Corporate Social Responsibility

Philippe Rossiter FIH, Chief Executive of the Institute of Hospitality

According to latest statistics, UK businesses account for about 40% of Britain’s carbon
footprint, translated into some 250 million tonnes of carbon dioxide emissions annually.
Within these figures it is reckoned that Small and Medium Sized Enterprises (SME’s)
alone account for nearly 100 million tonnes. Given that SME’s make up such a
substantial part of the hospitality industry, it is clear that we cannot ignore our own
contribution to these statistics. Serious as this may be, carbon dioxide emissions are, of
course, only one aspect of a far wider environmental debate, where, again, as an
industry we carry a responsibility. In this way, we are faced ever increasingly by
concerns over the management of water resources and waste minimisation.

The big question is how to manage our environmental impact as demand grows against
a backdrop of increasing vulnerability. In this context, the UK’s climate is predicted to
continue becoming warmer, with longer, hotter summers, leading to an increase in the
demand for tourism products from both inbound and native customers. Whilst seemingly
good for the industry, such raised demand can threaten the very features of a locality
that attract visitors, with higher levels of pollution, congestion and overcrowding.
Furthermore, the predictions of reduced rainfall will be seen in its impact on our ability to
maintain those natural aspects which are so attractive. So a combination of drought,
flash flooding and forest fires will work against our efforts to provide an attractive
backdrop to our tourism offer, unless we deploy and use substantial resources to
combat these threats.

As society becomes more conditioned to its environmental impact, and terms such as
‘carbon footprint’ become more widely used and understood, our industry will be
subjected to even greater levels of scrutiny to ensure that we are acting in an
environmentally sound fashion. A number of industry companies are already recognising

Institute of Hospitality April 2008 Page 1 of 3

the need to be a ‘good neighbour’ by investing in low-carbon building materials and
energy-recovery plants, as well as implementing practical waste management policies.
While the initial investment may be greater, many see a better long term return for their
shareholders through reduced costs, and improved sales derived from customer loyalty
based on a strong environmental ‘brand’.

At the Institute of Hospitality, we have good evidence from our Hospitable Climates1
energy efficiency programme that a strong link between environmental ‘best practice’
and operational ‘best practice’ is essential if a business is to derive the full benefit of its
sustainability actions. Following its launch in 2000, the Hospitable Climates programme
attracted over 6,000 hospitality businesses into membership. As a result of their energy
saving actions, the industry has made an important contribution to the government’s
carbon dioxide emissions reduction target. At the same time, these businesses have
reduced their energy costs by a considerable amount, while maintaining their focus on
good customer service and profitability. Managed by the Institute of Hospitality on behalf
of the Carbon Trust, and supported across the sector by the British Hospitality
Association, the British Beer and Pub Association, the British Institute of Innkeeping, the
Association of Licensed and Multiple Retailers and the Federation of Licensed
Victuallers Associations, Hospitable Climates proved to be a key information resource
for matters relating to energy efficiency in the hospitality industry.

The success of Hospitable Climates has been due to the seamless connection between
operational activity and the introduction of the energy savings measures. In other words,
Hospitable Climates has become part of the business’s ‘culture’, and is not regarded as
a resource intensive ‘add on’, but as an integral part of the good management of all
resources. In this context, therefore, best practice should be encouraged in every aspect
of a business, and this is something the Institute promotes as one of its key objectives.

As an industry, we may not be able to tackle climate change on our own, but we are
able to pursue sound policies on waste management, recycling, energy efficiency and
water conservation. At a time when Corporate Social Responsibility (CSR) has become
1
The Hospitable Climates programme has now concluded. See the Institute of Hospitality Business
Climate web pages for up-to-date information on CSR, the environment and climate issues.

Institute of Hospitality April 2008 Page 2 of 3

an integral aspect of business strategy in many areas of the economy, no sector of our
industry is immune from the same drivers of this philosophy. We are, however, better
placed than many by being able to demonstrate our commitment to CSR through the
adoption of visible environmentally-conscious modes of operation. Customers will thank
us for our initiatives, society will be the better for them, and, most important of all, the
benefits will go straight to the bottom line.

Useful References from the Institute of Hospitality Electronic Resources

See: www.instituteofhospitality Information Services and The Business Climate

E-book (available through the Institute of Hospitality Online Catalogue)

Corporate Social Responsibility: Balancing Tomorrow's Sustainability and Today's

Profitability, by Hawkins, David E.

Institute of Hospitality eJournal Collection

(available through the Information Services web pages)

Title: The Journal of Corporate Environmental Strategy and Practice (GMI)

"A leading quarterly management journal drawing together strategic
environmental and sustainability issues as they affect organisations worldwide."
Source: Greenleaf Publishing

Title: CORPORATE RESPONSIBILITY: The state of corporate social responsibility.

Source: Marketing Week (Feb 28, 2008)

Title: BUSINESS TRAVEL SHOW 2008: CSR gains importance.

Source: Travel Trade Gazette UK & Ireland (Feb 15, 2008)

Title: Agency Survey 2008: CSR/destinations - CSR: doing the right thing. Source:
Conference & Incentive Travel (Feb 12, 2008)

Title: Ensure your benefits strategy lives up to ethical expectations.

Source: Employee Benefits (Dec 13, 2007)

Title: Incorporate CSR into Your Meeting.

Source: Corporate Meetings & Incentives (Nov 1, 2007)

Title: Corporate social responsibility pays off: by being good corporate citizens,
companies can woo top talent, engage employees and raise productivity.
Source: HR Magazine (August 2007)

Institute of Hospitality April 2008 Page 3 of 3