How can Hotels be More Profitable by Using Recycling Material - Essay Example

?Running head: HOW CAN HOTELS BE MORE PROFITABLE BY USING RECYCLING MATERIAL How can Hotels be More Profitable by using Recycling Material Insert Insert Grade Course Insert Tutor’s Name March 15, 2011 1. Introduction and Problem Statement Various industries produce waste materials that are often disposed into the environment. The waste products can pose a problem of environmental degradation if the right procedures are not adopted in the disposal process. The hotel industry produces waste products not only from the food products, but also from other departments of the hotel like accommodation and/or maintenance. Apart from the food wastes, materials like plastics, broken glasses, aluminum utensils and cardboards are often produced in the hotel industries. Some of these materials when disposed into the environment are harmful to biotic life and eventually result into health problems. The surrounding of the hotel will not be very pleasant and this alone is necessary to drive away clients into other competing hotels. The costs of proper disposal of the waste are also high in some instances causing the overall production cost to be high. A better approach to manage the disposal of waste in order to reduce the overall production cost by the hotel and other industries is through recycling of the waste products. Recycling is the process where by the waste materials from an industry are collected and channeled back as raw materials for the production of new products (Townsend, 1993, p10). These materials would otherwise be buried or burnt as a means of disposal. The recycling process has three main steps. The first is to collect the materials that can be reused. There are those materials that seem to be too won out that do not need to be recycled. The next step is to process the materials into a form that can be reused and the last step is to obtain and use the recycled materials. These are basically the processes involved in recycling in hotels (Townsend, 1993, p10). A point of concern is then to consider how recycling of materials can be effectively adopted by the hotels and how this adoption helps them in maximizing their returns. This is the major issue addressed in the paper. 2. Literature Review The cost of production in barely all sectors of the economy has increased posing economic challenges to organizations in various industries. The cost of raw materials as well as that of transportation has increased in the recent past largely contributing to this increase in the cost of production. Various industries produce wastes which are discharged to the environment posing health problems. The supposed consumers of the products of a given company will develop a negative image of the company if it has a filthy surrounding. It is then required that the industries adopt a system of disposal of waste that does have adverse effect on the environment. Unfortunately, the modern means of waste disposal is not always cheap resulting into yet another increase in the cost of production. Besides, some of the materials that are often discharged by companies can be still processed and used for the similar or other purposes by the company or the surrounding community (Townsend, 1993). Recycling of materials in industries is one of the strategic approaches to ensuring sustainability in the organization. The materials that would otherwise be wasted can be put back to the same or different use after some reprocessing. The process has several advantages not only to the organization but also to the community in which the organization is established (Townsend, 1993). Materials like cardboard, plastic, glass, and aluminum are often produced in hotels and can be recycled. This will yield some saving to the hotels management. The management will liaise with some company that offers the recycling services which will in turn supply the hotel with the recycled products at a reduced cost. Alternatively, the waste products can be sold to the recycling companies providing yet another source of revenue. The recycling of materials also helps in reducing the cost of disposal of the waste from a given hotel (Townsend, 1993, p2). The success of a company in a given region and in any sector is influenced by the company’s commitment to all the dimensions of growth and development in the region namely economic, political, and social growth. A hotel institution can attract the public through enacting some economic programs in the surrounding community. Programs that are aimed at helping the financially handicapped or the physically challenged individuals in an organization can be of some help in creating a rapport with the community. The adoption of such recycling program by a company is not always easy. However, if the management of the organization adopts the right policies, the program can easily be implemented. The management of the organization should be a collective responsibility. In the hotel industry, the management should involve both the employees and the guests of the hotel in the recycling program. The opinions of the employees should be sought before adopting the program since they will be in the front line for the implementation of the program. Involving an employee in company operations also make them feel part of the organization thereby improving their productivity. 3. Research Question The major issue to be addressed in this paper is how a hotel can be more profitable through the use of recycling materials. The paper examines how Marriott’s focus on sustainability can make them more profitable in a long time basis. In particular, the paper examines what this is meant by this sustainability and how corporate social responsibility is incorporated in the running of operations in a hotel to compete in the market. The paper also examines the strategies that are currently adopted by the hotels in New York City to ensure that they achieve the required sustainability. It also provides a suggestion on how the above strategies can be developed to enable the hotels to obtain the intended high levels of profits. 