Chapter 12Chapter 12

Ethics

and

Public Policy

in theHospitality and Tourism Industry

Hippocratic Oath

I swear to fulfill, to the best of my ability and judgment, this covenant:

I will respect the hard-won scientific gains of those physicians in whose steps I walk, and gladly share such

knowledge as is mine with those who are to follow.

I will apply, for the benefit of the sick, all measures [that] are required, avoiding those twin traps of

overtreatment and therapeutic nihilism.

I will remember that there is art to medicine as well as science, and that warmth, sympathy, and

understanding may outweigh the surgeon's knife or the chemist's drug.

I will not be ashamed to say "I know not," nor will I fail to call in my colleagues when the skills of another are

needed for a patient's recovery.

A Hippocratic Oathfor Tourism Policy

Makers ?

(Let’s write one)

Public Policy

• Laws and governmental interventions into, or regulation of, business affairs

• Public policy questions are inherently political (concern public officials)

• Political activities have ethical consequences

Ideology

• Politically-oriented ethical issues are usually dependent on one’s ideology

• Ideology: a system of beliefs that is both factual and value-laden about the way the world works

• Inherently involves basic

assumptions about human nature

Sample ideological questions

• Are we inherently selfish?• Are we inherently benevolent?• What is the purpose of government?

– To reduce inequality?– To protect private property?– To protect individual rights?

Governmental RegulationTwo extremes

• Individualistic ideology:– There should be no government interference– Any government intrusion is immoral

• Socialist ideology: – All economic activities should be controlled by

government– Freedom refers to freedom from hunger, from

insecurity, etc. rather than freedom from societal obligations

Mixed Economy

• Found between the extremes of “pure” capitalism and socialism

• It is a capitalist market economy with some governmental intervention

• Groups with varying interests have differing views toward government regulation of business

Lobbying efforts• Groups such as environmental groups and

consumer protection groups tend to favor government regulation of business activities to protect the interests of those they represent

• Organized industry and business organizations tend to oppose regulations over businesses

Their argument: businesses can do more for society if they are left to pursue profit-making ways that serve the public

Case: The “Public Exposure” Debate

• The Players:– Milo Danver, spokesperson for WCPA

(Wisconsin Coalition for Progressive Action)– Oliver Standifant, spokesperson for WFBEA

(Wisconsin Food, Beverage and Entertainment Association)

• The Issues: WCPA’s new campaign:“All Business is the People’s Business”

WCPA’s campaign

• Working on having a law passed that requires all registered businesses with more than five employees to fill out yearly forms that will be open to the public

• Information to be requested:– Compensation of officials earning $100,000+– Number of employees– Average wages– Health insurance information, etc.

The ArgumentsDanver: – Companies are artificial creations that exist for the

benefit of people– Therefore, people have the right to know how

they are behaving– Would not restrict companies’ behaviors– Would allow citizens to decide how they wish to

relate to companies

More ArgumentsStandifant:– Attack on free enterprise– Would harm people it is trying to help– Many businesses will go bankrupt– Efficiency will suffer– The law would drive businesses from the state– Tens of thousands of jobs will be lost

“Facts”• Many disputed assertions in the case

Examples:– Assault on private enterprise that will lead to

more government meddling– Noble attempt to force private corporations

to deal honestly and openly with the public

• Factual beliefs, coupled with ideology, will make the difference in how one ethically sees a matter of public policy like this one

Analysis

Analysts would arrive at opposing conclusions depending on which ideological worldview was believedUtilitarian: how to achieve the greatest good

for the greatest number of people?Kant: categorical imperative; who violates it?Justice ethics: which side leads to greater

injustices?Virtue ethics: whose character is wanting –

Standifant’s or Danver’s?

The point!

• It is very important to establish what is factually true in order to arrive at an agreed upon ethical judgment

• It is difficult to do when there are opposing ideological outlooks that correspond to different “facts”

Ideological viewpoints

• Often, people view the world as if what is best for themselves and their own group members is also what is best for society as a whole.

• Therefore, it is important to examine one’s own perspectives to look for biases toward our own self-interests

Hospitality and Tourism Industry

• Associations and Businesses

The thinking process for public policy decision making:

– What is the most enlightened self-interest position to take?

– Which policy is likely to lead to the most beneficial consequences for the industry in the long run?

The Ethical Choice

• When taking only an industry standpoint, a group is simply acting as an interest group – not looking at what is good for society as a whole

• Positions should be decided and measured in terms of the impact on all of society

10 articles in the UN WTO Code of Ethics

Case Studies

1. A Fair Price to Pay

3. Second-Hand Rose

5. Fishy Facts

7. Loyal Beyond

9. Menu Management

Present Cases…. then Coffee Break

9:30-9:45 am prepare 3-5 minute presentation9:45-10:15 am presentation

I would like to be back in class (after break) by 10:30 am

Why should organizations have a welfare policy ?

For saving costs by reducing absence and improving the

performance of employees in the workplace by addressing any

problem or concerns that they might have.

