Competitive Environmental Strategies in Hotels

Competitive Environmental Strategies in Hotels:
TThhee C
Caassee ooff M
Maarrccoo PPoolloo D
Daavvaaoo iinn tthhee PPhhiilliippppiinneess
Maureen
Angelica
T.
Padilla
Supervised
by
Adriana
Budeanu
Department
of
International
Economics
&
Management
MSocSc
in
Service
Management
97
pages/168,615
STUs
November
2012
Abstract
Hotels
particularly
affect
the
sustainability
of
the
natural
environment
due
to
consumption
of
large
amounts
of
natural
water
and
energy
and
leaving
behind
substantial
amounts
of
waste.
There
has
been
growing
social
concern
and
demands
among
different
stakeholders
for
environmentally
friendly
hotels.
Despite
the
growing
demand
and
popularity,
only
a
handful
of
hotel
companies
are
said
to
have
adopted
environmental
management
and
used
it
for
gaining
competitive
advantage.
The
study
takes
on
the
case
of
Marco
Polo
Davao,
a
chained
hotel
in
the
Philippines.
A
competitive
environmental
strategy
was
suggested
for
the
firm
after
examining
the
different
factors
and
actors
that
are
said
to
influence
the
firm’s
decisions
on
environmental
management.
The
perceptions
on
environmental
management
of
the
managers
of
Marco
Polo
Davao
were
first
looked
into.
An
examination
of
the
other
factors
and
actors
that
are
said
to
influence
managers’
suggestions
and
decisions
in
selecting
a
competitive
environmental
strategy
followed.
The
factors
include
environmental
legislation,
resources
and
capabilities,
facilitators/opportunities
&
barriers/challenges.
The
actors
include
the
suppliers,
employees
and
customers,
who
were
also
interviewed
and
surveyed
for
their
respective
views
and
opinions.
Lastly,
recommendations
for
action
areas
are
enumerated,
according
to
the
findings
from
the
interviews
and
surveys.
The
study
found
out
that
there
is
a
positive
attitude
towards
environmental
management
among
the
four
stakeholder
groups.
The
hotel
has
current
environmental
efforts
but
is
limited
by
resources
and
market
conditions.
Most
of
the
findings
on
the
factors
affecting
decisions
on
environmental
management
supported
the
theoretical
assumptions.
One
very
significant
finding
however,
was
that
none
of
the
managers
regard
customers’
demand
as
a
facilitator
while
the
customer
survey
results
showed
that
there
is
indeed
a
high
interest
in
environmentally
responsible
hotels.
A
beyond
compliance
strategy
is
suggested
for
Marco
Polo
Davao
to
adopt
in
designing
its
environmental
management
program.
2
Acknowledgements
The
completion
of
this
thesis
marks
the
end
of
my
journey
through
the
MSocSc
in
Service
Management
program.
I
wish
to
thank
CBS
for
giving
me
the
opportunity
to
go
through
the
program
and
ultimately,
through
this
unique
experience
of
acquiring
knowledge
in
my
chosen
field.
I
would
like
to
thank
Ms.
Adriana
Budeanu
for
her
guidance,
motivation
and
patience.
I
also
wish
to
express
my
most
sincere
appreciation
to
Ms.
Claire
Magno
and
Mr.
Rafael
Dominguez,
for
helping
make
this
project
possible
and
to
everyone
at
Marco
Polo
Davao
who
willingly
participated
and
helped
me
with
everything
that
I
needed
for
the
project.
My
deepest
gratitude
goes
to
all
my
family
&
friends
who
have
supported
me
through
this
challenging
time.
Special
thanks
goes
to
my
parents,
Ms.
Sally
Teves
and
to
Ms.
Caitlin
Yao
&
family.
3
Table
of
Contents
Abstract ............................................................................................................................. 2
Table
of
Contents ............................................................................................................... 4
List
of
Figures
&
Tables....................................................................................................... 6
1.
Introduction ................................................................................................................ 7
1.1
Background ....................................................................................................................................7
1.2
Purpose
of
the
Research ................................................................................................................9
1.3
Clarification
of
concepts ..............................................................................................................11
1.4
Thesis
Structure ...........................................................................................................................12
2.
Related
Literature...................................................................................................... 14
2.1
Corporate
environmental
strategies............................................................................................14
2.1.1
Environmental
management
and
the
firm’s
value ...............................................................14
2.1.2
Competitive
environmental
strategies .................................................................................15
2.1.3
Sustainability
as
key
driver
to
innovation .............................................................................16
2.1.4
Sustainability
&
shareholder
value .......................................................................................17
2.1.5
Discussion
on
Corporate
environmental
strategies ..............................................................18
2.2
Environmental
Management
in
Hotels ........................................................................................23
2.2.1
Managers’
roles
in
strategy
decisions ..................................................................................24
2.2.2
Factors
influencing
managers’
decisions
on
the
choice
of
an
environmental
strategy ........25
2.2.3
Actors
(Stakeholders)
influencing
managers’
decisions
on
the
choice
of
an
environmental
strategy.............................................................................................................................................27
2.2.4
Actions
Areas ........................................................................................................................29
2.2.5
Current
Environmental
Business
Practices
in
Hotels.............................................................32
2.3
Conceptual
framework ................................................................................................................34
3.
Methodology............................................................................................................. 39
3.1
Research
Design...........................................................................................................................39
3.2
Philosophical
Considerations .......................................................................................................41
3.3
Data
Collection
Process ...............................................................................................................43
3.4
Interviews ....................................................................................................................................45
3.5
Surveys.........................................................................................................................................47
4
3.6
Data
Analysis................................................................................................................................48
3.7
Reliability
&
Validity.....................................................................................................................49
3.8
Limitations ...................................................................................................................................50
4.
The
Case .................................................................................................................... 51
4.1
The
hotel
industry
in
the
Philippines ...........................................................................................51
4.2
The
Hotel .....................................................................................................................................51
4.3
Business
Model ............................................................................................................................52
4.4
Current
business
situation ...........................................................................................................52
4.4.1
Current
environmental
efforts
of
Marco
Polo
Davao ...........................................................53
5.
Findings
&
Analysis.................................................................................................... 58
5.1
Interviews
with
Managers ...........................................................................................................58
5.1.1
Managers’
role
on
environmental
management..................................................................59
5.1.2
Factors’
influence
on
managers’
decisions
in
the
choice
of
an
environmental
strategy.......59
5.1.3
Actors/Stakeholders’
influence
on
managers’
decisions
in
the
choice
of
an
environmental
strategy.............................................................................................................................................64
5.2
Supplier
interviews ......................................................................................................................65
5.3
Employees’
survey .......................................................................................................................67
5.4
Customers’
survey .......................................................................................................................68
5.5
Recommendations
on
Action
Areas.............................................................................................71
6.
Discussion ................................................................................................................. 76
7.
Conclusion................................................................................................................. 80
Bibliography..................................................................................................................... 82
Appendices ...................................................................................................................... 88
Appendix
A:
Managers’
Interview
Questionnaire .................................................................................88
Appendix
B:
Suppliers’
interview
questions ..........................................................................................91
Appendix
C:
Employees’
Survey ............................................................................................................92
Appendix
D:
Customers’
Survey ............................................................................................................93
Appendix
E:
Other
environmental
efforts
being
done
by
the
F&B
department ...................................94
Appendix
F:
Other
environmental
efforts
being
done
by
the
Technical
department...........................95
Appendix
G:
Other
environmental
efforts
being
done
by
the
Housekeeping
department ..................97
5
List
of
Figures
&
Tables
Figure
1:
2010‐1015
Forecast
of
Philippine
Hotel
Sales
(in
Millions
of
Pesos)
…………………….9
Figure
2:
Model
of
linkage
between
strategy,
environmental
management
and
firm
performance
…………………………………………………………………………………………………………………….15
Figure
3:
Generic
Competitive
Environmental
Strategies
…………………………………………………..16
Figure
4:
Key
dimensions
of
Shareholder
Value
……………………………………………………………..…
17
Figure
5:
Conceptual
Framework
……………………………………………………………..……………………….35
Figure
6:
Familiarity
with
an
environmentally
friendly
hotel……………………..……………………….69
Figure
7:
Interest
in
staying
at
a
green
hotel……………………………….…………………………………..…69
Table
1:
Environmental
Strategies
as
presented
by
select
authors
…………………………………….19
Table
2:
Survey
results
for
facilitators
in
implementing
an
environmental
management
program
…………………………………………………………………………………………………………………………….62
Table
3:
Survey
results
for
barriers
in
implementing
an
environmental
management
program
……………………………………………………………………………………………………….63
Table
4:
Employees’
survey
results……………………………………….…………………………………………….68
Table
5:
Customer
survey
results
for
local
Philippine
tourists
…………………………………………….70
Table
6:
Customer
survey
results
for
foreign
Philippine
tourists
………………………..……………...71
6
1. Introduction
1.1 Background
Tourism
is
the
world’s
largest
industry,
contributing
to
11.5%
of
the
world’s
GDP
and
employing
12.5%
of
the
world’s
workforce.
It
is
expected
to
grow
at
an
annual
rate
of
3‐4%
from
2011‐2016,
mainly
due
to
the
strong
economies
of
emerging
countries
(Euromonitor
International,
2012).
The
global
growth
in
tourism
naturally
brings
in
more
revenue
to
different
countries
and
mobility
among
different
populations.
However,
it
also
brings
in
issues
that
have
harmful
impacts
on
society
and
the
environment.
The
issues
of
growing
population,
increasingly
scarce
resources
and
inappropriate
practices
and
developments
in
tourism
put
pressure
on
natural
habitats
and
resources,
which
hastens
environmental
degradation.
This
situation
brings
in
more
focus
on
the
importance
of
addressing
the
issue
of
sustainable
tourism.
There
is
an
ever‐increasing
demand
for
sustainable
tourism
as
driven
by
businesses
supporting
sustainable
practices,
authorities
and
local
communities
(Euromonitor
International,
2012).
The
travel
accommodation
is
one
of
the
largest
sectors
of
the
tourism
industry,
and
hotels
have
proven
to
be
the
biggest
players
in
the
sector.
There
is
a
growing
awareness
in
environmentalism
nowadays
for
both
the
industry
players
and
the
customers.
There
is
a
global
trend
showing
that
hotel
guests
are
more
eco‐minded
and
are
concerned
about
how
their
choices
can
affect
the
environment.
Hoteliers
also
increasingly
know
about
the
need
to
implement
sustainability
practices
to
reduce
costs,
attract
new
guests
and
benefit
from
future
cost‐saving
opportunities
(Euromonitor
International,
2012).
In
spite
of
the
higher
awareness
and
demand,
there
are
only
a
few
companies
in
the
hotel
industry
that
have
a
comprehensive
approach
to
sustainable
practices
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
The
world’s
largest
hotel
operators
are
only
just
beginning
to
address
social
and
environmental
challenges.
Accor
plans
to
cut
its
energy
and
water
consumption
by
10%
in
7
five
years
through
its
Earth
Guest
program.
The
Intercontinental
Hotel
Group
(IHG)
has
an
in‐house
sustainability
system,
the
Green
Engage
program
which
targets
to
save
20%
annually
in
energy
consumption.
Marriott
plans
to
reduce
25%
energy
and
water
consumption
per
room
by
2017.
Other
players
such
as
Hilton,
Hyatt,
Starwood
have
similar
programs
put
in
place
(Euromonitor
International,
2012).
Accor
is
currently
the
most
sustainable
of
the
world’s
10
largest
hotel
groups.
Accor
has
a
score
of
only
55%,
followed
by
IHG
with
43%
and
Marriott
with
35%.
Other
hotel
groups
score
well
below
the
top
3,
with
the
remaining
7
of
the
top
10
only
garnering
scores
within
the
range
of
6%‐17%.
A
number
of
other
hotel
groups
outside
the
top
10
such
as
Scandic,
Radisson,
Movenpick
are
also
having
sustainability
efforts
but
clearly
has
a
long
way
to
go
in
terms
of
integrating
sustainability
management
within
core
processes,
monitoring
performance
and
engaging
with
stakeholders
on
how
to
address
sustainability
challenges
(Euromonitor
International,
2012).
The
World
Economic
Forum
Sustainability
ranking
takes
into
consideration
the
country’s
environmental
regulations,
CO2
emissions,
particulate
matter
concentration,
threatened
species
and
environmental
certifications.
The
rankings
show
that
there
is
a
strong
correlation
between
wealth
and
countries
achieving
high
sustainability
rankings.
Europe
leads
the
world
in
sustainable
destinations
while
the
worst
performing
countries
are
mainly
those
from
the
developing
world.
The
Philippines
is
among
the
lowest
ranked
countries
in
terms
of
sustainability,
with
Manila,
its
capital
city,
placing
among
the
bottom
5
least
sustainable
Asian
Cities
(Euromonitor
International,
2012).
Natural
disasters
and
pandemics
are
also
being
felt
more
in
developing
countries,
posing
threats
to
the
countries’
tourism
industry
and
travel
accommodation
sector.
The
Philippines
is
no
exception,
which
was
hit
by
strong
storms,
and
tropical
cyclones
the
past
few
years.
These
storms,
observed
to
have
become
stronger
lately
due
to
climate
change,
have
brought
about
natural
disasters
such
as
floods
and
landslides,
displacing
and
killing
millions
of
people
in
the
country.
In
the
Philippines,
hotels
are
taking
up
90%
of
total
travel
accommodation
sales
(Euromonitor
International,
2010).
Its
value
has
increased
by
12%
in
2010
and
it
is
expected
to
grow
in
constant
value
at
a
compounded
annual
growth
rate
(CAGR)
of
8%
until
2015.
8
The
number
of
outlets
is
also
expected
to
increase
with
a
CAGR
of
1%
until
2015.
The
said
forecast
is
mainly
attributed
to
the
global
growth
of
the
tourism
industry
and
the
popularity
of
intra‐regional
destinations
(Euromonitor
International,
2010).
With
the
growth
in
tourist
arrivals
and
increase
in
hotel
sales,
it
has
become
even
more
important
for
the
players
in
the
Philippine
hotel
industry
to
take
up
responsibility
in
addressing
sustainability
issues
in
the
destination.
Doing
this
will
not
only
help
save
the
environment
from
further
degradation
and
contribute
in
reversing
the
effects
of
climate
change
but
will
also
save
population
from
suffering
more
disasters,
one
hotel
at
a
time.
100,000.00
90,000.00
80,000.00
70,000.00
60,000.00
Hotels
50,000.00
Chained
Hotels
40,000.00
Independent
Hotels
30,000.00
20,000.00
10,000.00
0.00
2010
2011
2012
2013
2014
2015
Figure
1:
2010‐1015
Forecast
of
Philippine
Hotel
Sales
(in
Millions
of
Pesos)
Source:
Euromonitor
International
1.2 Purpose
of
the
Research
Having
established
the
need
for
hotels
to
respond
to
the
demands
of
environment
and
society,
this
study
looks
into
how
hotels
can
contribute
to
sustainable
tourism.
Studies
regarding
sustainability
efforts
of
hotels
in
the
Philippines
are
rare
even
if
the
country
is
an
emerging
market
for
the
hotel
industry.
Although
there
are
environmental
efforts
in
different
hotels
in
the
country,
it
is
at
a
very
minimal
level
and
certainly
lag
behind
9
those
of
the
developed
countries.
There
is
also
no
data
available
for
sustainability
performance
of
hotels
in
the
Philippines.
Thus,
the
researcher
decided
to
inquire
in
this
area.
There
are
four
alternative
forms
of
sustainable
tourism,
namely
green
tourism,
ethical
tourism,
responsible
tourism
and
eco‐tourism
(Euromonitor
International,
2012).
This
research
focuses
on
green
tourism
particularly
on
how
efforts
that
are
geared
towards
the
environment
are
selected,
as
opposed
to
efforts
that
concentrate
on
ethical,
cultural,
local
welfare,
political
and
economic
elements
of
the
destinations.
In
order
for
a
hotel
to
be
able
to
contribute
to
green
tourism,
like
every
other
business,
it
needs
to
have
clear
environmental
strategy,
implemented
through
an
environmental
management
program.
Sustainability
issues
impact
on
corporate
strategy
and
performance
(Rohm
&
Dan,
2011).
The
choice
of
an
environmental
strategy
impacts
on
the
company’s
environmental
performance.
Different
authors
present
different
sets
of
environmental
strategies
that
a
company
can
follow
and
implement
for
its
environmental
efforts,
one
of
which
is
named
“Competitive
environmental
strategies.”
This
is
a
set
of
strategies
based
on
the
competitive
advantage
and
competitive
focus
of
different
environmental
strategies.
Examination
of
the
different
factors
that
lead
to
the
general
manager’s
selection
of
a
competitive
environmental
strategy
is
done.
The
Philippines
lags
behind
the
developed
countries
in
terms
of
sustainability
and
there
is
also
a
trend
that
most
hotels
do
not
have
clear
environmental
strategies
for
their
operations.
Thus,
the
market
would
be
a
very
relevant
and
practical
area
for
study
on
competitive
environmental
strategies.
The
goal
of
this
research
is
to
suggest
a
competitive
environmental
strategy
for
a
Philippine
hotel.
This
is
done
by
examining
the
different
factors,
actors
and
conditions
that
lead
to
the
general
manager’s
selection
of
a
competitive
environmental
strategy,
which
the
hotel
can
adopt
in
planning
and
implementing
its
environmental
management
program.
The
research
project
is
mainly
written
for
the
general
manager
of
a
hotel.
This
means
that
the
analysis,
findings
and
final
recommendations
are
to
serve
how
the
management
team
can
optimize
their
environmental
efforts.
10
The
research
question
for
the
study
is:
What
competitive
environmental
strategy
can
Marco
Polo
Davao
adopt
for
its
environmental
management
program?
In
order
to
answer
this
research
question,
the
following
sub‐questions
were
formulated:
o What
is
the
role
of
the
general
manager’s
and
the
department
managers’
perceptions
on
selecting
a
competitive
environmental
strategy?
o What
are
the
factors
and
actors
that
lead
for
a
strategy
to
be
suggested
by
the
department
managers
and
chosen
by
the
general
manager?
o What
is
the
influence
of
the
factors
and
actors
on
the
selection
of
a
competitive
environmental
strategy?
o What
are
the
recommendations
for
Marco
Polo
Davao
on
the
following
action
areas:
(1)
green
program
structure
(2)
energy
efficiency
(3)
resource
and
waste
management
(4)
sustainable
supply
chain
management
1.3 Clarification
of
concepts
With
the
focus
on
green
tourism,
this
thesis
used
the
terms,
environmental
performance/
environmental
management/
environmental
strategies/
green
efforts
in
lieu
of
sustainability
performance,
sustainability
management,
sustainability
strategies
and
sustainability
efforts.
This
clarifies
the
focus
of
the
study,
which
is
on
the
environmental
part
of
sustainability.
Sustainability
stands
for
practices
that
protect
and
enhance
the
human
and
natural
resources
needed
by
future
generations
to
enjoy
a
quality
of
life
equal
to
or
greater
than
our
own
(US
Environmental
Protection
Agency,
2010).
It
is
a
matter
of
making
decisions
in
the
short
run
that
does
not
have
negative
impacts
in
the
long
run
(Field
&
Field,
2009).
Sustainable
efforts
pertain
to
the
actions
towards
achieving
sustainability.
Considering
the
scope
and
limitation
of
this
study,
the
term
is
considered
synonymous
with
green
efforts,
environmental
efforts
and
environmental
actions.
Sustainability
strategies
would
then
be
“structural
changes
based
on
sustainability
that
impact
corporate
strategies
and
performance”
(Rohm
&
Dan,
2011).
Environmental
strategies
is
used
synonymously
with
the
term
in
this
thesis.
11
Environmental
management
deals
with
technical
and
organizational
activities
aimed
at
reducing
the
environmental
impact
of
the
company’s
operations
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐Jimenez,
2004).
Energy
and
waste
management
means
strategizing
of
the
use
and
conservation
of
resources,
usually
done
by
exploring
possible
alternative
energy
sources
and
by
finding
ways
to
reduce
energy
consumption,
reduce
waste
and
recycle
(Euromonitor
International,
2012).
Supply
chain
management
is
the
effort
to
effectively
and
efficiently
manage
the
supply
chain
activities
in
order
to
maximize
customer
value
and
have
a
sustainable
competitive
advantage.
Supply
chain
activities
cover
everything
from
product
development,
sourcing,
production,
and
logistics,
as
well
as
the
information
systems
needed
to
coordinate
these
activities”
(Handfield,
2011).
The
general
manager
refers
to
the
person
who
is
in
charge
of
administering
all
operations
of
the
hotel.
The
department
managers
refer
to
those
who
are
responsible
for
administering
the
operations
of
a
specific
department.
In
this
study,
the
use
of
the
term
“the
managers/the
management”
will
refer
to
both
parties.
1.4 Thesis
Structure
Below
is
the
list
of
chapters
in
this
thesis
with
a
brief
description
of
each.
Chapter
1‐
Introduction:
Introduces
the
topic
of
hotel
sustainability,
and
presents
the
research
problem
to
be
studied,
research
purpose
and
research
questions
to
be
addressed.
The
chapter
contains
the
definition
of
terms
and
the
structure
of
the
thesis.
Chapter
2‐
Literature
review:
The
main
literature
within
the
field
is
reviewed
and
the
study’s
theoretical
framework
is
presented.
The
frameworks
on
corporate
sustainability
that
are
related
to
the
study
are
presented
first,
and
then
a
discussion
on
environmental
management
in
hotels
follows.
The
chapter
ends
with
the
conceptual
framework
wherein
the
appropriate
theories
used
for
the
study
are
be
pointed
out.
12
Chapter
3‐
Methodology:
Explains
the
research
and
introduces
the
scientific
approach
and
the
methods
used
in
conducting
data
collection
and
data
analysis
procedures.
The
overall
process
of
the
study
is
also
discussed.
Chapter
4‐
The
case:
Gives
a
background
on
the
Philippine
hotel
industry,
history
and
current
situation,
and
the
case
of
the
chosen
hotel
in
the
Philippines.
Chapter
5
Findings
&
Analysis:
This
chapter
discusses
and
analyzes
the
data
findings
in
order
to
come
up
with
general
conclusions
from
the
data
gathering
process.
Chapter
6‐
Discussion:
This
section
of
the
paper
will
discuss
the
analyzed
findings
and
use
it
to
answer
the
research
question.
Chapter
7‐
Conclusion:
Final
remarks
and
conclusions
end
the
paper.
Appendices‐
materials
gathered
and
regarded
relevant
for
further
explanation
13
2. Related
Literature
Environmental
management
refers
to
all
efforts
to
minimize
the
negative
environmental
impact
of
the
firm’s
operations
processes,
which
contribute
towards
sustainability
(Klassen
&
McLaughlin,
1996).
