Hilton is so focused onthis, that they have committed to double their investment in social impact and cuttheir environmental impact in half by 2030... While Hilton is a globalcompany, ou
Trang 1NATIONAL ECONOMICS UNIVERSITY
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COURSE: BUSINESS ETHICS
Tourism Codes of Ethics and explain how international hotels response to the articles in this Global Tourism
codes by their own codes of ethics
I Global Tourism Code of Ethics
II Hilton’s compliance through its code of conduct and programs
Trang 21 Introduction about ESG strategy and framework
LightStay
Meet with Purpose program (2021)
Hilton Effect Foundation
a Respect diversity in guests’ culture
b Respect guests’ rights, take special care to the underprivileged
B TOWARD EMPLOYEES
a Respect to labor rights of staff & employees
b Respect to human rights of employees
C TOWARD COMMUNITIES
a Respect to local culture and law
b Develop a business that is aware, contributes to the maintenance and promotion
of both local culture & economy, and does not harm the community
D TOWARD SUPPLIERS
a Promoting universal respect for human rights
b Responsible sourcing
4 Governance - partnership
I Global Tourism Code of Ethics
Tourism activities are dependent on natural resources but also have an effect on the environment Due to this influence, it is crucial that the industry members abide by sustainable development standards in their business Among 10 articles
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Trang 4of the Global tourism code of ethics, there are four articles (article 1,2,3,5) that
address sustainable responsibilities concerning Environment, communities,
Individuals, and Workers Our group chose Hilton Worldwide Holdings Inc a
global hospitality company to analyze their compliance to the focused articles
Aside from the main focus from the four articles, we also use codes of other
articles that indicate aspects of sustainable responsibilities
Four focused articles
Art3 Tourism, a factor of
sustainable
development
Art5 Tourism, a beneficial
activity for host countries and communities
Art2 Tourism as a vehicle for individual and collective fulfillment
Art1 Tourism's contribution to mutual understanding and
respect between peoples and societies
2 All forms of tourism
development that are
conducive to saving rare
and precious resources,
in particular water and
should carry out studies
of the impact of their development projects on the environment and natural surroundings;
they should also deliver, with the greatest transparency and objectivity, information on their future programmes and their foreseeable repercussions and foster dialogue on their contents with the populations concerned
2 Tourism activities should
respect the equality of men and women; they should promote human rights and, more particularly, the individual rights of the most vulnerable groups,
notably children, the elderly, the handicapped, ethnic minorities and indigenous peoples;
1 The understanding and
promotion of the ethical values common to humanity,
with an attitude of tolerance
and respect for the diversity
of religious, philosophical and moral beliefs, are both
the foundation and the consequence of responsible tourism; stakeholders in tourism development and tourists themselves should observe the social and cultural traditions and practices of all peoples, including those of minorities and indigenous peoples and
to recognize their worth;
share equitably in the economic, social and cultural benefits they
generate, and particularly
in the creation of direct and indirect jobs resulting from them;
3 The exploitation of human beings in any form,
particularly sexual, especially when applied to children, conflicts with the fundamental aims of tourism and is the negation
of tourism; as such, in accordance with international law, it should
be energetically combated with the
cooperation of all the States concerned and
penalized without concession by the national
legislation of both the
2 Tourism activities should
be conducted in harmony
with the attributes and traditions of the host regions and countries and in respect for their laws, practices and customs;
Trang 5activities when these are
exercised in particularly
sensitive areas: desert,
polar or high mountain
regions, coastal areas,
5 Nature tourism and
ecotourism are
recognized as being
particularly conducive to
enriching and enhancing
the standing of tourism,
provided they respect
the natural heritage and
local populations and
are in keeping with the
carrying capacity of the
sites
2 Tourism policies should
be applied in such a way
as to help to raise the
standard of living of the
populations of the regions
visited and meet their needs; the planning and
architectural approach to and operation of tourism resorts and
accommodation should aim to integrate them, to the extent possible, in the
local economic and social fabric; where skills
are equal, priority should
be given to local manpower;
II Hilton’s compliance through its code of conduct and programs
1 Introduction about ESG strategy and framework
As one of the world’s largest hotel companies, Hilton recognizes the company’sresponsibility to protect communities and the planet
Travel with Purpose is Hilton’s Environmental, Social, and Governance (ESG)strategy to drive responsible travel and tourism globally Hilton is so focused onthis, that they have committed to double their investment in social impact and cuttheir environmental impact in half by 2030
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Trang 6These overarching Travel with Purpose 2030 Goals are underpinned by targetsthat closely align with the global Sustainable Development Goals adopted by theUnited Nations in 2015.
