Business Ethics and Responsible Management in Hospitality Industry

Business Ethics and
Responsible
Management

Contents
Ethical issues and their importance in hospitality industry......................................................................3
Reference.................................................................................................................................................6
Apply the Ethical theories within organization........................................................................................7
Reference.................................................................................................................................................9
What is ethical leadership management and what make an ethical leader.............................................10
Reference...............................................................................................................................................12
Conclusion.............................................................................................................................................12

Introduction
Business ethics and social responsibility are very important issues for the organizations to
taken into account at the time of decisions making. The business ethics are how organizations
conduct themselves in their policies and practices and focus on their doing what is best for
stakeholders and shareholders. The responsible management is defined as seeking to balance
interest of the entire world including companies, environment, and people to prosper for the
benefits of future and current generation. In business, there are various ethical issues where
moral conflict arises and they need to be addressed (Banks and et. al., 2021). This report will
include the ethical issues and their importance within an organization, role of the business in
society, impact of ethical issues on stakeholders, good and bad example of the ethical issues,
recommendations to the organizations, and different theories of ethical issues with their
advantages and disadvantage and reflection on leadership.
Ethical issues and their importance in hospitality industry
In hospitality industry, there are many ethical issues which are mentioned below:
 Harassment- This ethical issue is related t the sexism or racism. In any specific
organization it can be in the form of sexual abuse, racial slurs, bullying, teasing, verbal
abuse and many more. Harassment can come from anyone within an organization. In
particular harassment is an ethical issues for a business if its supervisor is conscious of
the harassment from the clients and do not take any action to prevent it.
 Human trafficking- It is analyzed that around 75% of the human trafficking survivors
report having some contacts with the hotels during their trafficking. It is highlighted that
the extent to which hotels were conflict through actually helping the trafficking and
turning a blind eye to what was happening in some hotels such as Hilton and Marriott.
 Slavery- Hotels are also implicated in the modern slavery for their own staff or
workforce and perhaps more typically when housekeeping and cleaning is sub contracted.
Under this type of circumstance, hotels may be unaware about what is happing to their
employees or staff. The employees work under pressure with less salary (Silva and et.
al., 2021).

Importance of the ethics
 In hospitality industry, ethics are importance as it provides instructions and guidelines for
acceptable conduct so that the business aware about the difference between wrong and
right in orders to strategies their daily operational activities by choosing to do right
things.
 The ethical practices contribute in the productivity of firms by minimizing the losses,
establishing customer’s loyalty, creating trust with suppliers and maintain a successful
team of workers in hospitality industry.
 In hotels, ethics create crucial sense to both the clients and workers that a firm has them
at heart and therefore strongly win the need for innovation, creativity and future sense of
the sustainability (Harfouche and et. al., 2021).
Role of a business in the society
Nowadays, businesses are becoming more responsible towards the society. Role of the
organization is more that only making profit for their owners, but they also giving back to the
community and society in which firm exist. They provide the goods and services to customers,
but also make contribution to the local communities’ through the economic infrastructure via
payment to their shareholders, employees, local taxes, suppliers, whilst they can also contribute
in solving social outcomes and have become responsible for more than their economic impact.
The business also play crucial role in the economy as it create wealth by adding the value to
inputs they uses (Ronkainen and et. al., 2021). The business activities contribute in improving
the people’s living standard. They fulfill the customers need by providing them product and
services. By this, outcome becomes more valuable than input used. Businesses also create
employment in the economy. Therefore, more business there are more manpower is required. For
instance, Hilton’s corporate social responsibility strategy is ‘Travel with purpose”. The
respective hotel performs this strategy to drive the responsible travel and tourism at worldwide.
They have committed to the double their investment in the social impact and cut environmental
impact in half by 2030.
Stakeholders