ASIAN INSTITUTE OF E-COMMERCE COLLEGE

URDANETA CAMPUS
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ETHICS 01 Professional Ethics in Hotel and Restaurant Management

MIDTERM

CHAPTER 3

BASIC PROFESSIONAL ETHICS

APPLIED ETHICS
 is the philosophical examination, from a moral standpoint, of particular issues in
private and public life that are matters of moral judgment.  a term used to describe attempts to use philosophical methods to identify the morally correct course of action in various fields of human life.  it is a study which is supposed to involve practitioners as much as professional philosophers.

Typologies for Applied Ethics  being used to help improve organizations and social issues at the national and global
level.

1. 2. 3. 4.

Decision Ethics – ethical theories and ethical decision processes Professional Ethics – ethics to improve professionalism Clinical Ethics – ethics to improve our basic health needs Business Ethics – individual based morals to improve ethics in an organization 5. Organizational Ethics – ethics among organizations 6. Social Ethics – ethics among nations and as one global unit

Modern Approach for Applied Ethics (Theories) 1. Utilitarianism – where the practical consequences of various policies are evaluated
on the assumption that the right policy will be the one which results in the greatest happiness

2. Deontological Ethics – notions based on 'rules' i.e. that there is an obligation to
perform the 'right' action, regardless of actual consequences.

3. Virtue Ethics – derived from Aristotle's and Confucius's notions, which asserts that
the right action will be that chosen by a suitably 'virtuous' agent.

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transplant. global warming) 7.g. Marketing Ethics 13. racism. Medical Ethics 15. Government Ethics 8. Capital punishment) 10. Social Work Ethics or Ethics in Social Work 21.Subfields of Applied Ethics 1. Education Ethics 6. bioengineering) 3. Bioethics (e. International Ethics (e. Animal rights issues 2.g. Environmental Ethics (e. Sexual Ethics 20. Hospitality Ethics 9. cloning. Media Ethics / Journalism Ethics 14. brain surgery. classism. Research Ethics 19. biotechnology. Public Administration Ethics 18. gender ethics / sexism. Military Ethics (e. Business Ethics 4. world hunger) 11. Neuroethics (e. neuroscience. just war theory) 16. Sports Ethics 4 .g. Computer Ethics 5. inseminations. brainwashing) 17. Human rights issues (e.g.g. Legal Ethics 12.g. psychopharmaceutical.

5 .ASIAN INSTITUTE OF E-COMMERCE COLLEGE URDANETA CAMPUS Name: _____________________________ Course/Section : _____________________ Date : _____________________ Score : ____________________ ETHICS 01 Professional Ethics in Hotel & Restaurant Management SUMMING UP EXERCISE # 1 1. 3. Using the Six Typologies of Applied Ethics. What would be the best applied ethics modern approach for the Hotel and Restaurant Industry? Explain. determine on which domain each Subfields of Ethics would fall under. Why is it that the Hotel and Restaurant Industry falls under Applied Ethics? 2.

 historically. To set an example regardless of loss or profit/income – because the love money is root of all evil in any profession and any form of business. 2. Why Business Ethics? (The Need for Business Ethics) 1. the field is primarily normative. both within major corporations and within academia. 6 . interest in business ethics accelerated dramatically during the 1980s and 1990s.  can be both a normative and a descriptive discipline.  as a corporate practice and a career specialization.BUSINESS ETHICS  also known as Corporate Ethics  is a form of Applied Ethics or Professional Ethics that examines ethical principles and moral or ethical problems that arise in a business environment. anywhere in any way. To promote ethical professionalism – because the business can be unethical anytime. In order to raise accountability and responsibility – because the business has a direct influence and impact in the social and natural environment 3.  it applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole.

ASIAN INSTITUTE OF E-COMMERCE COLLEGE URDANETA CAMPUS Name: _____________________________ Course/Section : _____________________ Date : _____________________ Score : ____________________ ETHICS 01 Professional Ethics in Hotel & Restaurant Management SUMMING UP EXERCISE # 2 1. would you rather be successful in the Hotel and Restaurant Industry yet be unethical or be virtuous however gain financial loss? Explain and support your answer. 3. Give at least 5 examples whether where to raise up accountability and responsibility in the Hotel and Restaurant Industry. Give at least 5 examples whether where to promote ethical professionalism in the Hotel and Restaurant Industry. 7 . 2. If you were a restaurateur or hotelier.

