MMH733 Trimester 2: Ethics for Managers - SDG Analysis of Host Hotels

This report provides an in-depth analysis of Host Hotels & Resorts' approach to corporate social responsibility and its alignment with the United Nations' Sustainable Development Goals (SDGs). The report begins with an overview of the SDGs and their importance, followed by a detailed examination of Host Hotels & Resorts, including its history and current business operations. The core of the report focuses on the challenges Host Hotels & Resorts faces in implementing the SDGs, specifically in areas such as clean energy and resource conservation, and how the company integrates sustainability into its corporate policies through responsible investment, environmental stewardship, and corporate citizenship. The analysis highlights the company's triple bottom line approach, emphasizing its economic, environmental, and social impacts. Finally, the report identifies key SDGs relevant to the company's activities, reviews its corporate social responsibility programs, and offers recommendations for future development and identifying further potential evaluative indicators of the SDG targets. The report is based on the MMH733 Ethics for Managers course.

Running head: ETHICS FOR MANAGERS
Ethics for Managers
Name of the Student
Name of the University
Author’s Note

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Abstract
The following paper will discuss about the corporate social responsibility and the measures
that should be taken by the companies to achieve the sustainable development goals by the
companies. The indicators for achieving the sustainable development goals will be discussed
in this paper as well. In this report, several other things have been highlighted as well. The
chosen company for this paper is Host Hotels and Resorts Inc. The ways for generating the
values of the company have been highlighted in this report. The importance of diversity and
its applications in this company have been evaluated. The important factors that are gone
through in this paper are about the gender equality, global health and food security. The
sustainable developments goals will have to be maintained by the organizations have to be
maintained and these things have been described in this report as well. The innovative ways
to deal with these challenges have been highlighted properly.

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Introduction
The Sustainable development goals are a collection of 17 major environmental and
social goals laid out by the United Nations General Assembly. These goals are a follow up
initiative of Millennium Development Goals as undertaken by the United Nations. However,
MDGs came with a major drawback, i.e. lack of partnership among the national and
international organizations and government agencies. Therefore, the UN developed the SDGs
incorporating these 17 goals alongside 169 target pointers with the vision of achieving social,
economic and environmental sustainability. The international institution targets to achieve
these targets by 2030 by. All the 193v member-countries agreed and ratified the declaration,
aiming to improve the ‘donor-recipient’ relationship (UN.org, 2018)
Major business organizations operating nationally and internationally have adopted
the prescribed SDGs and implements in their policies and strategies. They usually execute the
targets through their CSR outreach. Different entities have undertaken different approaches
and initiative to execute their sustainability strategies aligning with the SDGs that is suitable
for them. Not only the corporate entities, but the government agencies and public institutions
too have adopted the SDGs in their policies and procedures. (Waage et al., 2015)
Company Overview
Host Hotels & Resorts, Inc. (HST) is one of the largest real estate investment
trust (REIT) of the world in the present times. It is also the owner of one of the largest upper-
scale luxury hotels, operating mainly in the USA. Founded in 1897, HST established its first
property in Kansas City, Missouri. Formerly known as Van Noy Railway News and Hotel
Company, it was renamed to Host International Company in the following years. In 1982,
Marriott Corporations took over the entity for $120 million. Further, the acquisition was
divided into Marriott International and Host Marriott Corporation. (hosthotels.com, 2019)

