Professional Documents
Culture Documents
In performing our assignment, we had to take the help and guideline of some respected
persons, who deserve our greatest gratitude. The completion of this assignment gives us much
pleasure. First and foremost, we thank our Creator, almighty God, who gave us the wisdom,
knowledge and understanding needed to compile this assignment. We would like to show our
gratitude to Dr. Darcia Roache for giving us a good guideline for assignment throughout
numerous consultations. We are grateful beyond measure to all who assisted with providing valid
information, which assisted us tremendously to achieve our objective for the overall presentation.
We must also extend special thanks to our classmates who have made valuable comments and
suggestions which gave us an inspiration to improve our assignment. We hope you enjoy
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Introduction
According to the Concise Oxford Dictionary ethics is defined as, “a set of moral
principles or rules of conduct.” Is ethics important to the operations of a business? Should the
or by the stakeholders? Many persons believe that personal ethics should govern business ethics,
some compare it to“a game of poker” that has unethical behaviour justified while others are of
the view that persons have to concede to certain business principles in order to uphold the image
of the company even if it goes against personal ethics. However,in the world of business, several
This project seeks to inform the reader of the importance of ethics in business
organizations. This is explained by providing information about moral and ethical theories,
describing the relationship between government, business and society and emphasise the ethical
treatment of employees and employers in the business organisation.In this project, examples
cited are related to Hotel Ethica, a member of the Hotel Industry of Jamaica. The term ‘team
members’, is used to refer to the persons who gained information about Hotel Ethica in order to
cite examples relevant to the project. The recommendations suggested are the intent of the team
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Background to Hotel Ethica
Hotel Ethica is a 200 room, all-inclusive resort located on the scenic north coast of the
island of Jamaica in a bay close to Montego Bay. It offers a wide range of services to its guests
on the shores of a calm beach with turquoise water. This is the destination of choice for families
looking for a getaway and to revitalize. Hotel Ethica offers the best facilities such as Jacuzzi,
sauna, freshwater swimming pool, gym and wellness centre with a range of different treatments
and messages. Guests comfort and entertainment are the hotel’s top priority as such it offers a
high quality all-inclusive service. The hotel offers a wide variety of dishes in the buffet
restaurant where guest get to sample the best cuisine prepared by expert chefs in the themed
restaurants.
Hotel Ethica ensures all its guest has an excellent time. The hotel has a gym, table tennis,
volleyball, windsurfing,kayaking, snorkeling, diving and other water activities. Engaging daily
and nightly entertainment is always provided. The hotel is ideally situated and guest can venture
out to discover Jamaica’s treasures in close proximity to duty free shopping, historic sites and
breathtaking views of the sunset. Hotel Ethica ensures that it has qualified, trained staff and only
the best are recruited. The hotel boasts 200 staff who are pleasant and professional. At Hotel
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Ethical Theories and Business Practices
Morality
According to Beauchamp & Bowie, (2000) morality is concerned with social practices or
norms which are believed to be either right or wrong and incorporate well-defined customs,
rules, principles, actions and intentions, etc. It’s what should be done for an action to be morally
acceptable by a group of people or society and is usually passed down culturally from generation
to generation. Morality concerns itself not only with self-interest but the interest and benefit of
everyone in the group. As a result the principles of morality do apply to businesses, more
specifically; Chief Executive Officers, managers, and other employees have moral obligations.
good? Or should companies concentrate only on maximizing shareholder returns within the
confines of the law? These two questions imply moral concepts which are subjected to a
company’s accepted values and social norms. However, the first of the two suggests that
companies, like people, should be held to moral standards. The latter implies a separation
between arbitrator and competitor: the government defines the legal boundaries while the
company conducts its activities for the greatest outcome within these boundaries.
The team members view this way of looking at morality as highly narrow-minded.
Instead of thinking of itself as an entity, which is what the questions above do, a business should
think of itself as collections of individuals working for a common interest because individuals
are motivated by moral purpose. Every employee must respect the natural rights of other
individuals, which includes honouring contracts, not engaging in fraud, not using coercion
against others, and honouring representations made to the local community. Additionally, the
team members believe that businesses should not support government economic interventions,
such as price supports (government assistance in maintaining the levels of market prices
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regardless of supply or demand), tariffs, and subsidies, even though doing so might result in
higher profits. This, the team members believe is a business’s moral responsibility.
The team members believe that living up to these ethical virtues will significantly aid in a
corporation’s pursuit of profit and that the free market does reward courteous, cooperative, open,
honest, realistic, trustworthy, creative, fair businesses. The team members believe that dishonesty
and cheating other businesses, misleading consumers, and mistreating their employees all have
serious adverse consequences. Additionally, the team members are of the opinion that in the long
run, profitable businesses tend to be operated in accordance with the basic ethical principles most
Beauchamp, Bowie and Arnold, (2008) stated that there are three (3) main approaches
relative to the study of Morality and Ethical theory. The first is called the scientific or descriptive
approach which is an approach most used in the social sciences and examines human behaviour
and conduct from an empirical perspective. This means a sociologist or psychologist may
observe and gather data about human behaviour over time and make certain conclusions.