Hilton’s ESG programs are built on the principle:
“As with everything we do, people are at the heart of our ESG programs Our
Team Members around the world bring Travel with Purpose to life with
dedication, passion, and a love for their neighbors While Hilton is a globalcompany, our hotels are local businesses, proud to serve their communities,
support livelihoods and bolster economies.”
ESG framework
Hilton has developed a framework that will guide its efforts to address
environmental, social, and governance (ESG) issues The framework includes ambitious environmental targets, expanded social goals, and formal incorporation of governance priorities The company is committed to preserving the destinations where it operates and achieving a net-zero future Hilton is also focused on creating an engine of opportunity for its Team Members and community members.
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Trang 8- What is LightStay?
Launched in 2009, with two years of internal testing, LightStay is
a Hilton proprietary system invented to track hotel’s
environmental performance
Nowadays, it is still Hilton's award-winning ESG management system that supports the tracking and analyzing progress towards their 2030 Goals
Reputation: LightStay aligned with the globally recognized criteria
of the UN-founded Global Sustainable Tourism Council (GSTC)
2021, LightStay was also recognized by Google as an pioneer program for label eco-certified hotels
- Who has the rights and responsibilities to use LightStay?
LightStay is a Global Brand Standard, which means both Hilton’s managed and franchised hotels are required to use the platform
to connect and exchange information with peers
Trang 9- Features of LightStay
+ Environmental impact tracking: Tracking water, energy consumption & carbon, waste generation to come up to improvement projects
+ Social impact tracking: volunteer activities, donations, engagements with local partners
+ Best-practice sharing: support the hotel to share best practice related to sustainability
+ Context-based data: predicting utility consumption and costs
+ Risk Mitigation: mapping all hotels against external risk+ Engagement tools: Connecting the hotels in chain through reports, training programs,
+ Client reporting: measure emission of clients from meetings
& events
+ Third-party verify
Meet with Purpose program (2021)
The Meet with Purpose program was launched to help clients create meaningful change in both the attendee experience and within the communities they visit The program allows customers to integrate social and environmental
considerations into their meetings and events, to assist them in achieving their own ESG goals Hilton’s Meet with Purpose offerings allow meeting planners and
travel managers a set of tools to help their attendees Gather, Nourish and Impact
For Gather, our proprietary LightStay Meeting Calculator helps guests convene
in a more sustainable way, calculating the environmental profile of their stay so they can make informed, low-waste choices and obtain carbon credits to mitigate the carbon footprint of their gatherings
For Nourish, we offer climate-conscious menus featuring locally sourced and sustainably grown meals designed to boost energy and minimize leftovers, while also nourishing others in the local community by donating remaining food, where permitted
For Impact, we offer social impact opportunities important to our customers through team-building experiences that often benefit local charities, ranging from
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Trang 10packing hygiene kits to hosting a skills workshop for local youth, that align with the guests’ own ESG goals.
Hilton Effect Foundation
Established in 2019, the Hilton Effect Foundation (HEF) is their primary
international philanthropic arm that seeks to advance their ambitious Travel with Purpose 2030 goals
The Foundation seeks to have a positive impact on the communities Hilton serves, with the mission to create a better world to travel for generations to come.HEF awards grants within three focus areas—annual Hilton Effect Grants, disaster response and resiliency, and signature partnerships In 2021, the
Foundation focused on the theme of restoring our communities and our planet for future generations of travelers.
