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The financial impact of environmental management on operations in selected hotels in Cape Town South Africa
Author(s)
Van Rensburg, Luke Christopher
Date Issued
2015
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
Environmental management is a new phenomenon, one which affects not only the way that
individuals live their lives today but also how businesses operate. Environmental policies
cannot simply be introduced, especially in the hospitality industry. Although the industry
thrives off customer satisfaction, like any other business it relies on making a profit each
financial year for it to stay operational.
This research was undertaken to determine if implementing an environmental policy has any
effect on the financial statements of a select group of hotels within the Cape Metropole. In
answering this question, the researcher was able to establish what the relationship between
implementing environmental management policies was and the effect it has on the financial
side of a specific group of hotels. “Hotels are also being pressured to move towards triple
bottom line reporting (3bl), involving the relationship between profit, people, and planet”
(Kleindorfer, Singhal & Van Wassenhove, 2005:482). “To encourage an environmentally
more responsible behavior in the hotel sector, it was necessary to demonstrate the cost
savings of these practices” (Bohdanowicz, 2005:188-205).
The research methodology consisted of both quantitative and qualitative approaches.
Interviews were conducted with participants from key organizations, and with people who
were linked to the hotel industry and environmental management. These included
government organizations, SARS, which deals with all tax-related laws in South Africa,
Eskom, the country’s energy providing company, as well as with a travel agency which deals
with hotel bookings on both a local and international level. A focus group was also
undertaken to ensure that the problems being researched were discussed fully by likeminded
people, and by those who were directly involved with carrying out these policies in
hotels. Questionnaires were sent to all the four- and five-star hotels within the Cape
Metropole to assess the current situation relating to environmental management and their
financial profit or loss.
The research determined that implementing environmental policies has both a positive and
negative effect on financial statements, thus proving that there is a direct link between the
two. The findings clearly showed that environmental policies, whilst good for the
surroundings and the environment, can be financially draining for a business if not properly
planned prior to implementation. With correct research, however, this can be done in the
correct manner, with results that are positive for both the environment and for the company’s
financial statements.
individuals live their lives today but also how businesses operate. Environmental policies
cannot simply be introduced, especially in the hospitality industry. Although the industry
thrives off customer satisfaction, like any other business it relies on making a profit each
financial year for it to stay operational.
This research was undertaken to determine if implementing an environmental policy has any
effect on the financial statements of a select group of hotels within the Cape Metropole. In
answering this question, the researcher was able to establish what the relationship between
implementing environmental management policies was and the effect it has on the financial
side of a specific group of hotels. “Hotels are also being pressured to move towards triple
bottom line reporting (3bl), involving the relationship between profit, people, and planet”
(Kleindorfer, Singhal & Van Wassenhove, 2005:482). “To encourage an environmentally
more responsible behavior in the hotel sector, it was necessary to demonstrate the cost
savings of these practices” (Bohdanowicz, 2005:188-205).
The research methodology consisted of both quantitative and qualitative approaches.
Interviews were conducted with participants from key organizations, and with people who
were linked to the hotel industry and environmental management. These included
government organizations, SARS, which deals with all tax-related laws in South Africa,
Eskom, the country’s energy providing company, as well as with a travel agency which deals
with hotel bookings on both a local and international level. A focus group was also
undertaken to ensure that the problems being researched were discussed fully by likeminded
people, and by those who were directly involved with carrying out these policies in
hotels. Questionnaires were sent to all the four- and five-star hotels within the Cape
Metropole to assess the current situation relating to environmental management and their
financial profit or loss.
The research determined that implementing environmental policies has both a positive and
negative effect on financial statements, thus proving that there is a direct link between the
two. The findings clearly showed that environmental policies, whilst good for the
surroundings and the environment, can be financially draining for a business if not properly
planned prior to implementation. With correct research, however, this can be done in the
correct manner, with results that are positive for both the environment and for the company’s
financial statements.
Additional information
Thesis (MTech (Tourism and Hospitality Management))--Cape Peninsula University of Technology, 2015
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