Competitive Environmental Strategies in Hotels:

TThhee C
Caassee ooff M
Maarrccoo PPoolloo D
Daavvaaoo iinn tthhee PPhhiilliippppiinneess

MaureenAngelicaT.Padilla

SupervisedbyAdrianaBudeanu
DepartmentofInternationalEconomics&Management
MSocScinServiceManagement
97pages/168,615STUs
November2012

Abstract

Hotelsparticularlyaffectthesustainabilityofthenaturalenvironmentduetoconsumption
of large amounts of natural water and energy and leaving behind substantial amounts of
waste.Therehasbeengrowingsocialconcernanddemandsamongdifferentstakeholders
for environmentally friendly hotels. Despite the growing demand and popularity, only a
handfulofhotelcompaniesaresaidtohaveadoptedenvironmentalmanagementandused
itforgainingcompetitiveadvantage.

The study takes on the case of Marco Polo Davao, a chained hotel in the Philippines. A
competitiveenvironmentalstrategywassuggestedforthefirmafterexaminingthedifferent
factors and actors that are said to influence the firms decisions on environmental
management. The perceptions on environmental management of the managers of Marco
PoloDavaowerefirstlookedinto.Anexaminationoftheotherfactorsandactorsthatare
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
respectiveviewsandopinions.Lastly,recommendationsforactionareasareenumerated,
accordingtothefindingsfromtheinterviewsandsurveys.

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
decisionsonenvironmentalmanagementsupportedthetheoreticalassumptions.Onevery
significantfindinghowever,wasthatnoneofthemanagersregardcustomersdemandasa
facilitatorwhilethecustomersurveyresultsshowedthatthereisindeedahighinterestin
environmentally responsible hotels. A beyond compliance strategy is suggested for Marco
Polo Davao to adopt in designing its environmental management program.

Acknowledgements

The completion of this thesis marks the end of my journey through the MSocSc in Service
Managementprogram.IwishtothankCBSforgivingmetheopportunitytogothroughthe
program and ultimately, through this unique experience of acquiring knowledge in my
chosenfield.
IwouldliketothankMs.AdrianaBudeanuforherguidance,motivationandpatience.Ialso
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
whowillinglyparticipatedandhelpedmewitheverythingthatIneededfortheproject.
Mydeepestgratitudegoestoallmyfamily&friendswhohavesupportedmethroughthis
challengingtime.Specialthanksgoestomyparents,Ms.SallyTevesandtoMs.CaitlinYao
&family.

TableofContents
Abstract ............................................................................................................................. 2
TableofContents ............................................................................................................... 4
ListofFigures&Tables....................................................................................................... 6
1. Introduction ................................................................................................................ 7
1.1 Background ....................................................................................................................................7
1.2 PurposeoftheResearch ................................................................................................................9
1.3 Clarificationofconcepts ..............................................................................................................11
1.4 ThesisStructure ...........................................................................................................................12

2. RelatedLiterature...................................................................................................... 14
2.1 Corporateenvironmentalstrategies............................................................................................14
2.1.1 Environmentalmanagementandthefirmsvalue ...............................................................14
2.1.2 Competitiveenvironmentalstrategies .................................................................................15
2.1.3 Sustainabilityaskeydrivertoinnovation .............................................................................16
2.1.4 Sustainability&shareholdervalue .......................................................................................17
2.1.5 DiscussiononCorporateenvironmentalstrategies ..............................................................18
2.2 EnvironmentalManagementinHotels ........................................................................................23
2.2.1 Managersrolesinstrategydecisions ..................................................................................24
2.2.2 Factorsinfluencingmanagersdecisionsonthechoiceofanenvironmentalstrategy ........25
2.2.3 Actors (Stakeholders) influencing managers decisions on the choice of an environmental
strategy.............................................................................................................................................27
2.2.4 ActionsAreas ........................................................................................................................29
2.2.5 CurrentEnvironmentalBusinessPracticesinHotels.............................................................32
2.3 Conceptualframework ................................................................................................................34

3. Methodology............................................................................................................. 39
3.1 ResearchDesign...........................................................................................................................39
3.2 PhilosophicalConsiderations .......................................................................................................41
3.3 DataCollectionProcess ...............................................................................................................43
3.4 Interviews ....................................................................................................................................45
3.5 Surveys.........................................................................................................................................47

3.6 DataAnalysis................................................................................................................................48
3.7 Reliability&Validity.....................................................................................................................49
3.8 Limitations ...................................................................................................................................50

4. TheCase .................................................................................................................... 51
4.1 ThehotelindustryinthePhilippines ...........................................................................................51
4.2 TheHotel .....................................................................................................................................51
4.3 BusinessModel ............................................................................................................................52
4.4 Currentbusinesssituation ...........................................................................................................52
4.4.1 CurrentenvironmentaleffortsofMarcoPoloDavao ...........................................................53

5. Findings&Analysis.................................................................................................... 58
5.1 InterviewswithManagers ...........................................................................................................58
5.1.1 Managersroleonenvironmentalmanagement..................................................................59
5.1.2 Factorsinfluenceonmanagersdecisionsinthechoiceofanenvironmentalstrategy.......59
5.1.3 Actors/Stakeholders influence on managers decisions in the choice of an environmental
strategy.............................................................................................................................................64
5.2 Supplierinterviews ......................................................................................................................65
5.3 Employeessurvey .......................................................................................................................67
5.4 Customerssurvey .......................................................................................................................68
5.5 RecommendationsonActionAreas.............................................................................................71

6. Discussion ................................................................................................................. 76
7. Conclusion................................................................................................................. 80
Bibliography..................................................................................................................... 82
Appendices ...................................................................................................................... 88
AppendixA:ManagersInterviewQuestionnaire .................................................................................88
AppendixB:Suppliersinterviewquestions ..........................................................................................91
AppendixC:EmployeesSurvey ............................................................................................................92
AppendixD:CustomersSurvey ............................................................................................................93
AppendixE:OtherenvironmentaleffortsbeingdonebytheF&Bdepartment ...................................94
AppendixF:OtherenvironmentaleffortsbeingdonebytheTechnicaldepartment...........................95
AppendixG:OtherenvironmentaleffortsbeingdonebytheHousekeepingdepartment ..................97

ListofFigures&Tables
Figure1:20101015ForecastofPhilippineHotelSales(inMillionsofPesos).9
Figure 2: Model of linkage between strategy, environmental management and firm
performance.15
Figure3:GenericCompetitiveEnvironmentalStrategies..16
Figure4:KeydimensionsofShareholderValue..17
Figure5:ConceptualFramework...35
Figure6:Familiaritywithanenvironmentallyfriendlyhotel...69
Figure7:Interestinstayingatagreenhotel...69

Table1:EnvironmentalStrategiesaspresentedbyselectauthors.19
Table 2: Survey results for facilitators in implementing an environmental management
program.62
Table3:Surveyresultsforbarriersinimplementinganenvironmental
managementprogram.63
Table4:Employeessurveyresults..68
Table5:CustomersurveyresultsforlocalPhilippinetourists.70
Table6:CustomersurveyresultsforforeignPhilippinetourists.....71

1. Introduction
1.1 Background
Tourism is the worlds largest industry, contributing to 11.5% of the worlds GDP and
employing12.5%oftheworldsworkforce.Itisexpectedtogrowatanannualrateof34%
from 20112016, 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
scarceresourcesandinappropriatepracticesanddevelopmentsintourismputpressureon
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 everincreasing demand for sustainable tourism as driven by businesses
supporting sustainable practices, authorities and local communities (Euromonitor
International,2012).
Thetravelaccommodationisoneofthelargestsectorsofthetourismindustry,andhotels
have proven to be the biggest players in the sector. There is a growing awareness in
environmentalismnowadaysforboththeindustryplayersandthecustomers.
Thereisaglobaltrendshowingthathotelguestsaremoreecomindedandareconcerned
abouthowtheirchoicescanaffecttheenvironment.Hoteliersalsoincreasinglyknowabout
the need to implement sustainability practices to reduce costs, attract new guests and
benefitfromfuturecostsavingopportunities(EuromonitorInternational,2012).Inspiteof
thehigherawarenessanddemand,thereareonlyafewcompaniesinthehotelindustrythat
have a comprehensive approach to sustainable practices (LopezGamero, MolinaAzorin, &
ClaverCortes,2010).
The worlds largest hotel operators are only just beginning to address social and
environmentalchallenges.Accorplanstocutitsenergyandwaterconsumptionby10%in

fiveyearsthroughitsEarthGuestprogram.TheIntercontinentalHotelGroup(IHG)hasan
inhouse sustainability system, the Green Engage program which targets to save 20%
annually in energy consumption. Marriott plans to reduce 25% energy and water
consumptionperroomby2017.OtherplayerssuchasHilton,Hyatt,Starwoodhavesimilar
programsputinplace(EuromonitorInternational,2012).
Accoriscurrentlythemostsustainableoftheworlds10largesthotelgroups.Accorhasa
score of only 55%, followed by IHG with 43% and Marriott with 35%. Other hotel groups
scorewellbelowthetop3,withtheremaining7ofthetop10onlygarneringscoreswithin
therangeof6%17%.Anumberofotherhotelgroupsoutsidethetop10suchasScandic,
Radisson,Movenpickarealsohavingsustainabilityeffortsbutclearlyhasalongwaytogoin
terms of integrating sustainability management within core processes, monitoring
performance and engaging with stakeholders on how to address sustainability challenges
(EuromonitorInternational,2012).
The World Economic Forum Sustainability ranking takes into consideration the countrys
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
leadstheworldinsustainabledestinationswhiletheworstperformingcountriesaremainly
thosefromthedevelopingworld.ThePhilippinesisamongthelowestrankedcountriesin
terms of sustainability, with Manila, its capital city, placing among the bottom 5 least
sustainableAsianCities(EuromonitorInternational,2012).
Natural disasters and pandemics are also being felt more in developing countries, posing
threatstothecountriestourismindustryandtravelaccommodationsector.ThePhilippines
is no exception, which was hit by strong storms, and tropical cyclones the past few years.
Thesestorms,observedtohavebecomestrongerlatelyduetoclimatechange,havebrought
aboutnaturaldisasterssuchasfloodsandlandslides,displacingandkillingmillionsofpeople
inthecountry.
In the Philippines, hotels are taking up 90% of total travel accommodation sales
(EuromonitorInternational,2010).Itsvaluehasincreasedby12%in2010anditisexpected
to grow in constant value at a compounded annual growth rate (CAGR) of 8% until 2015.

ThenumberofoutletsisalsoexpectedtoincreasewithaCAGRof1%until2015.Thesaid
forecastismainlyattributedtotheglobalgrowthofthetourismindustryandthepopularity
ofintraregionaldestinations(EuromonitorInternational,2010).Withthegrowthintourist
arrivalsandincreaseinhotelsales,ithasbecomeevenmoreimportantfortheplayersinthe
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
andcontributeinreversingtheeffectsofclimatechangebutwillalsosavepopulationfrom
sufferingmoredisasters,onehotelatatime.

100,000.00
90,000.00
80,000.00
70,000.00
60,000.00
Hotels

50,000.00

ChainedHotels

40,000.00

IndependentHotels

30,000.00
20,000.00
10,000.00
0.00
2010

2011

2012

2013

2014

2015

Figure 1: 20101015 Forecast of Philippine Hotel Sales (in Millions of Pesos) Source:
EuromonitorInternational

1.2 PurposeoftheResearch
Having established the need for hotels to respond to the demands of environment and
society,thisstudylooksintohowhotelscancontributetosustainabletourism.
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
effortsindifferenthotelsinthecountry,itisataveryminimallevelandcertainlylagbehind

those of the developed countries. There is also no data available for sustainability
performanceofhotelsinthePhilippines.Thus,theresearcherdecidedtoinquireinthisarea.
There are four alternative forms of sustainable tourism, namely green tourism, ethical
tourism, responsible tourism and ecotourism (Euromonitor International, 2012). This
researchfocusesongreentourismparticularlyonhoweffortsthataregearedtowardsthe
environmentareselected,asopposedtoeffortsthatconcentrateonethical,cultural,local
welfare,politicalandeconomicelementsofthedestinations.
Inorderforahoteltobeabletocontributetogreentourism,likeeveryotherbusiness,it
needs to have clear environmental strategy, implemented through an environmental
managementprogram.Sustainabilityissuesimpactoncorporatestrategyandperformance
(Rohm & Dan, 2011). The choice of an environmental strategy impacts on the companys
environmental performance. Different authors present different sets of environmental
strategies that a company can follow and implement for its environmental efforts, one of
whichisnamedCompetitiveenvironmentalstrategies.Thisisasetofstrategiesbasedon
the competitive advantage and competitive focus of different environmental strategies.
Examination of the different factors that lead to the general managers selection of a
competitiveenvironmentalstrategyisdone.
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
competitiveenvironmentalstrategies.Thegoalofthisresearchistosuggestacompetitive
environmental strategy for a Philippine hotel. This is done by examining the different
factors,actorsandconditionsthatleadtothegeneralmanagersselectionofacompetitive
environmental strategy, which the hotel can adopt in planning and implementing its
environmentalmanagementprogram.
Theresearchprojectismainlywrittenforthegeneralmanagerofahotel.Thismeansthat
the analysis, findings and final recommendations are to serve how the management team
canoptimizetheirenvironmentalefforts.

10

Theresearchquestionforthestudyis:
What competitive environmental strategy can Marco Polo Davao adopt for its
environmentalmanagementprogram?
Inordertoanswerthisresearchquestion,thefollowingsubquestionswereformulated:
o What is the role of the general managers and the department managers
perceptionsonselectingacompetitiveenvironmentalstrategy?
o Whatarethefactorsandactorsthatleadforastrategytobesuggestedbythe
departmentmanagersandchosenbythegeneralmanager?
o Whatistheinfluenceofthefactorsandactorsontheselectionofacompetitive
environmentalstrategy?
o What are the recommendations for Marco Polo Davao on the following action
areas:(1)greenprogramstructure(2)energyefficiency(3)resourceandwaste
management(4)sustainablesupplychainmanagement

1.3 Clarificationofconcepts
With the focus on green tourism, this thesis used the terms, environmental performance/
environmentalmanagement/environmentalstrategies/greeneffortsinlieuofsustainability
performance,sustainabilitymanagement,sustainabilitystrategiesandsustainabilityefforts.
Thisclarifiesthefocusofthestudy,whichisontheenvironmentalpartofsustainability.
Sustainability stands for practices that protect and enhance the human and natural
resourcesneededbyfuturegenerationstoenjoyaqualityoflifeequaltoorgreaterthanour
own(USEnvironmentalProtectionAgency,2010).Itisamatterofmakingdecisionsinthe
shortrunthatdoesnothavenegativeimpactsinthelongrun(Field&Field,2009).
Sustainableeffortspertaintotheactionstowardsachievingsustainability.Consideringthe
scope and limitation of this study, the term is considered synonymous with green efforts,
environmentaleffortsandenvironmentalactions.
Sustainability strategies would then be structural changes based on sustainability that
impact corporate strategies and performance (Rohm & Dan, 2011). Environmental
strategiesisusedsynonymouslywiththeterminthisthesis.

11

Environmental management deals with technical and organizational activities aimed at

reducing the environmental impact of the companys operations (CarmonaMoreno,
CespedesLorente,&DeBurgosJimenez,2004).
Energy and waste management means strategizing of the use and conservation of
resources,usuallydonebyexploringpossiblealternativeenergysourcesandbyfindingways
toreduceenergyconsumption,reducewasteandrecycle(EuromonitorInternational,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).
Thegeneralmanagerreferstothepersonwhoisinchargeofadministeringalloperationsof
thehotel.Thedepartmentmanagersrefertothosewhoareresponsibleforadministering
the operations of a specific department. In this study, the use of the term the
managers/themanagementwillrefertobothparties.

