Ethics, Risk & Decision Making in Tourism & Hospitality

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Ethics, Risk & Decision Making in

Tourism & Hospitality Industry
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Table of Contents
Task 1 ...............................................................................................................................................2
1.1 Ethical concepts and issues in White Swan ..........................................................................2
1.2 Evaluation of public, private and voluntary sectors in tourism and hospitality ...................5
1.3 Sustainability and corporate social responsibility .................................................................6
TASK 2 ............................................................................................................................................7
2.1 Decision making at different levels of an organisation .........................................................7
2.2 Evaluation of ethical decisions and ethical concepts ............................................................8
2.3 Business risk management ....................................................................................................8
Task 3 Ethics in tourism and hospitality research ...........................................................................9
3.1 Assessing market research needs and data collection methods.............................................9
3.2 Ethical issues in tourism and hospitality research ...............................................................11
3.3 Market research methods ....................................................................................................12
Task 4 Ethics in context of marketing ...........................................................................................13
4.1 Ethical issues for tourism and hospitality marketing ..........................................................13
4.2 Contemporary issues in tourism and hospitality industries .................................................14
4.3 Business decision making in context of ethics ....................................................................15
Task 5 Roles of managers and stakeholders on strategic planning ...............................................17
5.1 Evaluation of levels of influence and power among stakeholders ......................................17
5.2 Triple bottom line ................................................................................................................19
5.3 Scope of business decision making to strategic plans .........................................................20
Conclusion .....................................................................................................................................20
References ......................................................................................................................................21
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In a business organization, there are number of employees who are engaged in providing
services to their customers. However, in a hospitality industry, there are various firms which are
engaged in delivering day to day services to thousands of customers. Managers of the different
firms whether it is travelling firm, hotel, restaurant or any other business, it is very crucial for
each and every firms manager to keep control over there working practices and activities which
can provide sufficient knowledge about their expected profitability (Perdue, Immermans and
Uysal, 2004). In every hospitality firm, it is obvious to have interference of government in every
sector, either public or private. It is because regulatory authorities plays crucial role in providing
different facilities like training and development programs, decision making schemes and
financial assistance as well. In this context, business entities has to follow rules and regulations
imposed by government necessarily otherwise they can be changeable against law.
On the other hand, business firms also have to make certain policies regarding risk and
decision making in order to gain high profitability. Along with that, there are number of internal
as well as external factors which influence business in its operations and policies. In order to
make effective control over them, firms have to make certain plans and policies for making good
control over consistent changes in external as well as internal environment. In this report, White
Swan is the chosen hospitality firm which is situated in the UK (Rimmington, Williams and
Morrison, 2009). It is luxurious hotel in Bondgate, UK. It is one of the oldest hotels in UK which
is providing services to customers in most efficient manner.
Task 1
1.1 Ethical concepts and issues in White Swan
There is a growing concern for business ethics in this hospitality firm as hospitality
professionals are faced with ethical dilemmas in the daily operational activities in delivering
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services to customers. There are number of complex as well as interesting issues that affect the
