Ethical Considerations in Luxury Hotel Business: A Detailed Report

This report delves into the ethical considerations within the luxury hotel industry. It begins with an introduction to business ethics and its relevance to luxury hotels, emphasizing the importance of ethical practices for sustainability and profitability. The discussion section explores various ethical issues, including corruption, fraud, overbooking, and misrepresentation of services, as well as the impact of corporate social responsibility (CSR) initiatives. The analysis focuses on ethical behavior measurement, data collection methods, and the current scenario of the luxury hotel industry, highlighting challenges related to security, safety, cleanliness, and environmental impact. The evaluation uses questionnaires to assess ethical values and code of conduct within the industry. Findings emphasize the significance of integrity, honesty, and trustworthiness. The report concludes by summarizing key points and reiterating the importance of ethical principles for the success of luxury hotels. References support the research.

Position paper
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Contents
INTRODUCTION...........................................................................................................................3
DISCUSSION..................................................................................................................................4
ANALYSIS......................................................................................................................................6
EVALUATE....................................................................................................................................7
FINDING.........................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Ethics is a form of applied with professional ethics which examine principles, moral and
problem that arise in business environment. It applies to all aspects of luxury hotel business
conduct which relevant to the entire organizations. Ethics will support for luxury hotel to sustain
their existence and also compete, make profit. Enterprise ethics mainly refers to the
contemporary luxury hotel standards, principles, norms and set of values which govern actions
and behaviour of people. There are various type of ethical issues identify within organization. It
mainly involves corruption, fraud which are major problem for business owner. In luxury hotel,
manager also faced the problem or issue that will create conundrums. Furthermore, the luxury
hotels have conducted the public action which are suitable with their own values and providing
the better services to society.
Nowadays, ethics is now becoming used and important than before in attracting potential
customer beside quality product, pricing and services. Hotel industry has got a tremendous boon
in recently. It is related to the industry and increase growth rate in global world. However, it
automatically thriving economy and increase enterprise opportunities in global world.
Sometimes, it have acted as boon for Indian hospitality industry (Bharadwaj and Shyj, 2020).
There is incredible India destination campaign and recently launched many other type of
campaign. It help for increasing growth of international as well as domestic tourism. Currently,
government has taken serious steps to the hospitality industry which have benefited for hotels in
western country. It may include the abolishment of inland air travel tax of 10% and also reduce
the duty on aviation turbine fuel to 7%.
Corporate social responsibility is based the concept that mainly focused on the contribution
to societal goals. In this way, it engaged with the people that supporting volunteering and ethical
oriented practices. In the luxury hotel, generally business owner adopt CSR which provide equal
facilities and service to customer. Afterwards, it has found that there are lot of changes identified
within hotel industry. In this way, it has found that demand is going to exceed supply by at least
90% over next years. Luxury hotels in different cities allot the similar type of rooms, but more
than once a day to find multiple guests. After failing hotel sales which are likely to grow between
2010-2015 by 20% because of high occupancies (Diallo, Mouelhi and Schill, 2020). To
overcome challenges by implementing ethical principles that help for supporting hotel industry
while adding best room quality and currently in different stages of development as well as
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planning. It is also setting to get hosting the various events. Government has approved 400 hotel
project which are nearly half of luxury range. In the future, the hotel industry is looking
extremely, expected that budget and mid-market hotel segment handle huge amount of industry
expansion. On the other hand, luxury segment that will continue to perform the different task.
CameliaIoana, Valentina-Alexandra and Larisa-Andreea (2019) In year 2010, it has
continuously recover with foreign tourist arrivals at 6.0million registered growth of 93%. It has
been exchanged that earning from other tourism in year of 2012 witnessed a growth of 19% over
previous years. On the other hand, it has identified that domestic hotel plays important role in
overall world. It also increased the domestic tourist visit increase to 700 million in 2010 as
compared to 563.0million in 2009 (Kapferer and Michaut-Denizeau, 2020). It should be
maintained the availability of better good quality of service which automatically boosting growth
of hotel industry in global marketplace.
