Managing Ethical Boundaries in Dorchester Hotel

The assignment content discusses the importance of ethics in leadership and management, particularly in the context of Dorchester hotel. It highlights instances where individuals may cross ethical boundaries for personal gain, emphasizing the need for effective leaders to design ruling strategies that prevent unfair practices.

Ethics, Leadership and
Decision Making

INTRODUCTION
Business organisations work with an aim to achieve a sustainable position in national and
international markets. It is not essential that successful leaders take decisions with proper ethical
considerations. Dorchester Hotel is renowned in luxury hospitality sector. This hotel has been
ruling this market with its indulgence in historic art and heritage culture. Ethics are building
blocks of any organisation's success. Decision making process is based on leader's thought
process and perceptions regarding ethics. The concept of sustainable business is spreading like
fire in business world. Ethics and effective leadership styles contribute to such business
developments. Managers and leaders are basic representatives of hospitality organisations. Their
decisions and actions play a crucial role in functioning of the company.
MAIN BODY
Hospitality sector is completely based on etiquettes and responsibilities of functioning
human resource. Trending consumer demands and requirements often force business institutions
to bring changes in their functioning styles. Hence, work related learning activities are regularly
planned and inculcated in organisational structure. Dorchester hotel has been in the highlights
due to increasing influence of such activities in its business operations. Training and
development program is a common source of learning for employees (Blanchard & Peale, 2011).
Academic skills are acquired by individuals during their student phase. Work based learning
gives a practical experience of real time problems and techniques involved in solving them.
Unlike the manufacturing sector, hospitality industry has to directly deal with customers. This
also implies that no negligence can be caused on side of the company (Jones and et. al. 2016).
Hence, regular training sessions are important for effective utilisation of human resource.
Workers have to develop themselves according to organisational requirements. They
often face certain ethical dilemmas which have to be effectively dealt by managers and
functioning leaders. Authenticity of working is preserved when ethical practises are considered.
Learning processes that are devised for every particular section must be in consideration with
ethics and morales of company and employees (Ford & Richardson, 2013). It gives a dimension
to thinking process for a particular situation and improves decision making with regards to
complete analysis of what is right or what is wrong. The Dorchester hotel maintains its
2

prestigious reputation in global markets by adopting ethical practises. Certain ethical dilemmas
faced by employees of the hotel are issues regarding accountability, integrity and trust.
Workers often consider certain improper activities as ethical due to low supervision. For
example, when guests forget their belongings in hotel room, the housekeeping staff tend to keep
these items with themselves. These members face a dilemma whether to take these belongings or
not. Their perseverance to such minor acts is different when compared to a manager's point of
view (Eon Rossouw & Van Vuuren, 2010). Housekeeping do not consider this act as stealing and
they think that it would be a waste if left just like that. Hence, they get inclined over the option of
taking leftovers with them. These actions can be contagious and critically bad for organisation's
reputation. Staff members tend to indulge in stealing activities not only in absence of customers
but also in their presence. Lack of supervision at ground level creates less accountability of
culprits (Mayer, Kuenzi & Greenbaum, 2010). Employees develop a mindset of “no big deal”
when they perform such activities of stealing guests belongings or food items from hotel pantry,
etc. Managers have to teach their subordinates about ethical values and their importance for
Dorchester.
Learning processes help in increasing productivity of human resource. Enhancement of
skills and talents is just not sufficient for overall development. Employees must be capable
enough to deal with all sorts of ethical dilemmas they get indulged in during their working
tenure. A major example of ethical dilemma is stated above. Here, workers have to take
appropriate decisions whether to take left overs with them or not. Managers play a vital role in
taking decisions during this dilemma. Their governing styles and amount of discipline are major
diverting factors (What Are Managerial Ethics?, 2017). Hence, the concept of managerial ethics
has been dominant in hospitality organisations. Basically, a code of conduct is generated in every
business organisations to deal with aforementioned situations and similar possibilities. It helps in
maintaining organisational behaviour in accordance to ethics and morales.
Managerial ethics of Dorchester hotel are based on three fundamental theories which are
deontology, utilitarianism and virtue ethics. Employees can take better decisions when such
theories are applied to the organisational structure of Hotel. According to deontological theory
for ethical practises, people follow set rules and regulations without giving any extra thinking
(Vaughn, 2015). This theory is helpful in maintaining discipline within the organisation.
3

