Responsible & Sustainable green business practices: An empirical case study on successful luxury resorts.

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Volume 1 Issue 3 October 2012

ISSN 2277-9089

Asia Pacific Journal of Management and Entrepreneurship

Volume 1, Issue 3 October 2012

A Scholarly, Peer Reviewed, Bi-Annual, Open Access, Online Research Journal

ISSN 2277-8098

Special Issue on Green Entrepreneurship

Indexed and Listed at Ulrich's Periodicals Directory © , ProQuest, U.S.A, The American Economic Association's electronic bibliography, Page 1 Asia Pacific Journal of Management & Entrepreneurship Research (APJMER) EconLit, U.S.A, EBSCO Publishing, U.S.A, Index Copernicus Publishers Panel,Poland, Open J-Gage, India, Inflibnet University Grants Commission (U.G.C), Cabell's Directories of Publishing Opportunities, U.S.A

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Call for Papers Guidelines for Submission of Manuscript COVERING LETTER FOR SUBMISSION:

DATED: 24.10.2012

THE EDITOR APJMER Subject: SUBMISSION OF MANUSCRIPT IN THE AREA OF GREEN MARKETING Reference: National Conference on Green Entrepreneurship

DEAR SIR/MADAM Please find my submission of manuscript entitled ‘Responsible & Sustainable green business practices: An empirical case study on successful luxury resorts.’ for possible publication in your journals. I hereby affirm that the contents of this manuscript are original. Furthermore, it has neither been published elsewhere in any language fully or partly, nor is it under review for publication elsewhere. I affirm that all the author (s) have seen and agreed to the submitted version of the manuscript and their inclusion of name (s) as co-author (s). Also, if my/our manuscript is accepted, I/We agree to comply with the formalities as given on the website of the journal & you are free to publish our contribution in any of your journals. NAME OF CORRESPONDING AUTHOR: AJITH K THOMAS Designation: Associate Professor Affiliation with full address,contact numbers & Pin Code: Saintgits Institute of Management, Pathamuttom P.O., Kottayam, Kerala Pin - 686534 Residential address with Pin Code: Koolipurackal, Anandasramam, Changanacherry, Kerala Pin 686101 Mobile Number (s): 09446354373 Landline Number (s): 0481424373 E-mail Address: [email protected] Alternate E-mail Address: [email protected] NOTES : a) The whole manuscript is required to be in ONE MS WORD FILE only (pdf. version is liable to be rejected without any consideration), which will start from the covering letter, inside the manuscript. b) The sender is required to mention the following in the SUBJECT COLUMN of the mail: New Manuscript for Review in the area of Green marketing c) There is no need to give any text in the body of mail, except the cases where the author wishes to give any specific message w.r.t. to the manuscript. d) The total size of the file containing the manuscript is required to be below 500 KB. e) Abstract alone will not be considered for review, and the author is required to submit the complete manuscript in the first instance. f) The journal gives acknowledgment w.r.t. the receipt of every email and in case of non-receipt of acknowledgment from the journal, w.r.t. the submission of manuscript, within two days of submission, Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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the corresponding author is required to demand for the same by sending separate mail to the journal. The research papers must include clear indications of the purpose of research, methodology, major results, implications and key references. The papers submitted for review should include: 1.Manuscript Manuscript should be sent along with authorized letter in favour of the Editor-in-Chief that it may be published after necessary editing. 2.Cover Page Manuscript of a paper should have a cover page which should contain Title of Paper, Author ( s ) ' Qualification and Designation, Mailing Address, Phone and Fax number and E-mail Addresses. Details about the author should not appear elsewhere in the manuscript. 3.Abstract Each paper should be preceded by an abstract of about 100-150 words 4.Transcript The maximum length of transcript is 6000 words excluding title / cover page and references 5.Footnotes All footnotes should be indicated by serial numbers in the text and literature cited should be detailed under 'References' at the end of the research paper bearing corresponding numbers. 6.Tables and Figures Tables / Figures should be numbered consecutively and inserted into the document in the preferred location. 7.References References should include full details of the name ( s ) of the author ( s ) , title of the article or book, name of the journal, details of the publishers, year and month of publication and individual page numbers as shown below : ( A) Journal : Sharma M. & Bajaj, B.R. ( 1993) , “Coping Styles and Job Satisfaction”, Indian Journal of Psychology, Vol. 41 No. 82, pp. 1-16. ( B ) Book : Nath, T. ( 2004) : Management and Spiritualism : Meditation , Admax Associate publishing, pp. 11-12 8.Submission Soft copy of the paper must be submitted through e-mail: [email protected] or [email protected] All the papers accepted by the editorial board will be published in “Asia Pacific Journal of Management & Entrepreneurship Research” Lebanon International Foundation, Bangalore reserves the right to all published papers.

