group assignment analyze the content of global tourism codes of ethics and explain how international hotels response to the articles in this global tourism codes by their own codes of ethics

Hilton is so focused on this, that they have committed to double their investment in social impact and cut their environmental impact in half by 2030... While Hilton is a global company

NATIONAL ECONOMICS UNIVERSITY

COURSE: BUSINESS ETHICS

GROUP ASSIGNMENT: Analyze the content of Global Tourism Codes of Ethics and explain how international hotels response to the articles in this Global Tourism

codes by their own codes of ethics

I Global Tourism Code of Ethics

Il Hilton’s compliance through its code of conduct and programs

1 Introduction about ESG strategy and framework

LightStay

Meet with Purpose program (2021)

Hilton Effect Foundation

a Respect diversity in guests’ culture

b Respect guests’ rights, take special care to the underprivileged

B TOWARD EMPLOYEES

a Respect to labor rights of staff & employees

b Respect to human rights of employees

C TOWARD COMMUNITIES

a Respect to local culture and law

b Develop a business that is aware, contributes to the maintenance and promotion

of both local culture & economy, and does not harm the community

D TOWARD SUPPLIERS

a Promoting universal respect for human rights

b Responsible sourcing

4 Governance - partnership

| Global Tourism Code of Ethics

Tourism activities are dependent on natural resources but also have an effect on the environment Due to this influence, it is crucial that the industry members abide by sustainable development standards in their business Among 10 articles

of the Global tourism code of ethics, there are four articles (article 1,2,3,5) that

address sustainable responsibilities concerning Environment, communities,

Individuals, and Workers Our group chose Hilton Worldwide Holdings Inc a

global hospitality company to analyze their compliance to the focused articles

Aside from the main focus from the four articles, we also use codes of other

articles that indicate aspects of sustainable responsibilities

Four focused articles

Art2 Tourism as a vehicle for individual and collective fulfillment

Art1 Tourism's contribution to mutual understanding and respect between peoples and societies

2 All forms of tourism

development that are

conducive to saving rare

and precious resources,

in particular water and

of the impact of their development projects on the environment and natural surroundings;

they should also deliver, with the greatest transparency and objectivity, information on their future programmes and their foreseeable repercussions and foster dialogue on their contents with the populations concerned

2 Tourism activities should respect the equality of men and women; they should promote human rights and, more particularly, the individual rights of the most vulnerable groups, notably children, the elderly, the handicapped, ethnic minorities and indigenous peoples;

1 The understanding and promotion of the ethical values common to humanity, with an attitude of tolerance and respect for the diversity

of religious, philosophical and moral beliefs, are both the foundation and the consequence of responsible tourism; stakeholders in tourism development and tourists themselves should observe the social and cultural traditions and practices of all peoples, including those of minorities and indigenous peoples and

to recognize their worth;

in the creation of direct and indirect jobs resulting from them;

human beings in any form, particularly sexual, especially when applied to children, conflicts with the fundamental aims of tourism and is the negation

of tourism; as such, in accordance with international law, it should

be energetically combated with the cooperation of all the States concerned and penalized without concession by the national legislation of both the 2 Tourism activities should

be conducted in harmony with the attributes and traditions of the host regions and countries and in respect for their laws, practices and customs;

activities when these are

exercised in particularly

sensitive areas: desert,

polar or high mountain

regions, coastal areas,

enriching and enhancing

the standing of tourism,

provided they respect

the natural heritage and

local populations and

are in keeping with the

carrying capacity of the

sites

2 Tourism policies should

be applied in such a way

as to help to raise the standard of living of the populations of the regions visited and meet their needs; the planning and architectural approach to and operation of tourism resorts and

accommodation should aim to integrate them, to the extent possible, in the local economic and social fabric; where skills are equal, priority should

be given to local

Il Hilton’s compliance through its code of conduct

and programs

1 Introduction about ESG strategy and framework

As one of the world’s largest hotel companies, Hilton recognizes the company’s

responsibility to protect communities and the planet

Travel with Purpose is Hilton’s Environmental, Social, and Governance (ESG)

strategy to drive responsible travel and tourism globally Hilton is so focused on

this, that they have committed to double their investment in social impact and cut

their environmental impact in half by 2030

These overarching Travel with Purpose 2030 Goals are underpinned by targets that closely align with the global Sustainable Development Goals adopted by the United Nations in 2015

Hilton’s ESG programs are built on the principle:

“As with everything we do, people are at the heart of our ESG programs Our Team Members around the world bring Travel with Purpose to life with

dedication, passion, and a love for their neighbors While Hilton is a global

company, our hotels are local businesses, proud to serve their communities, support livelihoods and bolster economies.”

