LYCEUM OF THE PHILIPPINES UNIVERSITY – BATANGAS

GRADUATE SCHOOL

MASTER IN INTERNATIONAL HOSPITALITY AND TOURISM MANAGEMENT

MIHTM 802: Corporate Social Responsibility in Tourism and Hospitality Industry

Hilton Hotel Worldwide: A Case Study Exploring Corporate Social Responsibility

Submitted by:
ARLES JAY NAJE
MIHTM Student

Submitted to:
DR. MARIVIC V. RICAFORT
Professor, MIHTM 808

Date of Submission
 TABLE OF CONTENTS
I. Executive summary
II. Introduction
III. Background (Overview of situation/phenomenon)
IV. Alternatives (Analysis /Issues to be solved)
V. Conclusion
VI. Proposed Solution/Recommendation
VII. References (APA style format)
TITLE: Hilton Hotel Worldwide: A Case Study Exploring Corporate Social Responsibility and
Stakeholder Engagement
AUTHOR/S: Antonia Noonan and Caddie Putnam Rankin
REVIEWED BY: Arles Jay Naje

I. Executive Summary

An in-depth examination of Hilton Hotel Worldwide's (HHW) corporate social responsibility (CSR)

practices in the context of the hospitality industry is provided in the article titled "Hilton Hotel

Worldwide: A Case Study Exploring Corporate Social Responsibility and Stakeholder

Management" by Antonia Noonan and Caddie Putnam Rankin. The article begins with a

hypothetical case dilemma in which a shareholder of HHW must decide whether to support a

shareholder resolution calling for CSR to be considered when determining executive

compensation. From there, it explores various theoretical perspectives on CSR, including Carroll's

pyramid of social responsibility, stakeholder theory, and the opposing views of Adam Smith and

Milton Friedman. Investigating the landscape of the hospitality sector, it brings to light the

discrepancies in CSR implementation among various hospitality enterprises, from corporate

management firms to smaller, single-ownership hotels.

The article gives a thorough description of HHW's past dealing with CSR issues and disputes,

highlighting significant events like sex trafficking allegations and corporate espionage scandals.

It describes HHW's responses, which include establishing a CSR communication platform and a

corporate code of conduct. The article then assesses HHW's performance in relation to its four

CSR obligations: fiduciary, legal, ethical, and global/community. This assessment takes into
account HHW's dedication to maximizing shareholder wealth, adherence to legal requirements,

moral conduct, and participation in international and local activities.

The methodology revolves around an exhaustive review of CSR theories, existing industry

literature, and an in-depth examination of HHW's CSR practices. It relies predominantly on

secondary data sources, primarily due to the nature of the research.

In conclusion, this article provides a thorough and well-structured analysis of HHW's CSR

practices, illuminating the wider context of CSR activity in the hospitality sector. It offers insightful

information on the difficulties and possible benefits faced by businesses like HHW in their pursuit

of corporate social responsibility.

II. INTRODUCTION

In today's global landscape, corporate social responsibility (CSR) has become a crucial aspect of

business activity. Organizations are becoming more and more aware of the value of CSR in

generating profitability as well as in building strong connections with stakeholders, guaranteeing

long-term sustainability, and comprehending the perspectives of both employees and clients. With

Hilton Hotel Worldwide (HHW) as its focal point, Antonia Noonan and Caddie Putnam Rankin's

article "Hilton Hotel Worldwide: A Case Study Exploring Corporate Social Responsibility and

Stakeholder Management" provides a thorough overview of CSR theories and their applicability

to the hospitality sector. While the article offers insightful information about CSR, it also leaves

some knowledge gaps that demand more investigation.

In this article review, we have three goals in mind. By concentrating on three critical areas, we

will first fill in the knowledge gap within the present article. The first topic is stakeholder
engagement, which is briefly mentioned in the text but requires a thorough investigation of how

HHW interacts with its wide range of stakeholders. Our goal is to look deeper into HHW's

stakeholder engagement strategies and processes in order to fill this knowledge gap and provide

a more comprehensive view of their CSR initiatives.

