Importance of Corporate Sustainability Management in Hospitality Industry

This article discusses the importance of corporate sustainability management in the hospitality industry. It explores the contributions of the industry to various issues and analyzes the impact of these issues on profitability. The article also highlights the significance of sustainability in the corporate sector.

Title: Sustainable Hospitality
Management
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2021
Table of Contents
Introduction................................................................................................................................3
1. Critically evaluate the extent to which the hospitality industry contributes to each of these
issues..........................................................................................................................................4
Social issues faced by hospitality organisation .....................................................................5
2. Analyze the impacts that these issues have on the hospitality industry’s profitability..........8
3. Explain and critically evaluate the importance of corporate sustainability management in
hospitality industry...................................................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

Introduction
Project refers to a temporary endeavour having start and end. It is generally used for
devising unique commodities, services as well as outcomes. As hospitality industry is service
oriented, proper evaluation and completion of projects based on customer experience or
expectations enables industry to deliver value to their customers. Hospitality industry
includes lodging, hotels, theme parks, event planning, resorts etc. Overall, it is a customer-
facing industry. Hilton is a multinational company that serves in hospitality industry (Pirani
and Arafat, 2014). It mainly deals with hotels and resorts. Different organisational example
that relate with hospitality is undertaken to perform all services in proper manner. This report
consists critical evaluation of contribution of hospitality industry in relation to sustainable
issues. It also covers analysis of impact of these issues on profitability of hospitality industry.
Further, importance of corporate sustainability management in hospitality industry is
explained.
1. Critically evaluate the extent to which the hospitality industry contributes to each of these
issues
Hospitality industry contributes widely in issues that are associated with dynamic
business environment. As hospitality industry is composed of distinct sectors including
lodging, recreation, travel and tourism, it contributes in issues that consumers are facing
through establishing recreational focuses, providing services that covers spectrum of
properties and transportation (Konovalova and et. al., 2018). For example, economic issue is
one of the issue in which managers of Hilton contributes by strengthening international
relations, creating employment and stimulating rural development. It has been critically
evaluated that Hilton have employed to huge people from distinct areas of globe that
improves employment level of a nation. Also, the company has built its premises in rural
areas that leads to fostering demand and supply related to hospitality products that contributes
widely in resolving economic issue.
Hospitality sector is managing hotel at a large level, so it is important for management
to complete all work with deep knowledge in the hotel management. Key contributions of
Hilton Hotel in some of issues are as discussed:
Environmental issues: In the present scenario, there are different tasks performed by
management and it is used to manage and complete work with more efficiency. It also leads
management to complete all tasks with minimising organisation issue.
Types of environmental issues faced by management of Hilton hotel is mention as follow:
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Water usage- This is one of the major issues which is faced by the management of
hotels and resorts because an organisation use water for various sources that include long
time use of shower by guest. To solve the issue related to water usage, management of Hilton
contributes by installing water efficient toilet in its rooms, kitchen and other places. The
company have been using paper bags despite of plastic and has implemented septic tanks that
results in contributions toward the environmental issue.
Pollution- Is an issue which is raised many times in the hospitality organisation.
High outputs of oil, gasoline, natural gas and coal are used by all companies. Similarly,
Hilton Hotel also utilise this factor for generating energy, but it creates pollution within
environment (Franco and et. al., 2020). So, the amount of pollution create by organisation in
hospitality sector is a major problem for organisation.
Food waste- There are various times faced by management due to which food is
thrown away because it is not in the position of reusable. This also creates problem for
environment. This also leads management to create action for throwing food and demand as it
places on the food and demand on basis of environment. Moreover, in this issue, managers of
Hilton contribute by providing leftover food to needy people and store food in correct manner
(Hilton, 2021). There is a practice used in the company in which all staff members that are
unable to go home and cook food, eats at the organisation that contributes in dealing with the
issue effectively.
Social issues faced by hospitality organisation
Diversity: As per Lai and Fu, (2021) Diversity generate challenges for individuals
and it create issue for organisation because of different background this is complex for
workforce to perform their work in proper manner. It also impacts on overall services and
operations of hospitality business as operations are not performed in proper manner due to
change in value and background of employee's. This also impacts on overall efficiency of
organisation. So it create problems for management to manage company operations and
functions in proper manner. Sustainability is obtain by management by performing all work
with improving coordination among employee's.
Economic issues faced by organisation
Hospitality, the concept related with hospitality sector define aspects which is used to
receive a spirit that is positive for Hilton. It increase goodwill for organisation and this