It
involves
a
wide
variety
of
initiatives,
which
would
differ
per
industry
due
to
difference
in
operations.
The
initiatives
are
usually
classified
as
technical
and
organizational.
Long‐term
planning
and
integration
with
other
corporate
decisions
determine
the
environmental
strategy
of
the
firm
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐
Cortes,
2010).
A
firm’s
environmental
strategy
refers
to
how
the
firm
responds
to
environmental
issues
and
how
it
uses
them
as
a
competitive
tool.
Different
authors
identify
different
strategies
but
one
common
theme
among
the
strategies
is
that
it
is
organized
in
a
continuum
from
low
commitment
to
advanced
strategies
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
Environmental
performance
measures
how
successful
a
firm
is
in
reducing
and
minimizing
its
impact
on
the
environment
(Klassen
&
McLaughlin,
1996).
It
is
shown
in
terms
of
results
achieved
by
the
company
from
having
an
environmental
management
program,
which
goes
hand
in
hand
with
an
environmental
strategy
that
defines
a
firm’s
competitive
orientation
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
2.1 Corporate
environmental
strategies
2.1.1 Environmental
management
and
the
firm’s
value
Many
suggest
that
profitability
is
adversely
affected
by
higher
production
costs
of
environmental
management
initiatives
(Klassen
&
McLaughlin,
1996).
According
to
Maignan,
customers
usually
want
firms
to
inform
them
of
their
sustainability
initiatives.
This
usually
influences
the
customer’s
purchase
behavior
as
customers
are
now
expecting
firms
to
be
more
socially
and
environmentally
responsible
(Pomering,
Noble,
&
Johnson,
2011).
The
environmental
orientation
of
the
firm
is
determined
by
corporate
strategy.
Environmental
management
becomes
an
integral
element
of
corporate
strategy
as
it
affects
the
company’s
environmental
performance.
Operations
strategy
is
the
pattern
of
structural
and
infrastructural
choices
that
guide
decisions
in
operations
to
support
overall
firm
14
performance
(Klassen
&
McLaughlin,
1996).
However,
according
to
Reinhardt,
there
is
a
group
of
executives
and
business
academics
that
disagree
because
environmentalism
makes
management
lose
focus
on
the
real
problems
of
business
(Reinhardt,
1998).
Nevertheless,
there
are
indicators
that
effectively
link
environmental
management
and
financial
performance.
Firms
who
invested
in
activities
that
minimized
environmental
impact
were
rewarded
in
the
marketplace
by
higher
valuation
(Klassen
&
McLaughlin,
1996).
This
view
however,
is
criticized
by
the
interpretation
that
business
is
concerned
with
sustainability
efforts
and
environmental
management,
only
to
the
extent
that
it
contributes
long‐term
value
for
the
owners
of
the
business
and
not
for
the
good
of
society
(van
Marrewijk,
2003).
Figure
2:
Model
of
linkage
between
strategy,
environmental
management
and
firm
performance
2.1.2 Competitive
environmental
strategies
A
study
by
Orsato
presents
a
framework
on
the
different
competitive
environmental
strategies.
It
helps
managers
optimize
economic
return
on
investments
and
transform
these
investments
into
sources
of
competitive
advantage
(Orsato,
2006).
This
would
fit
well
for
companies
trying
to
find
functional
solutions
that
create
value
in
terms
of
the
company’s
economic,
social
and
ecological
performance
as
motivated
by
the
view
that
sustainability
is
in
the
inevitable
direction
that
progress
takes
(van
Marrewijk,
2003).
15
In
1980,
Michael
Porter
identified
two
generic
types
of
competitive
advantage,
low
cost
and
differentiation.
According
to
Porter,
a
firm
can—through
efficient
use
of
labor
and
capital—
obtain
competitive
advantage
by
selling
products
or
services
with
the
lowest
cost
in
its
industry.
On
the
other
hand,
a
firm
can
use
differentiation
strategies
to
create
unique
features
for
its
products
or
its
services
(Orsato,
2006).
The
Resource‐Based
View
highlights
the
influence
(internal)
organizational
processes
exert
on
competitiveness.
Competitive
advantage
should
be
seen
as
a
result
of
the
ability
to
acquire,
use,
and
manage
resources,
such
as
technical
capabilities,
ownership
of
intellectual
property,
brand
leadership,
financial
capabilities,
and
organizational
structure
and
culture.
All
these
advantages
can
be
utilized
at
the
firm’s
advantage
in
environmental
innovation.
(Orsato,
2006).
In
the
framework
presented
in
the
study,
organizational
processes
tend
to
have
a
more
encompassing
scope
than
products
or
services
and
it
can
be
used
to
define
a
strategy
for
a
product
or
the
whole
business.
Environmental
strategies
must
be
aligned
with
the
overall
business
strategy
in
order
to
optimize
resources
(Orsato,
2006).
Figure
3:
Generic
Competitive
Environmental
Strategies
2.1.3 Sustainability
as
key
driver
to
innovation
In
another
study,
Nidumolu
et.al
looked
at
30
companies
and
their
research
has
demonstrated
that
companies
end
up
with
lower
costs
when
becoming
environmentally
16
friendly
due
to
having
reduced
inputs.
It
is
opined
that
in
the
future,
only
companies
that
make
sustainability
a
goal
will
achieve
competitive
advantage.
In
order
to
become
sustainable,
there
is
a
need
for
companies
to
rethink
business
models,
products,
technologies
and
processes.
There
are
5
stages
in
the
process
of
becoming
sustainable
and
these
will
be
discussed
in
detail
below
together
with
that
of
the
similar
strategies
proposed
by
Orsato.
2.1.4 Sustainability
&
shareholder
value
A
sustainable
enterprise
delivers
simultaneously
economic,
social
and
environmental
benefits
toward
achieving
sustainable
development
(Hart
&
Milstein,
2003).
Business
is
expected
to
accomplish
social
goods
and
initiatives
(Brønn
&
Vidaver‐Cohen,
2009).
However,
firms
usually
find
it
difficult
reconciling
sustainability
and
increasing
shareholder
value
(Hart
&
Milstein,
2003).
Orsato
showed
a
framework
based
on
competitive
advantages
and
competitive
focus
as
discussed
above.
Hart
&
Milstein
however,
presents
a
framework
that
focuses
on
the
how
sustainability
affects
shareholder
value.
They
present
shareholder
value
as
a
multidimensional
construct
using
a
model
with
2
axes.
The
vertical
axis
is
built
on
the
firm’s
need
to
manage
the
business
while
simultaneously
creating
tomorrow’s
technology
and
markets.
The
horizontal
axis
looks
at
the
firm’s
need
to
grow
internal
organizational
skills
while
infusing
knowledge
from
outside.
Figure
4:
Key
dimensions
of
Shareholder
Value
17
Sustainable
development
is
also
a
multidimensional
challenge.
There
are
four
sets
of
global
drivers
of
sustainability.
The
first
is
related
to
industrialization
and
how
it
brings
irreversible
effects
to
the
environment.
The
second
is
the
growth
of
groups
in
civil
society
to
monitor
and
even
enforce
social
and
environmental
standards.
The
third
set
of
drivers
is
related
to
emerging
technology
that
can
possibly
provide
solutions
to
the
material
and
energy‐
intensive
processes
today.
The
fourth
set
relates
to
the
increase
in
population,
poverty
and
inequity.
The
challenges
associated
with
global
sustainability
can
help
identify
strategies
and
practices,
which
improve
performance
in
all
four
quadrants
of
the
shareholder‐value
framework
(Hart
&
Milstein,
2003).
In
order
to
maximize
shareholder
value
over
time,
firms
must
perform
well
simultaneously
in
all
four
quadrants
(Hart
&
Milstein,
2003).
2.1.5 Discussion
on
Corporate
environmental
strategies
Before
a
firm
is
able
to
implement
environmental
efforts,
it
is
essential
that
a
strategy
be
chosen
after
doing
a
company
diagnosis.
The
selected
strategy
will
guide
the
design
of
the
company’s
environmental
management
framework.
The
three
authors
presented
above
offered
various
environmental
strategies
that
are
similar
to
each
other.
Orsato’s
competitive
environmental
strategies
will
mainly
be
used
for
this
study
but
the
important
and
defining
points
in
the
similar
theories
presented
by
Hart
&
Milstein
and
Nidumolu
et.
al
will
also
be
integrated
with
Orsato’s
to
obtain
a
more
holistic
view
of
the
different
strategies
that
can
be
used
in
this
study.
Strategy
1:
Eco‐Efficiency
Organizations
should
be
able
to
transform
costs
into
profits
by
identifying
concealed
opportunities
for
innovation,
leading
to
more
efficient
organizational
systems.
By
working
towards
eco‐efficiency
within
and
beyond
the
firm,
it
will
be
able
to
save
money
and
decrease
the
environmental
impact
of
its
processes
(Orsato,
2006).
Eco‐efficiency
is
usually
done
to
diminish
negative
effects
on
the
environment
by
using
strategies
such
as
reducing
resource
consumption,
energy
use,
emissions
and
wastes,
landfill
use
and
toxic
releases
and
recycling
(McDonough
&
Braungart,
2000).
However,
Mc
Donough
&
Braungart
claim
that
thinking
of
eco‐efficiency
as
sustainable
is
a
misconception
because
it
provides
the
18
AUTHORS:
ORSATO
NIDUMOLU, PRALAHAD &
HART & MILSTEIN
RANGASWAMI
STRATEGIES:
Eco-efficiency
Viewing compliance as an
Cost & Risk Reduction
opportunity
Beyond compliance
Viewing compliance as an
Reputation and Legitimacy
opportunity, Making value
chains sustainable
Eco-branding
Designing sustainable products
Innovation and positioning
& services
Environmental cost management
Developing new business
Growth path & trajectory
models
Creating next practice platforms
Table
1:
Environmental
Strategies
as
presented
by
select
authors
appearance
of
change,
when
in
fact
with
simply
reducing
and
recycling,
does
not
really
put
a
halt
in
environmental
destruction.
Thus,
better
actions
such
as
product
redesign
(i.e.
replacing
non‐biodegradable
and
harmful
chemicals
used
in
products
contents
to
environmentally
friendly
ones)
and
radical
innovation
should
be
done
in
order
to
ensure
long‐term
success
in
environmental
performance
(McDonough
&
Braungart,
2000).
This
strategy
is
quite
similar
with
that
of
Nidomulo,
et.
al’s
stage
1
called
‘viewing
compliance
as
an
opportunity.’
The
difference
is
that
it
puts
more
focus
on
the
influence
of
standards
on
how
the
companies
would
view
opportunities
for
sustainability.
In
another
theory
by
Hart
&
Milstein,
the
first
quadrant
in
the
shareholder
value
framework
is
concerned
with
cost
and
risk
reduction.
This
supports
eco‐efficiency
because
the
reduced
use
of
resources
would
potentially
lead
to
quarterly
earnings
growth
and
reduction
in
exposure
to
liabilities
and
other
potential
losses
(Hart
&
Milstein,
2003).
At
this
level,
19
business
is
concerned
with
how
sustainable
efforts
in
business
operations
and
decision‐
making,
reduce
risks
and
costs
(van
Marrewijk,
2003).
Strategy
2:
Beyond
Compliance
Leadership
The
Beyond
compliance
leadership
strategy
takes
eco‐efficiency
a
step
higher
by
seeking
to
be
acknowledged
in
their
efforts
for
the
environment.
In
this
strategy,
firms
are
willing
to
voluntarily
spend
money
on
environmental
improvements
beyond
what
is
required
(i.e.
to
have
its
environmental
management
system
certified),
and
on
the
marketing
of
their
efforts
(Orsato,
2006).
Complying
with
more
stringent
standards,
even
before
they
are
enforced
is
a
good
way
of
fostering
innovation
and
it
also
provides
companies
with
the
possibility
of
benefiting
from
the
first‐mover
advantage
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
It
can
give
business
major
opportunities
for
out‐designing
the
competition
(McDonough
&
Braungart,
2000).
Those
against
environmental
protection
argue
that
the
move
towards
environmentalism
and
putting
environmental
standards
or
regulations
in
place
are
the
reasons
behind
recessions
and
economic
slowdown
of
industrialized
nations
(Shrivastava,
1995).
Keith
Davis
further
supports
this
by
stating
that
environmental
regulation
actually
restricts
flexibility
of
decision‐
making.
For
businesses,
it
is
actually
more
desirable
to
have
less
regulation
in
order
to
have
more
freedom
in
decision
making
to
be
able
to
meet
market
and
social
factors
(Brønn
&
Vidaver‐Cohen,
2009).
Another
important
concept
that
can
be
factored
in
the
second
strategy
of
going
beyond
compliance
is
what
Nidomulo
et.
al
presented
as
stage
2
of
being
sustainable
or
‘making
value
chains
sustainable.’
This
is
the
stage
where
the
companies
already
got
past
compliance
and
are
trying
to
increase
efficiencies
throughout
the
value
chain.
The
difference
of
this
from
eco‐efficiency
is
brought
by
the
fact
that
it
also
helps
make
the
suppliers
environment‐conscious
towards
the
goal
of
having
a
sustainable
supply
chain
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
Environmental
concerns
drive
socially
responsible
firms
to
have
a
sustainable
supply
chain
while
higher
profitability
from
adopting
sustainable
supply
chains
encourages
other
firms
to
do
it.
A
firm’s
environmental
decision
not
only
has
effects
on
itself
but
on
its
customers
and
suppliers
as
well
(Hall,
2001).
20
The
last
theory
that
can
be
integrated
to
this
stage
is
that
of
Hart
&
Milstein,
presented
as
reputation
and
legitimacy
as
shown
in
the
shareholder
value
framework
extends
to
numerous
external
stakeholders
in
the
value
chain.
Fostering
the
stakeholders’
interests
may
lead
to
enhanced
reputation
and
legitimacy
leading
to
growth
of
shareholder
value.
The
view
indicates
that
organizations
have
to
balance
stakeholders’
interests
and
shareholder’s
wealth.
Stakeholder’s
interests
can
affect
or
can
be
affected
by
the
achievement
of
an
organization’s
objectives
(Hart
&
Milstein,
2003).
This
is
further
supported
by
the
fact
that
companies
are
an
integral
part
to
society;
they
are
responsible
to
serve
the
needs
and
satisfy
society.
In
this
view,
motivated
by
the
importance
of
reputation
and
social
legitimacy,
there
is
thus
a
need
to
balance
economic,
social
and
ecological
concerns
by
going
beyond
compliance
level
and
profit
considerations
(van
Marrewijk,
2003).
This
view
of
Hart
&
Milstein
on
the
importance
of
reputation
and
legitimacy
is
different
from
what
Orsato
presented
as
beyond
compliance
leadership
because
this
focuses
on
the
reputation
of
the
firm
and
its
stakeholders,
but
it
however
supports
it
since
reputation
and
legitimacy
are
effects
that
the
company
can
attain
by
going
beyond
compliance.
Strategy
3:
Eco‐Branding
Once
the
company
has
gone
beyond
compliance
and
has
strengthened
its
organizational
processes,
it
would
be
time
to
further
explore
opportunities
for
environmental
differentiation
in
terms
of
products
and
services,
which
could
further
provide
a
competitive
advantage
(Orsato,
2006).
In
environmental
product
differentiation,
a
business
creates
products
that
provide
greater
environmental
benefits,
or
that
impose
smaller
environmental
costs,
than
similar
products.
The
changes
in
the
products
or
the
production
process
usually
raise
operating
costs
but
it
enables
the
company
to
command
a
price
premium
in
the
marketplace
or
to
capture
additional
market
share
(Reinhardt,
1998)
through
filling
the
green
market
niche
willing
to
pay
a
premium
for
environmental
products
(Blanco,
Lozano,
&
Ray‐Maquieira,
2009).
Nidumolu
et.
al’s
stage
3
in
becoming
sustainable
is
named
‘designing
sustainable
products
and
services.”
This
is
almost
identical
to
eco‐branding
strategy
of
Orsato
since
it
takes
on
21
the
challenge
of
developing
sustainable
offerings
or
redesigning
existing
ones
to
become
eco‐friendly
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
The
innovation
and
repositioning
strategy
of
Hart
&
Milstein
in
the
sustainable
shareholder
value
framework
is
also
similar
to
the
eco‐branding
strategy
because
it
is
about
generating
products
and
services
for
the
future.
It
is
a
search
for
creating
synergistic
(economic,
social
and
ecological)
value
through
the
adoption
of
sustainability
efforts
(Hart
&
Milstein,
2003).
The
difference
however
is,
it
puts
more
focus
on
innovation
and
points
out
its
importance
in
current
business
strategies.
Strategy
4:
Environmental
Cost
Leadership
This
strategy
entails
radical
innovations
in
product
design.
Innovation
is
extended
to
the
"revenue
basis"
of
the
firm,
and
there
is
a
large
number
under
development
(Orsato,
2006).
In
order
to
do
this,
one
should
consider
if
the
product
is
ecologically
intelligent,
socially
just
(in
manufacturing,
use
and
disposal)
and
guilt‐free
throughout
the
production
and
delivery
process.
It
is
also
imperative
in
this
strategy
that
innovation
and
adaptation
occur
in
order
to
gain
a
competitive
advantage.
(McDonough
&
Braungart,
2000)
Nidumolu
et.
al’s
stage
4
is
on
developing
new
business
models,
which
means
finding
novel
ways
of
delivering
and
capturing
value,
which
will
change
the
basis
of
competition
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
Businesses
have
now
taken
the
leap
from
looking
at
firm’s
sustainable
activities
as
limited,
unprofitable
and
isolate
to
adopting
with
organization‐wide
framework
tools
and
programs
(Larson,
Teisberg,
&
Johnson,
2000).
The
full
benefits
of
sustainability
approaches
will
not
be
realized
if
it
is
just
treated
as
add‐ons
or
performance
variables
and
are
not
integrated
into
the
firm’s
strategic
vision
and
business
model
(van
Marrewijk,
2003).
This
fourth
strategy
is
similar
and
can
be
connected
with
Hart
&
Milstein’s
last
quadrant
of
the
shareholder
value
framework,
which
is
growth
path
and
trajectory.
The
theory
of
growth
path
and
trajectory
is
more
concerned
with
the
external
dimensions
associated
with
future
performance.
There
should
be
a
clear
outlook
for
future
growth
by
either
offering
new
products
or
entering
new
markets.
22
Nidomulo
et.
al
further
presents
a
stage
5
or
the
last
stage
of
being
sustainable
which
is
creating
next‐practice
platforms.
This
stage
requires
the
expertise
to
synthesize
business
models,
technologies,
and
regulations
in
different
industries
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
A
network
of
alliances
across
a
group
of
firms
in
the
value
chain
is
needed
in
order
to
be
able
to
manage
innovative
change
processes
and
have
a
truly
sustainable
business
(Larson,
Teisberg,
&
Johnson,
2000).
Nidomulo
et.
al
further
state
that
stages
4
and
5
would
be
a
challenge
for
firms
in
most
industries,
as
this
requires
costly
investments
in
innovation.
It
is
however,
a
good
possibility
for
the
future
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
2.2 Environmental
Management
in
Hotels
Hotels
have
also
been
inspired
by
increasing
environmental
consciousness
among
stakeholder
to
take
actions
to
reduce
the
impact
of
its
operations
on
the
environment.
Having
an
environmental
management
program
addresses
this.
Environmental
management
is
the
set
of
processes
and
practices
introduced
and
done
by
an
organization
for
the
reduction,
prevention
and
elimination
of
negative
environmental
effects
arising
from
its
operations
(Hsieh,
2012).
The
hotel
industry
is
made
up
of
a
large
number
of
small
operations
that
consume
relatively
small
amounts
of
energy,
water
and
other
resources,
and
due
to
this,
the
impact
of
hotels’
operations
on
the
environment
is
diffuse
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐Jimenez,
2004).
This
leads
to
the
perception
that
it
does
not
cause
gross
environmental
pollution
or
degradation.
However,
if
the
impacts
that
all
the
small
individual
operations
bring
are
added
together,
then
the
hotel
does
have
a
significant
effect
in
resource
depletion
and
pollution
contribution
(Kirk,
1995).
Despite
knowing
this,
the
perception
that
it
does
otherwise
still
remains,
leading
to
a
lack
of
legislation
made
specifically
for
the
industry,
paving
way
for
the
trend
of
the
voluntary
nature
of
environmental
management
in
the
hotel
industry
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐Jimenez,
2004).
All
activities
that
have
environmental
impact
should
be
covered
by
a
hotel’s
environmental
management
program
to
reduce
the
hotel’s
environmental
impact
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐Jimenez,
2004).
The
hotel
industry
is
particularly
concerned
23
in
environmental
issues
that
relate
to
waste
management
&
recycling,
energy
and
water
conservation,
building
permits,
legislation
&
regulations
compliance,
purchasing
and
environmental
education
(Hsieh,
2012).
The
International
Hotels
Initiative
(1996)
states
that
having
a
clear
environmental
policy
is
one
of
the
elements
of
an
environmental
program
(Hsieh,
2012).
The
policy
will
be
guided
by
a
competitive
environmental
strategy,
which
will
be
determined
by
different
actors
and
factors.
The
main
actor
in
the
case
of
a
hotel
is
the
hotels’
group
of
managers,
usually
made
up
of
the
general
manager
and
middle
managers.
The
managers’
views
and
opinions
are
very
important
in
making
environmental
decisions
and
this
will
be
discussed
further
in
the
next
section.
Following
this
will
be
an
investigation
of
the
factors
and
stakeholders
that
affect
the
managers’
decisions
on
utilizing
environmental
management
to
bring
competitive
advantage
to
the
firm.
2.2.1 Managers’
roles
in
strategy
decisions
According
to
studies,
a
positive
relationship
exists
between
management’s
perceptions
of
environmental
issues
as
opportunities
and
the
adoption
of
proactive
environmental
strategies.
Managers
accountable
for
the
company’s
commitment
to
the
environment
have
opportunities
to
influence
the
organization’s
level
of
commitment.
Their
interpretations,
preferences
or
decisions
help
them
make
their
decisions,
which
also
depend
on
the
possibility
of
gaining
competitive
advantage
associated
with
environmental
actions
(Lopez‐
Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
The
passive
accommodating
or
proactive
environmental
attitude
of
managers
determines
what
resources
will
be
needed
for
a
firm’s
environmental
behavior.
If
the
managers
have
a
passive
attitude,
then
end‐of‐pipe
technologies
are
usually
adopted.
Proactive
managers
would
require
a
shift
to
using
proactive
technologies
that
would
reduce
pollution
to
a
greater
extent
or
would
completely
remove
it.
