Accor study targets its economic and social responsibility footprint

Accor has assessed its impact on its communities

Accor has assessed its impact on its communities

AccorHotels has published the findings of its first socio-economic footprint study.

Part of the group’s corporate social responsibility, the report aims to quantify and analyse the ripple effects of the company’s activities throughout the worldwide and local economies where it is based.

With the information Accor has gathered it hopes to strengthen the positive impacts in the communities around its hotels as well as limiting any negative impacts that may arise from its development.

The study encompasses the group’s 3,600 hotels, is based on its 2013 financial statements, and looks at the three main financial flows from the group into the economy, namely:

  • Hotel expenditure (primarily purchases from suppliers);
  • The wages that AccorHotels brand hotels pay their employees;
  • The taxes resulting from the Group’s activities.

The report does not include the local expenditure of guests staying in the hotels.

Based on these flows, the report quantifies three types of impacts:

  • Direct: the value added by the group and the presence of AccorHotels’ employees around the world
  • Indirect: the economic ripple effects of its purchases, expenditure or investments;
  • Induced: the activities supported by the wages and taxes paid by AccorHotels or its suppliers (household consumption and public spending).

The report identifies two key findings.

  1. AccorHotels sustains around 880,000 jobs (direct, indirect and induced)

Over and above the jobs revolving directly around its core business, the group’s activity has created or supports some 700,000 indirect and induced jobs around the globe, in three main sectors: corporate services (laundry, cleaning, security), agriculture (as a result of its F&B activity) and public services (education, healthcare and transportation).

The findings suggest that every job created in an AccorHotels brand supports more than four other jobs around the world.

  1. AccorHotels principally creates wealth in its host countries

The group contributes €22 billion to world GDP. This contribution encompasses the value added directly by the group, plus the value generated by the activities of its suppliers, by household consumption and by public spending.

The economic impacts from the group’s activities correlate with its local presence. France, Germany, Australia, Great Britain and Brazil enjoy substantial portions of this wealth. However, in emerging countries like India and Ivory Coast where the Group has a smaller presence, a very large share of their contributions to GDP remains firmly rooted in the host country (close to 90%).

The group’s economic contributions are particularly felt in France where the company is headquartered.

Accor concludes that its study underscores the fact that the group’s focus on value creation is firmly rooted in local communities, and that it needs to continuously step up its economic and social responsibility in its host countries. In 2014 AccorHotels updated its Ethics and Corporate Social Responsibility Charter and appointed a Committee to supervise observance and to enhance responsibility in the areas of management ethics, integrity and legal compliance.

The footprint study also reveals the deep interconnections between the group, its stakeholders and its host countries. The company acknowledges that its role as business partner and customer entails substantial responsibility. This has led it to set up monitoring mechanisms throughout the value chain, and in particular to develop joint innovation initiatives with its key partners in order to improve the sector’s practices. The company aims to use these findings to fine-tune the new chapter in PLANET 21, its sustainable development programme which will be presented next Spring. PLANET 21 stresses the importance of “jobs”, “local development” and “stakeholder dialogue”.

Acknowledging that its business is rooted in local communities, and contributes directly to a shared economic dynamic by means of direct and indirect employment, the company has committed to preserve these activities and protect that which is most precious and fragile - children, cultural diversity and natural ecosystems.

AccorHotels has committed to:

  • give priority to employing local staff in its hotels;
  • ensure access to training, so as to develop the skills and employability of local employees with no foundation training in our line of business;
  • promote the culture, heritage and gastronomy of the region in which hotels are located;
  • help combat poverty through its commercial agreements, such as by offering fair trade products whenever possible;
  • encourage hotels to buy and promote local products;
  • prioritise partnerships and links with local communities.

Addressing human rights issues the company has also committed to be watchful of employment practices far removed from its values and human rights commitments, e.g. forced labour, child labour, discrimination, dangerous or degrading working conditions;

Accor used Utopies, a consulting firm that specialises in this field and developed the LOCAL FOOTPRINT® modelling tool to estimate indirect and induced impacts in 186 countries and 25 business sectors, to produce this report. EY, an independent expert, audited and certified it.

The full report is available to read here.

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