Negative Setback of Professional Ethics 1. The possibility that a code of ethics may be self-serving 2.Professional Ethics  Concerns the moral issues that arise because of the specialist knowledge that professionals attains and how the use of this knowledge should be governed when providing service to the public.  Professionals carry additional moral responsibilities to those held by the population in general because they are capable of making and acting on an informed decisions in situations that the public cannot because they have not received the relevant training. 8 . Why Professional Ethics? (Benefits of Professional Ethics) 1. To prevent exploitation of the client. To preserve the integrity of the profession. 2. disciplines and standards to follow. The possibility of a complete monopoly over a particular area of knowledge or profession. To set guidelines. 3.

S. Would you be in favor if the Philippine Professional and Regulatory Commission (PRC) will impose a Board Examination for Hotel and Restaurant Industry Careers specifically the course Hotel and Restaurant Management? Why? 2. H.ASIAN INSTITUTE OF E-COMMERCE COLLEGE URDANETA CAMPUS Name: _____________________________ Course/Section : _____________________ Date : _____________________ Score : ____________________ ETHICS 01 Professional Ethics in Hotel & Restaurant Management SUMMING UP EXERCISE # 3 1. Are you in favor in the idea that only those who finished a decent culinary arts course from a high-tuition fee or elite schools/universities be the ones to be called professional chefs? Why? 9 . housekeepers. or kitchen stewards? 3.M.R. graduates for waiters. Do you think the integrity and professionalism under the Hotel and Restaurant Industry is being tainted or lessened due to hiring of B.

Issues affecting the privacy of employees (e. b.  The main aim or objective is to promote equal work opportunity.g. employees) Issues affecting the privacy of employers (e. c. gender. Common Issues a. strike breaking) d.g. union busting. disabilities. Ethics of Finance  Issues regarding economic meltdowns that cannot be explained by business cycle. Occupational safety and health (e. Issues surrounding the representation of employees and the democratization of workplace (e. Common Issues a. non-payment of health insurance and social security premiums) 10 .g.ISSUES IN BUSINESS ETHICS 1. (e. The use of collaterals in financial loans.g.g. religion. at-will employment) c. The imposition of service charges and tips. Ethics of Human Resource Management  Issues regarding hiring. The willful declaration of bankruptcy or net income loss to abstain from taxes. sexual harassment) b. slavery) g. Issues arising from traditional views of relationships between employers and employees (e. Issues relating to fairness of employment contract and balance of powers between employee and employer (e. and attractiveness. 2. managing and terminating employees. weight. drug testing) e. whistle blowing f. specially in hotels and restaurants.g. race. work surveillance.  Conflict of ethics with existing laws where issues of finance are often addressed as matters of law instead of ethics. Discrimination Issues – discrimination with regards to age.g. working on unsafe and unhealthy workplace.

concerns from transaction-focused business practice – the market is responsible to the consumers and other proximate as well as remote stakeholders as much as. SRP or the suggested retail price and the contra-price schemes) b. Difficulty of pointing out the agency responsible for the practice Competition Lack of autonomy of marketing agents Nature of products marketed Nature of persons to whom products are marketed Profit margin Issues in Visual Communication as a Tool for Marketing & Sales a. It is a deceptive use of green PR or green marketing. price discrimination and price skimming (e. then reveals to potential customers that the advertised good is not available at the original price or list of assumed features. Pricing – price fixing. Bait and Switch – In retail sales.g. Ethics of Sales and Marketing  Marketing Ethics is a subset/subfield of Business Ethics  Deals with the principles. The term green sheen has similarly been used to describe organizations that attempt to show that they are adopting practices beneficial to the environment. Specific Marketing Strategies • Greenwashing – (a portmanteau of green and whitewash) is the practice of companies disingenuously spinning their products and policies as environmentally friendly. b. of ethics.3. d. c. but 11 • . a bait and switch is a form of fraud in which the party putting forth the fraud lures in customers by advertising a product or service at a low price or with many features.  Focused on two major concerns: 1. Common Issues a. concerns from political philosophy – only ethics in marketing is maximizing profit for stakeholders. if not less. supply chain) c. 2.  All about transparency issues. Anti-Competitive Practices – manipulation of loyalty (e.g. such as by presenting cost cuts as reductions in use of resources. f. it is responsible to its shareholders. values and/or ideals by which marketers ought to act. e. advertising and truthfulness and honesty.

