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Rhode Island College
Digital Commons @ RIC
Faculty Publications Faculty Books and Publications
2011
The Carlson Company and Global Corporate
Citizenship: The protection of children in the travel
and tourism industry
Robyn Linde
Rhode Island College, [email protected]
H Richard Eisenbeis
Hasan School of Business, [email protected]
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Linde, Robyn and Dick Eisenbeis. “The Carlson Company and
Global Corporate Citizenship: The protection of children in the
travel
and tourism industry,” Case Research Journal (2011).
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1
Linde, Robyn and Dick Eisenbeis. “The Carlson Company and
Global Corporate Citizenship: The
protection of children in the travel and tourism industry,” Case
Research Journal (2011).
The Carlson Company and Global Corporate Citizenship: The
protection of children in the travel and tourism industry
Robyn Linde1
Rhode Island College
Political Science Department
Craig-Lee Hall
600 Mount Pleasant Ave.
Providence, RI 02908-1991
[email protected]
H. Richard Eisenbeis
Colorado State University-Pueblo,
Hasan School of Business
Pueblo, Colorado 81001-4901
[email protected]
1 This case study was generously funded by the United Front
for Children Conference: Global Efforts to Combat
Sexual Trafficking in Travel and Tourism, held at the
University of Minnesota in Minneapolis in April 2006. The
Curtis L. Carlson Foundation was one source of funding for the
conference. Interviews for the case study were
conducted between 2006 and 2008 with Carlson Companies
executives, including Marilyn Carlson Nelson, then
president and Chief Executive Officer of Carlson Companies;
Deb Cundy, Assistant Dean of External Relations at
the Carlson School of Management at the University of
Minnesota; Doug Cody, Corporate Vice President of Public
Relations and Communications; Kim Olson, Vice President,
Chief Communications Officer; Tom Polski, Vice
President of Global Communications and External Relations;
Bill Van Brunt, Executive Vice President, Carlson
Companies; and Jay Witzel, President and CEO of Carlson
Hotels Worldwide. Carol Smolenski of End Child
Prostitution Child Pornography and Trafficking of Children for
Sexual Purposes (ECPAT) was an especially
valuable resource during the many drafts of this case. I would
additionally like to thank Sally Kenney, Holiday
Shapiro, Kathryn Sikkink, fellow case writers in Professor
Kenney’s seminar on Case Studies on Women and Public
Policy at the University of Minnesota, and the anonymous
reviewers for their helpful comments on earlier drafts.
4/28/2011
2
4/28/2011
3
The Carlson Company and Global Corporate Citizenship: The
protection of children in the travel and tourism industry
Marilyn Carlson Nelson, in her seventh year as Chief Executive
Officer (CEO) of
Carlson Companies, a global marketing, travel, and hospitality
company, faced a major dilemma.
In 2006, the company was considering a proposal to expand its
luxury Regency accommodations
and services to Costa Rica. The venture gave many indications
of being strategically sound and
highly profitable, and it would also provide a basis for future
expansion throughout Latin
America. However, during the feasibility study of a promising
property located in Papagayo, a
popular tourist destination along Costa Rica’s northern coast,
company executives learned that
the surrounding area was notorious for child trafficking and
prostitution. This was of particular
concern to Carlson Nelson, because under her leadership
Carlson Companies had, in 2004,
signed the Code of Conduct for the Protection of Children from
Sexual Exploitation in Travel
and Tourism (the Code). This global project brought together
the travel and tourism industry and
nongovernmental organizations to prevent sexual exploitation of
children at tourist destinations.
As part of its obligations under the Code, the Carlson
Companies had adopted a corporate
ethics policy designed to eliminate any organizational
association with sex trafficking. Carlson
Nelson was confronted with the need to assess whether the
proposed Regent resort could ensure
compliance with the Code in an environment where sexual
exploitation of children was often an
integral part of doing business. Should Carlson Companies
decide to abandon the project, it
would certainly lose a viable opportunity to become a major
player in the high-end Central
American tourism market.
CARLSON COMPANIES, MARILYN CARLSON NELSON,
AND THE CODE
Carlson’s history was one of the classic business success
stories in the American free
enterprise system. Starting in 1938 with an idea and a $55 loan,
entrepreneur Curtis L. Carlson
(1914-1999) founded the Gold Bond Stamp Company in his
home town of Minneapolis. He
knew that grocery stores, drug stores, gas stations, and other
independent merchants could use
stamps to drive customer loyalty and to distinguish themselves
from their competitors. During
the 1950s and 1960s, Gold Bond and sister company, Top Value
Stamps, helped revolutionize
4/28/2011
4
the way retail goods were marketed. Trading stamps proved to
be right for the times and swept
the nation in a wave of dramatic growth.
In the late 1960s, when the trading stamp market reached its
peak, the Gold Bond Stamp
Company expanded into the hospitality industry. In the 1970s,
the company acquired dozens of
additional businesses, including T.G.I. Friday and Radisson. To
reflect its diversification, Gold
Bond changed its name to Carlson Companies in 1973. Based in
Minneapolis,
Minnesota, Carlson brands by 1999 generated more than $31.4
billion in gross sales system-wide
and employed about 188,000 people in more than 140 countries.
In 2006, to demonstrate that
they were one company serving a variety of needs, the firm
became known as Carlson Company.
The company had long been involved in philanthropy through
its Curtis L. Carlson
Family Foundation. Begun in 1959, the foundation was one of
many avenues Carlson
Companies chose to carry out its charitable work. Curtis
Carlson, the son of Swedish
immigrants, became widely recognized in Sweden for his
success in business as well as for his
charitable endeavors. His ancestral ties to Sweden eventually
led to a lasting friendship between
the Carlson family and the royal family of Sweden.
Marilyn Carlson Nelson, Curtis Carlson’s eldest daughter,
graduated with honors from
Smith College with a degree in International Economics and a
minor in Theater. She also
attended the Sorbonne in Paris and the Institute Des Hautes
Etudes Economiques Politiques in
Geneva, Switzerland, where she studied political science and
international economics. Carlson
Nelson succeeded her father as President and CEO of Carlson
Companies in 1998. In her role as
Chairman and Chief Executive Officer, she was responsible for
the day-to-day operations of one
of the largest privately held companies in the world. As
President and CEO, Carlson Nelson led
the management of a global business portfolio encompassing
Carlson Companies’ major
operating groups, specializing in Corporate
Solution
s and Consumer Services: Carlson
Hospitality Worldwide (hotels, restaurants and cruise ships);
Carlson Wagonlit Travel (business
travel and leisure travel brand); Carlson Leisure Group (leisure
travel agencies and tour
operators); and Carlson Marketing Group (incentive and loyalty
marketing). By 2006, under
Carlson Nelson’s leadership, Carlson’s annual sales exceeded
$37 billion and it employed over
4/28/2011
5
150,000 people worldwide. She was widely recognized as one
of the world’s most influential
women. 2
Carlson Nelson defined her role as President and CEO of
Carlson as follows:
A CEO has to train and operate like a jet pilot. Once the
company's talented
executive team is flying in formation, I’m usually raising
peripheral vision
issues—how a decision is going to impact other pieces of the
business, how it's
going to impact our shareholder relationships and our banking
relationships. I
really go through the various stakeholders in my mind. And I
might try to impact
the final outcome so that it will bring people the broadest
possible ownership of
the decision.
Carlson Nelson’s general management style was described by
other executives in the organization
as being “collective.” Kim Olson, Vice President and Chief
Communication Officer, described Carlson
Nelson as:
Having a participative leadership style. When making decisions
at the corporate level,
we hear and discuss all points of view before arriving at a
decision. We believe these
collective decisions enhance our sense of global corporate
citizenship.