However, they would not make any judgments as to what is morally right or wrong nor would
they prescribe how humans ought to behave. The second is the Conceptual approach which
examines the significant terms in ethical theory and their meaning as also how they relate to each
other analytically. Conceptual problems are also identified and distinguished. The final one is the
Normative (prescriptive) approach which deals with norms (standards) and prescribing how
human beings ought to behave, not just describing how they do, in fact, behave. The Normative
approach of ethical theory encompasses the making of moral judgments rather than just the
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Clearly, neither the scientific nor conceptual approach to morality defines or prescribes
how human beings ought to behave nor do they make any judgments as to what should be
morally good or bad. Instead, they both expose the concept of morality from a theoretical and
empirical perspective. From the view point of the team members both of these approaches are
morality leads to better business ethics; which is the study of business situations, activities, and
The team members believe, however, that it is important for an organization to distinctly
outline its rules and policies on the principles of morality and ethical values. These are
considered to be obligations of what ought to be done in the interest of good morals, ethical
responsibility and at the same time maximizing profit. Furthermore, the rules and policies that
govern an organization must be that which can be endorsed by everyone in the organization. This
universal endorsement by rational persons is what enables Kant to say that everyone is both
subject and sovereign with respect to the rules that govern them. This normative approach to
morality and business ethics is a Kantian theory to the organizational design of a business firm
endorsed by the team members. The following are some principles the team members believe
1. Businesses should consider the interests of all the affected stakeholders in any decision it
makes.
2. Businesses should ensure that those affected by the firm’s rules and policies participate in
the determination of those rules and policies before they are implemented.
3. When a situation arises where it appears that the interest of one set of stakeholders must
be subordinated to the interests of another set of stakeholders, that decision should not be
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made solely on the grounds that there is a greater number of a stakeholder in one group
Virtue Ethics
Dobson (2007) posited that the fundamentals of integrating ethical standards in the
The action-based approach is the traditional way of incorporating ethics into a business by
actions. These rules or policies are generally outlined in the company’s codes of ethics, or
code of conduct. On the Contrary, whilst the action-based approach focuses on rules
governing action, the agent-based approach focuses on the fundamental character and
motivations of the individual agent. As a result, the agent-based approach does not limit
moral behaviour to the adherence of rules or policies but rather involves the individual
rationally pursuing moral excellence as a goal in and of itself. In essence, ethics becomes
ethics theory. In essence, the 'virtue' in virtue-ethics is defined as some desirable character
trait, such as courage, that lies between two extremes, such as rashness and cowardice. Thus
the 'virtuous' agent is involved in a continual quest to find balance in decision-making. Such
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an agent does not apply any specific 'rules' in making decisions, but rather attempts to make
decisions that are consistent with the pursuit of a particular kind of excellence that in turn
entails exercising sound moral judgment guided by such 'virtues' as courage, wisdom,
Patel (nd) stated that virtue ethics is currently one of three major approaches in
normative ethics. It may, initially, be identified as the one that emphasizes the virtues, or
moral character, in contrast to the approach that emphasizes duties or rules (deontology) or
that which emphasizes the consequences of actions (consequentialism). For example, suppose
it is obvious that someone in need should be helped. A utilitarian will point to the fact that the
deontologist points to the fact that, in helping the one in need, the agent is acting in
accordance with a moral rule such as “Do unto others as you would be done by”. A virtue
ethicist points to the fact that helping the person is exercising the character trait of
benevolence. All the three moral theories will agree that helping the person in need is
ethically correct.
Aristotle is an early developer of virtue ethics. Aristotle writes, “The virtue of man
also will be the state of character which makes a man good and which makes him do his own
work well“. The aim is to perform the right action, with the right person, to the right extent, at
the right time, and in the right way. Although this is the objective, Aristotle considers
achieving this goodness as rare, laudable, and noble. Aristotle believes people are naturally
suited to do the right thing, but do not automatically develop such inclinations to do “good”.
He strongly believes you are what you do, so in that respect the ideal virtuous person does the
right thing because she desires to be virtuous. One cannot be accidentally or coincidentally
virtuous.The virtue ethics approach focuses on the “integrity” of the moral actor. The goal
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with this approach is to be a good person. In virtue ethics, one’s character emerges from a
“relevant moral community”. Therefore, it is important to account for the moral agent’s
for individuals who work within a professional community that has developed high standards
The team members believe that businesses should establish and implement a system of
value standards which are used as a guide to develop their employees with the attitudes,
dispositions and character traits that enable each employee to be and to act in ways that develop
these potentials. In order to promote a culture and climate of virtue, businesses should
communicate their ethical expectations and conveys a sense of identity to their employees that
aid in guiding their decisions and that will elicit their loyalty. Loyalty produces partiality,
interest, and personal identification with a firm. An appropriate tone needs to be set at the top
and time devoted to discussing the importance of virtues and values. The team members is of the
opinion that businesses should take the time needed to express what the company finds to be
meaningful, how the employees should be functioning, and how the firm wants to be regarded
This enables them to pursue the ideals adopted by the company. Honesty, courage,
compassion, generosity, fidelity, integrity, fairness, self-control, and prudence are all examples
of virtues that should be encouraged by all businesses. How does a business help to develop
virtues in its employees? Virtues are developed through learning and through practice. As the
ancient philosopher Aristotle suggested, a person can improve his or her character by practicing
self-discipline, while a good character can be corrupted by repeated self-indulgence. Just as the
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ability to run a marathon develops through much training and practice, so too does our capacity
Virtues are habits. That is, once they are acquired, they become characteristic of a person.