top level management of the firm who manages business from restaurant operations to tourism
based businesses (Becken and Hay, 2007). Some of the ethical challenges faced by this
hospitality firm are not new but they are being in existence since long time period. However, in
modern days, hospitality managers are facing these issues and other employee honesty issues on
a regular basis.
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Making in Tourism & Hospitality Industry
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Tourism currently is regarded as one of the top industry that is the driving the global
economy because major part of marginal revenue is generated from these sectors only. Almost
all countries are engaged in dealing with tourism sectors where some of the nations are engaged
in sourcing market while some are playing role of destinations for travelers. As a matter of fact,
tourism industries operate their business in very complex environment; as a result there has been
a growing concern on its negative social as well as environmental impacts (Younes and Kett,
2007).
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Impacts of ethics in the cited tourism and hospitality industry are as follows:
Decision making: - Ethical decision making process is mostly influenced by the
nature of ethical issue faced. White Swan managers have the responsibility of
maintaining the highest levels of services, guest satisfaction and optimal return on
investment as well. In order to meet these objectives, managers of the firm have to
deliver such services that can meet needs as well as expectations of customers
(Fennell, 2006). However, decision making process should include such specialists
who have the ability to play dominant role in providing valuable suggestions which
can be satisfactorily accepted by every manager. Effective decision making can lead
the firm to the top because right decision can only drive the firm towards success
whereas poor decision making leads to failure if the firm as well.
Quality: - In the modern era, customers are more quality oriented rather than price.
Therefore, it has become crucial form every firm to provide such a quality to their
customers which can really meet their expectation level (Silvers, 2009). In other
words, firm has to make specific research on expectations and demands of customers,
as a result, their requirements can be fulfilled in desired manner. Keeping pure
quality of services can changes perceptions of customers from negative to positive.
Additionally to it, pyre quality of services is very essential in order to increase
profitability as well as efficiency of the firm. Good quality of service will definitely
impress customers to select the cited firm because they require quality rather than
quantity (Litvin, Goldsmith and Pan, 2008). Qualitative services are able enough to
bring the cited firm at standardized level and most of the other high level firms are
highly focusing on their customers perceptions regarding quality.
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Employee turnover: - In hospitality industries, it has been identified that employee
turnover is one of the biggest problem. The main reason behind this factor is that
managers are not interested in their own human capital but they are focusing only on
customers (Yaman and Gurel, 2006). By the way, fact is that, if employees are the
key to success because without motivating employees, it is not possible to take work
from them with their full potentiality. Therefore, in order to reduce speedily rate of
employees turnover, certain training and development methods are required to
improve their efficiencies. Not only that but, working environment of these
employees is also one of the most critical factor responsible for increasing employee
turnover in the firm. It is because inadequate working environment always depress
them to work with full potency. Managers of the cited are required to create such an
environment which fits the needs and expectation levels of employees as well (Bowie
and Buttle, 2004).
Employees satisfaction Satisfaction level of employee mainly depends on the
nature of their managers because their way of treating employees is very crucial. It
can either make positive or negative impact on them. However, in order to make them
satisfied with their job as well as firm, it becomes crucial for the top level
management to provide them good payment on time also because inappropriate
payment methods can often de-motivate employees towards their managers and this
leads to employees turnover (Kang, Hsu and Wolfe, 2003). Employees are considered
as one of the most important asset of the firm and if they are not taken care of, firm
has to bear huge loss in near future. Employees are the only medium through which
customers can be attracted and impressed toward the hotel. Their nature and way to
talking with customers highly influence perceptions of customers. Therefore, special
training should be provided to them regarding behavior with customers. Specific
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training to employees helps the firm to increase their level of dependency on them
and profitability as well (Vanclay & d).