TOURISM AND THE COMMERCIAL SEXUAL
EXPLOITATION OF CHILDREN
Although the commercial sexual exploitation of children
occurred in countries
worldwide, the growing popularity and declining cost of travel
and the rise of new
communications technologies had changed the nature of child
exploitation by facilitating the rise
of global sex tourism. The World Tourism Organization defined
organized sex tourism as:
Trips organized from within the tourism sector, or from outside
this sector but
using its structures and networks, with the primary purpose of
effecting a
commercial sexual relationship by the tourist with residents at
the destination.i
Prostitution, child prostitution, and sexual exploitation of
children have existed
throughout history. However, prior to the last quarter of the
20th century, the child aspect had
been confined largely to the poorer, more destitute countries of
the world where selling female
children for sex was often seen as an accepted means of family
survival. By the 1990s, the
survival dimension had changed dramatically. Trafficking
children for sex had become a
formidable international business and part of a multi-billion
dollar industry in which
approximately two million children were exploited annually.
4/28/2011
6
Basically, sex trafficking was a type of commercial trade in
people, either across borders
or within countries, whereby individuals were forced into sexual
slavery. Children under the age
of 18 made up a large portion of this trade and were trafficked
for multiple reasons, including
forced labor, criminal activity and sexual exploitation. The
travel and tourism industry
facilitated the trafficking of children in two ways: (1) Hotels,
airlines, trains and buses provided
the means by which children were trafficked; (2) and more
commonly, the industry transported
the sex tourist to his/her destination and provided
accommodations once there.
A few travel companies actually targeted sex tourists and
actively sought their business.
For example, an advertisement by Lauda Air, an Austrian
airline, consisted of a picture of a
partially clothed girl and captions reading, “From Thailand with
Love,” and “the tarts in the
Bangkok Baby Club are waiting for us.”8 Generally, however,
companies in the travel and
tourism industry downplayed their role in the sex trade and the
sexual exploitation of children by
turning a blind eye toward tourist industry practices which
inadvertently exposed children around
the world to sexual abuse and violence.
INTERNATIONAL AND U.S. LAW REGARDING SEX
TRAFFICKING
International legal efforts to protect women and children from
trafficking were first made
at the beginning of the 20th century, when many conventions
were established to end what was
then referred to as “white slave traffic.” Both international and
U.S. enforcement officials had
been unwavering in their condemnation of the trafficking of
children. In addition, the
International Criminal Court had declared it a crime against
humanity, and a number of other
international treaties and declarations had condemned the
practice and called on states to prevent
it.12 The most important and widely cited international
agreement for the protection of children
is the 1990 Convention on the Rights of the Child, which had
been ratified by nearly every state
in the international system.ii Article 35 of this convention
provided that “States shall take all
appropriate national, bilateral and multilateral measures to
prevent the abduction, sale, or traffic
of children for any purpose or in any form.”
Children’s advocates had also targeted the demand side of child
sex trafficking in hopes
of curtailing the number of tourists who sexually exploited
children while traveling. In 1994, the
Child Sexual Abuse Prevention Act made it illegal for U.S.
citizens and permanent-resident
aliens to travel abroad to commit sexual acts with minors. As a
result, the U.S. Government was
4/28/2011
7
able to prosecute Americans for sexual acts with children even
if those acts took place outside
U.S. borders. Moreover, efforts to prosecute travel agencies
that catered to sex tourists
continued to increase.
SEX TRAFFICKING AND CHILD SEXUAL EXPLOITATION
IN COSTA RICA
By the late 1980s, Costa Rica had become one of the principal
tourist destinations in
Central America, and the expanding industry became the
country’s primary source of foreign
capital. According to the U.S. Department of State, the boom in
tourism had also resulted in
Costa Rica becoming a “source, transit, and destination
country” for sex trafficking.iii Women
and girls were trafficked into Costa Rica from Nicaragua, the
Dominican Republic, Columbia,
Guatemala, Russia and Eastern Europe for sexual exploitation.
Costa Rican women and girls
were trafficked within the country as well as to other Central
American countries, Mexico and
Japan. The problem of child prostitution in Costa Rica was so
serious that one NGO, the
National Institute for Children (PANI), put the number of child
prostitutes at 3,000 in the capital,
San Jose, alone. This group, along with other NGOs, had
continued to fight against sex tourism
and had condemned the practice in the West.
Nongovernmental organizations began to raise concerns about
Costa Rica’s problem with
sex tourists and child exploitation in the late 1990s, but the
Costa Rican government did not
make concerted efforts to address the issue until 2006.iv Not
until 2009 did the country make all
forms of trafficking illegal: Trafficking became punishable by
prison terms of six to ten years,
which could be increased to 16 years if a minor was involved.v
Despite these penalties, the U.S.
Department of State determined that the government of Costa
Rica did not meet the “minimum
standards” for eliminating trafficking as endorsed by the United
States. (See Appendix I).11
THE MARRIOTT INCIDENT
In 2002, a Marriott Resort Hotel employee in Papagayo, Costa
Rica was indicted for the
aggravated pimping of minors in a case that involved a number
of its hotel employees. The
fallout for Marriott was next to catastrophic. The Interfaith
Center on Corporate Responsibility,
a coalition of faith-based investors that files shareholder actions
against corporations in the name
of social responsibility, organized a widespread shareholder
campaign against Marriott. The First
Swedish National Pension Fund (Första AP-fonde) also played a
key role in drafting a
4/28/2011
8
shareholder resolution condemning Marriott for failing to adopt
policies that would prevent
similar exploitation from happening in the future. Marriott
failed to respond. In 2005,
immediately preceding its annual stockholder meeting, the
resolution became public knowledge.
Marriott was immediately subjected to severe and damaging
criticism throughout the world.
Although Marriott had been pressured prior to the litigation to
adopt a strong policy against
sexual exploitation of children, it had failed to do so. However,
as a result of the international
outrage stemming from the shareholder resolution, the firm
undertook an internal review of its
policies that eventually produced a human rights policy to
combat child sex trafficking,
somewhat placating its critics.vi
QUEEN SYLVIA, THE CODE, AND CARLSON COMPANIES
RESPONSE
In 1998, in response to concerns about the ways in which the
travel and tourism industry
facilitated child trafficking and at the initiative of Queen Silvia
of Sweden, an influential NGO
(ECPAT—End Child Prostitution, Child Pornography, and
Trafficking of Children for Sexual
Purposes), the Scandinavian Tourism Industry, and the World
Tourism Organization, combined
forces to create a Code of Conduct for companies in the
industry. The Code was a voluntary
commitment for travel and tourism companies to pledge their
aid in combating child trafficking.
Key elements of the code included:
1. Establishing an ethical policy regarding commercial sexual
exploitation of children.
2. Training personnel in the country of origin and travel
destinations.
3. Introducing a clause in contracts with suppliers, stating a
common repudiation of
commercial sexual exploitation of children.
4. Providing information to travelers by means of catalogues,
brochures, in-flight films,
ticket-slips, home pages, etc.
5. Providing information to local "key persons" at the
destinations.
6. Filing annual reports to various monitoring bodies.
Companies that adopted the Code were required to submit
annual reports on their
corporate practices to international, transnational and national
monitoring bodies to demonstrate
compliance with the Code, share information, build know-how
about best practices and identify
problems. Companies that adopted the Code were also
encouraged to monitor their employees
and the practices of their contractors through documented spot
checks.