As our communities began to recover from the initial impacts of the COVID-19 pandemic, they focused their 2021 annual Hilton Effect Grants on two key urgent needs:
• Restoring opportunities for underrepresented groups and those who were disproportionately impacted by the pandemic
• Restoring The Planet,with a focus on programs that combat climate change and drive environmental stewardship
To advance these restoration efforts, the Hilton Effect Foundation distributed nearly $2 million in Hilton Effect Grants, a 50% increase in HEF grant awards from the prior year These funds supported 12 grantees across six continents Since established in 2019, $5M+ in grants awarded to more than 70 NGOs and community-based organizations
Some of HEF activities are:
● One Tree Planted (Canada): Restores forests and promotes habitats contributing to biodiversity Contributions from the Hilton Global Foundationwill allow 50,000 trees to be planted across Canada
● Minority Rights Group (Poland & Hungary): Secures rights and hospitality career development opportunities for indigenous, ethnic, religious and linguistic minority peoples around the world
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Trang 12● Punlaan School (Philippines): Offers scholarships and programs for underprivileged young women, focusing on hospitality and culinary arts, while equipping them with job and life skills.
“The Hilton Effect Foundation empowers us to support mission- driven
organizations all around the world that advance our Travel with Purpose
objectives Supporting inspiring organizations that improve communities enables
us, together, to make a difference.”
Complying to these sustainable concerns, Hilton stated in its code of conduct:COMMITMENT TO THE ENVIRONMENT
Protecting the environment is a top priority for Hilton Responsible environmental activity is good for both our business and the communities
we serve Hilton is committed to complying with all applicable
environmental laws and regulations wherever we do business We therefore expect Team Members to properly handle, store and dispose of all hazardous materials and wastes, and to comply with all environmental permits that apply to Hilton equipment, operations or facilities
Hilton has also shown great efforts and commitments to environmental factors, presented in its Paving the Way to Net Zero campaign - tackling energy, water and waste usage in its business
Paving the way to net zero
Trang 13Hilton's "Paving the Way to Net Zero" campaign is an ambitious initiative tobecome carbon neutral across its corporate operations, property portfolio, andvalue chain by 2050 The campaign's goals are aligned with the Science BasedTargets Initiative (SBTi) and include the following targets:
● Reduce greenhouse gas emissions by 34% by 2030 and achieve net zeroemissions by 2050
● Increase the use of renewable energy by 50% by 2025 and 100% by 2030
● Set science-based targets for Scope 1, 2, and 3 greenhouse gas emissions
by the end of 2023
● Reduce plastic waste by 50% by 2025 and eliminate it entirely by 2030
● Increase the percentage of food and beverage sourced from sustainablesources by 50% by 2025 and 100% by 2030
● Achieve 100% renewable and recycled water use in new developmentsand improve water efficiency by 25% in existing properties by 2030
● Reduce overall waste sent to landfill by 50% by 2025 and achieve zerowaste to landfill in new developments by 2030
To achieve these goals, Hilton has implemented a series of sustainabilityinitiatives, including:
● Investing in renewable energy projects, such as solar and wind farms, andbuilding green technologies like energy-efficient LED lighting, smartbuilding controls, and electric vehicle charging stations
● Encouraging guests to reduce their environmental impact with initiativeslike providing water bottles, encouraging guests not to change sheets andtowels every day, and promoting energy-efficient measures likeshowerheads with low water flow rates
● Partnering with suppliers and stakeholders to promote sustainablepractices and reduce the environmental impact of the value chain
Hilton's "Paving the Way to Net Zero" initiative relates to the company's variousstakeholder groups:
● Customers: Hilton's net-zero commitment aligns with the growingconsumer demand for more environmentally conscious choices and canposition the company as a leader in sustainability within the hospitalityindustry This can attract eco-conscious travelers and provide opportunities
to educate guests about the company's sustainability efforts, such asrenewable energy initiatives or water conservation efforts
● Community members: Hilton's commitment to achieving net zero can have
a direct impact on the communities where its properties are located, as itcan lead to reduced emissions and increased investment in renewable
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Trang 14energy infrastructure This can contribute to the preservation of naturalresources and the reduction of local air and water pollution.