Deontology helps in taking wiser decisions as greater relevance is given to duties and
obligations. Positive atmosphere is initiated with application of this theory (Graham, 2010). In
the above mentioned situation of ethical dilemma, deontology theory can play a positive role.
Individuals will be aware about their duties and responsibilities. They will not take consumer
belongings or hotel resources with them. Moreover, accountability of a person will be clearly
defined through adoption of this theory. Conflicting obligations that arise during execution of
duties is resolved efficiently with this approach. Managerial ethics are preserved with
deontological ethics (De George, 2011).
Ethical dilemmas can also be handled by using utilitarianism theory of ethics. It is based
on judging consequences or possible outcomes of an action. In Dorchester hotel, the
housekeeping person is facing a dilemma of taking consumer assets with him or not. Before
taking any decision, if the person weighs all possible outcomes and consequences related with
these outcomes, then better decisions can be taken. Utilitarianism theory is based on this process.
It helps the doer to judge situation with its proper knowledge of residues (Pies, Beckmann &
Hielscher, 2010). Although taking belongings with themselves won't cause much chaos in hotel
but the consequences can be brutal. When one person takes wrong decisions, then more
employees will be engaged in the same situation. This will turn out to be a deteriorating culture
for hotel. Hence, management has to enhance its learning sessions. Employees must be taught
utilitarianism ethical theory. This will help them make better judgements and take correct
decisions (Ciulla, 2014).
Ethical concepts are included in governing structure of Dorchester hotel so that
responsibilities at management level do not turn out to be a burden. Both deontology and
utilitarianism theories indulge an individual for running its thought process. Continuous question
and answer sessions lead to certain conclusions. The validity of these conclusions can be judged
with help of consequences. The dilemma to steal things or not can be efficiently handled by
housekeeper when he/she manages to judge all possible outcomes with adherence to his duties
(Northouse, 2011). If the person is breaking certain rules or laws of hotel by taking things with
him, then unethical decision is taken. Whereas, despite of collecting proper information about
proposed outcomes, the person still carries same behaviour and attitude the, he/she is a misfit for
the company. Ethical practises and learning systems help in overcoming these problems.
4

From both the described theoretical concepts, it is clearly communicated that sole
responsibility regarding good and bad decisions is shared between employee and management.
When leaders follow ethical paths and deliver morale values then maximum good happens (Cox,
2015). While on the other hand, ineffective leadership turns out to be a limiting agent in Hotel's
success. Rights and duties both have to go hand in hand. A person with legitimate rights cannot
practise dictatorship. There is a deep routed relationship between ethics, leadership and decision
making. Their interconnection helps in defining business dynamics. Considering manager of
Dorchester in a position where he has to take decisions regarding certain human resource
policies. This judgement can only be effective if all groups who will be affected by decision will
be satisfied along with better productivity of Hotel (Brown & Mitchell, 2010).
Ethics are like guidelines that help in devising a structure for behaviour and attitudes in a
company. The Dorchester Hotel is renowned for its architecture and prestigious culture. If ethics
are not valued then, the hotel will be subjected to corruption and unfair practises which will ruin
this reputation. Leaders adhere to defined paths and roads which complete organisation has to
follow (Ciulla, 2012). A good leader is a mutual product of ethical values and effective
leadership. Employee will be satisfied by current working strategies if none of them is subjected
to any sort of unfair judgement. This particular factor of a healthy working environment helps in
increasing productivity levels to the highest. It brings in great public support for leaders.
However, decisions that are being taken by organisation head will have deep impact.
Internal business environment is the building block of a company (Brownell, 2010). It consists of
employees, shareholders, partners, suppliers, etc. imbalance in relationship with any these
components can have adverse effects on company's performance standards. Hence, certain
policies and regulations are formed to keep a balance. Leaders have to take care that authenticity
of corporate culture of Dorchester is preserved. There are instances when a leader can take
unethical decisions. When profit orientation is maximum and morale values diminish, then
leaders tend to take such decisions. It leads to corruption within internal governance of hotel. On
the contrary, wrong interpretations and personal benefits become a centralising factor for
unethical decisions (Bishop, 2013). Hence, type of leadership and correct choice of ethics is
basis of appropriate agreements.
5

