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TRM 409- BUSINESS ETHICS REVIEW QUESTIONS

I. Assume that you are in charge of examining following problems what type of instruments would you use to measure the extent of the problem? What measures would you develop to combat each of the specific situations? Establishment of what type of institutions would you suggests? 1. Degree of inequality (unequal distribution of income and wealth) in the society. (Response: Ginis Index, pp.132-133). 2. Degree of job discrimination in an industry (or a specific organization/company). (Response: Average income comparisons, Lowest income group comparisons, Desirable occupation comparisons, pp. 314-316). What are the corrective measures? Advantages and shortcomings?

3. If advertising is providing information for consumers to make rational choices.


Price or Value: Quality Performance Components or Contents Availability Special offers Taste Packaging or Shape Guarantees or Warranties Safety Nutrition Independent Research Company-Sponsored Research New Ideas

4. If there are effective consumer protection measures. (The areas to be studied are the regulations for the protection of the consumer and the existence of institutions, public, private as well as NGOs, which will identify problems and control and regulate if the existing rules and regulations are being implemented). (See 4077 sayl Tketicinin Korunmas Hakkndaki Kanun). 1

5. If the code of ethics of a corporation has sufficient coverage: Issues to be addressed to can be summarized as: Other? Who should be in charge of overseeing compliance with the code of ethics? Compliance with laws and policies Ethical business conduct guidelines Business conduct committee Antitrust policy Conflict of interest policies Business courtesies policies Securities trading policies Accounting and auditing systems policies Competitive information policy Safety, health and environmental policies Transacting international business policies Doing business with government agencies policy Political contributions policy Lobbying policy

6. Does the firm adhere to the ethical principles in its international operations? Response: Ten International Rights that Serve to Establish a Moral Minimum for the Behavior of All International Agents ( Donaldsons Principles)

The right to freedom of physical movement The right to ownership of property The right to freedom from torture The right to fair trial The right to nondiscriminatory treatment The right to physical security The right to freedom of speech and association The right to minimal education The right to political participation The right to subsistence

Multinational Guidelines covering the areas of: Employment practices and policies Consumer protection Environmental protection Political payments and involvements Basic human rights and fundamental freedoms.

II. What measures should be taken for the promotion of the Global Code of Ethics for Tourism?

III. What are some of the most pervasive ethical problems faced by the tourism industry? What measures can be taken to solve these problems? Some problem areas can be listed as: Environmental problems caused by tourism. Sexual abuse of children in tourism. Violation of workers rights. Other problems cited in literature are: Bribery Political issues Questionable transfer of funds Cultural and/ or business practice differences Immoral entertainment (Fleckenstein and Huebsch, 1999, p.140). Promotional techniques forging a falsified view of the destination Pricing practices with the aim of attracting more numbers, larger market share and thus more profit (Wheeler 1995, pp. 42-46) Issues related to yield management Overbooking High employee turnover rates Underreporting of tips Abuse of illegal aliens Alcohol or drug abuses (Enghagen, 1990b, p.467).