The aim of the report is to suggest optimal solutions for the two issues identified for InterContinental Hotels Groups. The issues that were identified are Corporate Responsibility and Sustainability. The report will select one solution for each of the issues and will justify why the solution is strategic to the organization. The report will also explain its implications for the brand image of the organization and the company’s triple bottom-line (profit, social, environment). Besides this, the report will demonstrate concepts of strategic management by analyzing the business environment and assessing the strategic position of tourism and hospitality enterprise InterContinental Hotels Groups (IHG), and taking the influences of socio-cultural, economic and sustainability into account.
Corporate social responsibility plays a very important role in every business. Business should run in such a way that it makes profits without sacrificing human life and environment. For implementing social responsibility within the business the following strategies should be applied.
It is one of the best ways to solve the issues related to CSR in the business. Initiating or merging CSR with business strategy will help the business to implement it within the organization. Intercontinental Hotel Groups consist of enhanced workforce which is its strength. This workforce will help the business to achieve CSR if the CSR is set to be one of the objectives of the organization (Rhou and Singal 2020).
Getting all the members specially the top management person on board from implementing any project from paper to reality will increase coordination among the management team. Launching CSR program requires support from each and every member of the organization. Moreover, one of the biggest strengths of Intercontinental Hotel Groups are their Web based life and IT framework. This strengths will help the organization to increase their proficiency and efficiency to implement this solution (Ettinger,Grabner-Kräuter, Okazaki and Terlutter 2020).
Intercontinental Hotel Groups is one of the biggest groups in hospitality industry that have various companies in it. However, searching new opportunities will help the organization to reduce the impact of financial cost caused due to CSR and its applications. Moreover, it will help the organization to connect with communities that will serve as a source of future employees. It will result in better management of the workforce as well as the employees will be loyal to the organization. This strategy will contribute to long term pipeline of employees for the organization (Kim,Woo, Uysal and Kwon 2018).
Creating and building a strong relationship with outside partner will help the organization to adopt changes easily. Partnership helps the organization to improve its capability in the field in which it does not have any experience. CSR initiative helps in connecting with partners easily and more affordable than that of creating opportunities on their own. Outside partner will help the organization to understand how CSR can be implemented without experiencing any financial strain (Guzzo, Abbott and Madera 2019).
Finding new ways of innovation can easily deal with the issues related to corporate social responsibility. It may also happen that the CSR itself becomes the driver for innovation. Investing in employees and on their ethic will defiantly result in better results for the organization in terms of revenue as well as in brand image (Ettinger,Grabner-Kräuter, Okazaki and Terlutter 2020).
The solution selected for CSR in Intercontinental Hotel Groups is aligning corporate social responsibility with business strategy. It is the best solution among the above all for dealing with the issues of CSR in the organization. Implementing or aligning CSR within business strategy will reflect in enhanced brand image as well as greater profit for the organization. Moreover aligning CSR will help the organization to focus on its goal and objective. The organization will have benefit as it will work for common goal. It will also reduce the typical hierarchies that are generally followed in the organization (Zizka 2017). As of result of this alignment the business will take a wide interest towards social issues rather than running behind the profit. It will not only attract large base of customers having same values but will also result in higher revenue for the organization. The organization strengths like large workforce will help in achieving this solution.
The brand image of the company will increase as the business will not only implement CSR but it will follow it. As a result of which, it will also generate awareness about CSR is neighboring companies. The business will be socially recognized as it will participate in wider perceptive of social issues within the community within which it is running. The implication of solution on company’s triple bottom line is discussed below:
Social: The business will be social recognized as it will participate in issues like waste reduction and its recycling, proper use of resources and many more. The organization will able to gain respect from local communities and governments. As a result of which, the brand image will enhance in the hospitality industry along with the globalization (Rhou and Singal 2020).
Profit: Increase in the brand image will increase the attraction of people towards that organization that share same value. As a result of which the revenue will also increase. Moreover, organization will also has less turnovers as a result of its good reputation in the local community. Good reputation always results in diminishing of cost from various sectors. Besides this, productivity and efficiency of worker will also improve. Observing the all over impact, the organization will be also have chance for good promotion in social media platform resulting in rise in the net income (Zizka 2017).
Environment: Better working environment will be created for the employees working within the organization. Employees will be happy and dedicated towards the work. Green environment is a result of energy salvaging and recycling of waste. Better control towards waste and resources will enhance the working of the organization and move towards better future. Organization will implement strategies to control wastage of water and energy. Use of green energy will result in better surrounding environment (Ettinger,Grabner-Kräuter, Okazaki and Terlutter 2020).
The issues related to sustainability involve water issues, waste issues, utilization of energy and others related issues were founded in the previous assignment. Sustainability is one of the important issues faced in the hospitality industry and it is important for different organization to find solution for this issues. The solution of the issue faced by Intercontinental Hotel Groups related to sustainability is as follows:
The organization can limit the wastage of water through various ways like, recycling the water, using smart shower etc. Smart shower helps in water wastage as they limits the showering time to seven minutes. Millions of gallons of water can be saved through this technique. For water management, the organization can initiate various programs like project plants program, rain water harvesting and can reuse the dirty or greywater for flushing toilets, for irrigation purpose and for fire suppression system. Use of less water results in less use of energy by the organization resulting in cutting utility costs (Clayton and Radcliffe 2018).
