Ethical Decisions Made by Managers inside the International Hospitality Industry - Essay Example

Running Head: Ethics in Management Ethics in Management of Ethics in Management Introduction Ethics has been defined as the queries and inquiries regarding moral principles and values. It strives to derive the proper and right conclusion out of any condition. It seeks to agree upon the establishment of moral values and principles. Finally ethics is concerned with determining the essential character of honesty and integrity. The international hospitality industry constitutes diversified network of business interests and stakeholders that reaps billions of dollars in revenue and income annually. Management of the international hospitality industry faces a number of moral dilemmas where they have to make the appropriate ethical decisions. Decision making has been identified as one of the most valuable and crucial tools available to managers. The ability to make qualitative and productive decisions has been associated with successful management skills. Management is said to influence the organization’s ethical functioning by setting up priorities that lead to the ethical demeanor of the organization. Management must have the awareness and perception in making appropriate and precise ethical decisions. This can be achieved if decisions are based upon attaining goals and identifying the moral values of the organization. Managers also have to evaluate the effect of their ethical decisions on the vital interests of the business. The aim of this research paper is to analyze and evaluate the ethical decisions made by managers inside the international hospitality industry. The paper further identifies the core ethical values that are agreed by managers. It also discusses the influence and impression of these ethical decisions on the various interests of the international hospitality industry. Management and Ethics There is a strong relationship between management and ethics because this enables the creation of organizations where responsibility, integrity, honesty, and good governance are generated. Managers are geared towards achieving the goals of the organization through a process of dynamic and revolutionary concepts (Yeung 253, 2004). Responsible organizations can employ qualitative decisions that take into consideration the impact of their decisions. If these decisions are based on ethics than the various interests of the organization will also prosper. The local community will be empowered to have improved standards of living. The environment will be safeguarded by the practice of friendly policies and procedures. The international hospitality industry is faced with a number of issues that strongly determine their image and representation. Generally, hospitality researchers have agreed that hospitality management is confronted with issues enveloping guest privileges and rights, empowerment, harassment, departmental relationships, vendor associations and dealings, community, social and public dealings and the equilibrium of individual and organizational principles. This is because the international hospitality industry affects a large segment of society. Managers working in the international hospitality industry have to strike a balance between profitability of the business and ethical decision making. Often both of these factors can be at odds which forces some managers to ignore ethics for the pursuit of corporate profit and revenue. Providing effective and efficient solutions to resolve this dilemma usually involves the use of ingenious and resourceful strategies. Key leaders of the international hospitality industry have begun to understand the importance of striking a balance because the general public is highly conscious regarding the industry’s ethical behavior. Impact of Ethical Decision Making on Hospitality Management Ethical decision making provides the foundations for hospitality industry in order to broaden management and the organization’s priorities far beyond conventional business aims of profit and shareholder enrichment (Bryson 59, 1992). The modern concept of ethical decision making covers wide ranging issues such as corporate social responsibility, ethical management and leadership, social enterprise and well being of stakeholders. The industry is considered to be service related industry which suggests that it is difficult to assess and figure out the satisfaction level as it is highly capricious and dependent on individual customer. An example of ethical issues faced by management would be to detect and diagnose cases where employees have misused or abused the resources for personal profit or gain. Illicit and illegitimate activity by employees can tarnish the reputation and status of the organization. Employees who do not respect the ethical standards of the organization can create strong reactions in the form of legal suits and complaints. It can also affect the business as clients will seek to avoid such organizations. Another critical issue is that of the environment as there have been concerns that the industry has not been taking effective measures to protect the environment (Brymer 546, 2006). A number of leading hotel chains like Marriot has embarked upon a massive program to adopt environment friendly policies. The company has sought to remove the usage of substances that are known to cause harm to the environment. It has also made significant investments in preventing energy and water wastage. Thus it can be shown that the hospitality industry faces a number of ethical dilemmas. Ethical Codes and Industry Management of the international hospitality industry has to adhere to ethical codes in order to ensure efficiency and effectiveness of the organization. Ethical codes can be