Consumers are widely affected due to imbalance in all three components. Basically,
ethics and leadership are two elements of decision making process. Good leaders who think
about benefit of the organisation first always follow ethical path. They do not get tempted by
personal benefits. Hence, this leads to better decision making process. Proper judgement
regarding consequences has to be made by management. Ground staff follows instructions which
are given by these management people. Ethical considerations are significant part of decision
making (Lloyd & Mey, 2010). When a leader ignores possible consequences, then ethical issues
may arise which can lead to ethical dilemmas. When comparing different leadership styles,
transformational leadership is dominant for good decision making with ethical governance. It
reduces the probability of losses.
Ethics are often confused by personal values or principles. This confusion also leads to
incorrect decision making. Leaders must be aware about hairline difference between personal
values and standards of ethics. Corporate governance can only be valid when all individuals
working in an organisation are examined and monitored under equal circumstances (What Are
Managerial Ethics?, 2017). Moreover, actions of leaders and managers are based on these set
regulations which are devised with ethical considerations. Boundaries are made with help of
ethics and leadership. Individuals are guided to follow certain path within the given boundaries
which cannot be compromised. On the contrary, these boundaries can be barriers to individual
success if not properly managed. Hence, balanced relationship between ethics and leadership
leads to good decision making process.
Leaders are like path finders and developers for every organisation (Brooks, 2013). In
case of Dorchester hotel, these can be mangers, senior management authorities or even owners of
he hotel. Different levels require a different leader. It is not essential that managers may be good
leaders. They are bound to instruct their subordinates with certain functions. This bondage can be
changed into ethical responsibility when a leader comes into action. The results of decisions
made by leaders define their coherence with industrial ethics and morales. Generally, it is not so
easy to fight ethical dilemmas when weak leadership is functioning. According to Aristotle's
ideas about business decisions, ethics justify managerial attributes and become a source of
charity with generosity. Duties become a medium for ethical governance. Leaders adopt a variety
of methods and techniques to justify their decisions with ethical standards (Ciulla, 2014).
6

Organisational decisions are based on various factorial evaluations. Several analytical
judgements have to be formulated for taking an effective decisions. Firstly, complexity is
measured regarding ethical choices. Employees working with and under a leader may or may not
be satisfied with working atmosphere. Hence, it becomes necessary to acknowledge complex
choices that arise with a situation or action. Leaders face this complexity with full integrity and
adopt a calculative approach for the respective situation (Northouse, 2011). Organisation
constitution which lays foundational ethics and law has to be followed by each and every
functioning individual. It doesn't imply that daily routine activities are excluded from this
governance. Sustainable development in business can only be attained when continuous and
legitimate efforts are made. From minute to major actions; all have to be guided by ethics. Even
conversation within the hotel must be abiding ethical laws and regulations. Leaders focus on
providing equal respect and dignity through their decisions for Dorchester.
Authenticity of a decision is lost when leaders allow excuses. Breach of law happens
when excuses are generated frequently without any relevance to situation. The correctness of
decision is no more valid when people find some other way to practise illegitimacy (Brown &
Mitchell, 2010). Hence, it becomes viable for every leader to avoid exemption of individuals
from meeting ethical expectations. In this way, strict and disciplinary environment will be
created within Hotel. Even customers must not be given any freedom to break laws. Leaders
make sure that all internal and external stakeholders are subjected to punishment in case of
breach of law. Moreover, they also ensure monitoring of hotel activities for deep routed
investigations. Opinions form a major part of decision making process. Current directions of
strategy change when a new opinion is kept in-front of decision takers (Eon Rossouw & Van
Vuuren, 2010). Leaders imbibe influential opinions or views when crucial steps are to be taken
for benefit of organisation. Dorchester cannot afford any sort of negligence in decision making.
Employees are largely affected by interpersonal relations. Illegal trading practises ruin
employee relationships. They tend to be influenced by negativity which results in brutal
competition. Breach of trust is the worst outcome of such corporate cultures (Jones and et. al.
2016). Only ethical decisions help in restoring trust and integrity of Dorchester. In order to
safeguard organisational decisions, leaders do not entertain negative culture in their working
environment. This creates respect in eyes of other employees and manages implementation
7

process of proposed judgement effectively. However, a demand of effective communication is
felt to bridge gap of trust. When a person can deploy his/her viewpoints or sufferings to his
senior authorities and that too without any hesitation then, effective communication is initiated.
Dorchester and all other hospitality industry organisations must have good communication
channels. This will ensure better productivity and employee relations within the organisation.
Verdict of a leader has to be strongly followed by his subordinates. Be it a team or entire
organisation, ethical decisions cannot be disrespected (Brownell, 2010). In order to prove
maximum coherence with ethics and morales, leaders make sure that all laws and policies are
followed. In comparison with leader's beliefs and conduct, organisational rules are more
important. When a leader's influence on consumers and other stakeholders is positive then they
are said to be ethical (Ciulla, 2012). These can be observed by increasing consumer share or
collection of positive feedbacks. Satisfaction levels of customers depicts a lot of information
regarding leader's decisions. However, it is necessary for every organisation to celebrate ethical
movements which are positively received by other members of the company.
Mistakes is something which can be committed by any person. Judgements go wrong
when certain flaws or loop holes exist in the strategy. Evaluation and monitoring processes are
triggered after detection of flaws. Leaders take the responsibility of their mistakes when
considering ethical point of view. According set standards for conduct and behaviour of a person
in organisation, self realisation of mistakes and acceptance power is important. Smooth
functioning is guaranteed when people do not play blame games (Lloyd & Mey, 2010). Senior
management and board members take responsibility of strategy failures. They come up with
probable solutions which can be applied to get good results. This doesn't cause any sort of
inequality or biasses in minds of employees. However, accountability options must always be
available in ethical governance. It helps in detecting actual person who is responsible for wrong
commitments (Ford & Richardson, 2013).
For attaining sustainable position in both national and international markets, ethical
systems have to be followed. Cultural acceptance to meeting consumer expectations, elements
like these have to be included in the ethical systems of Dorchester. Leader's decisions are based
dominantly on these components of organisational structure. The coherence of verdict of leader
is supported by ethics when the legalised system is strategically followed (Brooks, 2013).
8