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Responsible & Sustainable green business practices: An empirical case study on successful luxury resorts. Ajith K. Thomas*, Col. (Dr.) P S James** *Associate Professor, Saintgits Institute of Management, Kottayam. **TA Pai Management Institute, Manipal, Karnataka.

Abstract Traditionally, when anyone from the business community talks “Green”, all the ears receive attention. Maybe this is because of the ‘fad’ value or maybe people think that, they are hearing something which they do not hear usually. Most often, for the sake of corporate social responsibility (CSR), cheap public relations or publicity and due to ‘fad’ factor, hospitality service providers, in Kerala, talk “Green”. They do not do much practically. This study searches for green practices adopted by resorts, which are run by big corporate houses and whose resorts are classified as luxury hotels in Kumarakom, Kerala. The study follows a case study approach, where each resort is appraised, on the best practices, they claim to follow. The observations after this careful study are captured. The researchers have undertaken on site visits and studies of all the 5 resorts, that fall the category of luxury resorts and an attempt is made to collate the best practices of these resorts. The questions that were kept in mind in the interactions with the managers were based on the best environmental practices they claim to do. An audit was done on these practices, that they described added significant value to their customers. The researcher believes that if such practices can be adopted, the guests would recommend these resorts to their friends and relatives, who would travel to Kumarakom. This would definitely work in favor of bettering the revenues of these resorts. Keywords: Sustainable, Green Practices, Corporate social responsibility, Hospitality

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Introduction As noted by Vachon (2007), the pressure on organizations to go green has increased over several years now. Several organizations have turned to their suppliers to use innovative practices in helping them go green. Several of the firms around the world engaged their suppliers in their imitativeness to go green and accept green practices ((Krut and Karasin 1999, Rao 2002). These noting actually shows the importance of green practices in organizations. Most often resorts at Kumarakom are pressurized because of the specific nature of the land as the land is only few meters above sea level. The land looks water logged all the time and at times of monsoons most often water rises above the ground level. The community around these resorts also are very sensitive towards the resorts and do not allow any kind of ‘exploitation’ by the resort owners. The external perceptions when an organization acts in an irresponsible manner can have negative consequences in the success of an organization (Pfeffer & Salancik, 1978; Scott, 2008). When an organization is seen as a “bad actor” in the society it will have a very difficult situation in attracting customers, investors, and employees (Fombrun, 1996). Empirical researches have noted the fact that “counter normative behavior can lead to such consequences for the firm as lawsuits, financial losses through settlements and sales declines, increases in the cost of capital, market share deterioration, network partner loss, or other costs associated with a negative reputation” (Baucus & Baucus, 1997; Davidson, Worrell, & Cheng, 1994; Haunschild, Sullivan, & Page, 2006; Karpoff, Lee, & Martin, 2008; Strachan, Smith, & Beedles, 1983). If a resort is seen as an exploitation area, due to the particular nature and strength of the community (and sometimes political support), they will make sure that the resort closes down. There has been some cases of resorts closing down due to improper usage of natural resources. This study searches for green practices adopted by resorts, which are run by big corporate houses and whose resorts are classified as luxury hotels in Kumarakom, Kerala. Kumarakom located in central Kerala, is a tourist destination because of its proximity and access to Vembanad Lake and Kumarakom bird sanctuary. It is also selected as one of the Ramsar sites. There has been a regular flow of both foreign and national guests to this exclusive destination of natural beauty. The ecosystem and un-spoilt nature and its surroundings are a “must see in one’s life time” as the tourism department puts it in their advertisements. Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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Methodology The study follows a case study approach, where each resort selected is appraised, on their best practices, they claim to follow. The general manager and the chief engineer of each resort is interviewed and a property tour is taken before that, to observe the so called best practices. The researcher has an experience of a decade in the hotel industry and hence believe has an eye for detail for the best practices. The detailed discussion with the managers of the resort for an hour

Figure 1: Methodology adopted for the study included questions on best practices followed, the engagement of the community around them and involvement of the guests etc. Separate audit discussions were made with the guests of the resorts and the community around them to see alignments. The observations during this study and observation during the visit for at least 4 hours to each resort were captured. The researcher has undertaken on site visits and studies of all the 5 resorts, that fall the category of luxury resorts and an attempt is made to collate the best practices of these resorts. The questions that were kept in mind in the interactions with the managers were based on the best environmental practices they claim to do. An audit was done on these practices, that they described added significant value to their customers. Only the ones which Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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actually gave customer value according to the audit is being reported in this report. The diagram of the methodology followed is given above.

