A Report: Analysis of Ethical Issues in Hospitality and Restaurant

This report provides a comprehensive analysis of ethical issues within the hospitality and restaurant (H&R) industry. It begins with an introduction outlining the significance of ethics in business, followed by a discussion of various ethical theories, including consequentialist and non-consequentialist approaches. The report then delves into two key ethical dilemmas: data protection breaches, exemplified by a Radisson Hotel Group case study, and sexual harassment in the workplace, illustrated by a Marriot Hotel case study. The report explores how ethical frameworks can be applied to analyze business conduct and create responses to ethical dilemmas. It also examines the importance of ethical decision-making in maintaining customer satisfaction and mitigating potential challenges faced by H&R businesses. The conclusion reinforces the significance of ethical practices in the industry. The report also includes recommendations and references.

Analysis of Ethical issues in
Hospitality and Restaurant
Word Count: 2110
Page Count: 9 (including front and table of content)

Table of Contents
INTRODUCTION...........................................................................................................................1
IMPORTANCE AND THEORIES……………..…………………………..…………………….2
Case study 1: Radisson hotel group (Privacy/personal data issue in hospitality)……………….4
Case study 2: Marriot Hotel (Sexual harassment issue in hospitality)…………….…………….4
RECOMMENDATION…………………………………………………………………………...5
CONCLUSION................................................................................................................................6
REFERENCES .................................................................................................................................
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INTRODUCTION-
This report covers the key ethical issues affecting the hospitality and restaurant (H&R) industry,
description of various types of theories and selecting an appropriate theory (Coppée, 2015).
Along with this, the critical analysis of ethical frameworks in order to analyse the business
conduct to create responses ethical dilemmas. Furthermore, application of expertise for solving
ethical dilemmas that an organization may face arising from the internal and external business
environment.
H&R has often face ethical dilemmas for which the ethical decisions have to be made (Reamer,
2013). Ethics are considered to be concepts of distinguishing between right or wrong actions and
moral or immoral acts. Business ethics is the concept of conducting business activities in a right
way and to deal with the controversial issues by applying policies and procedures (Noddings,
2013). A businessman providing goods or services should not engage in the unfair trade practices
such as promoting misleading advertisements, charging high price and cheating the customers
with weights and measures, etc. as it is against ethics. Further, the owner and all the staff
working in an organization should follow set of rules and principles suggesting code of conduct
while carrying a business.
H&R industry is an emerging industry in the UK and all over the world and contributes majorly
to the GDP of a country (Davies, 2017). These two industries provide different services which
compliment each other. Moreover, it offers diverse facilities ranging from providing
accommodation to tourist, seminar halls, banquet hall, restaurant etc.
Customer satisfaction is the priority for the hospitality industry, thus, it is necessary to behave in
an ethical way in order to reduce the challenges that hotels or restaurants may face in future.
Therefore, this report will highlight two major ethical issues in H&R such as breach of data
protection and sexual harassment on workplace.
Importance and Theories
Ethics in a business is indispensable to provide fairness in the society in which it
operates. It is a set of principle which is applied in day to day life as well as in an organizational
activities. In the words of Bailey and Burch, (2016), Business Ethics is defined as the study of
business policies and practices where issues such as insider trading, bribery, discrimination, CSR
etc. are addressed. There are various types of business ethics available which can be applied to
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an entity. It is divided into consequentialist theories and non-consequentialist theories (ibid). The
former is related with the focuses on consequences of a particular action. Non - consequentialist
theories focus on an intention of a person which is taken into account for making decision in a
particular situation.
H&R industry has huge number of challenges and ethical issues due to various internal
and external business environment. There comes a situation when a decision between right and
wrong has to be made to meet customer’s expectations and to increase their satisfaction level.
Further, the activities, hotels and restaurants conduct should use resources such as electricity,
funds, manpower, land, infrastructure etc. in an acceptable manner by complying with code of
ethics. Moreover, when an entity set up its business in a society, it is presumed that it has to
return the favour to the society by creating jobs for people living in a country. It is ethical as the
organization is under a duty to do acts which will create benefits for wider public (Karadag and
Hakan, 2012).