1.4 ThesisStructure
Belowisthelistofchaptersinthisthesiswithabriefdescriptionofeach.
Chapter 1 Introduction: Introduces the topic of hotel sustainability, and presents the
researchproblemtobestudied,researchpurposeandresearchquestionstobeaddressed.
Thechaptercontainsthedefinitionoftermsandthestructureofthethesis.
Chapter2Literaturereview:Themainliteraturewithinthefieldisreviewedandthestudys
theoretical framework is presented. The frameworks on corporate sustainability that are
related to the study are presented first, and then a discussion on environmental
managementinhotelsfollows.Thechapterendswiththeconceptualframeworkwherein
theappropriatetheoriesusedforthestudyarebepointedout.

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
processofthestudyisalsodiscussed.
Chapter4Thecase:GivesabackgroundonthePhilippinehotelindustry,historyandcurrent
situation,andthecaseofthechosenhotelinthePhilippines.
Chapter5Findings&Analysis:Thischapterdiscussesandanalyzesthedatafindingsinorder
tocomeupwithgeneralconclusionsfromthedatagatheringprocess.
Chapter6Discussion:Thissectionofthepaperwilldiscusstheanalyzedfindingsanduseit
toanswertheresearchquestion.
Chapter7Conclusion:Finalremarksandconclusionsendthepaper.
Appendicesmaterialsgatheredandregardedrelevantforfurtherexplanation

13

2. RelatedLiterature
Environmental management refers to all efforts to minimize the negative environmental
impactofthefirmsoperationsprocesses,whichcontributetowardssustainability(Klassen
&McLaughlin,1996).Itinvolvesawidevarietyofinitiatives,whichwoulddifferperindustry
due to difference in operations. The initiatives are usually classified as technical and
organizational. Longterm planning and integration with other corporate decisions
determinetheenvironmentalstrategyofthefirm(LopezGamero,MolinaAzorin,&Claver
Cortes,2010).
Afirmsenvironmentalstrategyreferstohowthefirmrespondstoenvironmentalissuesand
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
commitmenttoadvancedstrategies(LopezGamero,MolinaAzorin,&ClaverCortes,2010).
Environmentalperformancemeasureshowsuccessfulafirmisinreducingandminimizingits
impact on the environment (Klassen & McLaughlin, 1996). It is shown in terms of results
achievedbythecompanyfromhavinganenvironmentalmanagementprogram,whichgoes
hand in hand with an environmental strategy that defines a firms competitive orientation
(LopezGamero,MolinaAzorin,&ClaverCortes,2010).

2.1 Corporateenvironmentalstrategies
2.1.1 Environmentalmanagementandthefirmsvalue
Many suggest that profitability is adversely affected by higher production costs of
environmental management initiatives (Klassen & McLaughlin, 1996). According to
Maignan,customersusuallywantfirmstoinformthemoftheirsustainabilityinitiatives.This
usuallyinfluencesthecustomerspurchasebehaviorascustomersarenowexpectingfirms
tobemoresociallyandenvironmentallyresponsible(Pomering,Noble,&Johnson,2011).
The environmental orientation of the firm is determined by corporate strategy.
Environmentalmanagementbecomesanintegralelementofcorporatestrategyasitaffects
thecompanysenvironmentalperformance.Operationsstrategyisthepatternofstructural
and infrastructural choices that guide decisions in operations to support overall firm

14

performance (Klassen & McLaughlin, 1996). However, according to Reinhardt, there is a

groupofexecutivesandbusinessacademicsthatdisagreebecauseenvironmentalismmakes
managementlosefocusontherealproblemsofbusiness(Reinhardt,1998).
Nevertheless, there are indicators that effectively link environmental management and
financial performance. Firms who invested in activities that minimized environmental
impactwererewardedinthemarketplacebyhighervaluation(Klassen&McLaughlin,1996).
This view however, is criticized by the interpretation that business is concerned with
sustainabilityeffortsandenvironmentalmanagement,onlytotheextentthatitcontributes
longterm 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 Competitiveenvironmentalstrategies
A study by Orsato presents a framework on the different competitive environmental
strategies.Ithelpsmanagersoptimizeeconomicreturnoninvestmentsandtransformthese
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 companys
economic,socialandecologicalperformanceasmotivatedbytheviewthatsustainabilityis
intheinevitabledirectionthatprogresstakes(vanMarrewijk,2003).

15

In1980,MichaelPorteridentifiedtwogenerictypesofcompetitiveadvantage,lowcostand
differentiation.AccordingtoPorter,afirmcanthroughefficientuseoflaborandcapital
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
featuresforitsproductsoritsservices(Orsato,2006).
The ResourceBased View highlights the influence (internal) organizational processes exert
on competitiveness. Competitive advantage should be seen as a result of the ability to
acquire,use,andmanageresources,suchastechnicalcapabilities,ownershipofintellectual
property, brand leadership, financial capabilities, and organizational structure and culture.
All these advantages can be utilized at the firms advantage in environmental innovation.
(Orsato,2006).
In the framework presented in the study, organizational processes tend to have a more
encompassingscopethanproductsorservicesanditcanbeusedtodefineastrategyfora
productorthewholebusiness.Environmentalstrategiesmustbealignedwiththeoverall
businessstrategyinordertooptimizeresources(Orsato,2006).

Figure3:GenericCompetitiveEnvironmentalStrategies

2.1.3 Sustainabilityaskeydrivertoinnovation
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

friendlyduetohavingreducedinputs.Itisopinedthatinthefuture,onlycompaniesthat
make sustainability a goal will achieve competitive advantage. In order to become
sustainable, there is a need for companies to rethink business models, products,
technologiesandprocesses.Thereare5stagesintheprocessofbecomingsustainableand
thesewillbediscussedindetailbelowtogetherwiththatofthesimilarstrategiesproposed
byOrsato.

2.1.4 Sustainability&shareholdervalue
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 (Brnn & VidaverCohen, 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
discussedabove.Hart&Milsteinhowever,presentsaframeworkthatfocusesonthehow
sustainability affects shareholder value. They present shareholder value as a
multidimensionalconstructusingamodelwith2axes.Theverticalaxisisbuiltonthefirms
need to manage the business while simultaneously creating tomorrows technology and
markets. The horizontal axis looks at the firms need to grow internal organizational skills
whileinfusingknowledgefromoutside.

Figure4:KeydimensionsofShareholderValue

17

Sustainabledevelopmentisalsoamultidimensionalchallenge.Therearefoursetsofglobal
driversofsustainability.Thefirstisrelatedtoindustrializationandhowitbringsirreversible
effects to the environment. The second is the growth of groups in civil society to monitor
andevenenforcesocialandenvironmentalstandards.Thethirdsetofdriversisrelatedto
emerging technology that can possibly provide solutions to the material and energy
intensiveprocessestoday.Thefourthsetrelatestotheincreaseinpopulation,povertyand
inequity. The challenges associated with global sustainability can help identify strategies
and practices, which improve performance in all four quadrants of the shareholdervalue
framework(Hart&Milstein,2003).Inordertomaximizeshareholdervalueovertime,firms
mustperformwellsimultaneouslyinallfourquadrants(Hart&Milstein,2003).

2.1.5 DiscussiononCorporateenvironmentalstrategies
Before a firm is able to implement environmental efforts, it is essential that a strategy be
chosenafterdoingacompanydiagnosis.Theselectedstrategywillguidethedesignofthe
companysenvironmentalmanagementframework.
Thethreeauthorspresentedaboveofferedvariousenvironmentalstrategiesthataresimilar
to each other. Orsatos competitive environmental strategies will mainly be used for this
study but the important and defining points in the similar theories presented by Hart &
MilsteinandNidumoluet.alwillalsobeintegratedwithOrsatostoobtainamoreholistic
viewofthedifferentstrategiesthatcanbeusedinthisstudy.
Strategy1:EcoEfficiency
Organizations should be able to transform costs into profits by identifying concealed
opportunitiesforinnovation,leadingtomoreefficientorganizationalsystems.Byworking
towards ecoefficiency within and beyond the firm, it will be able to save money and
decreasetheenvironmentalimpactofitsprocesses(Orsato,2006).Ecoefficiencyisusually
donetodiminishnegativeeffectsontheenvironmentbyusingstrategiessuchasreducing
resourceconsumption,energyuse,emissionsandwastes,landfilluseandtoxicreleasesand
recycling(McDonough&Braungart,2000).However,McDonough&Braungartclaimthat
thinkingofecoefficiencyassustainableisamisconceptionbecauseitprovidesthe

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

Table1:EnvironmentalStrategiesaspresentedbyselectauthors

appearanceofchange,wheninfactwithsimplyreducingandrecycling,doesnotreallyputa
halt in environmental destruction. Thus, better actions such as product redesign (i.e.
replacing nonbiodegradable and harmful chemicals used in products contents to
environmentally friendly ones) and radical innovation should be done in order to ensure
longtermsuccessinenvironmentalperformance(McDonough&Braungart,2000).
This strategy is quite similar with that of Nidomulo, et. als stage 1 called viewing
complianceasanopportunity.Thedifferenceisthatitputsmorefocusontheinfluenceof
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 ecoefficiency 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,reducerisksandcosts(vanMarrewijk,2003).
Strategy2:BeyondComplianceLeadership
TheBeyondcomplianceleadershipstrategytakesecoefficiencyastephigherbyseekingto
beacknowledgedintheireffortsfortheenvironment.Inthisstrategy,firmsarewillingto
voluntarily spend money on environmental improvements beyond what is required (i.e. to
haveitsenvironmentalmanagementsystemcertified),andonthemarketingoftheirefforts
(Orsato,2006).Complyingwithmorestringentstandards,evenbeforetheyareenforcedis
a good way of fostering innovation and it also provides companies with the possibility of
benefiting from the firstmover advantage (Nidumolu, Prahalad, & Rangaswami, 2009). It
can give business major opportunities for outdesigning the competition (McDonough &
Braungart,2000).
Thoseagainstenvironmentalprotectionarguethatthemovetowardsenvironmentalismand
putting environmental standards or regulations in place are the reasons behind recessions
and economic slowdown of industrialized nations (Shrivastava, 1995). Keith Davis further
supportsthisbystatingthatenvironmentalregulationactuallyrestrictsflexibilityofdecision
making.Forbusinesses,itisactuallymoredesirabletohavelessregulationinordertohave
more freedom in decision making to be able to meet market and social factors (Brnn &
VidaverCohen,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 ecoefficiency is brought by the fact that it also helps make the
suppliers environmentconscious towards the goal of having a sustainable supply chain
(Nidumolu, Prahalad, & Rangaswami, 2009). Environmental concerns drive socially
responsiblefirmstohaveasustainablesupplychainwhilehigherprofitabilityfromadopting
sustainablesupplychainsencouragesotherfirmstodoit.Afirmsenvironmentaldecision
notonlyhaseffectsonitselfbutonitscustomersandsuppliersaswell(Hall,2001).

20

ThelasttheorythatcanbeintegratedtothisstageisthatofHart&Milstein,presentedas
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
shareholders wealth. Stakeholders interests can affect or can be affected by the
achievementofanorganizationsobjectives(Hart&Milstein,2003).
Thisisfurthersupportedbythefactthatcompaniesareanintegralparttosociety;theyare
responsibletoservetheneedsandsatisfysociety.Inthisview,motivatedbytheimportance
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
supportsitsincereputationandlegitimacyareeffectsthatthecompanycanattainbygoing
beyondcompliance.
Strategy3:EcoBranding
Once the company has gone beyond compliance and has strengthened its organizational
processes, it would be time to further explore opportunities for environmental
differentiationintermsofproductsandservices,whichcouldfurtherprovideacompetitive
advantage (Orsato, 2006). In environmental product differentiation, a business creates
productsthatprovidegreaterenvironmentalbenefits,orthatimposesmallerenvironmental
costs,thansimilarproducts.Thechangesintheproductsortheproductionprocessusually
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
greenmarketnichewillingtopayapremiumforenvironmentalproducts(Blanco,Lozano,&
RayMaquieira,2009).
Nidumoluet.alsstage3inbecomingsustainableisnameddesigningsustainableproducts
andservices.ThisisalmostidenticaltoecobrandingstrategyofOrsatosinceittakeson

21

the challenge of developing sustainable offerings or redesigning existing ones to become

ecofriendly(Nidumolu,Prahalad,&Rangaswami,2009).
TheinnovationandrepositioningstrategyofHart&Milsteininthesustainableshareholder
valueframeworkisalsosimilartotheecobrandingstrategybecauseitisaboutgenerating
productsandservicesforthefuture.Itisasearchforcreatingsynergistic(economic,social
andecological)valuethroughtheadoptionofsustainabilityefforts(Hart&Milstein,2003).
Thedifferencehoweveris,itputsmorefocusoninnovationandpointsoutitsimportancein
currentbusinessstrategies.
Strategy4:EnvironmentalCostLeadership
This strategy entails radical innovations in product design. Innovation is extended to the
"revenuebasis"ofthefirm,andthereisalargenumberunderdevelopment(Orsato,2006).
Inordertodothis,oneshouldconsideriftheproductisecologicallyintelligent,sociallyjust
(inmanufacturing,useanddisposal)andguiltfreethroughouttheproductionanddelivery
process.Itisalsoimperativeinthisstrategythatinnovationandadaptationoccurinorder
togainacompetitiveadvantage.(McDonough&Braungart,2000)
Nidumoluet.alsstage4isondevelopingnewbusinessmodels,whichmeansfindingnovel
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 firms sustainable activities as limited, unprofitable and isolate to adopting with
organizationwideframeworktoolsandprograms(Larson,Teisberg,&Johnson,2000).The
fullbenefitsofsustainabilityapproacheswillnotberealizedifitisjusttreatedasaddonsor
performance variables and are not integrated into the firms strategic vision and business
model(vanMarrewijk,2003).
ThisfourthstrategyissimilarandcanbeconnectedwithHart&Milsteinslastquadrantof
the shareholder value framework, which is growth path and trajectory. The theory of
growthpathandtrajectoryismoreconcernedwiththeexternaldimensionsassociatedwith
future performance. There should be a clear outlook for future growth by either offering
newproductsorenteringnewmarkets.

22

Nidomulo et. al further presents a stage 5 or the last stage of being sustainable which is
creating nextpractice 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
sustainablebusiness(Larson,Teisberg,&Johnson,2000).Nidomuloet.alfurtherstatethat
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 EnvironmentalManagementinHotels
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
managementisthesetofprocessesandpracticesintroducedanddonebyanorganization
forthereduction,preventionandeliminationofnegativeenvironmentaleffectsarisingfrom
itsoperations(Hsieh,2012).
Thehotelindustryismadeupofalargenumberofsmalloperationsthatconsumerelatively
smallamountsofenergy,waterandotherresources,andduetothis,theimpactofhotels
operations on the environment is diffuse (CarmonaMoreno, CespedesLorente, & De
BurgosJimenez, 2004). This leads to the perception that it does not cause gross
environmentalpollutionordegradation.However,iftheimpactsthatallthesmallindividual
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 (CarmonaMoreno, CespedesLorente, &
DeBurgosJimenez,2004).
Allactivitiesthathaveenvironmentalimpactshouldbecoveredbyahotelsenvironmental
management program to reduce the hotels environmental impact (CarmonaMoreno,
CespedesLorente,&DeBurgosJimenez,2004).Thehotelindustryisparticularlyconcerned

23

in environmental issues that relate to waste management & recycling, energy and water
conservation, building permits, legislation & regulations compliance, purchasing and
environmentaleducation(Hsieh,2012).
The International Hotels Initiative (1996) states that having a clear environmental policy is
oneoftheelementsofanenvironmentalprogram(Hsieh,2012).Thepolicywillbeguided
byacompetitiveenvironmentalstrategy,whichwillbedeterminedbydifferentactorsand
factors.Themainactorinthecaseofahotelisthehotelsgroupofmanagers,usuallymade
upofthegeneralmanagerandmiddlemanagers.Themanagersviewsandopinionsarevery
importantinmakingenvironmentaldecisionsandthiswillbediscussedfurtherinthenext
section.Followingthiswillbeaninvestigationofthefactorsandstakeholdersthataffectthe
managersdecisionsonutilizingenvironmentalmanagementtobringcompetitiveadvantage
tothefirm.