The long-term viability of HHW's CSR projects is our second goal. HHW's CSR initiatives and

solutions to particular problems are mentioned in the article, but a thorough analysis of their long-

term viability is not provided. Our goal is to look into HHW's sustained dedication to CSR practices

throughout time, as well as the challenges they face in upholding these policies. This analysis will

give readers a more comprehensive understanding of HHW's CSR journey.

Finally, we want to explore how customers and employees see things. Although the article briefly

mentions the importance of employee engagement and training in CSR, it does not examine how

staff members and consumers view and react to HHW's CSR programs. By evaluating existing

literature and industry studies, we want to close this gap by learning more about how employees

and guests regard CSR in the hospitality sector. We will then be able to present a more thorough

analysis of HHW's CSR practices.

To bridge these knowledge gaps our main goal is to conduct sufficient relevant literature review.

By doing do so, we aim to contribute to the advancement of knowledge in CSR, particularly in the

context of the hospitality industry, and provide a more comprehensive understanding of HHW's

CSR journey.
III. BACKGROUND

Hilton Hotels Worldwide commonly known as Hilton is one of the leading hospitality companies in

the world founded by Conrad Hilton in Cisco, Texas, in 1919. At present, Hilton Hotel Worldwide

has 7,000 properties in 122 countries and territories across the globe(Hilton, 2023). Given this

figure and the popularity of its brand, HHW is not a stranger to various management issues and

scandals. In the article written by Noonan & Rankin (2017), some of these issues include sex

trafficking accusations in 1998, the corporate espionage scandal, and the theft of trade secrets

from Starwood Hotels and Resorts Worldwide in 2009. Likewise, issues of child trafficking and

prostitution in several Hilton Hotels attracted negative criticisms. On top of that, the issue of

breach of fiduciary duties of HHW officers and directors in 2015, caused significant damage to

the company and its shareholders. However, throughout the years HHW has proven that these

controversies will not take them to its downfall rather they worked their way up to ensure the

delivery of quality guest service while ensuring social responsibilities are being performed by the

organization.

There are various CSR initiatives that HHW integrates into its business operations, one of these

is the Hilton Environmental Reporting (HER) program, later replaced by LightStay. This program

aims to measure the energy consumption, water usage, and carbon footprint of Hilton properties

and contribute to its conservation efforts. In a study conducted by Zientara et al. (2020), they

concluded that Lightstay provides a holistic approach, encompassing not only the precise

assessment of a company's environmental impact within its business operations and strategic

objectives but also functioning as a reservoir of sustainability expertise and a catalyst for

organizational learning. Additionally, through its “Meet with Purpose” and “Travel with a Purpose”

campaigns, HHW was able to relay to its stakeholders that the organization is committed to

changing the traditional way of doing business towards sustainability. Moreover, employee
training and development in CSR-related topics, including ethics and anti-corruption, reflect

HHW's commitment to ensuring ethical behavior within its workforce.

Following a significant lawsuit in 2009, HHW introduced a corporate code of conduct to uphold

ethical behavior and legal compliance. Philanthropic contributions, partnerships with non-

governmental organizations (NGOs), and support for local communities are also part of HHW's

CSR efforts. Furthermore, the company places a strong emphasis on transparency and reporting,

regularly sharing information on sustainability initiatives, legal compliance, and corporate

governance in its CSR reports (Noonan & Rankin, 2017). Even in the past, Hilton Hotels

Worldwide has displayed detailed reporting of its CSR activities. For instance, in a research article

by Holcomb et al. (2007) they articulated that Hilton Hotels Corp. has the most detailed information

on its reporting about its CSR initiatives. Human rights, environmental sustainability, health and

safety, and equal opportunity and diversity were among the topics covered in its report. These

were the findings of the authors in trying to understand the level of socially responsible behavior

of the top 10 hotels (e.g. Hilton, Marriot, Accor, Starwood, etc.) as their focus for the research.