ESG framework

Hilton has developed a framework that will guide its efforts to address

environmental, social, and governance (ESG) issues The framework includes

ambitious environmental targets, expanded social goals, and formal

incorporation of governance priorities The company is committed to

preserving the destinations where it operates and achieving a net-zero future Hilton is also focused on creating an engine of opportunity for its Team Members and community members

koi w

© POLICIES &

CONDUCT REPORTING WASTE a

vd a net zero

oom “ Create and partner wit!

ae cross-industry networks to ody

WATER ` * né vs Travel with Purpose object

Promote responsible Operate through best-in-class Canwome ta hilton inchrsive conduct Mar

LightStay

What is LightStay?

Launched in 2009, with two years of internal testing, LightStay is

a Hilton proprietary system invented to track hotel’s

environmental performance

Nowadays, it is still Hilton's award-winning ESG management system that supports the tracking and analyzing progress towards their 2030 Goals

Reputation: LightStay aligned with the globally recognized criteria

of the UN-founded Global Sustainable Tourism Council (GSTC)

2021, LightStay was also recognized by Google as an pioneer program for label eco-certified hotels

Who has the rights and responsibilities to use LightStay?

LightStay is a Global Brand Standard, which means both Hilton's managed and franchised hotels are required to use the platform

to connect and exchange information with peers.

- Features of LightStay

+ Environmental impact tracking: Tracking water, energy consumption & carbon, waste generation to come up to improvement projects

+ Social impact tracking: volunteer activities, donations, engagements with local partners

+ Best-practice sharing: support the hotel to share best practice related to sustainability

+ Context-based data: predicting utility consumption and costs

+ Risk Mitigation: mapping all hotels against external risk + Engagement tools: Connecting the hotels in chain through reports, training programs

+ Client reporting: measure emission of clients from meetings

& events

+ Third-party verify

Meet with Purpose program (2021)

The Meet with Purpose program was launched to help clients create meaningful change in both the attendee experience and within the communities they visit The program allows customers to integrate social and environmental

considerations into their meetings and events, to assist them in achieving their own ESG goals Hilton’s Meet with Purpose offerings allow meeting planners and travel managers a set of tools to help their attendees Gather, Nourish and Impact

For Gather, our proprietary LightStay Meeting Calculator helps guests convene

in a more sustainable way, calculating the environmental profile of their stay so they can make informed, low-waste choices and obtain carbon credits to mitigate the carbon footprint of their gatherings

For Nourish, we offer climate-conscious menus featuring locally sourced and sustainably grown meals designed to boost energy and minimize leftovers, while also nourishing others in the local community by donating remaining food, where permitted

For Impact, we offer social impact opportunities important to our customers through team-building experiences that often benefit local charities, ranging from

packing hygiene kits to hosting a skills workshop for local youth, that align with the guests’ own ESG goals

Hilton Effect Foundation

Established in 2019, the Hilton Effect Foundation (HEF) is their primary

international philanthropic arm that seeks to advance their ambitious Travel with Purpose 2030 goals

The Foundation seeks to have a positive impact on the communities Hilton serves, with the mission to create a better world to travel for generations to come HEF awards grants within three focus areas—annual Hilton Effect Grants, disaster response and resiliency, and signature partnerships In 2021, the

Foundation focused on the theme of restoring our communities and our

planet for future generations of travelers

As our communities began to recover from the initial impacts of the COVID-19 pandemic, they focused their 2021 annual Hilton Effect Grants on two key urgent needs:

* Restoring opportunities for underrepresented groups and those who were

disproportionately impacted by the pandemic

* Restoring The Planet,with a focus on programs that combat climate change and drive environmental stewardship

To advance these restoration efforts, the Hilton Effect Foundation distributed nearly $2 million in Hilton Effect Grants, a 50% increase in HEF grant awards from the prior year These funds supported 12 grantees across six continents Since established in 2019, $5M+ in grants awarded to more than 70 NGOs and community-based organizations

Some of HEF activities are:

e One Tree Planted (Canada): Restores forests and promotes habitats contributing to biodiversity Contributions from the Hilton Global Foundation will allow 50,000 trees to be planted across Canada

e Minority Rights Group (Poland & Hungary): Secures rights and hospitality career development opportunities for indigenous, ethnic, religious and linguistic minority peoples around the world

e Punlaan School (Philippines): Offers scholarships and programs for underprivileged young women, focusing on hospitality and culinary arts, while equipping them with job and life skills

“The Hilton Effect Foundation empowers us to support mission- driven

organizations all around the world that advance our Travel with Purpose objectives Supporting inspiring organizations that improve communities enables

us, together, to make a difference.”

