Category: Ethical issues in hospitality industry

Ethical issues in hospitality industry

The hospitality industry today faces major challenges compared to the past decades, including high competition and the overall decreased travel levels in different regions, in addition to the present hard economic times. These factors might have detrimental effects to the industry if not well managed.

Therefore, most hospitality companies struggle to cope with these challenges, and sometimes, have gone overboard in their struggle to overcome the challenges.

Ethical Decision-Making in the Hospitality Industry

In addition, the hospitality industry has failed to address the ethical issues that concern it, appropriately. Stevens and Fleckenstein consider that it is crucial for the hospitality industry to embrace ethics, compared to other industries, mainly because of its nature, as it is a service industry. Most companies in the hospitality industry invest heavily in a positive image, but this might count as loss, if they are involved in unethical practices that are uncovered publicly Pettijohn, Pettijohn, and Taylor, Nonetheless, the hospitality industry, like other industries, has its own unique challenges, including ethical challenges.

However, developing strategies of countering these challenges is important to ensure continued ethical operations, which are beneficial to a company. This essay will mainly address the ethical challenges in the hospitality industry, and how different companies attempt to address them. This also uses the ethical framework of utilitarianism to explain the case of ethics in the hospitality industry. Ethics in business refers to the appropriate behavior, which a business must adhere to, in its interaction with customers, both individuals and in groups Kapoor n.

Various researches have shown that the hospitality industry, especially hotels, still lag behind in matters concerned with ethics, compared to other companies in different industries Maximiliano Stevens n. Nonetheless, unethical practices in the hospitality industry affect the industry, employees, stakeholders, and the overall community.

Some of the ethical challenges facing the hospitality industry today include, but not limited to employee underpayment and the hiring of illegal immigrants Holjevac Like other companies, companies in the hospitality industry are after making huge profits and competing favorably in the highly competitive market. Therefore, ethical operations become a challenge to these companies when ethical acts lead to more costs in the company Holjevac Nonetheless, such ethical challenges can be solved by appropriate financial and time management, which will result in a balance between profits and costs.

An important ethical challenge the hospitality industry faces is about environmental protection. Companies are responsible for playing their role in environmental conservation by ensuring that their actions do not lead to environmental degradation.

This is a major ethical issue for the hospitality industry, as its operations rely more on the environment. Hotels use large quantities of water, electricity, and gas, among other natural resources. Therefore, they are supposed to ensure they regulate their use of these resources, in order to avoid depletion.

This could be through water conservation, use of energy saving fluorescent bulbs and air conditioners, and using green programs for bedding. The human rights issue is another important ethical challenge facing the hospitality industry. According to the United Nations World Tourism Organization UNWTOhuman rights concerns for the hospitality industry include safety and health at the workplace, commercial exploitation of children, exploitation of immigrant workers, displacement of the native populations, discrimination in hotels, and child and bonded labour Roner However, these ethical issues vary in different countries.To browse Academia.

Skip to main content. Log In Sign Up. Shilpa K. Email ID : anawade. Bendale H. Basic reason is the mandate of social responsibility that has valued from public pressure to perform ethically. Another reason is the realization that, in fact, evidence of ethical decision making can have a positive influence on profits. This development takes place very slowly and business ethics have not been globalized. From the point of business ethics it has been determined that the managers who hold the authority and power have some responsibilities like Individual Ethics, Social Ethics and Institutional Ethics.

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Researcher has investigated professional ethics in the hotel industry. Specifically aal categories of food mart like Hotels, restaurants, Dhabas, Street mart canteens etc in the jalgaon city. During the analysis many issues have observed in providing food to the customers.

ethical issues in hospitality industry

Hotel Industry is very much related to the tourism industry and the growth of tourism industry has increased the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' campaign have also helped in the growth of domestic and international tourism.

The government's recent decision to treat convention centers as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel rooms. Substantial investments in tourism infrastructure are essential for Indian hotel industry to achieve its potential. The upgrading of national highways connecting various parts of India has opened new avenues for the development of budget hotels in India.

Taking advantage of this opportunity Tata group and another hotel chain called 'Homotel' have entered this business segment. According to a report, Hotel Industry in India currently has supply ofrooms and there is a shortage ofrooms fueling hotel room rates across India. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost hour rates from both guests against hours usage.

