Main Feature

The good samaritan

Whether its adopting a village or cleaning beaches, hotel companies are taking the true spirit of hospitality out-of-the confines of their properties to the community at large. Express Hospitality gives you an insight into the 'Corporate Social Responsibilities' undertaken by hotels in India

In the past 50 years, globalisation has helped generate unprecedented prosperity. But persistent poverty in many areas, mismanaged economic development, environmental degradation, social inequalities and disappearing cultural heritage all threaten to undermine the progress that has been made.

In order, to face these challenges, there has been a growing emphasis by world leaders on the need for long-term 'sustainable development'. Having said that, many companies have a long tradition of corporate philanthropy, taking portions of their profits and returning it to society as charity to a variety of causes.

However, with the emergence in the last decade of a global market-based economy, there is growing consensus that the private sector has a larger role-play. Hence the emergence of Corporate Social Responsibility (CSR). While there is no single definition of CSR, it clearly does not refer just to charitable contribution detached from a company's core business. Business houses define CSR as a practice of adopting open and transparent business practices that are based on ethical values. It means responsibly managing all aspects of operations for their impact not just on shareholders, but also on employees, communities and the environment. Ultimately, CSR is about delivering sustainable value to the society at large, as well as to shareholders, for the long-term benefit of both.

"Because of its size and its interconnectedness with all parts of the economy, the travel and tourism industry (hotels in particular) is one of the largest sources of economic activity in the world. At the same time, it can be an important force for sustainability by raising the living standards in underdeveloped areas, promoting preservation of natural and human environment and providing a vehicle for peaceful international exchange," opines Jean Claude Baumgarten, president, World Travel and Tourism Council.

In India, today, more and more hotels are taking efforts to play an active role in the development of society. Both the catastrophes, of the 26/12 tsunami disaster that took Asia by surprise and 26/7 deluge that bought the hustle and bustle of Mumbai city to a halt, showcased the humane side of the business of hospitality.

During the Mumbai deluge, most hotels in Mumbai were presented with an opportunity to do rollicking business as incessant rains left scores of people in Mumbai city devoid of shelter and comfort, but many hoteliers opted to set aside profitable gains and play the 'good samaritan'. Whether it was offering discounted rates on the current tariffs, free meals and beverages, providing accommodation in banquet halls or allowing more than the regular head counts per room. The same spirit of hospitality was also evident in the areas affected by the tsunami when hoteliers tried to provide shelter and food to those left destitute.

But calamities alone are not the only times when social responsibilities of different hotels are brought to the fore. CSR is forming an integral part of a hotel's non-operational activity.

The key theme of corporate social responsibility of most hotels is to build livelihoods with a clear focus on women, craftsmen and artisans and education of children. Employees of all hotels and the corporate office contribute and actively participate in numerous on-going projects and events. The core competencies of the hospitality business have been utilised to make these themes truly relevant and meaningful.

The Tata ethos places a special emphasis on community, environmental and ecological issues; this emphasis also percolates to its hotel division. "Community development and environment is a focus area within our overall corporate social responsibility matrix," says Kishor Chaukar, chairman, Tata Council for Community Initiatives. Imp-ortant as it is, following directives and guidelines from within and without is just one facet of the Tata approach to CSR issues.

"The greater portion of what the group does in this sphere is by choice and conviction. The central tenet of this philosophy is people and communities, often in rural regions and frequently facing inequitable struggles to secure livelihoods," Chaukar further added. For example: the Taj Group's community development programme in Chennai took a Piscean turn when it found a different sort of supplier for its seafood requirements: women self-help groups (SHG). And that was but the beginning. The success of this venture encouraged the Taj to look for more SHGs who could supply other requirements. It soon tied up with the Ullasa Paravaigal Women's SHG to supply vegetables. Here, too, the women were trained by Taj personnel in hygiene and taught to clean vegetables with chlorine solution in pure water.

Similarly, ITC believes that an effective growth strategy for our nation must address the needs of rural India, home to 75 per cent of the poor in India. "It is imperative to ensure that India's economic growth is inclusive, embracing its villages, so as to free millions of our disadvantaged citizens from the indignity of poverty," expressed Y C Deveshwar, chairman, ITC Limited. ITC has significantly widened its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched drylands; empowering rural women by helping them evolve into entrepreneurs; enhancing livestock quality to significantly improve dairy productivity; providing infrastructural support to make schools exciting for village children. Through these rural partnerships, ITC touches the lives of over 3 million villagers across India. "For ITC, these are expressions of a commitment beyond the market," said Deveshwar.

According to Vithal Kamat, chairman and managing director, Kamat Hotels India Limited, "Since, the inception of the Orchid Ecotel, our corporate social responsibility has focussed on environmental issues. The group has taken its environmental initiatives outside the purview of our hotel premises to the community with Advanced Locality Management (ALM) programmes. Beach clean-ups has been another constant effort undertaken by various properties from our stable."

Another hotel group that is vocal as well prominently active in its CSR role is the Oberoi Group. According to its patriarch, PRS Oberoi's vision, the group sees itself as an organisation which is conscious of its role in the community, supporting social needs and ensuring employment from within the local community. It is also committed to the environment, using natural products and recycling items, thus ensuring proper use of diminishing natural resources.

With Indian hotel groups actively pursuing their respective roles in CSR activities, international hotel chains like Marriott International, Carlson and Accor too have been assertively reaching out to communities with their varied CSR programmes in India. Marriott International actively supports communities around the world through its wide-ranging outreach programme - 'Spirit To Serve Our Communities'. Through this programme, Marriott encourages its hotels and employees to give resources, time and energy to activities that help solve critical needs. Staff involvement is central to all activities, and each year employees give thousand of hours and million of dollars in cash or in-kind support to help sick children, build houses, mentor students, assist in disaster recovery and clean up the environment.

"I've been in this business for a long time and know first hand that tourism is the economic corner stone of many communities around the world. While a thriving tourism industry can provide for a better livelihood for local people, it cannot be at the expense of the environment and local culture," expressed J W Marriott Jr, chairman and CEO, Marriott International.

To fulfil its commitment, Accor has integrated environmental stewardship into its corporate governance and reporting structure. An Environmental Charter and senior-level committee on Sustainable Development guides environmental activities across the world. "Corporate Social Responsibility is part of the future for all companies. With the creative use of incentives and awards, the entrepreneurial spirit and market forces can be harnessed for the good of business and society," said Michael Issenberg, managing director, Accor Asia Pacific.

At Carlson, environmentally sustainable practices are encouraged company-wide, including water conservation, paper reduction, energy management and employee awareness training programmes. Marilyn Carlson Nelson, chairman and CEO, Carlson Companies Inc, sums it up saying, "As global companies become citizens of everywhere, each must be on guard that they don't become 'citizens of nowhere’.”