funds and indexes (such as the Dow Jones Sustainability Indexes).
While some hotel chains and properties already have CSR or SR programs in place, more need to show transparency and accountability by utilizing effective reporting channels (and this doesn’t mean just a section in the annual report). The most internationally accepted reporting mechanism for sustainability and social responsibility is the Global Reporting Initiative (GRI). Only a handful of hotel groups have adopted GRI reporting, and according to the latest available 2009/10 GRI records, they are: Hong Kong and Shanghai Hotels, owner and operator of the Peninsula Hotels; InterContinental Hotels Group; Jumeirah Group; NH Hotels; Rezidor Hotel Group; Marriott International; and Sol Melia.
Benefits of SR to a Company
There are many benefits of SR to an organization. To name only some, it can achieve savings associated with increased productivity and resource efficiency, lower energy and water consumption, and decrease waste. SR enhances employee loyalty, involvement, participation and morale, and it can prevent or reduce potential conflicts with consumers about products or services.
ISO 26000 contains voluntary guidance and is not a specification document intended for third party certification like ISO 9001 and ISO 14001. ISO has emphasized that it will be vigilant in seeing that this is respected. It will be skeptical of any organization claiming to offer ISO26000 certification or claiming to be ISO26000 certified.
Chris Knop is director at Avasara, a firm based in Hong Kong and Macau offering a full range of hotel and hospitality consulting services (www.avasara.biz). He is vice chair of the Sustainable Development Committee at the Australian Chamber of Commerce and executive committee member for Marketing and Corporate Social Responsibility (CSR) at the Hong Kong Call Centre Association. He was a founding member of Shangri-La Hotels and Resorts’ corporate social responsibility committee and has authored a white paper on CSR implementation.