Shifting
from
a
reactive
to
a
proactive
approach
would
require
substantial
resource
allocation
and
investments
in
terms
of
green
products,
green
technologies,
employee
skills
and
a
restructuring
of
the
strategic
planning
process
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
24
The
general
manager
is
the
main
person
in
charge
of
the
whole
hotel
and
he
ultimately
decides
on
strategies
to
be
adopted
by
hotel.
However,
it
is
the
department
managers
that
mainly
handle
the
planning
and
implementation
process,
thus
their
suggestions
shape
the
general
manager’s
decision.
The
department
managers’
perceptions
on
factors
and
actors
affecting
decisions
on
an
environmental
management
are
important
because
it
directly
influences
their
suggestions
to
the
general
manager
in
terms
of
selecting
a
competitive
environmental
strategy
for
the
hotel.
2.2.2 Factors
influencing
managers’
decisions
on
the
choice
of
an
environmental
strategy
The
department
managers
mainly
influence
the
decision
of
the
general
manager.
However,
their
suggestions
from
their
individual
units
of
responsibility
are
also
taken
into
account
in
planning
the
hotel’s
environmental
program.
The
following
factors
influence
the
managers’
perceptions
on
the
different
environmental
strategies
for
the
hotel.
The
managers’
perceptions
in
turn
influence
the
general
manager’s
ultimate
choice
of
strategy.
The
section
below
discusses
how
the
factors
and
its
current
conditions
shape
the
managers’
perceptions
on
environmental
management
and
decisions
on
a
competitive
environmental
strategy.
•
Environmental
Legislation
Environmental
legislation
has
been
the
main
driving
force
behind
managerial
perceptions
and
a
positive
relationship
between
this
and
according
to
Rivera
and
Molero,
managerial
perception
can
help
design
environmental
management
as
an
opportunity
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
Studies
have
shown
that
environmental
legislation
for
hotels
is
usually
scarce
and
unclear,
making
it
more
difficult
to
comply,
possibly
leading
managers
to
choose
inaction
(Shrivastava,
1995).
•
Resources
and
capabilities
Resources
and
capabilities
owned
by
the
firm
influence
managers’
perception
of
environmental
responsibility.
The
resources
and
capabilities
that
the
firm
owns
are
usually
readily
available
and
can
bring
costs
down,
thereby
facilitating
the
adoption
of
25
environmental
efforts.
What
the
firms
have
and
what
its
capabilities
are
in
terms
of
investments
and
implementing
a
system
help
set
limitations
in
its
decisions
on
what
environmental
strategy
it
can
pursue.
Thus,
it
is
important
to
determine
what
are
the
resources
available
for
the
firm’s
use
for
its
environmental
efforts
(Lopez‐Gamero,
Molina‐
Azorin,
&
Claver‐Cortes,
2010).
Moreover,
the
firms’
capabilities
in
terms
of
experience
can
make
the
process
of
adopting
an
environmental
management
program
in
a
more
efficient
manner
(Lopez‐Gamero,
Molina‐
Azorin,
&
Claver‐Cortes,
2010).
A
lack
in
education
may
hinder
the
implementation
of
environmental
practices
and
having
a
systemized
measurement
and
documentation
of
utility
consumption
rates
and
costs
(Scanlon,
2007).
•
Facilitators/Perceived
opportunities
There
are
a
number
of
factors
that
are
perceived
to
bring
in
competitive
advantage.
These
include
improvements
of
company
image,
delivery
of
specific
service,
cost
savings
in
the
medium/long
term,
better
relationship
with
public
authorities,
increasing
staff
motivation
and
compliance
with
legal
requirements
(Ayuso,
2006).
These
differences
are
brought
about
by
cost
saving
through
cost‐reduction
measures,
additional
revenue
through
lower
costs.
Moreover,
influencing
suppliers
to
deliver
supplies
of
high
quality
would
strengthen
supplier
ties.
Quality
improvement
results
from
reinforcing
total
quality
management,
leading
the
company
to
have
a
competitive
edge
and
reduced
liabilities
in
long‐term
issues
such
as
environmental
and
social
challenges
(Shrivastava,
1995).
In
support
of
this,
a
study
by
Lee,
et
al.
entitled
“Understanding
how
consumers
view
green
hotels:
how
a
hotel’s
green
image
can
influence
behavioral
intentions”
shows
that
a
hotel’s
green
image
can
influence
behavioral
intentions.
A
hotel
with
a
sound
sustainable
program
and
a
good
green
image
can
reduce
costs,
appeal
to
investors,
motivate
employees
and
cultivate
guest
loyalty,
leading
to
a
greater
market
share.
This
is
based
on
the
premise
that
in
today’s
society,
firms
are
judged
on
its
financial
outcomes
and
behavior
towards
society
based
on
ethics,
social
accountability
and
socio‐economic
awareness.
This
is
also
driven
by
the
increasing
education
on
global
warming
and
climate
change.
A
green
hotel
image
thus
becomes
a
powerful
tool
in
gaining
market
share
and
having
a
green
positioning
and
philosophy
in
operations
can
help
attain
this
(Lee,
Hsu,
Han,
&
Kim,
2010).
26
•
Barriers/Challenges
There
are
also
barriers
that
companies
face
in
implementing
an
environmental
management
program.
First
is
the
cost,
it
is
quite
costly
to
invest
in
sustainability
programs
and
this
usually
discourages
managers
who
are
working
to
meet
short‐term
performance
goals.
In
some
settings,
there
is
lack
of
know‐how
and
environmental
information,
wherein
crucial
information
is
not
available.
Then
there
is
always
a
resistance
to
change
the
procedures
and
systems
that
the
company
has
been
used
to.
This
will
also
entail
changing
decision
routings,
standard
procedures
and
cultural
habits
(Shrivastava,
1995).
External
barriers
also
exist
including
the
high
opportunity
cost
of
environmental
investment,
limited
infrastructure
services,
the
rigidity
of
legislation
and
bureaucratic
complexity;
lack
of
knowledge
or
difficulty
understanding
the
legislation;
and
troubles
derived
from
the
competitive
pressures
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
2.2.3 Actors
(Stakeholders)
influencing
managers’
decisions
on
the
choice
of
an
environmental
strategy
In
addition
to
the
factors
discussed
above,
the
following
section
discusses
the
stakeholders
or
actors
that
are
considered
to
influence
the
managers’
perceptions
on
the
different
environmental
strategies
for
the
hotel.
The
section
below
discusses
how
the
actors
and
their
current
opinions
and
demands
influence
the
managers’
perceptions
on
environmental
efforts.
Stakeholders
influence
managers
by
either
pressure
or
cooperation.
The
stronger
pressure
the
stakeholders
exert
on
the
company,
and
the
greater
the
cooperation
opportunities
with
its
stakeholders,
the
greater
the
positive
impact
on
the
managers’
perception
on
the
environment
as
a
competitive
opportunity.
The
influence
of
the
stakeholders
gives
way
for
the
company
to
develop
collaborative
relationship
with
stakeholders
in
finding
solutions
for
environmental
issues.
This
also
fosters
innovation
among
the
organizations
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
o Employees
27
Employees
are
the
main
players
of
environmental
sustainability
in
the
hotel.
According
to
Green
Hotels
Association
(GHA)
founder
Patricia
Griffin,
"A
housekeeper
can
see
if
a
towel
and
sheet
program
is
causing
less
wear
and
tear,
or
soap,
water
and
labor
savings,
for
example.
They
have
so
much
more
input
on
changes
that
can
be
made."
The
sustainability
programs
actually
become
a
force
that
bonds
management
and
the
employees.
Empowering
employees
and
making
them
see
the
differences
are
encouraging
(Block,
1998).
Griffin
adds
that
educating
employees
is
very
important
in
conservation,
as
it
is
they
who
make
all
the
investments
productive.
She
states
that
”You
can
spend
hundreds
of
thousands
of
dollars
to
install
energy
efficient
lighting,
but
if
the
employees
aren't
educated
and
don't
turn
them
off,
what
good
does
it
do?"
(Block,
1998).
How
the
employees
perceive
environmental
management
and
their
willingness
to
engage
in
environmental
efforts
would
help
the
managers
gauge
the
level
of
readiness
and
capability
of
the
employees
and
the
whole
hotel
in
taking
on
a
competitive
environmental
strategy.
o Suppliers
The
suppliers’
willingness
to
collaborate
with
the
company
is
essential
for
the
hotel
to
be
able
to
have
a
sustainable
supply
chain.
It
is
important
to
know
if
the
suppliers’
attitudes
and
opinions
on
environmental
policies
are
in
line
with
that
of
the
hotel.
Their
cooperation
and
openness
to
adapting
to
the
hotel’s
environmental
standards
will
influence
managers’
perceptions
that
will
influence
the
general
manager’s
choice
of
strategy.
o Customers
The
customers
are
the
ones
who
bring
in
revenue
to
the
business,
thus
their
demands
should
be
fulfilled.
There
has
been
a
growing
demand
for
green
hotels
among
the
customers.
This
trend
is
shown
in
the
results
of
a
US
Survey
by
Deloitte
wherein
95%
of
respondents
believe
that
the
hotel
industry
should
be
taking
green
initiatives
and
38%
of
business
travelers
have
tried
to
determine
whether
a
hotel
was
green.
Another
study
by
Accor
shows
that
76%
of
hotel
guests
felt
sustainable
development
is
important
to
them.
It
also
found
out
that
guests
have
high
expectations
for
hotels
to
have
efforts
in
the
areas
of
water,
energy,
and
waste.
Of
the
7,000
guests
surveyed,
51%
of
guests
take
a
hotel’s
28
environmental
involvement
into
consideration
when
choosing
one
(Euromonitor
International,
2012).
The
customer
also
plays
a
role
in
the
delivery
of
service
and
implementation
of
environmental
practices
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐Jimenez,
2004).
It
must
be
taken
into
consideration
that
most
customers
in
the
hospitality
industry,
expect
to
be
pampered.
Delivering
services
efficiently
usually
mean
using
energy
and
resource‐
demanding
facilities
and
activities.
Examples
include
constant
use
of
water
heaters,
air
conditioners,
high‐pressured
showers,
having
ample
supply
of
towels
and
linens,
abundant
supplies
of
food
and
drink
and
having
facilities
such
as
swimming
pools
and
saunas
(Kirk,
1995).
Thus,
whatever
is
done
to
reduce
waste
can
only
be
done
with
the
consent
of
the
customer,
who
is
directly
involved
in
terms
of
deciding
his/her
energy
and
resource
consumption
and
generation
of
waste
(Carmona‐Moreno,
Cespedes‐Lorente,
&
De
Burgos‐
Jimenez,
2004).
It
must
also
be
done
in
such
a
way
that
the
customer
does
not
notice
any
deterioration
of
service
(Kirk,
1995).
The
level
of
customers’
demands
for
environmental
efforts
in
hotels
and
their
need
and
willingness
to
engage
themselves
in
the
environmental
hotel
experience
can
help
managers
in
determining
which
competitive
environmental
strategy
to
suggest.
2.2.4 Actions
Areas
The
following
section
presents
the
action
areas
that
are
usually
addressed
when
planning
an
environmental
management
program.
The
significance
of
the
action
areas
is
discussed
below.
The
department
managers’
perceptions
on
the
factors
and
actors
are
reflected
on
their
suggestions
for
the
following
action
areas.
The
department
managers’
recommendations
will
be
relevant
because
they
help
the
general
manager
decide
what
strategy
will
best
accommodate
the
suggestions
for
the
said
action
areas.
o Green
program
structure
According
to
Hsieh,
actual
environmental
practices
have
to
be
examined
to
establish
what
among
the
many
guidelines
and
legal
restrictions
for
environmental
management
are
to
be
applied
for
each
establishment
(Hsieh,
2012).
In
order
to
be
successful,
all
departments
29
within
the
hotel
should
play
a
role
in
the
planning
and
implementation
of
its
environmental
management
program.
A
study
by
Enz
and
Siguaw
(1999)
looked
at
the
environmental
practices
of
four
hotels
considered
as
environmental
champions,
namely:
the
Colony
Hotel,
the
Hotel
Bel
Air,
the
Hyatt
Regency
Chicago,
and
the
Hyatt
Regency
Scottsdale.
It
has
found
out
that
each
of
the
hotels
focused
on
resource
conservation,
education
and
community
involvement.
Another
common
feature
was
that
each
created
new
management
positions
(i.e.
recycling
manager,
director
of
environmental
programs)
or
established
special
committees
(i.e.
Green
Team)
to
take
charge
of
the
implementation
of
the
hotels’
environmental
programs
(Hsieh,
2012).
The
Green
Team
concept
focuses
on
training
and
pooling
staff
and
managers
who
will
be
responsible
for
the
firm’s
environmental
management
program.
The
employees
are
very
essential
in
making
the
Green
Team
concept
a
success
in
every
organization
(Scanlon,
2007).
Studies
have
shown
that
the
Green
Team
keeps
employees
involved
in
a
hotel’s
commitment
to
the
environment
by
giving
employees
a
voice
in
creating
new
policies
and
practices
within
the
hotel.
It
also
encourages
volunteerism
promoting
high
involvement
and
boosting
employee
morale
and
truly
makes
a
difference
in
the
hotel’s
environmental
performance
(Heney,
2009).
o Energy
efficiency
Sustainable
hotel
practices
are
initially
built
on
energy
conservation
and
resource
management.
In
the
hospitality
industry,
electricity
use
accounts
for
60%‐70%
of
utility
costs.
HVAC
(Heating,
ventilation
and
air
conditioning)
and
lighting
account
for
75%
of
total
hotel
energy
use
(Chan,
Mak,
Chen,
Wang,
Xie,
&
Hou,
2008).
For
the
past
two
decades,
hotels
have
been
continuously
implementing
electricity
use
reduction
measures.
The
usual
simple
measures
include
using
fluorescent
bulbs
instead
of
incandescent
bulbs,
replacing
windows
or
adding
insulation
to
cut
heating
and
cooling
costs,
and
including
motion
sensors
and
timers
to
reduce
power
use
(Miller
&
Washington,
2008).
Energy
conservation
measures
can
also
be
done
through
implementing
an
energy
management
system.
This
is
a
system
that
monitors
environmental
and
system
loads
and
adjusts
HVAC
(heating,
ventilation
and
air
conditioning)
operations
accordingly
in
order
to
conserve
energy
while
maintaining
comfort
(US
Environmental
Protection
Agency,
2006).
In
30
hot
regions,
air‐conditioning
is
the
main
factor
for
energy
use.
There
are
a
lot
of
technological
advances
for
reducing
or
utilizing
solar
energy
that
have
entered
the
market.
This
include
coated
glass
of
various
kinds,
triple
vacuum
glazing,
switchable
electrochromic
windows
and
solar
control
films.
These
reduce
heat
entering
the
rooms
and
can
lower
energy
use
for
cooling
(Chan,
Mak,
Chen,
Wang,
Xie,
&
Hou,
2008).
o Resource
&
waste
management
Water
conservation
and
waste
management
are
also
focus
areas
for
the
hotel
industry
(Miller
&
Washington,
2008).
Water
conservation
refers
to
efforts
toward
reduction
in
water
consumption.
Waste
reduction
is
done
to
prevent
or
decrease
waste
quantities
through
waste
prevention,
recycling,
or
purchasing
recycled
and
environmentally
preferable
products
(US
Environmental
Protection
Agency,
2006).
Recycling
programs
in
hotel
can
keep
as
much
as
80%
of
waste
from
being
land
filled
(Miller
&
Washington,
2008).
Energy,
resource
and
waste
management
can
lead
to
helping
reduce
emissions,
which
is
also
one
off
the
main
goals
of
sustainable
hotel
practices.
Emissions
usually
come
in
the
form
of
carbon
dioxide
(CO2)
and
methane
(CH4).
It
is
pollution
discharged
into
the
atmosphere
from
smokestacks,
other
vents,
and
surface
areas
of
commercial
or
industrial
facilities
(US
Environmental
Protection
Agency,
2006).
o Sustainable
supply
chain
Sustainable
supply
chain
management
is
the
use
of
purchasing
policies
and
practices
to
help
realize
a
company’s
commitment
to
the
environment.
It
usually
involves
a
collaboration
of
the
supply
chain
members‐
particularly
between
the
companies
and
their
suppliers
that
provide
products,
services
and
information.
The
willingness
of
both
parties
to
collaborate
and
do
research
can
also
lead
to
making
environmental
products
and
services
readily
available
for
the
hotels’
customers.
A
company
not
keen
on
collaboration
can
also
take
a
forced
compliance
strategy
through
setting
performance
standards
and
goals.
Factors
such
as
type
of
business,
levels
of
competition,
size
and
influence
of
the
buyer
and
supplier
help
determine
if
the
company
would
adopt
either
a
collaborative
or
forced
compliance
strategy
(Font,
Tapper,
Schwartz,
&
Kornilaki,
2008).
31
Developing
an
environmental
policy
is
the
first
step
a
company
can
take
towards
having
a
sustainable
supply
chain.
It
will
then
be
easier
for
the
company
to
communicate
environmental
goals
and
expectations
to
its
suppliers.
Codes
of
conduct
for
suppliers
can
also
be
included
in
communicating
the
company’s
environmental
goals.
The
issues
to
be
covered
by
this
set
of
codes
include
issues
such
as
workplace
conditions,
product
materials,
and
restricted
substances.
The
suppliers’
environmental
compliance
status
and
standards
should
be
checked
and
regularly
monitored.
The
suppliers’
environmental
achievements
should
also
be
acknowledged
recognizing
and
awarding
them
appropriately
(Font,
Tapper,
Schwartz,
&
Kornilaki,
2008).
2.2.5 Current
Environmental
Business
Practices
in
Hotels
A
number
of
hotel
companies
around
the
world
have
implemented
sustainable
business
practices
over
the
past
two
decades
(Bader,
2005).
Examples
of
hotels
that
have
implemented
the
different
environmental
strategies
are
presented
below.
The
examples
illustrate
how
the
competitive
environmental
strategies
are
being
applied
in
hotels.
The
managers
can
use
the
examples
as
a
tool
for
reflecting
on
which
environmental
strategy
is
relevant
and
possibly
applicable
for
adoption,
considering
the
hotel’s
current
conditions.
One
example
of
a
hotel
that
has
clearly
adopted
the
eco‐efficiency
strategy
is
Doubletree
Hotel
and
Executive
Meeting
Center
in
Portland,
Oregon.
The
strategy
is
evidenced
in
its
sustainable
resource
management
program,
which
has
brought
down
costs
of
operation
and
has
a
change
in
organizational
processes.
Its
waste
disposal
volume
has
been
reduced
by
sixty‐five
percent
in
ten
years.
Other
supplementary
efforts
include
selling
waste
kitchen
oil
to
biodiesel
producers,
maintaining
small
inventories,
donating
excess
food
to
a
local
shelter,
preferring
reusable
containers
to
disposable
one,
and
having
a
paper‐saving
program.
The
success
of
the
program
is
attributed
to
its
integration
into
the
business
philosophy.
According
to
the
General
Manager,
Steve
Faulstick
“The
Doubletree’s
program
starts
at
the
top,
with
management’s
personal
dedication
to
greenness”
(McPhee,
2006).
Movenpick
hotels
and
resorts
is
a
chain
that
has
implemented
the
beyond‐compliance
leadership
strategy
as
it
focuses
on
differentiation
through
organizational
processes.
Sustainability
is
treated
as
a
top
priority
of
all
operations
in
the
hotel.
As
evidence,
it
has
32
achieved
the
Green
Globe
certification
for
all
its
21
hotels
in
Europe.
Its
initiatives
include
using
biodegradable
products
such
as
biodegradable
pens,
wooden
key
cards,
ecological
bathroom
amenities
and
using
fair‐trade
coffee.
Its
food
is
locally
sourced
and
organic.
Its
employees
in
all
21
hotels
in
Europe
undergo
sustainability
training
and
are
given
access
to
its
e‐learning
toolkit
to
learn
more
about
sustainability
(Euromonitor
International,
2012).
Another
hotel
that
is
a
good
example
of
having
a
beyond‐compliance
leadership
strategy
is
the
InterContinental
Grand
Stanford
Hong
Kong,
which
has
a
clear
environmental
vision
created
in
1999.
Its
initiatives
have
included
installation
of
digital
thermostats
in
all
guest
rooms,
water
purification
systems,
an
ISO
environmental
management
system
and
a
building
management
system.
It
saved
over
€650,000,
between
1999
and
October
2005.
Its
great
staff
morale
and
dedication
has
improved
its
public
image,
increasing
the
hotel’s
public
relations
value.
These
efforts
and
systems
have
led
to
an
increase
in
its
business
performance
(Bader,
2005).
Element
by
Starwood
has
the
following
global
strategy:
“
Element
is
positioned
as
the
world’s
first
fully
LEED
(Leadership
in
Energy
and
Environmental
Design)
certified
hotel
chain
for
‘Healthy
Active’
guests
sensitive
to
Green
and
Sustainable
issues.”
This
hotel
chain
is
implementing
the
eco‐branding
strategy
by
focusing
on
differentiation
in
its
products
and
services.
The
differentiation
is
very
evident
from
the
fact
that
all
the
nine
hotels
in
the
chain
are
mandated
to
be
built
ecologically
and
seek
for
LEED
accreditation.
They
market
the
hotel
atmosphere
as
modern
and
sociable,
as
well
as
being
environmentally
friendly.
It
has
incorporated
eco‐friendly
materials
in
construction,
furnishing
and
energy
conservation,
bringing
in
higher
profits
(Euromonitor
International,
2011).
Environmental
cost
leadership
is
seen
in
the
examples
below
for
Rezidor’s
Radisson
SAS
and
Crowne
Plaza
Copenhagen.
It
involves
radical
innovation
in
technology
and
products
and
services.
The
initial
investment
is
certainly
of
a
considerable
amount
but
it
is
expected
to
pay‐off
and
eventually
bring
the
costs
down,
giving
the
hotel
a
clear
competitive
advantage
for
the
years
to
come.
Rezidor
has
21
Radisson
SAS
hotels
that
it
considers
as
best
practice
examples
of
responsible
business
policy
implementation.
It
has
invested
in
cost‐saving
methods.
In
Beijing,
China
a
steam
recovery
system
was
invested
in,
which
had
a
three‐month
payback.
Combined
with
a
33
grey
water
system,
the
two
systems
result
in
annual
savings
of
€5,000.
In
Istanbul,
40
solar
panels
were
installed
with
an
estimated
payback
period
of
two
years.
In
Malta,
25%
of
the
energy
utilized
by
the
hotel
is
derived
from
solar
panels.
In
Stavanger,
Norway,
two
hotels
were
able
to
reduce
energy
consumption
by
9
percent
through
a
single
energy‐saving
campaign.
In
Ireland,
its
chemical
and
laundry
supplies
were
reduced
by
50%
(Bader,
2005).