digital delivery systems) to send unsolicited bulk messages indiscriminately. (7) mobile phone messaging spam. (9) junk fax transmissions. to encourage other onlookers or audience members (who are unaware of the set-up) to purchase said goods or services. Viral promotions may take the form of video clips. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. • Viral Marketing – refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. • Electronic Spam – Spam is the use of electronic messaging systems (including most broadcast media. images. This use of this term has extended to similar situations outside of the marketing sense. The term is also used to describe a person who is paid to help a political party or other advocacy organization to gain adherents. Because 12 . The term plant is also used. advergames. (3) Web search engine spam. the term is applied to similar abuses in other media: (1) instant messaging spam. (5) wiki spam. or even text messages. • Shill – A shill is a person who is paid to help another person or organization to sell goods or services. The person or group that hires the shill is using crowd psychology. and gives the impression that he or she finds merit in the ideological claims of the political party. (4) spam in blogs. (8) Internet forum spam. While the most widely recognized form of spam is e-mail spam. (2) Usenet newsgroup spam. as with the situation of selling goods or services. the shill gives the impression of being unrelated to the group in question.something different is. interactive Flash games. The shill pretends to have no association with the seller/group and gives onlookers the impression that he or she is an enthusiastic customer. brandable software. (11) television advertising and (12) file sharing network spam. ebooks. (6) online classified ads spam. (10) social networking spam. Spamming remains economically viable because advertisers have no operating costs beyond the management of their mailing lists. The term "viral marketing" has also been used pejoratively to refer to stealth marketing campaigns—the unscrupulous use of astroturfing on-line combined with undermarket advertising in shopping centers to create the impression of spontaneous word of mouth enthusiasm. analogous to the spread of pathological and computer viruses. and it is difficult to hold senders accountable for their mass mailings. Shills are often employed by confidence artists. People who create electronic spam are called spammers.

13 . d. spammers are numerous. • Pyramid Scheme – (also called as pyramiding). Attack ads often form part of negative campaigning or smear campaigns. who will be willing to pay a higher price for the product than if he had been aware of its limited useful life. A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme. which have been forced to add extra capacity to cope with the deluge. without any product or service being delivered. and the volume of unsolicited mail has become very high. may be disseminated via mass media. and in large or well-financed campaigns. is a policy of deliberately planning or designing a product with a limited useful life. Planned obsolescence has potential benefits for a producer because to obtain continuing use of the product the consumer is under pressure to purchase again. or from a competitor which might also rely on planned obsolescence. and has been the subject of legislation in many jurisdictions. are borne by the public and by Internet service providers. in industrial design. • Planned Obsolescence – also known as built-in obsolescence. service or company. Content Ads – refers to the implicit and explicit content of advertisements • Attack Ads – it is an advertisement whose message is meant as an attack against another product. Spamming is universally reviled. The FBI of USA considers pyramid schemes a form of fraud. so it will become obsolete or nonfunctional after a certain period. such as lost productivity and fraud. The costs.the barrier to entry is so low. whether from the same manufacturer (a replacement part or a newer model). The purpose of planned obsolescence is to hide the real cost per use from the consumer.

