Case study: How Mandarin Oriental Hotel Group promotes responsible procurement
Recognised for creating some of the world’s most sought-after properties, Mandarin Oriental Hotel Group offers contemporary luxury with its signature oriental charm and has a global presence, operating in major cities and resort destinations around the globe. One of Mandarin Oriental Hotel Group’s Guiding Principles is ‘Acting with Responsibility’ and, accordingly, the Group seeks to make procurement choices that promote human rights and fair working conditions, and also protect the environment.
This case study is based on the 2020 Sustainability Report by Mandarin Oriental Hotel Group, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Mandarin Oriental Hotel Group’s Responsible Procurement Policies and employee training and tools embed responsible procurement principles into its purchasing decisions Tweet This! and also include a robust Supplier Code of Conduct that extends to the Group’s suppliers’ own subcontractors and suppliers. In order to promote responsible procurement Mandarin Oriental Hotel Group took action to:
- implement a Groupwide Responsible Procurement Policy
- provide training
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With this case study you will see:
- Which are the most important impacts (material issues) Mandarin Oriental Hotel Group has identified;
- How Mandarin Oriental Hotel Group proceeded with stakeholder engagement, and
- What actions were taken by Mandarin Oriental Hotel Group to promote responsible procurement
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What are the material issues the company has identified?
In its 2020 Sustainability Report Mandarin Oriental Hotel Group identified a range of material issues, such as economic performance, customer satisfaction, operational eco-efficiency, occupational health and safety. Among these, promoting responsible procurement stands out as a key material issue for Mandarin Oriental Hotel Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Mandarin Oriental Hotel Group engages with:
To identify and prioritise material topics Mandarin Oriental Hotel Group engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Guests
| · Guest Satisfaction Surveys · Solicitation of Direct and Targeted Feedback to Inform Quality Programmes |
| Employees | · Employee Engagement Surveys · Career Development Plans and Performance Reviews · Hotel Sustainability Committees · Safe and Sound Programme · Training |
| Owners and developers
| · Close partnerships and regular communications throughout design, development, construction and management of properties |
| Local communities | · Participation in: – local Hotel Associations – Chambers of Commerce – Business Development Councils – Community Benefit Organisations – local Heritage Preservation Initiatives – local Talent Retention and Training Organisations – local Recycling Organisations |
| Shareholders | · Ongoing and routine discussions with the controlling shareholder Jardine Matheson Group on Financial Performance, Risk Management and other current issues · Financial and Sustainability Reporting · Shareholder Feedback Mechanisms |
| Vendors, suppliers and contractors | · Supplier Meetings to discuss sustainable sourcing opportunities · Food & Beverage Conference · Partnerships with local farmers, ranchers and fisheries |
| Industry peers and trade associations | · Participation in Industry Hotel Carbon and Water Measurement Initiatives · Monitoring and Evaluating Industry Corporate Responsibility Initiatives |
| NGOs and outside advisors | · Interviews and Panel Discussions to discuss opportunities to improve Sustainability Programmes and Reports |
What actions were taken by Mandarin Oriental Hotel Group to promote responsible procurement?
In its 2020 Sustainability Report Mandarin Oriental Hotel Group reports that it took the following actions for promoting responsible procurement:
- Implementing a Groupwide Responsible Procurement Policy
- In 2019, Mandarin Oriental Hotel Group initiated a formal Responsible Procurement strategy and roadmap to improve its sourcing practices, establishing a Groupwide Responsible Procurement Policy to embed responsible procurement principles into its purchasing decisions. The policy includes a Supplier Code of Conduct which not only sets out principles and minimum standards that the Group expects its suppliers to comply with, but also ensures that they hold their own suppliers and subcontractors accountable. Mandarin Oriental Hotel Group also maintains a whistle-blower policy where employees and suppliers may report any concerns about malpractice.
- Providing training
- Training on Responsible Procurement was introduced by Mandarin Oriental Hotel Group to equip hotels with the knowledge and tools to procure responsibly. Sustainability Champions and procurement employees received the training first in 2019, while the training content was later adapted for all employees in 2020. Employees are also encouraged to make responsible purchasing decisions in their daily lives. To support the training, Responsible Procurement Guidelines were established in 2020, offering more detailed instruction and guidance. Best practices in responsible procurement were discussed and shared across hotels through internal platforms, including Sustainability Champion meetings, the Group’s sustainability site and social app MyMO.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 308-1 New suppliers that were screened using environmental criteria
2) Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
This case study is based on published information by Mandarin Oriental Hotel Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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