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Customers perception: - It is one of the most common as well as new concept that
every hospitality firms wants to consider. Because reading the minds of customers is
very important and working according to their expectation level is the key to success
for each and every firm (Quintal, Lee and Soutar, 2010). Changing customers
perceptions is very important because in the modern era, it has also been ascertained
that with low priced services, customers thinks it cheap whereas in high priced
services, customers are of the view that service are good. In order to change this
perception, management has to deliver such kind of services which can really divert
minds of customers.
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1.2 Evaluation of public, private and voluntary sectors in tourism and hospitality
The tourism and traveling industry in UK are always changing and developing within
themselves in order to meet continues changing needs or perceptions of customers. However, the
industry is largely dominated by privates sectors which are made up of numerous small and
medium sized sector firms (Yeung, 2004). These private firms are mainly dependent on latest
technological models and also vulnerable to external pressures like down turns in the economy.
Private sector
This organization is directly or indirectly in private ownership. The main aim of the
private sectors enterprises is to make huge profit within a specific time period. They are required
to create such kind of services and products which highly influence customers and tries to
changes their perceptions. Shareholders of the firm receive huge benefit from these kinds of
firms because they get high rate of dividends as per their investments (Jogaratnam and Ching-
Yick Tse, 2006). However, the main activities of private sectors are to provide catering,
accommodation, entertainment, travel -services and tourism. Most of the private firms are
indulged in improving their marginal revenues every year by setting and specific time limit. It
has been estimated that private sector industries holds as much as of 50% of the UK market.
Hospitality industries include hotels, theme parks, travel agencies and restaurants. However, the
largest operators have considerable power and control on the market (Kim and Miller, 2008).
Public Sector
Public sectors are mostly funded by regulatory authorities or government. As these firms
are funded by government, their strategies and policies are highly influenced by government.
Hospitality firms are playing major role in attracting large number of customers every year and
they are earning huge marginal revenue which is indirectly benefiting the economy of the nation.
Hospitality industries also employ large number of people which is assisting the economy by
reducing unemployment (Holcomb, Upchurch and Okumus, 2007). These public enterprises
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include the tourist boards and local authorities, which aids facilities such as museums, art
galleries and tourist information centers. Not only that but main role of public sector enterprise is
to support and help to promote hospitality firms. Many of the local authorities play dominant role
in developing, promoting, run events and festivals. Public sector enterprises also look after much
countryside which is regarded as an important natural attraction.
Voluntary sector
These organizations are usually non-profit making or charitable firms because they often
have very strong beliefs and principles. They are not really motivated by making profit by there
are some other reasons which provide them satisfied with their level of services (Bohdanowicz,
2005). These organizations are funded from a variety of methods including donations or the
selling of products and services. The National Trust looks after historic properties and large areas
of countryside. It is funded by legacies (money left o them when people die), member
subscriptions, selling goods, and charging entry to the properties. They also receive grants to
help manage the countryside in an environmentally friendly way. They are often managed by
and run by volunteers (Ayuso, 2006). Examples of voluntary sector organizations include travel
clubs and a wide range of conservation, countryside recreation and heritage pressure groups such
as the Ramblers Association, Tourism Concern and the National Trust.
1.3 Sustainability and corporate social responsibility
In business organizations, sustainability refers to that biological system wherein the firm
remains diverse and productive all the times by changing its methods and procedures. In simple
words, sustainability means strengths or survival of systems and procedures adopted in the firm.
However, the main principle for sustainability is sustainable development of the firm (Jeffery,
2009). Principle of sustainability includes ecology, economics, politics and culture as well.
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Corporate social responsibility is a form of corporate self-regulation incorporate in the
business model. This policy plays the role of a self-regulatory mechanism wherein the cited
business monitors and ensures its active conformity with the law, ethical standards and
international standards. Corporate Social Responsibility aims to grasp responsibility for
corporate actions and in order to encourage a positive impact on the environment and
stakeholders including consumers, employees, investors, communities, and others (Stenzel,
2010). This policy is titled to assist the cited organization's mission as well as a guide to what the
company stands for to its consumers. Business ethics is the part of applied ethics that examines
ethical value and moral or ethical difficulties that can originate in environment of the business.
ISO 26000 is the recognized international standard for corporate social responsibility. Public
sector organizations stick on to the triple bottom line (TBL). It is widely accepted that CSR
matches to similar principles, but with no conventional act of legislation as well (Geneva, 2010).
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TASK 2
2.1 Decision making at different levels of an organisation
Managers at all the levels are required to make some decisions on behalf of the company
and these decisions are related to the basic functions of Whiteswan, i.e., planning, organising,
staffing, directing and controlling.
Owner or Board: The mission of the Whiteswan is created by its owner or the board. It is
followed by all the management and business activities and a mission statement is also
prepared by them for its external and internal audiences (Frey, and George, 2010.). The
successful accomplishment of the mission takes various forms, and the forms selected
gives the vision of the business.
Top Management: The top management of the said company need a strategic plan.
Decisions related to the strategy formed involves the company matters performed over
long term. The management of White Swan then chooses a grand strategy like
diversification or growth for the accomplishment of the strategic goals. The top managers
spend much time in planning and decision making as compared to other levels of the
organisation. They also possess power of decision making over the middle management
(Mueller and et. al., 2003).
Middle Management: The middle management decides the smaller tactical objectives that
can be put together for achieving the strategic goals. These tactics are geared towards
some department or functions where an objective involves quality improvement or
efficiency that can be measured.
Operational Management: The operational management is also known as the first-line
management and is responsible for the employees. These managers work for the
accomplishment of the objectives of middle management by choosing their own goals on
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a weekly, monthly or daily basis. The decisions and plans adopted by these managers
includes scheduling, budgeting, inventory, etc (Tzschentke, Kirk and Lynch, 2008).
2.2 Evaluation of ethical decisions and ethical concepts