However, fresh room additions in will keep the ARRs under check. Sales are expected to grow by This will affect the competitiveness of India as a cost-effective tourist destination. To overcome, this shortage Indian hotel industry is adding about 60, quality rooms, currently in different stages of planning and development, which should be ready by The hospitality industry faces various ethical issues including the hiring of illegal immigrants, and underpaying workers.

Many jobs in the hospitality industry are paid through consignment sales, and this creates new problems in slower economic times. Often, when people are spending less money, employees in this industry do not make as much as in better economic times.

When businesses struggle, it is often the employees that are hurt in the long run by being overworked and underpaid. Businesses often struggle to find a balance between paying workers and making a profit, especially in the early years of the business.

These ethical dilemmas often occur in business and are solved by time and better money management as business gain momentum.


The hiring of illegal immigrants is another ethical issue within the hospitality industry. Often, labor from illegal immigrants is less expensive then that of United States citizens. This raises many ethical issues.

United States workers are often displaced because of the cheaper labor, and there is a constant debate about the ethics of illegal immigrant labor. Cleaning industries, and large hotel chains often exploit the illegal immigrants and use the cheap labor to maintain business functions.

Immigration laws and business laws have worked to keep this from happening, but it still occurs all across the United States. These ethical issues are common in business.

There is not always a clear answer to ethical issues, and many businesses struggle to find the balance of ethics and a successful business practice. Ethical practices give many businesses the upper hand in a competitive world. Ethical practices in the hospitality industry often lead to a stronger support base for the business, and customers develop stronger loyalties. Handling ethical issues properly gives businesses positive recognition that helps them to grow and prosper.

This makes me wonder if the state of the economy affects a companies decision to hire illegal immigrants. If revenue decreases during a recession, do companies try to make up the difference by simply hiring a cheaper labor force? If so, that would be one huge ethical issue. Although most think that hiring illegal immigrants to lower wage will significantly hurt the economy, they will be surprised that instead it will just create jobs in other industries.

This however is a huge ethical issue that will probably never be solved and most that do hire illegal immigrants will never get caught. I think it is extremely unethical for companies to use illegal immigrants and pay them less than normal workers.

ethical issues in hospitality industry

It not only is cruel to the illegal aliens but it if people find out that a company is employing illegal immigrants it gives them a bad reputation. This is a major ethical problem in our industry because it seems to be happening so often. There should be no company that actually highers these illegal immigrants because it goes against basic morals and ethics.

Companies shouldn't be breaking the law in order to have lower labor costs. If any company was to get caught doing this their image with the public would be completely destroyed.

Sunday, September 25, What are key ethical issues this industry faces? Herman Marigny September 30, at PM. Brian Steel October 2, at PM. Ross Honig October 2, at PM. Kerry Milazzo October 3, at PM. Newer Post Older Post Home. Subscribe to: Post Comments Atom.In the hospitality industry ethical issues abound both for the business itself and the community at large.

Business ethics is a complicated subject that can be described as the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer wiseGEEK, Now the hospitality industry in general and hotels specifically have seem to be behind most businesses when it comes to ethics in concern to going green, human rights, diversity, human resources, and hotel relationships.

When it comes to the environment, from a business ethics standpoint, are hotels doing enough to help the environment? This question is at the heart of an ethical dilemma concerning the hospitality industry. Is a green program such as bedding enough? Do hotels do enough to conserve water, electricity, and gas? These are very important issues to the world, but as a business the expense does not always calculate in the cost to the rest of the world when changing out a toilet to low flow, or creating a save the planet bedding program, or using fluorescent bulbs and energy efficient air conditioners.

These changes to a hotel are very expensive undertakings, and again the cost to the business owners does not always include the benefit to the world in their decision to implement or not to implement. Human rights, is another area where hotels have ethical issues to deal with. Some ways that human rights issues are ethically affecting hotels include child and bonded labor, workplace health and safety, commercial exploitation of children, exploitation of migrant workers, discrimination, and displacement of indigenous people Roner, These issues vary from country to country, but as a whole something that needs to be looked upon.

Just like going green many hoteliers do not look at the benefits to the world while looking at their costs. Human resources are another ethical dilemma to look upon. When a hotel makes major changes to the heavier and more labor intensive items in rooms, such as bigger fluffier beds, more pillows, more amenities, more amenities, more amenities, but when it comes to the labor force involved in keeping up with these amenities there is not an increase in any way and expect the labor to do everything in the same amount of time.

