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PROJECT ON CORPORATE SOCIAL RESPONSIBILITY

By:

VISHAL KANOJIYA

MMS – M1022

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Sr. No. TOPICS Page No.

1. Acknowledgement 3

2. About HYATT 4

3. Executive Summary 5

4. What is CSR? 6

5. About HyattEarth 7

6. Green Teams 8

7. Exertion of the Green Teams 10

a. Grand Hyatt Kauai 10

b. Grand Hyatt Singapore 10

c. Hyatt Regency Coolum 11

d. Hyatt Regency Scottsdale 11

e. Grand Hyatt Santiago 12

f. Grand Hyatt Erawan Bangkok 12

g. Grand Hyatt Mumbai 13

h. Grand Hyatt Shanghai 13

i. Andaz Liverpool Street 14

j. Grand Hyatt New York 14

k. Hyatt Regency Taba Heights 14

8. Recognitions 15

9. Conclusions 16

10. Bibliography 17

Acknowledgement:

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It feels special privilege being given the opportunity of presenting this project to SIMSREE. It made me gather some real quality information and understand the CSR activities of a big organization from Hospitality industry in detail.

I would like to thank Mr. Bharat Nadkarni for giving this opportunity of finding, understanding and evaluating the various CSR activities of HYATT. Without his guidance in realizing the key elements of CSR and an insight into the various factors related to it, the understanding of such activities and its relation to the enterprise would have been intricate and difficult.

Also, I would like to thank my father Mr. P. Kanojiya whose extensive experience in Hospitality helped me find an authority from HYATT and procure information about their working.

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About ‘HYATT’

HYATT is a global hospitality company with widely recognized, industry leading brands and a tradition of innovation developed over more than fifty-years of their history. Their mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. They focus on this mission in pursuit of their goal of becoming the most preferred brand in each segment that they serve for their associates, guests, and owners. They support their mission and goal by adhering to a set of core values that characterizes their culture.

HYATT has become a worldwide brand and has been recognized among the ‘Best hotels of the World’. It has been conferred with umpteen accolades and recognition for its indomitable and unique hospitality service.

It is into the business of Hotels and Resorts and as on March 31, 2010, it is known to have a worldwide portfolio of 434 properties and yet growing continuously. HYATT’s subsidiaries manage, franchise, own and develop hotels & resorts under the Hyatt, Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Place and Hyatt Summerfield Suites.

It was founded in the year 1957 when Mr. Jay Pritzker acquired the Hyatt house motel adjacent to the Los Angeles International Airport. It developed into a public company in the year 1962. In 1968, Hyatt International was formed and subsequently became a separate public company. On December 31, 2004, substantially all of the hospitality assets owned by Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated under a single entity, now named Hyatt Hotels Corporation.

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Executive Summary:

The report intends to learn about the Corporate Social Responsibilities of HYATT to understand the various steps taken by them as a sense of responsibility towards the Environment. It is with this objective, that this report presents the various social responsibilities of “The HYATT” group. HYATT is one of the best and the most recognized companies in its line of business. It emphasizes on the social responsibility tremendously and has taken up several initiatives to exercise it.

The report delves into the various CSR activities that the company carries out. It has very well manifested its activities to the common public by creating a dedicated website which provides all the necessary information about their activities. It is known as the ‘Hyattearth’. The report has conducted a detailed study of the website and thus presents the information. They have formed responsible ‘Green Teams’ in every hotel & resort for observing the effectiveness & success of programs and projects implementation. With uncovering the information about the activities of HYATT, one realizes that the company is a staunch believer in doing business with the consent of the nature and tries to work keeping the bigger picture of environment into vision.

The company has taken many initiatives like Green Energy Management (GEM), ENRICH program, Trigeneration Project, observing 1st Wednesday as ‘Earth Day’ of every month. They have also conducted several educational programs with the civilians of Santiago. Also, they have taken up adoption of expensive technology like Photovoltaic energy savers, Solar Water heating system, Vermicomposting, reuse of heat generated from the turbines for purpose of refrigeration and steam production, and rational use of water sources to save as much water as possible. Partnering with pig farmers to feed their livestock with hotels’ used food and involving student community of New York to participate in the Training Student Organizers program to enable them to understand their environment closer are some remarkable & effective ways to improve environment & the society.