Finally, with the rapid development in the tourism and hospitality industry, it is paramount that

businesses that operate in this field understand the significance of their actions towards

sustainability. Their practices reflect their commitment to safeguarding the welfare of both people

and the environment. Thus, through various CSR initiatives, it allows them to build trust among

their stakeholders. Additionally, customer satisfaction and organizational performance are found

to be interconnected by the corporate social responsibility of an organization (Wong, Kim, & Lee,

2019).
IV. ALTERNATIVES

This paper has three main focuses that we want to address through an in-depth analysis of various

literature which primarily aims to contribute to the advancement of knowledge about CSR

practices in the hospitality industry, specifically those initiatives by Hilton Hotels Worldwide.

First, the article has mentioned various CSR activities of HHW and its endeavors to engage to its

stakeholders, such as its environmental reporting program and its integrated company-wide CSR

communication platform. However, more detailed stakeholder engagement and strategies have

to be highlighted in the article and its implications to the organization and the stakeholder itself. F

or instance, by conveying stakeholder engagement procedures, organizations can identify

and involve their stakeholders in terms of their decision-making, thus creating a more holistic

approach to their operations. Also, through SE, business firms can demonstrate their commitment

to transparency by answering queries from their stakeholders (Guix et al., 2017). In a report by

Vrontis et al. (2020), they concluded that hotels preferred to communicate with their stakeholders

through reporting despite the lack of interactive relationships brought about by this strategy. On

the other hand, company websites are found to have a recognizable potential to build a two-way

involvement between stakeholders and the organization. Likewise, social media platforms like

Facebook also play an important role in stakeholder engagement. In pursuit of investigating how

Hong Kong's luxury hotels, specifically, those rated four-star to five-star by Forbes utilize social

media in their CSR communication and the level of engagement, a research study was conducted

Küçükusta et al. (2019). Their findings concluded that upscale hotels in Hong Kong adopt an

involvement strategy for their stakeholder engagement through social media. Consequently, it

provides two-way communication to the involved parties. Nevertheless, they encourage these

hotels to exercise an integration strategy in their stakeholder engagement. The authors believe
that this is more beneficial for the organization’s SE leading to more dynamic relationships. This

strategy is designed to promote extensive stakeholder involvement, highlighting the organization's

commitment to actively include various stakeholders in its decision-making process (Lane &

Devin, 2017). Hospitality and tourism organizations like Hilton Hotels Worldwide must recognize

the importance of stakeholder engagement which is crucial in enhancing a company's CSR

initiatives, elevating its social legitimacy, and establishing a firm and sustainable reputation

(Vrontis et al., 2020).

Our second objective is the long-term viability of HHW's CSR initiatives. The article makes note

of HHW's CSR programs and approaches to specific issues, but it overlooks a full evaluation of

their long-term viability. Our objective is to investigate HHW's ongoing commitment to CSR

standards as well as the difficulties they have in keeping these regulations. Through this, readers

will have a deeper grasp of HHW's CSR journey.

In this paper, we will begin by analyzing the LightStay Program by Hilton Hotel Worldwide. This

program was launched in 2010, a corporate social responsibility measurement platform that

enables the company to track its environmental and social impact across its multiple properties

across the globe (Hilton, 2022). In a case study by Zientara et al. in 2019, they concluded that

LightStay serves as a comprehensive platform for the HHW properties whose functions go beyond

monitoring and evaluating its environmental and social impact but also offers a repository of

sustainability knowledge and drivers for organizational learning. Moreover, the case study

concentrates on the continuous development of the program beginning its launch in year 2010

until 2017. For instance, in the following years after its launch, a series of enhancements in its

system was made, to cover a broader range of Hilton’s CR strategies that align with the business

needs while at the same time meeting their customer expectations. These improvements included

the following: (1) the ability to track volunteer opportunities, volunteer hours, and monetary
contributions; (2) integration of the HCMI 1.0 (Hotel Carbon Measurement Initiative) methodology

into the "meeting impact calculator"; (3) a donations-recording feature to support relevant

partnerships; (4) an LCA (life-cycle assessment)-based comparison of key brand-mandated

products; and (5) confirmation of the LEED (Leadership in Energy and Environmental Design)

score for hotels with a North American base. Hilton was able to obtain ISO50001 certification in

