Responsible Business Management

This study material delves into the concept of responsible business management. It covers topics such as stakeholder analysis, culture and core values, and main issues connected with fairness and duty of care. Gain insights into the importance of corporate social responsibility and its impact on the hospitality industry.

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Responsible Business Management
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3/27/2019
Table of Contents

RESPONSIBLE BUSINESS MANAGEMENT 1
Introduction......................................................................................................................................2
Stakeholder Analysis.......................................................................................................................3
Culture and Core Values of Business..............................................................................................5
Core Values..................................................................................................................................5
Importance of Core Values..........................................................................................................6
Norms of Behavior.......................................................................................................................7
Kind of Culture that encourage values and norms.......................................................................7
Main Issues Connected with Fairness and Duty of Care.................................................................9
Relevance of Such Issues in Current Business..........................................................................11
Recommendation of Such Issues...................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

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Introduction
In the recent scenario, the business is covered with the competitive market as they are challenged
with a novel set of non-economics connected encounters. To endure in the competitive market,
the company needs to bridge the economic as well as social systems. It has been analyzed that
maximizing the shareholders play a vital role however, no extended an adequate ailment for
monetary affluence (Moravcikova, Stefanikova and Rypakova, 2015). Notwithstanding the
notion of CSR address such issues, an exact implication of CSR as well as new recital extent that
called corporate social performance that prerequisite to be combined to detention the
performance of the business in the communal monarchy as well as also to be more exact in
thinking about corporate social responsibility (Carroll, A.B. and Shabana, 2010). Corporate
social responsibility is one of the commitments done by the business to behave ethically as well
as contribute towards the economic development while enhancing the quality of life of the
workforce as well as their families with the local community and society at large scale.
Stakeholders referred to as any identifiable group or any other individuals who can affect the
achievement of an objective of an organization or who are affected by the achievement of an
objective of the organization. Moreover, business ethics also play an essential role in the success
of the business. There has been over the last three decades that the individuals growing their
emphasis on the companies to conduct the ethically sound behavior that is majorly governed by
an ethical code of conduct that is prescribed by the corporate policy (Schafer, 2016). Corporate
Social Responsibility is supporting in the overriding of the firms in the hospitality industry. The
name as well as goodwill that the organization carries to the public has always proved to an asset
that is valuable. The hospitality industry is facing certain challenges in managing their business

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due to the reason most of the hotels in such industry ignore CSR and ethics in their business at a
greater level (Frynas and Stephens, 2015)
In the following part, there will be a detailed discussion on the organizational culture adopted by
hotels in the hospitality industry and the challenges faced by them in managing such a culture in
the organization.
Stakeholder Analysis
The stakeholders are an important part of the organization. The stakeholders are all those persons
that have been affected by the company and the workings. The stakeholders are those entire
people such as customers, employees, government, media, suppliers, owners, community,
competitors and vendors. The stakeholder theory of corporate governance has analyzed the
importance of stakeholders in the organization. The organization to provide good corporate
governance must give preference to their stakeholders. It is required for a healthy organization
that they must respect their stakeholders.

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Employees: In the hospitality industry the employees are ignored by the hotels. They are paid
truncated wages that are nearly down to the level of the permissible minimum pays and exploited
by the hotels at a greater level. However, some of them address the interest over an amount of
training and expansion programs. Therefore, corporate social responsibility determinations only
moderately fulfill the benefits of the personnel as a stakeholders group.
Consumers: Most of the hotels take the consumers as a second priority. The interest of such
stakeholders includes affordable as well as healthful food choices. The business is extensively
analyzed for the vigor possessions of its foods. In such regard, the company corporate social
responsibility exertions only partly fulfill the interest of the consumer as a major investor group.
Investors: In the hotel industry, the hotels strive to satisfy the anxieties of the stakeholders as a
major investor group in the corporate. The interest of such investors includes effectiveness as
well as rising incomes. The industry has a stumpy but steady development rate. The corporate
social responsibility in the hospitality industry efforts effectively satisfies the interests of the
investors as a major stakeholder group.
Communities: most of the hotels ignore communities as one of its main stakeholder’s groups.
The interest of such stakeholders includes community development support and environmental
programs. Therefore, the hotels ignore concern towards the protection of the environment. They
have not7 taken any steps towards the protection of the environment or any sustainable steps in
their business.
Government: The government has an active role in the hospitality industry. However, in the
recent scenario, most of the hotels adopted unethical mean to grow in the market. They save their
taxes by adopting unethical mean that affected the overall country at a greater level. In such a