The measures taken by the HYATT symbolize their determination towards resolution of various environmental & social problems and seek environmental cooperation in doing its business strategically. As also, it welcomes cooperation from the society, stakeholders and the local government in the realization of its missions and vision through the goodwill and the care it carries through its activities.

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What is CSR?

CSR stands for Corporate Social Responsibility. It is also known as corporate conscience, citizenship, social performance, or sustainable responsible business. It is a form of corporate self-regulation integrated into business. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal is embrace responsibility for, and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: people, planet, profit.

An approach for CSR that is becoming more widely accepted is community-based development approach. In this approach, corporations work with local communities to better themselves. A more common approach of CSR is philanthropy. This includes monetary donations and aid given to local organizations and impoverished communities in developing countries.

Another approach is garnering increasing corporate responsibility interest. This is called Creating Shared Value, or CSV. The shared value model is based on the idea that corporate success and social welfare are interdependent.. Many approaches to CSR pit businesses against society, emphasizing the costs and limitations of compliance with externally imposed social and environmental standards. CSV acknowledges trade-offs between short-term profitability and social or environmental goals, but focuses more on the opportunities for competitive advantage from building a social value proposition into corporate strategy.

The potential benefits to a company carrying out the CSR activities can be as follows:

Human Resources – Aid to competent recruitment and selection.

Risk Management – Reputations that gets build up can help offset the various risks

Brand differentiation – Building Customer loyalty on distinctive ethical values.

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About HyattEarth:

“Hyatt Earth” is a Global Sustainability program adopted by the Hyatt group in order to better focus on its responsibility towards the Society and Environment through its CSR activities.

Their word:

“At Hyatt, we believe that it is a privilege to welcome passionate travelers to our hotels and resorts around the world. With that privilege, we humbly and enthusiastically embrace our responsibility to protect and renew the places that we call home.

Our commitment to protect our planet is backed by the strength of more than 80,000 associates and dedicated Green Teams. Together, we strive to take care of our environment with the same commitment with which we care for our guests. We embrace this challenge because we love it here too.”

The above idea focuses on their organization and integration of the Green Team concept in order to better cater to their duties towards the society and environment.

The program ‘Hyatt Earth’ has 5 areas of focus:

a) Creating a culture of Environmental Responsibilityb) Conserving Natural Resources and Reducing Greenhouse Gas Emissionsc) Reducing Wasted) Establishing Responsible Purchasing Practicese) Integrating Sustainable Practices into the Design & Construction of Our

Properties

The involvement of passionate teams to carry out the activities on the Ground Zero and the brainy ideas of the top management as well as the employees turns an idea into green innovation.

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Green Teams:

Green Teams of Hyatt recognizes the effort for establishment of dedicated teams in each hotel, resort and other properties to actuate the ideas of carrying out Green activities as much as Green Business.

The ‘Green Teams’ of the HYATT are as follows:

Grand Hyatt KauaiGrand Hyatt SingaporeHyatt Regency CoolumHyatt Regency ScottsdaleGrand Hyatt SantiagoGrand Hyatt Erawan BangkokGrand Hyatt MumbaiGrand Hyatt ShanghaiAndaz Liverpool StreetGrand Hyatt New YorkHyatt Regency Taba Heights

To support our Green Teams and to inspire everybody in the Hyatt family to be a part of our global commitment, we have created the following tools:

Hyatt Earth Training:

In 2009, Hyatt Earth Training was launched in full-service hotels. This six-hour, three-part series of interactive workshops is led by the Green Teams and designed to help hotel employees create a plan of action to raise environmental awareness, reduce waste and conserve natural resources at their property.

Hyatt Earth Community:

The online social network, the Hyatt Earth Community, gives Green Team members from all over the world a place to collaborate by sharing their ideas, initiatives and best practices.

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Hyatt Earth Environmental Guidelines & Best Practices:

Distributed to every managed Hyatt hotel, this extensive checklist of best practices is designed to guide hotels with specific steps that they can take, both large and small, to engage employees, reduce waste and to conserve and protect natural resources.