Crowne
Plaza
Copenhagen
has
a
carbon‐neutral
building.
The
hotel
boasts
of
the
largest
building
integrated
solar
panel
park
in
Northern
Europe
and
the
first
ever
groundwater‐
based
cooling
and
heating
system
in
Denmark.
It
also
operates
a
system
(Variable
Air
Volume
or
VAV)
that
electronically
regulates
the
amount
of
air
in
each
individual
room
according
to
need.
It
uses
low
energy
light
sources
and
its
hotel
corridors
has
intelligent
light
management
and
water
saving
is
applied
everywhere
(Crowne
Plaza
Copenhagen
Towers,
2010).
The
rooms
are
loaded
with
green
products
such
as
organic
toiletries
(i.e.
shampoo
bottle,
toothbrush)
and
all
paper‐printed
information
material
are
history
as
all
information
is
delivered
electronically
through
an
interactive
TV
screen
information
system.
All
of
the
hotel’s
IT
infrastructure
has
been
selected
based
on
energy
frame
and
recyclability.
The
kitchen
is
designed
to
operate
at
the
lowest
heat
emission
possible
and
all
waste
produces
from
the
kitchen
is
processed
and
sent
to
a
biogas
plant
to
be
further
used
as
fertilizers.
It
has
also
revolutionized
its
supply
chain
management
by
having
a
calculated
food
strategy,
reducing
weekly
deliveries,
and
preferring
post‐mix
beverage
over
bottled
beverages
(Crowne
Plaza
Copenhagen
Towers,
2010).
2.3 Conceptual
framework
Having
discussed
rationale
behind
environmental
management,
the
factors
and
the
actors
influencing
department
managers’
perceptions
and
possible
suggestions
and
the
general
manager’s
decisions
on
an
environmental
strategy,
this
section
discusses
how
these
will
be
relevant
and
how
it
will
lead
to
the
answers
for
the
study’s
research
question
and
objectives.
34
Figure
5:
Conceptual
Framework
Companies
employ
different
strategies
in
order
to
successfully
carry
out
an
environmental
management
program.
The
competitive
environmental
strategies
by
Orsato
are
a
set
of
environmental
strategies
that
focuses
on
a
company’s
competitive
advantage
and
competitive
focus.
A
number
of
actual
examples
on
the
application
of
the
competitive
environmental
strategies
were
discussed
in
the
previous
section.
How
a
general
manager
ultimately
selects
a
strategy
for
depends
largely
on
the
current
conditions
of
the
factors
and
actors
that
are
said
to
influence
the
general
manager’s
perceptions
&
decision
as
well
as
the
department
managers’
perceptions
and
suggestions.
The
latter
are
taken
into
account
before
deciding
on
a
strategy.
The
current
states
of
the
factors,
namely,
environmental
legislation,
resources
and
capabilities
and
opportunities
and
challenges
all
influence
the
department
manager’s
perceptions
and
suggestions
on
environmental
efforts
as
well
as
the
general
manager’s
decision
in
selecting
a
strategy.
In
addition
to
the
factors
mentioned,
it
is
important
to
note
the
bilateral
relationship
that
exists
between
the
managers
and
the
actors/stakeholder
groups.
How
the
managers
perceive
the
importance
of
the
stakeholder
groups
in
considering
a
competitive
environmental
strategy
affect
their
perceptions
and
suggestions
and
in
turn,
affects
the
way
the
general
manager
selects
a
strategy.
On
the
other
hand,
35
knowing
how
the
stakeholder
groups
perceive
environmental
management,
what
their
demands
are
and
their
willingness
to
cooperate
would
also
enable
management
to
cater
their
suggestions
in
accordance
with
the
stakeholders’
views.
This
then
allows
the
general
manager
to
select
a
workable
strategy
considering
current
conditions
of
the
factors
and
the
actors,
allowing
the
company
to
gain
competitive
advantage.
The
department
managers
will
play
a
significant
role
in
giving
out
information
about
the
different
factors
described
above,
including
the
current
conditions
of
the
business,
business
environment
and
the
local
legislation.
The
suppliers’
and
employees’
views
will
allow
management
to
point
out
recommendations
for
business
activities
involving
both
stakeholder
groups.
The
customers’
views
will
either
affirm
or
deny
the
perceived
ideas
of
management
regarding
the
market
and
will
help
management
choose
a
strategy
that
will
fit
the
demands.
Recommendations
for
the
four
action
areas
of
green
program
structure,
energy
efficiency,
resource
and
waste
management
and
sustainable
supply
chain
are
then
be
presented.
The
recommendations
were
derived
from
the
thoughts
of
the
managers
and
the
views
of
the
three
stakeholder
groups.
The
recommendations
will
stand
as
another
factor
and
basis
for
the
general
manager’s
decision
on
the
choice
of
competitive
environmental
strategy.
It
will
also
be
useful
for
further
planning
and
implementation
of
the
firm’s
environmental
management
efforts.
How
the
strategies
will
be
selected
depend
largely
on
the
department
manager’s
perceptions
and
suggestions
on
the
current
environmental
position
and
efforts
of
the
company
and
the
current
conditions
of
the
factors
and
actors.
Four
sets
of
combinations
of
different
factors
and
actors’
conditions,
ideal
for
each
competitive
environmental
strategy
are
presented
below.
The
sets
of
combinations
act
as
guide
in
order
to
be
able
to
match
the
current
conditions
with
the
ideal
conditions
presented
per
strategy.
The
set
that
gives
the
closest
match
to
the
current
conditions
is
recommended
as
the
strategy
that
the
hotel
can
adopt.
The
general
manager’s
decision
on
a
competitive
environmental
strategy
depends
on
the
following
factors:
36
o Department
managers’
perceptions
and
suggestions
on
environmental
efforts
o Stakeholders’
views
and
demands
o Environmental
legislation
o Availability
of
resources
o Environmental
knowledge
and
capabilities
of
the
firm
The
following
sections
describe
the
ideal
level
(i.e.
low/high
presence)
of
each
driver
in
terms
of
current
business
conditions
in
order
to
be
able
to
influence
the
department
managers
to
suggest
and
the
general
manager
to
select
a
certain
competitive
environmental
strategies.
o Eco‐efficiency
Eco‐efficiency
strategy
is
geared
towards
cost
savings
through
resource
use
reduction
(McDonough
&
Braungart,
2000).
The
strategy
can
be
selected
if
the
managers
have
positive
view
on
environmental
management
and
Employees
and
customers
are
willing
to
be
engaged
in
environmental
efforts.
Moreover,
environmental
legislation
on
simple
environmental
measures
is
present.
Lastly,
this
becomes
the
ideal
strategy
if
the
firm
has
limited
resources
and
knowledge
for
implementing
an
environmental
program
and
if
the
firm
has
low
influence
on
its
suppliers.
o Beyond
Compliance
Leadership
This
strategy
can
be
selected
if
the
managers
have
a
growing
concern
in
environmental
management
and
are
interested
in
moving
towards
adopting
a
proactive
approach.
This
is
also
ideal
if
there
is
a
demand
from
shareholders,
and
customers
and
openness
among
employees
in
terms
of
implementing
environmental
efforts
and
regulations
on
environmental
legislation
are
present
and
supportive
of
companies
pursuing
environmental
efforts.
In
this
strategy,
firms
are
willing
to
voluntarily
spend
money
on
environmental
improvements
(Orsato,
2006).
This
strategy
is
applicable
to
firms
that
have
resources
to
finance
environmental
investments
in
technology
and
organizational
changes
and
if
the
firm
has
access
to
knowledge
providers
and
consultancy
services
for
environmental
management.
Lastly,
this
strategy
is
ideal
if
both
the
company
and
suppliers
are
open
to
strengthening
ties.
37
o Eco‐branding
This
is
the
stage
wherein
the
firm
is
ready
to
further
explore
opportunities
for
environmental
differentiation
in
terms
of
products
and
services,
which
could
further
provide
a
competitive
advantage
(Orsato,
2006).
The
eco‐branding
strategy
requires
that
managers
have
a
strong
interest
and
are
willing
to
adopt
the
proactive
approach
in
environmental
management.
This
strategy
best
fits
a
firm
whose
shareholders
and
customers
have
a
strong
demand
and
if
its
employees
have
a
high
interest
in
the
firm’s
environmental
performance.
When
environmental
legislation
is
present
and
not
very
strict
but
ideally
supportive
of
companies
pursuing
environmental
efforts,
this
strategy
is
ideal.
Moreover,
adequate
resources
to
finance
environmental
investments
in
technology
and
organizational
changes
are
required.
Knowledge
about
environmental
management
and
environmental
technologies
and
access
to
excellent
knowledge
providers
and
consultancy
services
for
environmental
management
are
also
important.
Strong
supplier
ties
and
willingness
for
collaboration
among
suppliers
are
also
needed
to
be
successful
in
this
strategy.
o Environmental
Cost
Leadership
The
pattern
of
the
factors’
level
of
importance
here
are
similar
as
that
of
eco‐branding
strategy
but
it
is
required
that
the
managers
have
a
very
strong
interest
in
environmental
management
as
this
strategy
entails
radical
innovation
and
design
(Orsato,
2006).
This
strategy
is
ideal
if
the
firm
has
abundant
resources
to
finance
environmental
investments
in
technology
and
organizational
change
and
if
the
firm
is
highly
knowledgeable
about
environmental
management
and
environmental
technologies
and
have
access
to
excellent
knowledge
providers
and
consultancy
services
for
environmental
management.
Lastly,
this
strategy
can
be
selected
if
there
is
an
adequate
number
of
suppliers
and
strong
supplier
ties
with
a
strong
willingness
for
collaboration.
Having
presented
the
ideal
conditions
for
the
selection
of
a
strategy,
it
is
important
to
note
that
the
strategies
are
independent
and
are
non‐linear
from
each
other.
This
means
that
a
firm
can
surpass
the
adoption
of
lower
strategies
and
select
higher
strategies
if
it
is
capable
of
adopting
it.
It
is
also
possible
for
a
firm
to
switch
from
one
strategy
to
another,
regardless
of
whether
it
is
from
a
lower
strategy
to
a
higher
one
or
vice
versa.
38
3. Methodology
Methodology
is
the
“general
approach
to
studying
research
topics,”
usually
a
systematic
sequence
of
procedural
steps
to
be
followed
by
the
researcher
(Gobo,
2008).
It
shapes
which
and
how
methods
are
used
and
how
they
can
generate
answers
to
the
problem
(Silverman,
2005).
3.1 Research
Design
The
research
design
addresses
four
areas
in
order
to
acquire
good
findings
and
draw
a
reliable
conclusion.
These
four
areas
deal
with
the
questions
of
the
study,
the
relevant
data,
the
data
to
be
collected
and
how
to
analyze
the
results
(Yin,
2003).
There
are
five
components
of
a
research
design
for
case
studies.
These
are
the
(1)
study’s
questions,
(2)
its
propositions
(if
any),
(3)
its
units
of
analysis,
the
(4)
the
logic
linking
data
to
the
propositions
and
the
(5)
the
criteria
for
interpreting
the
findings.
The
units
of
analysis
are
determined
once
the
primary
research
questions
have
been
specified.
The
design
tells
what
is
to
be
done
after
the
data
have
been
collected,
as
indicated
by
the
logic
linking
the
data
to
the
propositions
and
the
criteria
for
interpreting
the
findings
(Yin,
2003).
Implementing
an
environmental
management
program
requires
that
an
environmental
strategy
be
selected
in
order
for
the
firm
to
know
how
to
respond
to
environmental
issues
and
how
to
use
such
issues
as
a
competitive
tool
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐
Cortes,
2010).
Thus
the
research
question
is
the
following:
What
competitive
environmental
strategy
can
Marco
Polo
Davao
adopt
for
its
environmental
management
program?
The
nature
of
the
research
question
calls
for
an
exploratory
study
design.
Exploratory
research
is
primarily
concerned
with
discovery
and
with
building
theory
(Jupp,
2006)
as
opposed
to
explanatory
research,
which
usually
seeks
causal
relationships
among
variables
(Vogt,
2005).
Exploratory
research
is
usually
employed
when
decides
to
work
on
a
little
researched
area,
or
is
developing
methods
for
a
later
more
formal
study.
It
is
often
a
precursor
to
a
larger
project
that
investigates
several
different,
but
related
areas
(Williams
39
M.
,
2003).
Since
there
is
barely
any
previous
study
done
on
environmental
management
for
the
selected
hotel,
the
researcher
firmly
believes
that
this
is
an
exploratory
study.
A
single
case
study
design
is
appropriate
when
it
represents
the
critical
case
in
testing
a
well‐
formulated
theory
(Yin,
2003).
Studying
views
and
opinions
of
management
and
other
stakeholder
groups
was
conducted
for
single
case
chained‐hotel
in
the
Philippines,
the
Marco
Polo
Davao.
The
case
is
selected
because
it
is
an
internationally
chained,
full‐service
hotel
in
the
Philippines.
International
hotel
chains
are
by
and
large,
the
ones
who
have
sustainability
programs,
or
at
least
have
environmental
efforts
put
in
place.
They
also
typically
command
a
greater
share
of
the
market
because
of
their
high
level
of
standards
and
consistency
in
services.
This
pushes
them
to
continually
innovate
and
find
ways
to
maintain
and
improve
its
market
performance
in
order
to
be
able
to
compete
with
the
others.
With
consideration
to
the
current
market,
which
ranks
low
on
sustainability,
studying
a
hotel
that
is
part
of
an
international
chain
would
be
advantageous
because
there
is
a
greater
chance
that
it
would
have
environmental
efforts
put
in
place
(Euromonitor
International,
2012).
It
is
also
advantageous
in
a
way
that
since
most
of
the
time,
hotel
chains
originate
from
more
developed
countries,
which
rank
higher
on
sustainability,
then
it
would
be
more
open
to
adopting
strategies
and
investing
in
sustainability
efforts.
Moreover,
being
the
market
leader,
it
has
a
greater
chance
of
influencing
its
competitors
and
suppliers
to
implement
environmental
efforts
in
their
businesses,
bringing
the
market’s
environmental
performance
to
a
higher
level.
The
single
case
design
is
chosen
to
answer
the
above‐mentioned
objectives
in
order
to
suggest
a
competitive
environmental
strategy
for
a
typical
chained
hotel
in
the
Philippines.
The
rationale
behind
the
decision
to
adopt
a
single
case
design
is
to
test
theory
that
is
considered
to
influence
the
general
manager’s
decision
in
choosing
a
competitive
environmental
strategy
and
draw
conclusions
on
what
environmental
strategy
to
suggest
(Yin,
2003).
A
testing
and
analysis
process
that
may
be
applicable
for
a
typical
chained
hotel
in
the
Philippines
The
unit
of
analysis
chosen
will
be
14
managers
from
different
departments
of
the
hotel,
the
general
manager,
a
few
suppliers
and
a
sample
of
employees
and
customers.
40
The
findings
of
the
study
is
deemed
successful
if
it
matches
with
theory,
meaning
that
the
interviewees
agree
with
what
is
generally
said
in
theory
and
that
the
survey
results
confirm
what
is
said
in
theory.
The
findings
is
then
used
to
select
a
competitive
environmental
strategy
for
the
hotel,
in
accordance
to
how
theory
describes
its
applicability
to
a
certain
firm.
3.2 Philosophical
Considerations
A
research
paradigm
is
the
theoretical
framework,
made
up
of
general
theoretical
assumptions,
laws
and
techniques
that
support
the
research
process
that
is
normally
adopted
by
a
particular
scientific
study.
It
helps
the
researcher
answer
the
research
question
through
the
framework’s
guiding
structure
and
tools
(Wills,
2007).
It
defines
what
the
research
is
about
and
what
falls
within
and
outside
the
limits
of
legitimate
research
(Voce,
2004).
It
then
follows
that
the
methodologies,
practices
or
data
analysis
techniques
are
dependent
on
the
chosen
paradigm.
The
paradigm
allows
the
researcher
to
identify
his/her
role
in
the
research
process,
determine
the
course
of
the
project
and
distinguish
other
perspectives
(Williams
E.
,
1998).
The
research
paradigms
are
positivism,
interpretivism
and
critical
theory.
Positivism
and
interpretivism
are
different
in
such
a
way
that
interpretivist
research
goals
are
usually
aimed
for
understanding,
contrary
to
that
of
the
explanation
aim
of
positivist
goals.
Interpretive
researchers
see
the
world
as
complex
and
dynamic
and
try
to
understand
how
others
see
the
world
or
construct
meaning.
The
goal
is
to
seek
to
know
why
things
are
happening
in
a
particular
context.
Thus,
interpretivism
raises
questions
about
how
we
obtain
knowledge
about
the
world
and
nature
of
knowledge
is
based
on
observable
phenomena,
subjective
beliefs,
values,
reasons
and
understandings.
“The
subjective
process
promotes
cultural
conditions
of
a
society
and
an
understanding
of
why
things
operate”
(Pope,
2006).
Inductive
reasoning
is
used
here.
Methodologically,
the
researcher
plays
a
role
of
being
the
co‐
creator
of
meaning.
As
the
study
is
one
of
exploration,
the
researcher
also
brings
her
own
subjective
experience
to
the
research
and
tries
to
develop
an
understanding
of
the
phenomenon
and
a
deep
understanding
of
how
each
part
relates
and
is
connected
to
the
whole
phenomenon.
41
In
this
study,
interpretivism
is
appropriate
as
the
nature
of
the
knowledge
are
derived
from
observable
phenomena
in
the
chosen
hotel.
It
is
acknowledged
that
the
persons
concerned
have
subjective
views
on
the
importance
and
feasibility
of
having
an
environmental
management
program
in
place.
It
takes
on
reality
and
how
people
look
at
the
situation
as
the
basis
for
creating
meaning.
It
looks
into
how
things
are
currently
operating,
why
the
managers
behave
the
way
that
they
are
behaving
right
now.
The
understanding
of
the
researcher
regarding
the
phenomenon,
based
on
theories
are
brought
into
the
research
together
with
the
data
gathered
from
different
stakeholder
groups
of
the
organization
to
create
a
deeper
understanding
of
the
phenomenon.
•
Research
Approach
Induction
and
deduction
are
valuable
tools
that
facilitate
problem
solving.
One
looks
at
the
general
characteristics
in
a
set
or
group
of
observations
(deduction).
The
other
one
identifies
a
particular
resemblance
to
a
group
of
known
observations
(induction)
(Silverman,
2005).
Induction
is
making
inferences
of
a
general
law
from
observation
of
particular
instances,
while
to
induce
(in
relation
to
science
and
logic)
means
to
suggest
or
end
up
with
a
conclusion
as
derived
from
reasoning
(Rothchild,
2006).
Induction
is
putting
in
to
an
order
or
rule
the
features
or
a
combination
thereof
that
are
found
in
the
data
material.
It
deals
with
extending
and
generalizing
the
information
available
(Flick,
Ernst,
&
Steinke,
2004).
In
qualitative
induction,
the
existence
of
qualitative
features
in
a
sample
is
used
to
infer
the
presence
of
other
features
that
are
not
perceived.
All
scientific
procedures
that
are
found
from
collected
data;
new
versions
of
what
is
already
known
are
based
on
qualitative
induction
(Flick,
Ernst,
&
Steinke,
2004).
Considering
the
selected
paradigm
of
the
study,
Induction
is
the
appropriate
approach
for
this
study.
This
is
because
it
is
essential
to
first
look
into
the
current
facts
and
the
views
of
the
different
stakeholders
on
environmental
management
before
a
broader
and
more
general
conclusion
may
be
reached,
which
is
to
point
out
a
strategy
for
the
whole
organization
and
not
only
for
a
specific
department.
From
the
specific
individual
interviews,
we
combine
the
results
the
common
features
that
were
not
initially
perceived
were
put
into
order.
42
3.3 Data
Collection
Process
“Methodology
shapes
which
methods
are
used
and
how
each
method
is
used”
(Silverman,
2005).
There
are
two
methodologies
in
research,
quantitative
and
qualitative
research.
Both
have
different
strengths
and
logics,
which
are
appropriate
for
different
purposes.
Quantitative
research
relies
on
the
attainment
of
a
precise
measurement
of
something
for
descriptions,
explanations
and
predictions
about
a
phenomenon.
In
order
to
attain
a
precise
measurement,
its
sample
design
is
usually
large
and
based
on
probability.
The
research
design,
selected
before
starting
the
study,
remains
consistent
until
the
end.
Either
single
or
mixed
methods
are
used
in
quantitative
research
(Cooper
&
Schindler,
2011).
The
most
common
methods
of
data
gathering
are
by
conducting
surveys
and
experiments.
Survey
results
provide
a
numeric
description
of
a
sample,
in
which
researchers
generalize
findings
to
a
population.
In
experiments,
cause‐and‐effect
relationships
are
tested.
Experimental
variables
are
manipulated
by
the
researcher
and
are
determined
whether
it
influences
an
outcome
(Cresswell,
1994).
Statistical
and
mathematical
methods
are
usually
used
for
data
analysis,
maintaining
a
clear
distinction
between
facts
and
judgments
(Cooper
&
Schindler,
2011).
Qualitative
research
is
done
in
order
to
understand
and/or
interpret
a
phenomenon.
The
researcher
takes
part
in
data
gathering
and
often
immerses
oneself
in
the
issue
to
provide
a
detailed
description
of
what
is
currently
taking
place.
The
sample
size
is
generally
small
and
its
research
design
is
adjusted
throughout
the
study
(Cooper
&
Schindler,
2011).
Common
data
gathering
methods
include
observations,
conducting
interviews,
analyzing
public
and
private
documents,
examining
physical
evidence,
photographs
and
videos
and
taking
photographs
and
videotapes
(Cresswell,
1994).
Multiple
methods
are
customary
and
are
done
simultaneously.
Data
is
regularly
in
the
form
of
verbal
descriptions
and
data
analysis
is
ongoing
throughout
the
course
of
the
study
(Cooper
&
Schindler,
2011).
Qualitative
research
claims
to
describe
the
world
from
the
points
of
view
of
the
people
who
participate.
This
method
brings
a
better
understanding
of
the
processes,
meaning,
patterns
and
structural
features
of
social
realities
(Flick,
Ernst,
&
Steinke,
2004).
The
inductive
approach
of
qualitative
research,
with
its
focus
on
specific
situations
or
people,
and
words
rather
than
numbers,
give
qualitative
research
its
strength
(Maxwell,
1996).
43
The
mixed‐methodology
design
is
where
the
researcher
combines
aspects
of
the
qualitative
and
quantitative
methods
at
all
or
many
methodological
steps
in
the
design
(Cresswell,
1994).
In
this
case,
the
researcher
is
interested
in
meanings
and
relationships
between
the
managers’
views
and
different
factors
and
actors
affecting
their
decisions
and
the
supplier’s
views.
