2. 2014 MBA 439: Monday Session – Group 1
Meli Cavu
S97007841
Hanisivai Visanti
S11112274
3. Outline
• Learning Outcomes
• Introduction
• Sustainability
• Green Business
• Case Study – Tourism Industry
• Green Hotels
• Pros and Cons
• Conclusion
• Recommendations
4. Learning Outcomes
• Understand Green Business.
• Identify reasons to Go Green.
• Identify Green practices.
• Appreciate Green practices.
7. Economic Performance
Measure: Gross Domestic Product (GDP)
Market value of all final goods and services produced
within a nation during a period of time
11. Solution: Sustainability
“Meeting the economic and social needs of the
present without undermining the fragile ecosystems
that sustain us and jeopardizing the ability of future
generations to meet their own needs.”
12. Millennium Development Goal 7
“Ensure environmental sustainability”
Targets:
Integrate the principles of sustainable development into
country policies and programmes
Reverse the loss of environmental resources
13. “Action is the antidote to despair.”
Joan Baez
“Nothing diminishes anxiety faster than action.”
Walter Anderson
19. Fact & Estimate
United Nations World Tourism Organization
Tourism
- 5% global greenhouse gases
International tourist arrivals
- 1.8 billion by 2030
20. Green Hotels
“Environmentally friendly hotel
with a goal to minimise negative
impact on the earth and
environment while still
providing guests with the
best services
possible.”
21. Green Hotel Goals
Reduce energy, water, and waste
Healthy, quality and safe products for human beings
Protect the environment
Reasonable use of resources
Environmental management as part of Hotel
management
30. •
Pros Cons
Image and Reputation Costly
Cost Savings Consistency
Healthier Workplace Complex Business Model
Tax Credits Juggling Hats
Green Product Demand Play by Same Rules
Branding and Marketing Green washing
Attracting Talent Collective Effort
31. How much does it cost?
Perception – substantial cost
Scale of operations
Basic
Switching to LED
Re-use grey water
Linen re-use
Recycling & conserving
Investment
32. Item Green Normal Usage Consumption Saving
Light Bulb
$10.15
(6.5watts)
$3.00
(100 watts)
3 – 5 months 50% - 70%
Low Flow
Shower Head
$659.35 $143.10 5 – 12 years 30% - 50%
Cooling
$115.00
Ceiling Fan
$2,950.00
Air Condition
3 – 7 years 30% - 50%
Hot Water Heaters
$4,200.00
Solar Heater
$276.00
Instant Electric 5 – 11 years 50% - 80%
Low flow toilets
$403.80
(Pressure
Assisted)
$135.42
(Gravity
Assisted)
4 – 10 years 50% - 70%
Food
Low cost
(Subsistence
Farming)
Unlimited cost
(Purchased) Unlimited 50% - 70%
33. Conclusion
Journey
Collective impact
Here to stay!
Goal – “green” hotels
Triple bottom line
Accrediting body
Challenge – sustainability
Remember “greening” – investment
Green-washing
Integrity extra-ordinary calibre
34. How to Become a Green Business?
1. Green Strategy
2. Reduce
3. Reuse
4. Recycle
5. Involve Staff
6. Keep Learning
Recommendations
35. “Be the Change you wish to see in the world”
Mahatma Gandhi
Recommendations
39. Our Lord God Almighty
Professor James McMaster, Professor Management Studies
Amitesh V Kumar, Graduate School of Business
Mrs. Natanya Potoi-Ulia - Executive Officer, Oceania Regional
Anti-Doping
Management & Staff, Oceania National Olympic Committees
Our families
Acknowledgements
Diagnostic Assessment
Purpose:
We use this method to determine:
the general knowledge of the subject (Green Business) by the audience (class).
to engage the audience (class)
used as an ice breaker
Steps:
We break the class up into 4 groups.
Distribute12 cue cards with a variety of phrases (same phrases for each group) pertaining to Hotels.
Ask the class to sort them according to what they feel are Green practices and those which are not.
Every economy is guided by an economic system to answer the 3 fundamental economic questions of:
Critics of GDP argue that it fails to account for the diminished quality of life.