For example, a person who has developed the virtue of generosity is often referred to as a
generous person because he or she tends to be generous in all circumstances. Moreover, a person
who has developed virtues will be naturally disposed to act in ways that are consistent with
moral principles. The virtuous person is the ethical person. At the heart of the virtue approach to
ethics is the idea of "community". A person's character traits are not developed in isolation, but
within and by the communities to which he or she belongs, including family, church, school, and
other private and public associations. The team members encourage employees to become
members of special clubs and non-profit organizations and other social units which are based on
virtue ethics. The team members believe that the moral life, then, is not simply a matter of
following moral rules and of learning to apply them to specific situations. The moral life is also a
matter of trying to determine the kind of people we should be and of attending to the
Right Theories
The rights theory states that the best method to deal with ethical issues is to form a basis
of obligations in order to justify every individual’s entitlement to human rights (Shaw, 2010).
Besides that, the rights theory also insists that human rights should be independent from the
influence of other factors. Human right is simply the natural rights belonging to every person by
virtue of being a human being (Shaw, 2010). There are two types of human rights; positive and
negative rights. Positive rights are obligations to provide goods and services to other people
(Jennings, 2008). On the other hand, negative rights are obligations imposed on people to stop
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them from interfering with other people’s freedom of action (Jennings, 2008). One of the major
arguments pertaining to the rights theory is the lack of hierarchy to determine which rights has
According to internet article ‘Rights Theories: the General Approach’ (nd), theories of
rights can be realist or constructivist. In relation to the realist views, rights holders have rights as
one of their intrinsic features. We have to recognize and respect those rights, or struggle for them
to be respected. According to constructivist views, the best theory regarding how to behave
towards beings who are morally considerable is to grant them rights and to respect those rights or
to struggle for them to be respected. Constructivist theory does not accept that rights holders
have rights as something intrinsic. Rather, it claims that individuals choose to grant them to each
Rights theories are ordinarily deontological theories, that is, they maintain that there are
norms we should always obey irrespective of circumstance. In fact, they should be obeyed
whenever the opportunity of doing so appears, even when it means that this or other norms won’t
theories of rights. These theories entail that we should maximize the (number of) rights that are
respected and minimize the (number of) rights violated, regardless of whether it is we or others
who respect or violate them and whether the violation happens now or in the future.
In contrast, standard theories of rights, deontological ones, claim that we should respect a
right now even if it means we won’t be able to respect other rights later, or even if it means that
other people won’t be able to respect the rights of others. There are anthropocentric theories of
rights according to which only humans can be considered rights holders. However, many
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theories contest this view and contend that nonhuman animals should also be considered rights
holders. The team members believe that business should conform to all the policies and
principles as it relates to the rights of its employs and should incorporate universally established
human rights and diversity policies. The team membersare of the opinion that a business should
endeavour to operate within the confines of the Law relating to its employees and believe that a
business should view its employees as their most important resource. A business should take
seriously the rights of all its employees in the workplace -- including the right to privacy, fair
compensation, and freedom from discrimination. The team members also believe a job applicant
also has certain rights even prior to being hired as an employee. Those rights include the right to
be free from discrimination based on age, gender, race, national origin, or religion during the
hiring process.
The team members also embrace an employee’s right to privacy in the workplace. This
right to privacy applies to the employee's personal possessions, including handbags or briefcases,
storage lockers accessible only by the employee, and private mail addressed only to employee.
Employees also have a right to privacy in their telephone conversations or voicemail messages.
However, it must be noted that employees have very limited rights to privacy in their e-mail
messages and Internet usage while using a business computer system. Other important employee
Right to a safe workplace free of dangerous conditions, toxic substances, and other
Right to be free from retaliation for filing a claim or complaint against an employer
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Right to fair wages for work performed.
The stockholder theory states that there is only one social responsibility of business: to
use its resources to engage in activities designed to increase its profits so long as it operates
within the confines of the Law. This theory was introduced by Milton Friedman, a prominent
economist and Nobel Prize winner, who believed that the corporations’ only responsibility was
to its stockholders and that the latter are interested in profit maximization. Therefore, leaders
Another extreme is the stakeholder theory by R. Edward Freeman, which focuses on who
that leaders are obligated to all stakeholders: customers, suppliers, management, owners,
employees, and the local community, those that are vital to the survival and success of the
corporation. We all have a moral obligation toward other human beings. Corporations that make
profits should be held socially responsible for contributing to the improvement of society
financially and in other ways, e.g. recycling of products and contributing to worthy causes
regularly and frequently, rather than waiting for a disaster to occur and then contributing with a
theory, also known as Kantian capitalism and added that when corporations follow the
stockholder theory, they fail to recognize and respect the needs of those who contribute to their
existence and place themselves in a position to self-destruct through negligence and selfishness.
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The team members believe that businesses should regard both its stakeholders and
stockholders as very important to the survival of its business. However, unlike what some
companies may do when faced with severe hardship, by laying off people, in line with the
stockholder theory,the team members are of the opinion that businesses should have more
concern for employees’ needs and try to reach some form of compromise and in so doing,
demonstrate their concern for the families of their employees. The team members are also of the
opinion that the result is usually favourable to both the business and its employees.
When Frederick Winslow Taylor’s views on scientific management were being put into
practice by business organizations, owners were the only stakeholders. Leaders were obliged to
focus on profits maximization, and employees had to work hard for unsatisfactory wages.
Environmental issues were not a concern, and customers bought what was offered in the market.
