Corporate Social Responsibility (CSR) About this Report This report introduces our Sustainability Agenda and focuses on our action and progress made during 2014. Index A message from Thanos Michaelides Managing Director Our Sustainability Actions Our Values Our Mission / Vision Sustainability Organizational Structure Issues in our Sustainability Agenda and Actions Our Sustainability Plan and the Way Forward Final Thoughts Thanos Hotels: Our Journey to Sustainability A message from Thanos Michaelides Managing Director Sustainability involves individual organizations considering the social, economic and environmental effects of their activities – and taking steps to reduce or mitigate any undesirable impacts that may occur. Here at Thanos Hotels, sustainable tourism underpins all of our activities and is integral to both our success and our values. Our approach in order to ensure that we deliver sustainable tourism includes retaining the economic and social advantages of our operations while taking the necessary steps to protect and support the local natural, historic and cultural environments, and local community. We understand that environmental conservation and community engagement is more than a moral imperative, it also makes good business sense. Consumer demand for a more sustainable approach to tourism is growing, and increasingly becoming a determining factor in consumers’ choice of tourist destinations and providers. Ensuring that we continue to meet and exceed these demands will not only benefit visitors and our stakeholders, but will result in higher environmental and social standards in our locality. To ensure that we meet and exceed our goal for sustainable tourism, we choose to embed the concept of sustainability and social responsibility in our entire ethos: we continually evaluate and consider our operational decisions; and incorporate strategic actions in areas such as the environment and energy, community, people and marketplace. This ensures that we offer the highest quality services; deliver a true and authentic tourism experience; consider and protect the environment; and treat all individuals with respect. Thanos Hotels: Our Journey to Sustainability A message from Thanos Michaelides Managing Director We run each hotel as a unique property, on its own path, towards five star positioning and beyond. Our hotels are exceptionally welcoming, individual and distinctive, each proudly supporting local culture and traditional values through everything from handmade artisanal furniture to regionally sourced produce. We are driven by quality, which is our guests’ first priority when choosing a holiday – and key to providing sustainable profitability. Furthermore, by investing in our staff and communities we improve their wellbeing and ensure the dedication of a loyal and focused team, working together in unity for one goal. Unless otherwise noted, this report is based on data from the 2014 fiscal year and reflects operational performance of our 3 hotels. Our sustainability report includes details of our ongoing tasks in the areas of sustainability and social responsibility. We invite you to take a look to see where we have made important progress and what our future plans are. We welcome your input and encourage you to join us as we invest in the communities where we do business. Sustainability Actions: Highlights Our Values To support our vision for our Hotels, we base every aspect of our service offering on the following values: Our Vision /Mission Our Commitment is… To conduct our business ethically and responsibly according to our values for our customers, communities and our people, in respect to the environment. Our vision is to be recognised as the embodiment of Mediterranean hospitality. our Our mission is to create authentic Mediterranean hotels with personalities as distinctive as the guests who identify with them. • Thanos Hotels has proven that the exceptional quality of its properties is the main driver of its operations. By offering an outstanding service experience and creating long lasting memories for our guests, we achieve a high repeat guest ratio. • The main priority of each hotel is to ensure that our clients have an unforgettable holiday experience. Our Vision /Mission • At Thanos Hotels we believe that maintaining high ethical standards is very important, as strong ethics and good business go hand in hand. Therefore, we have created an environment where our people should feel comfortable speaking up when they suspect potential violations of laws and policies. Additionally, we urge our employees to demonstrate high standards of integrity and lead by example. • Our employees should always behave in a manner that is consistent with the company’s values in their day to day interactions. • At Thanos Hotels we understand the importance of treating all people well not just our hotels’ guests. • We urge our employees to use common sense and good judgment when giving or accepting business courtesies, so as to avoid any appearance of impropriety. • We have a strong and lasting commitment to transparency. • We are committed to carry out our business operations with honesty and integrity and according to the highest ethical standards. Sustainability Organizational Structure Based on our decision to expand, the company has created a structure to allow it to operate additional hotels. Having been in the hospitality industry for more than 35 years, Thanos Hotels has learned to be flexible and adjust the company’s structure according to the needs of the market. The company has formulated a clear structure that distinguishes the individual hotel operations from the corporate administration. Our Company’s structure is illustrated below: Sustainability Organizational Structure By creating a strong corporate team the company has managed to build on economies of scale and create an effective and efficient corporate administration for its operations. The corporate team’s main objective is to ensure that the hotels are promoted efficiently and that all hotel operations’ needs are