Shangri-La’s Environmental Management System

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The general attitude towards EMS in a company is also a challenge. People generally raise their awareness lately but the overall atmosphere is not so optimistic that people would not proactively devote their effort in domestic area. There is not a high percentage of people who urge business sector to join the EMS.

- Did the “value-added” benefits of ISO 14001 certification match the hotel’s expectations?

The benefits of ISO14001 match the hotel’s expectation. By achieving ISO 14001 certification, the hotel expects to lower environmental impacts and raise its competitive edge.

Implementing the EMS that meet the requirement of ISO 14001, hotel Island Shangri-La enjoys the reputation built among the industry as a result of the leading role. Nowadays environmental consciousness grows significantly, people tends to regard lowering environmental impact as part of business sectors’ social responsibility as what they operate generate pollution in mass quantity. Therefore, going green by achieving EMS of ISO 14001 requirement may give the hotel greater market shares for green products and service and gaining favor of like-minded consumers. The staff morale is also boosted as the achievement makes employees proud to be a member of the Island Shangri-La family.

The hotel estimated that it achieved about 10 per cent total cost savings from energy conservation, water and waste recycling which the 10 percent total cost savings can be represented as 3–5 percent of the room occupancy.

Hereafter I will give a few achievement of Island Shangri-La. In September 1997, it ranked the second in the leading hotels in the Asia Poll and in 6th place in “Reader’s Select the World’s Best Hotel” (Business Traveller Asia Pacific, Institutional Investor). And in 2001, it became one of the top 10 hotels for service in Asia (Travel + Leisure, USA); top hotel in Hong Kong/One of the world’s favorite hotels (Business Travel Poll, Euromoney, UK); Best business hotel in Asia Pacific (Business Traveller, German) etc.

- Do you think early and late adopters of ISO 14001 certification differ in terms of (a) motivations, (b) costs and benefits? How?

Early adopters of ISO 14001 certification will have lower motivation compared with that of later adopters. The beginning is always bitter for people who first do it. Without any relative knowledge, skills and experiences shared by others of the same industry, they have to put extra effort in identifying complex operation and setting out the procedures and everything in EMS. They also risk taking any wrong steps due to no profit by the folly of others. They therefore bear higher executive pressure which may result a decline in early adopters’ motivation. And especially for those companies in the sectors which EMS or ISO 14001 certification do not enjoy high recognition and importance, they possess even a lower level of motivation because investment of time and money on ISO 14001 certification may not outcome as expected.

For the costs and benefits, the firms that have an EMS in place early enjoy the ability to shape regulatory policy or standards because the firm is benchmarked as an environmental leader in its industry. Dean and Brown (1995) even claim that some companies may acquire strategic benefits through regulation. With the capability to influence government regulation, they can also easier manage the market’s favor and do good with their business, as well as increase capital for the EMS certification processes for the late comers.

- What are the challenges for continuous improvement? Have these challenges been resolved nowadays?

The challenges for continuous improvement will be the cost and the complexity of EMS operation. As the ISO 14001 has to be renewed every 3 years, the requirement is equilibrium and it increase the complexity of activity planning, operation practises, reviewing system, utility of technologies and resources and etc. This involves continuous investment of money, time and labour which consumes a lot from a company. The challenges have not been fully resolved today as the ISO 14001 still not being that significant today which enable it full privileges in business development, especially in local level. Island Shangri-La is still finding its way.