Today, firms have to deal with the bargaining power of employees, trade unions, customers,
suppliers, etc. and there are environmental concerns, government regulations, etc. Unfortunately,
many firms still focus (mainly) on profits and pay attention to stakeholder needs only when
pressured to do so.
In modern days, the world has witnessed the increasing importance and visibility of a
range of initiatives led by businesses, social organizations and governments, with the stated aim
of compelling companies to behave in more socially responsible and accountable ways. This is a
new development for many parts of the business world. Previously, the government was assumed
to lead standard setting and behavioural norms for businesses in relation to most categories of
stakeholders. When community organizations and interest groups wanted to change business
behaviour, they focused on changing the law. From the 1990s the focus changed, reflected in the
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emergence of new alliances and regimes of influence over business norms, linking together
Arnold (2009) identifies the stockholders, employees, suppliers, managers, local community and
stakeholders are included, for example financial institutions and creditors. The team members
viewed that Hotel Ethica believed that the stakeholders of any business organization represent
the backbone and support system needed to achieve its long term and short term goals. There are
documents, as well as, legal duties established or approved by the government represented in an
Act or Law. Thus, there has to be a climate of trust between the business and all stakeholders to
The team members consider Hotel Ethica as a progressive, tourist accommodation that
operates within the confines of the regulations of the 1955 Jamaica Tourist Board Act. In
Section 23 of the Tourist Board Act(1955) it states that, “Every application for a licence under
this Act in respect of Tourist accommodation, shall be made to the Board in such form and
manner as may be prescribed or approved by the Board.” The legal requirements of hotels
obtaining a tourist accommodation licence in Jamaica stipulates that, “all entities operating in the
tourism sector must have a JTB (Jamaica Tourist Board) license, all operators using the beach or
beach front for environmental activities must apply for beach licences, all building or sites must
have Natural Conservation Authority permits, all water sports operators must have Maritime
Authority licences and fisheries licences, a Public Health Certificate and if there are contract
carriage operators transporting the guests they should have PPV licence.” (Licensing-Tourism
Product Development Company, (nd). The team members are of the view that managers of Hotel
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Ethica ensure that they fulfil their moral and ethical obligations by complying with the
The Government, as a stakeholder, requires that business entities accomplish their legal
obligations in the following ways. The company must be a member of a registered financial
institution, obtain a tax registration number from the Inland Revenue Services Department,
register the company with the Companies Office of Jamaica and submit an Articles of
Incorporation. Other financial obligations include: submission of annual company tax based on
audited financial report, monthly statutory deductions for employer and employees such as
Income tax, Education tax, National Insurance Scheme tax and National Housing Trust
Contributions. The head of the accounting department would monitor the calculation and
To minimize the occurrence of fraudulent actions, internal and external auditors are
required to carefully examine the financial statements of the company and express an opinion of
it, whether or not it is true and fair. The right of the stakeholder or shareholder to accurate
information ought to be protected. Thus the need for codes that govern the ethics of the business
practices. The code also guides the leadership, accountability of managers and employees,
remuneration process and relations with shareholders. This process protects the users of the
the team members, Hotel Ethicais controlled by a Board of Directors who has a fiduciary
position to oversee the economic development of the company, maximize wealth for the
shareholders, show reasonable competence and prepare financial statements. This type of
relationship between the stakeholders and the company is viewed as corporate governance.
Corporate governance refers to the set of systems, principles and processes by which a
company is governed. They provide the guidelines as to how the company can be directed or
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controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the
company and is also beneficial for all stakeholders in the long term. Stakeholders in this case
would include everyone ranging from the board of directors, management, shareholders to
customers, employees and society. The management of the company hence assumes the role of a
any company and mitigate the risk of ethical or legal problems that may occur. In the article,Why
is Corporate Governance Important by Leo Sun, it was cited that, “failed energy giant Enron, and
its bankrupt employees and shareholders, is a prime argument for the importance of solid
the government or not being transparent in its policies, then there will be a tainted image of the
company by society which would decrease the likelihood of attracting new investors.
It is therefore the view of the team members that companies need to be accountable to
their stakeholders and use available resources and expertise to improve the level of efficiency,
production and overall performance. One of the ways of achieving and maintaining optimal
corporate governance in a company is to establish an approved set of policies that govern the
norms and values upheld by the organization. A Code of Ethics or a Code of Conduct is used to
accomplish this task. This provides a platform that guides the decisions of stakeholders,
identifies acceptable and unacceptable business practices and describes the roles and
An individual who aims to be successful should act in such manner; likewise a business
that aims to be successful should have a brand that represents such. The team members saw that
Hotel Ethica was of the view that companies that promote positive values, such as integrity and
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fairness, and use such in developing their business strategies and operational plans often have a
good reputation in society and thus increase market share. The Arthur W. Page Society (2013)
has concluded that, “Each enterprise must have a clear sense of what defines it- why it exists,
what it believes, how it acts and what value it creates and how- and that definition must be
translated into action across the enterprise on a consistent basis. Corporate character describes
the unique identity that distinguishes each enterprise-the characteristics that define its very
improve the level of transparency. This will allow persons to acknowledge that the purpose of
the company is not merely the creation of wealth but satisfying the welfare of all stakeholders,
through a customer-friendly environment. This shows that businesses have a corporate social
responsibility. Taylor (2015) claims that, “Corporate social responsibility refers to a business
practice that involves participating in initiatives that benefit society”. Some persons view this
concept as being time consuming and irrelevant to development of the good ethical behaviour at
an organization.