4. Research Design a. Sustainability in business The current business world is surrounded by various problems. The scarcity of resources that is necessary for the operations of the companies, the environmental impacts of the company operations, the competition in market for the employees and customers, and even the governmental policies in a given business environment. There is, therefore, a need to develop a mechanism of managing these situations in order to survive in such a competitive atmosphere. Sustainability refers to how a company is able to manage the situation and attract and retain customers while at the same time utilizing the available resources to maximize its returns. It is a way of ensuring an overall contribution to economic development by an organization in that it defines how the organization is unique and how it is striving to provide quality product and services in order to obtain a competitive advantage. b. Marriott’s focus on sustainability and its profitability in a long time basis Marriot is an international hotel that has over 3400 hotels in the worldwide. The company has developed a sustainability approach based on economic and social development as well as environmental conservation as way of carrying out the company’s businesses and demonstrating how the company progresses (Marriott Sustainability Report, 2009, p3). The different kinds of sustainability are enhanced by various parties of the company like the employees, the customers, the owners and shareholders, the franchisees, the government as well as the non-governmental organizations. As a strategy to win more customers, the hotel management has started programs that are geared towards giving back to the societies in which they have been fully established. Provision of food and shelter to some vulnerable groups, education programs in the societies, youth career initiatives, and consideration of cultural diversity are some of the initiatives that will enable the company to attract and retain more customers worldwide (Marriott Sustainability Report, 2009, p13).. Energy and water conservation as well as proper waste usage have been some of the environmental concerns at the Marriott hotel. It has been reported that the increased efficiency of energy in the hotel helps in the reduction of production costs and also promotes environmental safety (Marriott Sustainability Report, 2009, p19). The company had developed strategies for reducing the overall energy and water consumption in the recent years. Marriott’s Retro-Commissioning program that promotes energy conservation has been tested on various properties of the hotel and seen to be efficient. The program was anticipated to conserve millions of kilowatts of power. Such an energy saving program will enable the hotel to increase its profits due to the reduced operation costs. Similar programs have been initiated by the company to ensure water conservation is achieved. The management of waste has not been very easy with Marriott as is the case in other industries. This is particularly due to the difference in the infrastructures in the regions where the hotels are established. Most of the worldwide premises of the hotel are encountering problems in recycling their waste materials. However, the management of the hotel has initiated programs that check the wastes from the company. The program has been seen to be successful in the short period it has taken. For instance, the 2009 landfill waste disposal by the hotel was reduced by 17% from the 2007 figure (Marriott Sustainability Report, 2009, 20). The program is set to be expanded thereby assuring further conservation of resources. This will increase the profitability of the operations at the hotels. c. The current market- corporate social responsibility The current market is characterized by the above noted competition. The attraction and retention of customers is the main aim of every business organization. The business would want to get a maximum return with minimum operation costs. Most of the organizations that have succeeded in the management of their activities are those that consider the management exercise as a collective responsibility of every stakeholder in the organization. The founder of Marriott international developed a motto that serves to be the roots of the company’s success over the years. J. Willard Marriott reiterated that there is need for the top management to treat the associates and employees of the organization kindly so that the effect can be reflected on how the employees handle the customers. The issue of corporate responsibility is the key to success in management of organization. The employees of the organization need to be included in every decision-making process so that they can feel part of the organization. Due to the scarcity of the resources as well as the need to keep the environment as clean as possible, the recycling of materials is necessary in these organizations. However, this can only be achieved through corporate social responsibility. d. Sustainability in the NYC hotels The hotels in New York City have recently strived to achieve the sustainable economic development through various programs. The New York Palace Hotel has had corporate social responsibility as one of the organizational culture. The hotel recently started a ‘soap recycling program’ in an attempt to reduce wastes by the hotel (Clean the World 2010, p.1). The hotel partnered with Clean the World Foundation to carry out this program that would improve the living standards in the community and maintain the environment. It was believed that, through the program, the hotel would be able to provide soaps to thousands of less privileged individuals in the society. It was also anticipated that several tons of landfill would be diverted to be recycled with an annul recycling of about 4 tons of plastic. 5. Recommendations- How this can be developed to reach higher profits Recycling of materials as a sustainability approach can be effective in the hotel industry if certain measures are taken. Firstly, there is need to establish the recycling programs in hotels where such programs have not been developed. The company can establish the recycling service plant within its premises- if this is possible- or it should partner with a recycling service provider. In doing this, the management should adopt the culture of corporate social responsibility. The employees and other stakeholders of the organization need to be included in developing such plans for them to succeed (Townsend, 1993, p12). Secondly, there is need for the hotels to promote the use of such recycled products. Purchasing the products from recycled materials to create a high demand for such products promotes the recycling process. It is also profitable as the products are relatively cheaper than the new products and are of similar quality. There is also a need to include the guests in the recycling program. Most guests in the hotel will positively receive the hotel’s recycling programs and may also go an extra mile to support the program (Townsend, 1993, p18). The management should ensure that a recycle bin is strategically located so that it can be seen by all the guests. The guests should be informed of their roles towards the recycling program. This will reduce the amount of materials that are damped elsewhere by the guests. There are occasions during the hotel operations when disposable products are to be used. In such cases, it is important to use the items from recycled materials. It would be uneconomical to dispose a recyclable product. References Clean the World Foundation. (2010). The New York Palace Hotel Adopts Clean the World’s Lifesaving Soap Recycling Program. A Press Release Orlando, FL, Wednesday, June 16, 2010. Retrieved March 15, 2011, from http://www.cleantheworld.org/PressReleases/CleantheWorld-PalaceHotel-Release-050510.pdf. Marriott Sustainability report. (2009). Rainforest Preservation. Retrieved on March 15, 2011 from http://www.marriott.com/Images/Text%20Images/US/MarriottSocialResponsibilityandCommunityEngagement.pdf Townsend, J. (1993). Recycling in Hotels and Motels: A Guide for Hotel and Motel Recycling Managers. University of Florida. Retrieved March 15, 2011, from http://www.p2pays.org/ref/12/11306.pdf. Read More