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situation, the corporate social responsibility is totally ignored in such scenario at a greater level
(Whetstone, 2017).
Culture and Core Values of Business
Core Values
The core values that are important for the business in the hospitality industry are explained in the
below points:
 Integrity
It is the process through which the hotels promote integrity through their respect towards the
individual, communication of expectations, consistency as well as fairness in our actions. Such
integrity permeates through all they can do. Building the entire business on the foundation of
honesty as well as integrity goes a long way into building a trusting and strong relationship with
consumers, stakeholders as well as consumers.
 Respect
The company cannot grow in the market in the absence of dedicated employees. The committed
employees are the backbone of the entire company. In the hostility industry, there is certain
responsibility of the hotels towards their employees which include the core value of respecting
the employees. Such likely management will have low employee turnover (Razmerita, Kirchner,
and Nielsen, 2016).
 Innovation

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Innovation plays a vital role as a core value in the company. They can foster the culture here the
independence of the thoughts, as well as personal strengths, are majorly valued, where the team
members are also recognized for their creativity, motivation, the tenacity with great passion. It
provides a great platform for the employees to come up with the innovative ideas that can
translate into successful products for the hotels in an effective manner.
 Teamwork
It is one of the keys to the growth and success of the hospitality industry. The employees will
work as a team at all levels, recognizing each team player contributes to the success of their team
by their competence, determination, commitments as well as preparation (Froese, Kim and Eng,
2016).
Importance of Core Values
 Such core value will help the hotels in the hospitality industry in the process of decision
making. For examples, with the help of such core values, the hotels cam able to set their
level of services that they need to provide and what they need to eliminate.
 It will help in educating the clients as well as potential consumers about what is the
concept of hotel and help in clarifying the identity of the company in an effective manner.
 By identifying the core values, the hotels can able to adopt the effective recruitment
process in which they can able to understand what is the core requirement of the hotels
according to their core values in an effective and efficient manner (Chang and Lin, 2015).
 Effective core values also make communication between the management easier. They
can able to coordinate with each other in an effective as well as efficient manner.

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Norms of Behavior
The norms of behavior that is consistent with such core values are explained in below points:
Code of Conduct: It is the processes in which the employees will get know which behavior are
and are not permitted by the hotels in the hospitality industry. The employees who violated the
standards will face the consequences for the most serious violation.
Interpersonal Communication: They can make the core values through interpersonal
communication with the employees. They will communicate through technologies which include
a text message, cell phones, emails as well as post on social media (Toytari, Rajala and
Alejandro, 2015).
Administrative Behavior: the managers in hotels have many expectations that are governing
their use of authority. The manager will not give any reference to the individual’s fir unfair
reasons such as employing friends or relatives. Every employee is expected to be honest in
communications regarding the employees as well as delivering the information to the consumers.
Embed the Values: Embed the values in the behavior as well as decision making of the hotel in
the hospitality industry in an effective manner and making sure that such values ate constantly
reinforced (Langevoort, 2018).
Kind of Culture that encourage values and norms
Culture plays a prominent role in encouraging values and norms in the hotels in an effective
manner. It helps in providing a flexible working environment for the employees and other
stakeholders. Such cultures are explained in the below points:

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 Promote a culture of dialogue and abilities to transform conflicts: it is one of the
constructively requires working on developing the peace knowledge, attitude and skills
such as:
Knowledge
 Knowledge of languages
 Knowledge of social, political, cultural as well as the economic context of the business
and the background of the team members
Skills
 Honesty
 Responsibility
 Respect for the opinion of others
Attitudes
 Conflict Analysis
 Critical Analysis
 Leadership ad Participatory management
 Diversity: Different people have a different role as well as responsibilities in the hotels
that can be shaped or changed during the situation of tension as well as conflict. By
mainstreaming the diversity, the hotel will be more likely to contribute to equity,
enhanced the spirit of team members as well as the sustainability of hotel in an effective
manner (De Cremer and Vandekerckhove, 2017).