Qualitative
methods
were
employed
in
finding
out
the
said
meanings
and
relationships.
Moreover,
a
survey
was
also
conducted
among
employees
and
customers,
in
order
to
be
able
to
clearly
point
out
the
difference
between
facts
on
their
views,
as
shown
by
the
sample’s
results
and
judgments
as
stated
in
theory.
Therefore,
both
qualitative
and
quantitative
data
were
collected,
making
the
study
a
mixed‐method
research.
The
study
uses
methodological
triangulation
as
a
method
of
primary
data
collection.
Triangulation
is
based
on
the
assumption
that
any
bias
in
a
data
source
will
be
neutralized
when
used
in
conjunction
with
other
data
sources
and
data
collection
methods.
It
will
help
achieve
credibility
of
the
evidence
collected
and
conclusions
made
(Cresswell,
1994).
The
purpose
of
the
study
is
to
understand
the
meaning
of
the
events,
situations
and
actions
of
the
participants,
namely
the
managers
in
this
particular
context.
Their
perspective
on
the
different
events
and
actions
related
to
the
phenomenon
being
studied
is
part
of
the
reality
that
we
are
trying
to
understand.
The
researcher
is
also
interested
in
how
the
participants
are
making
of
their
understanding
of
the
current
factors
and
conditions
concerning
the
hotel’s
environmental
efforts
and
how
those
are
influencing
their
behavior
towards
those.
The
purpose
were
mainly
addressed
by
conducting
qualitative
interviews
with
managers.
This
means
that
the
qualitative
method
of
conducting
interviews
predominates
the
quantitative
method
to
be
employed,
which
are
in
the
form
of
surveys.
These
methods
help
determine
common
themes
and
detect
patterns
and
relationships
on
the
views
of
the
different
stakeholder
groups.
This
mixed‐method
research
is
done
to
increase
the
representativeness
of
data
(Silverman,
2005).
The
goal
of
the
study
is
to
suggest
a
competitive
environmental
strategy
for
Marco
Polo
Davao
by
looking
into
the
factors
that
influence
the
general
manager’s
decisions.
With
the
managers
being
the
main
decision‐makers,
the
interviews
with
the
managers
are
therefore
the
primary
mode
of
the
data
collection
in
this
research.
Supporting
data
were
also
derived
from
interviews
with
suppliers.
Another
method
of
data
collection
employed
was
the
survey
44
conducted
with
employees
and
customers.
The
researcher
personally
conducted
all
the
interviews
for
the
managers
and
the
suppliers.
The
researcher
took
notes
and
asked
permission
from
the
interviewees
to
record
the
interviews
using
an
audio
device
for
documentation.
Hotel
staff
helped
in
giving
out
the
surveys
for
employees
and
customers.
Secondary
sources
include
examination
of
company
briefings
and
reports
and
the
company
website.
3.4 Interviews
The
interview
is
one
of
the
most
significant
sources
of
case
study
information.
It
usually
appears
as
guided
conversations
and
the
questions
are
usually
more
fluid
than
that
of
surveys,
where
questions
are
usually
more
rigid
(Yin,
2003).
Case
study
interviews
are
usually
of
open‐ended
nature,
in
which
the
opinions
and
even
insights
and
proposals
of
the
key
respondents
about
specific
events
and
phenomenon
are
sought.
It
can
also
be
a
focused
interview
where
questions
are
specifically
worded
so
that
there
are
less
subjective
input
from
the
researcher,
allowing
the
respondent
to
possibly
provide
a
different
perspective
on
it
(Yin,
2003).
Interviews
are
advantageous
in
that
it
is
useful
when
informants
cannot
be
directly
observed,
the
informant
can
provide
historical
information
and
it
gives
the
researcher
“control”
over
the
line
of
questioning.
Although
it
can
be
advantageous
in
numerous
ways,
interviews
also
have
its
limitations.
It
is
limited
in
such
a
way
that
it
provides
“indirect”
information
filtered
through
the
views
of
interviewees.
It
is
also
said
to
provide
information
in
a
designated
place,
rather
than
the
natural
field
setting.
Researcher’s
presence
may
also
bias
responses
and
it
should
be
considered
that
not
all
people
are
equally
articulate
and
perceptive
(Cresswell,
1994).
•
Interview
with
managers
Face‐to‐face
interviews
were
conducted
at
the
managers’
offices
in
Marco
Polo
Davao,
during
office
hours.
Semi‐structured
interviews
were
conducted
with
the
selected
managers.
This
form
was
selected
to
allow
the
managers
to
talk
about
the
topic,
as
the
researcher
would
benefit
from
hearing
their
opinions,
insights
and
proposals.
Since
it
is
of
an
open‐ended
nature,
there
is
room
for
the
managers
to
propose
their
insights,
which
can
be
used
as
basis
for
further
inquiry.
A
set
of
primary
questions
is
developed
to
guide
the
managers
what
to
talk
about
and
to
help
them
avoid
deviating
from
the
topic.
The
45
researcher
followed
the
designed
line
of
inquiry
and
asked
questions
in
an
unbiased
manner
with
friendly
and
non‐threatening
open‐ended
questions
(Yin,
2003).
This
eliminated
defensiveness
and
allowed
the
researcher
to
openly
speak
about
his/her
insights,
proposals
and
suggestions.
The
managers’
interview
was
of
3
parts.
In
the
first
part,
the
managers
were
asked
about
their
job
and
department
background,
including
current
environmental
efforts.
The
second
part
sought
information
about
their
how
they
perceive
the
different
factors
that
affect
the
choice
of
an
environmental
management.
The
last
part
consisted
of
a
short
structured
interview
on
facilitators
and
barriers
of
environmental
management.
The
managers
were
presented
a
list
of
13
facilitators
and
6
barriers
and
were
asked
if
they
consider
each
item
as
a
facilitator
or
barrier,
only
as
a
secondary
facilitator
or
barrier
or
not
a
facilitator
or
barrier
at
all.
The
managers
were
selected
based
on
the
premise
that
their
job
functions
allow
them
to
contribute
to
environmental
management
planning
and
the
departments
they
manage
may
possibly
benefit
from
the
adoption
of
environmental
efforts
in
the
hotel.
The
following
managers
were
interviewed:
General
Manager,
Technical
Manager,
Executive
Housekeeper,
Assistant
Executive
Housekeeper,
Director
of
Human
Resources,
F&B
Training
Manager,
Food
&
Beverage
Manager,
Restaurant
Manager,
Banquet
Manager,
Executive
Chef,
Director
of
Sales
&
Marketing,
Financial
Controller,
Purchasing
Manager
and
the
Security
Director.
In
addition
to
the
fourteen
(14)
managers
mentioned
above,
the
owner’s
representative
was
included.
The
owners’
representative
is
designated
as
the
Senior
Vice
President
of
the
owning
company‐
Halifax
Davao
Hotel.
His
main
role
is
to
look
after
the
interests
and
investments
of
the
owners
by
monitoring
the
hotel’s
operations.
He
is
primarily
concerned
with
checking
budget
deviations,
capital
expenditures
and
final
decisions
on
recruiting
employees.
He
is
also
in
charge
of
allowing
the
presentation
of
investment
proposals
to
the
owners.
The
managers’
interviews
were
mainly
done
to
examine
their
views
on
environmental
management
and
the
factors
that
affect
management’s
decisions.
The
results
from
the
interviews
will
help
point
out
current
situation
in
terms
of
the
managers’
views
and
attitudes
46
and
environmental
management
and
how
they
currently
perceive
the
factors.
This
then
enables
management
to
have
a
position
in
terms
of
determining
a
strategy
for
the
firm.
•
Interview
with
suppliers
In
addition
to
the
interviews
with
the
managers,
four
(4)
suppliers
were
interviewed
regarding
their
views
on
sustainability
and
their
willingness
to
help
improve
the
supply
chain
of
the
hotel
by
moving
towards
a
sustainable
supply
chain.
The
interviews
were
brief
and
semi‐structured
as
well.
This
is
used
to
support
the
data
and
to
help
determine
the
advantages
and
challenges
the
management
may
possibly
need
to
address
in
making
policies
for
a
sustainable
supply
chain.
3.5 Surveys
A
survey
provides
a
quantitative
or
numeric
description
of
a
sample.
Data
collection
in
this
method
generally
refers
to
a
sample
of
people
being
asked
questions
on
one
occasion‐
either
orally
or
through
a
questionnaire.
The
main
purpose
of
the
surveys
conducted
in
this
study
is
to
obtain
descriptive
statistics,
which
reflect
the
population’s
view
(Cramer
&
Howitt,
2004).
•
Survey
for
employees
Although
this
thesis
deals
about
the
possibility
of
adopting
strategies
and
in
addressing
issues
in
the
company
as
pointed
out
by
the
managers,
the
fact
that
the
employees
play
a
vital
role
in
realizing
a
company’s
sustainability
strategies
cannot
be
neglected.
Thus,
a
short
survey
with
5
questions
was
given
to
the
employees
to
determine
their
views,
attitudes
and
willingness
to
participate
in
a
sustainability
program.
This
is
to
help
determine
if
the
employees
are
willing
and
interested
in
education
and
training
and
be
engaged
in
the
hotel’s
sustainability
program.
The
answers
to
the
questions
were
mainly
in
the
form
of
yes
and
no.
o Survey
for
customers
Customers
bring
in
revenue
to
any
business.
In
a
service‐oriented
institution
like
a
hotel,
it
is
important
to
know
the
customers’
demands
and
interests.
This
will
enable
the
hotel
to
design
its
environmental
plans,
with
the
customers
in
mind.
Short
interview
questionnaires
with
7
questions
were
handed
out
to
customers
and
prospective
customers.
This
method
47
helped
the
researcher
find
out
if
there
is
general
interest
on
green
efforts
among
the
guests
and
if
there
is
willingness
to
pay
more
for
it.
The
answers
to
the
questions
are
in
a
yes
and
no
format.
3.6 Data
Analysis
The
research
has
a
qualitative
approach
based
on
a
single
method.
The
general
analytic
strategy
employed
in
this
study
is
to
rely
on
theoretical
positions’
wherein
the
researcher
looks
for
patterns
by
comparing
the
findings
with
the
theory
laid
down
for
the
study
or
findings
from
other
studies
(Yin,
2003).
The
data
gathered
from
the
interviews
were
compiled
and
broken
down
into
codes
or
categories.
The
codes
help
“identify
the
patterns
and
themes
from
the
perspective
of
the
interviewees.”
Themes
for
analysis
were
drawn
from
the
organized
codes
(Cresswell,
1994).
The
set
of
analytic
manipulations
by
Miles
and
Huberman
(1994)
was
followed
in
order
to
successfully
organize
the
data
collected.
The
method
involves
setting
the
information
into
different
arrays,
laying
information/evidence
in
different
categories,
creating
flowcharts
for
analysis,
tabulating
the
frequency
of
events
and
findings,
and
lastly,
putting
the
information
in
order
(Yin,
2003).
Quasi‐statistics
refer
to
the
“simple
use
of
simple
numerical
results
that
can
be
readily
derived
from
the
data”
(as
cited
in
Becker,
1970).
It
allows
the
researcher
to
assess
the
amount
of
the
data
that
supports
a
particular
conclusion
or
discrepant
instances
(Maxwell,
1996).
An
example
of
this
is
to
determine
whether
interviewees
show
a
positive
attitude
or
a
negative
attitude
toward
sustainability
and
from
how
many
different
sources
the
information
were
obtained.
Descriptive
statistics
summarizes
and
compresses
data
to
identify
essential
characteristics.
Basic
statistical
methods
and
measures
are
used
to
summarize
large
sets
of
data,
which
lead
to
making
descriptive
statements
about
individual,
groups
or
societies
(Pierce,
2008).
For
the
surveys,
the
mode
is
used
as
the
measure
of
central
tendency
to
interpret
the
data.
The
above‐mentioned
procedures
for
data
analysis
are
done
in
chapter
5‐
Findings
&
Analysis.
48
3.7 Reliability
&
Validity
“Unless
you
can
show
your
audience
the
procedures
you
used
to
ensure
that
your
methods
were
reliable
and
your
conclusions
valid,
there
is
little
point
in
aiming
to
conclude
a
research”
(Cresswell,
1994).
Validity
is
the
extent
to
which
an
account
accurately
represents
the
social
phenomena
to
which
it
refers
(Hammersley
as
cited
in
(Silverman,
2005)).
The
so‐called
validity
threat,
which
is
‘you
might
be
wrong’,
is
the
key
concept
for
validity,
which
often
comes
in
the
form
of
alternative
explanations.
In
qualitative
research,
most
validity
threats
are
ruled
out
after
using
evidence
collected
during
the
research
(Maxwell,
1996).
To
strengthen
the
validity
of
theory,
the
discrepant
data
and
alternative
explanations
were
considered
in
the
analysis.
Discrepant
data
refers
to
data
that
disagree
with
the
majority.
Furthermore,
triangulation
was
in
data
gathering
by
ensuring
that
key
informants
come
different
departments
and
have
different
ranks
within
the
hotel.
Suppliers
were
also
considered
for
interviews.
This
reduces
the
risk
of
systematic
biases
and
gives
a
higher
chance
of
the
generality
of
explanations
derived
from
the
assessment
of
data
(Maxwell,
1996).
Reliability
is
the
degree
of
consistency
in
which
instances
are
assigned
to
the
same
category
either
by
different
observers
or
by
the
same
observers
on
different
occasions
(Hammersley
as
cited
in
(Silverman,
2005)).
It
is
a
demonstration
that
the
data
collection
procedures
of
the
study
can
be
repeated
and
will
yield
the
same
results.
Reliability
has
the
goal
of
minimizing
errors
and
biases
in
a
study
(Yin,
2003).
To
secure
the
reliability
of
the
study,
the
context
in
which
data
were
gathered,
including
focus
of
the
study,
the
role
of
the
researcher,
the
profile
of
the
interviewees
and
basis
for
selection
are
stated
clearly
(Cresswell,
1994).
Proper
documentation
of
data
collection
procedures
and
consistent
use
of
categories
are
presented,
together
with
a
detailed
report
of
analysis
(Silverman,
2005).
Triangulation,
as
explained
above,
is
used
to
support
the
reliability
of
the
study.
External
validity
refers
to
the
validity
of
a
conclusion
beyond
the
setting
being
studied
(Maxwell,
1996).
In
this
study,
external
validity
is
not
a
crucial
issue
since
the
goal
is
not
to
49
generalize
the
findings
to
other
hotels
in
the
industry
but
to
explain
what
is
going
on
in
the
particular
setting.
What
will
be
uncovered
in
this
study
will
be
applicable
only
for
this
certain
case
and
is
not
generally
true
for
and
will
not
be
applied
to
other
organizations
in
the
industry
since
the
underlying
factors
for
the
study
will
be
different.
However,
the
theories
derived
from
the
findings
can
be
used
as
a
basis
for
comparison
in
similar
future
studies.
3.8 Limitations
The
study
is
subject
to
a
few
limitations.
First,
the
findings
are
derived
from
the
case
of
a
particular
hotel
and
the
answer
to
the
research
question;
specifically
the
selected
strategy
may
only
be
applicable
for
the
selected
hotel.
However,
the
general
results
on
the
sub‐
questions
pertaining
to
the
factors
and
actors
can
be
used
for
hotel
in
a
similar
situation,
size
or
business
environment.
Second,
there
may
be
biases
in
the
answers
of
the
managers,
in
order
for
the
organization’s
performance
and
image
to
look
better
than
what
they
really
are
in
reality.
50
4. The
Case
Marco
Polo
Hotel
Davao
is
used
as
the
case
in
this
thesis.
This
chapter
provides
a
background
of
the
Philippine
hotel
industry,
a
history
of
Marco
Polo
Hotel
in
Davao,
its
business
model
and
current
situation.
Information
presented
in
this
chapter
is
mainly
gathered
from
market
reports,
company
briefings
&
interviews.
4.1 The
hotel
industry
in
the
Philippines
The
Philippine
hotel
industry
has
increased
in
value
by
12%
in
2010.
Its
total
value
is
now
at
PHP60.4
billion.
Forecast
figures
show
that
the
hotel
industry
in
the
Philippines
is
expected
to
grow
further
from
PHP
60.4
Billion
to
PHP
88.2
Billion
in
2015.
Chained
hotels
account
for
majority
of
the
market,
at
58%
(Euromonitor
International,
2010).
Marco
Polo
Davao
is
located
in
the
third
largest
city
in
the
country
in
terms
of
population
and
economic
revenues.
It
is
also
the
main
business
center
in
the
island
of
Mindanao.
The
overall
region
is
growing
and
the
hotel
takes
advantage
of
this
growth
in
the
city
and
nearby
provinces
(Mauhay,
2012).
4.2 The
Hotel
The
Marco
Polo
Davao
was
inaugurated
in
the
year
1998
and
is
the
only
international‐
chained
hotel
in
Davao
and
in
Mindanao.
It
is
positioned
to
be
the
choice
for
first‐class
accommodation
in
Davao
City
and
to
also
contribute
to
the
growth
of
Davao
and
Mindanao
as
a
premier
destination
in
the
Philippines
(Marco
Polo
Davao,
2012).
It
has
been
and
is
still
the
local
benchmark
in
the
area’s
hotel
industry.
It
has
245
rooms,
which
it
maintains
and
operates
up
until
this
day.
Its
room
rates
are
normally
25%
higher
than
its
main
competitors
in
the
area,
notably
the
Apo
View
Hotel
and
the
Waterfront
Insular
Hotel
(Mauhay,
2012).
Despite
its
high
room
rates,
it
remains
to
be
the
market
leader
in
the
area.
This
is
attributed
to
the
hotel’s
high
international
standards
and
for
being
the
only
hotel
in
the
city
that
is
part
of
an
international
chain
(Mauhay,
2012).
51
4.3 Business
Model
The
Marco
Polo
Davao
is
a
locally
owned
property
(by
Halifax
Davao
Hotel
Incorporated)
and
is
managed
by
the
Marco
Polo
Hotel
Group.
This
means
that
all
its
standards
and
business
operations
are
in
accordance
with
that
of
the
prescribed
model
by
Marco
Polo
Group
(Serafin,
2012).
The
Marco
Polo
group
takes
pride
in
its
embodiment
of
Asian
warmth
and
Western
comfort.
It
has
nine
properties
in
Asia
and
it
is
now
established
as
one
of
the
leading
hotel
brands
in
the
region
(Marco
Polo
Davao,
2012).
Ms.
Jonna
Serafin,
the
HR
Director,
said
in
an
interview
that
the
Marco
Polo
Group
is
open
to
embracing
change
if
it
is
for
the
betterment
of
its
hotels,
as
mainly
reflected
by
improvements
in
its
financial
performance.
The
individual
hotel
can
also
customize
its
operations
according
to
its
needs
and
market
demands,
as
decided
by
the
management
team
and
approved
by
the
general
manager.
However,
it
should
be
communicated
and
pre‐approved
by
the
Marco
Polo
Group
before
implementing
the
changes
(Serafin,
2012).
Marco
Polo
Davao’s
client
base
comprised
of
80%
business
customers
and
20%
leisure
customers.
Of
its
business
customers,
90%
are
from
domestic
arrivals
while
10%
are
international
arrivals.
Thus,
its
main
target
market
is
composed
of
business
travelers
from
locally
based
companies
(Mauhay,
2012).
4.4 Current
business
situation
Marco
Polo
Davao
is
currently
the
market
leader
in
the
city.
Its
market
share
in
terms
of
revenue
is
at
38.77%
‐YTD
June2012
(Marco
Polo
Davao,
2012).
Although
the
business
has
been
growing
steadily
since
its
establishment,
it
is
anticipating
tougher
competition
in
2013.
With
the
region’s
high
growth
rate,
two
boutique
hotels
are
currently
being
built
and
are
set
to
open
in
Davao
City
in
the
first
quarter
of
2013.
These
hotels
are
Park
Inn
by
Radisson,
the
first
in
South
East
Asia
and
Kukun,
a
Philippine
hotel
chain.
Both
hotels
however,
are
boutique
hotels
and
are
expected
to
target
a
different
market
than
that
of
Marco
Polo.
It
is
expected
to
fill
in
the
gap
between
the
rates
offered
by
Marco
Polo
and
its
current
closest
competitors.
Marco
Polo
will
still
serve
its
current
market
and
is
not
planning
to
lower
its
rates
in
order
to
maintain
its
image
and
standards.
It
expects
52
to
continually
be
a
notch
above
its
current
and
prospective
competitors
in
terms
of
the
brand,
amenities
(i.e.
Marco
Polo’s
Continental
Club
room)
and
service
delivery
standards.
Its
sales
department
however,
still
expects
a
tough
year
ahead
and
it
is
aggressively
improving
its
marketing
efforts
by
offering
competitive
corporate
rates
to
prospective
corporate
clients
and
arranging
tie‐up
deals
with
tour
operators
and
resorts
in
the
area.
Ms.
Mauhay
however,
admits
that
they
have
to
explore
more
efforts
for
the
hotel
to
be
resilient
to
tougher
competition
and
for
it
to
be
able
to
maintain
a
good
financial
position
despite
upcoming
market
challenges
(Mauhay,
2012).
The
departments
and
managers
under
study
Marco
Polo
Davao
has
a
manpower
complement
of
326,
with
277
(85%)
regular
employees
and
49
(15%)
contractual
workers
(Serafin,
2012).
It
has
nine
departments,
which
are
all
being
supervised
by
the
designated
general
manager.
These
nine
departments
are
Food
and
Beverage,
Front
Office,
Housekeeping
&
Fitness
Center,
Sales
&
Marketing,
Finance,
Human
Resources,
Technical
and
Security
(Marco
Polo
Davao,
2012).
4.4.1 Current
environmental
efforts
of
Marco
Polo
Davao
The
hotel
is
compliant
to
local
government
environmental
requirements
as
mandated
by
the
Davao‐CENRO
or
the
City
Environment
and
Natural
Resources
Office,
under
the
Department
of
Environment
and
Natural
Resources
(DENR).
The
CENRO
Office
has
set
guidelines
for
waste
segregation,
wherein
all
waste
should
be
segregated
into
biodegradable,
non‐
biodegradable
and
residuals
(i.e.
sachets,
deodorant
bottles).
In
late
June
2012,
it
has
also
started
to
implement
the
ban
on
the
use
of
plastic
bags
in
the
city
and
instead,
promotes
the
use
of
paper
bags
or
biodegradable
plastics.
These
are
the
only
legislations
that
are
currently
in
place
that
the
hotel
adheres
to.
At
present,
the
segregation
is
put
in
place
in
the
F&B
and
Housekeeping
departments.
Marco
Polo
Davao
subscribes
to
the
Corporate
Social
Responsibility
(CSR)
Framework
of
the
Marco
Polo
Group.