bungee jumping. casinos. oil spills • In HRM. such as that of a pretty woman. even if it is often only suggestively sexual. motor vehicles. typically has no connection to the product being advertised. environmental ethics. gay and strip bars. for purpose of sale. Ethical relations between the company and the environment Examples: • Pollution. Products regarded as immoral or harmful – e. cigarettes. addictive and inherently dangerous products and services Examples: • tobacco. Difficulty to define permissibility – due to change of preventive technologies or social perceptions of acceptable risks. cheesecake (nude or semi-nude female model/actress). Defective. contrary to supraliminal stimuli or "above threshold". Common Issues a.g. contraceptives. Sex in advertising – is the use of sexual or erotic imagery (also called "sex appeal") in advertising to draw interest to a particular product. Degree of danger in a product or production process – whether what to prioritize. zipline ride. liquors. Ethics of Production  Deals with the duties of a company to ensure that products and production processes do not cause harm. alcohol. carbon emission. Dilemma a. Visual stimuli may be quickly flashed before an individual may process them. The type of imagery that may be used is very broad. • • 4. sexual relations b. thereby interrupting the processing.• Subliminal stimuli – (subliminal=literally means "below threshold"). chemical products • In HRM. and would include nudity. are any sensory stimuli below an individual's absolute threshold for conscious perception. and beefcake (nude or semi-nude male model/actor). b. or flashed and then masked. garbage and waste disposal on islands 14 . the manufacturing or creation of a product or service or the safety or workers and/or the surrounding community and environment. condoms. A feature of sex in advertising is that the imagery used. The purpose of the imagery is to attract the attention of the potential customer or user. weapons. casinos.

Biopiracy and Bioprospecting e. d. copyright and trademark misuse. Ethical problems arising out of new technologies Examples: • Genetically-modified food and farm products. d. c. and Intellectual Property Rights  Deals with the ethical use of tangible and intangible investments related to any industry in the form of real properties and rights. Common Issues a. Patent.c. b. Patent. CRT radiaton. copyright and trademark infringements. processing and usage. animal testing. Intellectual Property Rights – refers to all rights to all the result of property control. Property Rights. Ethics of Property. Product testing ethics Examples: • Animal rights. use of economically disadvantaged groups such as students as test objects • In HRM. use of hi-tech devices in heritage hotels. Business intelligence and espionage 15 . the free-employment of HRM students on restaurants and hotels as on-the-job trainees in exchange of certificate and experience 5. or transferred to gain benefit. Employee raiding – practice of attracting key employees or all talented people regardless of the need to keep them away from competitors. Property – ownership of anything which can be controlled. Property Rights – refers to all inherent rights from the acquisition of a property. used. cell phone antenna and tower radiation • In HRM. mobile phones.

What are common unethical specific marketing strategies that most hotels and restaurants implement here in the Philippines in order to gain profit? 2. Give also examples. Can we consider some Philippine TV ads to be partly or maximal fallacy? Explain and support your answer. Do you think the employment of HRM students for free under the OJT or onthe-job training program is ethical or unethical Explain when it becomes ethical and when it becomes unethical? 3. Cite at least 5 most common problems encountered by the Philippine Hotel and Restaurant Industry under the human resource management ethics? 4.ASIAN INSTITUTE OF E-COMMERCE COLLEGE URDANETA CAMPUS Name: _____________________________ Course/Section : _____________________ Date : _____________________ Score : ____________________ ETHICS 01 Professional Ethics in Hotel & Restaurant Management SUMMING UP EXERCISE # 4 1. 16 .

Scott (2002). According to Jamier L. Three Major Areas Where Ethical Problems In Business Ethics Occur 1. in the process of persuading a prospective customer to buy the product. the feeling that a product or service has met the customer expectation. during and after a purchase. Ethical considerations are always at hand in every type of business activities and that therefore there is a need for business ethics. In providing service to the customers Customer service is the provision of service to customers before. Its importance varies by product. Misrepresentation and overpersuasion is the most common of such practices. It is in the process of providing services to the customers where many unethical practices occur. Top Hotel Complaints • • • • • • • • • • • • bed bugs dirty hotel no booking on arrival unhelpful staff incomplete details of amenities and facilities noisy room overcharging room rates and services poor room service overpriced phone charges minicab scam sub-standard restaurant inaccurate star rating 17 . customer service is a series of activities designed to enhance the level of customer satisfaction – that is. industry and customer.CHAPTER 4 BUSINESS ETHICS – THEORY AND PRACTICE ETHICAL PROBLEMS IN BUSINESS Unethical practices are committed most often during the process of marketing the product.