Observed best practices Having done the detailed study and audits, those best practices which added significant value to the guests and community was captured and analyzed and rechecked with stake holders in the interviews. The researcher after having done this analysis arrived at the following best practices to have been followed by resorts. All the best practices are numbered and do not follow any particular sequence to try and camouflage the identity as far as possible. 1. Gas plant: Kumarakom being a low lying area, it was very difficult for any resort to get rid of the waste

Bio gas plant converts bio degradable wastes from the kitchen of this hotel into usable bio gas for use in hotel staff canteen and one of the boilers. It recycles almost all the available biodegradable wastes created in the kitchen and production system in the whole canteen runs on this gas.

2. Vermi-compost (composting with the help of earth worms). For the natural degradation of organic matter earthworms are used in this type of composting. Coconut husk, cow dung and soil act as a platform for the breeding of earth worms. Periodically dry leaves and cow dung are added which gets decomposed by the earthworms. This turns into compost and this is used for all farming and gardening. This method of being socially sensitive in managing their wastes has been observed at a few resorts.

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3. EM composting

Effective Microorganism (EM) composting is basically lactic acid bacteria which can be cultured through jaggery. This EM solution is sprayed on the dry leaves which then decomposes in a very fast pace and is used as manure. This is also seen in one of the resorts. The seedy conversation of the bio mass into manure is the advantage of this type of composting.

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4. Adoption of electric buggies

One of the resorts uses electric buggy to move around in the property. The property is more than 40 acres of land and the resort blocks are far separated to create the ambience of a luxury resort. They have a few buggies for guest transfer and a few for

services

of

the

resort

like

housekeeping and food & beverage.

5. Organic vegitable farming and fish faming Traditional and hybrid varieties of rice, vegetables and plantains are being cultivated in some

earmarked spaces in few of the resorts . Organic manure and organic farming practices are used for the cultivation of vegetables, that are required for the resort. It seems some of the resorts are getting enough vegitables to be placed in their buffet breakfast an lunches as local dishes. Manures and germicides which are generated at the location by way of coposting and slurry are used in the cultivation of vegetables. Bio-manures like neem cake and bone meal are used as suppliments to these. Lime stone is used in the initial stage to reduce the acidity of the soil as the soil is acidic in nature at Kumarakom. Fish farms are also maintained in these resorts for getting the fresh catch of the day at Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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these resorts. 6. Bio – mass Digester One of the resorts has a Biomass digester to manage the leaves that fall into their compound. Dry leaves are collected from the premises and taken to the digester, which is made of bamboo. Bamboo can withstand years of withering and environmental conditions. Slurry from bio-gas plant gets added to this. Bacteria and other microorganisms develop in this and after a few days, it becomes very good manure for the plants and the tress in the resort. By this they eliminate chemical fertilizers and keep the resort eco-friendly and clean.

7. Fish Sanctuary A Fish sanctuary has been developed at one of the resorts to protect the local fish. 30 species of fishes or more has been recorded in this sanctuary. The fishes like Vembanadu, Half-beak

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and Denisons’ Barb are endemic and critically endangered. They breed Karimeen or Pearl Spot a very special delicacy which is only seen in this part of the country. Pearl Spot fish inhabit the backwaters and adjoining water bodies too, in their natural habitat. This fish sanctuary is an angling free area. They have created nest for the fishes by fixing a meter long bamboo poles in 40 degree inclination on the sides of the water bodies for their breeding facilities which takes place mainly in the monsoon season. This idea of making nests for the fishes came from the local tradition and has been adopted at the resort.