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 Safety and Responsibility: The core values and norms that will be set by the hotel will
create the environment of safety and responsibility. The individuals would able to take
responsibility in an effective manner by understating the core value of the hotels and able
to generate safety environment in the workplace in an effective and efficient manner
(Ramirez, 2018).
Main Issues Connected with Fairness and Duty of Care
In a business environment, ethics play an essential role. Ethics work on different proportion in
the world of business. in the hospitality industry at the global market, the hotels have adopted
ethical as well as unethical mean or their success. At a certain extent, they have ignored the
responsibility towards the environment at a greater level (Haugh, 2017). Most of the companies
in such industry have set up certain policies and rules for maintaining ethical behavior in their
work, however. The management of the company has adopted unethical behavior in their work to
achieve growth and success in their business. They have not set of rules that can control the
behavior of individuals that are working in the hotel. It forces individuals to adopt unethical
behavior within the organization (Kooij, 2015). The unethical behaviors are explained in below
points:
 Abusive Behavior: the hotel industry is filled with general managers as well as other
employers who use their standing as well as the power to mishandle or disregard others.
Such behavior represents very unprofessionally in the workplace. The manager supports
partial behavior towards the employees that lead to creating a level of dissatisfaction
among the employees and other stakeholders.

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 The hiring of illegal immigrants: For hiring low salary employees the management of
the company hired illegal immigrants in their company that represent unethical behavior
in their workplace (Consiglio et al., 2016).
 Inflexible working environment: the working environment in the hotel is inflexible due
to the reason the timing, as well as a shift of the employees, are not fixed. They are
working more than their required hours that lead to dissatisfaction among the staffs
 Not concentrated on eco products: To control over the cost of the company, the hotels
used the products that harm the environment such as they use plastic bags in their hotels
for delivery of food Moreover, they overuse the fuel and does not focus on protecting the
environment (Bakker and Schaufeli, 2015).
 The absence of creativity and innovation: the company lack in the process of
innovation or any creativity that can be adopted in their business. They have still adopted
traditional strategies in their business that forces them to resist themselves towards the
door of innovation at any time. They have a low formalization process as well as high
centralization process that creates a rigid working environment in their business (Gisbert-
Trejo et al., 2018)
 Wages and Working Conditions: the company has ignored the limited wages system
while hiring their employees. They paid the minimum amount and exploit more than the
payment done to them. Moreover, they have not adopted any safety measures and
policies to protect employees from hazardous activities. It represents that the company
has provided a poor working environment to their employees that forces the employees to
move to another job that indirectly affected the overall performance of the company at a
greater level (Lian et al., 2016).

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 Environmental Impacts and Risks: Most of the hotels in the hospitality industry have
not adopted any sustainable mean to protect the interest of society. Most of the hotels
have only motive to earn a maximum profit by ignoring sustainable activities or any other
CSR activities that increase the cost to them. Moreover, the company has not taken any
initiatives to protect the ecosystem of the country that represents the casual attitude of the
company towards society at a greater level (Cooper, 2017).
Relevance of Such Issues in Current Business
The issues that mostly faced by the hospitality industry has a direct link with the business. Such
relevance is explained in the below points:
 Such issues created a great impact on the overall performance of the company at a greater
level. By adopting unethical behavior in the organization, the management of the hotel
ignores their role and responsibilities that increase the level of dissatisfaction among the
consumers and other stakeholders that affect the overall performance of the company at a
greater level. They need to concentrate on unethical behavior of the company and need to
take steps to prevent such activities (Andriof and Waddock, 2017).
 The abusive behavior of the employees or management of the company greatly impacts
on the goodwill of the hotel at a greater level. The increase in the level of dissatisfaction
greatly affected the whole hospitality industry at a greater level. Therefore, they need to
prepare a strong code of conduct and need to create effective core values to control over
such an issue (Connor etal., 2018).
 In the hospitality industry, most of the hotels ignore sustainable mean for achieving
growth in the market. They ignore the environmental impact and use such products that