As of November 2009, more than 947 companies in 37 countries
had signed the Code
affecting millions of tourists who employed the services of
these companies. However, only two
http://www.thecode.org/index.php?page=3_2#criteria3
http://www.thecode.org/index.php?page=3_2#criteria4
http://www.thecode.org/index.php?page=3_2#criteria5
4/28/2011
9
U.S. companies had signed. The absence of signatories among
U.S. companies presented a
serious problem given that an estimated 25 percent of sex
tourists outside of the United States
were Americans who presumably utilized U.S. travel and
tourism services. The majority of U.S.
hoteliers, travel agencies, airlines and tour companies had not
signed the Code for fear of such
consequences as:
1. Negative publicity that their adoption of the Code might
generate,
2. The burden the Code imposed on companies to police their
employees and
contractors,
3. Litigation from trafficked children themselves,
4. Litigation initiated by guests who might witness trafficking
while utilizing a
company’s travel and tourist services, and
5. Absence of other corporate signatories.
Carlson Nelson and Queen Silvia of Sweden shared a long-held
concern for at-risk
children, which led to numerous collective projects over the
years. Foremost among them was
the establishment in 1999 of the World Childhood Foundation,
founded by Queen Silvia along
with 14 co-founders, including the Carlson Family Foundation.
When asked by the Queen to
become a signatory to the Code in 2004, Carlson Nelson
enthusiastically committed. Carlson
Companies thus became the first major North American travel
and tourism company to sign,
committing to the Code for all of Carlson’s brands.vii In
signing the code, Carlson Nelson
assured the tourism industry that all future decisions made by
Carlson’s executive team would
take into consideration the next generation—“thinking about
children and teens and the impact
of the company’s actions upon their welfare and development.”
When asked about Carlson Companies’ early adoption of the
Code, Carlson Nelson
remarked:
We like to think that we play a leadership role on this particular
issue. Sometimes
I wish we weren’t as far out in front as a leader because we had
hoped that more
travel and hotel companies would sign on to the Code.
4/28/2011
10
However, initially there was not full agreement among
executives within Carlson
Companies that signing the Code was a good idea.* Concerns
identified by Carlson executives
essentially mirrored the concerns of other executives in the
travel and tourism industry.
Doug Cody, Corporate Vice President of Public Relations and
Communications further
questioned:
Why should Carlson get involved in something so ugly when
there are so many
other worthwhile causes that we could be involved with? ... Do
we really want to
associate our name with such an ugly thing? No other major
travel and tourism
company has signed the Code in North America, and the issue
of child trafficking
is not widely discussed in the media. My primary concern is
associating with it.
Even though we are fighting against it, it could backfire and
hurt you. People
could misunderstand it or believe that somehow we were
connected with it. There
were a lot of reasons to say ‘no.’
Cody’s opinion about the public relations liability of the Code
abruptly changed when
Carlson Nelson invited him along to witness the signing of the
Code at the United Nations with
Queen Silvia. Upon seeing dozens of television cameras from
around the world present to
witness the signing, it occurred to Cody that the media exposure
would prove very beneficial to
the company—indeed “the eyes of the world were watching.”
Even so, Cody argued that other
companies in the travel and tourism industry would be “steered
away from the Code because of
the legal ramifications if the Code is not followed once signed.”
In retrospect, Tom Polski, Vice President of Global
Communications and External
Relations, said:
The shift in thinking at Carlson Companies about the Code
resulted from
increased awareness of the whole issue through activities at the
World Childhood
Foundation. Carlson Companies and the travel and tourism
industry are in the
‘happiness’ business, and child trafficking is not very pleasant
and people
sometimes don’t want to hear unpleasant things. I supported the
Code because
child exploitation is a reality in the travel and tourism business.
* However, each Carlson executive interviewed made it clear to
the researcher that signing the Code was Carlson Nelson’s
decision and that it was adopted as policy because she
advocated for it. No different or alternative views were
expressed during
the course of the interviews.
4/28/2011
11
By many accounts, the corporate culture of Carlson Companies
was noticeably affected
by its newfound commitment to curtailing child trafficking. Jay
Witzel, president and CEO of
Carlson Hotels Worldwide, said:
Once Carlson Companies signed the Code, the level of
commitment to end child
trafficking throughout the entire Carlson system rose to an
unbelievable level
where people actually started to say, ‘That is not going to
happen here.’ Once
you get to that position…the people on the staff have come to
the conclusion that
they can do something about it…. it is not a hopeless situation.
Signing the Code
raised our diligence. It certainly raised our commitment and it
raised the
involvement of the greater community of Carlson hotels, their
owners, operators
and employees to do something about it.
THE DILEMMA
Within a few years after signing the Code, Carlson Companies
began planning for
development of a Regent Hotel and Resort in the Papagayo
region of Costa Rica. Regent,
Carlson’s luxury brand, provided higher-end accommodations to
its patrons than its Radisson
brand, which was already established in the capital of San Jose.
The venture would be Carlson’s
first luxury hotel and resort in Central America. It offered
Carlson the opportunity to expand its
luxury chain into Costa Rica’s lucrative and rapidly growing
high-end tourist market, as well as
the potential for further expansion into Central and South
America. Initially, the proposed project
was well received by Carlson executives, as its Radisson hotel
in San Jose was doing well.
It was Jay Witzel, President and CEO of Carlson Hotels
Worldwide, who during the
course of his research, learned of the extensive problem of child
sex trafficking in Costa Rica
and immediately brought it to Carlson Nelson’s attention.
Witzel’s concerns were well-founded:
Between the opening of the first Radisson Hotel in San Jose,
Costa Rica in 1996 and the new
opportunity in Papagayo, two important events had occurred
that had a major impact on whether
the project should be given the go ahead. First, Carlson had
signed the Code of Conduct, creating
new obligations within its companies in the fight against child
sex trafficking. Concerns were
raised whether management would be able to fully enforce the
Code once the resort became
operational. If Carlson could not fully guarantee protection of
children within the resort
complex, could or should this be considered a viable business
opportunity? The second concern
4/28/2011
12
stemmed from the Marriott child sex trafficking case and its
implications for Carlson’s Regent
resort. The fact that Carlson would face a similar environment
in Costa Rica as Marriott was
cause for alarm. Any plans to introduce the Regent brand to
Costa Rica would have to be
reassessed, especially in light of the proliferation of child sex
trafficking in Costa Rica and new
concerns over trafficking litigation.
However, the potential advantages of developing the hotel in
Costa Rica were many.
First, Carlson executives believed that it presented a lucrative
business opportunity, one that they
were hard-pressed to abandon. Additionally, the executives saw
the opportunity to serve as a
positive force and role model in the travel and tourism business,
a prospect that was especially
attractive to Carlson Nelson given her commitment to children.
Witzel described his
conversations about the Costa Rica project with Carlson Nelson
as “robust.” If they could
succeed in meeting the challenges of socially responsible hotel
management in a country rife
with child sex trafficking, they could demonstrate the project’s
feasibility to others in the
industry and the world.
But changes to the policies and practices of other travel and
tourism companies were not
the only positive externality that Carlson Nelson and her
executives hoped for. They also
believed that by empowering hotel employees to monitor and
act against the exploitation of
children in Carlson hotels, this vigilance would have a spillover
effect, benefiting the
communities to which the employees belonged. Carlson Nelson
argued that:
The more we train our employees, the better the potential that
they will use their
judgment and in a way, it becomes like a social anthropology
and there is a higher
likelihood that a culture will reject or self-correct around
somebody who is acting
inconsistently with our policy.”
The goal was that the employees themselves would serve as
agents of social change, improving
the larger community of which they were a part.