Complying to these sustainable concerns, Hilton stated in its code of conduct:

COMMITMENT TO THE ENVIRONMENT

Protecting the environment is a top priority for Hilton Responsible environmental activity is good for both our business and the communities

we serve Hilton is committed to complying with all applicable

environmental laws and regulations wherever we do business We therefore expect Team Members to properly handle, store and dispose of all hazardous materials and wastes, and to comply with all environmental permits that apply to Hilton equipment, operations or facilities

Hilton has also shown great efforts and commitments to environmental factors, presented in its Paving the Way to Net Zero campaign - tackling energy, water and waste usage in its business

Paving the way to net zero

Hilton's "Paving the Way to Net Zero" campaign is an ambitious initiative to become carbon neutral across its corporate operations, property portfolio, and value chain by 2050 The campaign's goals are aligned with the Science Based Targets Initiative (SBTi) and include the following targets:

Reduce greenhouse gas emissions by 34% by 2030 and achieve net zero emissions by 2050

Increase the use of renewable energy by 50% by 2025 and 100% by 2030 Set science-based targets for Scope 1, 2, and 3 greenhouse gas emissions

by the end of 2023

Reduce plastic waste by 50% by 2025 and eliminate it entirely by 2030 Increase the percentage of food and beverage sourced from sustainable sources by 50% by 2025 and 100% by 2030

Achieve 100% renewable and recycled water use in new developments and improve water efficiency by 25% in existing properties by 2030 Reduce overall waste sent to landfill by 50% by 2025 and achieve zero waste to landfill in new developments by 2030

To achieve these goals, Hilton has implemented a series of sustainability initiatives, including:

Investing in renewable energy projects, such as solar and wind farms, and building green technologies like energy-efficient LED lighting, smart building controls, and electric vehicle charging stations

Encouraging guests to reduce their environmental impact with initiatives like providing water bottles, encouraging guests not to change sheets and towels every day, and promoting energy-efficient measures like showerheads with low water flow rates

Partnering with suppliers and stakeholders to promote sustainable practices and reduce the environmental impact of the value chain

Hilton's "Paving the Way to Net Zero" initiative relates to the company's various stakeholder groups:

Customers: Hilton's net-zero commitment aligns with the growing consumer demand for more environmentally conscious choices and can position the company as a leader in sustainability within the hospitality industry This can attract eco-conscious travelers and provide opportunities

to educate guests about the company's sustainability efforts, such as renewable energy initiatives or water conservation efforts

Community members: Hilton's commitment to achieving net zero can have

a direct impact on the communities where its properties are located, as it can lead to reduced emissions and increased investment in renewable

energy infrastructure This can contribute to the preservation of natural resources and the reduction of local air and water pollution

e Employees: Hilton's net-zero commitment can provide opportunities for employee engagement and professional development within the company Employees can participate in sustainability initiatives and learn about the company's progress towards its net-zero target Additionally, net-zero initiatives can create new business opportunities for Hilton, which can benefit its employees through job security

e Suppliers: Hilton's commitment to achieving net zero can provide opportunities for suppliers who specialize in sustainable products and services For example, suppliers of renewable energy solutions or environmentally friendly materials can benefit from increased demand for their products Additionally, Hilton's net-zero target can create new business opportunities for sustainable suppliers, helping to promote economic growth and job creation

e Environment: Hilton's commitment to achieving net zero can have direct benefits for the environment, such as reduced emissions and increased use of renewable energy The company's efforts can contribute to the preservation of natural resources, reduce air and water pollution, and help mitigate the impact of climate change Additionally, Hilton's efforts can create a positive example for other organizations, helping to spur broader changes within the hospitality industry and beyond

Through this campaign, Hilton is committed to addressing the global climate crisis and leading the hospitality industry towards a more sustainable future

Watts

e Project to make use of renewable energy:

+ Install rooftop microgrids at selected Hilton Americas properties + U.S Hilton Hotel are stimulated to make at least a proportion of energy used renewable source through the energy procurement services contract

+ % of EMEA (Europe - Middle East - Africa) hotels, as well as their main offices are powered with 100% certified renewable electricity

e Largest |SO(international standard organization)-certified portfolio in the world

10

+ 2021 marks 10 years of Hilton properties certified for ISO 14001 and ISO 9000, a milestone in their history of commitment to energy efficiency at the hotels They are also certified to ISO 50001 (Energy Management)

