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Hilton Hotel Csr And Three Myths

1332 words - 6 pages

GIORGI MARGIANI

INTRODUCTION
There are millions of businesses and millions of companies that try to be successful in their own business fields. Competition is high and therefore, companies try to find new ways of value offering as they try to increase customer value and therefore, increase their brand image, gain customer loyalty and eventually and most importantly maximize their profits. In today’s world, many companies attempt to be CSR orientated, or at least pretend to be one. This is because; rate of corporate social responsibility often affects the way consumers perceive any given company. However, some companies still try to get away with their social responsibilities, as those ...view middle of the document...

In such conditions Hilton management decided to employ the president and senior vise president of its main competitor Starwood’s luxury brands group. The case engages theft of more than 100,000 electronic and hard copy files holding privet and delicate information about Starwood. For example, the info included areas of the business such as: strategic development plans, property improvement plans, market researches identifying gaps in the market, and the whole business plan and structure for developing a new luxury hotel brand. Moreover, the case does not end with the theft of the vital information, as stolen files were used to really form a new brand named “Denizel”. Furthermore, Hilton employed eight more high-ranking Starwood’s employees and proposed to them even better places than they had in Starwood. In other words, Hilton used unfair competition ways against its competitor which were not only unfair but illegal which in turn resulted in damages for not only Starwood, as the information was stolen from them and used against them, but also damaged Hilton in many ways as appropriate actions were taken by Starwood and then by the court. Eventually, Hilton and Starwood have settled the lawsuit and Hilton agreed on paying $75 million, canceling the ongoing project “Denizel” and also requiring Hilton not introducing any new hotel for 2 years.
Second case involves workers suffering physical injuries as of unacceptable workloads imposed on them and crisis associated with green wash in Bahamas in.

Myth #1: the market can deliver both short-term financial returns and long-term social benefits

This myth is backed in the report with very interesting argument that, market will automatically balance its self as individuals will invest, consume and build companies in both ethical and profitable ways as social responsibility effects all individuals. The above-mentioned myth can be viewed from two different angles.
First, why in a first case Hilton leadership chose to use unfair competition by hiring employees from the head to head competitor and using their private information to build a new brand. The reason lies at obvious fact, which is short-term profit maximization. In other words, Hilton decided to close yeas on Corporate Social Responsibility in order to gain competitive advantage over its rival and therefore receive quick profits. Moreover, Hilton allowing itself to make such compromise lead to even worse actions from them and eventually to the lawsuit where Hilton was obliged to pay appropriate fine and banned from expansion for 2 years. Which in fact, backs the argument that market will automatically balance itself and urge companies to make profits and be socially responsible as Hilton really started to better their public image after the settlement with Starwood corporation as it started doing some CSR activities, such as charitable work. However, many companies in many cases do not want to be ethical and socially responsible as...

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