OTHM Diploma Level 7 Unit 4

Ethics, Corporate Social Responsibilities and Risk Management Strategy of ACCOR Hotel Group

OTHM Membership: S8072

Table of Contents
Executive Summary...................................................................................................3 1. ACCOR hotel group: at a glance.....................................................................4-5 2. Ethics perspective ACCOR hotel group 2.1. Key ethical consideration of ACCOR as management perspective ......................................................................................................................5-9 2.2. Key ethical consideration of ACCOR as marketing perspective ....................................................................................................................9 3. CSR perspective ACCOR hotel group.........................................................10-16 3.1. CSR the concept.....................................................................................10-11 Triple bottom line: Economic/financial......................................................................................11 Social............................................................................................................12 Environmental..............................................................................................12 4. Risk management as per the aspect of ACCOR and the recommendation of mitigation the risk.........................................................................................17-19 5. Conclusion..........................................................................................................20 Bibliography........................................................................................................21-22

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Executive Summary:
Ethical aspect of business and the social responsibilities toward society where business operate need to be considers as a major task. By keeping ethical consideration, corporate social responsibilities and possible risk and the ways of preventing those kind risk with proper management is very vital for business aspects. Thus in this work by selecting the ACCOR hotel group from the tourism and hospitality industry, it demonstrate the actual company base ethical practice with all ACCOR brand hotel group considering both perspective of management and marketing point of view. Try to illustrate the major key ethical consideration within the different hotel group in different geographic location where it is operating it business. Also in this work it explained the ethical issues can be occur in the field of ethical marketing perspective. For that reason it tries to find out the recent actual information regarding the ACCOR hotel group. Respectively the Social responsibilities activities in depth and the creative approach to CSR as per the ACCOR hotel group perspective have explained this work. The contribution of corporate social responsibilities operationally and strategically to the triple bottom line which is in financial or economic, environmental and social responsibilities detailed in this work according to the sector and the advantages of the CSR. In other hand while doing business the risk cannot be separated from the operation. ACCOR does follow the principal of higher the risk higher the gain which every business wants at the age of internationalization. The business growth brings a lot of opportunities and threats which is a risk to business. So in this work it is clearly trying identify the risk and evaluate them according to the risk type and have given the appropriate way of mitigation to that risk. It states the risk in proper way ways of overcome risk.

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1. Accor Hotel Group : at a glance

Accor hotel group has a portfolio of strong brands name in the industry of travel, tourism and hospitality sector. For more than forty years, Accor has constantly reinvented its business to keep pace with the world around it, with the goal of providing innovative, high quality products to hotel customers and partners. Accor main aims to target the every segmentation of market from the luxury to economics class on all over the five continents in the world. Accor hotel group or brands promises to meet the needs of business and leisure travellers looking for comforts, accommodation, attentive staff and a full range of quality services. Accor is the worlds leading hotel operator and market leader over the Europe, is se rve in 92 countries with more than 4,400 hotels and 530,000 rooms. Also with more than 180,000 employees working Accor brand hotels world widely. By considering to the need of travel customer Accor has got different categories or with several brand name which provides the differentiate quality of service according to their brands name. To make an affordable and convenient to the each customer throughout the world, Accor brand hotel splits its brand according to the International brands and regional brands. Accor brands includes Sofitel Luxury Hotel, Sofetel Legend, So Sfitel, Pullman Hotel and Resorts, MGallery, Novotel Hotel, Suite Novotel, Mercure, Adagio aparthotel, Ibis Hotel, Ibis Styles Hotel, Ibis Budget Hotel, Adagio access aparthotel, Grand Mercure ASIA, The Sebel ASIA-PACIFIC and Hotel F1 France. To make it more specific the following diagrams illustrate the Accor Brands in more details, which is as follows:

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(www.accor.com)

2. Ethics Perspective ACCOR Hotel Group

2.1

Key ethical consideration of ACCOR as management Perspective:

Basically Ethic is regarding the values what a particular company hold in business aspects. Ethic and code of conduct has to be maintained well in company. In the recent year competition level is very high in market place. To be a well establish company in business, company need to take ethical practice as a major task. Although it may argued that these instruments have not been established from a theoretical foundation, they have provided a significant degree of industry guidance. Codes of ethics are said to be different from codes of conduct and codes of practices, based on the belief that the former are more philosophical and valuebased, while the latter are more applicable and specific to actual practice in the local
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situation. (Scace et al., 1992). By allowing business ethics and code of conduct of it makes a relationship between employers and employees very communicative and effective. It gives a boundary to compile the rules and regulation of company according the national laws. So in this work The ACCOR brand hotel represents the ethical practice in hospitality industry in proper framework. In general ACCOR family believe that corporate compliance with and respect for the laws of the jurisdictions in which they conduct operations are an enabler of business development and sustainable growth. These laws within business ethics promote the fair, stimulating, transparent approach to management and a constant focus on the safety and integrity of the personnel. As the main ethical slogan presents by ACCOR is a that ACCOR operations in all host countries must be guided by that which is in the best interest of people who have put their trust on ACCOR services and in its qualities as an employer. This strong ethical commitment by ACCOR is serves as the foundation of ACCOR policy. The purpose of the ACCOR management ethics as a brand is transparently and powerfully remind to the universe of the fact. ACCOR hotel core values are: 1. 2. 3. 4. Innovation: the trademark The spirit of conquest: growth engine Performance: the key way to continue success Respect: the basis of relationships: ACCOR believes the dignity of people and diversity of respect throughout the world. 5. Trust: the foundation of management. (www.accor.com) As the ethical practice for the hospitality business it is very vital list that ethical practices needed by the ACCOR group. The mentioned below aspect are the major ethical consideration for a good hospitality business, which need to apply in their business practices: i) ii) iii) iv) The foundations of ACCOR integrity policy Respecting business ethics Protecting company assets Ensuring the safety dignity and interest of people

The above points are considerably very essential for each business point of view. As all the mentioned points declare how ACCOR brand hotel group applying the ethical management concept with different categories as per each points strongly represent the important being in business. So the details of each aspect are as follow:

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i)

The foundations of ACCOR integrity policy: The fundamental regarding this point refer to the all planning and procedure for globalization of business. Internationalization is very important aspect at the age of globalization. Thus the all regulation and chances of freedom and strength is very important. As to tackle the further useable situation, the controlling regulation and laws plays a major role for any kind of business. As ACCOR applies following major actions in operations:

# Always referring to the legal framework that applies to ACCOR actions. # Complying with regulatory standards. # Integrating ACCOR compliance into a broader ethical agenda. ii) Respecting business ethics: In general a good relationship is built up on respect and trust, though it applies in both personal life and business point of view which is very crucial in success of business. The excellent cooperation in not only essential with the business clients, its more with the people who strongly plays a role in a success of business. Basically as a whole hospitality sector the aspects of the ethics are respect, excellence, honesty, fairness, kindness, sincerity, generosity, loyalty, enthusiasm and eagerness, tenacity, endurance, integrity and trustworthiness which are always comes into mind and words if someone explain about the ethical code of conduct of business. So it is very important to understand the business ethics.

Similarly ACCOR considered its business ethics as a major department which is monitoring very importantly in operations. Certain laws governing business practices are specifically designed to protect consumers, private citizens and other economic players. Prohibit anti-competitive practices of all forms. Impose criminal and civil sanctions to bribery of public officials whether national or foreign. Impose criminal and civil sanctions to bribery of private individuals and enable the defrauded company to seek damages. Prohibit not only money laundering but also encourage or require economic players to be very attentive to suspicious funds flows.

As the course title is more about ethic, in this phase the more break down of business ethics is very important to discuss as ACCOR strongly allows ethical code of conduct practice in business. # Competition laws: Anti- competitive practices restrict competition in the market in two ways:

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When one or more competitors decide to fix prices or divide market among themselves. When a company uses its dominant position to create obstacles to free, active competition.

