Case study: How the Mandarin Oriental Hotel Group promotes ethical business conduct
As a leading international hotel investment and management group, with deluxe and first class hotels, resorts and residences in sought-after destinations around the globe, the Mandarin Oriental Hotel Group tries to become the world’s best luxury hotel group, not least by operating responsibly.
This case study is based on the 2016 Sustainability Report by the Mandarin Oriental Hotel Group published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ 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
Abstract
As a global brand, operating 29 hotels and eight residences in 19 countries and territories across the globe, the Mandarin Oriental Hotel Group is committed to conducting its global business responsibly and ethically Tweet This!. In order to promote ethical business conduct the Mandarin Oriental Hotel Group took action to:
- promote compliance through the Code of Conduct
- manage anti-corruption risk
- address information protection challenges
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With this case study you will see:
- Which are the most important impacts (material issues) the Mandarin Oriental Hotel Group has identified;
- How the Mandarin Oriental Hotel Group proceeded with stakeholder engagement, and
- What actions were taken by the Mandarin Oriental Hotel Group to promote ethical business conduct
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What are the material issues the company has identified?
In its 2016 Sustainability Report the Mandarin Oriental Hotel Group identified a range of material issues, such as guest health and safety, supply chain management, local community impacts, greenhouse gas emissions, human rights and diversity. Among these, ensuring ethical business conduct stands out as a key material issue for the 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 s 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 the Mandarin Oriental Hotel Group engages with:
| Stakeholder Group | Method of engagement (in 2016) |
| Guests
| · Guest Satisfaction Survey · Solicitation of Direct and Target Feedback to Inform Quality Programmes |
| Colleagues
| · Colleague Engagement Survey · Career Development Plans and Performance Reviews · Hotel Corporate Responsibility Committees · Safe, Sound and Sustainable Programme |
| Owners and developers
| · Close Partnerships and Regular Communications Throughout Design, Development, Construction and Management of Properties |
| Local communities | · Participation in Local Stakeholder Groups Including: – Hotel Associations – Chambers of Commerce – Business Development Councils – Convention and Visitors’ Bureaus and Promotion Organisations – Travel and Tourism Associations – Community Benefit Organisations – Local Heritage Preservation Initiatives – Training and Local Talent Retention Organisations – Local Collectives for Recycling – Employer Organisations and Professional Associations |
| 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 and Beverage Conference · Partnerships with Local Farmers, Ranchers and Fisheries |
| Industry peers and trade associations | · Participation in World Travel and Tourism Council’s Task Force on Industry Strategies for Climate Change · Participation in Industry Hotel Carbon and Water Measurement Initiatives · Monitoring and Evaluating Industry Corporate Responsibility Initiatives |
| NGOs and outside advisors | · Interviews and Panel Discussion to Discuss Opportunities to Improve Corporate Responsibility Programmes and Reports |
How stakeholder engagement was made to identify material issues
To identify and prioritize material topics the Mandarin Oriental Hotel Group convened a stakeholder panel, integrating perspectives from various organizations that included Conservation International, International Tourism Partnership, National Geographic Traveler, United States Green Building Council and World Wildlife Fund.
What actions were taken by the Mandarin Oriental Hotel Group to promote ethical business conduct?
In its 2016 Sustainability Report the Mandarin Oriental Hotel Group reports that it took the following actions for promoting ethical business conduct:
- Promoting compliance through the Code of Conduct
- The Mandarin Oriental Hotel Group’s Code of Conduct sets out guidelines which employees must follow, requiring compliance with all applicable laws, regulations and appropriate standards of business conduct. Additionally, the Code of Conduct demands that all employees are treated fairly, impartially and with respect. Failures to comply with the Code of Conduct are investigated and disciplinary action is taken as appropriate.
- Managing anti-corruption risk
- All General Managers at the Mandarin Oriental Hotel Group actively support anti-corruption policies. In addition, certifications of compliance with the Code of Conduct are obtained every year from all hotels, with a mid-year update. Internal Control Audits also take place at the Group’s hotels and corporate offices across the globe. Moreover, the Mandarin Oriental Hotel Group carries out background checks on potential partners and implements a whistleblower policy and procedure to encourage the reporting of any inappropriate activity.
- Addressing information protection challenges
- Committed to information security and to maintaining the confidentiality, availability and integrity of guest, employee and company information, the Mandarin Oriental Hotel Group implements an information protection programme, governed by the Group Risk Management Committee. Policies and best practices are based on the ISO 27001 and 27002 standards for information security.
Which GRI indicators/Standards have been addressed?
The GRI indicators/Standards addressed in this case are:
1) G4-56: Describe the organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics – the updated GRI Standard is: Disclosure 102-16 Values, principles, standards, and norms of behavior
2) G4-SO4: Communication and training on anti-corruption policies and procedures – the updated GRI Standard is: Disclosure 205-2 Communication and training about anti-corruption policies and procedures
3) G4-PR8: Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data – the updated GRI Standard is: Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
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References:
1) This case study is based on published information by the 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
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