Green Key Eco-Rating Program:

The Green Key Eco-Rating Program, available to the hotels in the U.S., Canada and the Caribbean, gives the hotels and Green Teams yet one more tool to measure environmental progress and performance.

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Exertion of the Green Teams:

Grand Hyatt Kauai:

A small remote island of Kauai where land is precious and landfill is a major concern, the Green Team started a recycling program that allowed guests and employees to recycle from anywhere in the resort. 150 tons of waste of landfills is diverted each year . They also partnered with pig farmers who fed their livestock with hotel’s food waste and kept 15-20 tons of food from decomposing in landfills.

After realizing that the guests too were interested in the protection of the island, the hotel started a program ‘ENRICH’ to let visitors experience the unique wildlife of island by inviting their participation in various activities like helping care for the local wildlife and the rarest species, beach clean-ups, care for rarest plants at National Tropical Botanical Garden.

The Hotel has also introduced photovoltaic Solar panels which produce over 440,000 kWh of clean renewable energy and reduce hotels’ carbon emissions by 230,000 tons. Also, with steps such as switching to compact florescent and LED light bulbs and installing motion sensors and timers, the hotel saves 1.8 million kWh of energy a year.

To conserve water, low-flow showerheads, faucets and toilets were installed which reduced the hotel’s water consumption by over 40%. An optional linen reuse program was put in place to save the hotel an additional 500,000 gallons of water a year.

Grand Hyatt Singapore:

The Green Energy Management (GEM) project was recognized by the National Energy Efficiency Committee of Singapore’s Ministry of Environment. They noted it to be a benchmark for new energy efficiency for the central plant and outside air handling units for hotels and commercial buildings around the world. Within 12 months, the hotel reduced energy consumption by 8 million kWh and saved around 65,000 cubic meters of water.

Trigeneration Project as established by capturing wasted heat from the generators is used to produce hot water, steam and refrigeration. It is one of the first hotels of the world for using this innovative technology and has been awarded by the Singapore government.

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They have also focused on increasing awareness of Singapore’s local Sungaei Buloh Wetland Reserve. It conducts photo contests to explore the beauty of the reserve and offer guest tours of this reserve as also have funded for a guidebook that speaks of the beauty of this reserve and encouragement its maintenance.

Hyatt Regency Coolum:

As a step to tackle the organic waste produced from the kitchens of the resort, landscaping, golf course and offices, they have conducted Vermicomposting that helps in conversion of this organic waste into rich fertilizer for the resort’s grounds and its golf course. This processes 2,000 kg of waste per week and has diverted around 104 metric tons from local landfills each year. It saves $50,000 a year on the whole.

The Team was also determined to conserve water while keeping their grounds beautiful. The hotel uses reclaimed water and when necessary recycled water, to irrigate the grounds and golf course to save as much potable water as possible. They also pull water for emergency services from its lakes, where all storm runoff is diverted. Also, this helps in maintaining the natural beauty of the 150 hectare landscape.

Hyatt Regency Scottsdale:

The hotels management adopted plan to include the nation’s largest Solar hot water system built for a hotel. The project, which has an expected return on investment of 3.5 years, provides hot water to 493 guest rooms, the laundry facility and kitchens, and is expected to reduce the resort’s carbon emissions by an amount equivalent to carbon sequestered by 133 acres of rainforest per year.

The Native American and Environmental Learning Center had many local artists and educators coming to educate them about the Sonoran Desert and how to protect it. The team created two podcasts to further enhance the visitor’s experience with in-depth “audio tours” of the resort and the current exhibitions at the center.

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Grand Hyatt Santiago:

The Green Team here wished to reduce their waste in the city with no municipal recycling program. The Green Team simply collects the resort’s glass, plastic, paper and aluminum and donates it to charities, which in turn sell them to recycling facilities and make money to fund their programs. With these win-win partnerships, the team is able to divert approximately 110 metric tons of waste from local landfills per year while helping local organization like Cenfa, which helps families in need, and Coaniquem, which works with child burn victims.

Another incident where in order to help the people of Santiago, the hotel received a Hyatt Community grant of $15,000 USD to use towards a program called “Por el reciclaje integral de residuos” which means, “For the integral recycling of waste.” This was done as the Green Team worked with local people to start a battery recycling and education program for local residents to educate them about the benefits of recycling and protection of the environment.