2.2.1 Managersrolesinstrategydecisions
According to studies, a positive relationship exists between managements perceptions of
environmental issues as opportunities and the adoption of proactive environmental
strategies.Managersaccountableforthecompanyscommitmenttotheenvironmenthave
opportunities to influence the organizations level of commitment. Their interpretations,
preferences or decisions help them make their decisions, which also depend on the
possibilityofgainingcompetitiveadvantageassociatedwithenvironmentalactions(Lopez
Gamero,MolinaAzorin,&ClaverCortes,2010).
The passive accommodating or proactive environmental attitude of managers determines
whatresourceswillbeneededforafirmsenvironmentalbehavior.Ifthemanagershavea
passive attitude, then endofpipe 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(LopezGamero,MolinaAzorin,&ClaverCortes,2010).

24

The general manager is the main person in charge of the whole hotel and he ultimately
decidesonstrategiestobeadoptedbyhotel.However,itisthedepartmentmanagersthat
mainly handle the planning and implementation process, thus their suggestions shape the
generalmanagersdecision.Thedepartmentmanagersperceptionsonfactorsandactors
affecting decisions on an environmental management are important because it directly
influences their suggestions to the general manager in terms of selecting a competitive
environmentalstrategyforthehotel.

2.2.2 Factors influencing managers decisions on the choice of an

environmentalstrategy
Thedepartmentmanagersmainlyinfluencethedecisionofthegeneralmanager.However,
theirsuggestionsfromtheirindividualunitsofresponsibilityarealsotakenintoaccountin
planningthehotelsenvironmentalprogram.Thefollowingfactorsinfluencethemanagers
perceptions on the different environmental strategies for the hotel. The managers
perceptionsinturninfluencethegeneralmanagersultimatechoiceofstrategy.
Thesectionbelowdiscusseshowthefactorsanditscurrentconditionsshapethemanagers
perceptionsonenvironmentalmanagementanddecisionsonacompetitiveenvironmental
strategy.

EnvironmentalLegislation

Environmental legislation has been the main driving force behind managerial perceptions
and a positive relationship between this and according to Rivera and Molero, managerial
perceptioncanhelpdesignenvironmentalmanagementasanopportunity(LopezGamero,
MolinaAzorin, & ClaverCortes, 2010). Studies have shown that environmental legislation
forhotelsisusuallyscarceandunclear,makingitmoredifficulttocomply,possiblyleading
managerstochooseinaction(Shrivastava,1995).

Resourcesandcapabilities

Resources and capabilities owned by the firm influence managers perception of

environmentalresponsibility.Theresourcesandcapabilitiesthatthefirmownsareusually
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
resourcesavailableforthefirmsuseforitsenvironmentalefforts(LopezGamero,Molina
Azorin,&ClaverCortes,2010).
Moreover,thefirmscapabilitiesintermsofexperiencecanmaketheprocessofadoptingan
environmental management program in a more efficient manner (LopezGamero, Molina
Azorin, & ClaverCortes, 2010). A lack in education may hinder the implementation of
environmentalpracticesandhavingasystemizedmeasurementanddocumentationofutility
consumptionratesandcosts(Scanlon,2007).

Facilitators/Perceivedopportunities

Thereareanumberoffactorsthatareperceivedtobringincompetitiveadvantage.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
andcompliancewithlegalrequirements(Ayuso,2006).Thesedifferencesarebroughtabout
by cost saving through costreduction measures, additional revenue through lower costs.
Moreover,influencingsupplierstodeliversuppliesofhighqualitywouldstrengthensupplier
ties. Quality improvement results from reinforcing total quality management, leading the
company to have a competitive edge and reduced liabilities in longterm issues such as
environmentalandsocialchallenges(Shrivastava,1995).
Insupportofthis,astudybyLee,etal.entitledUnderstandinghowconsumersviewgreen
hotels:howahotelsgreenimagecaninfluencebehavioralintentionsshowsthatahotels
greenimagecaninfluencebehavioralintentions.Ahotelwithasoundsustainableprogram
and a good green image can reduce costs, appeal to investors, motivate employees and
cultivateguestloyalty,leadingtoagreatermarketshare.Thisisbasedonthepremisethat
intodayssociety,firmsarejudgedonitsfinancialoutcomesandbehaviortowardssociety
basedonethics,socialaccountabilityandsocioeconomicawareness.Thisisalsodrivenby
theincreasingeducationonglobalwarmingandclimatechange.Agreenhotelimagethus
becomes a powerful tool in gaining market share and having a green positioning and
philosophyinoperationscanhelpattainthis(Lee,Hsu,Han,&Kim,2010).

26

Barriers/Challenges

Therearealsobarriersthatcompaniesfaceinimplementinganenvironmentalmanagement
program. First is the cost, it is quite costly to invest in sustainability programs and this
usually discourages managers who are working to meet shortterm performance goals. In
some settings, there is lack of knowhow and environmental information, wherein crucial
informationisnotavailable.Thenthereisalwaysaresistancetochangetheproceduresand
systemsthatthecompanyhasbeenusedto.Thiswillalsoentailchangingdecisionroutings,
standardproceduresandculturalhabits(Shrivastava,1995).
Externalbarriersalsoexistincludingthehighopportunitycostofenvironmentalinvestment,
limitedinfrastructureservices,therigidityoflegislationandbureaucraticcomplexity;lackof
knowledge or difficulty understanding the legislation; and troubles derived from the
competitivepressures(LopezGamero,MolinaAzorin,&ClaverCortes,2010).

2.2.3 Actors (Stakeholders) influencing managers decisions on the

choiceofanenvironmentalstrategy
Inadditiontothefactorsdiscussedabove,thefollowingsectiondiscussesthestakeholders
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
theircurrentopinionsanddemandsinfluencethemanagersperceptionsonenvironmental
efforts.
Stakeholdersinfluencemanagersbyeitherpressureorcooperation.Thestrongerpressure
thestakeholdersexertonthecompany,andthegreaterthecooperationopportunitieswith
its stakeholders, the greater the positive impact on the managers perception on the
environmentasacompetitiveopportunity.Theinfluenceofthestakeholdersgiveswayfor
thecompanytodevelopcollaborativerelationshipwithstakeholdersinfindingsolutionsfor
environmentalissues.Thisalsofostersinnovationamongtheorganizations(LopezGamero,
MolinaAzorin,&ClaverCortes,2010).
o Employees

27

Employeesarethemainplayersofenvironmentalsustainabilityinthehotel.Accordingto
GreenHotelsAssociation(GHA)founderPatriciaGriffin,"Ahousekeepercanseeifatowel
and sheet program is causing less wear and tear, or soap, water and labor savings, for
example.Theyhavesomuchmoreinputonchangesthatcanbemade."Thesustainability
programs actually become a force that bonds management and the employees.
Empoweringemployeesandmakingthemseethedifferencesareencouraging(Block,1998).
Griffin adds that educating employees is very important in conservation, as it is they who
makealltheinvestmentsproductive.ShestatesthatYoucanspendhundredsofthousands
ofdollarstoinstallenergyefficientlighting,butiftheemployeesaren'teducatedanddon't
turnthemoff,whatgooddoesitdo?"(Block,1998).
Howtheemployeesperceiveenvironmentalmanagementandtheirwillingnesstoengagein
environmentaleffortswouldhelpthemanagersgaugethelevelofreadinessandcapability
oftheemployeesandthewholehotelintakingonacompetitiveenvironmentalstrategy.
o Suppliers
The suppliers willingness to collaborate with the company is essential for the hotel to be
abletohaveasustainablesupplychain.Itisimportanttoknowifthesuppliersattitudes
andopinionsonenvironmentalpoliciesareinlinewiththatofthehotel.Theircooperation
andopennesstoadaptingtothehotelsenvironmentalstandardswill influencemanagers
perceptionsthatwillinfluencethegeneralmanagerschoiceofstrategy.
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
Accorshowsthat76%ofhotelguestsfeltsustainabledevelopmentisimportanttothem.It
alsofoundoutthatguestshavehighexpectationsforhotelstohaveeffortsintheareasof
water, energy, and waste. Of the 7,000 guests surveyed, 51% of guests take a hotels

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
environmentalpractices(CarmonaMoreno,CespedesLorente,&DeBurgosJimenez,2004).
Itmustbetakenintoconsiderationthatmostcustomersinthehospitalityindustry,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,highpressuredshowers,havingamplesupplyoftowelsandlinens,abundant
supplies of food and drink and having facilities such as swimming pools and saunas (Kirk,
1995).Thus,whateverisdonetoreducewastecanonlybedonewiththeconsentofthe
customer, who is directly involved in terms of deciding his/her energy and resource
consumptionandgenerationofwaste(CarmonaMoreno,CespedesLorente,&DeBurgos
Jimenez,2004).Itmustalsobedoneinsuchawaythatthecustomerdoesnotnoticeany
deteriorationofservice(Kirk,1995).
The level of customers demands for environmental efforts in hotels and their need and
willingnesstoengagethemselvesintheenvironmentalhotelexperiencecanhelpmanagers
indeterminingwhichcompetitiveenvironmentalstrategytosuggest.

2.2.4 ActionsAreas
Thefollowingsectionpresentstheactionareasthatareusuallyaddressedwhenplanningan
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
strategywillbestaccommodatethesuggestionsforthesaidactionareas.
o Greenprogramstructure
AccordingtoHsieh,actualenvironmentalpracticeshavetobeexaminedtoestablishwhat
amongthemanyguidelinesandlegalrestrictionsforenvironmentalmanagementaretobe
applied for each establishment (Hsieh, 2012). In order to be successful, all departments

29

withinthehotelshouldplayaroleintheplanningandimplementationofitsenvironmental
managementprogram.
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
HyattRegencyChicago,andtheHyattRegencyScottsdale.Ithasfoundoutthateachofthe
hotels focused on resource conservation, education and community involvement. Another
commonfeaturewasthateachcreatednewmanagementpositions(i.e.recyclingmanager,
directorofenvironmentalprograms)orestablishedspecialcommittees(i.e.GreenTeam)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 firms environmental management program. The employees are very
essentialinmakingtheGreenTeamconceptasuccessineveryorganization(Scanlon,2007).
Studies have shown that the Green Team keeps employees involved in a hotels
commitment to the environment by giving employees a voice in creating new policies and
practiceswithinthehotel.Italsoencouragesvolunteerismpromotinghighinvolvementand
boosting employee morale and truly makes a difference in the hotels environmental
performance(Heney,2009).
o Energyefficiency
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,ventilationandairconditioning)andlightingaccountfor75%oftotal
hotel energy use (Chan, Mak, Chen, Wang, Xie, & Hou, 2008). For the past two decades,
hotelshavebeencontinuouslyimplementingelectricityusereductionmeasures.Theusual
simple measures include using fluorescent bulbs instead of incandescent bulbs, replacing
windowsoraddinginsulationtocutheatingandcoolingcosts,andincludingmotionsensors
andtimerstoreducepoweruse(Miller&Washington,2008).
Energy conservation measures can also be done through implementing an energy
managementsystem.Thisisasystemthatmonitorsenvironmentalandsystemloadsand
adjusts HVAC (heating, ventilation and air conditioning) operations accordingly in order to
conserveenergywhilemaintainingcomfort(USEnvironmentalProtectionAgency,2006).In

30

hot regions, airconditioning is the main factor for energy use. There are a lot of
technologicaladvancesforreducingorutilizingsolarenergythathaveenteredthemarket.
Thisincludecoatedglassofvariouskinds,triplevacuumglazing,switchableelectrochromic
windows and solar control films. These reduce heat entering the rooms and can lower
energyuseforcooling(Chan,Mak,Chen,Wang,Xie,&Hou,2008).

o Resource&wastemanagement
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
throughwasteprevention,recycling,orpurchasingrecycledandenvironmentallypreferable
products(USEnvironmentalProtectionAgency,2006).Recyclingprogramsinhotelcankeep
asmuchas80%ofwastefrombeinglandfilled(Miller&Washington,2008).
Energy,resourceandwastemanagementcanleadtohelpingreduceemissions,whichisalso
oneoffthemaingoalsofsustainablehotelpractices.Emissionsusuallycomeintheformof
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
EnvironmentalProtectionAgency,2006).
o Sustainablesupplychain
Sustainablesupplychainmanagementistheuseofpurchasingpoliciesandpracticestohelp
realizeacompanyscommitmenttotheenvironment.Itusuallyinvolvesacollaborationof
the supply chain members particularly between the companies and their suppliers that
provideproducts,servicesandinformation.Thewillingnessofbothpartiestocollaborate
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
forcedcompliancestrategythroughsettingperformancestandardsandgoals.Factorssuch
astypeofbusiness,levelsofcompetition,sizeandinfluenceofthebuyerandsupplierhelp
determineifthecompanywouldadopteitheracollaborativeorforcedcompliancestrategy
(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 companys environmental goals. The issues to be
coveredbythissetofcodesincludeissuessuchasworkplaceconditions,productmaterials,
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 CurrentEnvironmentalBusinessPracticesinHotels
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
managerscanusetheexamplesasatoolforreflectingonwhichenvironmentalstrategyis
relevantandpossiblyapplicableforadoption,consideringthehotelscurrentconditions.
One example of a hotel that has clearly adopted the ecoefficiency strategy is Doubletree
Hotel and Executive Meeting Center in Portland, Oregon. The strategy is evidenced in its
sustainableresourcemanagementprogram,whichhasbroughtdowncostsofoperationand
has a change in organizational processes. Its waste disposal volume has been reduced by
sixtyfivepercentintenyears.Othersupplementaryeffortsincludesellingwastekitchenoil
to biodiesel producers, maintaining small inventories, donating excess food to a local
shelter, preferring reusable containers to disposable one, and having a papersaving
program. The success of the program is attributed to its integration into the business
philosophy.Accordingto theGeneralManager,SteveFaulstickTheDoubletreesprogram
startsatthetop,withmanagementspersonaldedicationtogreenness(McPhee,2006).
Movenpick hotels and resorts is a chain that has implemented the beyondcompliance
leadership strategy as it focuses on differentiation through organizational processes.
Sustainabilityistreatedasatoppriority ofalloperationsinthehotel.Asevidence,ithas

32

achievedtheGreenGlobecertificationforallits21hotelsinEurope.Itsinitiativesinclude
using biodegradable products such as biodegradable pens, wooden key cards, ecological
bathroomamenitiesandusingfairtradecoffee.Itsfoodislocallysourcedandorganic.Its
employeesinall21hotelsinEuropeundergosustainabilitytrainingandaregivenaccessto
itselearningtoolkittolearnmoreaboutsustainability(EuromonitorInternational,2012).
Anotherhotelthatisagoodexampleofhavingabeyondcomplianceleadershipstrategyis
the InterContinental Grand Stanford Hong Kong, which has a clear environmental vision
created in 1999. Its initiatives haveincludedinstallation ofdigital thermostatsin allguest
rooms, water purification systems, an ISO environmental management system and a
buildingmanagementsystem.Itsavedover650,000,between1999andOctober2005.Its
greatstaffmoraleanddedicationhasimproveditspublicimage,increasingthehotelspublic
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
worldsfirstfullyLEED(LeadershipinEnergyandEnvironmentalDesign)certifiedhotelchain
for Healthy Active guests sensitive to Green and Sustainable issues. This hotel chain is
implementing the ecobranding strategy by focusing on differentiation in its products and
services.Thedifferentiationisveryevidentfromthefactthatalltheninehotelsinthechain
are mandated to be built ecologically and seek for LEED accreditation. They market the
hotelatmosphereasmodernandsociable,aswellasbeingenvironmentallyfriendly.Ithas
incorporated ecofriendly materials in construction, furnishing and energy conservation,
bringinginhigherprofits(EuromonitorInternational,2011).
EnvironmentalcostleadershipisseenintheexamplesbelowforRezidorsRadissonSASand
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
payoffandeventuallybringthecostsdown,givingthehotelaclearcompetitiveadvantage
fortheyearstocome.
Rezidorhas21RadissonSAShotelsthatitconsidersasbestpracticeexamplesofresponsible
businesspolicyimplementation.Ithasinvestedincostsavingmethods.InBeijing,Chinaa
steamrecoverysystemwasinvestedin,whichhadathreemonthpayback.Combinedwitha

33

greywatersystem,thetwosystemsresultinannualsavingsof5,000.InIstanbul,40solar
panelswereinstalledwithanestimatedpaybackperiodoftwoyears.InMalta,25%ofthe
energyutilizedbythehotelisderivedfromsolarpanels.InStavanger,Norway,twohotels
were able to reduce energy consumption by 9 percent through a single energysaving
campaign.InIreland,itschemicalandlaundrysupplieswerereducedby50%(Bader,2005).
Crowne Plaza Copenhagen has a carbonneutral 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 paperprinted information material are history as all
informationisdeliveredelectronicallythroughaninteractiveTVscreeninformationsystem.
AllofthehotelsITinfrastructurehasbeenselectedbasedonenergyframeandrecyclability.
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 postmix beverage over bottled
beverages(CrownePlazaCopenhagenTowers,2010).