Although the promises of both social change and increased
revenue were certainly
tempting, the project’s disadvantages also caused Carlson
management several concerns. The
first arose as Carlson Nelson and the executive team watched
the Marriott litigation. As the case
unfolded, they became more and more aware of the impact the
case would have on Carlson’s
future Costa Rica operations. They took special note of the
Swedish National Pension Fund’s
blacklisting of the company and the very public international
shaming of Marriott over the
4/28/2011
13
trafficking issue. It was disturbing that the actions of just a
handful of Marriott employees
brought that company international rebuke and a shareholder
resolution against it. Secondly,
there was the risk that the international community would
associate Carlson’s Regent Hotel with
child sex trafficking simply because it was located in Costa
Rica. A third concern was that the
resort would fail to meet its obligations under the Code and
Carlson would risk public censure
from the Code’s monitoring body. Indeed a variety of powerful
stakeholders, including local
politicians, corrupt law enforcement officers, travel agents and
others, would benefit
substantially from child sex trafficking and could pressure
employees to violate the Code.
Additionally, for the Code’s implementation to be successful
there had to be commitment
from franchise owners – no easy task. Enforcement would
require employees and contractors to
monitor guests, business transactions and one another in a way
that might not be possible or even
advisable. Was it worth the risk to place the reputation of
Carlson, a highly respected
international company, in the hands of franchise owners and
untested local employees, some of
whom might have multiple and conflicting loyalties? And, there
was some doubt whether it
would be possible for hotel resort to create an environment
intolerant of child sex trafficking
without losing significant portion of its high-end tourist trade.
Was it possible that sex tourism
constituted such a large share of tourism in Papagayo that by
rejecting it in its hotel, Carlson
would be unable to earn an acceptable return on its investment?
Yet, Carlson executives agreed that the biggest disincentive to
developing the hotel was
the fear of litigation, both from tourists who might witness
child exploitation—despite efforts on
Carlson’s part to deter the practice—and from those who might
be victimized by traffickers
utilizing Carlson’s services. If Carlson continued with the
project, would it risk compromising its
commitment to the Code and to eliminating the sexual
exploitation of children? On the other
hand, if Carlson abandoned the project, the company would
forfeit a potentially lucrative
business opportunity. Time was drawing near for the final
decision. Should Carlson Nelson push
forward with the project? Then again, were there other possible
alternatives?
4/28/2011
14
ENDNOTES
i Kopf, Beverly and Bobbie Birleffi, "Not Her Father's Chief
Executive," U.S. News and World Report (October
2006)
<http://www.usnews.com/usnews/news/articles/061022/30nelso
n.htm>, last accessed February 24, 2011l;
Rauch, Maggie, "Leading the Field: Marilyn Carlson-Nelson"
Incentive Magazine (May 1, 2006 ),
<http://www.incentivemag.com/News/Industry/Articles/Leading
-the-Field--Marilyn-Carlson-Nelson/>, last
accessed February 24, 2011; ; "Carlson chair and CEO named
'Businesswoman of the Year'" Travel Daily News
(April 2005).
“Marilyn Carlson Nelson (Chairman & CEO, Carlson
Companies)” Ethisphere (December 2007),
<http://ethisphere.com/marilyn-carlson-nelson/>, last accessed
February 24, 2011; "The Word's Most Powerful
Women", Forbes (2005)
<http://www.forbes.com/lists/2005/11/PV8L.html>, last
accessed February 24, 2011
iii Casa Alianza and ECPAT International, "Creating a Database
as a Tool For Campaigning," San Jose (2002);
ECPAT International, “Five Years After Stockholm,” The Fifth
Report on the implementation of the Agenda for
Action adopted at the World Congress against Commercial
Sexual Exploitation of Children, Sweden, (2001);
ECPAT International, "Informe Global de Monitoreo de las
acciones en contra de la explotacion sexual comercial de
ninos, ninas y adolescentes: Costa Rica" (2006); Farrell,
Michael B., "Global campaign to police child sex tourism,"
The Christian Science Monitor, (April 22, 2004). O'Connell
Davidson, Julia, and Jacqueline Sanchez Taylor. "Child
Prostitution and Sex Tourism: Costa Rica." ECPAT
International, (1995); Song, Susan, "Children as Tourist
Attractions," Youth Advocate Program International Resources
Paper, Washington, D.C. (2004); U.S. Department
of State. "Trafficking in Persons Report," (2002). U.S.
Department of State."Trafficking in Persons Report," (2006).
U.S. Department of State. "Trafficking in Persons Report,"
(2007). U.S. Department of State. "Trafficking in
Persons Report," (2009). U.S. Department of State. "Trafficking
in Persons Report," (2010). U.S. Department of
State, Bureau of Democracy, Human Rights and Labor, Country
Reports on Human Rights Practices, “Costa Rica”
(2005)
iv See U.S. Department of State “Trafficking in Persons
Report”from 2002 to 2010 to see the evolution of Costan
Rican efforts to curb child trafficking.
v Although 268 Costa Rican companies and organizations have
become members to the code. See www.thecode.org
for more information.
vi Forsta AP-fonden “Första AP-fonden influences Marriot to
combat child sex tourism” <http://
http://www.ap1.se/en/Asset-management/Ethical-and-
environmental-consideration-in-our-investments/Long-term-
commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to-
combat-child-sex-tourism/> last accessed February
24, 2011; Interfaith Centre on Corporate Responsibility “Selling
Innocence: Child Sex Tourisim”
<http:// http://www.docstoc.com/docs/66828019/Accor-
Hospitality-Asset-Management>, last accessed February 24,
2011; “Marriott Hotel Chain Combats Child Sexual
Exploitation” December 2006 <http://
http://www.humantrafficking.org/updates/494>, last accessed
February 24, 2011
vii The other North American signatories are the American
Society of Travel Agents, and Amazon Tours, See
www.thecode.org for more information.
http://www.thecode.org/
http://www.ap1.se/en/Asset-management/Ethical-and-
environmental-consideration-in-our-investments/Long-term-
commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to-
combat-child-sex-tourism/
http://www.ap1.se/en/Asset-management/Ethical-and-
environmental-consideration-in-our-investments/Long-term-
commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to-
combat-child-sex-tourism/
http://www.docstoc.com/docs/66828019/Accor-Hospitality-
Asset-Management
http://www.humantrafficking.org/updates/494
http://www.thecode.org/Rhode Island CollegeDigital Commons
@ RIC2011The Carlson Company and Global Corporate
Citizenship: The protection of children in the travel and tourism
industryRobyn LindeH Richard
EisenbeisCitationtmp.1460473629.pdf.MvRGM
Case Study 3: Carlson Companies
Read the case study titled “Carlson Companies” found at the
end of Chapter 10.
Write a three to four (3-4) page paper in which you:
· Assess how the Carlson SAN approach would be implemented
in today’s environment.
· Compare the pros and cons of consolidating data on a SAN
central data facility versus the dispersed arrangement it
replaces.
· Evaluate the issues raised from the Carlson SAN mixing
equipment from a number of vendors and determine the
management options for dealing with this type of situation.
· Justify the reduction of administration and management of
storage networking through Carlson's IP SAN.
· Assess how cloud computing could be used by Carlson instead
of a SAN. Create a diagram using Visio or its open source
alternative software to illustrate the use of cloud computing.
Note: The graphically depicted solution is not included in the
required page length.
· Use at least three (3) quality resources in this assignment.
Note: Wikipedia and similar Websites do not qualify as quality
resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; references must follow
APA or school-specific format.
The specific course learning outcomes associated with this
assignment are:
· Compare and contrast among local area and wide area network
technologies and architectures.
· Use technology and information resources to research issues in
communication networks.
· Write clearly and concisely about communication networks
using proper writing mechanics and technical style conventions.