met in order for the hotels to deliver high quality standards and desirable guest experiences. Recruiting needs and product needs are handled by the corporate administration. To support our Sustainability Strategy we have engaged our people and formed a sustainability team. Each one of our hotels has formed its own CSR Committee. Our Group CSR Committee has the overall responsibility for the development and implementation of the Company’s CSR Strategy. Our sustainability group structure is shown in the adjacent diagram: In addition to our CSR committees presented above, each hotel has a HACCP Committee (Hazard Analysis & Critical Control Points), a H&S Committee (Health & Safety), a Welfare Committee and a Staff Committee responsible for decision-making about economic, environmental, health and safety and social matters. Issues in our sustainability agenda We understand that sustainable tourism delivers positive economic, social and environmental outcomes with consideration to visitor’s needs, the hospitality industry, legislation, the local community and the environment. We also understand that the tourism industry has negative impacts especially on the environment, sometimes affecting the biodiversity and local habitats close to seashores, producing solid and liquid waste, using natural resources, consuming energy and producing emissions. We remain focused on what we do well, which is the provision of hospitality services and experiences, taking care of our guests, and controlling our operational costs. However, we are also investing in innovative conservation initiatives designed to provide long-term solutions to critical social and environmental issues. Our continuous focus on sustainable hotel development generates opportunities to increase local tourism, to create new jobs and support local communities. At Thanos Hotels we manage our material aspects and impacts following a proactive approach that consists of our organisational structure (we have specific sustainability teams at hotel level), internal policies, processes and procedures formulated, developed and implemented as part of our management systems and comprehensive action plans. Additionally, the mechanisms for evaluating the effectiveness of our approach and our compliance include communication plans with stakeholders, materiality analysis for strategy development, a rigorous monitoring and audit programme and performance indicators (action plans). Issues in our sustainability agenda We follow and implement these action plans on an annual basis and at the end of the year we review, update and adjust our targets according to our overall performance and end of the year results. We understand that significant challenges must beaddressed in order to achieve our objectives and our vision. These challenges are presented in the figure below: Sustainable tourism can be defined as tourism that delivers positive economic, social and environmental outcomes with consideration to the needs of the visitor, industry, community and environment. Issues in our sustainability agenda At Thanos Hotels we have been engaging with our people in an effort to identify and prioritise our most significant sustainability issues that occur as a result of our hotels’ operations. Following this engagement process, we grouped our significant issues under four pillars: Environment, Market Place, Community and People. The figure below outlines the focus areas for each pillar: Our Sustainability Actions: Marketplace In delivering our hospitality services it is very important to meet our clients’ expectations in order to ensure continuous improvement and growth of our business. In a very competitive tourist market understanding our clients’ needs and expectations is imperative for sustainable growth. In the following areas, we discuss the ways we are managing matters in regards to meeting client expectations, ensuring product quality and promoting and sustaining our destination image. Meeting Client Expectations and Product Quality At Thanos Hotels we are proud of the fact that we are achieving a high repeat guest ratio, by offering an outstanding service experience and creating long lasting memories for our guests. Our actions and commitments in order to satisfy our clients and other stakeholders include: • Commitment to ensure our product safety. • Commitment to satisfy our clients’ needs, requirements and expectations. • Commitment to satisfy our tour operator partners’ agreed requirements. • Management of product quality by maintaining structured procedures and Standard Operating Practices (SOP). • Working with local and international partners with similar quality and work ethics. • Maintaining open communication with our employees, clients, suppliers. Our Sustainability Actions: Marketplace • Incorporating high quality, food safety, health and safety and environmental management standards into everyday business practices. • Creating and delivering a unique product based on our Vision. • Ensuring hotel grounds are maintained to the appropriate levels needed for international guests. • Preventing accidents/incidents in the workplace by appointing a Health & Safety Officer, by performing training for our staff and by carrying out regular risk assessments of our properties. • Identifying, evaluating and monitoring all food safety risks from production through to delivery through the implementation of HACCP and ISO 22000 guidelines in all three hotels. • Continually improving our product offering. Since our first hotel launch, we have developed two award-winning spas, we operate a very successful group of luxury boutiques in Cyprus, we have partnered with a like-minded brand on our kids club and we have introduced a series of highly successful new dining concepts. • Preserving our guests and employees trust by safeguarding and handling their information in a private and confidential manner. • Educating all our employees in regards to the importance of guest privacy. • Exchanging of confidential information is prohibited. • Collecting and using guest information, with