The document summarizes a case study on how transformational leadership at Palace Hotel Group led to the integration of sustainable practices. Through renovations costing $10 million and taking 2 years, the hotel implemented various green initiatives like waste recycling and energy saving devices. It obtained certifications for being litter-free, green, and benchmarked bronze status. The leadership heavily invested in training staff and farmers to change mindsets and buy into sustainability. As a result, the hotel saved $81,000 annually and reduced waste to landfill by over 10 metric tons. However, maintaining sustainability depends on demand and comes with tensions between financial and broader social/environmental goals.

1. Role of Transformational leadership in
the promotion of sustainable agricultural
practices: A case study of Palace Hotel
Group Name: Bayu
Elizabeth, Binyam, Adeel, Anita & Zarina

2. Outline
Background
Objectives
Findings
Discussions
Recommendations
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3. Background
• In 2008 new owners and management made decision to adapt
sustainable practices.
• Renovations took 2 years and cost $10 million.
• 4 years to kick start before officially recognised in
certification.
• “litter free hotel” (city council), “green hotel” (Ministry of
Tourism), Earth Check Benchmarked Bronze status
certifications.
• Green certifications and features used in re-marketing
• Waste recycling with fertiliser company and adapted farmers
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4. Hotel Engagements
Palace
Hotel
Fertilizer
Factory
Farmers
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5. Objectives
• How transformational leadership has led to the integration of
sustainability concepts
• To investigate the success factors of the Palace hotel in
integrating sustainable concepts in its businesses
• To find out the challenges that the Palace hotel faces in its
efforts to change toward sustainability.
• Critically discuss how to maintain the hotel’s sustainability
practices, and provide a roadmap for others.
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6. Findings
• Total saving amount RM 81,000 per year.
• Through recycling, reduction of waste to landfill @ 10.8
metric tonnes per year.
• Hotel enjoys the niche advantage and “added benefit”, by
offering, “a 4 start hotel at a 3 star rate”
• Hotel promote participation of farmers, and in on-site gardens
trying to emphasise the concept of sustainability
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7. Findings
• Energy saving devices, heat pump for hot water, cisterns,
low-toxic fixtures
• Cleaning practices, plastic bottle policy, management
practices
• Visible ‘green’ branding: art work, decorations, messages,
on-site gardens
• Visible signs of practices also messages to customers.
• Waste management: plastic bottles and bags, re-use of oil
and citrus peel, processing of organic waste
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8. Findings
• Hotel invested heavily in training and value-changing of
staff (and farmers)
• “Mindset change”, “the most costly asset is human – the
training to impact their mind”. Getting staff “believing
what we want to do”.
• Hotel has direct role in guiding farmers’ decisions:
promoting the use of Glomus, contractual relationships
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9. Discussion
• Depends on technology, financial backing, retraining and
‘capacity building’ of stakeholders
• Heavy reliance on training and on validation: financial
and values-based
• Hotel dependent on – and vulnerable to - external demand
• Tensions between financial leadership and broader
concepts of social and environmental sustainability
• Achieves considerable improvements in resource
conservation and solid waste management
• Limits to the certification and transparency
• Transformational leadership has integrated sustainability
as an added benefit to the success of the Palace Hotel
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10. Recommendations
• The hotel could move toward ISO – supply chain
integration.
• Poultry in particular in Malaysia is produced in
chemically-intensive factory farms
• Examples of hotel reviews show limited references
to the green features.
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12. Thank you
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