DISCUSSION
Feng, Tong and Zhu (2020) The ethical and social responsibility actions have impacted on
the hospitality industry and also displayed an improvement. The Luxury hotel enterprise have
been effected in the same way as well as. The ethical issue found within luxury hotel such as
finished the natural reserves and perform actions such as negative project effects on the
environmental condition and situation. It most situations, it can be representing the rightness of
enterprise in having interest towards ethical concept within hospitality industry. Despite, hotels
have conducted different kind of project, being aware about the problem or issue. (Pham,
Nguyen and Luse, 2018) As per found that many hotel business did not use proper information
about social responsibility on their website. Therefore, visitors emphasized that hotel industry
should be given place to determine the vision, mission and environment. It became very sensitive
to the social responsibilities as well as ethical.
The ethical issue has been identified that there may be conflict between the hotel’s
requirement to sell their facilities, services and practices of booking. It doesn’t exit at same time.
Uncertainty occurs where overbooking create financial issues which directly effects on the
business revenue. The ethical issue is that availability of room, service become misrepresented to
guest.
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In additional, Hotel industry have been taken different action in accordance with ethical
principles. It also observed that there are total 50% of luxury hotel focus on the social
responsibilities and also maintain their own ethical consideration (Imran, Jalees and Alam,
2018). However, it has been significantly analyse the large number of enterprise, which are tends
to participate in luxury hotel business development.
Peng and Chen (2019) On the other hand, it also said that social responsibility will gain
more importance within hotel enterprises. The luxury hotels are among the enterprise that mainly
used the information technology. It is actively throughout global promotional action as well as
advertising activities. Many luxury hotels have especially wanted to advantage or benefits from
the internet which provide with creating their own significant internet services (Sharm aand
Mishra, 2018). Furthermore, it is also creating their own website which actively attracted large
number of potential customers. The luxury hotel has needed great amount to assists, reaching
towards potential client in quickly manner.
As per Ismail (2020) honesty, trust worthy are important concept that mainly used within
luxury hotel industry. It has developed the contact with client easier and faster manner. In order
to inform about the demand as well as expectation of client. Sometimes, it also providing the
information about the facilities and services. These are important components of ethical
behaviour and principles to establish good relationship with potential customer. It is important
for hotels industry that perform different management task to achieve significant goals and
objectives.
Ismail (2019) argue that many potential consumer have preferred to make booking through
online medium instead of using other traditional media. The reason is that when luxury hotel
mainly focused on the ethical and moral values. They always supporting for provide the better
services. In this way, it has developed the loyalty between customer and management. The
potential client have been able to get data about particular product as well as service. Business
owner should consider ethical principle while setting price as per demand so that client can
compare the price of particular product and service of another enterprises.
The concept of ethical behavioural and principles which take place on business activities. In
order to maintain luxury hotel ethics in proper manner. It is not only contain what different
service and product available but also use essential data, maintain policy (Kapferer and Michaut-
Denizeau, 2020) said that examined the of luxury hotel should be maintain the strong moral
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integrity and also believe on the rules, regulations so that they are mainly supporting the business
to increase profitability in global marketplace. In India, luxury hotel can easily fulfilling the
requirement and need of customers. For several years, the scope of hotel industry in different
cities which has been carried. As per study, it has been identified that find out the scope of
luxury hotel industry.
Theoretical approach of ethical behaviour and principles
Thinh Pham and Strickler (2019) Researcher has been carried out the small survey within
short duration and just know about the ethics of luxury hotel industry in global world. It is
mainly developing high class of infrastructure so that many customer attracts towards services.
By using ethical behaviour and principles, hotel industries are trying to enter into market, now
they are entering into different places through different policies and procedures (James, 2020).