Grand Hyatt Erawan Bangkok:

The Green Team at Grand Hyatt Erawan Bangkok helps protect the planet by raising awareness and empowering employees to get involved. Over 600 have participated in the Hyatt Training workshops, gaining 6 hours of training in the areas of environmental awareness, waste and pollution, and energy and water conservation. the team designated the first Wednesday of every month as Earth Day and created a Green Notice Board where each department takes turns posting ideas, tips and news. The employees are encouraged to volunteer and use what they’ve learned to inspire positive change around the hotel and the community.

To conserve water, the team initiated a program to teach housekeepers water conservation tips that have the potential to save up to 1,200 liters per day. To save energy, dimmers and electronic ballasts were installed in the parking garage, reducing the garage’s annual utility bill by 62%. To protect the environment and offset the hotel’s carbon footprint, they partnered with local parks and preserves to plant over 1,500 trees.

Materials recycled range from glass and plastic to used cooking oil and soap. As a result, 2,000 kg of the hotel’s waste is recycled and diverted from local landfills each month. To reduce the amount of food wasted at buffets and banquets, employees are encouraged to take leftovers home to feed their families. And to eliminate the need for harmful, ozone

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depleting chemicals, the hotel switched to CFC-free air conditioners, a chlorine-free swimming pool, and a sulfur-free boiler.

Grand Hyatt Mumbai:

To discourage the use of plastic bags, the team made cotton grocery bags from used linens and curtains and passed them out to people in the neighborhood. They also planted 365 saplings on the outskirts of Mumbai to offset some of the greenhouse gases created by the city’s abundance of vehicles. Within the hotel, the importance of recycling is strongly emphasized and a recycling program has been instituted in every department. Finally, a giant, green wall that displays green opportunities serves as a constant reminder to make protecting the earth a priority in their daily work routine.

The hotel implemented a wide range of environmental projects to reduce waste, pollution and consumption of natural resources. For example, the Green Team installed electric timers in the stairway lighting systems, low-flow water fixtures throughout the hotel and a laundry condensate heat recovery system. The combination of projects throughout the hotel are estimated to have annual savings of about 1.3 million kWh of electricity, 4.4 million megajoules of natural gas, and 81,000 cubic meters of water.

Grand Hyatt Shanghai:

The hotel dramatically reduced its water consumption by installing low-flow faucets and a system that uses room temperature and recycled laundry cooling water for preheating during the winter. The laundry water recycling system is estimated to save 12,000 cubic meters of water per year. The team also replaced more than 4,000 incandescent light bulbs with energy efficient LED and CFL bulbs. The lighting upgrade not only contributed to reduction in energy use, but the hotel was able to reach a payback in just six months as a result of lower electricity bills.

To further engage the employees at the hotel, all Hyatt Earth training materials and videos were translated into Chinese. A portion of every internal TV broadcast and monthly e-newsletters is devoted to the hotel’s green initiatives.

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Andaz Liverpool Street:

The Green Team in London tried to partner their recycling activities with the London’s existing recycling companies to find better solution to deal with waste. Food waste is collected and sent to a local food recycling company where it is converted into rich fertilizers for use by local farmers. All recyclables are separated and sent to local recycling facilities. And any general waste that cannot be recycled is sent to a waste-to-energy plant where it is treated, processed and converted into energy. Andaz Liverpool Street currently recycles 96% percent of its waste and sends only 4% to landfills.

Grand Hyatt New York:

The motto that the Grand Green Apple Team follow is: “Grand Hyatt New York cares about leaving our future generations with a healthier planet.” They partner with local homeless shelters to donate items that include unwanted linens, furniture and individual donations from hotel employees. In addition, the team consistently donates up to 60 pounds of toilet paper to local shelters every week.

Most recently the team at Grand Hyatt New York has been excited about supporting an environmental education opportunity for New York City students through the Hyatt Community Grant and a partnership with the Council on the Environment for New York City. The partnership will enable 1,800 students to participate in the Training Student Organizers (TSO) program and learn about environmental issues through various hands-on activities and services.