their permission, to provide them with better and more memorable experiences. We carry out guest satisfaction surveys each year and analyze data to better understand their preferences. In 2014, all our hotels have achieved high scores from our guests. Our Sustainability Actions: Marketplace Tourism Seasonality Seasonality in the hospitality industry presents a number of issues that require special attention and strategies. More specifically, seasonality affects the number of tourists that visit the island and therefore can threaten the viability of our business. Many hotels in Cyprus close during the winter due to the decrease in the number of tourists that visit the island. At Thanos Hotels we believe in remaining open throughout the year, however, we are obliged to close Anassa because of its location. Nevertheless, our other two hotels remain open all through the year and as a result we employ staff and minimise unemployment, we contribute to the local economy, and we contribute to the increase of winter tourism overall. It is noted that in order to increase the number of tourists during the winter season and remain open, we offer off-season packages to both locals and foreigners. Image of destination Destination image is commonly accepted as an important aspect of successful tourism management and destination marketing. The information about a specific destination is an important means of promotion for the tourism industry and influences the choices of tourists. We carry out different activities in order to promote the destination image such as: • Cleaning of the beach and the sea every year. • Supporting and assisting local sport activities and encouraging usage of local municipality grounds. • Engaging with local communities and other stakeholders to improve the tourism product at the destination level. Our Sustainability Actions: Community We support and invest in our local communities and as a result, we create value for both our business and society by contributing to the local economies, developing talented local workforces and fostering local relationships that help ensure success. We recognise our responsibility to respect the environment and manage our impacts for the benefit of the communities in which we operate. We shape economies and strengthen communities by providing employment and income to local residents, as well as by purchasing local produce. Local Community Engagement and Involvement We are committed to strengthening the communities where we operate, recognizing that when a community prospers, so does our business. Additionally, we are committed to measure and manage our societal impacts and finding innovative ways to mitigate them. Measures already implemented on a continuous basis include: • Working closely with suppliers in order to identify opportunities to source locally produced goods and services. More specifically we buy local products such as Nuts, Raisins, Sausages, Fruit, Vegetables, Lountza, Tsamarella, Carob Syrup, Epsimon, Olives, Olive Oil, dried Fruit, Dairy Products, Bread sticks, Wine, etc • Employing local people: 51.12% of people employed in our hotels are locals versus 48.88% foreign staff. • Working with local partners to support projects that increase community well-being. Our Sustainability Actions: Community • Sponsoring a number of local events, sporting teams etc. • Incorporating regional food and/or wine as part of our product experience. • Providing information to guests about the area’s cultural and natural characteristics. • Encouraging our employees to volunteer in organizations, local communities, associations etc. • Offering work experience for students. • Donating to charities e.g. donations to the Sophia Foundation. Our Company recognises its environmental responsibilities and is highly committed to ethical business practices that avoid activities with a significant environmental impact and/or mitigate the impact of such activities to acceptable levels. We believe that the inclusion of environmental responsibility in our business strategy and hotels’ operations will play a vital role in the continuous viability of our business and the hospitality industry. Our Sustainability Actions: Environment Waste Management, Recycling • Currently large quantities of waste goes to landfill and the tourism industry is a large contributor to the amount of waste produced. Waste disposal in landfills has significant adverse environmental impacts such as soil pollution, water and groundwater pollution, air pollution etc. Additionally, natural resources are becoming more and more limited. Therefore, it is critical to adopt waste reduction measures and rational waste management practices in order to minimise our impact. Proper management can avoid the generation of unnecessary waste but also reduce disposal fees and transportation costs, both financial and environmental. • Waste management measures include: > the implementation of a paperless system in order to reduce paper. > the recycling of various streams of waste such as pmd (plastics, metals and drink cartons), paper, glass etc. Water Management • Water is a serious issue for the tourist industry especially due to the water shortages we experience on the island. As part of our hotels’ operations, we have a bathroom in every room and various swimming pools on the premises, therefore, water forms an integral part of every guest experience. However, rational water management is essential so as to ensure that not only we minimise our water consumption but we also eliminate the possibility of water pollution. Our Sustainability Actions: Environment • We have been implementing water conservation measures by reusing water coming from pool operations for irrigation purposes (hotel gardens). Through these actions our water consumption in 2014 has been reduced by 5.9% in comparison to 2013. Energy Management • Electricity consumption is one of the most costly aspects of hotel operation from both a financial and environmental point of view. With careful design and through the implementation of green