These are supporting for luxury hotel to use an effective strategies in decision making. In order
to control or maintain problem in related conflict among employees afterwards, they are
undertaken necessary step in term of ethical and social responsibilities. It easily improved the
condition or situation of hotel industry in different places. For Example – In India, there are
various type of luxury hotel chain such as Oberoi group, Taj Group and many more. But they are
not take care of ethical principles. In this way, it has developed the problem or issue in global
marketplace.
The primary Objective is to investigate about the code of conduct in the luxury hotels. And
also maintain the proper ethical practices adopted by hotel industry.
ANALYSIS of ethical behaviour measure to be undertaken
The ethical behaviour measure by identifying through analysis, which is to be consider
important part of collecting a lot of information about the ethical issues within luxury hotels. It
can be used the different sources such as article, journals where it is collecting and gathering
relevant information (James, 2020). There are various luxury hotels providers taken as sample
for participating and shows their interest towards services. The primary purpose of sample is to
categorise into different groups such as luxury hotels.
The ethical behaviour measured while adopting concept of integrity which always
support for identifying current situation of luxury hotels. (Kapferer and Michaut-Denizeau,
2020). Sometimes, it is finding the information about the hotel industry where how employees
participate in the significant role of business activities. In order to acquire sensitive data or
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information in regards of ethical issues. Primary data collection technique has been gathered
information directly from different fields where it applied the approach during analysis
(Fernandes and Duma, 2019). It became useful for learn about the people knowledge and gain
personal opinion, attitude toward services. On the other hand, Secondary data collection has been
collected data from hotel booklets, service charts, information manuals. It is mainly used to
know about past history of hotel and identify their service facility, other type of luxury
accommodation (Lin, Wu and Tsai, 2020).
Therefore, it can be identified the issue such as lack of resource, confliction between staff
members. At that time, it can be measured the previous performance of luxury hotel where how
they can acquire all essential resource for business development. On regular basis, it has been
taken positive as well as negative feedback. In order to coordinate with other staff members for
identifying specific requirement of business expansion. Furthermore, it also measured the
behaviour of employee within organization where how they can build the value driven
performance. So as needed to define ethical behaviour or measure the visibility in the business.
Current scenario of luxury hotel industry
In current scenario, there are approximately 500 hotels with consider varieties of facilities
as well as services for every class (Scerri, Jenkins and Lovell, 2017). A hotel may be categorised
on the basis of style, stars. In most of cases, they are facing ethical issues in term of security,
safety after infrastructure development, cleanliness, environment pollution and services. These
are increasing the problem which require to resolve problem by implementing ethical principles.
It mainly involves integrity, honesty, trustworthy. These are important point that will be
considered within luxury hotel.
Afterwards, it has examined the situation hotel industry use corporate social
responsibilities for providing self-regulation in which take action to impact on the society. The
commitment to behave ethically and also contribute to economic development.
EVALUATE
The discussion was undertaken with the help of questionnaires. It has been asked question to
visitors in respect of luxuries hotels and their ethical aspects. In this way, it can be identified the
different code of conduct and ethical values implemented within hotel industry (Athwal and
et.al., 2019).
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Code of conduct:
It has been examined the commitment towards ethical practices which is consider as
important part within luxuries hotel industry. It should have started with making policy on
ethical commitment and also focused on the issues related code of conduct. In order to set up the
company policy where every staff members follows them (Rhou and Singal, 2020). Ethical
standards are required for luxury hotel industry to maintain the cooperate social responsibilities.
The various type of policy should be made as per requirement of client those are visiting in the
luxuries hotels.
During appointment of service provider, supplier and hotels that should consider the
policy and procedure. It also applied on the code of conduct for every employees (Suifan, Diab
and Sweis, 2020). The code of conduct should cover the following elements such as : Rule and
regulation that offering better advantage or benefits, Rules on acceptance of benefits and
entertainment.
In this way, it must ensure that code of conduct is adopted by employee whereas it can
easily identify any issues with support for whole management system (Singh, Saufi and Hussin,
2017).