These various challenges affect companies operation, goodwill, profits and brand image
in a negative way. These may cause huge loss which may be in nature of financial or non-
financial (Shim and Yang, 2016). Hence, appropriate theories as mentioned below, may be
chosen to apply in order to make ethical decisions and overcome these challenges:
Consequentialist theories: These are based on the fact that moral duty for determining
the rightness or wrongness through the outcomes. Thus, potential consequences of an action
determine whether it is ethical or unethical (Zupan, 2017).
Utilitarianism: This theory is based on the ethical choice that will create benefits for the
greatest number. It is commonly used in businesses to ascertain the maximum outcomes by
accounting the cost and its benefits. Hospitality and Restaurant industry make contribution of
certain percentage of their profits to start schools in which underprivileged people can develop
their skills (Sheng, 2012). They can work in hotels for earning their livelihood. In this way,
employment can be created.
Egoism: The theory revolves around doing actions for self interest. The consequences of
decision or act considered as the ethical only when it benefits the doer. The word ego means I,
which is the base of this theory. Further, the intention is that one is morally obligated to avoid
being concerned for others if by doing so it does not for the route on interests. The Chosen
industry can establish an institution for various skills development where candidates can take
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admission by paying a very nominal fee (Kaptein, 2017). Once they complete the course, they
will be eligible enough to get jobs in different organizations.
Non-consequentialist theories: These consist duty based on consequences that are being
tested on the basis of act, system of rules, goodness and badness of the outcomes (Kalajtzidis,
2013). Furthermore, it consists of various theories which are as follows:
Deontology: This theory was given by Immanuel Kant (Everett, Pizarro and Crockett,
(2016), it focuses on doing acts by following certain set of principles and rules without
considering the outcomes. Hence, this theory requires every human to act in a way which
morally correct and all the decision should be independent of personal interests and desires.
Hotels and restaurants should provide good quality foods and services by avoiding practices like
adulteration, charging high price for bad or inferior quality products, embezzlement of money
employees, and many more similar acts (Reamer,2013).
Theory of justice: This theory is based on an equal distribution of benefits and burden in
a society. Further, a person has equal basic rights and liberties (Buchanan, 2017). There are
certain principles on which this theory is applied. Along with this, every citizen has right to vote,
freedom of speech and other civil rights such as to hold personal property etc., these are basic
rights which are given to all without any discrimination (Periera,2013). Furthermore, everyone
should get equal opportunities. Hospitality and Restaurant industry should provide offer chances
and opportunities to all the personal irrespective of their nationality, sex, religion, marital status,
disability etc.
Virtue theory: This theory is concerned with the role of character and virtue in moral
philosophy and not about good or bad consequences (Timmons, 2012). A person is considered
ethical who has ideal character traits. It is a natural tendency which grows with the time and can
be seen in the decisions one makes. The leaders in the hospitality and restaurant industry may set
example for rest of the organizations and new entrants to develop characters to help others and
advise correctly.
Case study 1: Radisson hotel group (Breach of data protection).
Data protection is a way in which the confidential information is protected. This involves
creation and storage of data. This is done by collecting and dissemination of data, technology
which is done by privacy. Every business has customer database which includes their personal
information. It is also known as data privacy. In the digital era, the number of cybercrime has
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increased which is the main can cause problem for the business. There are number of
disadvantages which should be considered in case of data protection. The personal information
should be kept private and transfer of personal information without the permission of owner will
be an offence. REF?
The hotel has been accused of breaching the regulation of General Data Protection Regulation
(GDPR). It is a large hotel chain operating in majority of developed countries. The confidential
information of some of its members in which their information other than their credit card,
passwords or previous or prospect reservations were exposed (
Warwick Ashford, Radisson Group case study. 2018).
Radisson did not provide the number of people affected from this. An investigation was
conducted, which disclosed that names, addresses, country of residence, email addresses etc.
were exposed. Further, the hotel claimed that third party may have accessed to all the personal
information (ibid).