Milton Friedman, a philosopher and economist, in his 1970 article states that, “ The
social responsibility of (a) business is to increase its profits.” He further explained that a
business is not an individual therefore it cannot possibly have a moral responsibility and the
social problems that a society experiences should be addressed by the government. The managers
should manage the company for the stockholders and allow the persons elected by government to
find solutions for society’s problems. Friedman (1970) refers to corporate social responsibility as
“ a fundamentally subversive doctrine” and in a free society , “ there is only one social
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profits so long as it stays within the rules of the game, which is to say, engages in open and free
We believe that businesses do impact the society and most, if not all contribute to
pollution, contribute to the taxes of a country, provide employment for citizens and rely on the
financial support from investors, customers and suppliers. Hence, it would be relevant for
businesses to have a corporate social responsibility. Dudovskiy (2012) cites Archie Carroll’s
supportive then means that profitability and obedience to the law are foremost conditions
when discussing the firm’s ethics and the extent to which it supports the society in which
Carroll has subdivided corporate social responsibility into four levels, namely
economical, legal, ethical and philanthropic, with economical being the lowest level of the
pyramid and philanthropic at the highest. At the economic level, the company has a
responsibility to be profitable since this is the foundation and all other levels are dependent on
economic growth. At the legal level, the company has a moral obligation according to the moral
standards of society to obey the law, while at the ethical level, the company has an ethical
obligation to do what is right and fair. Then at the philanthropic level, the company has a
The Triple Bottom Line principle conceptualized by John Ellington supports the
economic, environmental and social value. This concept helps to sustain the company and
prevent the decline of the social, political and economic structure of a company.Therefore, if a
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company uses some of its profits to assist with mentorship programs for at-risk youth in a
community, this would attract more employees, customers and investors to the corporation. The
team members propose that some of the corporate social responsibilities of Hotel Ethica may
include: providing resource or donations to community programs adhere to the labour laws so
that employees are treated fairly and aim to create an environmentally friendly society. If the
policies that govern an organization are based on positive values which seek to benefit the
stakeholders, and create an environment that is financially, socially and ethically sound, it will
In order to maintain industrial peace and work in the spirit of harmony and cooperation
employee and employer relations should be governed by law. Basic rights of employees should
be respected by the employers and the employees should render their obligations to the
employers. Once an Employment relation is formed there are certain obligations that are imposed
on an employer. Such obligations may serve as the rights of the employee by default. Employers
are responsible for ensuring that all their employees receive certain employment rights.
Employees have a responsibility to the organization to which they are employed. They are
expected to be fully committed to acting in the best interest of the organization, to be honest and
loyal and do nothing that will bring the organization into disrepute or affect its image.Below are
a few of the documented rights of the employees and the obligations of the employers at Hotel
1. A female worker is entitled to three (3) paid maternity leave, while in the employ of the
same employer
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2. Every permanent employee is entitled to holiday with Pay
5. To pay the employees’ wages and other necessary payments that should be made.
7. To take all the necessary occupational safety and health measures and to abide by the
measures.
9. Provide protective clothing and equipment for employees, particularly those working in
10. Employers should have written grievance and disciplinary procedures that will serve as a
2. To follow instructions given by the employer based on the terms of the contract and work
rules
3. To handle with due care all instruments and tools entrusted to him for work.
5. To give all proper aid when an accident occurs or an imminent danger threatens life or
property in his place of work without endangering his safety and health.
6. To inform the employer immediately of any act which endangers himself or his fellow
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7. To observe the provisions of this proclamation, collective agreements, work rules and
management. While great leadership is often measured by one’s ability to lead and mentor their
employees, it’s also important to remember that as an employer and manager it is a requirement
to treat all employees equally and fairly. There are a range of employment laws and regulations
that managers need to be aware of such as those that protect employees against discrimination
and sexual harassment, wage and overtime abuse and more. If they are ignored these and the
business run the risk of creating an environment for disgruntled employees and the potential for a
government investigation or lawsuit. Based on the culture at Hotel Ethica all new employees
receive mandatory training in their respective areas for at least a period of two weeks. Every new
employee then receives a copy of the company’s hand book which outlines the rules and
regulations concerning conduct, terms and condition of employment to include but not limited to
termination, probation, sick leave, vacation and tips. This we believe is a good ethical practice as
it ensures that employees are aware of their policies and procedures as well as their rights.
Ethical decisions are "both morally and legally acceptable to the larger community," writes
scholar Jones (1991). As employee advocates and guardians of corporate values and standards,
human resource managers are ethically bound to oversee the recruitment process with honesty,
consistency and objectivity. Human resources should protect the ethical integrity of every step in
the hiring process to help managers avoid actions that could put the organization at risk.
Based on the culture at Hotel Ethica their hiring process is conducted through the Human
Resources Department. When a position becomes available within a specific department the
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human resource manager is advised by the head of that department and the position is posted
either internally or externally. When this position is posted internally the hotel administration
only does this as a formality as they are well aware that the position is either filled or is to be
filled by someone who was already identified. This is unethical as this only shows a lack of
honesty and fair dealings that needs to be exercised in relationships between employer and
employee.
Another observation with their recruitment and hiring process is as it relates to their
selection of candidates for specific positions. Their records show that positions for Executive
Chefs for example were not extended to Jamaican nationals although qualified, but is instead
given to ex-partitas. In addition should a national be given the opportunity they are paid far less.