measures, we are positive that we will be able to reduce consumption without diminishing the well-being of guests and employees. • We are pleased that our target to reduce electrical energy consumption in our hotels has been achieved with our average consumption in 2014 being reduced by 9.2% in comparison to that of 2013. Our Sustainability Actions: People • Thanos Hotels is a genuine family business which runs on an ‘extended family’ concept – our management, staff and guests are all part of the family. • Our goal is to create a friendly and ideal environment, which our people feel proud to be part of. • We invest in our staff as we know the importance of a loyal and dedicated team working together in unity for one goal. • We employ capable individuals and we provide continuous training to all our employees so as to satisfy our clients increasing demands. • Additionally, we are dedicated to providing fair working conditions and supporting human rights throughout our business. • We strongly support the elimination of employment discrimination and promote diversity in the workplace. During the reporting period, Thanos Hotels employed 650 people during the summer period (April – November) and 400 people during the winter. More specifically, throughout the year the company employed 53% male and 47% female permanent employees per hotel. We are a company of diverse cultures, providing hospitality services to diverse guests. It is noted that 51.12% of our employees are Cypriot, 13.71% Greek, 8.05% Pontian Greeks, 26.38% Europeans (20% Bulgarian, 20% Romanian, Lithuanian, Estonian, Hungarian and others) and 0.75% non-Europeans. Staff Engagement and Motivation At Thanos Hotels we firmly believe that excellence and client satisfaction cannot be achieved without the active engagement of our people. We are investing in developing our staff through several initiatives: Our Sustainability Actions: People • Incentive plan based on KPI’s. • Equal gender job opportunities. • Sporting events, social events, sponsorship, football tournaments. • Staff canteen. • Incentive programs. • Birthday parties/employee of the month parties. • Yearly appraisals - 100% of all our hotels’ employees received a performance review during 2014. • Be a guest programme / mystery shopper: “Try Us”. The purpose of the “Try Us” Policy is outlined as follows: > To provide employees the opportunity to obtain a firsthand experience of the Hotels’ services in specific outlets and departments which will assist them in promoting and selling these outlets more effectively. > The Policy is used also as a motivational tool for employees as it promotes a sense of “belonging” to the company. Health and Safety Health and safety issues are very important to us because we want to protect the health and safety of our employees, guests and suppliers/contractors. Beyond achieving compliance, our approach has been to manage risks effectively: • Every hotel implements and maintains an occupational health and safety management system that consists of comprehensive policies, procedures and instructions. It is noted that these documents are available to our employees. • Legal requirements are closely monitored, ensuring company’s compliance i.e. by keeping an accident register and statistics, and having a Health and Safety Committee in each hotel. Our Sustainability Actions: People • The company employs a Health and Safety Officer in order to ensure compliance with legislation. • All our employees are responsible for identifying and responding to health and safety hazards within our company’s premises. • The Health and Safety Officer is responsible for all aspects of Health and Safety in our hotels e.g. he suggests measures for the protection and safety of employees and guests, he keeps track of numbers and nature of accidents - incidents and near misses that occur in the hotels grounds, performs staff training, inspects hotels premises and suggests measures to improve overall Occupational Health & Safety and compares data between semesters so as to decide the way forward in regards to health and safety issues. • The Health and Safety Officer prepares 6-monthly reports with the accident-incident analysis for the respective period. In 2014, two such reports have been issued and sent to Company management. • We are providing health and safety training to our employees. • Thanos Hotels is taking steps to prevent accidents/ incidents in the workplace by appointing a Health & Safety Officer, by performing staff training and by performing regular risk assessments of its properties. • It is noted that the hotels also implement and follow the HACCP and ISO 22000 Food Safety System guidelines. Our Sustainability plan and the way forward This summarizes our process for defining our material sustainability issues in 2014 in order to create a comprehensive sustainability strategic plan. To ensure that we have a robust sustainability program in place, we also present the key initiatives we plan to implement. We have set these commitments below. The progress we made against each initiative is indicated using the symbols shown in the table below. We track and review our sustainability program using our sustainability governance structure (see Sustainability Organizational Structure) Final Thoughts Sustainability is not only looking after our natural environment. Sustainability is also about considering the social and economic impact of what we do. At Thanos Hotels we are committed to continue our efforts towards sustainability. Our main objective is to address challenges and embrace future sustainable opportunities in a coordinated manner so as to improve business performance and achieve economic benefits. For more information about this report, please contact: Natasha Michaelides, Company’s Marketing & Communications Director Tel: +357 26 888714 Website: http://www.thanoshotels.com/ For more information about our Company and Hotels please visit us at: http://www.thanoshotels.com/ w w w. t h a n o s h o t e l s . c o m
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