It
has
environmental
measures
put
in
place,
which
are
not
required
by
the
government.
This
has
led
the
hotel
to
receive
the
ASEAN
Green
Hotel
Award
in
2009.
These
efforts
are
discussed
in
the
following
section
and
presented
by
department
implementation.
53
•
Administration
According
to
the
general
manager,
the
hotel’s
current
environmental
activities
are
related
to
cost
savings.
Water
and
electricity
problems
are
being
addressed
by
energy
saving
and
trying
to
reduce
costs.
He
states
that
decisions
on
environmental
investments
are
largely
dependent
on
the
owners’
willingness.
He
thinks
that
there
should
be
company
policies
for
decisions
on
environmental
investments,
as
there
is
no
clear
policy
in
place
at
the
moment.
The
financial
controller
said
that
they
do
not
do
any
environmental
measures
in
their
department
but
they
do
consider,
examine
and
approve
for
presentation
to
the
board
of
directors,
the
proposals
for
investments
in
environmental
technologies.
Under
the
finance
department
is
the
purchasing
department,
in
charge
of
items
and
supplies
procurement
for
the
hotel.
The
purchasing
manager
said
that
his
department
does
not
directly
do
anything
towards
being
environmentally
friendly.
The
purchasing
department
has
high
standards
for
its
suppliers
to
comply
with.
It
does
routine
check‐ups
with
the
products
and
facilities
of
its
suppliers,
especially
for
food
and
beverage
suppliers.
For
meat
suppliers,
they
only
select
those
accredited
by
the
National
Meat
Inspection
Service
and
prefer
GMP‐HACCP
accredited
suppliers
for
the
other
products.
GMP‐HACCP
is
quality
assurance
system
for
food
processors
and
services
operating
in
Philippines.
It
identifies
and
evaluates
food
safety
hazards
(chemical,
biological
or
physical
agents
in
food)
that
can
affect
consumer’s
health
(Philippine
Exporters
Confederation
Inc.,
2011).
Other
than
being
strict
on
workplace
environment
and
product
hygiene,
the
department
does
not
require
other
specific
environmental
requirements
from
its
suppliers.
The
Director
of
sales
and
marketing
said
that
the
department
is
in
charge
of
Corporate
Social
Responsibility
(CSR),
which
focuses
more
on
social
efforts.
It
is
also
in
charge
of
integrating
green
marketing
into
its
campaigns.
However,
it
is
not
currently
very
active
in
these
two
areas
since
it
is
anticipating
the
entry
of
two
new
major
competitors
in
the
market
and
its
main
concern
at
the
moment
is
to
maintain
its
current
market
share,
The
Human
Resources
Director
says
that
there
are
no
current
programs
at
the
department
aside
from
staff
training
in
order
for
the
hotel
to
be
able
to
successfully
implement
its
54
compliance
to
government‐mandated
legislations
on
waste
segregation
and
non‐use
of
plastics.
•
Food
&
Beverage
Department
For
F&B
Offices,
they
practice
recycling
and
reduction
of
paper
used.
The
training
manager
deals
with
integrating
safety
and
hygiene
practices
into
the
training
programs,
especially
for
new
hires
and
on
the
job
trainees
(OJT).
The
F&B
training
manager
also
organizes
seminars
and
trainings
for
the
F&B
associates
on
being
environmentally
friendly.
The
restaurant
manager
sees
to
it
that
energy
and
water
consumption
is
reduced
as
much
as
possible.
He
also
tries
to
see
to
it
that
the
use
of
bottles
and
breakages
are
minimized.
Aside
from
that,
the
restaurant
manager
also
oversees
the
maintenance
of
greens
in
the
area.
The
executive
chef
has
pointed
out
that
the
kitchen
maintains
high
sanitary
and
environmental
standards.
They
operate
in
partnership
with
Ecolab,
the
global
leader
in
water,
hygiene
and
energy
technologies.
Ecolab
products
and
services
are
geared
towards
helping
its
client
keep
their
environments
clean
and
safe,
operate
efficiently
and
achieve
sustainability
goals
(Ecolab,
2012).
The
F&B
Kitchen
department
specifically
works
with
Ecolab
in
meeting
international
safety
standards
for
food
processing,
specifically
GMP‐
HACCP
guidelines.
Doing
this
helps
the
department
prepare
for
its
application
for
a
HACCP
certification
in
the
near
future.
The
department
also
pays
an
external
consulting
firm,
Intertek,
to
audit
its
performance
in
food
safety,
water
samples,
and
facilities.
Other
specific
environmental
efforts
done
by
the
F&B
department
are
enumerated
in
Appendix
E.
•
Technical
Department
The
technical
department
mainly
carries
out
the
requirements
of
the
building,
equipment
and
even
maintenance
tasks
such
as
repainting.
The
technical
manager
is
a
qualified
Pollution
Control
Officer
by
the
Department
of
Environment
and
Natural
Resources
(DENR)
and
does
the
same
role
for
the
hotel.
He
is
the
one
who
spearheads
projects
for
energy
and
water
conservation,
including
projects
on
environmental
technologies.
He
said
that
the
department’s
main
goal
is
for
energy
use
reduction.
55
Under
its
energy
management
program,
it
has
replaced
its
lamps
with
energy‐efficient
lamps,
saving
the
hotel
a
total
of
181,202
kWh
per
year.
It
has
installed
VPD
(vacuum
positive
displacement)
to
selected
pumps
and
blowers,
saving
306,810
KWh.
They
are
currently
at
a
70%
replacement
completion
rate
and
the
aim
is
to
finish
it
within
the
year.
Moreover,
it
has
installed
steam
water
heat
pumps
for
the
hot
water
system
instead
of
using
diesel
power
and
it
has
moved
from
using
single
split‐type
air
conditioners
to
VRF
(Variable
refrigerant
flow)
air
conditioners,
saving
a
total
of
62,
290
kWh.
There
is
also
an
on‐going
replacement
of
existing
high
rating
steam
boiler
(200
BHP)
with
a
smaller
unit
(40BHP),
saving
18,000
liters
of
diesel
fuel
per
year.
They
currently
give
used
oil
to
recyclers
like
Holcim
Philippines
who
process
it
and
use
it
as
fuel.
They
are
also
starting
the
practice
of
bringing
used
cooking
oil
to
a
biogas
plant
to
convert
it
into
biofuel.
However,
its
costs
equal
its
savings
on
fuel
expenses
thus
there
are
no
profits
from
it
at
the
moment.
Aside
from
having
the
energy
management
program,
the
technical
department
also
handles
the
solid
and
water
waste
management
program.
Solid
wastes
are
either
put
in
a
recyclable
bin,
a
biodegradable
bin
or
a
residual
bin.
Recyclables
are
sorted
by
scrap
buyers
and
brought
to
scrap
buying
stations.
Leftover
food
from
the
biodegradable
bin
are
collected
and
fed
to
livestock.
The
remaining
solid
waste
is
dumped
at
the
city
dumpsite.
All
of
the
hotel’s
wastewater
is
treated
in
a
sewage
treatment
plant,
sent
to
a
sewage
ejector
pit
and
sent
to
the
city
drainage
system.
Other
specific
environmental
efforts
done
by
the
technical
department
are
enumerated
in
Appendix
F.
•
Security
Department
The
security
department
is
in
charge
in
making
sure
that
the
environmental
measures
are
being
carried
out
correctly.
It
mainly
controls
and
double‐checks
the
garbage
and
if
segregation
actions
are
carried
out
right.
For
safety
purposes,
it
also
checks
proper
handling
of
chemicals
during
delivery
before
it
is
allowed
in
the
hotel
premises.
Furthermore,
it
works
together
with
the
technical
department
by
monitoring
if
the
measures
put
in
place
is
properly
followed
and
executed.
56
•
Housekeeping
Department
The
Housekeeping
department
mainly
implements
the
waste
segregation
efforts
of
the
hotel,
which
is
in
compliance
with
local
legislation.
Together
with
the
HR
department,
it
presently
runs
an
information
campaign
and
training
on
waste
segregation
for
associates.
In
compliance
to
the
legislation
on
non‐use
of
plastics,
bio
bags
are
being
used
for
laundry
bags.
Other
specific
environmental
efforts
done
by
the
housekeeping
department
are
enumerated
in
Appendix
G.
57
5. Findings
&
Analysis
The
purpose
of
this
research
is
to
suggest
a
competitive
environmental
strategy
that
Marco
Polo
Davao
can
employ
in
its
operations
by
examining
the
different
factors
and
actors
that
influence
the
department
managers’
suggestions
and
the
general
manager’s
decisions
on
environmental
strategies.
In
chapter
2,
the
different
competitive
environmental
strategies
that
companies
may
adopt
in
its
operations
were
investigated.
Individual
manager
interviews
were
chosen
as
the
method
of
collecting
data
in
order
to
have
a
background
on
the
current
business
conditions
and
the
hotel’s
current
environmental
efforts
as
discussed
in
chapter
4.
More
importantly,
the
interviews
provided
data
on
the
managers’
perceptions
on
the
different
factors
and
actors
that
influence
their
suggestions
and
decisions
on
environmental
management.
Supplier
interviews
and
employees
and
customers
surveys
were
likewise
done
to
discern
their
views
and
opinions
on
environmental
management,
are
deemed
helpful
in
suggesting
a
strategy
for
the
company.
This
chapter
presents
the
results
of
the
managers’
interviews,
structured
according
to
the
research
sub‐questions.
This
is
followed
by
the
results
and
analysis
of
data
collected
from
suppliers’
interviews
and
employees
and
customers’
surveys.
A
presentation
of
the
recommendations
derived
from
the
data
collection
process
on
the
four
action
areas
on
environmental
management
concludes
the
chapter.
5.1 Interviews
with
Managers
The
managers
were
the
main
focus
of
the
interviews.
The
department
managers
are
the
decision
makers
in
their
own
units.
Their
suggestions
have
an
impact
on
the
general
manager’s
strategic
decisions.
In
turn,
how
they
make
their
suggestions
and
decisions
are
influenced
by
different
factors
and
actors
specifically,
the
suppliers,
the
employees
and
the
market,
as
represented
by
the
customers.
58
5.1.1 Managers’
role
on
environmental
management
As
earlier
stated,
there
is
a
positive
relationship
between
management’s
perceptions
on
environmental
management
and
the
adoption
of
proactive
environmental
strategies
(Lopez‐
Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
The
interviews
commenced
with
an
investigation
on
the
managers’
familiarity
with
environmental
management.
Eleven
out
of
the
15
managers
who
were
interviewed
claimed
that
they
are
familiar
with
environmental
management
and
like
the
idea,
especially
that
the
hotel
already
has
environmental
measures
put
in
place.
Despite
their
perceived
familiarity
with
the
topic,
upon
further
discussions
with
the
managers,
it
was
ascertained
that
most
of
them
only
had
a
general
familiarity
with
the
topic
and
did
not
understand
it
fully.
Inferred
from
the
common
response
that
they
are
not
experts
on
the
field,
more
education
is
needed
and
that
there
is
no
clear
system
at
the
moment.
The
department
managers
pointed
out
that
they
are
willing
to
be
engaged
and
suggested
actions
for
environmental
issues
faced
by
their
departments.
The
general
manager
argued
that
for
the
hotel
to
be
successful
in
its
environmental
efforts,
all
departments
must
be
involved.
This
means
the
general
manager
will
consider
the
suggestions
of
the
department
managers
in
making
environmental
decisions.
The
generally
positive
view
on
environmental
management
by
the
majority
of
the
managers
indicate
that
Marco
Polo
Davao
may
potentially
draw
on
environmental
issues
as
a
platform
to
gain
competitive
advantages.
5.1.2 Factors’
influence
on
managers’
decisions
in
the
choice
of
an
environmental
strategy
o Environmental
Legislation
As
earlier
pointed
out,
a
positive
view
on
environmental
legislation
facilitates
the
firm’s
exploitation
of
environmental
management
as
an
opportunity
(Lopez‐Gamero,
Molina‐
Azorin,
&
Claver‐Cortes,
2010).
The
hotel
is
doing
its
best
to
make
ends
meet
and
comply
within
the
soonest
possible
time,
despite
complaints
from
some
managers
regarding
the
implementation
procedures
of
government
agencies
on
environmental
laws.
The
general
manager
pointed
out
that
there
59
should
be
a
transition
time
given
for
the
hotel
to
make
plans
for
its
inventory
and
integrate
the
requirements
of
the
new
legislation
into
the
budget.
Most
managers
maintained
that
they
are
not
bothered
by
the
possibility
that
stringent
government
standards
may
hinder
the
hotel’s
competitiveness.
They
prefer
standards
to
be
put
in
place,
as
long
as
information
is
widely
disseminated
and
the
implementing
are,
in
consideration
to
the
needs
of
the
business.
The
findings
show
that
environmental
legislation
directly
influences
the
managers’
suggestions
and
decisions
in
selecting
an
environmental
strategy.
o Resources
and
capabilities
Resources
As
earlier
cited,
the
availability
of
resources
are
said
to
influence
the
managers’
perception
of
environmental
responsibility
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐Cortes,
2010).
In
the
conduct
of
the
interviews,
the
managers
were
asked
if
high
costs
involved
in
environmental
management
is
a
barrier.
The
majority
or
67%
agree
that
it
is,
while
16.5%
think
it
is
only
a
secondary
barrier
and
the
remaining
16.5%
think
that
it
is
not
a
barrier
at
all.
For
Marco
Polo
Davao,
resources
for
environmental
management
are
available
but
limited.
There
is
willingness
among
managers,
especially
the
financial
controller
and
the
owners
to
allocate
budgets
for
environmental
management
and
environmental
technologies.
However,
the
capacity
for
allocation
is
limited,
especially
in
terms
of
investing
in
new
environmental
technologies.
The
managers
pointed
out
other
priority
areas
for
improvement,
such
as
maintaining
or
expanding
the
current
market
share
in
the
midst
of
the
entry
of
new
competitors.
Most
managers
suggest
that
the
resources
be
initially
allocated
for
developing
an
environmental
management
system
and
for
the
full
implementation
of
environmental
efforts
and
technologies
already
being
done.
Furthermore,
they
suggested
that
allocations
for
new
environmental
technologies
shall
only
be
done
if
the
technological
costs
and
return
on
investments
is
more
reasonable
than
the
current
rate.
60
Generally,
the
managers
are
of
the
view
that
Marco
Polo
Davao’s
environmental
efforts
are
limited
due
to
resource
constraints.
This
leads
to
the
inevitable
conclusion
that
resources
directly
influence
the
manager’s
suggestions
and
decisions
in
selecting
an
environmental
strategy.
Capabilities
The
firms’
capabilities
in
terms
of
experience
make
the
process
of
adopting
an
environmental
management
program
in
a
more
efficient
manner
(Lopez‐Gamero,
Molina‐
Azorin,
&
Claver‐Cortes,
2010).
Despite
the
familiarity
with
environmental
management,
it
was
uncovered
that
most
of
the
managers
do
not
understand
the
concept
fully.
Another
common
response
was
the
claim
that
they
are
not
experts
on
the
field;
thus
a
clear
system
and
more
education
and
experience
are
needed
for
them
to
fully
understand
the
concept,
to
show
the
way
to
a
more
efficient
planning
and
implementation
process.
The
findings
imply
that
environmental
capabilities
are
highly
influential
in
the
managers’
suggestions
and
decisions
in
selecting
a
strategy.
o Facilitators/Opportunities
Studies
have
shown
that
implementing
environmental
practices
brings
many
benefits
for
a
hotel.
Perceived
benefits
that
bring
in
competitive
advantage
include
improvements
of
company
image,
delivery
of
specific
service,
cost
savings
in
the
medium/long
term,
better
relationship
with
public
authorities,
increasing
staff
motivation
and
compliance
with
legal
requirements
(Ayuso,
2006).
All
the
managers
are
in
agreement
that
implementing
environmental
efforts
will
bring
in
competitive
advantage
to
the
company,
enhance
the
corporate
image,
reduce
cost
and
improve
product
quality
and
services.
The
managers
are
indeed
conscious
of
the
need
to
maintain
the
hotel’s
brand
reputation
and
how
it
is
regarded
in
the
market
as
an
“icon”
and
a
standard
in
business
in
Davao.
The
following
are
the
facilitators
the
managers
regard
as
the
focal
reasons
that
prompted
the
hotel
to
implement
environmental
efforts:
government
and
managing
company
requirements,
cost
reduction,
better
corporate
image,
public
recognition
and
preserving
a
61
healthier
environment.
These
opportunities
are
considered
to
have
direct
influence
on
the
managers’
suggestions
and
decisions
in
selecting
a
competitive
environmental
strategy.
Some
managers
regard
the
factors
such
as
suppliers,
employees,
customers
and
investors
as
only
secondary,
with
strong
supplier
ties
coming
in
as
the
strongest
factor
among
the
four.
On
the
other
hand,
only
a
few
managers
think
that
employees
are
interested.
The
managers
do
not
regard
it
though
as
a
facilitator
and
a
competitive
advantage
that
environmental
management
can
bring.
The
findings
agree
with
theory,
which
states
that,
perceived
facilitators
in
implementing
an
environmental
program
include
cost
reduction,
revenue
improvement,
stronger
supplier
ties,
quality
improvement
and
a
healthier
environment
(Nidumolu,
Prahalad,
&
Rangaswami,
2009).
Facilitators/Opportunities
Yes
Only
No
secondary
Required by government or managing 100%
0
0
company
Cost reduction
100%
0
0
Revenue improvement
33.33%
58.33%
8.33%
Competitive advantage
100%
0
0
Stronger supplier ties
75%
8.33%
16.67%
Better quality of products & services
91.67%
0
8.33%
Performance & quality improvement
75%
0
25%
Better corporate image
100%
0
0
Public Recognition
100%
0
0
Healthier environment
100%
0
0
Pressure of customers
0
33.33%
66.67%
Employee interests
33.33%
25%
41.67%
Investors’ demand
66.67%
16.67%
16.67%
Table
2:
Survey
results
for
facilitators
in
implementing
an
environmental
management
program
62
o Barriers/Challenges
Six
barriers
were
presented
to
the
managers.
In
theory,
cost
is
pointed
out
to
be
the
main
barrier
in
implementing
an
environmental
program
(Lopez‐Gamero,
Molina‐Azorin,
&
Claver‐
Cortes,
2010).
Also,
in
some
businesses,
lack
of
information
is
treated
as
a
barrier,
as
well
as
resistance
to
change
(Shrivastava,
1995).
These
are
all
confirmed
by
the
results
of
the
manager’s
survey
on
barriers.
The
results
demonstrate
that
the
main
barrier
to
implementing
environmental
efforts,
wherein
80%
of
managers
agreed,
is
high
investment
costs.
This
is
followed
by
resistance
to
change,
which
garnered
a
58.33%
response.
There
are
disparities
in
the
responses
in
terms
of
the
environmental
efforts
not
meeting
short
term
goals,
which
garnered
a
50‐50
score
and
having
no
idea
on
what
to
do,
which
garnered
about
the
same
score
as
well.
Absence
of
knowledge
or
not
knowing
what
to
do
likewise
proved
to
be
a
main
barrier
and
issues
on
environmental
legislation
were
also
raised.
The
managers’
comments
agree
with
theory
to
wit:
that
legislation
is
usually
unclear
and
unfocused.
High
costs
and
a
lack
of
knowledge
and
capabilities
have
a
direct
influence
on
the
managers’
suggestions
and
decisions
while
the
challenge
of
exerting
much
effort
in
implementing
an
environmental
management
program
only
has
a
minimal
influence.
Barriers/Challenges
Yes
Only
No
Secondary
High investment costs
80%
16.67%
16.67%
Does not meet short term goals
50%
0
50%
8.33%
50%
0
41.67%
25%
50%
0
91.67%
No idea on what environmental efforts 41.67%
to do
Resistance to change
58.33%
Too much effort in implementing a 25%
program
It makes the company less competitive
8.33%
Table
3:
Survey
results
for
barriers
in
implementing
an
environmental
management
program
63
5.1.3 Actors/Stakeholders’
influence
on
managers’
decisions
in
the
choice
of
an
environmental
strategy
The
following
section
presents
the
manager’s
perceptions
on
the
importance
of
the
three
groups
of
stakeholders,
namely:
the
employees,
the
suppliers
and
the
customers
in
terms
of
influencing
decisions
in
choosing
an
environmental
strategy.
o Employees
The
employees
are
considered
to
be
the
main
players
of
environmental
sustainability
in
the
hotel
and
their
interest
thereon
is
relevant
for
they
make
the
investments
productive
(Block,
1998).
Among
the
15
managers
interviewed,
only
33%
believe
that
employees’
interests
play
a
vital
role
in
making
decisions
regarding
the
company’s
environmental
management
program.
Most
of
the
respondents
(41.67%)
said
that
employees’
interests
do
not
facilitate
their
decisions
on
environmental
management
and
another
25%
claimed
that
it
is
only
a
secondary
facilitator,
meaning
it
is
considered
only
after
the
more
important
facilitators
such
as
costs
and
other
factors
are
taken
into
account.
The
managers
do
not
regard
employees’
interests
as
an
opportunity
and
a
competitive
advantage
that
environmental
management
can
bring.
The
findings
from
the
managers’
point
of
view
do
not
agree
with
theory
thus
implying
that
employees’
view
barely
influences
the
decisions
of
management
in
selecting
an
environmental
strategy.
o Suppliers
All
the
managers
who
dealt
with
suppliers
claimed
they
have
strict
standards
to
make
certain
that
delivered
provisions
conforms
to
the
hotel’s
established
standards
for
health,
hygiene
and
safety.
They
put
emphasis
on
random
inspection
and
examination
on
suppliers’
products,
working
facilities
and
even
the
hygiene
of
suppliers’
employees.
The
hotel
requires
them
to
be
compliant
with
the
established
standards,
including
mandatory
attendance
to
seminars
conducted
by
the
hotel’s
consultant
in
hygienic
standards,
the
Ecolab.
It
is
also
worthy
of
note
that
the
hotel
recently
cut
ties
with
two
local
food
suppliers
who
failed
to
pass
hygienic
standards
64
The
hotel
deals
with
suppliers
by
setting
performance
standards
and
goals,
which
embodies
a
forced
compliance
strategy
rather
than
a
collaborative
strategy.
The
managers
agree
that
this
is
an
effective
approach
to
ensure
compliance
by
suppliers
with
the
announced
standards.
The
importance
of
having
stronger
supplier
ties
is
considered
by
75%
of
the
managers
as
an
important,
if
not
a
crucial,
facilitator
in
arriving
at
decisions
regarding
the
hotel’s
environmental
efforts.
o Customers
None
of
the
managers
regard
the
pressure
of
customers
as
a
key
facilitator
in
making
decisions
for
the
hotel’s
environmental
management
program.