In an example in economics.it opposes the desire for mutual survival. In the treatment of competitors Competition is a contest between individuals. In setting price and wage Price controls are governmental impositions on the prices charged for goods and services in a market. .the success of one group is dependent on the failure of the other competing groups .2. 3. a niche. nations.tends to promote fear. the rationale being that the challenge is a zero-sum game . animals. the larger the effect. Business is often associated with competition as most companies are in competition with at least one other firm over the same group of customers. Competition may also exist at different sizes. Cooperative Competition . usually intended to maintain the affordability 18 focuses individuals/groups/organisms . It is “winner takes all”. As a result.the larger the competition. or a location of resources. .is based upon promoting mutual survival .“everyone wins”. b. the consequences of the competition would also vary.Cooperative competition against the environment. for territory.seeks to benefit an individual/group/organism by damaging and/or eliminating competing individuals.is a process where individuals compete to improve their level of happiness but compete in a cooperative manner through peaceful exchange and without violating other people. a "strike-first" mentality and embraces certain forms of trespass. groups. Two Types of Competition a. groups and/or organisms . Destructive Competition . etc. It arises whenever two or more parties strive for a goal which cannot be shared. a competition between two small stores would be considered small compared to competition between several mega-giants.

to prevent real wages from falling. price controls have often been imposed as part of a larger income policy package also employing wage controls and other regulatory elements. and to keep the real value of profit margins from falling. Business owners raise prices to protect profit margins from rising costs.of staple foods and goods. 19 . It can start either due to: a. This price/wage spiral interacts with inflationary expectations to produce long-lived inflationary process. alternately. Two Elements Price/Wage Spiral a. supply shocks. So "wages chase prices and prices chase wages. to insure an income for providers of certain goods. Wage-earners try to push their nominal after-tax wages upward to catch up with rising prices. such as an oil price hike. or. Rising labor productivity (the amount workers produce per hour) compensates employers for higher wages costs while allowing employees to receive rising real wages. high aggregate demand combined with near full employment b.unless tax brackets are indexed. and to prevent price gouging during shortages. while allowing the company's margin to stay the same. a taxable salary must increase faster than the CPI itself to result in an after-tax wage increase comparable to the increased cost of goods and services . The spiral is also weakened if labor productivity rises at a quick rate. b. The first element of the price/wage spiral does not apply if markets are relatively competitive. price ceiling – the maximum price that can be charged b. price floor – the minimum price that can be charged Historically." persisting even in the face of a (mild) recession. Price/Wage Spiral (also called the Wage/Price Spiral) represents a vicious circle process in which different sides of the wage bargain try to keep up with inflation to protect real incomes. Some argue that incomes policies or a severe recession is needed to stop the spiral. This process is one possible result of inflation. To maintain purchasing power equal to the rising costs reflected by a consumer price index (CPI). including nominal wage costs. Two Primary Forms Of Price Control a.

and fair dealing that professionalism requires him to do. honesty. a professional man exhibits the competence. 4. Man needs to be reminded that he is in business not just for today but for all the tomorrows that are yet to come. to apply his own standards of right or wrong in business transactions and to test them against the generally accepted norms of conduct in a civilized society. Through the process of providing service to his fellowmen. It provides an outlet for the religious to practice the teaching of their religion through their dealings with fellow human beings in the business world. Moral Aspect Business ethics needs to be considered also in the moral aspect because it provides opportunity for man to practice his morality. Engaging fair business practices to both (businessmen and customers) is the best way to ensure continued customer goodwill and patronage.FOUR ASPECTS OF BUSINESS ETHICS There are four aspects where business ethics should be observed. These are discussed below: 1. The profit making maybe always present in the business but service to the public should come first. 20 . 2. 3. Profit Aspect The last aspect where business ethics should be observed is in the making of profit. Professional Aspect Business ethics is a direct link to the service-oriented tenets of professionalism. This cloaks pretext business ethics with a definitely moral orientation. Religious Aspect Business ethics is valuable in converting religious idealism to more practical actions in the business world.

research on: 1. 2. Guidelines. ways or systems to develop an excellent customer service. ways or systems in setting price and wage ethically. ways or systems to develop a fair and ethical business competition. Guidelines. Guidelines. 21 .ASIAN INSTITUTE OF E-COMMERCE COLLEGE URDANETA CAMPUS Name: _____________________________ Course/Section : _____________________ Date : _____________________ Score : ____________________ ETHICS 01 Professional Ethics in Hotel & Restaurant Management SUMMING UP EXERCISE # 5 Using the Internet or related available books. 3.

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