Switching to eco-friendly energy is the best way to resolve the issues related to sustainability in the organization. Use of eco-friendly energy does not harm the environment as well as after installation it does not require that much budget to service the defected parts. To shift towards eco-friendly energy, the organization is required to generate LEED-certificate for its property. It not only provide better quality of air but also it will be safer for the guests and staff members (Baland, Bardhan and Bowles 2018).
It is one of the best solutions to reduce the wastage of light energy. Solar panel will store energy from sun and the efficient light bulbs will use less electricity. Apply of this technology will help the organization to improve its energy consumption which will result in rise in the net income of the organization. Moreover, applying this technology will also help the organization to get better recognition. Using such techniques results in less consumption of energy up to 25 per cent to 80 percent that that of traditional light bulbs (Yusoff and Nejati 2019).
It is one of the sustainable ways to keep the surrounding clean and green. Most of the hotels are providing guest with a SuitePad which offers them a green option in which the guest can help the organization to preserve the environment. Moreover, this tablet empowers the guest by making their stay greener by forgoing housekeeping. Guest can send notification to the hotel for the next day cleanup of the room (Jones, Hillier and Comfort 2016). It is one of the best technology used tell day by various hotels. Many hotels have claimed that they have saved a massive cost through this technology and have gained sustainable benefits. This technology also encourages the guest to go green and help the organization to stay clean and sustainable.
Reducing the waste food is one of the best things that an organization can do. To reduce the waste of food, the organization can find the needy ones who need the food or can make contacts with the organization that works to help poor people. This not only will help the organization to improve its image but will also result in greater recognition in the hospitality industry. In addition, reducing the carbon emission is one of the way that leads an organization to sustainability (Nair and Choudhary 2018). Offering suitable alternative for such equipment’s will help the organization to move towards green environment.
The common problem faced by Intercontinental Hotel Groups is water utilization and degradation of waste along with consumption of energy. The solution selected for sustainability issue in Intercontinental Hotel Groups is implementing water management systems, recycling of waste and use of ecofriendly energy. The name itself says all the remedies to move towards the sustainability. Implementing water management will help in water utilization and waste recycling will help the organization to move towards greener environment. Ecofriendly energy will reduce the consumption of energy. This will make the organization capable with corporate social responsibility as well as help it to move towards sustainability.
The brand image of the organization will improve as using ecofriendly energy will lead to LEED certificate holder. The organization will get extra recognition due to implementation of recycling system. Guest will promote through mouth to mouth promotion seeing the proper use of water and use of energy.
Social: The organization will able to gain respect from local communities and governments. As a result of which, the brand image will enhance in the hospitality industry along with the globalization (Clayton and Radcliffe 2018).
Profit: This solution will result in less turnover due to use of ecofriendly energy and water management. It results in high net income for the organization. Besides this, productivity and efficiency of worker will also improve.
Environment: The organization will move towards sustainability of resources resulting in greener environment and better use of waste and energy. Better control towards waste and resources will enhance the working of the organization and move towards better future(Clayton and Radcliffe 2018).
It can be concluded that number of solutions were suggested for the two issues identified for InterContinental Hotels Groups. The solution identified for Corporate Social Responsibility issues in Intercontinental Hotel Groups was aligning corporate social responsibility with business strategy. On the other hand, solution identified for sustainability issue was implementation of water management system, recycling of waste and use of ecofriendly energy. The report has briefly discussed the selected solution for each of the issues and has provided justification of why the solution is strategic to the organization. The report has also explained the implications of the solution on the brand image of the organization and the company’s triple bottom-line (profit, social, environment). Moreover, the report has demonstrated the concepts of strategic management by analyzing the business environment and assessing the strategic position of tourism and hospitality enterprise InterContinental Hotels Groups (IHG), and taking the influences of socio-cultural, economic and sustainability into account.
Baland, J.M., Bardhan, P. and Bowles, S. eds. 2018. Inequality, cooperation, and environmental sustainability. United States: Princeton University Press.
Clayton, T. and Radcliffe, N. 2018. Sustainability: a systems approach. London: Routledge.
Ettinger, A., Grabner-Kräuter, S., Okazaki, S. and Terlutter, R. 2020. The Desirability of CSR Communication versus Greenhushing in the Hospitality Industry: The Customers’ Perspective. Journal of Travel Research, p.0047287520930087.
Guzzo, R.F., Abbott, J. and Madera, J.M. 2019. A Micro-Level View of CSR: A Hospitality Management Systematic Literature Review. Cornell Hospitality Quarterly, p.1938965519892907.
Jones, P., Hillier, D. and Comfort, D.2016. Sustainability in the hospitality industry. International Journal of Contemporary Hospitality Management. 8(2).
Kim, H.L., Woo, E., Uysal, M. and Kwon, N. 2018. The effects of corporate social responsibility (CSR) on employee well-being in the hospitality industry. International Journal of Contemporary Hospitality Management. 10(2).
Nair, G.K. and Choudhary, N. 2018. Sustainability in the Hospitality Industry: A Social Factor Dimension. EMAJ: Emerging Markets Journal, 8(2), pp.34-44.
Rhou, Y. and Singal, M. 2020. A review of the business case for CSR in the hospitality industry. International Journal of Hospitality Management, 84, p.102330.
Yusoff, Y.M. and Nejati, M. 2019. A conceptual model of green hrm adoption towards sustainability in hospitality industry. In Corporate Social Responsibility: Concepts, Methodologies, Tools, and Applications (pp. 400-421). IGI Global.
Zizka, L. 2017. The (mis) use of social media to communicate CSR in hospitality. Journal of Hospitality and Tourism Technology. 11(1).
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