At European level The treaty of Rome applies rules to companies to ensure that competition in the common market is not distorted. Measures to combat anti- competitive practices and promote international cooperation are constantly strengthened.

Obviously required investigation, integrations and searches may be conducted in a country at the request of foreign or transactional authorities. # Bribery in the private sector: There are two type of bribery involving private personal: Active bribery consists of promising or giving a person an inducement to act in violation of his personal obligation. Passive bribery describes a case where a person has solicited or accepted an inducement to act or not to act as the case may be in violation of his personal obligations.

In this area ACCOR has developed policies applicable to all employees about gifts that can or cannot be accepted. # Money laundering and complicity in money laundering: Money laundering is a crime that consists of holding or using funds that come from illegal activities such as drug trafficking or bribery. The action been taken to prevent this case of money laundering are led by: The United Nations convection against transactional organized crime which creates an international framework for combating money laundering. - The financial action task force, an intergovernmental body that promotes international cooperation, to which France belongs. All member states are required to set up a financial information department to support the fight against money laundering. - Financial organizations which are subject to strict requirements with regard to the identification and reporting of funds flows that correspond to money laundering operations. iii) Protecting company assets: A number of laws covering procedures have been specifically adopted to protect who put their trust in the company, in particular shareholders and employees, whom certain concerns and interests mainly focused as a important matters.

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iv)

Ensuring the safety dignity and interest of people: It is about the laws like many laws have been adopted to protect people in contact with the company including customers, employees, suppliers and other who have only indirect contact.

2.2 Key ethical consideration of ACCOR as marketing perspectives:

Basically all the large company have their own written code of ethic to guide or help for the business or marketing activities of the business. Ethical marketing is a process through which companies generate customer interest in product or services, build strong customer interest and relationship. It also creates value for all stakeholders by incorporating socially and environmental consideration in products and promotions. All aspects of marketing are considered from sales techniques to business communication and business development. ACCOR is operating their business globally with the different brand portfolio. When the business terms comes globally obviously the marketing and marketing mix activities involve on it in order to deliver excellent services to fulfil the customer demand. ACCOR believes in implementing the ethical marketing concept and communication through their strategies. Communication, analytical skills and creativity are required to promote the group, its brands and its hotels. Ethical concept is marketing perspective is very essentials because the marketing is a major weapon to reach up to customer and try to sale the product and service. Mostly in development countries the ethical part of the business idea or marketing ethic has to be concerned as a major task. While doing marketing about any short of product of a particular company, it should not be effect to the emotion of people feeling and personal life, otherwise it will be unethical. As we know ACCOR is operating very successfully in all over the Europe with different hotel brand name. While thinking of expanding business or product through a particular hotel, then ACCOR has to think the countries code of conduct and ethical marketing scenario. The purchasing, marketing and sales functions are monetary functions and any time money is involved and there will be high opportunities for unethical behaviour. Only as a company ACCOR seems a very strong and considered where the times comes for marketing activities because the particular companies marketing activities should not be effect to the ethical perspective of the marketing. Subliminal advertisement is one of the most highlighted and ethical issues in marketing and advertising are relating subliminal advertisements. By putting subliminal messages in an advertisement is very misleading action which causes unethical behaviour.