2.3 Conceptualframework
Having discussed rationale behind environmental management, the factors and the actors
influencing department managers perceptions and possible suggestions and the general
managersdecisionsonanenvironmentalstrategy,thissectiondiscusseshowthesewillbe
relevantandhowitwillleadtotheanswersforthestudysresearchquestionandobjectives.

34


Figure5:ConceptualFramework
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 companys 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
ultimatelyselectsastrategyfordependslargelyonthecurrentconditionsofthefactorsand
actorsthataresaidtoinfluencethegeneralmanagersperceptions&decisionaswellasthe
department managers perceptions and suggestions. The latter are taken into account
beforedecidingonastrategy.
The current states of the factors, namely, environmental legislation, resources and
capabilities and opportunities and challenges all influence the department managers
perceptions and suggestions on environmental efforts as well as the general managers
decisioninselectingastrategy.Inadditiontothefactorsmentioned,itisimportanttonote
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
theirsuggestionsinaccordancewiththestakeholdersviews.Thisthenallowsthegeneral
managertoselectaworkablestrategyconsideringcurrentconditionsofthefactorsandthe
actors,allowingthecompanytogaincompetitiveadvantage.
The department managers will play a significant role in giving out information about the
differentfactorsdescribedabove,includingthecurrentconditionsofthebusiness,business
environment and the local legislation. The suppliers and employees views will allow
management to point out recommendations for business activities involving both
stakeholdergroups.Thecustomersviewswilleitheraffirmordenytheperceivedideasof
managementregardingthemarketandwillhelpmanagementchooseastrategythatwillfit
thedemands.
Recommendations for the four action areas of green program structure, energy efficiency,
resourceandwastemanagementandsustainablesupplychainarethenbepresented.The
recommendations were derived from the thoughts of the managers and the views of the
threestakeholdergroups.Therecommendationswillstandasanotherfactorandbasisfor
thegeneralmanagersdecisiononthechoiceofcompetitiveenvironmentalstrategy.Itwill
also be useful for further planning and implementation of the firms environmental
managementefforts.

How the strategies will be selected depend largely on the department managers
perceptions and suggestions on the current environmental position and efforts of the
companyandthecurrentconditionsofthefactorsandactors.
Four sets of combinations of different factors and actors conditions, ideal for each
competitiveenvironmentalstrategyarepresentedbelow.Thesetsofcombinationsactas
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
recommendedasthestrategythatthehotelcanadopt.
The general managers decision on a competitive environmental strategy depends on the
followingfactors:

36

o Departmentmanagersperceptionsandsuggestionsonenvironmentalefforts
o Stakeholdersviewsanddemands
o Environmentallegislation
o Availabilityofresources
o Environmentalknowledgeandcapabilitiesofthefirm
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
managerstosuggestandthegeneralmanagertoselectacertaincompetitiveenvironmental
strategies.
o Ecoefficiency
Ecoefficiency strategy is geared towards cost savings through resource use reduction
(McDonough&Braungart,2000).Thestrategycanbeselectedifthemanagershavepositive
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
firmhaslowinfluenceonitssuppliers.
o BeyondComplianceLeadership
This strategy can be selected if the managers have a growing concern in environmental
managementandareinterestedinmovingtowardsadoptingaproactiveapproach.Thisis
also ideal if there is a demand from shareholders, and customers and openness among
employees in terms of implementing environmental efforts and regulations on
environmentallegislationarepresentandsupportiveofcompaniespursuingenvironmental
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
financeenvironmentalinvestmentsintechnologyandorganizationalchangesandifthefirm
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
strengtheningties.

37

o Ecobranding
Thisisthestagewhereinthefirmisreadytofurtherexploreopportunitiesforenvironmental
differentiationintermsofproductsandservices,whichcouldfurtherprovideacompetitive
advantage(Orsato,2006).Theecobrandingstrategyrequiresthatmanagershaveastrong
interest and are willing to adopt the proactive approach in environmental management.
Thisstrategybestfitsafirmwhoseshareholdersandcustomershaveastrongdemandandif
its employees have a high interest in the firms environmental performance. When
environmentallegislationispresentandnotverystrictbutideallysupportiveofcompanies
pursuing environmental efforts, this strategy is ideal. Moreover, adequate resources to
financeenvironmentalinvestmentsintechnologyandorganizationalchangesarerequired.
Knowledge about environmental management and environmental technologies and access
toexcellentknowledgeprovidersandconsultancyservicesforenvironmentalmanagement
are also important. Strong supplier ties and willingness for collaboration among suppliers
arealsoneededtobesuccessfulinthisstrategy.
o EnvironmentalCostLeadership
The pattern of the factors level of importance here are similar as that of ecobranding
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
strategyisidealifthefirmhasabundantresourcestofinanceenvironmentalinvestmentsin
technology and organizational change and if the firm is highly knowledgeable about
environmental management and environmental technologies and have access to excellent
knowledgeprovidersandconsultancyservicesforenvironmentalmanagement.Lastly,this
strategycanbeselectedifthereisanadequatenumberofsuppliersandstrongsupplierties
withastrongwillingnessforcollaboration.
Havingpresentedtheidealconditionsfortheselectionofastrategy,itisimportanttonote
thatthestrategiesareindependentandarenonlinearfromeachother.Thismeansthata
firmcansurpasstheadoptionoflowerstrategiesandselecthigherstrategiesifitiscapable
ofadoptingit.Itisalsopossibleforafirmtoswitchfromonestrategytoanother,regardless
ofwhetheritisfromalowerstrategytoahigheroneorviceversa.

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 ResearchDesign
The research design addresses four areas in order to acquire good findings and draw a
reliableconclusion.Thesefourareasdealwiththequestionsofthestudy,therelevantdata,
thedatatobecollectedandhowtoanalyzetheresults(Yin,2003).
Therearefivecomponentsofaresearchdesignforcasestudies.Thesearethe(1)studys
questions,(2)itspropositions(ifany),(3)itsunitsofanalysis,the(4)thelogiclinkingdatato
thepropositionsandthe(5)thecriteriaforinterpretingthefindings.Theunitsofanalysis
aredeterminedoncetheprimaryresearchquestionshavebeenspecified.Thedesigntells
whatistobedoneafterthedatahavebeencollected,asindicatedbythelogiclinkingthe
datatothepropositionsandthecriteriaforinterpretingthefindings(Yin,2003).
Implementing an environmental management program requires that an environmental
strategybeselectedinorderforthefirmtoknowhowtorespondtoenvironmentalissues
andhowtousesuchissuesasacompetitivetool(LopezGamero,MolinaAzorin,&Claver
Cortes,2010).Thustheresearchquestionisthefollowing:Whatcompetitiveenvironmental
strategycanMarcoPoloDavaoadoptforitsenvironmentalmanagementprogram?
Thenatureoftheresearchquestioncallsforanexploratorystudydesign.
Exploratory research is primarily concerned with discovery and with building theory (Jupp,
2006)asopposedtoexplanatoryresearch,whichusuallyseekscausalrelationshipsamong
variables(Vogt,2005).Exploratoryresearchisusuallyemployedwhendecidestoworkona
littleresearchedarea,orisdevelopingmethodsforalatermoreformalstudy.Itisoftena
precursortoalargerprojectthatinvestigatesseveraldifferent,butrelatedareas(Williams

39

M.,2003).Sincethereisbarelyanypreviousstudydoneonenvironmentalmanagementfor
theselectedhotel,theresearcherfirmlybelievesthatthisisanexploratorystudy.
Asinglecasestudydesignisappropriatewhenitrepresentsthecriticalcaseintestingawell
formulated theory (Yin, 2003). Studying views and opinions of management and other
stakeholder groups was conducted for single case chainedhotel in the Philippines, the
MarcoPoloDavao.
The case is selected because it is an internationally chained, fullservice hotel in the
Philippines. International hotel chains are by and large, the ones who have sustainability
programs,oratleasthaveenvironmentaleffortsputinplace.Theyalsotypicallycommand
a greater share of the market because of their high level of standards and consistency in
services.Thispushesthemtocontinuallyinnovateandfindwaystomaintainandimproveits
marketperformanceinordertobeabletocompetewiththeothers.Withconsiderationto
the current market, which ranks low on sustainability, studying a hotel that is part of an
internationalchainwouldbeadvantageousbecausethereisagreaterchancethatitwould
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
environmentaleffortsintheirbusinesses,bringingthemarketsenvironmentalperformance
toahigherlevel.
The single case design is chosen to answer the abovementioned objectives in order to
suggestacompetitiveenvironmentalstrategyforatypicalchainedhotelinthePhilippines.
The rationale behind the decision to adopt a single case design is to test theory that is
considered to influence the general managers decision in choosing a competitive
environmental strategy and draw conclusions on what environmental strategy to suggest
(Yin,2003).Atestingandanalysisprocessthatmaybeapplicableforatypicalchainedhotel
inthePhilippines
Theunitofanalysischosenwillbe14managersfromdifferentdepartmentsofthehotel,the
generalmanager,afewsuppliersandasampleofemployeesandcustomers.

40

Thefindingsofthestudyisdeemedsuccessfulifitmatcheswiththeory,meaningthatthe
intervieweesagreewithwhatisgenerallysaidintheoryandthatthesurveyresultsconfirm
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 PhilosophicalConsiderations
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
questionthroughtheframeworksguidingstructureandtools(Wills,2007).Itdefineswhat
the research is about and what falls within and outside the limits of legitimate research
(Voce,2004).Itthenfollowsthatthemethodologies,practicesordataanalysistechniques
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
otherperspectives(WilliamsE.,1998).
The research paradigms are positivism, interpretivism and critical theory. Positivism and
interpretivismaredifferentinsuchawaythatinterpretivistresearchgoalsareusuallyaimed
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
theworldorconstructmeaning.Thegoalistoseektoknowwhythingsarehappeningina
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
conditionsofasocietyandanunderstandingofwhythingsoperate(Pope,2006).Inductive
reasoning is used here. Methodologically, the researcher plays a role of being the co
creatorofmeaning.Asthestudyisoneofexploration,theresearcheralsobringsherown
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
wholephenomenon.

41

Inthisstudy,interpretivismisappropriateasthenatureoftheknowledgearederivedfrom
observablephenomenainthechosenhotel.Itisacknowledgedthatthepersonsconcerned
have subjective views on the importance and feasibility of having an environmental
managementprograminplace.Ittakesonrealityandhowpeoplelookatthesituationas
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
createadeeperunderstandingofthephenomenon.

ResearchApproach

Inductionanddeductionarevaluabletoolsthatfacilitateproblemsolving.Onelooksatthe
general characteristics in a set or group of observations (deduction). The other one
identifiesaparticularresemblancetoagroupofknownobservations(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
conclusionasderivedfromreasoning(Rothchild,2006).Inductionisputtingintoanorder
orrulethefeaturesoracombinationthereofthatarefoundinthedatamaterial.Itdeals
withextendingandgeneralizingtheinformationavailable(Flick,Ernst,&Steinke,2004).In
qualitative induction, the existence of qualitative features in a sample is used to infer the
presenceofotherfeaturesthatarenotperceived.Allscientificproceduresthatarefound
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
thisstudy.Thisisbecauseitisessentialtofirstlookintothecurrentfactsandtheviewsof
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
organizationandnotonlyforaspecificdepartment.Fromthespecificindividualinterviews,
wecombinetheresultsthecommonfeaturesthatwerenotinitiallyperceivedwereputinto
order.

42

3.3 DataCollectionProcess
Methodologyshapeswhichmethodsareusedandhoweachmethodisused(Silverman,
2005).Therearetwomethodologiesinresearch,quantitativeandqualitativeresearch.Both
havedifferentstrengthsandlogics,whichareappropriatefordifferentpurposes.
Quantitativeresearchreliesontheattainmentofaprecisemeasurementofsomethingfor
descriptions,explanationsandpredictionsaboutaphenomenon.Inordertoattainaprecise
measurement, its sample design is usually large and based on probability. The research
design,selectedbeforestartingthestudy,remainsconsistentuntiltheend.Eithersingleor
mixed methods are used in quantitative research (Cooper & Schindler, 2011). The most
common methods of data gathering are by conducting surveys and experiments. Survey
resultsprovideanumericdescriptionofasample,inwhichresearchersgeneralizefindings
to a population. In experiments, causeandeffect relationships are tested. Experimental
variables are manipulated by the researcher and are determined whether it influences an
outcome(Cresswell,1994).Statisticalandmathematicalmethodsareusuallyusedfordata
analysis,maintainingacleardistinctionbetweenfactsandjudgments(Cooper&Schindler,
2011).
Qualitative research is done in order to understand and/or interpret a phenomenon. The
researchertakespartindatagatheringandoftenimmersesoneselfintheissuetoprovidea
detaileddescriptionofwhatiscurrentlytakingplace.Thesamplesizeisgenerallysmalland
itsresearchdesignisadjustedthroughoutthestudy(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
donesimultaneously.Dataisregularlyintheformofverbaldescriptionsanddataanalysisis
ongoingthroughoutthecourseofthestudy(Cooper&Schindler,2011).
Qualitativeresearchclaimstodescribetheworldfromthepointsofviewofthepeoplewho
participate.Thismethodbringsabetterunderstandingoftheprocesses,meaning,patterns
and structural features of social realities (Flick, Ernst, & Steinke, 2004). The inductive
approachofqualitativeresearch,withitsfocusonspecificsituationsorpeople,andwords
ratherthannumbers,givequalitativeresearchitsstrength(Maxwell,1996).

