3. COMPANY VALUES
The policies which a company opts in it’s
dealing and daily working
It is the perspective of seeing and dealing
with situations in appropriate manner
4. ETHICAL LEADERSHIP
Ethical Leadership is the application of the
set Company Values
It is related to taking actions which are just
and are not biased in any case
In Ethical Leadership Company values are
preferred rather than personal relationships
or personal interests
5. Ethical Decision Making requires…
Recognize ethical issues
Analyze in terms of appropriate ethical
principles
6. Objective of research…
The purpose of this paper is to:
review the literature on hospitality ethics
codes
offer practical suggestions for
practitioners for developing shared
values within the organization
7. Business Decisions needs to be Ethical
Because:-
They affect guests, employees, suppliers, friends, and
families (Peceri, 1997)
To deal with the differences in standards within the
workforce (Kapoor, 1991)
Serve as frameworks for employees’ behavior
Because traditional values have become less
prevalent, written codes of ethics may be necessary
(Beasley, 1995)
8. Problems Associated with Company values
& Ethical Leadership
Every individual is from different background and
has been groomed differently due to which:
Each Employee a company hires has a different
set of values which may contradict with the values
of the company
Things which appear to be right for one employee
may be considered unlawful by the other
9. Solution Regarding Company Values &
Ethical Leadership Issues
Companies should well define their Company Values to the Newly
Hired Employees in the Orientation
Frequent Workshops should be arranged for the Employees to
remind them formally for what are the demands of the company
and how they should be met in accordance with the Company
Values
To Ensure Ethical Leadership all the inductions in the company
should be on merit and strict check and balance should be
maintained to minimize the biased hiring's
10. A written code of shared values can serve as
a guideline for dealing with ethical dilemmas
Each Employee working Under or at lower
level should be treated equally and none of
them should be given extra privilege
Biasness should be avoided in any case
because this could demotivate staff resulting
in unethical leadership.
11. Benefits of Shared Values
Employee turnover can be reduced (Goli,
1990)
Result in more teamwork and long-term
success (Lefever & Reich, 1991)
To maintain consistency within their
organizations
13. A key to good management
Sharing of standards in an understandable
and clear manner
To cater the problems of communication
that may arise between existing managers
and young new hires
Necessary for ethical training of younger
employees
15. Self-centered and may be easily influenced
Operational values are formed from the
experience of success
Young and mature adults are persuaded by
changes in environment
Rewarding may successfully change
employees’ behavior
17. Concern for others
Teleological ethical system: the ends are more
important than the means
Deontological ethical system: the means are more
important than the ends
Organizations’ ethics codes and ethics instruction
must be based in operational realities and result in
benefits for those who follow the rules.
19. 1. What are our proclaimed ethical rules?
2. Is management committed to the ethical rules?
3. Do we hire people who will be able to live our ethical
rules?
4. What are the consequences (negative and positive)
for following our ethical rules?
5. Do we give raises and promotions for following our
ethical rules or for other reasons? If there are other
reasons, what are they?
6. Is there a difference between what we say and what
we do? If there is, what do we really want?
20. 7. How does our organization stack up to the following
Ethical Principles for Hospitality Managers?
• Honesty
• Integrity
• Trustworthiness
• Loyalty
• Fairness
• Concern and respect for others
• Commitment to excellence
• Leadership
• Reputation and morale
• Accountability
21. Successful implementation of ethical code
1. Identifying the ethical dilemma in a
case study
2. Determining possible solutions
3. Implementing the solution (Alderson)
23. The dilemmas are the result of behavior that breaks
ethical rules
A mean of convincing people to follow the ethical
rules in the first place so that they will not find
themselves or their employees in situations that have
negative consequences
Companies can communicate their values to diverse
workforces by encouraging discussions, asking
questions, rewarding positive behavior, and modeling
exemplary behaviors
Employee turnover is a result of incompatible values and can be reduced when employees correctly perceive that the norms of the operation protect their own personal values
As organizations globalize, their internal value systems may or may not be consistent with those of organizations of other cultures, which can undermine ethical behavior. A global ethic may be necessary for international hospitality companies (Guest Editorial, 1992).
Understanding the values of organizations and employees is necessary for good communication. Perceptions of unfairness, favoritism, and inconsistency in employee selection, supervision, promotion and performance may be the result of miscommunication.
For ethical awareness programs to be successful, communication must be open and honest (Axline, 1991), and the standards must be communicated in clear language understood by all (Kapoor, 1992).
Communication between existing managers and young new hires may be problematic without shared values, and organizations may need a mechanism for fostering understanding (McCleary &Vosburgh, 1990).
Younger employees need particular attention in terms of their higher tolerance for unethical behaviors, and ethical training is strongly recommended for all employees (Wong, 1998).
Ambitious new employees will embrace the values that they recognize to be effective means to career advancement. The first few months in their new positions are critical for developing the young managers’ sense of right and wrong and appropriate behavior in the organization.
If upper management talks about honesty and integrity but rewards financial success at the cost of honesty and integrity, young managers will embrace the reality of the reward and develop values consistent with the reward.
If the organization’s rules, policies, and resource allocations all support ethical business practices, ethical education will result in changed behaviors.
Organizations may more successfully change employee behaviors by providing incentives for change, such as promotions, raises, and commendations.
Ethical people are concerned for others and live their lives according to the highest level of human principles (Fisher, 1998).
Teleological ethical systems are based on the greatest good for the greatest number (the ends are more important than the means). A teleological approach to ethics requires identifying consequences of actions to all stakeholders as a means of decision-making and would perhaps have more value for the hospitality industry (Malloy & Fennell, 1998).
The deontological approach to ethics is not realistic in the hospitality industry. Young managers are not fully morally developed and more mature managers have often been found to be morally unsophisticated. To expect managers to follow ethical rules because it is their duty does not recognize that today, ethical rules for many have no real meaning.
If hospitality organizations seriously desire to be committed to ethical business practices they must begin with a self-analysis of their operational values. They must ask themselves the following difficult questions:
To successfully implement an ethics code it is necessary to introduce it and foster an awareness of ethical situations with the entire staff. Management and workers can be taught the four-step method of problem solving by:
Case studies and lectures can help employees to match appropriate decisions and behaviors to various situations (Axline, 1991).