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3. Corporate Social Responsibilities Perspective ACCOR Hotel Group 3.1 CSR: The concept:
The concept of corporate social responsibilities is very broad and every company has to follow up or update their responsiveness towards community. By taking concerns of the clients view about the sustainable development, it compile to every company with the necessary moves regarding corporate social responsibilities. In tourism and hospitality industry, every business cannot be escape without thinking their responsibilities towards community and environment where they grow their business ideas. ACCOR has got own planning and procedure regarding the concept of CSR. CSR gives an in-depth and creative approach to tackle with the age of competitiveness because as we all know that travellers are very well known about the going concerns regarding ecotourism, environmental concerns. So by following the suitable CSR concept wish demonstrate that in which way business can contribute their responsibilities in operationally and strategically way. Such kind of operation and strategic decision gives strength to the triple bottom line of business aspect which indicates (financial, environmental and social sustainability). The ACCOR Group believes that their business should contribute to the social and economic growth of the countries, regions and cities where they work, and enhance the value of their wealth, heritage and culture. In 2006 the Accor started with the social and environmental project known as the 'Earth Guest Program' to prevent the environment form the environment from the major health hazards that threaten the world. (Matten; D. et, al 2008) While doing a business strategy the main four part which definition explains that business should focus on four strategic areas, which are economic, legal, ethical and philanthropic approach. To be ethically responsible, the business must do more than what the law dictates. The last philanthropic activities provide the business a way to give back to the society that supports them for the running a business in smooth way. (Carroll Archie. B, 1979). So the corporate social responsibility means:

Responding positively to emerging societal priorities and expectations. A willingness to act ahead of regulatory confrontation Conducting business in an ethical way and in the interest of the wider community. Balancing shareholder interests against the interests of the wider community

The CSR development process is not an easy task as it takes long time to formulate it. Because it need to strongly cover the territory of broaden society which is not only
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the domestically but internationally. CSR is a trend which is focused on the change from short-term tasks to long-term tasks. It contributes to tenable and acceptable growth and generally helps to improve the overall situation of society. CSR integrates the attitudes practices and procedures into the company strategy at the highest level of management. It request a change from the profit of the business only which level to the wider levels: People, Planet and Profit. The triple-bottom-line means that the company is focused on economic growth, environmental and social aspects of its activities. As is universal truth that the business is a part of society where they operates and society influence to the business. So the general fundamental principle of CSR is also very important to understand before developing a CSR strategy for business. CSR is based on three fundamental principles. They are economic, social and environmental. Each part of CSR contains a lot of different activities depending on the type of enterprise and the requirements of stakeholders. Economic area: Transparent enterprise is expected from the company. A positive relationship with investors, customers suppliers and other business partners is also concerns. The impacts of the company on the economy at local, national and global levels are monitored. The important of stakeholders and their interest and concerns value a most to the business. So the SCR activities in economic area are also depends on. Social area: In the social area, behavior is focused on the attitude to employees and on supporting the local community. The company influences the standard of living, health, safety, education and cultural development of citizens. Environmental area: The company is aware of its impact on the living and inanimate nature in the environment. This includes the ecosystem, land, air and water. There is an assumption that the company will protect nature and natural resources. Thus the CSR concept has to be clearly defined and apply in practical operation of a business. So the main features of the CSR are as follows: Feature of CSR: Triple-bottom-line: economic, social and environmental. Voluntary: all activities are done voluntarily. Stakeholder dialogue: integration of all participants. Long term period: all activities are done over a long term period. Credibility: increasing company credibility.