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Further, Host Hotels & Resorts was incorporated as a Maryland corporation in 1998
and became one of the most prominent lodging RIET. From 2006 to 2017, it expanded its
business to the international arena by acquiring 34 hotels from Starwood Hotels & Resorts
Worldwide, Inc. which included 6 upscale properties in the Europe. Presently, as a self-
administered and self-managed REIT, it invests in upscale travel and leisure properties across
The USA, featuring globally renowned hotels and resort brands. As of February, 2018, the
company refocused on the US market and retracted its business to the country, exiting from
the global market. Presently it owns an estimated 93 upscale hotels across the USA. Known
for being the largest lodging REIT, Host Hotels & Resorts owns 40 iconic hotels. The
properties are mostly situated in the prime locations in the business districts of the USA. The
entity operates with a consolidated portfolio along with asset management, investments,
development, design and construction, tax, legal, accounting and corporate finance. The
organization aims to maintain a globally diversified portfolio and create value and
profitability of the entity-owned hotels through sustainable business practices.
(hosthotels.com, 2019)
Challenges to implementing SDG in the organizational function
As a member nation of the United Nations, The United States of America has adopted
the SDGs in their government policies and legislation. Under the governance of President
Obama, the USA had released the first U.S. Global Development Policy in 2010. The policies
includes several premium SDG targets such as global health, food security, gender equality
and women empowerment, clean energy, climate change and resilience etc.
Besides, to ratify the UN declaration, it has devised its strategies to join the global
partnership and cooperation program. As a consequence, business entities and government
agencies are subject to partner and co-operate in the realization of SDG 2030. As a part of

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this, Host Hotels & Resorts observes the sustainable practices in their operations. However,
as commentators suggest, the US is struggling hard with keeping up with the SDGs. At
present, it is estimated, the USA is falling behind in achieving 12 SDGs out of the 17. Within
the 12 lacking areas, climate action and partnership for the goals are the major lacking areas
for the nation (IISD Hub, 2019). This lack of cooperation has hindered the efforts of Host
Hotels & Resorts in their progress to achieve the estimated SDG targets.
Moreover, the main concern for a lodging facility such as Host Hotels & Resorts, is
the implementation of clean energy and ensuring natural resource conservation. These
executions have an influence on the cost-effectiveness of the overall operations. Therefore,
the organization either has to come up with some innovative resolutions to this challenge, or
has to consider their profitability margin for the sake of sustainability.
Sustainable Development Goals of Host Hotels & Resorts, Inc.
Policy Statement
Host Hotels & Resorts has adopted SDGs in designing their corporate policies and
emulates them through their CSR outreach programs. Also, they implement these SDGs in
their general strategic executions. The mission of their corporate responsibility programs
highlights the company’s approach towards sustainability. The entity tries to emulate value
creation through sustainability leadership (hosthotels.com, 2019). It tries to fulfil its
responsibilities towards the partnership and the achievement of global goalsby integrating
sustainability in their strategic framework. The framework follows three themes to indicate
the sustainability approach in their business, namely Responsible Investment, Environmental
Stewardship and Corporate Citizenship.

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Current Sustainable Foci: Triple Bottom Line Approach
Host Hotels & Resorts describes their corporate values as involving Excellence.
Partnership, Integrity and Community (EPIC). The mission statement of the company states
“Let’s do something EPIC”. In the light of their corporate values, the mission statement can
hence be understood as a perfect depiction of sustainability focus in their strategic
framework. By this guideline, the organization ensures their collaboration and engagement
with the stakeholders related to the entity in terms of corporate responsibility. The company
follows a triple bottom line approach to deliver to their achievement of sustainability. This
approach can be interpreted as focus on profit, planet and people. In other words, the
organization’s strategy is based on the economic impact, environmental impact and social
impact of their activities. Moreover, the execution of these strategies represents the SDG
indicator of the company (hosthotel.com).
Economic impact: Responsible Investment
Host Hotels & Resorts maintain their responsibility towards sustainable development
goals at same time with an eye to secure profitability and cost-effectiveness. The strategy
adopted by the organization to meet this requirement is investing responsibly in the projects
that focus sustainability.
Over four years, the organization has invested an amount of $30 million in
decentralized energy generation that includes solar photo-voltaic (PV) systems, on-site steam
to gas systems conversions and a fuel cell plant. The company projects an outcome of 8.7
kilowatt hours of energy annually, serving an estimated amount of annual electricity
requirement of 1000 houses. It will also expected that these alternative energy plants will
reduce approximately 7300 metric tonnes of CO2 emission.