This will lead to more on the job injuries and more exhaustion. The human factor is also affected by these changes or non-changes in longevity of keeping workers. Ethical and moral dilemmas abound. Another ethical dilemma is in taking advantage or misusing professional acquaintances and equipment. I found that special offers to group planners to stay at a particular property, or giving complimentary rooms to planners for their own recovery or use, or even asking for a favor for oneself, an example of personal gain.View larger.

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ethical issues in hospitality industry

Appropriate for courses in Hospitality Ethics and Hospitality Leadership in hospitality management programs, as well as for a Human Resource Management course. With an integrated case study approach, this text offers a comprehensive and student-friendly method for teaching future managers how to recognize and analyze ethical dilemmas—giving them a strong foundation for making decisions based on sound ethical principles.

Case study approach —Throughout the book, an on-going realistic case study of a fictional establishment presents all the possible ethical situations that may come up in the real world. Life Skills —Addresses the behavioral areas that influence the ability to be ethical such as civility, courtesy, problem-solving, diversity, communication, stress management, delegation, time management, and humility.

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Analysis Skills —Presents over 50 situations in segments of the case study for identifying the decision options, stakeholders, and the possible consequences to the stakeholders for the various decision options, and any of the Ethical Principles for Hospitality Managers that might be violated by these decisions.

Comprehensive ethics instruction —Makes the text useful for a stand-alone ethics course or integrated curriculum. Thought questions —Provided at the end of each chapter—ask students to apply the chapter material to their own experiences. Marriott Corporate Policy 1, Ethical Conduct. Pearson offers special pricing when you package your text with other student resources. If you're interested in creating a cost-saving package for your students, contact your Pearson rep.

We're sorry! We don't recognize your username or password. Please try again. The work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.

You have successfully signed out and will be required to sign back in should you need to download more resources. Out of print. Ethical Decision-Making in the Hospitality Industry. Christine Jaszay, Ph. If You're an Educator Download instructor resources Additional order info. If You're a Student Additional order info. Overview Features Contents Order Overview. Description Appropriate for courses in Hospitality Ethics and Hospitality Leadership in hospitality management programs, as well as for a Human Resource Management course.

Ethical Principles for Hospitality Managers. Concern and Respect for Others. Commitment to Excellence. Reputation and Morale. Ethical Thought. Normative Ethics. Ethical Theories and Decision Making. Analyzing Cases. Finding the Right Management Positions.Practitioners in the hospitality sector rate ethics as one of the most important issues faced by the industry.

Manyscholars argue that the hospitality sector is open to frequent unethical practices. Managers and employees, due tointensive face-to-face interactions with clients, confront many ethical dilemmas in their day-to-day operations.

Despiteits crucial role, studies on ethics in the hospitality industry are limited compared to those undertaken in the moregeneral business area. This manuscript reviews the literature on ethical perceptions and practices amonghospitality managers, employees and students future professionalsand proposes a research agenda. This criticreview intends to increase awareness and knowledge on the importance of this issue and give some orientationsfor scholars towards several important topics for future research in the area of hospitality ethics.

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ethical issues in hospitality industry

This work is licensed under a Creative Commons Attribution 4. Journal Metrics Google Scholar Citations h-index : 93 iindex : h5-Index : 30 h5-Media : Contact Stephen Lee Editorial Assistant ijbm ccsenet.Ethical issues impacting on the industry and about which you must investigate house policies and in-house Standard Operating Procedures [SOPs] include:. Confidentiality Confidentiality is related to Privacy. However, you are also under an obligation to keep information about the business your workplace confidential — that is, if you become aware of information about the business you are expected to keep this information to yourself and not disclose it to anyone including family, friends and even other staff members.

Commission procedures Not all premises will be involved with commissions but where they are, certain ethical issues apply. Where all guests arrive as booked, the property then has to make other arrangements for them. This can cause embarrassment and a loss of reputation for the venue, and frustration and anger for those who cannot be accommodated as expected especially where they have received confirmation of their booking.

Pricing can also vary between times of the year or the time of day — accommodation properties generally charge premium high rates during peak seasons such as holiday times and traditional periods when there is a high level of bookings and many bars feature a Happy Hour at set times. And not all properties engage in this type of activity.

Sometimes the property will also pay the travel costs of the person, especially where the individual is influential. What Do Overseas Visitors Expect? How to Distribute information on OSH to the Ethical issues impacting on the industry and about which you must investigate house policies and in-house Standard Operating Procedures [SOPs] include: 1.

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