Globalization has led to widespread changes in the operations of businesses and has expanded the scope and nature of business responsibility. One of the aspects of business operations that have become more crucial in running businesses in the global environment is ethical conduct. Businesses in different jurisdictions have realized the benefits of ethical conduct and corporate social responsibility both for strategic purposes and bottom line goals. The paper provides an ethical evaluation of Hilton Worldwide Holdings popularly known as Hilton. The company was formerly known as Hilton Hotels Corporation and has been in operation since 1919. The company was founded by Conrad Hilton in Cisco, Texas and is currently headed by Christopher Nassetta. Blomberg describes the company as a hospitality company that “owns leases, manages, develops, and franchises hotels and resorts.” The company seeks to provide accommodation services for guests in different destinations. The company has been synonymous with excellent service delivery with a wide range of food and accommodation related services including spa and entertainment for the guests. In 2017, the company was ranked 241 on the Fortune 500 list.
Hilton Worldwide Holdings has its headquarters in Tysons Corner, Virginia, United States and operates in the Hotels, Casinos, and Resorts industry. Hilton Worldwide Holdings has 169,000 employees and has operations on a global scale. The company has 4.875 franchised hotel and resort properties with a total of 796,440 rooms in 104 countries (Reuters). The company’s portfolio includes Waldorf Astoria Hotels & Resorts, Hilton Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Holton, Tru by Hilton, Hilton Garden Inn, Curio-A Collection, DoubleTree by Hilton, Home Suites and Home2 Suites by Hilton (Reuters). The company’s portfolio contains hotels in cities including New York, Chicago, Tokyo, Sao Paolo, and London. In 2017, Hilton Worldwide Holdings earned $11,663 million in revenues, a 3% increase from 2016, with profits of $348, a 75.2% decline (Fortune 500). The company has assets worth $26,211 million, total stockholder Equity of $5,899 million, and a market value of $19,276 million as at March 31, 2017 (Fortune 500).
The management of the company includes the CEO, Christopher Nassetta, who has been at the helm since the December 2007 (Bloomberg). Christopher Nassetta earned a total of $18.8 million including $1,242.308 salary, $2,604,375 as bonus, $1,718,737 as stock options, $13,156,151 awarded as stock, and $69,127 considered as other compensation (Salary.com). The Executive Vice President and Chief Financial Officer, Kevin Jacobs, received a total of $8.1 million in 2017 comprising of salary ($791,808), bonus ($942,080), stock options ($599,999), stock ($5,799,912), and other compensation ($10,800) (Salary.com).
The following rating is used as a basis for the determination of Hilton Worldwide Holdings.
0 Criminal organization; no ethical standards
1 Poor ethical standards; numerous moral infractions and failures
2 Average ethical standards: par for most businesses
3 Good ethical standards, with positive benefits to society
4 Excellent moral standards; a role model for other businesses
Rating (0 to 4): 4
Several reasons for the basis for the conclusion of the rating of four in ethical conduct depicting the company’s excellent moral standards and a role model for other businesses. The company has a widely comprehensive code of business conduct and ethics that provides a basis for high ethical conduct. The code covers employees, directors, subsidiaries, management, officers, members of management, and franchises ensuring the business perform within set ethical guidelines. The company emphasizes a strong adherence to the code of business conduct and other legal rules, laws, and regulations by the government for everyone at the company including associates (Hilton Worldwide Holdings 6). The code of ethics requires the company employees and associates to “uphold the highest standards of ethical conduct in every action you take on Hilton’s behalf” (Hilton Worldwide Holdings 6). The company is committed to the payment of taxes and respect to the laws and regulations in the jurisdictions it operates, which has allowed the company to thrive and avoid legal lawsuits. The company is also committed to providing an excellent working environment to the employees and settings standards equal or above to those determined in host nations. Providing employees with an excellent working environment is evidenced by the 26th position on the Best places to work for in 2017 for Hilton up 30 places from 2016 (Travel Professional News). The companies in the top 100 best places to work for have exceptional workplace cultures. Employees at Hilton are also treated with respect and dignity, and they are included in decision-making improving productivity and motivation and making the company one of the best choice destinations for job seekers. Hilton understands the role employees play in the hospitality industry and seeks to always improve the treatment of its employees. The company refers to employees as Team members highlighting the crucial role the company believes employees are crucial and provides industry-leading compensation, annual appreciation programs, travel discounts and perks, provision of learning and development opportunities, and monetary and time resources for social and environmental empowerment (Travel Professional News).