White Swan has been working successfully over the years because it ensures ethical
decision making. It pays enough consideration over keeping a balance between the satisfaction of
the employees and the customers and maintaining the moral values and customs. The decisions
making should be done by analysing the ethical approach towards the same as it will help in
softening the implication and in selecting a decision with better and long term results (DWYER,
2005). If decisions are not made ethically, it may harm the company in the future. On the
contrary, if decisions are made ethically, better short term results can be seen which can prove
beneficial for the said company as well as for its employees and customers.
In order to ensure ethical decision making in the organisation, White Swan adopts Fair
Trade practices in the organisation. It is about decent working conditions, fair terms of trade and
better prices for the customers. It provides better working conditions to its employees with health
and security benefits. It also provides better products and services to the customers at a lower
price then its competitors (Olsen, 2004). Adoption of Fair Trade results in an increase in the
economies of scale, output and production; and provides the company competitive advantages
too. It also improves the efficiency of the resource allocation and promotes use of new
technologies and innovative production methods. Adopting Fair Trade has also resulted in
gaining foreign exchange and has contributed towards increasing the rate of economic growth,
real income and living standards of the people by creating increased productivity, efficiency,
production level and competitive industries (Huber, Herrmann and Morgan, 2001).

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2.3 Business risk management
Risk management in business includes the processes and methods used to seize
opportunities and for managing the risks for achievement of the objectives. It involves
identification of particular circumstances or events related to the organisational objectives and
then assessing them in terms of magnitude of impact and likelihood, monitoring progress and
determining response strategy. It can also be referred as a risk-based approach.
There are several kinds of risks that can arise in an organisation. Some of them are:
Hazard risk (like, property damage, liability torts, natural catastrophe, etc.), Financial risk (like
currency risk, pricing risk, liquidity risk, etc.), Operational risk (like integrity, product failure,
reputational risk, customer satisfaction, etc.), Strategic risks (like social trend,
competition, capital availability, etc.). White Swan has been taking proper preventive measures
to reduce or eradicate these risks (Holjevac, 2003).
The risk management process adopted by the said company involves:
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Establishment of context: It involves the operating conditions of the company on an
internal, risk management and external context.
Identification of Risks: It involves representation of the areas that may exploited by the
said company for competitive advantage and documentation of the threats to
accomplishment of the organisational goals.
Quantifying/Analysing risks: It involves arranging and creating a probability distribution

of the outcomes of material risks, if possible (Gssling and Hall, 2006).
Integrating risks: It involves aggregation of risk distribution, reflecting portfolio effects

and correlations, and formulation of results on the basis of impact on White Swan's key
performance.
Prioritizing/Assessing risks: It involves determining appropriate prioritization and

contribution of each risk towards the aggregate risk profile.
Exploiting/Treating risks: In this, the strategies for exploiting and controlling various
risks are being developed.
Reviewing and Monitoring: It involves the continual monitoring and measurement of the
risk environment and performances of risk management strategies (Manaktola and
Jauhari, 2007).
Task 3 Ethics in tourism and hospitality research

3.1 Assessing market research needs and data collection methods
In order to deliver the best level of services to customers, it becomes very significant for
the firm to assess needs and demands of market because it is the only way through which firm
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can gain popularity and achieve objectives in desired manner. However, there are various
reasons which demonstrates the requirement of assessing need for market research, they are:
Helps to identify opportunities to serve various groups of customers: - Assessment of

market needs is crucial in getting opportunities to serve number of people according
their needs and demands (Ashley and et. al., 2007). In other towards, it can be said that,
market assessment assists the firm to measure consistent changes in customers
perceptions or requirements related to firm's products and services.
Examination of market size: - The cited hotel White Swan is a very old hotel and
managers of the firm are running business by maintaining proper standard. But this
standard can only be maintained by continuous research over market (Sillignakis and d).
As a matter of fact, there are continuous changes in market day by day, therefore, it can
be said that market size is continuously expanding. In this competitive marketing
condition, managers of the firm makes proper evaluation of market for meeting their
needs.
Determination of the best methods for meeting needs: - Assessing market needs helps
the firm to determine or identify the best suitable methods to meet demands of
customers in accurate manner. Firm can improve its services and quality of products
through determining customers expectations and purchasing frequencies (Yeoman,
2004). Though the cited hotel is very old but luxurious but maintaining quality is the
most important as well as necessary task to be performed
Data collection methods
Data collection is the technique of gathering and measuring information related to variables of
interest. Methods used in collecting data are of different types and they are explained below :
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Surveys: - In the cited hotel firm White Swan, managers conduct surveys which is also
known as paper and pencil method wherein number of open ended and closed ended
questions are asked to customers regarding firm's products and services (Smith and
Duffy, 2003). However, surveys are conducted through questionnaires and the most
advantageous feature of this method is that, it can be applied to large number of people
at single time and it is cost effective too.
Interviews: - Interviews are conducted wherein number of questions are asked to