A
few
managers
however,
said
that
they
could
make
out
from
the
guests
some
degree
of
interest
in
green
efforts.
But
most
managers
assume
that
the
market
is
generally
not
interested
in
green
efforts.
The
managers’
perceptions
of
the
customers’
apparent
non‐interest
in
green
efforts
do
not
agree
with
the
resultant
theory
from
US
surveys
that
majority
of
customers
prefer
green
hotels
(Euromonitor
International,
2012).
Therefore,
the
managers
do
not
regard
customer
pressure
as
a
factor.
Although
to
some
extent,
they
consider
customers
as
actors
that
influence
their
environmental
management
suggestions
and
decisions.
5.2 Supplier
interviews
Supplier
interviews
were
conducted
in
order
to
know
the
extent
of
their
contribution,
if
any,
towards
the
green
efforts
and
to
appreciate
their
willingness
to
cooperate
and
comply
with
the
hotel’s
environmental
standards.
This
may
aid
management
in
determining
what
direction
to
take
in
terms
of
integrating
the
suppliers’
behavior
with
its
environmental
management
program.
The
suppliers’
responses
may
also
provide
a
basis
for
the
selection
of
a
competitive
environmental
strategy.
Interviewed
were
four
hotel
suppliers
of
meat,
ice,
water
and
fruits
&
vegetables.
The
focal
point
of
the
inquiry
is
their
contribution,
if
any,
on
environmental
efforts
in
their
own
companies.
The
meat
supply
company
is
based
in
Cebu,
the
Philippines’
second
largest
city
that
is
an
hour’s
plane
trip
to
the
north.
The
supplier‐interviewee
owns
the
company
named
Gabriel
Food
Corporation,
which
supplies
meat
and
breakfast
items
to
different
clients
around
the
65
country.
His
company
adheres
to
the
rules
on
Good
Manufacturing
Practices
(GMP)
and
its
cold
storage
facility
aligns
its
operations
with
ISO
measures.
The
other
three
suppliers
are
locally
based
in
Davao.
All
of
them
are
compliant
with
local
legislation
requirements
of
waste
segregation
and
are
doing
their
best
to
fully
comply
with
the
non‐use
of
plastics
in
their
operations.
The
first
local
supplier
interviewed
was
a
representative
of
the
hotel’s
ice
supplier.
He
confessed
that
they
have
no
specific
environmental
management
program
in
their
company
although
they
use
the
latest
inverter
technologies
for
their
freezers
to
save
on
energy
consumption.
Recently,
they
renovated
their
work
premises
and
reconfigured
their
plant
to
allow
the
entry
of
natural
light
and
insulation
sheets
were
used
in
ceilings
to
reduce
heat.
They
use
thermoplastics
for
delivery
of
the
supplies.
The
interview
of
the
hotel’s
local
supplier
of
purified
drinking
water
followed.
The
supplier‐
interviewee
was
the
Production
and
Quality
Controller
of
the
company
named
Waterman
Davao.
The
company
supplies
5‐gallon
bottles
and
individual
PET
bottles.
They
currently
use
non‐biodegradable
plastics
for
its
water
containers
but
are
in
contact
with
suppliers
of
biodegradable
containers
to
eventually
implement
the
use
of
biodegradable
plastics.
The
by‐product
from
its
production
is
water
with
ions
and
salts,
which
is
drained
directly
to
the
public
drainage
and
sewage
system.
But
they
plan
to
recycle
water
to
be
used
for
laundry
and
washing.
In
fact,
they
have
ordered,
and
are
awaiting
delivery
of,
a
water
tank
for
storage
of
production
wastewater
and
the
eventual
utilization
and
recycling
thereof.
The
company
follows
GMP
(Good
Manufacturing
Practices)
Standards,
complies
with
BFAD
(Bureau
of
Food
&
Drugs),
City
Health
Office
and
DOH
(Department
of
Health)
requirements.
They
maintain
high
quality
standards
to
be
able
to
keep
their
license
to
operate
and
product
registration
number.
The
last
local
supplier
(of
fruits
and
vegetables)
interviewed
were
two
representatives
from
Eden
Corporation,
a
company
engaged
in
trading
fruits
and
vegetables.
Environmental
measures
being
undertaken
are
the
use
of
a
compost
pit
for
organic
fertilizer
production,
the
operation
of
hydroponic
water
pumps
to
save
water,
the
utilization
of
reusable
plastic
crates
and
the
employment
of
an
automatic
temperature
controller
for
its
cold
storage.
66
The
results
of,
and
the
outcome
of
the
suppliers’
interviews
show
that
they
do
not
have
a
functioning
environmental
management
program
in
their
companies.
Apparently,
the
suppliers
are
exerting
their
best
effort
to
be
efficient
in
their
business
operations,
involving
to
a
lesser
extent
some
degree
of
environmental
efforts.
Other
than
the
efforts
mentioned
in
the
findings
from
supplier
interviews,
they
confessed
that
they
have
no
other
specific
environmental
measures
put
in
place.
As
a
saving
grace
however,
they
acknowledged
their
willingness
to
comply
with
whatever
requirements
imposed
by
the
hotel
for
business
transactions
to
be
more
environmentally
friendly.
5.3 Employees’
survey
Hotel
employees
play
a
vital
role
for
the
success
of
an
environmental
program
since
they
deliver
the
services
and
make
the
efforts
happen
(Block,
1998).
The
employees’
surveys
were
conducted
to
have
a
glimpse
of
the
employees’
interest
in
green
efforts.
This
is
used
to
show
whether
the
managers’
perceptions
on
employees’
interests
are
at
par
with
reality,
as
represented
by
the
survey
sample.
At
random,
employees
were
selected
and
were
asked
to
respond
to
a
short
questionnaire
concerning
the
green
efforts
of
the
hotel.
There
were
seventy‐five
(75)
respondents.
The
questionnaire
comprised
of
5
questions.
The
first
query
is
about
the
job
title
of
the
employee.
The
second
question
is
whether
the
hotel
has
any
environmental
efforts.
The
third
question
is
whether
the
employee
performs
any
environmentally
friendly
efforts.
If
the
answer
is
yes,
then
respondent
is
asked
if
he/she
performs
or
executes
any
energy
saving
measures,
waste
reduction
measures,
water
conservation
measures,
recycling
or
others
(asked
to
specify).
The
fourth
question
is
whether
he/she
wants
the
hotel
to
have
more
environmentally
friendly
rules.
The
last
question
is
if
the
employee
is
willing
to
undergo
training
programs
for
the
hotel
to
attain
a
successful
environmental
management
program.
Survey Questions
Response rate
The hotel has environmental efforts
100%
I perform environmental efforts at work
98.67%
I perform energy saving measures
94.59%
I perform waste reduction measures
85.14%
67
I perform water conservation measures
81.08%
I recycle
70.27%
I perform other environmental measures
5.4%
I am willing to undergo an environmental training program
98.67%
Table
4:
Employees’
Survey
results
Thirty‐seven
of
the
respondents
answered
yes
to
all
the
questions
and
checked
all
four
environmental
measures
mentioned.
Four
more
had
the
same
response
but
also
specified
other
efforts
with
3
of
the
4,
citing
garbage
segregation
and
the
fourth
(a
waiter/food
server)
citing
proper
inspection
to
avoid
breakages.
Fourteen
respondents
answered
yes
to
all
questions
and
checked
all
environmental
measures
except
recycling.
Five
did
the
same
except
for
waste
reduction
and
another
five
gave
the
same
answer
except
for
reducing
waste.
Two
answered
yes
to
all
except
water
saving.
Eleven
answered
yes
to
all
plus
one
or
two
efforts,
with
water
conservation
as
the
only
effort
they
have
not
done.
One
respondent
said
that
he/she
has
not
done
any
environmental
efforts
and
another
asserts
he/she
is
not
willing
to
undergo
training
for
the
hotel
to
achieve
a
successful
environmental
program.
From
the
results
of
the
employees’
questionnaire,
it
can
be
inferred
that
they
are
generally
aware
about
the
green
efforts.
There
are
some
discrepancies
in
the
consistency
of
how
they
do
certain
environmental
efforts.
This
shows
an
area
that
can
be
developed.
The
results
demonstrate
the
elevated
willingness
among
the
employees
to
learn
about
environmental
management
and
contribute
to
the
success
of
the
hotel’s
environmental
program.
Moreover,
the
results
are
in
contrast
to
the
managers’
perceptions
on
employees’
interests
and
the
weight
of
its
influence
in
selecting
an
environmental
strategy.
5.4 Customers’
survey
A
business
operates
for
profit
thus
it
is
essential
to
fulfill
the
demands
of
the
customers
to
satisfy
them
and
continue
patronizing
the
hotel.
Studies
have
shown
that
there
has
been
a
growing
demand
worldwide
for
green
hotels
(Euromonitor
International,
2012).
The
customer’s
surveys
were
conducted
to
know
if
guests
of
the
hotel
are
interested
in
68
environmentally
friendly
atmosphere.
The
results
are
then
measured
against
the
managers’
perceptions
that
the
market
of
the
hotel
is
ignorant
about,
and
are
disinterested
in
a
green
hotel.
The
surveys
were
done
by
randomly
giving
out
customer
questionnaires
to
hotel
guests,
and
other
Philippine
tourists
at
a
Philippine
immigration
office.
Hotel
staff
and
immigration
staff
distributed
the
questionnaires
to
the
respondents.
One
hundred
fifty
(150)
surveys
were
distributed
and
one
hundred
eighteen
(118)
surveys
were
collected
and
considered
valid.
There
were
90
local
respondents
and
28
foreign
respondents.
The
results
from
both
tourist
groups
reveal
that
foreign
tourists
are
more
informed
about
environmentally
friendly
hotels
than
local
tourists.
However,
despite
the
disparity
in
awareness,
there
is
high
interest
ion
the
subject
in
both
groups.
Only
a
negligible
number
of
the
respondents
said
they
were
not
interested
in
staying
at
an
environmentally
friendly
hotel.
I
have
heard
of
an
environmentally
friendly
hotel
I
am
interested
in
staying
at
a
green
hotel
7%
34%
66%
Yes
Yes
93%
No
No
Figure
6:
Familiarity
with
an
environmentally
friendly
hotel
Figure
7:
Interest
in
staying
at
a
green
hotel
Almost
all
foreign
tourist‐respondents
have
experienced
staying
at
an
environmentally
friendly
hotel,
as
opposed
to
local
tourists
where
only
40%
said
they
have
stayed
in
an
environmentally
friendly
hotel.
For
both
groups,
majority
of
the
respondents
who
have
69
previously
stayed
in
an
environmentally
friendly
hotel
said
that
they
enjoyed
their
stay.
Most
of
the
foreign
tourists
(82%)
said
they
paid
more
for
their
stay
at
an
environmentally
friendly
hotel
while
only
about
half
of
said
percentage,
consisting
of
Philippine
tourists,
said
they
paid
more
for
it.
There
is
a
high
positive
response
rate
for
both
groups
when
asked
if
they
were
willing
to
stay
or
stay
again
in
an
environmentally
friendly
hotel.
Taking
the
results
together,
it
can
be
gleaned
that
majority
of
the
respondents
were
willing
to
pay
3%
more.
A
significant
number
also
said
they
were
willing
to
pay
more
than
3%.
This
is
followed
by
a
group
not
willing
to
pay
more,
which
is
composed
of
local
tourists.
The
survey
shows
that
the
market,
as
represented
by
the
sample
is
indeed
interested
in
green
hotels,
as
opposed
to
what
the
managers
think.
The
following
tables
each
summarize
the
results
for
local
and
foreign
tourists
in
the
Philippines.
LOCAL TOURISTS
Respondents
Yes
No
Have you heard of an environmentally friendly
90
56.67%
43.33%
87
91.95%
8.05%
82
40.24%
59.76%
- Did you like your stay?
33
90.91%
9.09%
- Did you pay more for it?
30
40%
60%
Will you stay/stay again in an environmentally
82
95.12%
4.87%
hotel?
Are you interested in staying at an environmentally
friendly hotel?
Have you stayed in an environmentally friendly
hotel?
friendly hotel?
How much will you be willing to pay for it?
78
+3%
3%
2%
1%
0
24.35%
25.64%
14.10%
15.38%
20.51%
Table
5:
Customer
survey
results
for
local
Philippine
tourists
70
FOREIGN TOURISTS
Respondents
Yes
No
Have you heard of an environmentally friendly
28
92.86%
7.14%
an
28
92.86%
7.14%
Have you stayed in an environmentally friendly
26
92.31%
7.69%
- Did you like your stay?
23
100%
0
- Did you pay more for it?
22
81.82%
18.18%
Will you stay/stay again in an environmentally
26
100%
0
hotel?
Are
you
interested
in
staying
at
environmentally friendly hotel?
hotel?
friendly hotel?
How much will you be willing to pay for it?
26
+3%
3%
2%
1%
0
15.38%
53.85%
7.69%
7.69%
15.38%
Table
6:
Customer
survey
results
for
foreign
Philippine
tourists
5.5 Recommendations
on
Action
Areas
In
having
an
environmental
management
program
for
a
hotel,
all
the
departments
should
be
involved
in
planning
and
implementing
the
efforts.
But
there
is
no
single
guideline
for
all
the
departments
to
follow.
In
hotels,
the
different
departments
have
necessarily
different
functions,
thus
the
environmental
impacts
are
not
the
same
for
each.
It
then
follows
that
each
of
the
departments,
especially
the
managers,
have
different
needs,
opportunities
and
challenges
in
terms
of
sustainability.
The
department
managers’
perceptions
on
the
factors
and
actors
are
reflected
on
their
suggestions
for
the
four
action
areas.
The
common
theme
arising
from
the
department
managers’
suggestions
on
the
action
areas
help
the
general
manager
decide
what
strategy
is
best
considering
the
recommendations
for
the
said
action
areas.
71
The
following
section
enumerates
the
recommendations
on
the
action
areas
to
be
addressed
by
the
hotel
discussed
in
Chapter
2.
The
recommendations
are
mainly
derived
from
the
results
of
the
data
gathering
process
and
from
the
results
of
the
interviews
with
the
managers.
o Developing
its
green
management
program
The
managers
admit
that
there
is
no
clear
strategy
and
system
in
terms
of
its
environmental
efforts.
A
clear
system
designed
in
accordance
with
the
hotel’s
needs,
may
be
developed.
Having
a
hotel‐wide
information
campaign
on
sustainability
and
environmental
management
can
be
implemented
in
order
for
everyone
in
the
hotel
to
fully
grasp
the
meaning
of
sustainability
and
what
it
takes
to
be
successful
in
implementing
an
environmental
management
program.
The
Green
Team
concept,
which
focuses
on
training
and
pooling
staff
and
managers
who
will
be
responsible
for
the
firm’s
environmental
management
program
(Scanlon,
2007)
may
be
adopted
by
Marco
Polo
Davao.
A
green
team
composed
of
different
managers
and
associates
from
different
departments
may
then
be
formed
to
assume
responsibility
of
planning,
implementing
and
monitoring
the
hotel’s
green
efforts,
in
accordance
with
the
chosen
strategy.
The
green
team
can
have
planning
sessions
with
the
different
departments
to
address
the
possible
areas
of
improvement
within
the
respective
departments
in
terms
of
enhanced
environmental
performance.
In
case
of
difficulty
in
starting
the
program,
the
hotel
may
seek
help
from
consultants
on,
or
experts
in
environmental
efforts.
Currently,
the
hotel
has
a
partnership
with
Ecolab
for
its
food
safety
measures
and,
as
indicated
by
its
website,
Ecolab
is
a
consultant
for
green
management
implementation.
According
to
the
result
of
customer
survey,
almost
half
of
the
local
tourist
have
not
heard
of
an
environmentally
friendly
hotel
but
interested,
when
made
to
understand
what
it
is.
In
addition,
more
than
half
of
the
local
tourists
and
almost
all
foreign
tourists,
who
responded,
are
familiar
with
environmentally
friendly
hotels.
This
is
contrary
to
the
managers’
perception
that
there
is
an
ignorant
market.
The
survey
results
also
show
a
high
interest
in
environmentally
friendly
hotels
among
its
current
and
prospective
guests.
Not
only
that,
most
of
the
respondents
are
also
willing
to
pay
more
for
it.
Thus
the
sales
and
marketing
72
team
may
take
this
opportunity
to
promote
the
hotel’s
green
efforts,
by
effective
integration
into
its
marketing
campaigns.
The
human
resources
department
may
integrate
the
idea
of
being
environmentally
responsible
in
its
training
programs,
as
recommended
by
the
current
HR
manager.
Aside
from
the
current
information
and
training
program
formats,
the
department
may
implement
environmentally
responsible
social
outreach
programs,
to
be
participated
in
by
the
employees.
These
programs
are
not
only
educational
but
socially
responsible
as
well
and
can
enhance
the
hotel’s
CSR
performance.
Lastly,
since
the
high
costs
of
having
a
sustainability
program
in
place
is
considered
as
the
main
barrier,
the
green
team
may
work
with
the
finance
department
to
secure
sufficient
budget
for
environmental
efforts.
This
will
make
sure
that
investments
made
in
sustainability
will
be
reasonable
and
its
performance
and
returns
will
be
well
supervised.
o Energy
efficiency
The
technical
department
principally
deals
with
actions
on
energy
efficiency.
However,
to
be
successful,
cooperation
with
all
other
departments
is
necessary.
The
green
team
may
help
the
technical
department
by
encouraging
all
concerned
in
every
department
contribute
ideas
on
energy
efficiency.
Continuous
and
regular
research
on
the
possibilities
in
energy
efficiency
and
the
keen
supervision
of
its
costs
and
returns
is
suggested.
It
is
further
suggested
that
Marco
Polo
Davao
fully
implements
its
current
program
and
efforts
in
energy
efficiency,
like
the
hotel’s
program
of
replacing
all
light
bulbs
into
energy‐
efficient
ones.
Other
possibilities
and
recommendations
may
then
be
considered.
According
to
the
technical
manager,
there
are
current
plans
of
eventually
re‐processing
used
cooking
oil
into
bio‐fuel
for
the
boilers
which,
blended
with
diesel
fuel,
will
optimize
combustion
expecting
a
reduction
of
24
liters
in
diesel
fuel
per
day
and
installing
solar
panels
for
the
hotel’s
water
heating
system.
There
are
also
energy
efficiency
efforts
that
were
voiced
out
by
the
different
managers
from
different
departments.
They
suggested
that
energy
efficiency
efforts
be
implemented
and
should
be
monitored,
possibly
supervised
by
the
green
team.
Examples
of
the
energy‐saving
efforts
include
improved
monitoring
of
73
equipment
in
the
boiler
rooms,
exhaust
systems
and
generators.
Also
recommended
is
the
adoption
of
better
systems
such
as
the
use
of
automatic
doors
especially
for
pantry
doors.
One
example
of
an
operational
energy‐efficiency
recommendation
is
the
strict
maintenance
of
proper
temperature
of
the
fridge,
which,
according
to
the
restaurant
manager,
is,
checked
only
when
auditors
would
pay
a
visit.
o Reduction
of
waste
and
resource
use
management
The
segregation
and
recycling
program
of
the
hotel
currently
addresses
the
concern
of
reduction
of
waste
and
resource
use.
The
segregation
program
is
generally
doing
well
but
it
can
be
extended
to
all
areas
of
the
hotel,
including
offices.
One
manager
admitted
that
segregation
is
not
implemented
in
his
office
because
of
minimal
waste
materials.
This
is
one
area
for
improvement
to
ensure
consistency
in
the
implementation
of
environmental
policies
all
throughout
the
property.
During
the
interviews,
the
managers
pointed
out
some
of
their
ideas
in
terms
of
waste
reduction
and
resource
improvement.
•
Use
water‐based
pesticide
•
Use
carpet
shampoo
with
less
harmful
cleaners
•
Select
dishwashing
liquids
that
have
less
harmful
chemicals
but
are
as
effective
•
No
printing
of
food
labels
in
the
banquet
•
No
paper
for
signage
•
Use
boxes
as
take
out
containers
•
Reduced
chemicals
in
soap
•
Implement
more
green
designs
especially
in
open
spaces
o Sustainable
supply
chain
management
Both
the
management
and
suppliers
are
willing
to
do
their
part
in
order
to
have
more
sustainable
business
transactions.
Inconsistencies
in
policies
for
suppliers
were
uncovered
during
the
interviews.
It
is
suggested
that
a
review
be
done
to
address
the
inconsistencies.
Environmental
requirements
can
be
integrated
in
its
policies
with
suppliers.
This
will
eventually
help
achieve
a
green
supply
chain.
The
purchasing
department
may
continue
74
searching
for
new
suppliers
to
widen
its
choices,
giving
preference
to
those
who
offer
greener
products.
As
for
its
current
suppliers,
Marco
Polo
Davao
can
encourage
them
to
adopt
sustainable
measures
in
their
own
businesses
and
to
supply
only
environmentally
responsible
products.
75
6. Discussion
The
interviews
conducted
with
the
managers
and
the
suppliers
and
the
questionnaire
answered
by
the
managers,
the
customers
and
the
employees
are
all
relevant
for
Marco
Polo
because
they
provide
a
window
showing
how
the
different
stakeholders
of
the
hotel
think
about
environmental
management.
Knowing
their
views
and
opinions
gives
an
overview
of
the
current
situation
as
is
and
provides
knowledge
on
how
the
factors
and
actors
influence
the
managers’
perceptions.
The
data
gathering
process
also
helped
point
out
if
the
results
are
congruent
with
the
theory.
The
managers’
views
are
considered
to
be
the
most
important
since
they
make
suggestions
and
decisions
on
environmental
management.
The
views
of
employees,
suppliers
and
customers,
as
well
as
their
opinions,
are
relevant
once
compared
with,
and
measured
against
the
managers’
perceptions
on
how
the
actors
influence
their
decisions.
Any
similarities
or
differences
between
the
managers’
perceptions
and
the
stakeholders’
opinions
are
taken
into
consideration.
Using
both
theory
and
the
knowledge
on
actual
circumstances
gathered
from
the
interviews
and
surveys,
a
competitive
environmental
strategy
that
Marco
Polo
Davao
can
adopt
for
its
environmental
management
program
is
suggested.
This
study
focused
on
the
four
competitive
environmental
strategies
suggested
by
Orsato,
namely
are
eco‐efficiency,
beyond
compliance
leadership,
eco‐branding
and
environmental
cost
leadership.
The
influence
of
the
factors
and
actors
that
are
said
to
persuade
the
department
managers’
suggestions
and
the
general
manager’s
decisions
in
selecting
a
competitive
environmental
strategy
were
discussed
in
the
analysis.
The
following
section
attempts
to
match
the
findings
for
Marco
Polo
Davao
with
the
sets
of
combinations
of
the
state
of
actors
and
factors
for
the
selection
of
a
strategy
as
discussed
in
section
2.