43

Themixedmethodologydesigniswheretheresearchercombinesaspectsofthequalitative
and quantitative methods at all or many methodological steps in the design (Cresswell,
1994).Inthiscase,theresearcherisinterestedinmeaningsandrelationshipsbetweenthe
managersviewsanddifferentfactorsandactorsaffectingtheirdecisionsandthesuppliers
views. Qualitative methods were employed in finding out the said meanings and
relationships.Moreover,asurveywasalsoconductedamongemployeesandcustomers,in
ordertobeabletoclearlypointoutthedifferencebetweenfactsontheirviews,asshown
bythesamplesresultsandjudgmentsasstatedintheory.Therefore,bothqualitativeand
quantitative data were collected, making the study a mixedmethod research. The study
usesmethodologicaltriangulationasamethodofprimarydatacollection.Triangulationis
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
credibilityoftheevidencecollectedandconclusionsmade(Cresswell,1994).
Thepurposeofthestudyistounderstandthemeaningoftheevents,situationsandactions
oftheparticipants,namelythemanagersinthisparticularcontext.Theirperspectiveonthe
differenteventsandactionsrelatedtothephenomenonbeingstudiedispartofthereality
thatwearetryingtounderstand.Theresearcherisalsointerestedinhowtheparticipants
are making of their understanding of the current factors and conditions concerning the
hotelsenvironmentaleffortsandhowthoseareinfluencingtheirbehaviortowardsthose.
The purpose were mainly addressed by conducting qualitative interviews with managers.
This means that the qualitative method of conducting interviews predominates the
quantitativemethodtobeemployed,whichareintheformofsurveys.Thesemethodshelp
determine common themes and detect patterns and relationships on the views of the
different stakeholder groups. This mixedmethod research is done to increase the
representativenessofdata(Silverman,2005).
The goal of the study is to suggest a competitive environmental strategy for Marco Polo
Davaobylookingintothefactorsthatinfluencethegeneralmanagersdecisions.Withthe
managersbeingthemaindecisionmakers,theinterviewswiththemanagersaretherefore
theprimarymodeofthedatacollectioninthisresearch.Supportingdatawerealsoderived
frominterviewswithsuppliers.Anothermethodofdatacollectionemployedwasthesurvey

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.Hotelstaffhelpedingivingoutthesurveysforemployeesandcustomers.
Secondarysourcesincludeexaminationofcompanybriefingsandreportsandthecompany
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
usuallyofopenendednature,inwhichtheopinionsandeveninsightsandproposalsofthe
keyrespondentsaboutspecificeventsandphenomenonaresought.Itcanalsobeafocused
interview where questions are specifically worded so that there are less subjective input
fromtheresearcher,allowingtherespondenttopossiblyprovideadifferentperspectiveon
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
providesindirectinformationfilteredthroughtheviewsofinterviewees.Itisalsosaidto
provideinformationinadesignatedplace,ratherthanthenaturalfieldsetting.Researchers
presencemayalsobiasresponsesanditshouldbeconsideredthatnotallpeopleareequally
articulateandperceptive(Cresswell,1994).

Interviewwithmanagers

Facetoface interviews were conducted at the managers offices in Marco Polo Davao,
during office hours. Semistructured interviews were conducted with the selected
managers. This form was selected to allow the managers to talk about the topic, as the
researcherwouldbenefitfromhearingtheiropinions,insightsandproposals.Sinceitisof
anopenendednature,thereisroomforthemanagerstoproposetheirinsights,whichcan
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

researcherfollowedthedesignedlineofinquiryandaskedquestionsinanunbiasedmanner
with friendly and nonthreatening openended questions (Yin, 2003). This eliminated
defensivenessandallowedtheresearchertoopenlyspeakabouthis/herinsights,proposals
andsuggestions.
Themanagersinterviewwasof3parts.Inthefirstpart,themanagerswereaskedabout
theirjobanddepartmentbackground,includingcurrentenvironmentalefforts.Thesecond
partsoughtinformationabouttheirhowtheyperceivethedifferentfactorsthataffectthe
choice of an environmental management. The last part consisted of a short structured
interview on facilitators and barriers of environmental management. The managers were
presentedalistof13facilitatorsand6barriersandwereaskediftheyconsidereachitemas
afacilitatororbarrier,onlyasasecondaryfacilitatororbarrierornotafacilitatororbarrier
atall.
The managers were selected based on the premise that their job functions allow them to
contributetoenvironmentalmanagementplanningandthedepartmentstheymanagemay
possibly benefit from the adoption of environmental efforts in the hotel. The following
managerswereinterviewed:GeneralManager,TechnicalManager,ExecutiveHousekeeper,
Assistant Executive Housekeeper, Director of Human Resources, F&B Training Manager,
Food&BeverageManager,RestaurantManager,BanquetManager,ExecutiveChef,Director
ofSales&Marketing,FinancialController,PurchasingManagerandtheSecurityDirector.
Inadditiontothefourteen(14)managersmentionedabove,theownersrepresentativewas
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
investmentsoftheownersbymonitoringthehotelsoperations.Heisprimarilyconcerned
with checking budget deviations, capital expenditures and final decisions on recruiting
employees.Heisalsoinchargeofallowingthepresentationofinvestmentproposalstothe
owners.
The managers interviews were mainly done to examine their views on environmental
management and the factors that affect managements decisions. The results from the
interviewswillhelppointoutcurrentsituationintermsofthemanagersviewsandattitudes

46

and environmental management and how they currently perceive the factors. This then
enablesmanagementtohaveapositionintermsofdeterminingastrategyforthefirm.

Interviewwithsuppliers

In addition to the interviews with the managers, four (4) suppliers were interviewed
regardingtheirviewsonsustainabilityandtheirwillingnesstohelpimprovethesupplychain
ofthehotelbymovingtowardsasustainablesupplychain.Theinterviewswerebriefand
semistructured as well. This is used to support the data and to help determine the
advantagesandchallengesthemanagementmaypossiblyneedtoaddressinmakingpolicies
forasustainablesupplychain.

3.5 Surveys
Asurveyprovidesaquantitativeornumericdescriptionofasample.Datacollectioninthis
method generally refers to a sample of people being asked questions on one occasion
eitherorallyorthroughaquestionnaire.Themainpurposeofthesurveysconductedinthis
study is to obtain descriptive statistics, which reflect the populations view (Cramer &
Howitt,2004).

Surveyforemployees

Although this thesis deals about the possibility of adopting strategies and in addressing
issuesinthecompanyaspointedoutbythemanagers,thefactthattheemployeesplaya
vitalroleinrealizingacompanyssustainabilitystrategiescannotbeneglected.Thus,ashort
surveywith5questionswasgiventotheemployeestodeterminetheirviews,attitudesand
willingness to participate in a sustainability program. This is to help determine if the
employeesarewillingandinterestedineducationandtrainingandbeengagedinthehotels
sustainabilityprogram.Theanswerstothequestionsweremainlyintheformofyesandno.
o Surveyforcustomers
Customersbringinrevenuetoanybusiness.Inaserviceorientedinstitutionlikeahotel,itis
important to know the customers demands and interests. This will enable the hotel to
designitsenvironmentalplans,withthecustomersinmind.Shortinterviewquestionnaires
with 7 questions were handed out to customers and prospective customers. This method

47

helpedtheresearcherfindoutifthereisgeneralinterestongreeneffortsamongtheguests
andifthereiswillingnesstopaymoreforit.Theanswerstothequestionsareinayesand
noformat.

3.6 DataAnalysis
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
compiledandbrokendownintocodesorcategories.Thecodeshelpidentifythepatterns
and themes from the perspective of the interviewees. Themes for analysis were drawn
fromtheorganizedcodes(Cresswell,1994).ThesetofanalyticmanipulationsbyMilesand
Huberman (1994) was followed in order to successfully organize the data collected. The
methodinvolvessettingtheinformationintodifferentarrays,layinginformation/evidencein
differentcategories,creatingflowchartsforanalysis,tabulatingthefrequencyofeventsand
findings,andlastly,puttingtheinformationinorder(Yin,2003).
Quasistatistics 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
amountofthedatathatsupportsaparticularconclusionordiscrepantinstances(Maxwell,
1996).Anexampleofthisistodeterminewhetherintervieweesshowapositiveattitudeor
a negative attitude toward sustainability and from how many different sources the
informationwereobtained.
Descriptive statistics summarizes and compresses data to identify essential characteristics.
Basicstatisticalmethodsandmeasuresareusedtosummarizelargesetsofdata,whichlead
tomakingdescriptivestatementsaboutindividual,groupsorsocieties(Pierce,2008).Forthe
surveys,themodeisusedasthemeasureofcentraltendencytointerpretthedata.
The abovementioned procedures for data analysis are done in chapter 5 Findings &
Analysis.

48

3.7 Reliability&Validity
Unlessyoucanshowyouraudiencetheproceduresyouusedtoensurethatyourmethods
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 socalled validity threat,
whichisyoumightbewrong,isthekeyconceptforvalidity,whichoftencomesintheform
ofalternativeexplanations.Inqualitativeresearch,mostvaliditythreatsareruledoutafter
usingevidencecollectedduringtheresearch(Maxwell,1996).
Tostrengthenthevalidityoftheory,thediscrepantdataandalternativeexplanationswere
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).
Reliabilityisthedegreeofconsistencyinwhichinstancesareassignedtothesamecategory
eitherbydifferentobserversorbythesameobserversondifferentoccasions(Hammersley
ascitedin(Silverman,2005)).Itisademonstrationthatthedatacollectionproceduresof
the study can be repeated and will yield the same results. Reliability has the goal of
minimizingerrorsandbiasesinastudy(Yin,2003).
To secure the reliability of the study, the context in which data were gathered, including
focusofthestudy,theroleoftheresearcher,theprofileoftheintervieweesandbasisfor
selection are stated clearly (Cresswell, 1994). Proper documentation of data collection
proceduresandconsistentuseofcategoriesarepresented,togetherwithadetailedreport
of analysis (Silverman, 2005). Triangulation, as explained above, is used to support the
reliabilityofthestudy.
External validity refers to the validity of a conclusion beyond the setting being studied
(Maxwell,1996).Inthisstudy,externalvalidityisnotacrucialissuesincethegoalisnotto

49

generalizethefindingstootherhotelsintheindustrybuttoexplainwhatisgoingoninthe
particularsetting.Whatwillbeuncoveredinthisstudywillbeapplicableonlyforthiscertain
case and is not generally true for and will not be applied to other organizations in the
industry since theunderlying factors for thestudywillbe different. However,the theories
derivedfromthefindingscanbeusedasabasisforcomparisoninsimilarfuturestudies.

3.8 Limitations
Thestudyissubjecttoafewlimitations.First,thefindingsarederivedfromthecaseofa
particularhotelandtheanswertotheresearchquestion;specificallytheselectedstrategy
may only be applicable for the selected hotel. However, the general results on the sub
questionspertainingtothefactorsandactorscanbeusedforhotelinasimilarsituation,size
orbusinessenvironment.Second,theremaybebiasesintheanswersofthemanagers,in
orderfortheorganizationsperformanceandimagetolookbetterthanwhattheyreallyare
inreality.

50

4. TheCase
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
gatheredfrommarketreports,companybriefings&interviews.

4.1 ThehotelindustryinthePhilippines
ThePhilippinehotelindustryhasincreasedinvalueby12%in2010.Itstotalvalueisnowat
PHP60.4billion.ForecastfiguresshowthatthehotelindustryinthePhilippinesisexpected
togrowfurtherfromPHP60.4BilliontoPHP88.2Billionin2015.Chainedhotelsaccountfor
majorityofthemarket,at58%(EuromonitorInternational,2010).
Marco Polo Davao is located in the third largest city in the country in terms of population
andeconomicrevenues.ItisalsothemainbusinesscenterintheislandofMindanao.The
overallregionisgrowingandthehoteltakesadvantageofthisgrowthinthecityandnearby
provinces(Mauhay,2012).

4.2 TheHotel
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 firstclass
accommodationinDavaoCityandtoalsocontributetothegrowthofDavaoandMindanao
asapremierdestinationinthePhilippines(MarcoPoloDavao,2012).Ithasbeenandisstill
thelocalbenchmarkintheareashotelindustry.
It has 245 rooms, which it maintains and operates up until this day. Its room rates are
normally25%higherthanitsmaincompetitorsinthearea,notablytheApoViewHoteland
theWaterfrontInsularHotel(Mauhay,2012).Despiteitshighroomrates,itremainstobe
themarketleaderinthearea.Thisisattributedtothehotelshighinternationalstandards
andforbeingtheonlyhotelinthecitythatispartofaninternationalchain(Mauhay,2012).

51

4.3 BusinessModel
TheMarcoPoloDavaoisalocallyownedproperty(byHalifaxDavaoHotelIncorporated)and
ismanagedbytheMarcoPoloHotelGroup.Thismeansthatallitsstandardsandbusiness
operations are in accordance with that of the prescribed model by Marco Polo Group
(Serafin,2012).
TheMarcoPologrouptakesprideinitsembodimentofAsianwarmthandWesterncomfort.
IthasninepropertiesinAsiaanditisnowestablishedasoneoftheleadinghotelbrandsin
the region (Marco Polo Davao, 2012). Ms. Jonna Serafin, the HR Director, said in an
interviewthattheMarcoPoloGroupisopentoembracingchangeifitisforthebetterment
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 preapproved by the Marco Polo Group before
implementingthechanges(Serafin,2012).
Marco Polo Davaos client base comprised of 80% business customers and 20% leisure
customers. Of its business customers, 90% are from domestic arrivals while 10% are
internationalarrivals.Thus,itsmaintargetmarketiscomposedofbusinesstravelersfrom
locallybasedcompanies(Mauhay,2012).

4.4 Currentbusinesssituation
Marco Polo Davao is currently the market leader in the city. Its market share in terms of
revenueisat38.77%YTDJune2012(MarcoPoloDavao,2012).
Although the business has been growing steadily since its establishment, it is anticipating
toughercompetitionin2013.Withtheregionshighgrowthrate,twoboutiquehotelsare
currentlybeingbuiltandaresettoopeninDavaoCityinthefirstquarterof2013.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
marketthanthatofMarcoPolo.Itisexpectedtofillinthegapbetweentheratesofferedby
MarcoPoloanditscurrentclosestcompetitors.MarcoPolowillstillserveitscurrentmarket
andisnotplanningtoloweritsratesinordertomaintainitsimageandstandards.Itexpects

52

to continually be a notch above its current and prospective competitors in terms of the
brand, amenities (i.e. Marco Polos 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
corporateclientsandarrangingtieupdealswithtouroperatorsandresortsinthearea.Ms.
Mauhayhowever,admitsthattheyhavetoexploremoreeffortsforthehoteltoberesilient
to tougher competition and for it to be able to maintain a good financial position despite
upcomingmarketchallenges(Mauhay,2012).
Thedepartmentsandmanagersunderstudy
MarcoPoloDavaohasamanpowercomplementof326,with277(85%)regularemployees
and 49 (15%) contractual workers (Serafin, 2012). It has nine departments, which are all
beingsupervisedbythedesignatedgeneralmanager.TheseninedepartmentsareFoodand
Beverage,FrontOffice,Housekeeping&FitnessCenter,Sales&Marketing,Finance,Human
Resources,TechnicalandSecurity(MarcoPoloDavao,2012).

4.4.1 CurrentenvironmentaleffortsofMarcoPoloDavao
Thehoteliscomplianttolocalgovernmentenvironmentalrequirementsasmandatedbythe
DavaoCENROortheCityEnvironmentandNaturalResourcesOffice,undertheDepartment
of Environment and Natural Resources (DENR). The CENRO Office has set guidelines for
waste segregation, wherein all waste should be segregated into biodegradable, non
biodegradableandresiduals(i.e.sachets,deodorantbottles).InlateJune2012,ithasalso
startedtoimplementthebanontheuseofplasticbagsinthecityandinstead,promotesthe
use of paper bags or biodegradable plastics. These are the only legislations that are
currentlyinplacethatthehoteladheresto.Atpresent,thesegregationisputinplaceinthe
F&BandHousekeepingdepartments.
MarcoPoloDavaosubscribestotheCorporateSocialResponsibility(CSR)Frameworkofthe
MarcoPoloGroup.Ithasenvironmentalmeasuresputinplace,whicharenotrequiredby
thegovernment.ThishasledthehoteltoreceivetheASEANGreenHotelAwardin2009.
These efforts are discussed in the following section and presented by department
implementation.