inspired or derived by the personal experiences of the managers. It can also influenced by the organizational culture. These codes help to provide the standard policies and procedures that assist managers in dealing with various ethical problems (Betsy 233, 2001). For instance the use of effective communication skills can assist the management in responding to the unique needs of their guests. The business partners of the organization can be consulted on important matters. Managers can create their ethical codes by inspiring confidence amongst the employees. They can ensure that employees are given a high degree of autonomy and independence in making decisions. Employees can be educated that their personal growth is tied to their ability to adhere to the ethical standards and codes of the organization. The legislation where a particular member of the industry operates also acts as an influencing factor in the shaping of ethical codes. Western hospitality organizations will focus on individualism as the key ethical culture. Feedback and opinion from employees will be encouraged. Individual initiative will be rewarded in the form of bonuses and incentives. Other cultures might encourage the creation of collectivist ethics where each individual should identify with the organization. In such organizations the ethical culture will revolve on the interests of the organization while individual innovation and dynamism will be sidelined. The current rise of ethics training inside the hospitality industry has influenced the behavior and culture of the industry. The aim and objective of creating ethical awareness and training is to help employees make decisions which are ethical. Good corporate citizenship can be helpful to staffing and preservation in the hospitality industry. Potential recruits are often questioned about the organization’s GCC guidelines when their interviews are conducted and holding a complete and full policy can give benefits. GCC can assist in enhancing the perception of workers of the organization, specifically when they become active members and participate in activities such as fundraising, saving the environment or community volunteering. Simultaneously, the hospitality industry is winning employee loyalty and pride. Impact on Stakeholders Increasingly, the hospitality industry is aggravated to become more communally and environmentally responsible because their most essential stakeholder have high expectations. They expect them to recognize and address the environmental issues that are relevant to them. Understanding the essential causes which are important to the workers is customarily the first main concern because of the many interconnected business advantages that can be derived from augmented employee engagement (Randall 1349, 1998). Understanding what external stakeholder need is also essential in order to stabilize in the market. Recognizing the ethical values of customers, consumers, investors, etc is also essential because it will augment the organization’s reputation in the hospitality industry. A stakeholder is considered to be a group of people who lose or gain because of the actions of the organization. Consumers and clients are the backbone for generating revenues and reputation in the hospitality industry. With stability and good reputation in the market, the organization can also attract investors which will benefit the organization as well. Conclusion No organization can survive without making the appropriate ethical decisions. The international hospitality industry faces numerous ethical challenges because it affects a large number of stakeholders. Management of the industry needs to be highly efficient and effective in making quality decisions. The right decisions can enable the organization to achieve its targets. It also ensures good relations with the vital interests of the organization. Ethical codes inside the organization are derived from the personal experiences of managers. The organizational culture, legal system, and culture of the country can also influence and shape the ethical codes of the international hospitality industry. Hospitality industry has faced enormous challenge due to fierce economic and social changes. The management of the firm should secure their position by implementing ethics and fulfilling their duties as good corporate citizens in order to stabilize them in the market. Management should ensure consumer satisfaction, employ trained workers and exhibit ethical decision making in order to attract stakeholders. Good governance and responsibility can lead to the creation of accountable and transparent organizations in the hospitality industry. It also increases the corporate image and reputation of the organization. The development of standard procedures to respond to ethical dilemmas in an efficient and effective manner is the key to success for the industry. It also helps to remove the negative image which is generated amongst the general public. References Bryson, McDowell. Concierge: Key to Hospitality: A Training Manual. New York: Wiley, 1992 Sylvester Yeung.  (2004). Hospitality ethics curriculum: an industry perspective. International Journal of Contemporary Hospitality Management, 16(4/5), 253-262 Betsy Stevens.  (2001). Hospitality ethics: Responses from human resource directors and students to seven ethical scenarios. Journal of Business Ethics,1  30(3), 233-242 Robert A. Brymer. (2006). Future global hospitality leaders: a comparison of European and US ethics. International Journal of Contemporary Hospitality Management, 18(7), 546-553 Randall S Upchurch.  (1998). A conceptual foundation for ethical decision making: A stakeholder perspective in lodging industry (U.S.A). Journal of Business Ethics, 17(12), 1349-1361 Read More