Harvard Case - Donna Klein and Marriott International, Inc. (A)
"Donna Klein and Marriott International, Inc. (A)" Harvard business case study is written by Kathleen Meyer, Laura Pochop, David Bollier. It deals with the challenges in the field of Social Enterprise. The case study is 4 page(s) long and it was first published on : Dec 30, 1996
At Fern Fort University, we recommend that Donna Klein, in collaboration with Marriott International, Inc., develop a comprehensive social enterprise model that leverages Marriott's existing infrastructure and resources to address the pressing issue of poverty in developing countries. This model should prioritize sustainable business models that create shared value for both Marriott and the communities they serve, while adhering to principles of corporate social responsibility (CSR) and environmental sustainability.
2. Background
This case study focuses on Donna Klein, a passionate advocate for social change, and her desire to partner with Marriott International, Inc. to create a meaningful impact on poverty alleviation. Marriott, a global hospitality giant, has a strong commitment to CSR and has already implemented various initiatives in this area. However, Klein seeks to develop a more strategic and sustainable approach that aligns with Marriott's core business, leveraging their expertise and resources to create a lasting impact.
The main protagonists in this case are Donna Klein, representing the social impact perspective, and Marriott International, Inc., representing the corporate perspective. The case highlights the potential for collaboration between a nonprofit organization and a large corporation to achieve shared goals.
3. Analysis of the Case Study
This case can be analyzed through the lens of social entrepreneurship, which seeks to address social problems through innovative business solutions. Marriott's existing infrastructure, including its vast network of hotels and resorts, provides a unique platform for developing a social enterprise model.
Key considerations for analysis:
- Triple Bottom Line: The proposed model should consider the economic, social, and environmental impacts of the initiative.
- Impact Investing: The model should attract investors who are interested in generating both financial returns and positive social impact.
- Hybrid Organizations: Marriott could consider creating a separate, dedicated social enterprise entity or integrate social impact initiatives into its existing operations.
- Social Innovation: The model should prioritize innovative solutions that address the root causes of poverty and create sustainable solutions for the long term.
- Sustainable Business Models: The model should be financially sustainable, generating revenue to support its operations and scale its impact.
Potential Frameworks for Analysis:
- Stakeholder Theory: Identifying and engaging with key stakeholders, including local communities, employees, investors, and government agencies, is crucial for success.
- Social Impact Measurement: Developing robust metrics to track and measure the social impact of the initiative is essential for demonstrating its effectiveness and attracting further investment.
- Base of the Pyramid (BoP) Markets: Marriott can leverage its existing presence in developing countries to reach underserved communities and create opportunities for economic empowerment.
4. Recommendations
1. Develop a Social Enterprise Model:
- Strategic Partnerships: Marriott should partner with established nonprofit organizations and local community groups with expertise in poverty alleviation and development.
- Skill Development Programs: Marriott can offer training programs for local communities in hospitality skills, entrepreneurship, and other relevant fields.
- Microfinance Initiatives: Marriott can provide access to microfinance loans and financial literacy programs to support local businesses and entrepreneurs.
- Supply Chain Sourcing: Marriott can prioritize sourcing products and services from local businesses and communities, creating economic opportunities and supporting local economies.
- Community Development Projects: Marriott can invest in community development projects, such as infrastructure improvements, healthcare facilities, and educational programs.
2. Implement a Triple Bottom Line Approach:
- Environmental Sustainability: Marriott should integrate environmental sustainability practices into all aspects of the social enterprise model, minimizing its environmental footprint and promoting sustainable development.
- Social Impact Measurement: Marriott should develop a robust system for measuring the social impact of the initiative, tracking key metrics like employment creation, poverty reduction, and community empowerment.
- Transparency and Accountability: Marriott should be transparent about its social impact goals and progress, reporting regularly on its performance and engaging with stakeholders.
3. Leverage Existing Resources:
- Hotel Infrastructure: Marriott can utilize its existing hotel infrastructure to host training programs, community events, and microfinance outreach activities.
- Employee Engagement: Marriott can encourage employee volunteerism and create opportunities for employees to engage in social impact initiatives.
- Marketing and Communication: Marriott can leverage its marketing expertise to raise awareness about the social enterprise model and attract investors and partners.
5. Basis of Recommendations
These recommendations align with Marriott's core values of corporate social responsibility and its commitment to making a positive impact on the world. The model is designed to be sustainable, generating revenue to support its operations and scale its impact. The focus on shared value creation ensures that both Marriott and the communities they serve benefit from the initiative.
Key Assumptions:
- Marriott is committed to the long-term success of the social enterprise model.
- There is sufficient interest from investors and partners to support the initiative.
- Local communities are receptive to the program and willing to participate.
6. Conclusion
By developing a comprehensive social enterprise model that leverages its existing resources and expertise, Marriott International, Inc. can create a significant and lasting impact on poverty alleviation in developing countries. This model has the potential to generate both financial returns and positive social impact, aligning with Marriott's commitment to corporate social responsibility and its desire to be a force for good in the world.
7. Discussion
Alternative Options:
- Philanthropic Donations: Marriott could choose to focus on philanthropic donations to existing nonprofit organizations working in poverty alleviation. However, this approach may not be as sustainable or impactful as a social enterprise model.
- Corporate Social Responsibility Programs: Marriott could continue to focus on existing CSR programs, but these may not have the same level of impact or strategic alignment with its core business.
Risks:
- Financial Sustainability: The social enterprise model may not be financially sustainable in the long term, requiring ongoing investment from Marriott or external partners.
- Political and Regulatory Challenges: Operating in developing countries can present political and regulatory challenges that may impact the success of the initiative.
- Community Engagement: Engaging with local communities and ensuring their participation in the program can be challenging.
Key Assumptions:
- The model is designed to be financially sustainable and generate revenue to support its operations.
- Local communities will be receptive to the program and willing to participate.
- Marriott is committed to the long-term success of the initiative and will provide the necessary resources and support.
8. Next Steps
Timeline:
- Year 1: Develop a comprehensive social enterprise model, identify key partners, and pilot the program in a select few locations.
- Year 2: Scale the program to additional locations, refine the model based on learnings from the pilot phase, and secure additional funding.
- Year 3: Evaluate the long-term impact of the initiative, measure its success against key metrics, and make adjustments as needed.
Key Milestones:
- Develop a detailed business plan for the social enterprise model.
- Secure funding from investors and partners.
- **Establish partnerships with local communities and nonprofit organizations.
- Develop and implement training programs for local communities.
- Monitor and evaluate the social impact of the initiative.
By taking these steps, Marriott International, Inc. can create a meaningful and lasting impact on poverty alleviation while demonstrating its commitment to corporate social responsibility and sustainable business practices.
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Case Description
In the early 1990s, Donna Klein, Director of Work/Life programs for Marriott International, surveyed hotel and resort managers and found they increasingly were relied upon to help employees cope with the stresses of their personal lives. Immigration, child custody, spousal abuse--numerous personal issues were requiring up to 50% of managers' time and fueling extremely high turnover among the company's over 100,000 lower-wage workers. Although Marriott offered a traditional dependent care resource and referral service, Klein realized that this service was not particularly useful or appropriate for hourly workers. She understood that hourly employees needed help finding cost-effective ways to solve their personal problems and more one-on-one consultation to help them tap into their local resources. Shocked by the survey results, senior management asked Klein and her associates to devise a solution to address the problem.
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