Designing greener hotels

Hilton launched its refreshed Energy and Water Efficient Design

Companion Guide This guide complements Hilton’s Brand Standards by offering improvements that can be made during hotel development, refurbishment and maintenance to improve the environmental performance

of the hotel

Hilton set 2030 science-based targets to reduce greenhouse gas

emissions reviewed with the Science Based Targets initiative (SBTi)

- Reduce carbon intensity from Hilton-managed hotels by 61%

- Work with their Franchisees to reduce carbon intensity by 52%

- Encourage suppliers to set goals around reducing their

environmental and social impact

Progress on Hilton energy efficiency:

49% reduction in carbon emissions intensity (managed hotels)*

43% reduction in carbon emissions intensity (all hotels)*

Signed on as the first hospitality company to commit to the U.S

Department of Energy Better Climate Challenge

Continued to enhance LightStay, including the addition of a Meeting Impact Calculator to calculate the environmental footprint of meetings and events Achieved Global Sustainable Tourism Council (GSTC)-Recognized Standard status for LightStay

100% of hotels mapped against climate risks

Water

Hilton embed water stewardship throughout their global operations Hilton made commitments to improving water availability and quality in all of their locations around the world In order to achieve their set goals Hilton works closely with their hotels, their suppliers and their community partners to reduce water consumption

This includes measuring and reducing operational water consumption, identifying opportunities to improve water efficiency, and mitigating impacts in water scarce

11

regions This also includes assessing water-related risks (both water availability and quality) and integrating results into business priorities and decision-making Hilton water conservation goals to 2030:

- Reduce water use in managed operations by 50% (liters/m?, 2008 baseline)

- Activate 20 context-based water projects in communities and watersheds

of top water risk

Progress Hilton made up till now:

- Conserve water in operations by: hotels are required to follow guidelines

on low-flow fixtures; provide continual training to employees, hotels on behavioral changes that can reduce resource consumption, including conserving water

- Maped all hotels against VWWVF’s Water Risk Filter and the VWWRI Aqueduct Water Risk Atlas, and use this mapping to analyze current and future water risks across our portfolio

- Continued investment in community water stewardship efforts through the Hilton Effect Foundation

- Refreshed Energy and Water Efficient Design Companion Guide to guide hotels on design decisions that can improve properties’ energy and water efficiency

Waste

In the environmental impact segment of Hilton's ESG strategy, one of the main priorities

is ‘preventing waste and contributing to a circular economy’ The company has set specific targets, including:

e Reducing waste sent to landfill by 50% by 2025 and achieving zero waste to landfill in new developments by 2030

e Reducing plastic waste by 50% by 2-25 and eliminating it entirely by 2030

e Increasing the percentage of food and beverage sourced from sustainable sources by 50% by 2025 and 100% by 2030

© Increasing the use of renewable energy by 50% by 2025 and 100% by 2030 Increasing the use of recycled water in new developments and improving water efficiency by 25% in existing properties by 2030

To achieve these goals, Hilton has implemented various initiatives in relation to its stakeholders, including:

12

e Customers- Hilton's focus on preventing waste and contributing to a circular economy is aligned with the growing consumer demand for sustainable and environmentally conscious practices Hotel guests can directly benefit from reduced waste, increased recycling, and the use of sustainable materials in rooms and common areas, as well as environmentally friendly practices like water-saving showerheads and energy-efficient lighting

e Community members- Hilton's efforts to prevent waste and contribute to a circular economy benefit local communities by reducing the impact of the company's operations on the environment This includes reduced waste sent to landfill, increased recycling, and the use of sustainable materials in property renovations and new developments

e Employees - Hilton's commitment to environmental sustainability creates opportunities for its employees to participate in and contribute to sustainability- focused initiatives Employees can be involved in waste reduction efforts, recycling programs, and other sustainability initiatives, and the company's focus

on environmentally sustainable practices can provide opportunities for employee engagement and professional development

e Suppliers - Hilton's focus on preventing waste and contributing to a circular economy can benefit its suppliers by promoting the use of sustainable materials and promoting the reuse and recycling of products This can lead to new business opportunities and an increased demand for sustainable products, supporting suppliers’ sustainability goals and contributing to the overall sustainability of the hospitality industry

e Environment - Hilton's efforts to prevent waste and contribute to a circular economy directly benefit the environment by reducing the impact of its operations

on natural resources like water, energy, and land The company's commitment to sustainable practices can lead to the preservation of natural resources and the reduction of waste sent to landfill, promoting a healthier and more sustainable environment

Through these initiatives, Hilton is committed to reducing its environmental impact and contributing to a circular economy, where waste is reduced and reused instead of being sent to landfill The company is determined to achieve its ambitious targets and lead the way in the hospitality industry towards a more sustainable future

3 Social Impact

13