Hospitality Today An Introduction

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Hospitality TodayAn Introduction

• RHM 175

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Chapter 17 Ethics in Hospitality
Management

• Competencies
• 1. Define ethics, distinguish social
  responsibility from business ethics, describe six
  kinds of moral reasoning, and compare the ethical
  standards of business and poker.
• 2. Explore whether honesty is always the best
  policy, give examples of different viewpoints
  concerning morality, contrast deontology with
  utilitarianism, and explain the concept of
  ethical relativism.
• 3. Describe ethical issues in the hospitality
  industry, explain the need for a code of ethics
  for hospitality businesses, define the term
  stakeholder, and identify three questions
  individuals should ask themselves when making a
  decision.

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Who is this man?
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• Calif. Congressman Admits Taking Bribes
• By ELLIOT SPAGAT, Associated Press Writer
• Rep. Randy "Duke" Cunningham
• SAN DIEGO - After months of insisting he had done
  nothing wrong, Rep. Randy "Duke" Cunningham
  tearfully acknowledged taking 2.4 million in
  bribes, saying "The truth is I broke the law."
• The eight-term Republican and former Vietnam
  fighting ace pleaded guilty to graft Monday and
  resigned, admitting he took money mostly from
  defense contractors in exchange for government
  business and other favors.
• "In my life, I have had great joy and great
  sorrow. And now I know great shame," a tearful
  Cunningham said after the plea. "I can't undo
  what I have done but I can atone."
• But Cunningham, who could get up to 10 years in
  prison at sentencing Feb. 27 on federal charges
  of conspiracy to commit bribery and fraud, and
  tax evasion, may not be the only person ensnared
  in the case. Prosecutors have indicated they have
  more than him in mind.
• In the plea, Cunningham, 63, acknowledged working
  with four co-conspirators to take bribes from
  defense contractors and others. Prosecutors said
  the bribes were paid in a variety of forms,
  including checks totaling more than 1 million,
  cash, antiques, rugs, furniture, yacht club fees
  and vacations.
• Prosecutors said he used his influential position
  as a member of a House Appropriations
  subcommittee to secure defense contracts worth
  tens of millions of dollars for those who bribed
  him.
• The case began when authorities started
  investigating Cunningham's sale of his Del Mar
  house to defense contractor Mitchell Wade for
  1,675,000. Wade sold the house nearly a year
  later for 975,000 _ a loss of 700,000 in a hot
  real estate market.
• Cunningham admitted in the plea agreement to
  receiving 1.025 million to pay down the mortgage
  of a five-bedroom, eight-bathroom Spanish
  colonial estate he bought with money from the Del
  Mar home sale. He also acknowledged receiving
  200,000 as a down payment for an Arlington, Va.,
  condo.
• Cunningham was allowed to remain free while he
  awaits sentencing. He also agreed to forfeit his
  mansion, more than 1.8 million in cash, and
  antiques and rugs.
• He is the first congressman to leave office amid
  bribery allegations since 2002, when former Rep.
  James Traficant, D-Ohio, was sentenced to eight
  years in prison after being convicted of
  racketeering and accepting bribes.
• The plea comes amid a series of GOP scandals
  Rep. Tom DeLay of Texas had to step down as
  majority leader after he was indicted in a
  campaign finance case a stock sale by Senate
  Majority Leader Bill Frist is being looked at by
  regulators and Vice President Dick Cheney's
  chief of staff was indicted in the CIA leak case

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What is Ethics?

• Ethics Two definitions apply
• a set of moral principles and values that
  individuals use to answer questions of right and
  wrong.
• The study of the general nature of morals and of
  the specific moral choices to be made by
  individuals in their relationships with others.

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Social Responsibility and Business Ethics
Social responsibility at any one time in any
society there is a set of generally accepted
relationships, obligations, and duties between
the major institutions and the people. The
Social Contract Ethical behavior this has been
on the decline in corporate America. Example
Martha Stewart Enron See Page 493
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How We Arrive at Our Values 6 Ways

• Authority
• Deductive Logic
• Sense experience
• Emotion
• Intuition
• Science
• See Page 495

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Is Business Like Poker?

• Honesty is the best policy and it is never right
  to lie or steal, but holds that the rules of
  business are difference and that behavior that is
  unacceptable elsewhere is legitimate in the
  business world.

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Is Honesty Always the Best Policy?

• Honesty is the only acceptable policy.
• Sissel Bok when you lie to others, we take away
  their right to make their own choices and instead
  manipulate them by giving them false information
  on which to base their decisions. In a real
  sense we are taking away their freedom.
• Liars like to believe that their reasons for
  lying are sound. See Page 497

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Is Honesty Always the Best Policy?

• Solomon and Hanson
• Lying may always be wrong, but some lies are
  more wrong than others
• Each person must decide for himself.

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The Search for a Common Moral Ground

• Universal moral imperatives or obligations that
  form the basis of civilized behavior and are
  necessary for any society to function.
• Josephson
• Believes that most people have a built-in sense
  of what is right and wrong. There is usually a
  choice of ethical and unethical behaviors.
  Usually, problems have three solutions, once you
  get them, then you can find the one that is
  ethical.

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The Search for a Common Moral Ground

• Ambassador Max Kampelman
• There is a hole in out moral ozone layer. There
  is a vast difference between the right to do
  something, which is important, and doing
  something right, which is equally important.

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Deonotology versus Utilitarianism

• Deontology proposes that ethical behavior is
  simply a matter of doing Gods will.
• Categorial imperative an absolute and
  universally binding moral law. (Always tell the
  truth because if we cannot believe what others
  tell us, then agreements and even conversations
  between people are not possible.
• Utilitarianism says that ethical behavior
  consists of acting in such a way as to achieve
  the greatest good for the greatest number.

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Ethical Relativism

• .....suggests that there are not universal
  ethical principles at all each issue must be
  considered in its situational or cultural
  context.
• ..situational ethics

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Ethical Issuesin HospitalitySee Page 502
Ethics Poll of Lodging Managers
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A few ethical issues.

• See Page 500 - 501
• New Menu
• Bumped Reservations
• Cashiers Integrity
• Free Wine

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Environmental Issues

• Discrimination
• Sexual Harassment
• AIDS in the Workplace
• Advertising Claims
• Truth-in-Menu Laws

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Must there be a Code of Ethics?

• Some Ethical Litmus Tests

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What is a..

• Stackholders? Anyone who is affected by the
  outcome of a given decision.
• Questions when making a decision
• Is it legal?
• Is it balanced?
• How will it make me feel about myself?
• How will I feel if my picture is on the front of
  the newspaper tomorrow?
• How will I feel telling my parents what I did? My
  grandparents? My siblings? My children?