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Rhode Island CollegeDigital Commons @ RICFaculty Publica.docx

  • 1. Rhode Island College Digital Commons @ RIC Faculty Publications Faculty Books and Publications 2011 The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industry Robyn Linde Rhode Island College, [email protected] H Richard Eisenbeis Hasan School of Business, [email protected] Follow this and additional works at: http://digitalcommons.ric.edu/facultypublications Part of the Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Hospitality Administration and Management Commons, International Business Commons, International Law Commons, Law and Politics Commons, Law and Race Commons, Organizations Law Commons, and the Tourism and Travel Commons This Article is brought to you for free and open access by the Faculty Books and Publications at Digital Commons @ RIC. It has been accepted for inclusion in Faculty Publications by an authorized administrator of Digital Commons @ RIC. For more information, please
  • 2. contact [email protected] Citation Linde, Robyn and Dick Eisenbeis. “The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industry,” Case Research Journal (2011). http://digitalcommons.ric.edu?utm_source=digitalcommons.ric.e du%2Ffacultypublications%2F347&utm_medium=PDF&utm_ca mpaign=PDFCoverPages http://digitalcommons.ric.edu/facultypublications?utm_source=d igitalcommons.ric.edu%2Ffacultypublications%2F347&utm_me dium=PDF&utm_campaign=PDFCoverPages http://digitalcommons.ric.edu/facultybooksandpublications?utm _source=digitalcommons.ric.edu%2Ffacultypublications%2F347 &utm_medium=PDF&utm_campaign=PDFCoverPages http://digitalcommons.ric.edu/facultypublications?utm_source=d igitalcommons.ric.edu%2Ffacultypublications%2F347&utm_me dium=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/623?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/628?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/628?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/632?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/632?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/634?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu
  • 3. m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/609?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/867?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/867?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/1300?utm_source=di gitalcommons.ric.edu%2Ffacultypublications%2F347&utm_med ium=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/865?utm_source=digi talcommons.ric.edu%2Ffacultypublications%2F347&utm_mediu m=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/1082?utm_source=di gitalcommons.ric.edu%2Ffacultypublications%2F347&utm_med ium=PDF&utm_campaign=PDFCoverPages http://network.bepress.com/hgg/discipline/1082?utm_source=di gitalcommons.ric.edu%2Ffacultypublications%2F347&utm_med ium=PDF&utm_campaign=PDFCoverPages mailto:[email protected] 1 Linde, Robyn and Dick Eisenbeis. “The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industry,” Case Research Journal (2011).
  • 4. The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industry Robyn Linde1 Rhode Island College Political Science Department Craig-Lee Hall 600 Mount Pleasant Ave. Providence, RI 02908-1991 [email protected] H. Richard Eisenbeis Colorado State University-Pueblo, Hasan School of Business Pueblo, Colorado 81001-4901 [email protected] 1 This case study was generously funded by the United Front for Children Conference: Global Efforts to Combat
  • 5. Sexual Trafficking in Travel and Tourism, held at the University of Minnesota in Minneapolis in April 2006. The Curtis L. Carlson Foundation was one source of funding for the conference. Interviews for the case study were conducted between 2006 and 2008 with Carlson Companies executives, including Marilyn Carlson Nelson, then president and Chief Executive Officer of Carlson Companies; Deb Cundy, Assistant Dean of External Relations at the Carlson School of Management at the University of Minnesota; Doug Cody, Corporate Vice President of Public Relations and Communications; Kim Olson, Vice President, Chief Communications Officer; Tom Polski, Vice President of Global Communications and External Relations; Bill Van Brunt, Executive Vice President, Carlson Companies; and Jay Witzel, President and CEO of Carlson Hotels Worldwide. Carol Smolenski of End Child Prostitution Child Pornography and Trafficking of Children for Sexual Purposes (ECPAT) was an especially valuable resource during the many drafts of this case. I would additionally like to thank Sally Kenney, Holiday Shapiro, Kathryn Sikkink, fellow case writers in Professor Kenney’s seminar on Case Studies on Women and Public Policy at the University of Minnesota, and the anonymous reviewers for their helpful comments on earlier drafts.
  • 6. 4/28/2011 2 4/28/2011 3 The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industry Marilyn Carlson Nelson, in her seventh year as Chief Executive Officer (CEO) of Carlson Companies, a global marketing, travel, and hospitality company, faced a major dilemma. In 2006, the company was considering a proposal to expand its
  • 7. luxury Regency accommodations and services to Costa Rica. The venture gave many indications of being strategically sound and highly profitable, and it would also provide a basis for future expansion throughout Latin America. However, during the feasibility study of a promising property located in Papagayo, a popular tourist destination along Costa Rica’s northern coast, company executives learned that the surrounding area was notorious for child trafficking and prostitution. This was of particular concern to Carlson Nelson, because under her leadership Carlson Companies had, in 2004, signed the Code of Conduct for the Protection of Children from Sexual Exploitation in Travel and Tourism (the Code). This global project brought together the travel and tourism industry and nongovernmental organizations to prevent sexual exploitation of children at tourist destinations. As part of its obligations under the Code, the Carlson Companies had adopted a corporate ethics policy designed to eliminate any organizational association with sex trafficking. Carlson Nelson was confronted with the need to assess whether the
  • 8. proposed Regent resort could ensure compliance with the Code in an environment where sexual exploitation of children was often an integral part of doing business. Should Carlson Companies decide to abandon the project, it would certainly lose a viable opportunity to become a major player in the high-end Central American tourism market. CARLSON COMPANIES, MARILYN CARLSON NELSON, AND THE CODE Carlson’s history was one of the classic business success stories in the American free enterprise system. Starting in 1938 with an idea and a $55 loan, entrepreneur Curtis L. Carlson (1914-1999) founded the Gold Bond Stamp Company in his home town of Minneapolis. He knew that grocery stores, drug stores, gas stations, and other independent merchants could use stamps to drive customer loyalty and to distinguish themselves from their competitors. During the 1950s and 1960s, Gold Bond and sister company, Top Value Stamps, helped revolutionize
  • 9. 4/28/2011 4 the way retail goods were marketed. Trading stamps proved to be right for the times and swept the nation in a wave of dramatic growth. In the late 1960s, when the trading stamp market reached its peak, the Gold Bond Stamp Company expanded into the hospitality industry. In the 1970s, the company acquired dozens of additional businesses, including T.G.I. Friday and Radisson. To reflect its diversification, Gold Bond changed its name to Carlson Companies in 1973. Based in Minneapolis, Minnesota, Carlson brands by 1999 generated more than $31.4 billion in gross sales system-wide and employed about 188,000 people in more than 140 countries. In 2006, to demonstrate that they were one company serving a variety of needs, the firm became known as Carlson Company. The company had long been involved in philanthropy through its Curtis L. Carlson
  • 10. Family Foundation. Begun in 1959, the foundation was one of many avenues Carlson Companies chose to carry out its charitable work. Curtis Carlson, the son of Swedish immigrants, became widely recognized in Sweden for his success in business as well as for his charitable endeavors. His ancestral ties to Sweden eventually led to a lasting friendship between the Carlson family and the royal family of Sweden. Marilyn Carlson Nelson, Curtis Carlson’s eldest daughter, graduated with honors from Smith College with a degree in International Economics and a minor in Theater. She also attended the Sorbonne in Paris and the Institute Des Hautes Etudes Economiques Politiques in Geneva, Switzerland, where she studied political science and international economics. Carlson Nelson succeeded her father as President and CEO of Carlson Companies in 1998. In her role as Chairman and Chief Executive Officer, she was responsible for the day-to-day operations of one of the largest privately held companies in the world. As President and CEO, Carlson Nelson led the management of a global business portfolio encompassing