For this reason, another measure is preferred: Genuine Progress Indicator (GPI).
While an economy’s Production increases or GDP increases, Quality of Life decreases, as Pollution increases, degradation of ecological system continues and the depletion of non-renewable resources increases.
This slide looks at the Greenhouses gases emissions per country.
This next slide looks at the relationship between World GDP and Carbon dioxide Emissions – as you can see that as the World GDP increases, so too does the World Production-Based C02 Emissions.
What then is the solution to this problem?
Sustainability: Meeting the economic and social needs of the present without undermining the fragile ecosystems that sustain us and jeopardizing the ability of future generations to meet their own needs.
The United Nations MDG 7 states: Ensure environmental sustainability with these 2 targets:
Integrate the principles of sustainable development into country policies and programmes
Reverse the loss of environmental resources.
What can we do about our anxiety and despair?
A GB strives to have a positive impact on the environment and community.
A GB demonstrates commitment to a healthy and sustainable future.
A GB adopts the principles, policies and practices that improve the quality of life of its customers and employees.
The Triple Bottom Line refers to the 3 Goals of any Green Business:
Profit
People
Planet
Hotels use up an enormous amount of energy, collect an enormous amount of waste and use a tremendous amount or water.
An effective way to “Go Green” is to use the 4Rs of Re-thinking, Reducing, Re-using and Recycling in the major areas of sustainable hotel operations.
Energy conservation
Water conservation
Solid waste management
Hazardous waste management
Indoor air quality
Community outreach
Building infrastructure
Land use
Don’t you think it’s time to conserve, recycle, and reduce the impact on our planet.
Act Immediately. Take your decision to implement green practices seriously and follow through by implementing small steps now.
2. Rethink.
Identify what’s necessary and what can be eliminated to help ensure a more sustainable environment.
What policies, practices and designs can help illuminate ways of being green by reducing your carbon footprint.
Case Study: The Tourism Industry, particularly Green Hotels both locally and globally
Quick Fact and Estimate:
According to the UNWTO: Tourism is responsible for 5% of greenhouse gases
According to the UNWTO: International tourist arrivals by 2030 should hit the 1.8 billion mark
Definition: A Green hotel is an environmentally friendly hotel with a goal to minimise negative impact on the earth and environment while still providing guests with the
best services possible.
Goals of Green Hotel:
Reduce energy, water, and waste
Healthy, quality and safe products for human beings
Protect the environment
Reasonable use of resources
Environmental management as part of Hotel management
3. Reduce.
Forty percent of what you discard at work is paper.
Implement a paperless policy and print documents only when absolutely necessary.
Buy long-lasting, durable products and buy in bulk to reduce packaging.
Conserve Water.
Install low-flow water spigots and reduce the amount of water that toilets, showers, and sinks use.
Check the water meter daily to identify possible leaks.
Conserve Energy
Switch to LED (Light Emitting Diode) lighting to reduce electricity use. Changing just one light bulb can reduce energy use by 75 percent and prevent 450 pounds of carbon dioxide emissions.
Implement an energy management system and practices to reduce energy use.
Use a programmable or sensor-controlled occupancy thermostat in guest rooms.
Use sensors for outside lighting or infrequently used areas
Use key cards for room power supply.
4. Reuse.
Use linens rather than paper wherever possible in guest rooms, restaurants, and employee workrooms.
Use grey water to water plants and
Place a water cooler in the employee workroom to minimize the use of bottled water.
5. Recycle.
Institute a recycling system for all kinds of materials, including paper, plastics, glass, metals, and cardboard.
This will benefit the environment and reduce the cost of trash removal.
Buy products made from recycled materials and add signs and bins in high traffic areas to encourage employees and guests to recycle.
6. Support Local Markets.
Whether shopping for furniture, office supplies, or food, seek local markets first.
This will strengthen the economic base of the community and reduce the environmental and financial costs of shipping products.
7. Encourage Employee Involvement.
Encourage employees to take part in green practices at work and home.
They could implement a carpool schedule, bring their recycling from home to work and become more energy conscious.
Provide educational seminars for employees to understand how they have an impact on the environment.