Three Common “Welfare Rationales”

1. Legal-Reactive

2. Corporate Conscience

3. Company Paternalism

( Marriott, Hilton, Holiday Inn and Forte )

Employee Blogging

’ Let s work together and form a policy for the employee

handbook regarding blogging

' Harvard Law School s policy ' reads exactly how you d expect ' . Harvard Law School s to read It actually starts off with an

apology

" ’ We don t mean to turn you off from blogging by immediately inundating you with, legalese but we need to make clear our respective rights and responsibilities related to

." , this service By posting your Content using the Services you are granting Harvard a- , - , , non exclusive royalty free perpetual and worldwide license to use your Content in

, , , connection with the operation of the Services including without limitation the license , , , , , , , rights to copy distribute transmit publicly display publicly perform reproduce edit

, / .translate and reformat your Content and or to incorporate it into a collective work

How can you accomplish this without ? so many words

- With this two word corporate :blogging policy

" "Be professional

, In general the employee handbook should be approached as a guideline for

. workplace expectations and policies

The more detailed the handbook, becomes the more likely it is to become

a problem for employers and .employees alike

Any ideas on a policy regarding- ?dress code

Do we need a?policy

Welfare…. A variety of issues

Absence Management

(Direct and Indirect)

Direct Costs

- Occupancy sick pay

- Lost production

- Replacement Staff

Indirect Costs

- Burdens on another members

- Leading poor morale

- Lower productivity

- Reduce customer retention

What should our policy be regarding attendance and

absences?

Prevention is better than CureManagement seeks to adopt a proactive approach in creating a healthy organization and aims to help employees to look and feel better and to be physically healthy or fit.

Gym on site and expert advice.(nutrition)

Prevention is better than Cure (Continue)

Monitoring aspects such as employees’ heart rate, blood pressure, cholesterol and body weight.

Should the company

be able to monitor

an employee’s

health?

Aids / HIV

Aids presents a major managerial challenge encompassing moral, social and medical issues resulting from health, safety, legal and humanitarian problems (Arkin 2005)

Responding to sensitive issues

A member of staff in your travel agency comes to you and informs you that they are HIV positive.

How do you react ?How do you react ?

What’s your policy?What’s your policy?

Adam-Smith and Goss(1993)

Three potential responses to the perceived risk of infection in the workplace.

- Rational Response

- Bounded Rationality Response

- Subjective Response

Policy responses to AIDS / HIV

• Total denial that AIDS/HIV is a workplace issue.

• Wait and see approach.• Deliberate no-policy decision and reliance on

existing arrangements.• AIDS/HIV to be treated as any other life-

threatening disease.• Introduce specific policy.

Why we should have AIDS/HIV Policy ?

• Countering misunderstanding, lack of knowledge, fear and prejudice.

• HIV Disability Discrimination Act.

Alcohol / Drug useAlcohol / Drug use• The commonest causes.• One in four accidents at work are due to

alcohol misuse.

Direct and Indirect Affects

• Costs of accidents• Lower productivity• Poor quality work• Bad decisions• Damage to the organization reputation• Absenteeism

Direct and Indirect Affects(Continue)

• Unreliability• Managers losing time in dealing with

problems• Increased labor turnover

Create an environment in the work place

• Long working hours• Availability of alcohol in the workplace• Stressful… employees are expected to be

positive while working

Developing policy on alcohol and drugs

• Including any legal obligations• A clear outline of the aims and purposes • Detail of the responsibility of different staff• Tighter restrictions for any particular groups• Definition of rule and procedures regarding

prescription medicine

Review and reflect

“ Peer pressure is likely to have more impact on changing behavior with regards to alcohol or drugs than organizationally directed interventions”

Do you agree?Do you agree?

Drug and alcohol testing

The moral, ethical and legal aspects of testing

Testing is the best way to address the problem of misuse

Whom to test?Whom to test?

What’s our policy regarding drugs and alcohol?

Sexual harassment

What constitutes sexual harassment?”

Patting, hugging or touching a co-worker Comments about the way a women looks Lewd remarks or glances directed towards a male

from a female employeeQuestions about an employees sex life Requests for sexual favors Allowing suggestive posters of either sex in the

workplace

A new definition of sexual harassment

“Any form of unwanted verbal, non-verbal or physical conduct of a sexual nature which occurs with the purpose of violating the dignity of a person, in particular when

creating an intimidating, hostile, degrading, humiliating or offensive environment”

Why employers should take action to prevent sexual harassment?

• Protecting the company image • Avoiding litigation• Reducing absenteeism• No employee suffer from sexual harassment• The work place should be safe from harassing

behavior

Tourism and Hospitality• A breeding ground for sexual harassment?

• Hotel often suggest the promise of sexual activity?

• Waiters flirt with customer increase customer spend and their own tips

http://www.adpulp.com/archives/Hooters_Ladies.jpg

Sexual harassment does not refer to the occasional compliments of a socially acceptable nature. It does not refer to mutually acceptable

joking or teasing.

It refers to the behavior which is • Unwelcome• Personally offensive• Debilitating to morale

therefore, interferes with work effectiveness

StressStressThink about what makes you stressed at work…how

can stress by alleviated…is alleviating stress a personal issue or a company issue.

• DemandsDemands• ControlControl• SupportSupport• RelationshipsRelationships• RoleRole• ChangeChange

Working Time

Flexible work hours

Split shifts

Whatever works

What’s our policy regarding scheduling?

Do we have a policy about work place violence?

Check-out these websites:

www.safetyworld.com

www.worksafebc.com

www.ossa.com

www.osha.gov

What policies in your typical ' handbook can t be distilled into the

two words

" "?respect others

Policies about harassment and discrimination and office

romance are all about respecting.coworkers

Policies about trade secrets and computer usage and even

attendance are all about . respecting the company

Policies about dealing with customers or answering the

phone or about handling complaints are about respecting . the customers

Even policies about drugs and alcohol are all about respecting

.yourself