  • 11. Carlson Companies’ major operating groups, specializing in Corporate Solution s and Consumer Services: Carlson Hospitality Worldwide (hotels, restaurants and cruise ships); Carlson Wagonlit Travel (business travel and leisure travel brand); Carlson Leisure Group (leisure travel agencies and tour operators); and Carlson Marketing Group (incentive and loyalty marketing). By 2006, under Carlson Nelson’s leadership, Carlson’s annual sales exceeded $37 billion and it employed over 4/28/2011
  • 12. 5 150,000 people worldwide. She was widely recognized as one of the world’s most influential women. 2 Carlson Nelson defined her role as President and CEO of Carlson as follows: A CEO has to train and operate like a jet pilot. Once the company's talented executive team is flying in formation, I’m usually raising peripheral vision issues—how a decision is going to impact other pieces of the business, how it's going to impact our shareholder relationships and our banking relationships. I really go through the various stakeholders in my mind. And I
  • 13. might try to impact the final outcome so that it will bring people the broadest possible ownership of the decision. Carlson Nelson’s general management style was described by other executives in the organization as being “collective.” Kim Olson, Vice President and Chief Communication Officer, described Carlson Nelson as: Having a participative leadership style. When making decisions at the corporate level, we hear and discuss all points of view before arriving at a decision. We believe these collective decisions enhance our sense of global corporate citizenship. TOURISM AND THE COMMERCIAL SEXUAL
  • 14. EXPLOITATION OF CHILDREN Although the commercial sexual exploitation of children occurred in countries worldwide, the growing popularity and declining cost of travel and the rise of new communications technologies had changed the nature of child exploitation by facilitating the rise of global sex tourism. The World Tourism Organization defined organized sex tourism as: Trips organized from within the tourism sector, or from outside this sector but using its structures and networks, with the primary purpose of effecting a commercial sexual relationship by the tourist with residents at the destination.i Prostitution, child prostitution, and sexual exploitation of
  • 15. children have existed throughout history. However, prior to the last quarter of the 20th century, the child aspect had been confined largely to the poorer, more destitute countries of the world where selling female children for sex was often seen as an accepted means of family survival. By the 1990s, the survival dimension had changed dramatically. Trafficking children for sex had become a formidable international business and part of a multi-billion dollar industry in which approximately two million children were exploited annually. 4/28/2011
  • 16. 6 Basically, sex trafficking was a type of commercial trade in people, either across borders or within countries, whereby individuals were forced into sexual slavery. Children under the age of 18 made up a large portion of this trade and were trafficked for multiple reasons, including forced labor, criminal activity and sexual exploitation. The travel and tourism industry facilitated the trafficking of children in two ways: (1) Hotels, airlines, trains and buses provided the means by which children were trafficked; (2) and more commonly, the industry transported the sex tourist to his/her destination and provided accommodations once there.
  • 17. A few travel companies actually targeted sex tourists and actively sought their business. For example, an advertisement by Lauda Air, an Austrian airline, consisted of a picture of a partially clothed girl and captions reading, “From Thailand with Love,” and “the tarts in the Bangkok Baby Club are waiting for us.”8 Generally, however, companies in the travel and tourism industry downplayed their role in the sex trade and the sexual exploitation of children by turning a blind eye toward tourist industry practices which inadvertently exposed children around the world to sexual abuse and violence. INTERNATIONAL AND U.S. LAW REGARDING SEX TRAFFICKING International legal efforts to protect women and children from
  • 18. trafficking were first made at the beginning of the 20th century, when many conventions were established to end what was then referred to as “white slave traffic.” Both international and U.S. enforcement officials had been unwavering in their condemnation of the trafficking of children. In addition, the International Criminal Court had declared it a crime against humanity, and a number of other international treaties and declarations had condemned the practice and called on states to prevent it.12 The most important and widely cited international agreement for the protection of children is the 1990 Convention on the Rights of the Child, which had been ratified by nearly every state in the international system.ii Article 35 of this convention provided that “States shall take all
  • 19. appropriate national, bilateral and multilateral measures to prevent the abduction, sale, or traffic of children for any purpose or in any form.” Children’s advocates had also targeted the demand side of child sex trafficking in hopes of curtailing the number of tourists who sexually exploited children while traveling. In 1994, the Child Sexual Abuse Prevention Act made it illegal for U.S. citizens and permanent-resident aliens to travel abroad to commit sexual acts with minors. As a result, the U.S. Government was 4/28/2011 7
  • 20. able to prosecute Americans for sexual acts with children even if those acts took place outside U.S. borders. Moreover, efforts to prosecute travel agencies that catered to sex tourists continued to increase. SEX TRAFFICKING AND CHILD SEXUAL EXPLOITATION IN COSTA RICA By the late 1980s, Costa Rica had become one of the principal tourist destinations in Central America, and the expanding industry became the country’s primary source of foreign capital. According to the U.S. Department of State, the boom in tourism had also resulted in Costa Rica becoming a “source, transit, and destination country” for sex trafficking.iii Women
  • 21. and girls were trafficked into Costa Rica from Nicaragua, the Dominican Republic, Columbia, Guatemala, Russia and Eastern Europe for sexual exploitation. Costa Rican women and girls were trafficked within the country as well as to other Central American countries, Mexico and Japan. The problem of child prostitution in Costa Rica was so serious that one NGO, the National Institute for Children (PANI), put the number of child prostitutes at 3,000 in the capital, San Jose, alone. This group, along with other NGOs, had continued to fight against sex tourism and had condemned the practice in the West. Nongovernmental organizations began to raise concerns about Costa Rica’s problem with sex tourists and child exploitation in the late 1990s, but the Costa Rican government did not
  • 22. make concerted efforts to address the issue until 2006.iv Not until 2009 did the country make all forms of trafficking illegal: Trafficking became punishable by prison terms of six to ten years, which could be increased to 16 years if a minor was involved.v Despite these penalties, the U.S. Department of State determined that the government of Costa Rica did not meet the “minimum standards” for eliminating trafficking as endorsed by the United States. (See Appendix I).11 THE MARRIOTT INCIDENT In 2002, a Marriott Resort Hotel employee in Papagayo, Costa Rica was indicted for the aggravated pimping of minors in a case that involved a number of its hotel employees. The
  • 23. fallout for Marriott was next to catastrophic. The Interfaith Center on Corporate Responsibility, a coalition of faith-based investors that files shareholder actions against corporations in the name of social responsibility, organized a widespread shareholder campaign against Marriott. The First Swedish National Pension Fund (Första AP-fonde) also played a key role in drafting a 4/28/2011 8 shareholder resolution condemning Marriott for failing to adopt policies that would prevent
  • 24. similar exploitation from happening in the future. Marriott failed to respond. In 2005, immediately preceding its annual stockholder meeting, the resolution became public knowledge. Marriott was immediately subjected to severe and damaging criticism throughout the world. Although Marriott had been pressured prior to the litigation to adopt a strong policy against sexual exploitation of children, it had failed to do so. However, as a result of the international outrage stemming from the shareholder resolution, the firm undertook an internal review of its policies that eventually produced a human rights policy to combat child sex trafficking, somewhat placating its critics.vi QUEEN SYLVIA, THE CODE, AND CARLSON COMPANIES RESPONSE
  • 25. In 1998, in response to concerns about the ways in which the travel and tourism industry facilitated child trafficking and at the initiative of Queen Silvia of Sweden, an influential NGO (ECPAT—End Child Prostitution, Child Pornography, and Trafficking of Children for Sexual Purposes), the Scandinavian Tourism Industry, and the World Tourism Organization, combined forces to create a Code of Conduct for companies in the industry. The Code was a voluntary commitment for travel and tourism companies to pledge their aid in combating child trafficking. Key elements of the code included: 1. Establishing an ethical policy regarding commercial sexual exploitation of children. 2. Training personnel in the country of origin and travel destinations.
