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?
2.How would you justify the EarthCare Program to Kimpton’s board of directors andstockholders? That is, what is the business case for the program?
