With such a vast impact, it is crucial for the industry to address Environmental, Social, and Governance (ESG) issues, particularly social issues, and stakeholder management. Compliance with international regulations is critical to the long-term success of the industry, and engaging stakeholders in a meaningful dialogue is essential to achieving this.

Social issues are diverse and complex, and the hospitality industry must consider the well-being and safety of employees, guests, and suppliers. It must also address the social impacts of tourism on local communities, such as displacement, overcrowding, and overconsumption of resources. Furthermore, social issues have a direct impact on the financial performance of the industry. Addressing these issues is not just a matter of corporate social responsibility, but it is critical for the long-term success of the business.

Stakeholder management is the process of engaging stakeholders in a meaningful dialogue and incorporating their feedback into business decisions. It is an essential part of compliance with international regulations, and it fosters trust, improves relationships, and enhances the reputation of the business. The hospitality industry has several stakeholders, including employees, guests, suppliers, local communities, and investors. Engaging with stakeholders in a meaningful dialogue is essential to address social issues and ensure the long-term success of the business.

From an Indian perspective, the hospitality industry is a significant contributor to the economy, creating jobs, and driving economic growth. However, the industry must also recognize its impact on the environment and local communities. India is home to diverse and culturally rich communities, and the hospitality industry must engage with them in a way that respects their traditions, customs, and values.

The Indian hospitality industry has made significant progress in recent years in addressing ESG issues, particularly social issues. Several leading hospitality companies have implemented sustainable practices, such as reducing energy consumption, waste, and water usage. They have also implemented programs to engage with local communities and address the social impacts of tourism.

One such example is the Indian hotel chain, The Oberoi Group, which has been recognized for its sustainability initiatives. The company has implemented several green initiatives, including energy-efficient lighting, water conservation, and waste management programs. The company also engages with local communities through its "Oberoi Philanthropy" program, which focuses on education, healthcare, and community development.

Another example is Taj Hotels, which has implemented several sustainability initiatives, including a "Green to Gold" program that focuses on reducing energy and water consumption. The company also engages with local communities through its "Taj Inner Circle" program, which provides training and employment opportunities to disadvantaged youth.

However, more work remains to be done to address ESG issues in the Indian hospitality industry. For example, there is a need for greater collaboration between the industry and local communities to address social impacts. The industry must also adopt more sustainable practices, such as using renewable energy sources and reducing waste, to reduce its impact on the environment.

Furthermore, the industry must also comply with international regulations to ensure its long-term success. One such regulation is the Global Reporting Initiative (GRI), which provides a framework for sustainability reporting. The GRI framework covers a range of issues, including environmental, social, and governance issues. Companies can use this framework to report on their sustainability performance, which can help to build trust with stakeholders and enhance their reputation.

The hospitality industry must address ESG issues, particularly social issues and stakeholder management, to comply with international regulations. Engaging with stakeholders in a meaningful dialogue is critical to achieving this. The Indian hospitality industry has made significant progress in recent years, but more work remains to be done. Companies must adopt more sustainable practices and engage with local communities to address social impacts. By doing so, they can build trust, enhance their reputation, and ensure the long-term success of the business.

One of the most famous hoteliers in the world, Bill Marriott, emphasized the importance of social responsibility in the hospitality industry. He said, "Doing the right thing for society is not only a moral obligation, but it's also good business." This sentiment is echoed by many in the industry who recognize the importance of addressing ESG issues to ensure the long-term success of the business.

In recent years, the hospitality industry has faced increased pressure from consumers, investors, and regulators to address ESG issues. According to a survey by Nielsen, 66% of consumers are willing to pay more for sustainable products and services, indicating a growing demand for sustainable tourism. Investors are also paying close attention to the sustainability performance of companies, with more than $40 trillion in assets now being managed using ESG criteria.

Regulators are also taking action to address ESG issues. The European Union, for example, has implemented the Non-Financial Reporting Directive, which requires certain companies to report on their sustainability performance. The directive covers a range of issues, including environmental, social, and governance issues, and applies to companies with more than 500 employees.

The hospitality industry must be proactive in addressing ESG issues, particularly social issues and stakeholder management, to comply with international regulations and meet the growing demand for sustainable tourism. Engaging with stakeholders in a meaningful dialogue is essential to achieving this, and the industry must adopt more sustainable practices to reduce its impact on the environment and local communities.

In conclusion, the hospitality industry has a critical role to play in addressing ESG issues, particularly social issues and stakeholder management. The Indian hospitality industry has made significant progress in recent years, but more work remains to be done to comply with international regulations and meet the growing demand for sustainable tourism. By adopting more sustainable practices and engaging with local communities in a meaningful dialogue, the industry can build trust, enhance its reputation, and ensure its long-term success

Authored by Shreeya Shukla, founder of ESG CrisplyPut and a sustainability expert.