  • 26. 3. Introducing a clause in contracts with suppliers, stating a common repudiation of commercial sexual exploitation of children. 4. Providing information to travelers by means of catalogues, brochures, in-flight films, ticket-slips, home pages, etc. 5. Providing information to local "key persons" at the destinations. 6. Filing annual reports to various monitoring bodies. Companies that adopted the Code were required to submit annual reports on their corporate practices to international, transnational and national monitoring bodies to demonstrate compliance with the Code, share information, build know-how about best practices and identify problems. Companies that adopted the Code were also encouraged to monitor their employees
  • 27. and the practices of their contractors through documented spot checks. As of November 2009, more than 947 companies in 37 countries had signed the Code affecting millions of tourists who employed the services of these companies. However, only two http://www.thecode.org/index.php?page=3_2#criteria3 http://www.thecode.org/index.php?page=3_2#criteria4 http://www.thecode.org/index.php?page=3_2#criteria5 4/28/2011 9 U.S. companies had signed. The absence of signatories among U.S. companies presented a serious problem given that an estimated 25 percent of sex
  • 28. tourists outside of the United States were Americans who presumably utilized U.S. travel and tourism services. The majority of U.S. hoteliers, travel agencies, airlines and tour companies had not signed the Code for fear of such consequences as: 1. Negative publicity that their adoption of the Code might generate, 2. The burden the Code imposed on companies to police their employees and contractors, 3. Litigation from trafficked children themselves, 4. Litigation initiated by guests who might witness trafficking while utilizing a company’s travel and tourist services, and
  • 29. 5. Absence of other corporate signatories. Carlson Nelson and Queen Silvia of Sweden shared a long-held concern for at-risk children, which led to numerous collective projects over the years. Foremost among them was the establishment in 1999 of the World Childhood Foundation, founded by Queen Silvia along with 14 co-founders, including the Carlson Family Foundation. When asked by the Queen to become a signatory to the Code in 2004, Carlson Nelson enthusiastically committed. Carlson Companies thus became the first major North American travel and tourism company to sign, committing to the Code for all of Carlson’s brands.vii In signing the code, Carlson Nelson assured the tourism industry that all future decisions made by Carlson’s executive team would
  • 30. take into consideration the next generation—“thinking about children and teens and the impact of the company’s actions upon their welfare and development.” When asked about Carlson Companies’ early adoption of the Code, Carlson Nelson remarked: We like to think that we play a leadership role on this particular issue. Sometimes I wish we weren’t as far out in front as a leader because we had hoped that more travel and hotel companies would sign on to the Code.
  • 31. 4/28/2011 10 However, initially there was not full agreement among executives within Carlson Companies that signing the Code was a good idea.* Concerns identified by Carlson executives essentially mirrored the concerns of other executives in the travel and tourism industry. Doug Cody, Corporate Vice President of Public Relations and Communications further questioned: Why should Carlson get involved in something so ugly when there are so many
  • 32. other worthwhile causes that we could be involved with? ... Do we really want to associate our name with such an ugly thing? No other major travel and tourism company has signed the Code in North America, and the issue of child trafficking is not widely discussed in the media. My primary concern is associating with it. Even though we are fighting against it, it could backfire and hurt you. People could misunderstand it or believe that somehow we were connected with it. There were a lot of reasons to say ‘no.’ Cody’s opinion about the public relations liability of the Code abruptly changed when Carlson Nelson invited him along to witness the signing of the Code at the United Nations with
  • 33. Queen Silvia. Upon seeing dozens of television cameras from around the world present to witness the signing, it occurred to Cody that the media exposure would prove very beneficial to the company—indeed “the eyes of the world were watching.” Even so, Cody argued that other companies in the travel and tourism industry would be “steered away from the Code because of the legal ramifications if the Code is not followed once signed.” In retrospect, Tom Polski, Vice President of Global Communications and External Relations, said: The shift in thinking at Carlson Companies about the Code resulted from increased awareness of the whole issue through activities at the World Childhood
  • 34. Foundation. Carlson Companies and the travel and tourism industry are in the ‘happiness’ business, and child trafficking is not very pleasant and people sometimes don’t want to hear unpleasant things. I supported the Code because child exploitation is a reality in the travel and tourism business. * However, each Carlson executive interviewed made it clear to the researcher that signing the Code was Carlson Nelson’s decision and that it was adopted as policy because she advocated for it. No different or alternative views were expressed during the course of the interviews.
  • 35. 4/28/2011 11 By many accounts, the corporate culture of Carlson Companies was noticeably affected by its newfound commitment to curtailing child trafficking. Jay Witzel, president and CEO of Carlson Hotels Worldwide, said: Once Carlson Companies signed the Code, the level of commitment to end child trafficking throughout the entire Carlson system rose to an unbelievable level
  • 36. where people actually started to say, ‘That is not going to happen here.’ Once you get to that position…the people on the staff have come to the conclusion that they can do something about it…. it is not a hopeless situation. Signing the Code raised our diligence. It certainly raised our commitment and it raised the involvement of the greater community of Carlson hotels, their owners, operators and employees to do something about it. THE DILEMMA Within a few years after signing the Code, Carlson Companies began planning for development of a Regent Hotel and Resort in the Papagayo
  • 37. region of Costa Rica. Regent, Carlson’s luxury brand, provided higher-end accommodations to its patrons than its Radisson brand, which was already established in the capital of San Jose. The venture would be Carlson’s first luxury hotel and resort in Central America. It offered Carlson the opportunity to expand its luxury chain into Costa Rica’s lucrative and rapidly growing high-end tourist market, as well as the potential for further expansion into Central and South America. Initially, the proposed project was well received by Carlson executives, as its Radisson hotel in San Jose was doing well. It was Jay Witzel, President and CEO of Carlson Hotels Worldwide, who during the course of his research, learned of the extensive problem of child sex trafficking in Costa Rica
  • 38. and immediately brought it to Carlson Nelson’s attention. Witzel’s concerns were well-founded: Between the opening of the first Radisson Hotel in San Jose, Costa Rica in 1996 and the new opportunity in Papagayo, two important events had occurred that had a major impact on whether the project should be given the go ahead. First, Carlson had signed the Code of Conduct, creating new obligations within its companies in the fight against child sex trafficking. Concerns were raised whether management would be able to fully enforce the Code once the resort became operational. If Carlson could not fully guarantee protection of children within the resort complex, could or should this be considered a viable business opportunity? The second concern
  • 39. 4/28/2011 12 stemmed from the Marriott child sex trafficking case and its implications for Carlson’s Regent resort. The fact that Carlson would face a similar environment in Costa Rica as Marriott was cause for alarm. Any plans to introduce the Regent brand to Costa Rica would have to be reassessed, especially in light of the proliferation of child sex trafficking in Costa Rica and new concerns over trafficking litigation. However, the potential advantages of developing the hotel in Costa Rica were many.
  • 40. First, Carlson executives believed that it presented a lucrative business opportunity, one that they were hard-pressed to abandon. Additionally, the executives saw the opportunity to serve as a positive force and role model in the travel and tourism business, a prospect that was especially attractive to Carlson Nelson given her commitment to children. Witzel described his conversations about the Costa Rica project with Carlson Nelson as “robust.” If they could succeed in meeting the challenges of socially responsible hotel management in a country rife with child sex trafficking, they could demonstrate the project’s feasibility to others in the industry and the world. But changes to the policies and practices of other travel and
  • 41. tourism companies were not the only positive externality that Carlson Nelson and her executives hoped for. They also believed that by empowering hotel employees to monitor and act against the exploitation of children in Carlson hotels, this vigilance would have a spillover effect, benefiting the communities to which the employees belonged. Carlson Nelson argued that: The more we train our employees, the better the potential that they will use their judgment and in a way, it becomes like a social anthropology and there is a higher likelihood that a culture will reject or self-correct around somebody who is acting inconsistently with our policy.”
