The Hospitality Industry: Business Ethics and Responsible Management

Business Ethics and
Responsible
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1 A........................................................................................................................................3
Ethical issues and its importance................................................................................................3
Ethical issues faced by the company...........................................................................................3
Role of business in society..........................................................................................................4
Impact of ethical issues on stakeholders.....................................................................................4
Example of good and bad ethical practices.................................................................................5
Recommendations.......................................................................................................................6
REFERENCES ...............................................................................................................................6
PART B............................................................................................................................................6
Discuss any two theories of ethics with its advantages and disadvantages................................6
Recommendation.........................................................................................................................9
REFERENCES ...............................................................................................................................9
PART 2............................................................................................................................................9
Ethical Leadership Management.................................................................................................9
Reflection....................................................................................................................................9
CONCLUSION ...............................................................................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business ethics refer to the values and principles of company that it carries in conducting
the routine activities and that also support in making strong image of the company. Some of the
ethical considerations to be followed in the organization include human rights, labour rights,
anti-corruption, environment etc. It is crucial for the business organizations to follow the ethical
policies in the business so as to ensure positive and healthy working environment in the business.
Business ethics include implementation of appropriate business policies and practices. Some of
the issues to be considered in the business ethics include discrimination , social responsibility,
corporate governance, insider trading etc. It is the responsibility of management to ensure good
conduct of activities and business ethics in the organization (Etieyibo, 2022). The following
report will cover the case study of hospitality industry based on the practices of business ethics.
It will cover the contemporary issues in this industry regarding business ethics. The report will
cover the key ethical issues, role of business in society, impact of ethical issues on stakeholders.
Further, it will also cover the theories of ethics and ethical leadership management.
PART 1 A
Ethical issues and its importance
Ethics refer to the sense of society of living or conducting the day-to- day lives in right
manner and with carrying the best values. It should be done in the organization by establishing
principles, rules, values and proper code of conduct. As regards ethical issues, they occur when
any decision or activity faces disagreement or conflicts with oral principles or ethics of society.
But modern organizations face many issues of ethics such as Informed Consent, beneficence and
Respect for confidentiality and anonymity (Ford, 2022). Business ethics should be adopted by
organization to avoid the negative impact of external environment and to ensure better and
collaborative conduct of activities in the business.
Ethical issues faced by the company
Ethics in the organization create a positive and healthy working environment and make
the workplace a harmonious and better place to work for the employees to develop their interests
towards work to achieve more productivity for the achievement of desired objectives. Hospitality
industry also suffers from various ethical issues such as employee theft that is faced by almost
every business organization (Holland, Dowling and Brewster, 2022). Other ethical issues include

unethical leadership, hotel espionage, dishonest cleaning practices, sexual exploitation
particularly in hotel industry. So, hospitality companies should strive to mitigate these ethical
issues to maintain reputation in the market and to get competitive advantage in the industry.
Role of business in society
It is the responsibility of every business organization to produce goods keeping in view
the demands of general public to satisfy their needs. Companies should take CSR (Corporate
Social Responsibility) initiatives to ensure welfare of society and sustainability of environment as
well for the overall welfare of general public. It is an ethical business practice that helps in
adding value to the business. As regards hospitality industry, it is one of the fastest-growing
sectors in the world. It helps the society in creating job opportunities for restaurant, chef, cook,
cleaner, catering etc. to offer the services of restaurants, hotels, accommodation , clubs etc.
Businesses must follow the ethical practices in the organization so as to ensure better conduct of
activities (Grantham, 2022). They must strive to create positive impact of organization on society
to increase brand reputation by conducting social welfare programmes. For hospitality industry,
it is imperative to consider the ethical issues and strive to remove them by taking proper care of
cleanlinesses in the hotel premises. Some of the social impacts of hospitality industry include
social change, change in moral behaviour, changes in family structure and roles , tourist host
relationships etc. The greatest role of this industry in society is to create employment , improve
living standards of people , providing more tax revenues to the local governments as it
includes many sectors such as travelling and touring, accommodation, restaurants, clubs, other
food services etc. So businesses need to understand the social needs and should strive to fulfil
them to ensure its reputation in the market.
Impact of ethical issues on stakeholders
A strong ethical environment of business creates good interactions with the stakeholders
of organization. It helps in smooth functioning of business and ensures its long-term profitability.
Unethical practices in the organization have bad impact on organization and stakeholders as well.
It can lead to less productivity on part of employees and unethical behaviour can lead to
imposition of penalties, fines or financial losses can also be incurred due to this (Monfardini,
Quattrone and Ruggiero, 2022). In context with hospitality industry, the impact of ethical issues
on its stakeholder are explained below :