implement warmth, protection and respect to the individuals or visitors. Some of the major
issues which is faced by hospitality organisation is mention as follow:
Brexit – It is withdrawal of UK from EU (Gutiérrez-Martínez and Duhamel, 2019). In
this, the greatest cause of worry or the issue that hotels or hospitality organsiation have faced
is decrease in value of pound and people especially employees belonging to European Union
have left working in locations of UK. From the macroeconomic point of view, synchronised
global slowdown and a continuation of Brexit related uncertainty means that the UK
economy's loss of momentum will persist during 2020. Due to this, relationships of hotels
including Hilton have become weak. In order to deal with the economic issue, managers of
Hilton have attracted skilled professionals from United Kingdom and opened new premises
of Hotel so to manage day to day operations effectively. The contribution has also helped
small businesses to collaborate with the multinational hospitality that have improved
economic situation of the nation.
Extent to manage environment issue
Managing environment related issue is very important for all types of hospitality
organsiation. There are ample number of environmental issues that are faced and facing by
companies, also at same time multiple number of strategies being adopted to contribute in
dealing with the issues. For example, Hilton contributes in dealing with environmental issues
through adopting practices that reduces the environment footprint that is managed at half and
double level for managing its task to deal with carbon emission. Moreover, practices of
company results in sending zero-soap to manage landfills. It also results in managing work in
proper manner and it is because environment guidelines generate long term challenges for
organisation which contributes in restricting all operations of business.
Managers of Hilton have devised corporate responsibility strategy in order to work to
contribute in sustainable development agenda. With this, the entity is planning to perform key
role in the world and promote social good within work premises.
Dimensions of the problems
Atmospheric scientists and global business perspective demonstrate that the
documentation aspects demonstrate that number of concentration is increasing due
to unexpected addition in carbon dioxide. It also flow and attempt about different
attempts through which number of greenhouse gases within atmosphere is used
towards constant accumulation which impacts on future world.
Positive factor
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Environmental aspects help in understanding about issues pertaining within
environment or climatic situations. It assist in understand about different areas that relates
with “acid rain”. For controling environment pollution, it is identified by management of
Hilton and other hotels have adopted sustainability factors that aids towards reducing
pollution contain aspects from their operations. It is determined as positive factors because
this aids to improve company goodwill in market (Hilton et. al., 2016). In context of business,
person who explores new innovate methods and if managers of Hilton hotel do accept work
methods that accept and define solution then it is able to complete work with efficient
manner.
Extent for managing social issue
Most of individuals understand and identify changes that is used for obtaining
sustainability in market. It have been analysed that to meet needs of society, hospitality
companies are burning fuels for the purpose of preparing and heating food, travel from one
place to another and many more that results in causing reasons for causing social issues. Air
pollutants include ozone, carbon dioxide and nitrogen that are generated from hospitality
organisation have direct consequence for completing task with managing atmosphere in
environment.
To manage social issue specifically cleanliness and technology management consider positive
aspect that improve in organisation performance. Along with this persons make aspects by
which tasks are arranged and controlled to manage all functions which reduce carbon from
person for managing task in proper manner (Li et. al., 2019).
2. Analyze the impacts that these issues have on the hospitality industry’s profitability
Within hospitality industry, there are certain issues that impacts adversely profitability
of each company in adverse manner. Issues are part of all organsiation as no company is able
to make profits or improve its profitability without devisisng and implementing strategies to
gain success in managing issues. For example, because of skill shortage, managers of
hospitality institutions fail to control organisation operations that create problems and
barrier for management to retain similar profits in company (Aragon-Correa, Martin-
Tapia and de la Torre-Ruiz, 2015). There are various problems generates and because
of low profits and it impact on company profits.
Environment issues impact on profits
Change in climate generate problems and it is explained as a global issue that generate
major impacts on company profits. Hospitality organisation perform their business to