It is also applied to all employee, staff members across board from senior staff
management. On the other hand, middle manager and other front line support handle regular
activities. For Example – in Indian luxury hotel, it offering the better service to potential
customer and also lay down the policy, procedure while dealing with tips. On the other hand,
western hotel adopt the code of conduct to maintain the services in proper manner.
Enhancing ethical Awareness
To apply an efficient practices and other type of ethical culture among different staff
members (Kapferer and Michaut-Denizeau, 2020). It is an essential for luxury hotel management
system to organize the capacity and building training workshop for people at different levels. For
Example- Western luxury hotel is adopting new polices for enhancing ethical awareness in
global market whereas Indian luxury hotel has increased issues due to lack of ethical or moral
value.
Handling the confidential data or information
Hotel staff members are performed the different task in certain levels. It may be
inevitable that has frequently contact with regular guest, those are visiting, in particular who are
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spending a lot of time (Suifan, Diab and Sweis, 2020). In this way, staff members are expected to
give better facilities and services. They always considered the ethical policy to maintain overall
system. on the other hand, they should able to give restriction or prohibited from unauthorized
person. In this way, it has recommendations of better service while running errand such as
buying ticket of concert for special guest.
For Example- In Indian luxury hotel, hotel management should be cleared all doubt,
issues and provide significant guideline, instruction to every staff members. It will require for
providing the special service from guest to other senior management staff (Burchfield, 2017).
Purchases and procurement
During luxury hotel operations, Procurement of service as well as good is important areas
which could increase to maintain all type of practices. It is an essential for hotel industry to
spend substantial amount of good and service (Suifan, Diab and Sweis, 2020)s . Besides, it make
sure that purchases are value for money and also important for established fair and competitive
procurement system with sufficient safe guards. It also helping to prevent abuse by other staff
members. As per compare with western luxury hotel, it should maintain the procurement their
ethical policies and procedures
Recruitment of staff members
Hotel may require to hire staff members those are easily handle the overall business
operations and function. In this way, it become easier to minimize the risk of manipulation. In
order to avoid allegation of impropriety (Kapferer and Michaut-Denizeau, 2020). For Example –
in India luxury hotel, It an essential for hotel management to ensure that recruitment of employee
including placement of internship, trainees and conducted in open session in proper manner. On
the other hand, western luxury hotel for identifying suitable candidate for handling overall
business activities.
Provision of health good and services
The luxuries hotel should provide the better quality of good as well as service to
customer (Suifan, Diab and Sweis, 2020). There are many hotels not adhering to healthy food
processing. It should be taken enough to serve the health food for guest.
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CONCLUSION
As per discussion, it concluded that hotel industry should have maintained their policies and
preciouses on ethical perspective. It laws considered as code of ethics for every staff members.
While employees are expected to provide better service in professional manner whereas
sometimes, they also prohibited or restricted from unauthorized personal access. Furthermore, it
has identified that hotel industry organise the regular capacity building training workshop for
every staff members so that they can easily improve their own skill and knowledge. It has been
established the competitive procurement system and regular capacity building training. However,
it should provide best quality food to client. In positive aspects, Ethical principles are playing
important role within hospitality industry where human resources are major factors for success at
industry. It mainly including significant policies, procedures, leadership style which improve
competitive issues in global marketplace (Batat, 2019).
In this way, ethical principles that are implemented within luxury hotels. It is important as
marketing strategies in recently. However, official website is necessary requirement for luxury
hotel industry which are intermediary with the significant marketing strategies. On the other
hand, ethical issue has increased issue or problems such as conflict between employees,
(Haldorai and et.al., 2019). The primary purpose of project is to identify the extent to which
luxury hotels in India, pay more attention to share their ethical Principles. For purpose, Official
websites of luxury hotels in India have been examined by analysis. it has shown the acts with
their sub categorise and also evaluated in different manner. It has examined that ethical
principles must support for maintaining and controlling services in global marketplace.
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