This is quite unethical as this shows that the company is obviously discriminating against
national applicants. Good business practice by an organization would ensure that there are no
indication of bias in the hiring process as this can lead to serious legal issues.
The rate of turnover at Hotel Ethica is quite high. 30 % of their employees spend on
average 6-8 months in their positions. Reasons cited for this included the lack of resources as
well as the volume of work that they are expected to do and failure to properly compensate.
Faced with this problem coupled with their refusal to pay these employees fairly, Hotel Ethica
has sought to hire interns who are paid minimum wage and is expected to do the same work that
a full time employee would have done. This practice is unethical as this may be considered as
exploitation. Inhumane work conditions are not only unethical but also bad for business creating
a culture of distrust.
Discrimination based on a person’s ethnicity or culture may impact the workplace negatively. At
Hotel Ethica there have been practices of redundancy under the pretence that a particular position
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is no longer needed or “does not align with the company’s goals”, however the company will
hire an individual and task them with the same responsibilities but creates a different title for that
individual. This is an unethical practice and does not foster an atmosphere of cooperation and
harmony in the workplace.Unethical practices in the workplace can create legal issues, affect
employee’s performance and relations and impacts on an organizations image and questions their
credibility.
Privacy
Issues with privacy arise in Hotel Ethica when employers invade the employees’ rights to
privacy, and by privacy we mean the rights of the employee to keep their personal matters and
relationships secret. As cited by Johnson (2013), ethical issues arise with the gathering of
information, assessing its accuracy, correcting it and disclosing it. Ways in which the hotel
invade the privacy of staff include with the use of technology and by requesting personal
information during recruitment process such as fingerprints, background checks, AIDS test or
medical screening. However, for management, the reasons and benefits sited for monitoring its
employees include lower operating cost and high productive rate and, that background checks are
done to ensure information supplied by employees are valid and accurate. The question of ethics
then is; do the employees’ rights to privacy outweigh the management’s right to run the hotel as
they desire.
With the increased use of technology this has created privacy issues because Hotel Ethica
has several ways to monitor or invade the privacy of employees, mainly through surveillance,
email and social media. Managers at the hotel use the software program Investigator 2.0 to track
computer usage, unaware to employees. With the widespread use of social media sites such as
Facebook and Twitter, management monitors employees on and off the job. These sites are used
time, employees were of the view that management should not infringe on their personal lives
when they are not at work as stated by Hwang, Kikuyama, & Zeng (2010). According to
Kantianism, act so that you always treat both yourself and other people as ends in themselves,
and never as a means to an end, therefore, computer monitoring is wrong because managers are
monitoring their subordinates as a means to earning a higher profit not as ends in themselves.
Other ways in which the hotel invades employees’ privacy is with the use of cameras.
These are widely used in offices and at various locations on the compound to monitor activities;
this has contributed to undue stress for employees who are constantly being watched.
Management also have access to employees’ personal, file which contains private information
some of which is shared with external entities such as banks. Fingerprints, AIDS test and
medical screening is required of all employee but most employee is of the view that these should
be requested for certain positions and job types and is considered excessive and invasive for
some positions for which they are not relevant; they are aware that laws and regulations exist to
protect them against such unethical practices but for fear of dismissal, they usually comply. It is
thought that some of the ways the hotel monitor employees privacy are legal but can be
considered unethical.
To solve the issue with privacy at the hotel concerning technology, clear policies
regarding the proper use of technology and the types of monitoring needs to be established and
communicated. In relation to surveillance, this should be minimal and for the benefit of the job.
There should be no secret monitoring so, to monitor internet use at work employees could use
filtering software to filter sites not allowed to be visited during work hours. Employees must be
made aware and have access to all information obtained about them. Management must consider
their limits in dealing with privacy issues in relation to employees of the hotel and must ensure
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that everything is done ethically and lawfully. They must therefore develop an accountable
Whistleblowing
his employer in the public’s interest this is classified as Whistleblowing, or as it is more formally
known, 'making a disclosure in the public interest'. Whistleblowing can be seen as an unselfish
act or one of disloyalty to an organization. In recent times, laws have been enacted to protect
their staff and business operations. The management of Hotel Ethica knows the implication that
can result if an employee blows the whistle; therefore, Manuals are available to guide employees
about the process of reporting wrongdoing or misconduct internally. However, employees were
not informed about making reports externally, nevertheless, employees need to be advised that
before they blow the whistle they should ensure that they follow the prescribed process. They
should ensure that the breech is real and has substantial evidence to substantiate the claim. Once
they have reasonable grounds to believe the public is at risk they should make the disclosure
internally to someone who is able to correct the breech that was committed. If their supervisor,
General Manager or person in authority does not act to rectify or try to rectify the breech then the
employee can contact the appropriate authorities, in some cases it might be the Bureau of
Standard or Jamaica Tourist Board. If the worker feels unable to make the disclosure internally,
it should be made to a prescribed person, so that the employee’s rights are protected.
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Whistle-blowing - Public Interest Disclosure (nd), stated that to qualify as a disclosure,
one or more of the following matters should either be happening, has taken place, or is likely to
1. A criminal offence
3. A miscarriage of justice
A survey was conducted at the hotel which revealed that 70% of the workers supported
whistle blowing while 25% stated that they saw whistle blowers as “informers” or disloyal to the
hotel and would not support such practice. Most employees were of the view that if the engineers
at the water sanitation plant at the hotel uncovered safety issues they would hope the engineers
would have sufficient opportunity to report this without fear of reprisal; avoiding danger and
incident and allowing for the hotel to assess and improve its practices.
