Case7_Kimpton_Hotels - Case 7 Kimpton Hotels Earthcare...

Case 7: Kimpton Hotels’ Earthcare Program
TEACHING NOTE FOR:
KIMPTON HOTELS’ EARTHCARE PROGRAM 1
This case illustrates the following themes and concepts discussed in the chapters listed:
Theme/Concept Chapter
Corporation in Society 1
Corporate Social Responsibility/Citizenship 7
Natural Environment/Sustainability 11
Consumers 15
Employees 16
Community/Corporate Philanthropy 18
Case Synopsis:
This case focuses on an environmental sustainability initiative at a boutique hotel chain,
Kimpton Hotels. In 2005, Kimpton Hotels undertook a branding campaign for its chain of
unique properties. One aspect of the campaign was the rollout to all hotels of a major
environmental initiative called the EarthCare Program. Elements included the introduction of
energy-efficient lighting, low-flow/high pressure showerheads and sink aerators, and low-
flow toilets; linen and towel reuse; the use of non-toxic, non-allergenic, all-natural cleaning
products; the use of low-VOC paints; as well as other initiatives. Kimpton management
established two basic ground rules. New initiatives could not cost more than what was
already budgeted for operations and capital improvements, and they could not adversely
affect customer perceptions or satisfaction. This case allows students to explore whether or
not there is a business case for the EarthCare Program. It also asks students to consider how
the company should best implement and institutionalize its sustainability initiatives, and how
their success should be measured and reported.
TEACHING TIP: WHERE TO USE THE CASE IN THE COURSE
Most instructors will wish to use this case in conjunction with the discussion of voluntary
environmental initiatives by business and managing environmental issues . It may also be
used to illustrate the costs and benefits of corporate social responsibility and social and
environmental performance auditing .
Discussion Questions:
1. What are the benefits of Kimpton’s environmental sustainability initiatives? What
are their costs?
1
This note includes comments by case authors Murray Silverman and Tom Thomas, San Francisco State
University, based on their experience teaching the case. We gratefully acknowledge their assistance.
Case 7-1

Case 7: Kimpton Hotels’ Earthcare Program
2. How would you justify the EarthCare Program to Kimpton’s board of directors and
stockholders? That is, what is the business case for the program?
3. What challenges face the EarthCare Program and how might Kimpton overcome
them?
4. What further steps should Kimpton take to institutionalize its environmental
commitments?
5. How would you measure the success of the EarthCare Program, and how should it
be reported to stakeholders?
Discussion Questions and Answers:
1. What are the benefits of Kimpton’s environmental sustainability initiatives? What
are their costs?