53

Administration

Accordingtothegeneralmanager,thehotelscurrentenvironmentalactivitiesarerelatedto
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
dependentontheownerswillingness.Hethinksthatthereshouldbecompanypoliciesfor
decisionsonenvironmentalinvestments,asthereisnoclearpolicyinplaceatthemoment.
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,theproposalsforinvestmentsinenvironmentaltechnologies.Underthefinance
departmentisthepurchasingdepartment,inchargeofitemsandsuppliesprocurementfor
thehotel.Thepurchasingmanagersaidthathisdepartmentdoesnotdirectlydoanything
towardsbeingenvironmentallyfriendly.Thepurchasingdepartmenthashighstandardsfor
itssupplierstocomplywith.Itdoesroutinecheckupswiththeproductsandfacilitiesofits
suppliers, especially for food and beverage suppliers. For meat suppliers, they only select
thoseaccreditedbytheNationalMeatInspectionServiceandpreferGMPHACCPaccredited
suppliers for the other products. GMPHACCP 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 consumers health
(Philippine Exporters Confederation Inc., 2011). Other than being strict on workplace
environment and product hygiene, the department does not require other specific
environmentalrequirementsfromitssuppliers.

TheDirectorofsalesandmarketingsaidthatthedepartmentisinchargeofCorporateSocial
Responsibility(CSR),whichfocusesmoreonsocialefforts.Itisalsoinchargeofintegrating
green marketing into its campaigns. However, it is not currently very active in these two
areassinceitisanticipatingtheentryoftwonewmajorcompetitorsinthemarketandits
mainconcernatthemomentistomaintainitscurrentmarketshare,
TheHumanResourcesDirectorsaysthattherearenocurrentprogramsatthedepartment
aside from staff training in order for the hotel to be able to successfully implement its

54

compliance to governmentmandated legislations on waste segregation and nonuse of

plastics.

Food&BeverageDepartment

ForF&BOffices,theypracticerecyclingandreductionofpaperused.Thetrainingmanager
dealswithintegratingsafetyandhygienepracticesintothetrainingprograms,especiallyfor
newhiresandonthejobtrainees(OJT).TheF&Btrainingmanageralsoorganizesseminars
andtrainingsfortheF&Bassociatesonbeingenvironmentallyfriendly.
Therestaurantmanagerseestoitthatenergyandwaterconsumptionisreducedasmuchas
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,hygieneandenergytechnologies.Ecolabproductsandservicesaregearedtowards
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
HACCPguidelines.DoingthishelpsthedepartmentprepareforitsapplicationforaHACCP
certification in the near future. The department also pays an external consulting firm,
Intertek,toaudititsperformanceinfoodsafety,watersamples,andfacilities.
Other specific environmental efforts done by the F&B department are enumerated in
AppendixE.

TechnicalDepartment

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
PollutionControlOfficerbytheDepartmentofEnvironmentandNaturalResources(DENR)
anddoesthesameroleforthehotel.Heistheonewhospearheadsprojectsforenergyand
water conservation, including projects on environmental technologies. He said that the
departmentsmaingoalisforenergyusereduction.

55

Under its energy management program, it has replaced its lamps with energyefficient
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
currentlyata70%replacementcompletionrateandtheaimistofinishitwithintheyear.
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 splittype air conditioners to VRF
(Variable refrigerant flow) air conditioners, saving a total of 62, 290 kWh. There is also an
ongoing replacement of existing high rating steam boiler (200 BHP) with a smaller unit
(40BHP),saving18,000litersofdieselfuelperyear.
TheycurrentlygiveusedoiltorecyclerslikeHolcimPhilippineswhoprocessitanduseitas
fuel. They are also starting the practice of bringing used cooking oil to a biogas plant to
convertitintobiofuel.However,itscostsequalitssavingsonfuelexpensesthusthereare
noprofitsfromitatthemoment.
Asidefromhavingtheenergymanagementprogram,thetechnicaldepartmentalsohandles
thesolidandwaterwastemanagementprogram.Solidwastesareeitherputinarecyclable
bin, a biodegradable bin or a residual bin. Recyclables are sorted by scrap buyers and
broughttoscrapbuyingstations.Leftoverfoodfromthebiodegradablebinarecollectedand
fedtolivestock.Theremainingsolidwasteisdumpedatthecitydumpsite.Allofthehotels
wastewateristreatedinasewagetreatmentplant,senttoasewageejectorpitandsentto
thecitydrainagesystem.
Other specific environmental efforts done by the technical department are enumerated in
AppendixF.

SecurityDepartment

The security department is in charge in making sure that the environmental measures are
being carried out correctly. It mainly controls and doublechecks the garbage and if
segregationactionsarecarriedoutright.Forsafetypurposes,italsochecksproperhandling
ofchemicalsduringdeliverybeforeitisallowedinthehotelpremises.Furthermore,itworks
together with the technical department by monitoring if the measures put in place is
properlyfollowedandexecuted.

56

HousekeepingDepartment

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
presentlyrunsaninformationcampaignandtrainingonwastesegregationforassociates.In
compliance to the legislation on nonuse of plastics, bio bags are being used for laundry
bags.
Otherspecificenvironmentaleffortsdonebythehousekeepingdepartmentareenumerated
inAppendixG.

57

5. Findings&Analysis
ThepurposeofthisresearchistosuggestacompetitiveenvironmentalstrategythatMarco
PoloDavaocanemployinitsoperationsbyexaminingthedifferentfactorsandactorsthat
influence the department managers suggestions and the general managers decisions on
environmentalstrategies.Inchapter2,thedifferentcompetitiveenvironmentalstrategies
that companies may adopt in its operations were investigated. Individual manager
interviewswerechosenasthemethodofcollectingdatainordertohaveabackgroundon
thecurrentbusinessconditionsandthehotelscurrentenvironmentaleffortsasdiscussedin
chapter4.Moreimportantly,theinterviewsprovideddataonthemanagersperceptionson
the different factors and actors that influence their suggestions and decisions on
environmental management. Supplier interviews and employees and customers surveys
werelikewisedonetodiscerntheirviewsandopinionsonenvironmentalmanagement,are
deemedhelpfulinsuggestingastrategyforthecompany.
This chapter presents the results of the managers interviews, structured according to the
researchsubquestions.Thisisfollowedbytheresultsandanalysisofdatacollectedfrom
suppliers interviews and employees and customers surveys. A presentation of the
recommendations derived from the data collection process on the four action areas on
environmentalmanagementconcludesthechapter.

5.1 InterviewswithManagers
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
managersstrategicdecisions.Inturn,howtheymaketheirsuggestionsanddecisionsare
influencedbydifferentfactorsandactorsspecifically,thesuppliers,theemployeesandthe
market,asrepresentedbythecustomers.

58

5.1.1 Managersroleonenvironmentalmanagement
As earlier stated, there is a positive relationship between managements perceptions on
environmentalmanagementandtheadoptionofproactiveenvironmentalstrategies(Lopez
Gamero,MolinaAzorin,&ClaverCortes,2010).
The interviews commenced with an investigation on the managers familiarity with
environmentalmanagement.Elevenoutofthe15managerswhowereinterviewedclaimed
thattheyarefamiliarwithenvironmentalmanagementandliketheidea,especiallythatthe
hotelalreadyhasenvironmentalmeasuresputinplace.Despitetheirperceivedfamiliarity
withthetopic,uponfurtherdiscussionswiththemanagers,itwasascertainedthatmostof
themonlyhadageneralfamiliaritywiththetopicanddidnotunderstanditfully.Inferred
fromthecommonresponsethattheyarenotexpertsonthefield,moreeducationisneeded
andthatthereisnoclearsystematthemoment.
The department managers pointed out that they are willing to be engaged and suggested
actionsforenvironmentalissuesfacedbytheirdepartments.Thegeneralmanagerargued
that for the hotel to be successful in its environmental efforts, all departments must be
involved.Thismeansthegeneralmanagerwillconsiderthesuggestionsofthedepartment
managersinmakingenvironmentaldecisions.Thegenerallypositiveviewonenvironmental
management by the majority of the managers indicate that Marco Polo Davao may
potentiallydrawonenvironmentalissuesasaplatformtogaincompetitiveadvantages.

5.1.2 Factors influence on managers decisions in the choice of an

environmentalstrategy
o EnvironmentalLegislation
As earlier pointed out, a positive view on environmental legislation facilitates the firms
exploitation of environmental management as an opportunity (LopezGamero, Molina
Azorin,&ClaverCortes,2010).
Thehotelisdoingitsbesttomakeendsmeetandcomplywithinthesoonestpossibletime,
despite complaints from some managers regarding the implementation procedures of
governmentagenciesonenvironmentallaws.Thegeneralmanagerpointedoutthatthere

59

shouldbeatransitiontimegivenforthehoteltomakeplansforitsinventoryandintegrate
therequirementsofthenewlegislationintothebudget.
Most managers maintained that they are not bothered by the possibility that stringent
governmentstandardsmayhinderthehotelscompetitiveness.Theypreferstandardstobe
put in place, as long as information is widely disseminated and the implementing are, in
considerationtotheneedsofthebusiness.
The findings show that environmental legislation directly influences the managers
suggestionsanddecisionsinselectinganenvironmentalstrategy.
o Resourcesandcapabilities
Resources
Asearliercited,theavailabilityofresourcesaresaidtoinfluencethemanagersperception
ofenvironmentalresponsibility(LopezGamero,MolinaAzorin,&ClaverCortes,2010).
In the conduct of the interviews, the managers were asked if high costs involved in
environmentalmanagementisabarrier.Themajorityor67%agreethatitis,while16.5%
thinkitisonlyasecondarybarrierandtheremaining16.5%thinkthatitisnotabarrierat
all.
ForMarcoPoloDavao,resourcesforenvironmentalmanagementareavailablebutlimited.
Thereiswillingnessamongmanagers,especiallythefinancialcontrollerandtheownersto
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,suchasmaintainingorexpandingthecurrentmarketshareinthemidstofthe
entryofnewcompetitors.Mostmanagerssuggestthattheresourcesbeinitiallyallocated
for developing an environmental management system and for the full implementation of
environmentaleffortsandtechnologiesalreadybeingdone.Furthermore,theysuggested
thatallocationsfornewenvironmentaltechnologiesshallonlybedoneifthetechnological
costsandreturnoninvestmentsismorereasonablethanthecurrentrate.

60

Generally,themanagersareoftheviewthatMarcoPoloDavaosenvironmentaleffortsare
limitedduetoresourceconstraints.Thisleadstotheinevitableconclusionthatresources
directly influence the managers 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 (LopezGamero, Molina
Azorin,&ClaverCortes,2010).
Despitethefamiliaritywithenvironmentalmanagement,itwasuncoveredthatmostofthe
managersdonotunderstandtheconceptfully.Anothercommonresponsewastheclaim
that they are not experts on the field; thus a clear system and more education and
experienceareneededforthemtofullyunderstandtheconcept,toshowthewaytoamore
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
Studieshaveshownthatimplementingenvironmentalpracticesbringsmanybenefitsfora
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
maintainthehotelsbrandreputationandhowitisregardedinthemarketasaniconand
astandardinbusinessinDavao.
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

healthierenvironment.Theseopportunitiesareconsideredtohavedirectinfluenceonthe
managerssuggestionsanddecisionsinselectingacompetitiveenvironmentalstrategy.
Somemanagersregardthefactorssuchassuppliers,employees,customersandinvestorsas
onlysecondary,withstrongsuppliertiescominginasthestrongestfactoramongthefour.
Ontheotherhand,onlyafewmanagersthinkthatemployeesareinterested.Themanagers
do not regard it though as a facilitator and a competitive advantage that environmental
managementcanbring.
Thefindingsagreewiththeory,whichstatesthat,perceivedfacilitatorsinimplementingan
environmental program include cost reduction, revenue improvement, stronger supplier
ties,qualityimprovementandahealthierenvironment(Nidumolu,Prahalad,&Rangaswami,
2009).
Facilitators/Opportunities

Yes

Only

No

secondary
Required by government or managing 100%

company
Cost reduction

100%

Revenue improvement

33.33%

58.33%

8.33%

Competitive advantage

100%

Stronger supplier ties

75%

8.33%

16.67%

Better quality of products & services

91.67%

8.33%

Performance & quality improvement

75%

25%

Better corporate image

100%

Public Recognition

100%

Healthier environment

100%

Pressure of customers

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
Sixbarrierswerepresentedtothemanagers.Intheory,costispointedouttobethemain
barrierinimplementinganenvironmentalprogram(LopezGamero,MolinaAzorin,&Claver
Cortes,2010).Also,insomebusinesses,lackofinformationistreatedasabarrier,aswellas
resistance to change (Shrivastava, 1995). These are all confirmed by the results of the
managers survey on barriers. The results demonstrate that the main barrier to
implementingenvironmentalefforts, wherein 80%ofmanagersagreed,is highinvestment
costs. This is followed by resistance to change, which garnered a 58.33% response. There
aredisparitiesintheresponsesintermsoftheenvironmentaleffortsnotmeetingshortterm
goals, which garnered a 5050 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
provedtobeamainbarrierandissuesonenvironmentallegislationwerealsoraised.The
managers comments agree with theory to wit: that legislation is usually unclear and
unfocused.
Highcostsandalackofknowledgeandcapabilitieshaveadirectinfluenceonthemanagers
suggestions and decisions while the challenge of exerting much effort in implementing an
environmentalmanagementprogramonlyhasaminimalinfluence.
Barriers/Challenges

Yes

Only

No

Secondary
High investment costs

80%

16.67%

16.67%

Does not meet short term goals

50%

50%

8.33%

50%

41.67%

25%

50%

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%

Table3:Surveyresultsforbarriersinimplementinganenvironmentalmanagementprogram

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5.1.3 Actors/Stakeholders influence on managers decisions in the

choiceofanenvironmentalstrategy
The following section presents the managers perceptions on the importance of the three
groupsofstakeholders,namely:theemployees,thesuppliersandthecustomersintermsof
influencingdecisionsinchoosinganenvironmentalstrategy.
o Employees
Theemployeesareconsideredtobethemainplayersofenvironmentalsustainabilityinthe
hotelandtheirinterestthereonisrelevantfortheymaketheinvestmentsproductive(Block,
1998).
Amongthe15managersinterviewed,only33%believethatemployeesinterestsplayavital
role in making decisions regarding the companys 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
secondaryfacilitator,meaningitisconsideredonlyafterthemoreimportantfacilitatorssuch
ascostsandotherfactorsaretakenintoaccount.
The managers do not regard employees interests as an opportunity and a competitive
advantage that environmental management can bring. The findings from the managers
pointofviewdonotagreewiththeorythusimplyingthatemployeesviewbarelyinfluences
thedecisionsofmanagementinselectinganenvironmentalstrategy.
o Suppliers
All the managers who dealt with suppliers claimed they have strict standards to make
certain that delivered provisions conforms to the hotels established standards for health,
hygieneandsafety.Theyputemphasisonrandominspectionandexaminationonsuppliers
products,workingfacilitiesandeventhehygieneofsuppliersemployees.Thehotelrequires
them to be compliant with the established standards, including mandatory attendance to
seminars conducted by the hotels 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
passhygienicstandards

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Thehoteldealswithsuppliersbysettingperformancestandardsandgoals,whichembodies
aforcedcompliancestrategyratherthanacollaborativestrategy.Themanagersagreethat
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
hotelsenvironmentalefforts.
o Customers
None of the managers regard the pressure of customers as a key facilitator in making
decisions for the hotels environmental management program. A few managers however,
saidthattheycouldmakeoutfromtheguestssomedegreeofinterestingreenefforts.But
most managers assume that the market is generally not interested in green efforts. The
managersperceptionsofthecustomersapparentnoninterestingreeneffortsdonotagree
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
influencetheirenvironmentalmanagementsuggestionsanddecisions.