Employees should be aware that if they blow the whistle and is dismissed or victimized
for doing so, they can claim unfair dismissal. In order to be protected or compensated the
employee will have to show that he made a disclosure, that he followed the correct disclosure
procedure and that he was dismissed or suffered a detriment as a result of making the disclosure.
However, a tribunal will have the power to reduce any compensation by up to 25% if they think
the disclosure was made in "bad faith".For whistle blowing to be adverted, the hotel management
must not only be cognizant of its implication on businesses but should institute adequate policies
and guidelines to report wrongdoings. The use of telephone hotlines is one such provision the
hotel could institute as some workers might not want to appear in person due to the view that
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they are being disloyal to the company. The company should ensure that they act on reports of
wrongdoing to mitigate against any consequences that may occur as there are authorities in place
to ensure that rules and regulations are adhered to in protecting the publics’ interest.
In this global economy that now exist, diversity or variety as the word implies, is very
beneficial in all organizations and is even more critical in the Hotel Industry. Reynolds & Media.
(nd) mentioned the fact that the level of diversity within a hotel will determine the level of
discrimination or favouritism. However, employees should be treated fairly and with equality
regardless of age, gender, sexual orientation, disability, marital status, pregnancy, ethnicity, race,
economic standing, etc. This is important to the principles of ethical business and ethical
organizations.
In Hotel Ethica, the Assistant General Manager was employed from the United States of
America, he is Caucasian and he was cultured from home to believe that whites are superior.
When he took up the position as Assistant General Manager he was not aware that he would be
working with a coloured General Manager. At first he resented the idea and did not perform his
duties professionally which affected lower level staff as well as the image of the hotel. He soon
came to realize that the belief he hold was wrong and unethical. Guest observed his crudeness
and reported him to the General Manager who was a person who encouraged creativity and
effective problem solving among workers. The reality was that guest from various cultures
stayed at this first-class hotel and having a diverse employee base made for easier interact. The
Assistant General Manager therefore came to understand and accept the importance of equal
employment opportunity.
Notwithstanding, the Assistant General Manager had his share of problems when he first
came to the hotel, as staff were of the view that he was aged, racist and suffered from a
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disability, additionally, they thought someone could have been identified internally who was
suitable to fill the post. He was employed due to his years of experience in the hotel industry and
he had a proven track record to show; he was just not use to having a coloured manager. His
disability was that he walked with a limp but because the hotel also catered for disabled guest,
resolution, Hotel Ethica should include a standard for diversity and non-discrimination practices
in their code of ethics that employees would be expected to sign off on to show acceptance of the
hotel’s policies. Training sessions could also be conducted for management and its employees in
understanding how to deal with conflicts that may result from discrimination and diversity.
Management must accept the fact that diversity must be welcomed and embraced if the hotel is
According to Smith (nd) insider trading is the practice of using important information that
has not been made public to execute trading decisions. It gives traders an unfair advantage over
others and most forms of insider trading are illegal. Many investors are tempted to make quick
returns from insider trading, but doing so can be dangerous. In most cases, these individuals play
an important role in the decision making of the financial or investment activity of the business.
They may sometimes hold the positions of financial directors, company officers, or persons who
are basically responsible for the securities trading. Often times, people within the stock market
community refer to insider trading as unethical or corrupt based on the fear that trading hurts or
weaken the stock exchange. Insider trading is often understood as being illegal or is of bad
practices in the business market, and has both a legal and illegal side to it. There are a variety of
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1. Members of an organization purchasing a security. Employees or members of publicly
traded companies are in key positions to access information that would not otherwise be
available to the general public. Some of them buy and sell securities based on this
information and hope to profit from it when the news is eventually released. Employees
are given stock options so there are legal instances where they can purchase shares.
However, the rules are complicated and the line is often blurred between what is a legal
brokers are but a few of the consultants who have access to confidential documents of their
corporate clients. They may choose to abuse this privilege as an opportunity to make a
share information within their own circles that is not shared with Wall Street and the
general public. Sometimes these disclosures are made innocently, but other times they are
made with the intention of allowing their friends to trade securities with an advantage that
other investors would not have. Employees may give these tips to help out a friend in a
tough time or they may be asking their friends to pay them a small incentive. Employees
may trade through their friends and acquaintances since they are less likely to be
confidential information through the execution of their duties. They may conduct insider
trading with this information this kind of behaviour by government officials usually falls
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5. Hackers, corporate spies, and other thieves. Clever criminals find a number of ways to
gain access to corporate information which they can use to conduct securities fraud.
The team members believe that it is legal for the owners of Hotel Ethica to trade stocks
and security of their own. Insider trading practice can also deteriorate the investors’
confidence that they may have on securities of the company. Insider trading in the Hotel
Industry has lately become an issue in society and refers legally to the trading activities and
the non-activities that are carried out by the use of sensitive information that is not accessible
There has been only a little detail on ethical issues that are associated with Insider
Trading, including tax payer which has an adverse effect on the economy, by providing a less
efficient market, such as the loss of profit by shareholders. The government may provide its
resources with a certain benefit and cost to police insider trading to prevent criminal activities.