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This article is a report on Host Hotels and Resorts’ sustainable development goals and
strategies to meet them. Host Hotels and Resorts is a travel and leisure company working
internationally. The aim of this critical report is to identify the SDGs adopted by the company
and examine their execution and reporting of the same. In this article, the basic notion of
SDGs will be described in order to provide a comprehensive account of the company’s
sustainability policies and strategies. Further, the report will explore the major challenges
faced by the company to implement those strategies. The report will also analyse the
utilization of the goals in the planning and reporting by the company. Finally, it will try to
come up with recommendations for implementing SDGs in the future development of the
organization and methods for identifying further potential evaluative indicators of the SDG
targets.
The organization also has developed an ROI opportunity diagnostic tools that will
identify investment opportunity in water and energy saving technology that would ensure
returns in all the established portfolios across the country. (hosthotels.com)
Environmental impact: Environmental Stewardship
The main focus of the organization’s environmental responsibility is conservation of
natural resource and reduction of greenhouse gases. The company ensures that all their
properties and associated portfolios work in alignment of their SDG strategies based on
reduced energy consumption, water usage and carbon emission. It also takes serious stance
against food waste and contributing in landfills, as well as encourages the increased use of
recyclable items such as paper and wooden products. It also ensures that the establishments
use low energy consuming appliances and electronic items as certified by EPA ENERGY
STAR, e.g. LED lightings, low-flow plumbing fixtures etc. Thus, the organization highlight
reduction of environmental footprint, emphasizing the cut down on energy and other natural

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resources, as the central focus of their environmental sustainability programs.
(hosthotels.com)
Social Impact: Corporate Citizenship
Host Hotels & Resorts promotes the brand image as a committed and responsible
corporate citizen by taking effective measures to strengthen the related community by
facilitating community engagement, financial support, volunteer service and industrial
collaboration. Oftentimes, they partner with welfare-based organizations and educational
institutes to facilitate amenities and opportunities for improving public health, scientific
research, leadership development and education. The organization also envisions and execute
initiatives to serve the underprivileged women and men. It provides education, certification
and vocational programs dedicated to empower girls and women.Therefore, the organization
aims to build an empowered and economically sustainable community as part of their
corporate citizenship initiatives.(hosthotels.com)
Analysis of the SDG alignment and implementation
SDGs as Global Goals
The United Nation identifies a wide range of crises and issues that are posing as
crucial challenges to every nation in this world. The UN identifies them as global problems
and has invested research and deliberation to find out answers to those problems. As a
resolution, the United Nations General Assembly has prescribed a set of 17 sustainable
development goals to be achieved by the member nations by the end of 2030. The goals are
as following (UN General Assembly, 2015):
1. Affordable and Clean Energy
2. Sustainable Cities and Communities
3. Climate Action

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Rationale for the sustainable strategy and policies
Host Hotels & Resorts is a well-known organization for their corporate social
responsibility initiatives and policies. It has been recognized as the first hospitality company
to have its own greenhouse gas emission verified by the Science Based Target initiative. It is
also an acclaimed member of Daw Jones Sustainability Index North America. The
organization undertakes its corporate citizenship role to reduce environmental and social
impact and increasing profitability and value of its portfolio. The main focus of the
organization in the context of sustainability is the value creation through good practices of
corporate citizenship. (hosthotels.com)
SDGs adopted by Host Hotels & Resorts
Reviewing the corporate social responsibility programs and the rationale for the value
creation within the organization, 3 SDGs can be identified to be the most relevant to the
organization’s activities in this regard. Following the triple bottom line approach, these SDGs
can be described as the following:
SDG 7: Affordable and Clean Energy
The main focus of Host Hotels & Resorts has been development and adoption of clean
energy in all of their properties. The organization claims that 100% of their portfolio consist
water and energy efficient technologies. It has invested in several solar photo voltaic system
to generate clean energy in the various properties owned by the entity. Additionally, it has cut
down its energy consumption by 80000 MWhs by 2017.(hosthotels.com)
SDG 11: Sustainable Cities and Communities
The organization takes the corporate citizenship role very seriously and participates in
various community development programs. It supports communities through various
charitable organizations as well as by undertaking volunteering initiatives engaging the

