Creating a green brand for competitive distinction

This research examines the question of how an environmentally proactive hotel can gain competitive distinction by way of 'green' branding. It demonstrates that not all green branding options are created equal. The two most widely recognized options, unilateral commitments and participation in voluntary environmental programs, have significant variations in their ability to inform relevant constituencies, achieve external legitimacy and add firm value. To illustrate these points, this research systematically evaluates the efforts of Damaí Lovina Villas, a small boutique Indonesian hotel, to promote its environmental activities by way of developing a green brand. Further, this study develops a framework that other companies can use to assess their green branding options.