The case was clearly unethical and the theories that can be applied are utilitarianism in which it
should have abide by GDPR compliances as it is compulsory for the hotel to protect information
affecting large number of people.
Virtue theory as the hotel is considered good and preferred by tourists. Hence, this makes it to
act with honesty and in a reliable way.
The last theory that could be applied deontological theory, under which it Radisson should have
followed GDPR regulations without thinking about its consequences. Furthermore, the security
systems should be improved so that no such incidents take place in future.
Case study 2: Marriot Hotel (Sexual harassment).
Sexual harassment refers to unwanted sexual advances or requests for sexual favours. It can be
verbally or physically. The incidents in such cases have increased in last few years. No one has
the right to do such kinds of acts. It is an offence. The average number of sexual harassment
cases is 85000 every which is UK. This is a huge number which should be reduced. This should
be stopped because it is unethical as well as illegal. REF?
The hotel was sued by a housekeeper, Leticia Vallejo. The petitioner said that a drunk male guest
groped her while she was doing her housekeeping work. This incident happened at hotel lobby
bathroom. Furthermore, he also offered $50 (Rebecca Greenfield, Marriott case study, 2019).
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When she narrated the incident to one of her supervisors, he responded in a funny way and took
that as a joke. Also, commented “he should have offered you $100.” She was working in the
hotel from last 18 years and has been a victim of such incidents on a regular basis. Also, she said
that, majority of female staff, especially housekeepers face such acts.
She filed a lawsuit in the high court, which passed the decision to sue Marriot after examining
various facts, issues and evidence.
The theories applicable here are theory of justice, in which all employees should be treated
equally. The supervisor should have taken appropriate actions in order to promote safety within
the organization. The comment was extremely vulgar and inappropriate.
Deontology theory suggest that actions should have been taken without thinking about the
results. The hotel's supervisor should have taken this matter to higher management for further
action.
Egoism theory can also be applied here, where the hotel, when came to know about the matter
should have reported the matter immediately to the police without being protective about its
reputation.
Hotels and restaurants often face ethical dilemma in the lifespan of their business activities. This
requires solution to maintain the efficiency of an entity and avoid any legal consequences.
Ethical dilemma refers to completely undesirable events to choose from. The cause for such
situations may be conflict of personal values and organizational goals, personal character or
many other similar reasons. It affects the organizations' profitability, competitiveness and
relationship with stakeholders. Hotels and restaurants should take a better decision in such
circumstances as ethical dilemma has great impact on conflicts going on and may increase such
disputes in future. For reaching an appropriate and effective decision, the above discussed
theories can be applied. Furthermore, ethical Framework can help developing set system through
which business can be analysed and solutions can be made to create responses to ethical
dilemmas. Ethical frameworks formed to help identifying rightness and wrongness of a specified
course of actions through which ethical decisions can be made. Ethical dilemmas are very
important to resolve quickly (Ethical Frameworks, 2017). It provides the ways through which
these are solved.
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CONCLUSION
From the above report, it can be concluded that ethics are very basic and important thing
not just for individual but also for business organizations. By following code of ethics, correct
decisions can be taken by distinguishing between right and wrong. Along with this, it provide an
uniformity and consistency in the policies and procedures followed in operational and other
activities of an entity. Hospitality and Restaurant industry is a growing market due to the reason
that people use the services provided by them. They have to maintain good hygiene, train their
employees and staff so that their knowledge can be updated, use the technologies that do not
produce harmful emission or damage its surroundings. Along with this, there are various theories
of ethics which can be applied for solving the conflicts and ethical dilemmas. However, each of
these have their individual application and concept, one must understand the underlying meaning
before selecting a theory. Furthermore, ethical frameworks should be used to make decisions that
can be considered ethically right so that these produce outcomes which will create huge benefits.
The advantages and influence that ethics have, can have significant impact on the profitability,
goodwill and brand positioning of the entity. Hence, ethics should be made a part of personal as
well as professional life.
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