Chepter 4 St. Tropez places in the world like St. Tropez, a city on the French Riviera-pristine, isolated beaches, nearly all year round, and a string of ultra luxunous hotels that host celebrities from all veryone from the Hilton sisters to Bono. But if the mayor of St. Tropez has his way, this tion spot will soon look a lot different. ENVIRONMENT AND BUSINESS IN ST. TROPEz There are few weathern over the world, ultimate vaca uno’s administration is highly concened that the hotels, and all of their beachfront facilities, present a grow in the sands, and prevent dunes from being worn down by constant foot traffic. According to the mayor’s chief of staff, We all want to be here for the long term. That’s why we need to make sure there’s a sustainable equilibrium between the environment and the community.” Under the mayor’s plan, the amount of beaches allowed for business use w popular Pampelonne area would be closed off to protect wildlife. Additionally, all beaches would be closed by September 1, instead of October, as is usually the case, to reduce the number of people who travel to and through the beaches. serious environmental threat. They want to protect rare plant species that ould decrease by 10 percent, and an entire section of the y local hotel owners are up in arms about these proposals. One owner likened closing the beaches of the city toc is really utting the top off the Eiffel Tower. Others argue that closing the Pampelonne area intended to bring in large, multinational vacation companies to replace the small, locally owned resorts. As Carole Balligand, the head of a local business group says, “This would mean the total destruction of everything that has been here for nearly half a century The owner of your hotel has called a meeting of the management staff to draw up a response to the mayor’s plan. Although all of you are in agreement that protecting the environmen hotel happens to sit on one of the plots that is scheduled to be closed by the mayor’s plan. Is there a that your company can find a way to ba t is important, your way lance environmental concerns with the need to stay in business? with three to five other students and consider For this management team decision, form a group the questions below Sources: Liz Alderman, “Environment and Business Clash in Saint-Tropez.” The New York Times, August 15, 2010, accessed October 12, 2010, from www.nytimes.com/2010/08/16/business/global/16iht-beach.html Questions 1. How would you respond to the mayor’s plan? Would you support its concern to protect the environment, even if it meant the closure of your hotel? Would you oppose it and risk being perceived as uninterested in fulfilling social responsibility? Can you come up with a scenario where the hotel could stay in business and still address the mayor office’s environmental concerns? 2. 3. In cases such as this, how would you justify the decision to fulfill the responsibility and face certain ? Ho ould you justify the decision to ignore the responsibility for the sake of staying in business?

1. Mayor’s plan to close the hotels and reduce footfall of tourists in order to protect the environment is a welcome approach since environmental protection is a major concern globally. It is important to support this plan as a responsible citizen even if it has certain impact on business. However the impact would be short term and not long term as per the scenario in question no. 2.
2. Hotel could still stay in business even while addressing to mayor’s plan. This would happen if the hotel owner sells off the property and buys a new land at a location which does not fall under mayor’s close off plan. However, the property would not be sold for the amount expected by the owner since its value would decrease as it comes under close off plot area. This would result in short term loss to the owner but eventually when more number of tourists visit the place, business would grow and revenue could be made out of the new property.
3. Even if the hotel owner faces loss, the loss is short term but the decision to support environmental issues is a big step which would result in better place for the residents of St. Tropez. So the hotel owner must not think about certain monetary loss but look at the bigger picture of saving environment.
 
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