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employees. It works on the fields of education, health, economic development, infrastructure
building etc. In 2017, the company supported over 150 charities and has offered 460
employee hours through 10 volunteer programs.(hosthotels.com)
SDG 13: Climate Action
The organization focuses to work on climate change by ensuring reduction of
environmental footprints. It has effectively reduced carbon and other greenhouse gas
emission by 252,104 metric tonnes since 2009. The water resource usage has been decreased
by 25% as well. (hosthotels.com).
Utilizing SDGs in the Organizational Planning and Reporting
Along with the declaration and adoption of the SDGs, the United Nations has also
asserted that reporting of SDGs as undertaken by the corporate entities serves an essential
role to realize the targets. As soon as the SDGs have been announced, researchers in this field
has remarked that active participation of different organizations is a necessary pre-requisite of
the SDGs. It is also asserted that transparency has been an essential paradigm for
organizational value creation (UN Global Compact, 2019). To emphasize the importance of
SDG strategy target reporting, the UN Global Compact has established alongside The Global
Reporting Initiative (GRI) an international platform-- Reporting on the SDGs.
The report from SDG Compass too asserts that making the SDG policies public serves
as an effective communication tool for corporate entities. Regarded as a good practice of
corporate SDG activities, transparent reporting may result in enhanced employee
engagement. This practice also is deemed beneficiary to provide a basis to construct a
dialogue with external stakeholders. These statuary bodies prescribe the organizations to
publish their sustainability report through their annual or quarterly reporting (SDG Compass).

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Host Hotel & Resorts follows GRI disclosure framework for reporting their corporate
responsibility performance. In their annual report, the organization lays out their yearly
performance and achievement in terms of SDG targets and indicators. According to the GRI
Index, the entity lists its relation and engagement with different stakeholders, governance
strategy, resource usage, human rights undertakings and so on(hosthotels.com).
The organization also utilizes the SDGs in their planning and strategizing. Some of
the major instances of such planning includes the organization’s waste management policy,
screening of new suppliers and vendors using environment-friendly criteria, employee benefit
package, training and development, diversification of management personnel and talent pool,
assessment of health and security measures for ensuring guest experience etc.
Recommendation and Conclusion
To meet the existing challenges and evolve to achieve the future targets, Host Hotels
& Resorts can review their SDG strategies and design a more sustainable approach. Although
the organization is doing an impressive job in this regard, it could work on is strengthening
partnership and cooperation to achieve SDG targets in the future. Sustainability is an essential
criteria for all the organizations in the contemporary social and economic setting. Hence,
Host Hotels & Resorts have to extend its activity towards developed SDG targets to achieve
organizational sustainability nonetheless.

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References
SDG Compass – A Guide for Business Action to Advance the Sustainable Development
Goals.Retrieved 20 August 2019, from https://sdgcompass.org/
Waage, J., Yap, C., Bell, S., Levy, C., Mace, G., Pegram, T., ...& Mayhew, S. (2015).
Governing the UN Sustainable Development Goals: interactions, infrastructures, and
institutions. The Lancet Global Health, 3(5), e251-e252.
Environmental Stewardship - Host Hotels & Resorts. (2019). Retrieved 7 September 2019,
from https://www.hosthotels.com/corporate-responsibility/environmental-stewardship
Responsible Investment - Host Hotels & Resorts. (2019). Retrieved 7 September 2019, from
https://www.hosthotels.com/corporate-responsibility/responsible-investment
Corporate Citizenship - Host Hotels & Resorts. (2019). Retrieved 7 September 2019, from
https://www.hosthotels.com/corporate-responsibility/corporate-citizenship
About the Sustainable Development Goals - United Nations Sustainable Development.
(2019). Retrieved 7 September 2019, from
https://www.un.org/sustainabledevelopment/sustainable-development-goals/
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https://www.unglobalcompact.org/take-action/action-platforms/sdg-reporting
IISD Hub. (2019). Fourth Edition of SDG Index and Dashboards Highlights Performance
Gaps on SDGs 12, 13, 14, 15 | News | SDG Knowledge Hub | IISD. Retrieved 7
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