MGT301A: Applying Ethical Frameworks to Hospitality Issues

This report examines ethical issues within the hospitality industry, focusing on a case study involving the Ibis hotel chain in Sydney. It addresses allegations of fabricated financial statements and workplace sexual harassment. The report applies ethical frameworks such as the utilitarian, justice, virtue, and rights approaches to analyze these issues and propose solutions. It emphasizes the importance of accurate financial reporting, corporate governance, and creating a discrimination-free workplace. The analysis demonstrates how ethical considerations and frameworks can guide organizations in making responsible decisions and ensuring fair treatment of stakeholders. Desklib offers a wealth of similar solved assignments and past papers for students.

Running head: ETHICS AND SUSTAINABILITY
ETHICS AND SUSTAINABILITY
Name of the Student
Name of the University
Author Note

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Part A
Introduction
Ethics and ethical principles are essentially moral notions that are imbibed in a particular
framework, organizational or otherwise, to ensure acceptable conduct. In light of the same the
following paragraphs will seek to elaborate on ethical considerations to be undertaken when
functioning as a body corporate in the hospitality industry.
Ethical consideration 1
The Ibis chain of hotels in Sydney faced various allegations of fabricated financial
statements that are marked with unreported profits which the company has not disclosed. In light
of the same as a body corporate the hotel has an ethical obligation to produce true and accurate
financial reports during audits in order to adequately observe their duties under principles of
corporate governance.
Ethical Frameworks
The utilitarian approach agrees with the profit earning motive of corporations however it
ensures that the statements made in any disclosure document is true and accurate as the same is a
part of the optimal utilization of resources (the accounting and management personnel) who draft
the same. This approach is based on utilization of available resources of a company in such a
way that the maximum possible revenue is obtained (Maddux & Maddux, 2010). In other words,
the idea ensures the optimum utilization of resources including human resources. Thus if this
framework was to be ideally enforced the accounting and management personnel must be
utilized in a way that brings out the most accurate image of the company’s finances (DesJardins

2ETHICS AND SUSTAINABILITY
& McCall, 2005). Thus in such a situation, the Ibis chain of hotels has displayed a lackadaisical
propensity to not maintain fair accounts which conspicuously establishes a motive to earn and
horde unreported profits.
In such a situation where a company is continually producing fabricated information and
fabricated disclosure documents which portray a falsified stand of the company’s financial
position the Justice approach can also be applied to the same. The justice approach states that
justified ramifications should be delivered in cases where the rights of certain parties to a
transaction are infringed by another (Ferrell, Fraedrich & Ferrell, 2014). In such a case the
justice approach would also be an appropriate approach for mitigating the problem as making
fabricated disclosures violate the rights of the shareholders.
Ethical consideration 2
There have additionally been various claims relating to sexual harassment at the
workplace at the premises of Ibis Hotels in Sydney. Sexual harassment refers to differential
treatment of members of the opposite sex as well as conduct that can be deemed as inappropriate
within a particular work environment. In light of the same, such conduct whether differential or
inappropriate is a breach of ethical codes of conduct and the same is grossly illegal in most
jurisdictions. The idea that a body corporate must act ethically is imbibed in all forms of
regulations and codes of practice prescribed for various industries. It would thus be ideal to
remove such an ethical omission on part of a body corporate when conducting affairs. Thus an
approach has to be identified which would adequately curb the lacking ethical behavior and
initiate more ethical conduct within the same.

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Ethical Framework
The virtue approach prescribes a virtuous perspective on the conduction of affairs,
whether organizational or otherwise (Firth, 2012). The virtue approach thus uses the best way in
which the people involved in a particular scenario can conduct themselves and aims at an ethical
and virtuous use of resources (Neeley, 2015). Sexual harassment, fundamentally, is wholly
unethical and is not a virtuous approach when dealing with the affairs of a body corporate. It is
also illegal in most jurisdictions (Molinsky & Cliffe, 2015).
In managing the ethical issue of sexual harassment at the workplace the rights approach
can also be applied for the same. The rights approach states that all individuals functioning
within an organizational framework have certain rights which must be adhered to in all
circumstances (Neeley, 2015). The rights approach thus states that in case of a workplace every
employee has a right to work in situations that free from all forms of discrimination and
harassment, sexual or otherwise, and thus the rights approach would adequately mitigate the
issue.
Conclusion
To conclude, the rights of parties in a particular business scenario are evaluated by
various ethical considerations that prescribe a smooth functioning of corporate affairs. In the
same way it may be accepted that in case of any kind of unethical treatment or inappropriate
treatment or in case of fabricated financial statements, ethical frameworks that define such
situation would aid in reaching an amicable solution for the same.

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Reference List
DesJardins J. R. & McCall J. J., 2005, Contemporary Issues in Business Ethics, 5th ed,
Thomson/Wadsworth, Belmont, California.
Ferrell, O. C & Fraedrich, J. & Ferrell L. 2014, Business Ethics: Ethical Decision Making and
Cases, 10th ed, South-Western/Cengage Learning, Mason, OH.
Firth L. 2012, Ethics in Business, Independence, Cambridge
Meyer, E. 2015, When culture doesn't translate. Harvard Business Review:
Molinsky, A. and Cliffe, S., 2015, Companies don't go global, people do: an interview
with Andy Molinsky. Harvard Business Review.
Maddux, D. & Maddux, R. (2010). Ethics in Business: Manage with Authority and Fairness.
Rochester: Axzo Press. (Part 1).
Neeley, T., 2015, Leading Global Teams: Managing SPLIT to Bridge Social Distance. Harvard
Business Review.