understand of climate factors. Example- change in temperature generate problem such as in
cold places, customer demands for low temperature rooms. So energy is required to control
temperature within rooms and to arrange resources or tools for this cost of business increases
that negatively impacts of profit of the enterprise. Thus, within Hilton Hotel where it operates
in changing weather locations, environment change creates challenges and it impacts on
profit of organisation. It refers economic responsibility is an important aspect and this
improves market sector for organisation to manage work according to environment
reputations to control company operations in proper manner. (Metaxas et. al., 2019).
Economic issue and it impact on profits
The hotel industry is cyclical, and it states that the business depend on the economic growth
of business. Within the period of economic prosperity, it is identified that income is raised on
the basis of areas that is related with business. With mitigation about risk factors this is
identified persons make aspects that improve company economy by controlling business cost.
This also reduce profits for business because economic of organisation depend on economic
conditions (Montenegro et. al., 2020). Example- If the economics of country is developed
than it is easy for the organisation to attract a greater number of visitors because individuals
are ready to purchase and consume hospitality services.
The management period define revenue that is raised through high period as it also make
economic of stronger. Due to Brexit it is complex for organisation to manage and perform
their task with perspective of business as individuals face challenges in managing and
purchasing products because of low flow organisation activities.
Social Issues
It refers to a problem that societies are striving hard to solve which can be unsatisfactory and
causing harm to people. In relevance to Hilton hotel, managers has announced to cut practices
that will reduce environmental footprint in half and double that will result in having positive
effects on society (Hilton, 2021). The social aspect focus on forces that is related with society
it includes family, friends, neighbour and media.
Hence it is also impacting its sustainability into the market it is diminishing natural resources
for expanding its business worldwide (Raimi, 2017). Company must generate more
employment opportunities therefore provide career engagement training skills to young
youth. It will impact its growth and will decrease its gross sales for long-run.
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3. Explain and critically evaluate the importance of
corporate sustainability management in hospitality
industry
Corporate sustainability management is an approach that is used by business to
sustain for longer run in market. It manages impact of business on profit, people as well as
planet. Corporate sustainability management indicates towards sustainability of firm by
managing economic, social and environmental dimensions (Sundari, 2017). Importance of
corporate sustainability management in relevance to Hilton is discussed below:
Competitive Advantage: It provides competitive edge to firm as it ensures study of
business environment to forecast business actions and prepare better strategic plan for
expansion of business scope. It is a tool that differentiates firm from competitors by offering
various benefits to society for attracting individuals towards their services. The positive
aspects that relates with CSR perspective define about overall policies and strategies related
with areas that improve company efficiency by undertaking persons that boost company
efficiency. On the other side, negative aspect refer that it is complex to adopt and review CSR
practices in constant manner (Lorente and Alvarez-Herranz, 2016).
Increased environmental concern: This approach suggest optimum utilization of
available resources and at the same time avoidance of wastage of resources. Hence, concept
of green hotels' can be applied by Hilton with the use of this framework. The concept of
green hotels is to develop and manage all operations that does not impact on environment
with negative approach. Moreover, concept of green hotels ensure value is improved through
attracting individual by which more person is attracted for completing task according to
brand image of organisation. It will lead to increment in brand image of business. Energy
spend and consumption is second highest operating cost and to minimise energy reduction
this is important to introduce steps by which wide-portfolio is achieved through discussing
policy related with Light-Stay because this policy aids persons to manage and franchised
property by minimising consumption of energy level, water and waste goal (Metaxas,
Chatzoglou and Koulouriotis, 2019).
Increases brand awareness: Brand awareness indicates recognition of brand by
customers. Sustainable management leads to improvement of brand awareness of Hilton
(Hilton, 2021). Goodwill or brand awareness perform an important role and this increase
about perception of customer with a positive approach. The brand value of organisation is
also enhanced by performing work with brand value and awareness in managing task with
understand of customers.

` Increases productivity of business: Corporate sustainability management ensures
effective policy making by management. It results in reduction of costs by strategies of
energy conservation in Hilton. At the same time, proper planning leads to enhancement of
employees' productivity. With implement of sustainability aspects this is easy to manage and
complete work by development of competitive-edge in market. Thus, high productivity
increase sustainability by performing work with more efficiency in effective manner. This
overall improves productivity and profitability of business as managers of company makes
practices that results in completion of task with more efficiency that leads to obtaining long
term objectives.
Advantages of corporate sustainability
Profitability and value- In the present market conditions, CSR policy improve the
organisation economy and it is beneficial for development of performing task by completing
work in efficiency manner. Operational cost is also cut and managed by organisation by
providing accountability and responsibility to each person as per their roles.
Better customer relations- Majority of customesr have a thinking that companies are
socially responsible. At present, customers are generally attracted towards those business that
have developed a reputation of being best corporate citizen. In case with Hilton, strategy of
corporate social responsibility has benefitted in building effective customer relations by
providing 10 per cent of reduction on prices of products which deemed to be socially
responsible
Disadvantages of corporate sustainability management
Conflicts with the Profit Motive: Even for larger companies, the cost of CSR can be
an obstacle. It is believed that corporate sustainability management is an exercise in futility.
In association to Hilton, management has a fiduciary duty to its shareholders, and CSR
directly opposes this, since the responsibility of executives to shareholders is to maximize
profits.
Conclusion
According to the above report, it is concluded that sustainability hospitality
management perform an important role to manage work with completion of task according to
competitive-edge. Along with this project are an important part and this leads management in
making perspective which is useful to control all activities with the help of performing task
by analysing social, environmental and economic issue. Further, this report also consider
impact about analyse of different issues on company profits to manage hospitality
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organisation appropriately. In the last, importance of corporate sustainability management
within context of hospitality business is also included in the report.

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