Hilton Worldwide Holdings is also very committed to diversity and inclusion in its operations. The company partners with individuals from different backgrounds and employ diverse employees among its workforce. According to Dubrin (449), the company has a strong commitment to building cultural diversity, which has allowed the company to make inroads into hard to reach markets including Latino and African-American populations. The commitment to diversity and inclusion is commendable and should be followed by other companies. The company’s commitment to diversity is evident in its inclusion on the Best places to work for list relating to LGBT equality, hiring of 10,000 veterans, spouses, and dependence in three years, and a commitment to hire more (20,000 by 2020), and Fortune Magazine named the company the best place to work for women (Hilton Worldwide Holdings).
Contribution to charity is another area that Hilton has excelled in its ethical conduct and performance. Hilton has shown a strong commitment to charity and the provision of platforms for the development and help of disadvantaged members of the community. From its founders Conrad Hilton and other notable owners who have made immense contribution to charity including Billy Conrad's donation of 97% of his fortune to charity, the company also undertakes charity activities (Rosenblatt and Nichols). Hilton Worldwide Holdings has partnered with Good360 to donate reusable goods to charity organizations with the Lightstay, the company’s sustainability performance management platform providing an excellent platform for CSR. Lightstay has allowed the company to efficiently manage donations and allow for effective tracking and the partnership offered a clear path to needy individuals and communities. Hilton has also partnered with China Foundation for Poverty Alleviation (CFPA) to provide leadership and training to achieve social change through it’s the Charity Future program (Business Insider). The focus of the partnership includes attention to societal issues such as poverty alleviation, offering services to disadvantaged community members, environmental protection, and advocacy for community causes.
Respect to the natural environment and conservation efforts at Hilton also provide a basis for the excellent rating for the company. The company undertakes measures that seek to protect the environment and shows its commitment to environmentally friendly practices. Hilton recycles According to Lozanova, “Hilton saved an estimated $751 million from water, waste, and energy-efficiency initiatives, which have resulted in the reduction of its carbon emissions by 23%.” Waste reduction efforts implemented at Hilton include mattress recycling, surplus food and soap donation and composting food waste (Lozanova). Hilton has “recycled 8,100 mattresses and box spring pieces, totaling 432,000 pounds of waste, over the last several months” highlighting the company’s commitment to ethical business conduct through environment protection (Lozanova). The company has also partnered with Clean the World to recycle over a million pounds of soap. The company’s environmental sustainability efforts made Hilton Worldwide Holdings earn ISO 9001 and 14001 certifications for quality and environmental management (Hilton Worldwide Holdings). The company was also recognized as one of the green power purchases by Green Power Partnership, a further testament to the company’s commitment to environmental sustainability.
The ethical conduct and initiatives at Hilton achieve several goals including costs cutting, improve employee retention, and minimize wastes improving environmental protection. The ethical practices at Hilton have ensured the company is a dependable, reputable and trustworthy brand globally. A commitment to environmental protection and a great corporate culture makes the Hilton brand stand out from the competition.
Works Cited
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Hilton Worldwide Holdings. Hilton Worldwide partners with Good360 to donate reusable goods to charitable organizations, November 22, 2011. http://www.hiltonworldwideglobalmediacenter.com/index.cfm/news/hilton-worldwide- partners-with-good360-to-donate-reusable-goods-to-charitable-organizations
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