5.2 Supplierinterviews
Supplierinterviewswereconductedinordertoknowtheextentoftheircontribution,ifany,
towardsthegreeneffortsandtoappreciatetheirwillingnesstocooperateandcomplywith
the hotels environmental standards. This may aid management in determining what
direction to take in terms of integrating the suppliers behavior with its environmental
managementprogram.Thesuppliersresponsesmayalsoprovideabasisfortheselection
ofacompetitiveenvironmentalstrategy.
Interviewedwerefourhotelsuppliersofmeat,ice,waterandfruits&vegetables.Thefocal
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
hoursplanetriptothenorth.ThesupplierintervieweeownsthecompanynamedGabriel
FoodCorporation,whichsuppliesmeatandbreakfastitemstodifferentclientsaroundthe

65

country.HiscompanyadherestotherulesonGoodManufacturingPractices(GMP)andits
coldstoragefacilityalignsitsoperationswithISOmeasures.
TheotherthreesuppliersarelocallybasedinDavao.Allofthemarecompliantwithlocal
legislationrequirementsofwastesegregationandaredoingtheirbesttofullycomplywith
the nonuse of plastics in their operations. The first local supplier interviewed was a
representative of the hotels ice supplier. He confessed that they have no specific
environmentalmanagementprogramintheircompanyalthoughtheyusethelatestinverter
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
insulationsheetswereusedinceilingstoreduceheat.Theyusethermoplasticsfordelivery
ofthesupplies.
Theinterviewofthehotelslocalsupplierofpurifieddrinkingwaterfollowed.Thesupplier
interviewee was the Production and Quality Controller of the company named Waterman
Davao. The company supplies 5gallon bottles and individual PET bottles. They currently
usenonbiodegradableplasticsforitswatercontainersbutareincontactwithsuppliersof
biodegradable containers to eventually implement the use of biodegradable plastics. The
byproductfromitsproductioniswaterwithionsandsalts,whichisdraineddirectlytothe
publicdrainageandsewagesystem.Buttheyplantorecyclewatertobeusedforlaundry
and washing. In fact, they have ordered, and are awaiting delivery of, a water tank for
storageofproductionwastewaterandtheeventualutilizationandrecyclingthereof.The
company follows GMP (Good Manufacturing Practices) Standards, complies with BFAD
(BureauofFood&Drugs),CityHealthOfficeandDOH(DepartmentofHealth)requirements.
Theymaintainhighqualitystandardstobeabletokeeptheirlicensetooperateandproduct
registrationnumber.
Thelastlocalsupplier(offruitsandvegetables)interviewedweretworepresentativesfrom
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,
theoperationofhydroponicwaterpumpstosavewater,theutilizationofreusableplastic
cratesandtheemploymentofanautomatictemperaturecontrollerforitscoldstorage.

66

Theresultsof,andtheoutcomeofthesuppliersinterviewsshowthattheydonothavea
functioning environmental management program in their companies. Apparently, the
suppliersareexertingtheirbestefforttobeefficientintheirbusinessoperations,involving
toalesserextentsomedegreeofenvironmentalefforts.Otherthantheeffortsmentioned
in the findings from supplier interviews, they confessed that they have no other specific
environmentalmeasuresputinplace.Asasavinggracehowever,theyacknowledgedtheir
willingness to comply with whatever requirements imposed by the hotel for business
transactionstobemoreenvironmentallyfriendly.

5.3 Employeessurvey
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
wereconductedtohaveaglimpseoftheemployeesinterestingreenefforts.Thisisused
toshowwhetherthemanagersperceptionsonemployeesinterestsareatparwithreality,
asrepresentedbythesurveysample.
At random, employees were selected and were asked to respond to a short questionnaire
concerningthegreeneffortsofthehotel.Therewereseventyfive(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
thirdquestioniswhethertheemployeeperformsanyenvironmentallyfriendlyefforts.Ifthe
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
trainingprogramsforthehoteltoattainasuccessfulenvironmentalmanagementprogram.
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%

Table4:EmployeesSurveyresults
Thirtyseven 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)citingproperinspectiontoavoidbreakages.
Fourteen respondents answered yes to all questions and checked all environmental
measuresexceptrecycling.Fivedidthesameexceptforwastereductionandanotherfive
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
environmentaleffortsandanotherassertshe/sheisnotwillingtoundergotrainingforthe
hoteltoachieveasuccessfulenvironmentalprogram.
Fromtheresultsoftheemployeesquestionnaire,itcanbeinferredthattheyaregenerally
awareaboutthegreenefforts.Therearesomediscrepanciesintheconsistencyofhowthey
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 hotels environmental program.
Moreover,theresultsareincontrasttothemanagersperceptionsonemployeesinterests
andtheweightofitsinfluenceinselectinganenvironmentalstrategy.

5.4 Customerssurvey
Abusinessoperatesforprofitthusitisessentialtofulfillthedemandsofthecustomersto
satisfythemandcontinuepatronizingthehotel.Studieshaveshownthattherehasbeena
growing demand worldwide for green hotels (Euromonitor International, 2012). The
customers surveys were conducted to know if guests of the hotel are interested in

68

environmentallyfriendlyatmosphere.Theresultsarethenmeasuredagainstthemanagers
perceptionsthatthemarketofthehotelisignorantabout,andaredisinterestedinagreen
hotel.
Thesurveysweredonebyrandomlygivingoutcustomerquestionnairestohotelguests,and
otherPhilippinetouristsataPhilippineimmigrationoffice.Hotelstaffandimmigrationstaff
distributed the questionnaires to the respondents. One hundred fifty (150) surveys were
distributed and one hundred eighteen (118) surveys were collected and considered valid.
Therewere90localrespondentsand28foreignrespondents.
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,thereishighinterestionthesubjectinbothgroups.Onlyanegligiblenumberof
the respondents said they were not interested in staying at an environmentally friendly
hotel.

Ihaveheardofan
environmentallyfriendly
hotel

Iaminterestedinstayingata
greenhotel

7%
34%
66%

Yes

Yes

93%

No

No

Figure6:Familiaritywithanenvironmentallyfriendlyhotel Figure7:Interestinstayingatagreenhotel

Almost all foreign touristrespondents 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.
Mostoftheforeigntourists(82%)saidtheypaidmorefortheirstayatanenvironmentally
friendlyhotelwhileonlyabouthalfofsaidpercentage,consistingofPhilippinetourists,said
theypaidmoreforit.Thereisahighpositiveresponserateforbothgroupswhenaskedif
theywerewillingtostayorstayagaininanenvironmentallyfriendlyhotel.Takingtheresults
together,itcanbegleanedthatmajorityoftherespondentswerewillingtopay3%more.A
significant number also said they were willing to pay more than 3%. This is followed by a
groupnotwillingtopaymore,whichiscomposedoflocaltourists.
The survey shows that the market, as represented by the sample is indeed interested in
greenhotels,asopposedtowhatthemanagersthink.
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%

24.35%

25.64%

14.10%

15.38%

20.51%

Table5:CustomersurveyresultsforlocalPhilippinetourists

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%

- Did you pay more for it?

22

81.82%

18.18%

Will you stay/stay again in an environmentally

26

100%

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%

15.38%

53.85%

7.69%

7.69%

15.38%

Table6:CustomersurveyresultsforforeignPhilippinetourists

5.5 RecommendationsonActionAreas
Inhavinganenvironmentalmanagementprogramforahotel,allthedepartmentsshouldbe
involvedinplanningandimplementingtheefforts.Butthereisnosingleguidelineforallthe
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
eachofthedepartments,especiallythemanagers,havedifferentneeds,opportunitiesand
challengesintermsofsustainability.
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
managerssuggestionsontheactionareashelpthegeneralmanagerdecidewhatstrategyis
bestconsideringtherecommendationsforthesaidactionareas.

71

The following section enumerates the recommendations on the action areas to be

addressedbythehoteldiscussedinChapter2.Therecommendationsaremainlyderived
from the results of the data gathering process and from the results of the interviews with
themanagers.
o Developingitsgreenmanagementprogram
Themanagersadmitthatthereisnoclearstrategyandsystemintermsofitsenvironmental
efforts.Aclearsystemdesignedinaccordancewiththehotelsneeds,maybedeveloped.
Havingahotelwideinformationcampaignonsustainabilityandenvironmentalmanagement
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 firms environmental management
program(Scanlon,2007)maybeadoptedbyMarcoPoloDavao.Agreenteamcomposedof
different managers and associates from different departments may then be formed to
assumeresponsibilityofplanning,implementingandmonitoringthehotelsgreenefforts,in
accordancewiththechosenstrategy.
Thegreenteamcanhaveplanningsessionswiththedifferentdepartmentstoaddressthe
possible areas of improvement within the respective departments in terms of enhanced
environmentalperformance.Incaseofdifficultyinstartingtheprogram,thehotelmayseek
help from consultants on, or experts in environmental efforts. Currently, the hotel has a
partnershipwithEcolabforitsfoodsafetymeasuresand,asindicatedbyitswebsite,Ecolab
isaconsultantforgreenmanagementimplementation.
Accordingtotheresultofcustomersurvey,almosthalfofthelocaltouristhavenotheardof
an environmentally friendly hotel but interested, when made to understand what it is. In
addition,morethanhalfofthelocaltouristsandalmostallforeigntourists,whoresponded,
are familiar with environmentally friendly hotels. This is contrary to the managers
perceptionthatthereisanignorantmarket.Thesurveyresultsalsoshowahighinterestin
environmentally friendly hotels among its current and prospective guests. Not only that,
mostoftherespondentsarealsowillingtopaymoreforit.Thusthesalesandmarketing

72

teammaytakethisopportunitytopromotethehotelsgreenefforts,byeffectiveintegration
intoitsmarketingcampaigns.
The human resources department may integrate the idea of being environmentally
responsible in its training programs, as recommended by the current HR manager. Aside
fromthecurrentinformationandtrainingprogramformats,thedepartmentmayimplement
environmentally responsible social outreach programs, to be participated in by the
employees.Theseprogramsarenotonlyeducationalbutsociallyresponsibleaswelland
canenhancethehotelsCSRperformance.
Lastly,sincethehighcostsofhavingasustainabilityprograminplaceisconsideredasthe
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
sustainabilitywillbereasonableanditsperformanceandreturnswillbewellsupervised.
o Energyefficiency
Thetechnicaldepartmentprincipallydealswithactionsonenergyefficiency.However,tobe
successful,cooperationwithallotherdepartmentsisnecessary.
Thegreenteammayhelpthetechnicaldepartmentbyencouragingallconcernedinevery
departmentcontributeideasonenergyefficiency.Continuousandregularresearchonthe
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
effortsinenergyefficiency,likethehotelsprogramofreplacingalllightbulbsintoenergy
efficientones.Otherpossibilitiesandrecommendationsmaythenbeconsidered.According
tothetechnicalmanager,therearecurrentplansofeventuallyreprocessingusedcooking
oil into biofuel 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
hotelswaterheatingsystem.Therearealsoenergyefficiencyeffortsthatwerevoicedout
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 energysaving efforts include improved monitoring of

73

equipmentintheboilerrooms,exhaustsystemsandgenerators.Alsorecommendedisthe
adoptionofbettersystemssuchastheuseofautomaticdoorsespeciallyforpantrydoors.
Oneexampleofanoperationalenergyefficiencyrecommendationisthestrictmaintenance
ofpropertemperatureofthefridge,which,accordingtotherestaurantmanager,is,checked
onlywhenauditorswouldpayavisit.
o Reductionofwasteandresourceusemanagement
The segregation and recycling program of the hotel currently addresses the concern of
reductionofwasteandresourceuse.Thesegregationprogramisgenerallydoingwellbutit
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
policiesallthroughouttheproperty.
During the interviews, the managers pointed out some of their ideas in terms of waste
reductionandresourceimprovement.

Usewaterbasedpesticide

Usecarpetshampoowithlessharmfulcleaners

Selectdishwashingliquidsthathavelessharmfulchemicalsbutareaseffective

Noprintingoffoodlabelsinthebanquet

Nopaperforsignage

Useboxesastakeoutcontainers

Reducedchemicalsinsoap

Implementmoregreendesignsespeciallyinopenspaces

o Sustainablesupplychainmanagement
Both the management and suppliers are willing to do their part in order to have more
sustainablebusinesstransactions.Inconsistenciesinpoliciesforsupplierswereuncovered
duringtheinterviews.Itissuggestedthatareviewbedonetoaddresstheinconsistencies.
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
responsibleproducts.

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
outiftheresultsarecongruentwiththetheory.Themanagersviewsareconsideredtobe
the most important since they make suggestions and decisions on environmental
management.Theviewsofemployees,suppliersandcustomers,aswellastheiropinions,
arerelevantoncecomparedwith,andmeasuredagainstthemanagersperceptionsonhow
theactorsinfluencetheirdecisions.Anysimilaritiesordifferencesbetweenthemanagers
perceptionsandthestakeholdersopinionsaretakenintoconsideration.Usingboththeory
and the knowledge on actual circumstances gathered from the interviews and surveys, a
competitiveenvironmentalstrategythatMarcoPoloDavaocanadoptforitsenvironmental
managementprogramissuggested.
This study focused on the four competitive environmental strategies suggested by Orsato,
namelyareecoefficiency,beyondcomplianceleadership,ecobrandingandenvironmental
cost leadership. The influence of the factors and actors that are said to persuade the
department managers suggestions and the general managers decisions in selecting a
competitive environmental strategy were discussed in the analysis. The following section
attemptstomatchthefindingsforMarcoPoloDavaowiththesetsofcombinationsofthe
stateofactorsandfactorsfortheselectionofastrategyasdiscussedinsection2.
Ascanbeseeninthefirmsoperations,itcanbesaidthatitisdoingeffortsthatareinline
with the ecoefficiency 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.Examplesarethesegregationprocess,thenonuseofplasticsandthecompletionof
lowenergylightbulbsreplacement.
Themanagersdonotonlyhaveapositiveviewonenvironmentalmanagementbutarealso
willing to gradually adopt measures towards moving into a proactive approach on
environmentalmanagement.Thedatagatheredalsoshowedawillingnessamongsuppliers
andemployeestocooperateandthereisademandfromcustomers.Theseindicatorsshow
that the firm has all the potential and capabilities to go a step higher than ecoefficiency
alone.
Thebeyondcomplianceleadershipstrategyisastephigherthanecoefficiencywhereinthe
firm seeks to be acknowledged in their efforts for the environment. (Orsato, 2006) As
Forsythputsit:Manyhaveproposedthataproactiveresponseinenvironmentalregulation
may actually result in environmental regulation plus competitive advantage in business.
(Forsyth,1997)
Inadoptingthestrategy,managementputsinplaceitsownstandards,whichitmaypossibly
patternfrompopularenvironmentalmanagementprogramslikeISO.Mostofthemanagers
believe that obtaining certifications like ISO and HACCP is good for the company but they
alsoclaimthatresourceconstraintsmakeitimpracticalatthemoment.MarcoPoloDavao
canhowever,starttakingmeasuresthatareinaccordancewithaccreditationprogramslike
ISOoremployconsultancyservices.Thiswillhelpguidethemanagementonwhattodoto
foritsenvironmentalmanagementprogramandwillalsomakethehotelreadytoseekfor
accreditation,attheopportunetime.
Going beyond compliance will not only require costs but also time and effort from the
managementside.Onemanagerpointedoutactualintegrationinthebudgetandcostswill
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
canfocusontheirrespectiveresponsibilities,notsinglybutinconsortiumwithothersinthe
hotel. This will also help solve the other constraint that with new leadership, there are
alwaysnewrules.TheMarcoPoloGrouphasanewpresidentandchangesinthecorporate
frameworkareanticipated.Amajorityofthemanagersexpressedtheviewthatdesigninga