8. Butterfly Garden A resort has a scientifically designed butterfly garden which is set up with pond, fountain, a good collection of larva host plants and nectar plants, for attracting different species of butterflies. This garden is maintained by the naturalists and nature enthusiasts from the local community. There are 70 species of butterflies from 9 families that were recorded in this garden. Southern Birdwing the largest butterfly in the sub-continent, which has a wing span of 190mm to the smallest Grass Jewel having a wing span of 15mm are regular visitors to the garden. Some rare and uncommon butterflies like Malabar Rose and Tamil Lacewing were also recorded as present in this garden. Water bodies in and around the resort are a paradise for dragonflies and damselflies. 50 species of dragonflies and damselflies have also been recorded here. These magnificent insects play an important role in Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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controlling the menace of mosquitoes in the resort (otherwise a mosquito laden land due to water logging) by acting as biological control.

.

9. Sensitizing the guests The guest s at the various resorts are seen sensitized by way of communication to the guest both verbally and written that they should use the resources scarcely. The employees of these resorts

are seen taking pride when they speak on this subject. Guests are sensitized on the commitments of the resort, Housekeeping supply usage, water conservation, air-conditioning, the specific nature of the location and the like to name a few.

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All the trees and mangroves of the are (ecosystem) are conserved and the same has been communicayted to the guests. At the time of show around of the property the researcher also found that the staff members are very smart in sensitising the guests in their verbal explanations.

10. Maintanence of natural setup and surroundings Resorts take great care in maintaining the natural setups of the place and only very little impact on

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environment is done on the construction of almost all the resort studied.

11. Rainwater harvesting Most of the resorts uses rain water harvesting to suppliment ther requirement of water for their use by managing the rainwater which is avaialable in plenty at the lication. They harvest rainwater and treat it for use in theirbathrooms and gardening.

12. Protection of Mangroove forest Special importance is given to the mangroove forest that is available in the location as it prevents soil erosion, development of fish wealth (as mongroves act as natural nest for fishes)

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13. Involvement of the local culture Local culture is protected in one of the resorts studied by involving the local community in resort activities and entertainements An example is depicted in the following picture where a lady from the local speak to the guests on making crafts from the screw pine plant and guest even get to study how to make one artifact with her if interested.

Some of these are even used at a resort as guest supplies and sold in their botique as collectables for their guests. The guest spoken to are very impressed bythe involvement of local culture in this resort.

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14. Solar boats

Solar water boats are used for guest transfers and small sight seeing trips in the lake. Tis is the first of its kind in Kumarakom by a resort. But when spoken to others in the area who run resorts it was informed that his is one best practice that all of them are willing to adopt except for the menace of water hyacinth in the area. It seems tah the water hyacinth that float on these waters acta s resistence to the movement of these boats as they are not very powerful. We can see the water hyacinth logged parking area of the boat in the central picture above.

15. Herbal Gardens The researcher saw two resorts maintaining herbarium in their property. Traditionally Ayurveda was reinvented in these Kerala resorts, to treat guest for their well ness. The herbariums will give guests a glimpse of the medicinal plants which are used for making the medicine concoctions for use in Ayurveda. The resorts take pride in maintaining such herbariums even in the corridors and rooms.

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16. Replanting of houses from elsewhere in the reort Traditional buildings are dismantled from various lications in Kerala which are reallty a centruy old and reconstructing it in their resorts wa sfollwed by most of the resorts. They say the architecture is very suited for the climatic conditions of Kerala and they talk about this architectutre to immerse them and sensitise them to the architecture. They also talk about tahe antique val;ue to the guests.

17. Recycling of water bottles within a resort One of the resorts collect all the used water bottles in their village by using deposit boxes kept at various locations in the village and recycle (in a very innovative way) as can be seen from the picture below. They fill the bottles with clay and use cement mortar to make compound walls around the demarcated spaces in the resort. This has not been seen anywhere and they claim, they are the first ones to come up with such an innovation. Being a tourist destination and the area being deprived of clean drinking water almost all the people who visit the land use packaged water for consumption. Before their initiative water bottles were littered and was causing menace in the area which was otherwise Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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water logged. They also initiated a project to fence a local school with this wall, which means that they are giving something back to the society too. The community is very receptive about this project and all the stake holders whether it be community or guests or employees are very supportive on this initiative.

18. Waste Segregation All solid wastes are segregated on daily basis into their respective category and are sent for recycling. The used newspaper are converted into envelops and used between the department and sister-concerns of the resort. Special plans are made for plastic eradication; plastic bottles are collected in strict manner and sent for recycling. These bottles are recycled as flakes by a

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company in Kerala. Weekly training programs are conducted for the staff and people in the surrounding areas of the resort.