Integrity and trustworthiness are two outcomes which come with ethical judgements. Dilemmas
regarding various micro issues are easily resolved with help of morale values and principles.
These components cannot be cultivated unless practised. For leaders to be successful in leading
Dorchester with help of ethical governance, learning systems must be devised. This will help
employees understand implications and applications of ethical values in their daily routine both
at work and in personal life.
Be it middle manager, their subordinates, or a senior level authority, ethics have to be
followed by all of them without considering any sort of excuses or personal benefits (Blanchard
& Peale, 2011). These guiding principles help in making better judgements which have a long
lasting effect on both consumers and other stakeholders. Despite of considering them as burden,
if leaders formulate certain strategies which tends to engage human resource in more humane
activities, then Dorchester will soon achieve sustainability in global markets which directly
ensures a competitive advantage.
CONCLUSION
The responsibility of a leader relies in corporate social governance with effective decision
making. When both these attributes are portrayed by an individual the, he/she is considered to be
a good leader. Through this essay, one can easily understand techniques or concepts which can
be applied for overcoming an ethical dilemma. Although no hotel staff has any right over
customer undertakings, but there are instances when they will cross their ethical boundaries and
break laws for personal benefits. It is duty of managers and effective leaders to take proper
decisions in designing ruling strategies. This will help in controlling unfair practises in
Dorchester hotel.
9

REFERENCES
Books and Journals
Bishop, W. H. (2013). The role of ethics in 21st century organizations. Journal of Business
Ethics, 118(3), 635-637.
Blanchard, K., & Peale, N. V. (2011). The power of ethical management. Random House.
Brown, M. E., & Mitchell, M. S. (2010). Ethical and unethical leadership: Exploring new
avenues for future research. Business Ethics Quarterly, 20(04), 583-616.
Brownell, J. (2010). Leadership in the service of hospitality. Cornell Hospitality Quarterly,
51(3), 363-378.
Ciulla, J. B. (2012). Ethics effectiveness: the nature of good leadership.
Ciulla, J. B. (Ed.). (2014). Ethics, the heart of leadership. ABC-CLIO.
Cox, R. W. (2015). Ethics and integrity in public administration: concepts and cases. Routledge.
De George, R. T. (2011). Business ethics. Pearson Education India.
Eon Rossouw, D., & Van Vuuren, L. (2010). Business ethics. Oxford University Press, 2010.
Ford, R. C., & Richardson, W. D. (2013). Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
Graham, G. (2010). Theories of ethics: An introduction to moral philosophy with a selection of
classic readings.
Jones, P. and et. al. (2016). Sustainability in the hospitality industry: Some personal reflections
on corporate challenges and research agendas. International Journal of Contemporary
Hospitality Management, 28(1), 36-67.
Lloyd, H. R., & Mey, M. R. (2010). An ethics model to develop an ethical organisation: original
research. SA Journal of Human Resource Management, 8(1), 1-12.
Mayer, D. M., Kuenzi, M., & Greenbaum, R. L. (2010). Examining the link between ethical
leadership and employee misconduct: The mediating role of ethical climate. Journal of
Business Ethics, 95, 7-16.
Northouse, P. G. (2011). Introduction to leadership: Concepts and practice. Sage.
Pies, I., Beckmann, M., & Hielscher, S. (2010). Value creation, management competencies, and
global corporate citizenship: An ordonomic approach to business ethics in the age of
globalization. Journal of Business Ethics, 94(2), 265-278.
Vaughn, L. (2015). Doing ethics: Moral reasoning and contemporary issues. WW Norton &
Company.
Online
Brooks, C., 2013. 7 Steps to Ethical Leadership. [Online]. Available Through:
<http://www.businessnewsdaily.com/5537-how-to-be-ethical-leader.html>. [Accessed on
23rd January, 2017].
What Are Managerial Ethics?. 2017. [Online]. Available
Through:<http://smallbusiness.chron.com/managerial-ethics-36425.html>. [Accessed on
23rd January, 2017].
10