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Advantages of CSR: Innovation: by bringing the new concept and idea which embrace the benefit for company and society in both ways. Cost saving: by the concept of recycling and protecting environment by consuming natural resources in good manner rather than artificial will helps to save the cost for business. Brand differentiation: this is the most advantage way for business to create the brand loyalty in a competitive environment. As customers are more concern about the green planet and saving the environment. If a business applies the ways of environment protection through different schemes then obviously it helps to create a brand image. Long-term thinking Customer involvement Employee involvement (www.forbes.com) So after the clear concept of corporate social responsibility of a company, the ACCOR hotel also applies the concept of CSR in practical business environment in the following way: As the ACCOR group enters a new phase of sustained expansion, it is reaffirming its approach to responsible development, which generates value shared by everyone . The new PLANET 21 program accelerates and intensifies Accors sustainable development commitment, transforming it into a decisive competitive advantage for the group, its brands and its partners. The program is structured around 21 commitments backed by quantifiable objectives that all hotels are expected to meet by 2015. With PLANET 21, ACCOR is making sustainable hospitality the focus of its strategic vision as well as its development and innovation process. ACCOR has made with the PLANET 21 commitment in a favour of sustainable development through its various brand hotel groups. Taking into the consideration of responsibilities towards society, community and environment the ACCOR hotel group begin its CSR concept of PLANET 21 program been launched in a year of 2012, 21 of April which has been doing very well in the age of competitive advantages and following an excellent practice across the globe in business point. The PLANET 21 program is basically for the program for the sustainable development. The name PLANET 21 refers to the 21 agenda the action plan been adopted by 173 Heads of State at the 1992 Earth Summit in Rio de Janeiro. It also focus to the urgent need to put efforts in the 21st century to change the production and consumption patterns with the goal of protecting the earth planet, its people and the environment. The 21 commitment of ACCOR hotel group has categories into the main seven pillars according to the major sector where it covers the whole sustainable
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development. In ACCOR PLANET 21 program it has clearly mentioned about the responsible area of hospitality industry mostly the hotel group of ACCOR where it covers the society, people, employee, environment, health and many more. The following seven pillars, 21 commitment of ACCOR group makes clear the concept of CSR:

PLANET 21 Program: Sustainable development:

Health 1. Ensure healthy interiors 2. Promote responsible eating 3. Prevent diseases Nature 4. Reduce the water use 5. Expand water recycling 6. Protect biodiversity Carbon 7. Reduce the energy use 8. Reduce carbon dioxide emissions 9. Increase the use of renewal energy Innovation 10. Encourage Eco-design 11. Promote sustainable building 12. Introduce sustainable offers and technologies Local 13. Protect children from abuse 14. Support responsible purchasing practise 15. Protect Eco-system Employment 16. Support employee growth and skills 17. Make diversity an asset 18. Improve quality of work life Dialogue 19. Conduct the business openly and transparently 20. Engage the franchised and managed hotels 21. Share the commitment with suppliers (www.accor.com)

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Health: Providing guest and its employees the healthy options in terms of food, and interior building is very important because the structure of architecture building also effects to the customer in terms of living standard. To encourage guest to be healthier and to prevent diseases ACCOR is giving healthy choose option in their hotels menu with different organic food and product. By giving different offers and schemes to join the fitness program within the hotel is also encouraging people to be healthier. Nature: By introducing the ways and system of protecting the environment by reducing water consumption and recycling waste is a major concept to save the natural resources. The main theme of the ACCOR is to protect the environment and its natural beauty. Recently the environment is changing rapidly which compile to the global warming and natural disaster very frequently. So the businesses like hospitality industry they have to be sure to protect nature while doing business on the environment. The hospitality business is also produce in major number of wastages which will dump to the near site of ocean so if the business protect the biodiversity and use some systematic way of consumption then it will help to protect the nature. Carbon: Use the effective ways of reducing carbon footprint and emission. The main idea on it is to execute energy saving measures and make use of renewable energy sources. To reduce the emission of carbon the environmental friendly equipments and tools can be implement into the business. By using the environmental friendly technology will help to consume the electricity and gas. Innovation: Innovation is major way to sustain the business for the longer period. The development of new business model encouraging to established the eco-design and sustainable building. By the advance environmental friendly technology and innovation in the guest rooms reducing the cost for business and beside of it helping to encourage guest as well to be eco-friendly. Local: Giving priority to local food, suppliers and employee is also a part of responsibilities while doing business in locally. By this way it helps to the local people to get employment. The local level supplier are getting market to sale their product locally and endangered sea animals are being protecting by not using them in hotel restaurant. So for this reason ACCOR is strongly believes in doing business locally by giving priority to local things. Employment:
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Responsibility towards the internal employees satisfaction is also the major part to think about while doing business. The growth, promotion, supporting them, personal development and good working condition are the major responsibilities to fulfil. Employees play a major role while handling or delivering service to customer so the different training and motivation is necessary. Dialogue: Business has to involve in sustainable development program with different partners whose interest and concerns are related to the development of business CSR. The mutual understanding and helping hand together helps to achieve the goal in future as a whole. To make success of the PLANET 21 program within the 7 pillar ACCOR is doing different activities for the sustainable development. The activities include: Earth Guest: The ACCORs group environmental footprint: The ACCOR hotel brand has started working on sustainable development for over 15 years. It opened the environment office in 1994 and it got high objectives in order to meet the standard of sustainable development where it operates. The program is called the Earth Guest and it focus basically in two centres: People: local development, balance food and protection against abuses. The environment: energy, water, waste and biodiversity.