● Employees: Hilton's net-zero commitment can provide opportunities foremployee engagement and professional development within the company.Employees can participate in sustainability initiatives and learn about thecompany's progress towards its net-zero target Additionally, net-zeroinitiatives can create new business opportunities for Hilton, which canbenefit its employees through job security
● Suppliers: Hilton's commitment to achieving net zero can provideopportunities for suppliers who specialize in sustainable products andservices For example, suppliers of renewable energy solutions orenvironmentally friendly materials can benefit from increased demand fortheir products Additionally, Hilton's net-zero target can create newbusiness opportunities for sustainable suppliers, helping to promoteeconomic growth and job creation
● Environment: Hilton's commitment to achieving net zero can have directbenefits for the environment, such as reduced emissions and increaseduse of renewable energy The company's efforts can contribute to thepreservation of natural resources, reduce air and water pollution, and helpmitigate the impact of climate change Additionally, Hilton's efforts cancreate a positive example for other organizations, helping to spur broaderchanges within the hospitality industry and beyond
Through this campaign, Hilton is committed to addressing the global climate crisisand leading the hospitality industry towards a more sustainable future
Watts
● Project to make use of renewable energy:
+ Install rooftop microgrids at selected Hilton Americas properties+ U.S Hilton Hotel are stimulated to make at least a proportion of energy used renewable source through the energy procurement services contract
+ ⅓ of EMEA (Europe - Middle East - Africa) hotels, as well as their main offices are powered with 100% certified renewable electricity
● Largest ISO(international standard organization)-certified portfolio in the world
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Trang 16+ 2021 marks 10 years of Hilton properties certified for ISO 14001 and ISO 9000, a milestone in their history of commitment to energy efficiency at the hotels They are also certified to ISO 50001 (Energy Management).
● Designing greener hotels
Hilton launched its refreshed Energy and Water Efficient Design
Companion Guide This guide complements Hilton’s Brand Standards by offering improvements that can be made during hotel development, refurbishment and maintenance to improve the environmental performance
of the hotel
● Hilton set 2030 science-based targets to reduce greenhouse gas
emissions reviewed with the Science Based Targets initiative (SBTi)
- Reduce carbon intensity from Hilton-managed hotels by 61%
- Work with their Franchisees to reduce carbon intensity by 52%
- Encourage suppliers to set goals around reducing their
environmental and social impact
● Progress on Hilton energy efficiency:
- 49% reduction in carbon emissions intensity (managed hotels)*
- 43% reduction in carbon emissions intensity (all hotels)*
- Signed on as the first hospitality company to commit to the U.S
Department of Energy Better Climate Challenge
- Continued to enhance LightStay, including the addition of a Meeting ImpactCalculator to calculate the environmental footprint of meetings and events
- Achieved Global Sustainable Tourism Council (GSTC)-Recognized Standard status for LightStay
- 100% of hotels mapped against climate risks
Water
Hilton embed water stewardship throughout their global operations Hilton made commitments to improving water availability and quality in all of their locations around the world In order to achieve their set goals Hilton works closely with their hotels, their suppliers and their community partners to reduce water
consumption
This includes measuring and reducing operational water consumption, identifying opportunities to improve water efficiency, and mitigating impacts in water scarce
Trang 17regions This also includes assessing water-related risks (both water availability and quality) and integrating results into business priorities and decision-making Hilton water conservation goals to 2030:
- Reduce water use in managed operations by 50% (liters/m², 2008
baseline)
- Activate 20 context-based water projects in communities and watersheds
of top water risk
Progress Hilton made up till now:
- Conserve water in operations by: hotels are required to follow guidelines
on low-flow fixtures; provide continual training to employees, hotels on behavioral changes that can reduce resource consumption, including conserving water
- Maped all hotels against WWF’s Water Risk Filter and the WRI Aqueduct Water Risk Atlas, and use this mapping to analyze current and future waterrisks across our portfolio
- Continued investment in community water stewardship efforts through the Hilton Effect Foundation
- Refreshed Energy and Water Efficient Design Companion Guide to guide hotels on design decisions that can improve properties’ energy and water efficiency
Waste
In the environmental impact segment of Hilton's ESG strategy, one of the main priorities
is ‘preventing waste and contributing to a circular economy’ The company has setspecific targets, including:
● Reducing waste sent to landfill by 50% by 2025 and achieving zero waste tolandfill in new developments by 2030
● Reducing plastic waste by 50% by 2-25 and eliminating it entirely by 2030
● Increasing the percentage of food and beverage sourced from sustainablesources by 50% by 2025 and 100% by 2030
● Increasing the use of renewable energy by 50% by 2025 and 100% by 2030
● Increasing the use of recycled water in new developments and improving waterefficiency by 25% in existing properties by 2030
To achieve these goals, Hilton has implemented various initiatives in relation to itsstakeholders, including:
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Trang 18● Customers- Hilton's focus on preventing waste and contributing to a circulareconomy is aligned with the growing consumer demand for sustainable andenvironmentally conscious practices Hotel guests can directly benefit fromreduced waste, increased recycling, and the use of sustainable materials inrooms and common areas, as well as environmentally friendly practices likewater-saving showerheads and energy-efficient lighting.