2014 because of these changes (Zientara, 2019). According to the case study, by the end of

2014, the participation rate for LighStay had more than 90% and had been utilized by more than

4200 properties of Hilton. Furthermore, it effectively evolved into a substantial big-data platform

after collecting utility usage data for 250,000 months and assisting in the implementation of 20,000

improvement efforts by the organization. Finally, in 2015-2016, LightStay became a useful tool

for environmental and social reporting of the company. It ensures the alignment of operations to

standards by various reporting and certification bodies such as the UK’s Carbon Reduction

Commitment, the Carbon Disclosure Project, and TripAdvisor’s GreenLeaders, or the US

Department of Energy’s EnergyStar. Moving forward to 2019, the Global Sustainable Tourism

Council awarded the GSTC-Recognized Standard accreditation for LightStay to Hilton - the first

hospitality organization to receive the said award (Johann, 2022).

Our next stop is to explore the “Meet with Purpose” program by Hilton. This was launched in 2015

and was created to help meeting professionals minimize waste and integrate health and wellness

into corporate meetings and events. The program focused on two areas, the first is “Mindful

Eating” which aims to reduce food waste and encourage participants with healthy food choices.

The second is “Mindful Meeting” which primarily supports sustainable meeting practices (Noonan

& Rankin, 2017). According to the 2022 ESG report of Hilton, the company has recently introduced

the Meet with Purpose checklist to help clients organize more environmentally friendly

conferences and events. (Hilton, 2022). Additionally, Hilton has partnered with ClimeCo, a global

sustainability company whose mission is to reduce carbon footprints with market-based solutions
enabling their partners to have sustainable business operations (ClimeCo, 2022). Likewise, the

company also established a partnership with South Pole, a global sustainability solutions provider

based in Zurich, Switzerland, to develop a portfolio of carbon credits that can be accessed by

their corporate clients as their guide in holding meetings and events in any Hilton properties

across the globe. Finally, with the “Travel with Purpose 2030 Goals” program of Hilton which was

launched in 2018, their CSR programs became more comprehensive, inclusive, and sustainable.

As stated on their official website, Travel with Purpose is an Environmental, Social, and

Governance (ESG) strategy that promotes responsible travel and tourism globally (Hilton, 2022).

By examining these initiatives, we can conclude that Hilton is indeed committed to their long-term

goals, a driving force for a sustainable future.

Stakeholders’ perceptions of HHW’s CSR activities are also a vital aspect that was discussed in

the article. However, it needed an in-depth examination of how these stakeholders respond to

HHW’s CSR initiatives. Stakeholders can be defined as those affected by or can affect firms’

actions(Boadi et al. 2019). Employees, customers, and local communities are among the key

stakeholders of an organization (Shin et al., 2021). Research by Farid et al. (2018) concludes that

there is a positive impact of CSR in relation to employee performance and their cooperation with

the organization itself. Studies have shown that enhancing employees' understanding of CSR can

improve recruitment outcomes, minimize staff turnover, improve job satisfaction, and encourage

more civic-minded work behavior (Supanti, & Butcher, & Fredline, 2015; Tuan, 2017; Wong &Kim,

2020). CSR activities of an organization also boost the brand image they represent thus resulting

in customer loyalty (Martínez & Nishiyama, 2017). Communication also plays a significant role in

developing customer perceptions of CSR programs. For instance, guest satisfaction with green

hotels is influenced by the hotel’s motives as perceived by their guest through their various public

communication channels (Gao & Mattila, 2014).

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