The program working methods allowed ACCOR hotels to come with advance way in terms of achieving objectives. Activities and achievement include: Water consumption per rented room dropped 12% from 2006 to 2010. Energy consumption per available room dropped 5.5% over the year period. Currently over the Europe 85% of hotels have water flow regulators and 82% have compact fluorescent lamps. 90% of the ACCOR hotels use energy saving bulbs for the 24 hour lighting. 94% of the hotels monitor and analyse their energy consumption every month. 169 of the ACCOR hotels use renewable energy sources and 134 of those hotels have thermal plant. ACCOR proudly announces the success of the PLANET 21 program, because of the achievement in last one year it doing lots of additional activities to sustain the environment and ecosystem.

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In health sector of the program 68% of the ACCOR hotels offer eco labelled product in to the hotels environment which is like cleaning products, decoration of hotel or floor covering. To encourage guest to be healthy and fitness 62% of the hotels restaurants promote balanced dishes in the menu items. Also to keep staff up to date about the handling health and safety procedure into the hotel ACCOR 77% hotels are giving refreshing training to their staff members. To preserve the natural resources the 88% of the ACCOR hotels fit the hotels showers faucets with flow regulators. By keeping in mind to the diversity the 64% of the hotels recycle waste using inhouse recycling methods and technologies. In over the 90 countries among all hotels 1340 ACCOR brand hotels are taking part in the Plant for the Planet reforestation project to protect the environment. (www.accorhotel.com)

Plant for the Planet:

The world is being smaller day by day through the globalisation and usage of technologies. To be socialise and taking social responsibilities towards the society very business has to show the responsibilities to other part of world too. The Plant for the Planet is basically focused on consumption of environmental resources. ACCOR supports the planting of 19,200 cherry trees in memory of the 19,200 victims of the Japan Tsunami. ACCOR has taken part in the Jakko no-mori project in 24 October 2012 to contribute its responsibilities toward the international societies. Also close to the 1200 hotels involved and 1.7 million trees financed. At the projects mid time point, ACCOR has exceeded its forecasts. ACCOR continually involve against the forestation of the plant and take an action against the reforestation of planet. Forest is the major resources to balance the planet.

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4. Evaluation of the risk as per the aspect of ACCOR hotel group and necessarily recommendations by using the theory and the way of mitigate the risk for ACCOR hotel Group:
While doing business in market place or in a global aspect of business, the risk is always there. Risk can be threat for business or in other term risk can be taken as opportunities, and then business will look for the ways to betterment and ways of improvement to minimize the risk. Hence the study of business risk management is very essential for business in the tourism and hospitality sector as well. Risk applies to any management decision that could have a good or bad outcome. It follows most management project and decision contains risk. Most of risks are not catastrophic but some can cause loss of life and great damage. Better risk management could have forestalled some of these crises. Risk is also future event that result from action taken now. That is why managers should considered different option for any problem and evaluates the consequences (Kit Sadgrove 2005). It is easy to focus on obvious risk like normal work place accident and incidents but it is difficult to understand the uncertain risk like natural disaster and ongoing emergency situation. Similarly like other sector of business the tourism and hospitality sector also cannot be escape with the uncertain risk like mentioned above. For that reason the safety and advance planning to cover those kind risk is very essential at the level of decision making of business. ACCOR hotel group is operating its business in all over the Europe, obviously the more business expand in international market the risk is higher too. As the concept says higher the risk higher the gain so risk is positive things too for business it gives learning opportunities for business to tackle with situation. Risk in business can be in any department. The prior decision and appropriate strategy to minimize the risk for future is important in an aspect of risk management. General aspect of risk in tourism and hospitality business implies to the ACCOR internal risk as well. So the following risk can be evaluate as a major risk and necessarily recommendations can be given to mitigate the risk for ACCOR hotel group:

1. Political risk: Political risk in aspect of that the ACCOR operating its business in over the Europe and because of European Union decision and strategy of doing business internationally makes a differences in the decision making level of the ACCOR hotel group because the responsiveness of the society and nation rules and regulation ACCOR has to make decision as the country political situation and their legislation.

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Mitigate: By making the strategy and vision as per the recent political situation of country will help to minimize risk of political aspect. 2. Risk of property damage: In order to protect property, assets, balance sheet, or the physical outlet of each of ACCOR brand hotel building it has to be secure or insured by the company who can look after at the time of any particular damage. In a sense it is important to prevent the risk of property damage and losses of business because of unsure future where it is not guaranteed long run property without repair or refurbishment. Mitigate: To prevent such kind of risk of property damage the ACCOR has to take a professional advice or support to make sure that all the ACCOR branded hotels, employees and none other then the customer and their personal belonging are secure when they are in contact with the ACCOR group. 3. Terrorism threat : The other important threat or risk for any business which cannot be neglected is a threat of terrorism activities. So it need to be highly likely considered as a major task and need to follow the mitigation way to prevent it. Mitigate: ACCOR can insure the standalone terrorism policy insures the property (real and personal) against physical loss or damage by an act or series of acts of terrorism or sabotage. 4. Health and safety risk: Health and safety risk in hotel can be food positioning because of the faulty in supply chain management and by not following the instruction by the food and safety legislation of the countries department is a major risk for the business point of view. Another issue can be fire, and structure of building and location of fire assembly and preventive material and regular checking is a major point to look. This kind of health and safety risk can lead to the major issue for the business which will implies business with serious penalties. Mitigate: Regular base checking on the whole hotel group system of operation and trained employees on the regular basis and strong requirement and criteria for the supply chain management can be implement properly in business. 5. Database security risk: Tourism and hospitality business operation is hugely based on the uses of modern technology. Each department of hospitality sector uses the database information system. For example yield management, operating software, reservation sector, online information, and email internet system along with
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the keeping data of the customer for the purpose of future use. So the database security is more prior to any business in the world. As every organization ACCOR also taking this database security risk as a major task which has to prevent in a proper manner as it concerns with the customer. ACCOR puts customer data security first with encryption system roll out. Mitigate: ACCOR hotels is rolling out a multi-million pound encryption system as part of a program to safeguard customers personal information, including credit card details from the risk of identity theft. Customer data security 2007, Accessed on 30th of may 2013, <http://www.computerweekly.com/news/2240079981/Accor-puts-customerdata-security-first-with-encryption-system-roll-out > 6. Crises management risk(potential communication lack): Crises management in the terms of internal communication within the ACCOR hotel group and their brand is very important. Risk communication aims to changing the acceptance of risk. For this the initiation of risk dialogue between the organization and the public is recommended. The aim of this communication process is an increase in risk acceptance and reduction of conflict potential (Drik Glaesser 2013) Mitigate: By doing the campaign and marketing activities to reach up to the public and through their demand and ideas putting them in the suggestion for improvement of ACCOR business can be done to minimize the crises of communication with the ACCOR hotel group.

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5. Conclusion:
So as the business operates their business activities in a society. Thus all the businesses must have to show their concern towards the society, environment by doing the different activities which will really help to sustainable development throughout the course. As ACCOR believes in expanding business rapidly in the different geographical area of globe by opening 60 more hotels by the targeted year, along with this target ACCOR has to maintained the CSR activities in long way too. As per the one year period of sustainable program called PLANET 21 is doing very well in the field of social responsibilities, it has to more focus on the some activities like the philanthropy work where they can promote the business activities while showing and practising their concerns towards the people who deserve the right opportunities.