8. Create a Green Environment.
Use non-toxic cleaners to help decrease environmental impacts
Decorate with plants
Use natural light to eliminate indoor pollution
Some Green Practices include:
Optional Linen Service
Recycling – cans, bottles, etc.
Water Conservation
Energy Conservation
Bamboo furniture
Non-smoking environment
Organic vegetable gardens
LED lights
Low emission Paints
Organic Pest Treatments
Some Green Practices:
Portioned Shampoo
Eco-friendly vendors
Timers in Showers
Recycling Bins
Non-toxic Cleaning Materials
Bicycle Rental
Organic natural snacks
Low-flow toilets
Recycled Gray water
Recycled Tissue
70 Hotels/Resorts ranging from 2 – 5 star hotels listed on the Tourism Fiji site.
As per the It’s A Green Green World website (http://www.itsagreengreenworld.com/public/countryFJ.html) the following properties are Eco Friendly:
Lalati Resort, Beqa
Castaway Island, Mamanuca Islands
Lomalagi Resort, Savusavu
Matava Resort, Kadavu
Jean Michel Cousteau Resort, Savusavu
Koro Sun Resort & Rainforest Spa, Savusavu
Palmlea Lodge & Villas, Yalava
The trend toward eco-conscious travel has brought with it a growing number of green hotel certification programs in the hospitality industry.
But the sheer volume of different programs and options has led to uncertainty among travelers, meeting planners – and even the hotel operators themselves.
After all, does anyone really know the differences between Green Key, Green Globe, Green Leaf and Green Seal?
Each program has its benefits and drawbacks, and some offer more legitimate measures of eco-consciousness than others.
So what does it mean to be associated with a particular program? Which one best fits your hotel’s sustainability strategy?
For the purpose of this presentation the Green Seal Accreditation Process will be used.
It has seven steps for it’s accreditation process and these are:
Application
Initial evaluation
Waste minimization
Reuse and recycling
Energy efficiency
Conservation and management
Management of fresh water resources
Waste water management
Hazardous substances management
Environmentally sensitive purchasing
3.On-site audit
4.Corrective action
5. Certification awarded
6. Annual monitoring – compliance
7. Recertification
To qualify for certification a hotel must demonstrate sustainable practices in the following areas:
Waste minimization
Reuse and recycling
Energy efficiency
Conservation and management
Management of fresh water resources
Waste water management
Hazardous substances management
Environmentally sensitive purchasing
Verifying that the property is actually doing what they claimed to be doing on paper will be through random assessments
Pros
Image and Reputation – Consumers notice when businesses make an effort to adopt green practices to help the environment – these efforts leave a lasting impression on customers, potential customers and vendors. Going green shows a dedication to more than just making profit. It shows that companies are invested in protecting the communities they serve.
Cost Savings – Initial costs might seem costly but businesses that go green experience overall savings on water, gas and electricity bills. General operating costs over time go down.
Healthier workplace – according to the Green Business Bureau website, companies that promote a healthier workplace report a 20% decrease in the number of sick days used by employees. This benefits companies through increased productivity and less money paid out in medical bills….features organic food selections in the company cafeteria or the use of environmentally friendly industrial and cleaning products.
Tax Credits – Especially in economies where tax credits/incentives are available to companies that utilize environmentally friendly business practices such as switching to renewable energy sources like solar power.
Consumer Demand – As environmental consciousness grows, consumers are demanding more green products and services, according to the Green Business Bureau website. Due to this consciousness, the market share for green products continue to expand in a variety of industries.
Branding and Marketing – If your product or service really makes a difference for the planet and society, you can leverage this in your branding and marketing. People like knowing what they purchase is going to help more than just themselves.
Attracting Talent: Because it is a Healthier workplace, it attracts talent.
Cons
Costs - Some green alternatives like environment-friendly toiletries, wood furniture and organic materials cost more than non-green products. Initial green costs are high. A green business is still a business and just like any other business it must still pay rent, make payroll, figure out marketing and branding strategies and so on.
Consistency – the challenge of staying green
Keeping up – keeping ahead of the competition in new green technologies can be quite challenging at times.