An often time, insider trading is seen as a victimless crime. However, it can be a deep problem
that is dealt with by many organizations; but nevertheless, this can be dealt with by punishing or
imposing some form of criminal liability for such act. Maloney and Mulherin (2003) indicated
that “trading is likely to deteriorate the stability and efficiency of the company’s stocks in the
market.”
The Hotel Industry has its complexity like other Industries and its main concern is that of
corruption which has become very popular over time. “Corruption is the abuse of entrusted
power for private gain. It can be classified as grand, petty and political, depending on the
amounts of money lost and the sector where it occurs” as defined in the article,What is
Corruption (2015). Corruption today has caused so much damage to this industry. It has also
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organized crime and is seen as an obstacle in the development of the economy, it weakens the
rules of laws and trust in the Tourist Industry. Corruption is a serious problem that can only be
This bad practice affects the hotel industry and unfortunately, contributes to a bad
economic life. From the business perspective of Insider Trading, there has been some ethical
issues with insider trading which may be viewed as an unethical behaviour. The practice of
Insider Trading is conducted mainly by “insiders” including the managers, workers or even the
directors, their main goals are to obtain monetary gains or some other benefits. As cited in the
“Insider trading laws are not that effective; they affect the freedom of business,
diminish innovation and reduce micro and macro efficiency. In essence, they also
are well developed, although arguments against are more problematical. Its
It is obvious that Insider Trading is a very problematic and complex issue, but organizations can
avoid these challenges, by obtaining their visions and knowledge of a keen investment decision
so that they will be able to understand the market in which they are operate.
According to the web article, What is Bribery and Corruption? (nd) “Bribery is a specific
offence which concerns the practice of offering something, usually money, to gain an illicit
advantage.”Bribery is the main form of corruption and is an illegal practice that has been a
problem in the hotel industry and other parts of the workforce; this however leads to a reduced
business climate whenever the society’s trust is put at risk. This negative practice may take the
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form of embezzlement and extortion that contributes to the reduction of business creditability
and profit, whenever one misuse their position to make secret profit or personal gain, however
the team members agree that taking part in any form of corruption and bribery can be a barrier to
It is critical that a corporation establish policies which prohibit its employees from
getting involved in any act of bribing or corruption. Corporations should not tolerate this
practice and should have clearly defined Anti-Bribery and Anti-Corruption Policy, which
provide the guidelines in details; therefore if employees should breach this policy then a punitive
action will be taken. The team members are aware that the practice of corruption and bribery
may not only affect the hotel industry but the society at large. One of the disadvantages is that it
gives the rich people the ability to get away with breaking the laws by paying off their money to
officials; this however helps to create an unjust society that prosecutes the poor while leaving the
rich invincible.
resource is tampered with and is misused, the company will suffer a decline in the development
of business and may also damage the image or reputation of the company. The team members
are of the opinion that practical advice should be given to all internal stakeholders on how to
comply with established Anti- Bribery policy, under such a policy; consequences of diversion
from these guidelines, should be explicitly explained. This policy should also be applicable to
directors and the managers of the business and if in the event that they are being convicted of a
bribe offence their tenure in the business will be immediately terminated. The team members
also share the opinion that businesses should value their images and reputation as well as
committed to providing the highest level of customers and employees trust and ethical standards.
The team members have realized that the risk of bribery is a growing concern to the public and
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as such, believe that businesses have a duty and responsibility of ensuring that it maintains a
highly ethical standard against corruption and bribery. It is the responsibility of managers to
ensure that all employees are informed of the policy and their responsibilities and must ensure
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Conclusion
Morality and Ethics are the building blocks of any society and therefore should be the
building block of our corporations. Ethics is undoubtedly very important to any organization
since it can mean the difference between the success and failure of a business. Businesses, and
especially the hotel industry, need to ensure that they are aware of the different concepts that
represent ethics and understand the various cultures that operate within the boundaries of their
establishments. They have a moral obligation to take care of the wellbeing of the various
stakeholders, who are very essential to the sustainability of the organization. Businesses
underestimate, to their own peril the importance of ethical treatment and the resultant
The Government and various stakeholders also have their part to play in ensuring that
businesses operate ethically within the law and in the public’s interest. Corporations must also
understand that the sustainability of the earth’s ecological and biological systems is central to the
survival of the human race and ultimately their businesses. As a result, ethical treatment of the
environment is not only the responsibility of consumers but more so the responsibility of
business. Henry Kravis states, “If you build that foundation, both the moral and the ethical
foundation, as well as the business foundation…then the building won't crumble.” It is important
for businesses not to allow greediness to corrupt their judgment. The enormous mistakes made
by Enron and Arthur Andersen shall serve as a lesson for those businesses which consider
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Recommendations
This project, though debatable, has presented the views of several theorists and
intentionally presented a plausible view of the fact that Corporate Social Responsibility and
Hospitality and Tourism industry continues to be a fast growing industry and based on the
predictions of economists, it will continue to grow. The team members have cited that Hotel
Ethica is experiencing a few challenges, and if not addressed might deter the growth of the
Hotel Ethica needs to review or completely change their hiring, firing and recruitment
processing policies to be aligned with established ethical standards in relation to the legal
internal issues such as: Discrimination in the workplace, updated work policies or
personal development.
Ensuring that Managers and Supervisors attend business ethics programme for small and
and strategy alignment, building the institution’s ethical reputation and improving the
These recommendations will foster a strong sense of social obligation and environmental
responsibility of Hotel Ethica, as they seek to become a globally recognized organization with a
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