● Community members- Hilton's efforts to prevent waste and contribute to a circulareconomy benefit local communities by reducing the impact of the company'soperations on the environment This includes reduced waste sent to landfill,increased recycling, and the use of sustainable materials in property renovationsand new developments
● Employees - Hilton's commitment to environmental sustainability createsopportunities for its employees to participate in and contribute to sustainability-focused initiatives Employees can be involved in waste reduction efforts,recycling programs, and other sustainability initiatives, and the company's focus
on environmentally sustainable practices can provide opportunities for employeeengagement and professional development
● Suppliers - Hilton's focus on preventing waste and contributing to a circulareconomy can benefit its suppliers by promoting the use of sustainable materialsand promoting the reuse and recycling of products This can lead to newbusiness opportunities and an increased demand for sustainable products,supporting suppliers' sustainability goals and contributing to the overallsustainability of the hospitality industry
● Environment - Hilton's efforts to prevent waste and contribute to a circulareconomy directly benefit the environment by reducing the impact of its operations
on natural resources like water, energy, and land The company's commitment tosustainable practices can lead to the preservation of natural resources and thereduction of waste sent to landfill, promoting a healthier and more sustainableenvironment
Through these initiatives, Hilton is committed to reducing its environmental impact andcontributing to a circular economy, where waste is reduced and reused instead of beingsent to landfill The company is determined to achieve its ambitious targets and lead theway in the hospitality industry towards a more sustainable future
3 Social Impact
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Trang 20A TOWARDS CUSTOMER
a Respect diversity in guests’ culture
❖ In Article 1, Code 3 mentions
“The host communities, on the one hand, and local professionals, on the other, should acquaint themselves with and respect the tourists who visit them and find out about their lifestyles, tastes and expectations; the education and training imparted to professionals contribute to a hospitable welcome.”
Brief specific explanation → Hilton is required to respect and understand
the culture, lifestyle, tastes and desires of its customers in order to maximize and deliver a welcoming, hospitable guest experience
Hilton’s compliance:
- Code :
“We are a company of diverse cultures serving diverse guests We seek to understand our unique global communities, and to create an environment of inclusiveness.”
- Program :
Hilton has developed different sets of procedures, services and overall products
in order to best fit different segments of customers, different cultures as well as different expectations Highly differentiated brands are available for customers to select among
b Respect guests’ rights, take special care to the underprivileged
❖Article 7, Code 4 mentions
“Family, youth, student and senior tourism and tourism for people with disabilities, should be encouraged and facilitated.”
Brief specific explanation → Hilton is required to provide facilities and
services to encourage and welcome families, young guests, students, seniors, and people with disabilities
Hilton’s compliance:
Trang 21- Statement : “We foster inclusive growth by enabling everyone to participate
in and benefit from travel.”
❖Article 8, Code 3 mentions
“Tourists and visitors should benefit from the same rights as the citizens of the country visited concerning the confidentiality of the personal data and information concerning them, especially when these are stored electronically”
Brief specific explanation → Hilton must protect the privacy of customers'
personal information
Hilton’s compliance:
- Code :
PROTECTING AND USING INFORMATION
Hilton is committed to safeguarding and handling third party information in accordance with applicable laws, our policies, contractual obligations, and in a manner that protects privacy, preserves customer and Team Member trust, and meets our shareholders’ expectations Hilton does not tolerate the inappropriate acquisition, possession or use of proprietary, confidential or trade secret
information of Hilton’s competitors or other third parties, such as vendors, suppliers, owners and former employers In addition, Hilton is committed to collecting, safeguarding and using personal information in a reasonable manner
in accordance with laws and in order to fulfill legitimate business purposes.Third party information related to customers includes: Private information about guests; personally identifiable information (e.g., social security numbers and credit card information) of guests and business partners