19. Awareness programs for general public Awareness programs are conducted on every Saturday by one of the resort with the help of their employees, on the effective use of natural resources. Trainings are conducted very week at the village in various locations to sensitize the community for optimum use of resources. Special trainings are conducted for helping the community learn how to make envelopes which will be bought by the resorts.

20. Engaging expriences for the guests

All the programs listed below are engagement to the guests ast one of the resorts as can be seen from the picture below. Guest at the end of each of these immestions spoken to talk about the “wowexperience” that they got from each immesion. Guest are given experiences of traditional art forms and bird watching to cocnut plucking to glimpses of toddy making and coir making.

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Most often guests unwind in the real sense when they are at these resorts and all of them are really happy that they became a part of reponsible tourism. Every one from all these resorts return with a feeling and urge to come back as they feel that all the resorts studied by the researcher work as vehicles to support the thinking of green among all the stakeholders. Guests will come back to these resorts and employees will surely like to work here for a long time and

community will support their

endeavour.

Conclusion Literature and researches always look for the reliability of any best practices. The researcher argues that if such practices can be adopted, the guests would recommend these resorts to their friends and relatives, who would travel to Kumarakom. This would definitely work in favor of bettering the revenues of these resorts. The entrepreneurial initiatives of each resort in this area are highly commendable and some of them have been awarded by the governments too. The entrepreneurs also allow their resorts to be visited by school children who can emulate and discuss on innovative practices by them. Several management students are also welcomed to their resorts by the owning companies of these resorts to allow serious discussions on innovation and they welcome recommendations by these students. A few of the practices were recommended by students, most of the owners confess. The researcher also like to argue from the findings of this empirical case study approach that the innovative best practices should be confirming to the requirements of the land than copying any Asia Pacific Journal of Management & Entrepreneurship Research (APJMER)

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innovation from other places. What may be good at one location or the practices of one location might be not very easily replicable without suitable changes at other locations.

References:  Baucus, M. S., & Baucus, D. A. 1997. Paying the piper: An empirical examination of longerterm financial consequences of illegal corporate behavior. Academy of Management Journal, 40: 129–151.  Davidson, W. N., Worrell, D., & Cheng, L. T. W. 1994. The effectiveness of OSHA penalties: A stock-market-based test. Industrial Relations, 33: 283–296.  Fombrun, C. J. 1996. Reputation: Realizing value from the corporate image. Boston: Harvard Business School Press.  Haunschild, P. R., Sullivan, B. N., & Page, K. 2006. Organizations non-gratae? The impact of unethical corporate acts on interorganizational networks. Organization Science, 17: 101–117.  Karpoff, J. M., Lee, D. S., & Martin, G. S. 2008. The cost to firms of cooking the books. Journal of Financial and Quantitative Analysis, 43: 581–612.  Krut, R. and Karasin, L., Supply chain environmental management: lessons from leaders in  Lange , D., & Washburn, N. T. (2012). Understanding attributions of corporate social responsibility Academy Of Management Review, 37(2), 300-326. doi:10.5465/amr.2010.0522 Manage., 2002, 22, 632–655.  Pfeffer, J., & Salancik, G. R. 1978. The external control of organizations: A resource dependence perspective. New York: Harper and Row.  Rao, P., Greening the supply chain: a new initiative in South East Asia. Int. J. Oper. Prod.  Scott, W. R. 2008. Institutions and organizations: Ideas and interests (3rd ed.). Los Angeles: Sage.  Strachan, J., Smith, D., & Beedles, W. 1983. The price reaction to (alleged) corporate crime. Financial Review, 18: 121–132. the electronics industry. United States-Asia Environmental Partnership, 1999.  Vachon, S. (2007). Green supply chain practices and the selection of environmental technologies. International Journal Of Production Research, 45(18/19), 4357-4379. doi:10.1080/00207540701440303

© Copyright 2012 Asia Pacific Journal of Management and Entrepreneurship Research (APJMER) & Lebanon International Foundation (LIF) No part of this publication may be reproduced or copied in any form without prior written permission of the editor. The views expressed in this publication are purely personal judgments of the authors and do not reflect the views of APJMER and LIF.

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