Complex-business model – it’s hard enough focusing on one bottom line: profits. Try focusing on 3.
Juggling Hats – Most green business owners are traditional business people OR environmentalists, but rarely both. To thrive as a green business owner, you must be great at both.
Play by same rules…For Now - Some green business owners are will come expect people will come flocking to see their product or service because of how green it is. They usually are in for a rude awakening – if their product/service does not compete on the traditional business components of functionality, quality, fashion and/or price it will not succeed. Guaranteed. This may change, but not yet.
Green washing: Some businesses claim to be green but do not really carry out green practices all the way. They associate themselves with “Green” solely for the purpose of making profits.
Collective Effort – When not all are committed, green businesses will not succeed.
Is there a cost of going green?
One of major perceptions about going green:
Require substantial cost
You need to be well-off to go green.
This misconception that going green is very expensive could be one of the major impediments for the change towards a greener and healthier society.
This whole idea about going green being expensive is not entirely unfounded. For example, some eco-friendly products are indeed a little bit more expensive than the regular ones.
Of course, there are also other costs involved in going green, such as in making lifestyle changes. Some people would consider these changes to be inconvenient.
The financial cost of going green would depend entirely on the scale of green operations you which to pursue.
Going green is actually more than just about using the “more-expensive” green products.
In fact, some of the going green principles and practices such as recycling and conserving energy can actually help you save money in the long run.
So it is not true that you need to pay more money to live a green life.
If we only focus on the cost of going green to our pockets today, but ignore the higher cost of not going green to our environment tomorrow, then we are being irresponsible and unkind – not only to humanity and other living things on earth, but also to ourselves.
We will be unkind to ourselves, because many of us will still be alive, fortunately or unfortunately, to experience the harms we bring about to the environment -- pollution, global warming and climate change.
Ultimately, when it comes to the cost of going green, the long term benefits to gain often outweigh the costs.
The challenge for most people is really to remember this and choose to make an investment for the future – their own future.
Our green journey has illuminated the part we as individuals play in reducing our carbon footprint toward a sustainable future for us all.
As we delved deeper into “green” practices it became obvious that:
Going green is a journey without an end destination where we must constantly evolve with new methods and technologies available.
An individual properties impact on the environment may be small but the collective impact of properties in green practices was significant.
the growing importance of sustainability indicates that green practices are not a passing trend, but rather will become standard practice among businesses.
the goal for green properties contributes positively to a their triple bottom line and helps the business become more financially profitable over the long term.
Many organisations choose to go through a certification process, while others may implement green practices but forego official certification. At present there is no one accrediting body for green businesses.
This can cause some confusion among consumers and businesses as they become more aware of the positive impact that green practices can create in the environment.
With the lodging industry’s considerable impact on the global economy, the pressure to work toward a greener and more sustainable environment will only increase over time. The challenge to the sustainability of green practices are:
remembering that going green is an investment for the future – our future. That the long term benefits to gain often outweigh the costs.
potential threat of green-washing. Which is when a company claims environmental responsibility but selectively accommodates only those aspects that improve its market image and enhance its financial status.
This can cause consumers to question the efforts of genuine green establishments leading to stricter accreditation procedures.
Our most important realisation is that going green requires a change of perception and agents of change to embrace these practices. People of integrity who are of an extra-ordinary calibre to make that change.
Will you join the ranks of these extra-ordinary individuals and make a positive change to the planets sustainability?
So what can we do as Managers or as soon-to-be MBA Graduates? How does one run a green business? Can sustainability and profitability co-exist? Yes, we think so.
Refer to your handout on “How to Become a Green Business?” – 6 Steps.
Finally, be an agent of change: TRIPLE BOTTOM LINE
Culturally sensitive
Entrepreneurialship
Social Responsible
Active Learner
Learning Outcomes
Floating a soft object we toss it to a random person in class and ask them to tell us one thing they have learnt from our presentation.
Once this person answers they will be rewarded with a baked goodie and can select the next person to toss the soft object to and share what they learnt as well.
We hope to have at least 5 persons responding with their learning outcomes.