Hyatt regency Taba Heights:

The Green Team at the Hyatt Regency Taba Heights is focused on keeping its almost 2,000 meters of beach in beautiful condition. Daily beach clean-ups and weekly intensive beach clean-ups help to prevent waste such as plastics from being swept back into the ocean where they might hurt sea life. Last year, the team also collaborated with other hotels in the area to clean up local roads and to share environmental best practices with one another.

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To reduce its carbon footprint, the Green Team recently prompted the installation of more than 5,000 energy efficient lights across the resort. This action is expected to save the property almost 21,000 kilowatt hours of energy per month.

RECOGNITIONS:

The holistic approach towards bringing about the rational use of the available resources and serving the society in all possible ways has paid-off the company. The bestowal of the following accolades brings pride and recognition to the Management, employees, stake holders, the customers and to the entire organization in a nutshell. The following are a list of some of the recognitions:

Hawaii Green Business Award from Lt. Gov. James “Duke” Aiona – 2010 4 Green Leaf-rating by the New York State Department of Environmental

Conservation – 2009 4 Green Key rating by Green Key Global – 2009 TIME Style & Design's GREEN DESIGN 100 – 2009 Green Lodging Michigan Steward certification from Michigan Department of

Energy, Labor & Economic Growth – 2010 Green Globe Silver Certification – 2010 ENERGY STAR label from U.S. Environmental Protection Agency – 2010 Three Palm designation from Florida Department of Environmental Protection's

Green Lodging Program Leadership Level from California Green Lodging Program – 2010 Top 10 Green Spas and Resorts designation by Organic Spa Magazine – 2010 Enviro-Management Gold Key "Stars of the Industry" Award from the Arizona

Hotel & Motel Association Industry Leadership Award for Environmental Awareness – voted by the readers

of Hotel & Motel Management magazine 2nd Place in Reduce, Reuse, Recycle from Keep America Beautiful National

Awards Program LEED New Construction Silver Certification – 2010 The Corporate Social Responsibility Award in Springboards Awards for

Excellence – 2009 2nd Place in Dubai Green Tourism Award for 2009 from the Dubai Department

of Tourism and Commerce Marketing – 2010 ISO 14001 Certification 2nd Place in Glass Recycling Awards for 2009 from Emirates Environmental

Group – 2010

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1st Place in Glass Recycling Awards for 2009 from Emirates Environmental Group – 2010

These are some of the awards that the company acknowledges.

Conclusion:

The Hyatt has been proactive in bringing about various innovative and implementable schemes into action. It has been instrumental in carrying out various activities as seen afore. Every part of the gigantic organization has been active and exercised as per the stringent guidelines set forth by the team. The Green Team was founded with a focus of organizing the efforts of the organization to achieve high quality execution of the different projects drafted. Every team has brought the bacon home by creating a milestone in the targeted area of improvement and maintenance.

The team has been able to connect not only with the employees but also have driven the guests into the action. Its efforts, to make Hyatt a world-class place to be in, have not come at the expense of the environment. It has regulated its functions, planning and execution of various operations and processes to align with safeguarding the environment.

The team has undertaken many CSR initiatives, from Environment-centric to Society-centric and has made each step successful in bringing about the evolution of a greener better tomorrow. The restructuring and reorganization of the processes that it carried out is symbolic of the dedication of the company towards the environmental cause.

In 1999, one of the four air-conditioning units began to fail and the hotel was faced with two options. They could simply replace the bad chiller, or update the entire ventilation and air-conditioning system with a more efficient one. They chose the environment friendly option of replacing the entire system and brought the Green energy Management program into action. This act required them to halt their operations to some extent and affected the occupancy. Regardless of these consequences, they chose the environment way to bolster the feeling of environmental affection into the minds of their customers and employees.

Thus, the HYATT group has been preemptive in various projects of environmental concern and brought their ideas into execution.

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Bibliography:

The references for the aforementioned information in the presented reports are as follows:

http://www.hyatt.com/hyatt/about/index.jsp?type=clear

http://www.hyattearth.com/index2.html

http://www.hyattearth.com/our_greenteams/index.html

http://www.hotel-online.com/

http://www.businesstravel.about.com/od/hotels/p/ Hyatt _ profile .htm

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