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Bibliography:
A. Books: i) Carroll AB. 1979, A Three-Dimensional Conceptual Model of Corporate Social Performance. ii) David A. Fennell, Tourism Ethics, 2006 edition; Channel view publications. iii) Kit Sadgrove (2005), The complete guide to risk management, 2nd edition, Grower publishing ltd, Aldershot, England. iv) Kotler P, Bowen JT and Makens J (2009), Marketing for Tourism and Hospitality. Pearson education, Harlow, England v) Matten D, et, al. (2008.) Corporate social responsibility: readings and cases in a global context. Routledge. vi) Scace, R.C., Grifone, E. and Usher, R (1992). Ecotourism in Canada. Consulting report prepared for the Canadian Environment Advisory Council. B. EBooks: i) Corporate Social Responsibilities, corporate restructuring and firm performances [Online] at

<http://books.google.co.uk/books?id=P7aeROk851wC&pg=PA121&dq=CSR+definiti on+Clark+2006&hl=en&sa=X&ei=1eVhUaSIMoK8Peq7gPgH&redir_esc=y#v=onepa ge&q=CSR%20definition%20Clark%202006&f=false>[Accessed on 28th of March 2013] ii) Drik Glaesser (2013), Crises management in tourism industry, 2nd edition, Butterworth Heinemann, Oxford [Online] Available at: <http://books.google.co.uk/books?id=lgDcWzwwPiwC&pg=PT272&dq=types+of+risk +in+tourism+industry&hl=en&sa=X&ei=L9qMUar8EMXGPO2zgNgO&ved=0CD0Q6A EwAg > [Accessed on 4th of May 2013] C. Reports (PDF): i) The ACCOR Management Ethics Guide [Online] at <http://www.accor.com/fileadmin/user_upload/Contenus_Accor/Developpement_Dur able/pdf/GuideETHIQUE_Management_GB.pdf >[Accessed on 18th of March 2013] ii) Corporate Social Responsibilities: factors that affects the operational performance [Online] at

<http://old.fst.zcu.cz/_files_web_FST/_SP_FST%28SVOC%29/_2008/_sbornik/Pape rsPdf/PhD/Srchova_Marcela.pdf > [Accessed on 9 of April 2013] D. Journals:

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i)

Carroll, AB. (2001), Corporate Social Responsibilities Evolution of a definitional construct in Business and Society. [Online] Vol. 38(3), pp. 268295 Available at

<http://old.fst.zcu.cz/_files_web_FST/_SP_FST%28SVOC%29/_2008/_sbornik/P apersPdf/PhD/Srchova_Marcela.pdf > [Accessed on 10 of April 2013] E. Articles: i) Tristan Lecomte 2012, The Plant for the Planet- The Jakko no-mori Project [Online]Available at < http://www.accorplantsfortheplanet.com/en/actualites_en.html#SOS_SAHEL > [Accessed on 30th April 2013] Websites: i) Customer data security 2007, Accessed on 30th of may 2013,

<http://www.computerweekly.com/news/2240079981/Accor-puts-customer-datasecurity-first-with-encryption-system-roll-out > ii) General information about the Accor franchise management [Online] Available at

<http://www.accor.com/fileadmin/user_upload/Contenus_Accor/Franchise_Managem ent/Documents_utiles/General_information/accor_fiche_a4_gb.pdf> [Accessed on 15th March.2013] iii) Six reasons why company should embrace CSR [Online] Available at

< http://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-shouldembrace-csr/ > [Accessed on 24th of April 2013]

iv)

Introduction to the PLANET 21 program [Online] Available at

< http://www.accor.com/en/sustainable-development/the-planet-21-program.html > [Accessed on 25th of April 2013]

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The achievement of ACCOR [Online] Available at

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