As
can
be
seen
in
the
firm’s
operations,
it
can
be
said
that
it
is
doing
efforts
that
are
in
line
with
the
eco‐efficiency
strategy
such
as
reducing
resource
consumption,
energy
use
and
wastes,
having
a
sewage
treatment
plant
in
the
segregation
and
recycling.
There
are
however,
still
measures
that
need
to
be
streamlined
to
be
consistent
all
throughout
the
76
hotel.
Examples
are
the
segregation
process,
the
non‐use
of
plastics
and
the
completion
of
low‐energy
light
bulbs
replacement.
The
managers
do
not
only
have
a
positive
view
on
environmental
management
but
are
also
willing
to
gradually
adopt
measures
towards
moving
into
a
proactive
approach
on
environmental
management.
The
data
gathered
also
showed
a
willingness
among
suppliers
and
employees
to
cooperate
and
there
is
a
demand
from
customers.
These
indicators
show
that
the
firm
has
all
the
potential
and
capabilities
to
go
a
step
higher
than
eco‐efficiency
alone.
The
beyond
compliance
leadership
strategy
is
a
step
higher
than
eco‐efficiency
wherein
the
firm
seeks
to
be
acknowledged
in
their
efforts
for
the
environment.
(Orsato,
2006)
As
Forsyth
puts
it:
“Many
have
proposed
that
a
proactive
response
in
environmental
regulation
may
actually
result
in
environmental
regulation
plus
competitive
advantage
in
business.”
(Forsyth,
1997)
In
adopting
the
strategy,
management
puts
in
place
its
own
standards,
which
it
may
possibly
pattern
from
popular
environmental
management
programs
like
ISO.
Most
of
the
managers
believe
that
obtaining
certifications
like
ISO
and
HACCP
is
good
for
the
company
but
they
also
claim
that
resource
constraints
make
it
impractical
at
the
moment.
Marco
Polo
Davao
can
however,
start
taking
measures
that
are
in
accordance
with
accreditation
programs
like
ISO
or
employ
consultancy
services.
This
will
help
guide
the
management
on
what
to
do
to
for
its
environmental
management
program
and
will
also
make
the
hotel
ready
to
seek
for
accreditation,
at
the
opportune
time.
Going
beyond
compliance
will
not
only
require
costs
but
also
time
and
effort
from
the
management
side.
One
manager
pointed
out
actual
integration
in
the
budget
and
costs
will
not
be
a
problem
if
the
same
if
properly
planned
and
proposed
and
justified.
The
real
challenge
is
on
how
to
incorporate
the
program
into
the
whole
system
wherein
everyone
can
focus
on
their
respective
responsibilities,
not
singly
but
in
consortium
with
others
in
the
hotel.
This
will
also
help
solve
the
other
constraint
that
with
new
leadership,
there
are
always
new
rules.
The
Marco
Polo
Group
has
a
new
president
and
changes
in
the
corporate
framework
are
anticipated.
A
majority
of
the
managers
expressed
the
view
that
designing
a
77
clear
system,
strong
enough
to
weather
changes
in
leadership,
will
be
helpful,
especially
if
designed
to
be
a
long‐term
program.
Another
challenge
in
going
beyond
compliance
is
the
proposition
that
it
can
make
the
company
become
less
competitive
as
companies
who
do
not
go
beyond
compliance
will
not
bear
its
costs.
The
managers
however,
are
not
disturbed
by
this
possibility,
for
they
know
that
resources
are
available
to
be
used
as
investments
in
order
to
boost
the
hotel’s
competitive
advantage.
They
also
strongly
agree
that
to
be
the
first‐mover
and
to
invest
ahead
of
its
competitors
in
terms
of
environmentalism
will
help
the
hotel
maintain
its
market
share
and
improve
its
brand
reputation.
The
Director
of
Sales
and
Marketing
points
out
that
it
will
be
good
for
Sales
&
marketing
and
it
will
become
a
unique
selling
point
for
the
hotel.
Another
important
factor
in
going
beyond
compliance
is
the
greening
of
its
supply
chain.
At
the
moment,
there
are
no
green
policies
for
the
hotel
suppliers
to
follow.
The
independent
interview
with
the
managers
and
the
suppliers
show
that
both
are
willing
to
work
with
each
other
in
order
to
have
greener
business
transactions
and
businesses.
Actions
on
a
sustainable
supply
chain
may
be
integrated
as
soon
as
the
policies
for
an
environmental
management
program
are
laid.
The
two
other
strategies
of
eco‐branding
and
environmental
cost
leadership
require
abundant
financial
resources
to
finance
technology
investment
and
organizational
changes,
a
strong
know‐how
about
environmental
management
and
environmental
technologies
and
ideally
collaborations
with
suppliers
for
research
and
development.
Moreover,
both
strategies
must
match
current
market
demands.
The
managers
think
that
Eco‐branding
is
a
good
idea
but
are
skeptical
because
they
assume
that
it
is
unrealistic
at
the
moment.
As
one
manager
puts
it:
“It
is
better
to
promote
the
hotel
as
a
green
hotel.
However,
I
think
it
is
something
for
the
future.”
This
is
because
of
different
factors,
including
costs
and
incongruence
with
the
current
priorities
of
the
hotel.
Selling
the
whole
hotel
stay
as
green
is
not
a
priority
at
the
moment
and
there
are
no
immediate
plans
for
it.
Another
reason
for
this
is
that
green
products
like
organic
food
and
green
cleaning
agents
are
expensive
and
not
readily
available.
Moreover,
the
market
might
not
be
ready
for
it,
thus
creating
uncertainty
on
whether
selling
the
whole
experience,
as
78
green
will
work
or
not.
Since
abundant
resources
are
needed
to
be
successful
in
this
strategy
is
currently
a
challenge,
then
it
will
be
more
practical
for
the
organization
to
not
adopt
this
at
the
moment
but
have
the
vision
to
move
forward
and
include
it
in
the
company’s
long‐term
plans.
On
the
other
hand,
the
environmental
cost
leadership
strategy
is
something
that
is
currently
beyond
what
the
managers
think
is
doable
and
practical.
This
is
due
to
costs
and
a
requirement
of
having
a
strong
environmental
management
program,
which
in
itself
is
still
absent
in
the
hotel.
Technological
investments
in
particular
pose
to
be
a
challenge
right
now
because
of
the
current
market
conditions.
All
of
the
managers
like
the
idea
and
they
are
open
to
it
if
ROI
will
be
more
reasonable
because
as
of
the
moment,
the
current
studies
of
the
technical
department
show
that
the
ROI
in
installing
solar
panels
is
pegged
at
20
years,
which
is
too
long.
However,
the
strategy
is
recommended
for
consideration
in
the
Marco
Polo
Group’s
new
upcoming
properties.
Having
analyzed
both
theories
and
data
gathered
from
the
interviews
and
questionnaires,
it
is
suggested
that
the
general
manager
select
the
beyond
compliance
leadership
strategy
for
Marco
Polo
Davao’s
environmental
management
program.
79
7. Conclusion
There
has
been
a
surge
in
environmentalism
in
different
countries
all
around
the
world.
However,
the
developing
countries
lag
behind
the
performance
of
the
developed
nations.
Since
tourism
is
the
world’s
largest
industry
and
its
growth
is
currently
concentrated
in
developing
countries,
then
it
is
relevant
to
look
at
how
players
in
the
industry
can
configure
its
operations
to
be
able
to
contribute
to
the
goal
of
environmental
sustainability.
The
hotel
industry
players
have
adopted
different
measures
and
approaches
in
their
businesses
to
address
the
need
for
more
environmental
efforts
that
will
help
reverse
the
degradation
of
nature.
The
study
has
looked
into
how
a
competitive
environmental
strategy
is
selected
by
a
hotel’s
general
manager.
The
research
investigated
what
the
current
environmental
efforts,
and
how
the
factors
and
the
actors
influence
the
manager’s
suggestions
and
decisions
in
selecting
a
competitive
environmental
strategy
for
a
hotel’s
environmental
management
program.
The
theoretical
framework
offered
insights
on
the
different
competitive
environmental
strategies
that
can
be
applied
in
businesses
and
how
these
are
being
employed
in
different
hotels
worldwide.
Environmental
efforts
not
only
help
the
environment
but
are
also
linked
to
cost
savings,
revenue
improvement,
improved
public
relations
and
brand
image
and
better
service
and
quality
performance,
not
to
mention
employee
involvement
and
motivation.
The
research
question
in
the
study
was:
What
competitive
environmental
strategy
can
Marco
Polo
Davao
adopt
for
its
environmental
management
program?
The
research
was
carried
out
in
a
case
for
a
hotel
in
the
Philippines.
It
is
part
of
an
international
chain,
based
in
Hong
Kong,
which
operates
in
the
Asia‐Pacific.
The
main
objective
of
this
research
was
to
suggest
a
competitive
environmental
strategy
that
Marco
Polo
Davao
can
adopt
for
its
environmental
management
program.
The
goal
was
to
generalize
results
to
theory;
data
and
results
are
gathered
in
order
to
draw
inferences.
The
inferences
are
used
to
suggest
a
competitive
environmental
strategy
for
the
hotel’s
managers.
80
The
analysis
of
data
collected
has
shown
that
environmental
efforts
are
warmly
welcomed
by
most
of
the
managers
of
Marco
Polo
Davao.
The
hotel’s
current
environmental
efforts
are
mainly
driven
by
environmental
legislation
and
the
possibility
of
cost
savings.
None
of
the
managers
treat
customer
pressure
as
a
facilitator
but
upon
completion
of
the
customer
survey,
results
revealed
that
most
of
the
customers
and
prospective
customers
are
indeed
interested
in
environmentally
friendly
hotels.
Most
of
the
managers
think
that
costs
are
the
main
barrier
in
having
more
environmental
efforts.
These
findings
agree
with
the
theory
that
the
above‐mentioned
factors
have
a
direct
influence
on
managers’
perceptions,
which
in
turn
shape
the
department
managers’
suggestions
and
the
general
manager’s
decision.
The
hotel
is
currently
doing
efforts
beyond
what
is
required
by
legislation
and
most
of
the
managers
want
the
hotel
to
do
more,
even
if
not
required.
Thus,
Marco
Polo
Davao
can
adopt
the
beyond
compliance
leadership
strategy
for
its
environmental
management
program.
The
management
of
Marco
Polo
Davao
can
use
the
results
of
the
study
for
planning
its
environmental
management
program.
However,
it
does
not
follow
that
the
same
strategy
will
be
applicable
to
other
hotels
in
the
area
or
other
hotels
in
the
chain
since
every
case
requires
careful
diagnosis.
However,
the
findings
can
be
presented
to
the
managing
company
and
can
possibly
influence
the
whole
chain
to
diagnose
its
hotels
and
develop
its
environmental
management
programs
specifically
fit
for
each
hotel.
The
findings
can
also
be
used
as
reference
for
other
hotels
that
are
in
the
same
situation,
size
or
similar
business
environment,
especially
for
hotels
in
the
Philippines.
The
process
of
developing
an
environmental
management
program
starts
with
reviewing
theory,
finding
out
information
about
the
case
and
careful
analysis
of
data
collected.
The
findings
in
this
case
suggest
that
a
clear
environmental
policy
be
put
in
place
in
order
to
enhance
Marco
Polo
Davao’s
current
environmental
efforts.
Higher
strategies
were
not
suggested
since
the
results
have
shown
that
it
will
not
be
practical
for
the
hotel
to
adopt
it
right
now,
considering
the
hotel’s
current
performance
and
other
economic
and
market
factors.
It
can
however,
include
preparations
for
adoption
of
higher
strategies
in
its
long‐
term
plans.
81
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Appendices
Appendix
A:
Managers’
Interview
Questionnaire
Length
of
tenure
(current
position)
Background
on
Department?
What
does
it
mainly
do?
Are
you
familiar
with
sustainability/environmental
management?
Does
your
department
do
anything
towards
being
environmentally
friendly?
Is
your
department
concerned
with
any
requirements
by
government
and
the
managing
company
in
terms
of
environmental
efforts?
Do
you
think
more
stringent
standards
from
the
government
and
the
managing
company
will
help
the
hotel
perform
better
in
terms
of
its
environmental
efforts
and
ultimately,
in
terms
of
profits?
If
the
legislations
remain
the
same,
do
you
think
it
would
be
good
for
Marco
Polo
to
go
beyond
what
is
required
in
making
efforts
toward
sustainability?
Why
or
why
not?
(
Do
you
think
it
is
wise
to
invest
on
environmental
efforts
ahead
of
the
others
in
the
market?
What
are
your
ideas
on
reducing
resource
use
and
waste
in
your
department
and
in
the
hotel?
Do
you
deal
with
supplies
and
suppliers
in
your
department?
Do
your
suppliers/the
hotel’s
suppliers
are
ecological
and
offer
sustainable
products
(i.e.
deliver
organic
food
and
high
quality
products
with
no
toxic
components,
they
dispose
their
waste
properly)
Do
you
think
you
can/the
hotel
can
require
or
influence
your
supplier
to
be
environmentally
friendly?
(i.e.
less
harmful
laundry
detergents,
replace
soap
w/
recyclable
dispensers,
88
calculated
food
strategy,
reduced
deliveries,
less/ecological
packaging,
organic
raw
food
from
nearby
places)
Would
you
want
to
encourage
the
suppliers
to
have
sustainable
businesses
too?
What
do
you
think
about
selling
the
hotel’s
products
and
services
as
green?
(It
aims
to
green
all
factors
in
the
customer
experience
and
sell
the
stay
as
a
green
stay.)
Do
you
think
the
firm
should
do
more
than
just
developing
green
products
and
services?
Environmental
cost
leadership
strategy:
Can
you
see
the
hotel
having
a
strong
sustainability
program
is
implemented
with
environmental
investments
in
the
near
future?
What
do
you
think
about
developing
a
totally
new
business
model
based
on
sustainability?
This
is
where
sustainability
is
integrated
into
the
firm’s
mission
and
vision
and
is
implemented
into
all
the
departments
of
the
organization.
89
Are
you
aware
of
the
following
facilitators
and
barriers
in
implementing
an
environmental
management
program?
Please
assess
each
item
if
you
consider
it
as
a
facilitator/barrier
or
not.
Facilitators:
1. Required
by
government
or
managing
company
2. Cost
reduction
3. Revenue
improvement
4. Competitive
advantage
5. Stronger
supplier
ties/
supply
chain
pressure
6. Better
quality
of
products
and
supplies
7. Performance
and
quality
improvement
8. Better
corporate
image
9. Public
recognition
10. Less
emissions,
healthier
environment
(community
environmental
concern)
11. Pressure
of
customers
or
tour
operators
12. Employee
interests
13. Investors
demand
Barriers:
1.
2.
3.
4.
5.
6.
High
investment
costs
It
does
not
meet
short‐term
goals
No
idea
on
what
to
do
in
terms
of
sustainability
Resistance
to
change
Too
much
effort
in
switching
strategies
and
training
personnel
It
makes
the
company
less
competitive
90
Appendix
B:
Suppliers’
interview
questions
Background
of
the
company
What
do
you
supply
to
Marco
Polo?
Do
you
know
about
sustainability?
Do
you
have
any
efforts
towards
the
environment?
Are
you
open
to
adopting
green
efforts
in
your
company?
Are
you
open
to
supplying
green
products
to
Marco
Polo
if
they
prefer
it?
How
about
competition?
Do
you
think
your
competitors
are
as/more/less
green
than
you
are?
91
Appendix
C:
Employees’
Survey
1.
2.
3.
4.
5.
Job
title
____________________
Does
the
hotel
have
environmental
efforts?
________
Yes
________
No
________
I
don't
know
Do
you
do
any
environmentally
friendly
efforts
at
work
and
within
the
hotel?
________
Yes
If
yes,
what
are
those
efforts?
________
save
energy
(i.e.
turn
off
lights
and
aircon
when
not
in
use)
________
reduce
waste
________
save
water
________
recycle
________
others
please
specify
______________________________
________
No
Do
you
want
the
hotel
to
be
more
environmentally
friendly
and
have
more
environmentally
friendly
rules?
________
Yes
________
No
Are
you
willing
to
undergo
training
for
the
hotel
to
have
a
successful
environmental
program?
________
Yes
________
No
92
Appendix
D:
Customers’
Survey
1. What
type
of
tourist
are
you?
________
Local
________
Foreign
2. Have
you
heard
of
an
environmentally
friendly
hotel?
________
Yes
–
please
proceed
to
number
3
________
No
–
An
environmentally
friendly
hotel
does
efforts
that
help
save
the
environment
from
further
degradation
3. Are
you
interested
in
staying
in
an
environmentally
friendly
hotel?
________
Yes
–
please
proceed
to
number
4
________No
‐Thank
you
for
answering
the
questionnaire!
4. Have
you
stayed
in
an
environmentally
friendly
hotel?
________
Yes
‐
please
proceed
to
number
5
________
No
–
please
proceed
to
number
6
5. Questions
about
your
stay:
a. Did
you
like
your
stay?
________
Yes
________
No
b. Did
you
pay
more
for
it?
________
Yes
________
No
c. Will
you
stay
again?
________
Yes
________
No
6. Will
you
stay
or
stay
again
(if
you’ve
stayed
in
one
before)
in
en
environmentally
friendly
hotel?
________
Yes‐
please
proceed
to
number
7
________
No
–
Thank
you
for
answering
the
questionnaire!
7. How
much
more
will
you
be
willing
pay
for
it?
________
more
than
3%
please
specify
___________%
________
3
%
________
2%
________
1%
________
nothing
93
Appendix
E:
Other
environmental
efforts
being
done
by
the
F&B
department
Current
energy
conservation
and
waste
management
measures
in
the
kitchen
include
the
following:
o Minimizing
the
opening
of
doors
of
cold
storage
and
freezer
o Keeping
a
temperature
log
of
all
chillers
twice
a
day
o Keeping
kitchen
doors
adjacent
to
dining
area
closed
o Replacing
old
gas
kitchen
equipment
by
newer
energy‐saving
models
o Leftover
(unserved)
food
from
banquets
are
brought
to
employees’
cafeteria
o Selling
chemical
containers,
bottles
and
tin
cans
to
recyclers
o Reusing
old
food
containers
for
storage
o Use
of
induction
cookers
for
all
cookers
in
the
buffet
o Sell
food
waste
and
used
oil
94
Appendix
F:
Other
environmental
efforts
being
done
by
the
Technical
department
Other
energy
and
resource
consumption
measures
being
done
by
the
technical
department
o Regular
checks
on
water
leaks
o Maintenance
schedule
for
water
systems
o Proper
disposal
or
recycling
of
appliances
replaced
o Fine
tuning
of
controllers
for
air
conditioning
o Installation
of
solar
control
films
o Adding
light
switches
o Cleaning
light
fittings
o Energy
saving
policy
o Turns
off
ventilation
and
lights
when
not
in
use
o Illumination
level
is
not
higher
than
necessary
o Drapes
and
blinds
of
unoccupied
rooms
are
closed
o Policy
on
minimizing
the
opening
of
doors
of
cold
storage
and
freezers
o Preventive
maintenance
program
o Checks
accuracy
of
built‐in
instruments
o Chilled
water
temperature
is
maintained
at
the
right
level,
not
too
low
o Follow
flow
rate
specified
o Fine
tune
of
pneumatic
controls
for
all
AHUs
and
PAUs
o ESO
(energy
saving
operations)
function
in
lifts
o Examined
the
cooling
distribution
carefully
o Installed
natural
cooling
distribution
equipment
o Lamps
and
ventilation
system
in
car
park
controlled
by
timer
switch
o Checked
indoor
parameters
(temperatures
and
humidity)
to
ensure
no
over
cool
o Replace
the
fluorescent
light
ballast
with
electronic
type
o Stop
all
associated
water
pumps
when
chiller
is
shut
off
o Strict
control
of
maximum
electrical
current
limit
on
the
chiller
units
o Temperature
and
fan
speed
settings
for
room
thermostats
are
correctly
adjusted
o Close
guest
floor
during
low
occupancy
to
save
energy
95
o A
boiler
should
be
operated
at
percentage
load
of
over
30%
o Kitchen
doors
adjacent
to
dining
areas
kept
closed
o Kitchen
exhaust
make‐up
o Checked
leakage
of
refrigerant
and
water
o Check
kitchen
equipment
efficiency
o Test
boiler
efficiency
by
adjusted
fuel
ratio
o Adjust
water
flow
rate
and
water
temperature
to
suit
different
kitchens
o Follow
washing
machine
manufacturer’s
specified
water
temperature
and
amount
o Temperature
sensor
and
control
valve
are
installed
in
dry
cleaning
machine
o Adjust
air/fuel
ratio
or
fuel
flow
rate
o Check
fresh
air
dampers
o Routine
check
normal
operation
of
a
boiler
o Use
as
much
outdoor
air
as
possible
to
maximize
free
cooling
effect
when
permitted
by
weather
conditions
and
duct
system
design
Measures
dealing
with
air
pollutants
o Non‐smoking
guest
floor
o Environmentally‐friendly
fire
extinguisher
o Phase
out
refrigerant
r‐11
o Replace
existing
dry
cleaning
machine
with
an
approved
model
to
reduce
air
pollution
o Improved
building
air
balance:
positive
building
internal
pressure
maintained
(less
outside
air
pollutant
drawn
inside)
96
Appendix
G:
Other
environmental
efforts
being
done
by
the
Housekeeping
department
o Drapes
and
blinds
of
unoccupied
room
are
closed
o Temperature
and
fan
speed
settings
for
room
thermostats
are
correctly
adjusted
o Close
guest
floor
during
low
occupancy
to
save
energy
o Follow
washing
machine
manufacturer’s
specified
water
temperature
and
amount
o Non‐smoking
guest
floor
o Replace
existing
dry
cleaning
machine
with
an
approved
model
to
reduce
air
pollution
o staff
cafeteria
is
a
non‐smoking
area
o Donation
of
used
clothes
to
charities
except
for
those
with
official
logos
o Collection
of
outside
publications
for
staff
to
read
o Envelope
and
paper
recycling
o Paper
laundry
tags
o Newspaper
recycling‐
sold
to
recycler
o Printer
cartridges
are
collected
by
the
recyclers
o Return
chemical
container
to
supplier
for
recycling
o Soap
donations
(collect
used
soaps
for
parties
who
want)
o Towel/bed
linen
reuse
campaign
o Donate
old
linens
o Reusing
chemical
containers
o Bottle
recycling
to
suppliers
or
collectors
o Tin
can
recycling
o Wooden
hangers
o Recycling
of
bathroom
linen,
used
as
rags
o No
plastic
liners
in
room
garbage
bins,
they
are
washed
instead
97