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affect the overall environment at a greater level. The hotels also contribute to creating
environment pollute that made them unsustainable business at a greater level. Therefore,
they need to take sustainable steps and should use the organic product to protect the
environment in an effective manner (Heslinga, Groote and Vanclay, 2017).
Recommendation of Such Issues
 Change management Initiatives and business transformation program: the hotels in the
hospitality industry can wrap their ethical climate by pushing too much change from the
top, too quickly as well as too frequently. Some of the activities include inherent conflicts
of interest; others simply caused leaders to have to act counter to their values. Many
leaders felt poorly prepared for the dilemmas they faced and felt compelled to take the
decision they later regretted.
 Make Ethics decision in groups and make decision public, as appropriate: They need to
take initiatives towards the ethical decision in their workplace that motivates other
employees towards an ethical decision.
 Develop Ethical Standards: The Company needs to set ethical standards in the workplace.
They should eliminate any confusion as well as ambiguity about the ethical practices of
the company and keep everyone on the same page.
 Standards of Business Conduct: They should draft around one central theme which
includes “trust”. The company emphasizes that trust play an essential role in its
operations that include governments, employees, consumer, investors as well as
representatives. The code of conduct should be concise, visually appealing, well
organized. It helps the company to maintain discipline and a healthy working
environment in the hotel.

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 The code of conduct should be documented that details an expectation of the organization
and requires of their vendors, suppliers as well as partners. It will be written by the
executive team and developed by a cross-section of the employees from various functions
or designed by the development of the organization, marketing, corporate
communication, the staff of human resources that are depending on the organization and
its internal mode of operation as well as a management style. The clauses that should be
cover in the code of conduct is a legal tool, general clauses and other information such as
illegal activities, drinking, foul languages, harassment that made the employees
disciplined in the hotels in an effective and efficient manner.
 The hotel should provide the feedback form for the consumers and other stakeholders in
which they can share their views in an effective manner. They can organize a meeting
with their stakeholders and provide information for running of the business to get know
about the code of conduct they follow in their business that would help the company to
enhance the confidence level of stakeholders in an effective and efficient manner.
Therefore, the meeting is one of the efficient platforms through which the necessary
stakeholders can able to understand and aware of the code of conduct of hotels in an
effective and efficient manner.
 The queries that will be asked by the stakeholders will be solved by the higher authority
in a proper manner that will make them feel more satisfied. All individuals will be given
a chance to raise their query after the meeting to make them understand the concept of a
code of conduct that would help them to involve in the business in an effective manner.
 The employees will also be provided a proper platform in which they can able to share
the issues that they face during their working hours and proper with effective decision

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making will be done according to the analysis of the issues that face by the employees of
the hotel. It encourages them to report their issues in an effective and efficient manner.
Conclusion
From the above analysis, it can be concluded that corporate social responsibilities have an
essential role in the organization. Core values are one of the effective manners to grow the
business in a sustainable manner. Most of the companies have their core values that enhanced
their sustainable business in an effective and efficient manner. The core values include integrity,
respect, and teamwork and so on. In the recent scenario, most of the organization has ignored
their responsibilities towards the society that affect the overall environment at a greater level.
They have an inflexible environment that forces the employees to switch to another company. In
the hospitality industry, the company has also adopted unethical mean to achieve growth and
success in the competitive market. They have no sustainable footprints in the market that would
create a loss to the company. Moreover, the hotels also do not provide hygiene environment to
their employees without any security that may cause loss of life of the employees. The working
environment of the hotels is not very effective that need to be concentrated by them. It represents
that the hotels have ignored CSR activities in their business that may affect the overall
performance of the hospitality industry at a greater level. Therefore, they should take sustainable
steps or footprints to enjoy a competitive advantage in the competitive market at a greater level.
The hotels need to prepare a code of conduct in their business to adopt ethical mean in their
business. Moreover, they should communicate with their stakeholders to make them understand
the code of conduct of the company that would help them to enhance their level of confidence
towards the company. Furthermore, the employees should be provided an effective platform for

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sharing their issues or any other challenges that made them confident towards the business in an
effective and efficient manner.

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