The spirit of continuous improvement – CSR verification
10/01/2012
LRQA's Richard Gunawan discusses with the CSR Manager of a leading Asian Hotel chain about the importance of implementing a more systematic engagement process to address stakeholders’ concerns.
In this three article series, LRQA’s Richard Gunawan, VP for business and sustainability development Asia interviewed the CSR Manager of a leading Asian Hotel chain. This iconic Hotel has gone through two CSR verification journeys with LRQA. Read an excerpt here:
LRQA: What is the most valuable lesson learnt during the 2nd verification process?
CSR Manager:
During the verification process in February 2011, LRQA highlighted the importance of implementing a systematic stakeholder engagement process. Hotel's business success relies on its relationships with its customers, suppliers, investors, employees and communities – in other words its stakeholders. It is essential for the management at this Hotel to understand their motivational needs and build a systematic approach to address them. Post verification, the management has prioritised its need to be more engaged with the stakeholders.
In Hong Kong and China, issues such as air quality, energy usage, carbon reduction and environmental protection are growing public concerns. The pressure from public and NGOs will lead to governments introducing new rules and regulations. Without proper consultation these regulations might negatively impact the hospitality industry. For example, implementation of some environmental requirements is costly and difficult for the hoteliers. Yet, the group may come up with alternative solutions or adopt other practical approaches that are equally effective in reducing environmental impact.
The management intends to implement a more systematic engagement process to address stakeholders’ concerns. This will create more credibility for group and will provide opportunities to work with the government and industry associations to ensure that future legislation does not adversely impact the group’s long term interests. Gradually, it will minimise operational risks and risk to the reputation of the Hotel's brand.
LRQA: As part of continuous improvement process, would you consider adopting a more stringent standard such as GRI B+?
CSR Manager:
There is a fallacy in the CSR community that organisations should aim for A+ standard.
As a leading Hotel chain in Asia, we continue to report and monitor all factors that are important to the business. If some elements are not adding value to the business, we would not continue adding them to achieve B+ or A+.
LRQA also highlighted the importance of having a proper data management and monitoring during the verification process. In the following year, prior to verification, we will ensure that the quality of data and collection process is top class to ensure that what we report is accurate and in-line with our business objectives. We may also assign LRQA to verify and sample some data from local properties. This is critical to our business and hence more important than getting an A+ score.
LRQA: How would you describe LRQA verification process?
CSR Manager:
LRQA verifiers are thorough and are committed to the successful execution of the verification process. During the process, errors in data were promptly identified, helping us to take corrective measures to ensure the accuracy of our reports. LRQA verifiers helped us to mitigate risks affecting our reputation and also to enhance our brand value. We also appreciated the helpful suggestions they made on process improvements.