77

clearsystem,strongenoughtoweatherchangesinleadership,willbehelpful,especiallyif
designedtobealongtermprogram.
Another challenge in going beyond compliance is the proposition that it can make the
companybecomelesscompetitiveascompanieswhodonotgobeyondcompliancewillnot
bearitscosts.Themanagershowever,arenotdisturbedbythispossibility,fortheyknow
that resources are available to be used as investments in order to boost the hotels
competitive advantage. They also strongly agree that to be the firstmover and to invest
ahead of its competitors in terms of environmentalism will help the hotel maintain its
marketshareandimproveitsbrandreputation.TheDirectorofSalesandMarketingpoints
outthatitwillbegoodforSales&marketinganditwillbecomeauniquesellingpointfor
thehotel.
Anotherimportantfactoringoingbeyondcomplianceisthegreeningofitssupplychain.At
themoment,therearenogreenpoliciesforthehotelsupplierstofollow.Theindependent
interviewwiththemanagersandthesuppliersshowthatbotharewillingtoworkwitheach
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
managementprogramarelaid.
The two other strategies of ecobranding and environmental cost leadership require
abundantfinancialresourcestofinancetechnologyinvestmentandorganizationalchanges,
astrongknowhowaboutenvironmentalmanagementandenvironmentaltechnologiesand
ideally collaborations with suppliers for research and development. Moreover, both
strategiesmustmatchcurrentmarketdemands.
ThemanagersthinkthatEcobrandingisagoodideabutareskepticalbecausetheyassume
that it is unrealistic at the moment. As one manager puts it: It is better to promote the
hotelasagreenhotel.However,Ithinkitissomethingforthefuture.Thisisbecauseof
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
immediateplansforit.Anotherreasonforthisisthatgreenproductslikeorganicfoodand
greencleaningagentsareexpensiveandnotreadilyavailable.Moreover,themarketmight
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
companyslongtermplans.
Ontheotherhand,theenvironmentalcostleadershipstrategyissomethingthatiscurrently
beyond what the managers think is doable and practical. This is due to costs and a
requirementofhavingastrongenvironmentalmanagementprogram,whichinitselfisstill
absentinthehotel.Technologicalinvestmentsinparticularposetobeachallengerightnow
because of the current market conditions. All of the managers like the idea and they are
opentoitifROIwillbemorereasonablebecauseasofthemoment,thecurrentstudiesof
thetechnicaldepartmentshowthattheROIininstallingsolarpanelsispeggedat20years,
whichistoolong.However,thestrategyisrecommendedforconsiderationintheMarco
PoloGroupsnewupcomingproperties.
Havinganalyzedboththeoriesanddatagatheredfromtheinterviewsandquestionnaires,it
issuggestedthatthegeneralmanagerselectthebeyondcomplianceleadershipstrategyfor
MarcoPoloDavaosenvironmentalmanagementprogram.

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 worlds largest industry and its growth is currently concentrated in
developingcountries,thenitisrelevanttolookathowplayersintheindustrycanconfigure
itsoperationstobeabletocontributetothegoalofenvironmentalsustainability.Thehotel
industry players have adopted different measures and approaches in their businesses to
addresstheneedformoreenvironmentaleffortsthatwillhelpreversethedegradationof
nature.Thestudyhaslookedintohowacompetitiveenvironmentalstrategyisselectedbya
hotelsgeneralmanager.Theresearchinvestigatedwhatthecurrentenvironmentalefforts,
and how the factors and the actors influence the managers suggestions and decisions in
selecting a competitive environmental strategy for a hotels 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
employedindifferenthotelsworldwide.
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
qualityperformance,nottomentionemployeeinvolvementandmotivation.
The research question in the study was: What competitive environmental strategy can
Marco Polo Davao adopt for its environmental management program? The research was
carriedoutinacaseforahotelinthePhilippines.Itispartofaninternationalchain,basedin
HongKong,whichoperatesintheAsiaPacific.
The main objective of this research was to suggest a competitive environmental strategy
thatMarcoPoloDavaocanadoptforitsenvironmentalmanagementprogram.Thegoalwas
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 hotels
managers.

80

Theanalysisofdatacollectedhasshownthatenvironmentaleffortsarewarmlywelcomed
bymostofthemanagersofMarcoPoloDavao.Thehotelscurrentenvironmentalefforts
aremainlydrivenbyenvironmentallegislationandthepossibilityofcostsavings.Noneof
themanagerstreatcustomerpressureasafacilitatorbutuponcompletionofthecustomer
survey,resultsrevealedthatmostofthecustomersandprospectivecustomersareindeed
interestedinenvironmentallyfriendlyhotels.Mostofthemanagersthinkthatcostsarethe
main barrier in having more environmental efforts. These findings agree with the theory
thattheabovementionedfactorshaveadirectinfluenceonmanagersperceptions,which
in turn shape the department managers suggestions and the general managers decision.
Thehoteliscurrentlydoingeffortsbeyondwhatisrequiredbylegislationandmostofthe
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
environmentalmanagementprogram.However,itdoesnotfollowthatthesamestrategy
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
companyandcanpossiblyinfluencethewholechaintodiagnoseitshotelsanddevelopits
environmentalmanagementprogramsspecificallyfitforeachhotel.Thefindingscanalsobe
used as reference for other hotels that are in the same situation, size or similar business
environment,especiallyforhotelsinthePhilippines.
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 Davaos current environmental efforts. Higher strategies were not
suggestedsincetheresultshaveshownthatitwillnotbepracticalforthehoteltoadoptit
right now, considering the hotels current performance and other economic and market
factors. It can however, include preparations for adoption of higher strategies in its long
termplans.

81

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Appendices
AppendixA:ManagersInterviewQuestionnaire

Lengthoftenure(currentposition)
BackgroundonDepartment?Whatdoesitmainlydo?
Areyoufamiliarwithsustainability/environmentalmanagement?
Doesyourdepartmentdoanythingtowardsbeingenvironmentallyfriendly?
Is your department concerned with any requirements by government and the managing
companyintermsofenvironmentalefforts?
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
termsofprofits?
If the legislations remain the same, do you think it would be good for Marco Polo to go
beyondwhatisrequiredinmakingeffortstowardsustainability?Whyorwhynot?(
Doyouthinkitiswisetoinvestonenvironmentaleffortsaheadoftheothersinthemarket?
What are your ideas on reducing resource use and waste in your department and in the
hotel?
Doyoudealwithsuppliesandsuppliersinyourdepartment?
Do your suppliers/the hotels suppliers are ecological and offer sustainable products (i.e.
deliverorganicfoodandhighqualityproductswithnotoxiccomponents,theydisposetheir
wasteproperly)
Doyouthinkyoucan/thehotelcanrequireorinfluenceyoursuppliertobeenvironmentally
friendly? (i.e. less harmful laundry detergents, replace soap w/ recyclable dispensers,

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calculated food strategy, reduced deliveries, less/ecological packaging, organic raw food
fromnearbyplaces)
Wouldyouwanttoencouragethesupplierstohavesustainablebusinessestoo?
Whatdoyouthinkaboutsellingthehotelsproductsandservicesasgreen?(Itaimstogreen
allfactorsinthecustomerexperienceandsellthestayasagreenstay.)
Doyouthinkthefirmshoulddomorethanjustdevelopinggreenproductsandservices?
Environmentalcostleadershipstrategy:Canyouseethehotelhavingastrongsustainability
programisimplementedwithenvironmentalinvestmentsinthenearfuture?
Whatdoyouthinkaboutdevelopingatotallynewbusinessmodelbasedonsustainability?
This is where sustainability is integrated into the firms mission and vision and is
implementedintoallthedepartmentsoftheorganization.

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Are you aware of the following facilitators and barriers in implementing an environmental
managementprogram?Pleaseassesseachitemifyouconsideritasafacilitator/barrieror
not.

Facilitators:

1. Requiredbygovernmentormanagingcompany
2. Costreduction
3. Revenueimprovement
4. Competitiveadvantage
5. Strongersupplierties/supplychainpressure
6. Betterqualityofproductsandsupplies
7. Performanceandqualityimprovement
8. Bettercorporateimage
9. Publicrecognition
10. Lessemissions,healthierenvironment(communityenvironmentalconcern)
11. Pressureofcustomersortouroperators
12. Employeeinterests
13. Investorsdemand

Barriers:
1.
2.
3.
4.
5.
6.

Highinvestmentcosts
Itdoesnotmeetshorttermgoals
Noideaonwhattodointermsofsustainability
Resistancetochange
Toomucheffortinswitchingstrategiesandtrainingpersonnel
Itmakesthecompanylesscompetitive

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AppendixB:Suppliersinterviewquestions

Backgroundofthecompany
WhatdoyousupplytoMarcoPolo?
Doyouknowaboutsustainability?
Doyouhaveanyeffortstowardstheenvironment?
Areyouopentoadoptinggreeneffortsinyourcompany?
AreyouopentosupplyinggreenproductstoMarcoPoloiftheypreferit?
How about competition? Do you think your competitors are as/more/less green than you
are?

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AppendixC:EmployeesSurvey

1.
2.
3.

4.

5.

Jobtitle____________________
Doesthehotelhaveenvironmentalefforts?
________Yes ________No ________Idon'tknow
Doyoudoanyenvironmentallyfriendlyeffortsatworkandwithinthehotel?
________Yes
Ifyes,whatarethoseefforts?
________saveenergy(i.e.turnofflightsandairconwhennotinuse)
________reducewaste
________savewater
________recycle
________otherspleasespecify______________________________
________No
Do you want the hotel to be more environmentally friendly and have more
environmentallyfriendlyrules?
________Yes
________No
Areyouwillingtoundergotrainingforthehoteltohaveasuccessfulenvironmental
program?
________Yes
________No

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AppendixD:CustomersSurvey

1. Whattypeoftouristareyou?
________Local
________Foreign
2. Haveyouheardofanenvironmentallyfriendlyhotel?
________Yespleaseproceedtonumber3
________ No An environmentally friendly hotel does efforts that help save the
environmentfromfurtherdegradation
3. Areyouinterestedinstayinginanenvironmentallyfriendlyhotel?
________Yespleaseproceedtonumber4
________NoThankyouforansweringthequestionnaire!
4. Haveyoustayedinanenvironmentallyfriendlyhotel?
________Yespleaseproceedtonumber5
________Nopleaseproceedtonumber6
5. Questionsaboutyourstay:
a. Didyoulikeyourstay? ________Yes________No
b. Didyoupaymoreforit? ________Yes________No
c. Willyoustayagain?
________Yes________No
6. Willyoustayorstayagain(ifyouvestayedinonebefore)inenenvironmentallyfriendly
hotel?
________Yespleaseproceedtonumber7
________NoThankyouforansweringthequestionnaire!
7. Howmuchmorewillyoubewillingpayforit?
________morethan3%pleasespecify___________%
________3%
________2%
________1%
________nothing

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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 Minimizingtheopeningofdoorsofcoldstorageandfreezer
o Keepingatemperaturelogofallchillerstwiceaday
o Keepingkitchendoorsadjacenttodiningareaclosed
o Replacingoldgaskitchenequipmentbynewerenergysavingmodels
o Leftover(unserved)foodfrombanquetsarebroughttoemployeescafeteria
o Sellingchemicalcontainers,bottlesandtincanstorecyclers
o Reusingoldfoodcontainersforstorage
o Useofinductioncookersforallcookersinthebuffet
o Sellfoodwasteandusedoil

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Appendix F: Other environmental efforts being done by the Technical

department
Otherenergyandresourceconsumptionmeasuresbeingdonebythetechnicaldepartment
o Regularchecksonwaterleaks
o Maintenancescheduleforwatersystems
o Properdisposalorrecyclingofappliancesreplaced
o Finetuningofcontrollersforairconditioning
o Installationofsolarcontrolfilms
o Addinglightswitches
o Cleaninglightfittings
o Energysavingpolicy
o Turnsoffventilationandlightswhennotinuse
o Illuminationlevelisnothigherthannecessary
o Drapesandblindsofunoccupiedroomsareclosed
o Policyonminimizingtheopeningofdoorsofcoldstorageandfreezers
o Preventivemaintenanceprogram
o Checksaccuracyofbuiltininstruments
o Chilledwatertemperatureismaintainedattherightlevel,nottoolow
o Followflowratespecified
o FinetuneofpneumaticcontrolsforallAHUsandPAUs
o ESO(energysavingoperations)functioninlifts
o Examinedthecoolingdistributioncarefully
o Installednaturalcoolingdistributionequipment
o Lampsandventilationsystemincarparkcontrolledbytimerswitch
o Checkedindoorparameters(temperaturesandhumidity)toensurenoovercool
o Replacethefluorescentlightballastwithelectronictype
o Stopallassociatedwaterpumpswhenchillerisshutoff
o Strictcontrolofmaximumelectricalcurrentlimitonthechillerunits
o Temperatureandfanspeedsettingsforroomthermostatsarecorrectlyadjusted
o Closeguestfloorduringlowoccupancytosaveenergy

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o Aboilershouldbeoperatedatpercentageloadofover30%
o Kitchendoorsadjacenttodiningareaskeptclosed
o Kitchenexhaustmakeup
o Checkedleakageofrefrigerantandwater
o Checkkitchenequipmentefficiency
o Testboilerefficiencybyadjustedfuelratio
o Adjustwaterflowrateandwatertemperaturetosuitdifferentkitchens
o Followwashingmachinemanufacturersspecifiedwatertemperatureandamount
o Temperaturesensorandcontrolvalveareinstalledindrycleaningmachine
o Adjustair/fuelratioorfuelflowrate
o Checkfreshairdampers
o Routinechecknormaloperationofaboiler
o Useasmuchoutdoorairaspossibletomaximizefreecoolingeffectwhenpermitted
byweatherconditionsandductsystemdesign
Measuresdealingwithairpollutants
o Nonsmokingguestfloor
o Environmentallyfriendlyfireextinguisher
o Phaseoutrefrigerantr11
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
outsideairpollutantdrawninside)

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AppendixG:OtherenvironmentaleffortsbeingdonebytheHousekeeping
department

o Drapesandblindsofunoccupiedroomareclosed
o Temperatureandfanspeedsettingsforroomthermostatsarecorrectlyadjusted
o Closeguestfloorduringlowoccupancytosaveenergy
o Followwashingmachinemanufacturersspecifiedwatertemperatureandamount
o Nonsmokingguestfloor
o Replace existing dry cleaning machine with an approved model to reduce air
pollution
o staffcafeteriaisanonsmokingarea
o Donationofusedclothestocharitiesexceptforthosewithofficiallogos
o Collectionofoutsidepublicationsforstafftoread
o Envelopeandpaperrecycling
o Paperlaundrytags
o Newspaperrecyclingsoldtorecycler
o Printercartridgesarecollectedbytherecyclers
o Returnchemicalcontainertosupplierforrecycling
o Soapdonations(collectusedsoapsforpartieswhowant)
o Towel/bedlinenreusecampaign
o Donateoldlinens
o Reusingchemicalcontainers
o Bottlerecyclingtosuppliersorcollectors
o Tincanrecycling
o Woodenhangers
o Recyclingofbathroomlinen,usedasrags
o Noplasticlinersinroomgarbagebins,theyarewashedinstead

97