  • 42. The goal was that the employees themselves would serve as agents of social change, improving the larger community of which they were a part. Although the promises of both social change and increased revenue were certainly tempting, the project’s disadvantages also caused Carlson management several concerns. The first arose as Carlson Nelson and the executive team watched the Marriott litigation. As the case unfolded, they became more and more aware of the impact the case would have on Carlson’s future Costa Rica operations. They took special note of the Swedish National Pension Fund’s blacklisting of the company and the very public international shaming of Marriott over the
  • 43. 4/28/2011 13 trafficking issue. It was disturbing that the actions of just a handful of Marriott employees brought that company international rebuke and a shareholder resolution against it. Secondly, there was the risk that the international community would associate Carlson’s Regent Hotel with child sex trafficking simply because it was located in Costa Rica. A third concern was that the resort would fail to meet its obligations under the Code and Carlson would risk public censure from the Code’s monitoring body. Indeed a variety of powerful stakeholders, including local
  • 44. politicians, corrupt law enforcement officers, travel agents and others, would benefit substantially from child sex trafficking and could pressure employees to violate the Code. Additionally, for the Code’s implementation to be successful there had to be commitment from franchise owners – no easy task. Enforcement would require employees and contractors to monitor guests, business transactions and one another in a way that might not be possible or even advisable. Was it worth the risk to place the reputation of Carlson, a highly respected international company, in the hands of franchise owners and untested local employees, some of whom might have multiple and conflicting loyalties? And, there was some doubt whether it would be possible for hotel resort to create an environment
  • 45. intolerant of child sex trafficking without losing significant portion of its high-end tourist trade. Was it possible that sex tourism constituted such a large share of tourism in Papagayo that by rejecting it in its hotel, Carlson would be unable to earn an acceptable return on its investment? Yet, Carlson executives agreed that the biggest disincentive to developing the hotel was the fear of litigation, both from tourists who might witness child exploitation—despite efforts on Carlson’s part to deter the practice—and from those who might be victimized by traffickers utilizing Carlson’s services. If Carlson continued with the project, would it risk compromising its commitment to the Code and to eliminating the sexual exploitation of children? On the other
  • 46. hand, if Carlson abandoned the project, the company would forfeit a potentially lucrative business opportunity. Time was drawing near for the final decision. Should Carlson Nelson push forward with the project? Then again, were there other possible alternatives? 4/28/2011 14 ENDNOTES
  • 47. i Kopf, Beverly and Bobbie Birleffi, "Not Her Father's Chief Executive," U.S. News and World Report (October 2006) <http://www.usnews.com/usnews/news/articles/061022/30nelso n.htm>, last accessed February 24, 2011l; Rauch, Maggie, "Leading the Field: Marilyn Carlson-Nelson" Incentive Magazine (May 1, 2006 ), <http://www.incentivemag.com/News/Industry/Articles/Leading -the-Field--Marilyn-Carlson-Nelson/>, last accessed February 24, 2011; ; "Carlson chair and CEO named 'Businesswoman of the Year'" Travel Daily News (April 2005). “Marilyn Carlson Nelson (Chairman & CEO, Carlson Companies)” Ethisphere (December 2007), <http://ethisphere.com/marilyn-carlson-nelson/>, last accessed February 24, 2011; "The Word's Most Powerful
  • 48. Women", Forbes (2005) <http://www.forbes.com/lists/2005/11/PV8L.html>, last accessed February 24, 2011 iii Casa Alianza and ECPAT International, "Creating a Database as a Tool For Campaigning," San Jose (2002); ECPAT International, “Five Years After Stockholm,” The Fifth Report on the implementation of the Agenda for Action adopted at the World Congress against Commercial Sexual Exploitation of Children, Sweden, (2001); ECPAT International, "Informe Global de Monitoreo de las acciones en contra de la explotacion sexual comercial de ninos, ninas y adolescentes: Costa Rica" (2006); Farrell, Michael B., "Global campaign to police child sex tourism," The Christian Science Monitor, (April 22, 2004). O'Connell Davidson, Julia, and Jacqueline Sanchez Taylor. "Child Prostitution and Sex Tourism: Costa Rica." ECPAT International, (1995); Song, Susan, "Children as Tourist
  • 49. Attractions," Youth Advocate Program International Resources Paper, Washington, D.C. (2004); U.S. Department of State. "Trafficking in Persons Report," (2002). U.S. Department of State."Trafficking in Persons Report," (2006). U.S. Department of State. "Trafficking in Persons Report," (2007). U.S. Department of State. "Trafficking in Persons Report," (2009). U.S. Department of State. "Trafficking in Persons Report," (2010). U.S. Department of State, Bureau of Democracy, Human Rights and Labor, Country Reports on Human Rights Practices, “Costa Rica” (2005) iv See U.S. Department of State “Trafficking in Persons Report”from 2002 to 2010 to see the evolution of Costan Rican efforts to curb child trafficking. v Although 268 Costa Rican companies and organizations have become members to the code. See www.thecode.org for more information. vi Forsta AP-fonden “Första AP-fonden influences Marriot to combat child sex tourism” <http://
  • 50. http://www.ap1.se/en/Asset-management/Ethical-and- environmental-consideration-in-our-investments/Long-term- commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to- combat-child-sex-tourism/> last accessed February 24, 2011; Interfaith Centre on Corporate Responsibility “Selling Innocence: Child Sex Tourisim” <http:// http://www.docstoc.com/docs/66828019/Accor- Hospitality-Asset-Management>, last accessed February 24, 2011; “Marriott Hotel Chain Combats Child Sexual Exploitation” December 2006 <http:// http://www.humantrafficking.org/updates/494>, last accessed February 24, 2011 vii The other North American signatories are the American Society of Travel Agents, and Amazon Tours, See www.thecode.org for more information.
  • 51. http://www.thecode.org/ http://www.ap1.se/en/Asset-management/Ethical-and- environmental-consideration-in-our-investments/Long-term- commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to- combat-child-sex-tourism/ http://www.ap1.se/en/Asset-management/Ethical-and- environmental-consideration-in-our-investments/Long-term- commitment-pays-off/Forsta-AP-fonden-influences-Marriot-to- combat-child-sex-tourism/ http://www.docstoc.com/docs/66828019/Accor-Hospitality- Asset-Management http://www.humantrafficking.org/updates/494 http://www.thecode.org/Rhode Island CollegeDigital Commons @ RIC2011The Carlson Company and Global Corporate Citizenship: The protection of children in the travel and tourism industryRobyn LindeH Richard EisenbeisCitationtmp.1460473629.pdf.MvRGM Case Study 3: Carlson Companies Read the case study titled “Carlson Companies” found at the end of Chapter 10.
  • 52. Write a three to four (3-4) page paper in which you: · Assess how the Carlson SAN approach would be implemented in today’s environment. · Compare the pros and cons of consolidating data on a SAN central data facility versus the dispersed arrangement it replaces. · Evaluate the issues raised from the Carlson SAN mixing equipment from a number of vendors and determine the management options for dealing with this type of situation. · Justify the reduction of administration and management of storage networking through Carlson's IP SAN. · Assess how cloud computing could be used by Carlson instead of a SAN. Create a diagram using Visio or its open source alternative software to illustrate the use of cloud computing. Note: The graphically depicted solution is not included in the required page length. · Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources. Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. The specific course learning outcomes associated with this assignment are:
  • 53. · Compare and contrast among local area and wide area network technologies and architectures. · Use technology and information resources to research issues in communication networks. · Write clearly and concisely about communication networks using proper writing mechanics and technical style conventions.