respondents. It may be open ended or closed ended. The cited hotel White Swan can also
organize online interviews where data can be collected through asking questions online.
However, interviews can be formal or informal, structured or unstructured and can be
one on one or group interviews (Jafari, 2002).
Observations: - It is another data collection technique which helps to understand

behavior of people regarding the firm. Managers of the firm observes factors like
frequency of purchase, perceptions about the firm and feedback of customers. However,
observations depends of observers capability that how much information or data he or
she can gather in a specific time period (Hudson, 2008).
3.2 Ethical issues in tourism and hospitality research

In the cited firm, managers have to deal with number of issues on daily basis. In order to
remain sustainable in competitive market, organisations are taking on different initiatives for
staying well ahead of its competitors through lowering prices and increasing quality of services.
But the major issue is that, most of the customers are of the perception that competitive services
by number of firms are alike and there is no difference in among them (Brotherton, 2008).
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However, mangers of the firm have realized that competing only on the basis lowered prices is
not fruitful because it leads to uneven profits and unsettled marketing conditions. Therefore, they
have decided to build collaborative relationships and excellent partnerships with their own
customers in order to gain more knowledge about their customers so as a result, they can serve
them well. On the other and, some organisations regard ethics as a positive factor and realizes
that ethics and profits are inversely proportional to each other (Middleton and Clarke, 2012).
Complex and interesting ethical issues affects large firms which operates their business
from restaurants to tourism based industries. Top level management of the firm keep on facing
these issues on regular basis. Study states that European-based hospitality industries are
performing far better than American-based industries in context of implementing ethical
practices and corporate social responsibilities. The main reason behind that is, European
industries possess better knowledge of taking responsibilities and understating ethics through
publicizing their codes of ethic (Ritchie. and Crouch, 2003). Ethical decision making in the cited
hospitality firm includes deontology and teleology wherein the former is closely related with the
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notion of universal principles and truths while the latter one is used by managers of the firm to
solve ethical dilemmas.
Ethical issues make great impact on firm, most especially in context of decision making.
In this regard, ethical decision making is mostly influenced by the type or nature of ethical issue
faced by the firm. In the recent years, the firm has recognized that there is scarcity of natural
resources and this has resulted in the reinforcement of the environmental ethic (Yeoman and et.
al., 2012). Management gas dealt with number of initiatives in order to make appropriate use of
natural resources in order to manage their future operations. On the other hand, impact of ethical
issues can also be observed on quality of services and products provided by the firm. White
Swan managers have changed their way of services and production in order to ensure the best
quality of services. But quality can be achieved through maintaining standards. However, main
factors to be considered while managing quality are proper estimation of guest desires,
expectations and requirements suitable standards to meet satisfaction of customers (Buhalis and
Costa, 2006). But quality can be achieved when the firm has got good employees who can
understand and respect value of ethics both in their work as well as in their life.
3.3 Market research methods

In order to gain knowledge about market environment, there are number of methods
which can be used by the firm in order to understand consistent changes in customers
perceptions, needs and demands. Not only that but various external and internal factors are also
to be determined while researching market (Fennell and Malloy, 2007). Some research methods
that can used by White Swan hotel management are as follows: -
Primary research methods: - These research method are used to gather original information
through the help of different mediums such as Surveys, direct observations, interviews and focus
groups. Surveys are conducted by the firm in the form of questionnaires where a sample of
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population is targeted by the firm in order to ask various questions related to firm's services and
products. This method does not take much time to gather or collect information from people
because all target people can be surveyed in single time period (Tribe, 2011). The main
advantage of this method is that, it generates standardized, quantifiable, empirical data and some
qualitative data as well. It depends on White Swan managers whether the survey should be
descriptive or explanatory because it involves entire population or sample of it.
While, observation totally depends on the ability or capability of the observer who
collects data or information through his consciousness. It allows the researcher to represent the
actual behavior rather than responses related to behavior (Ryan, 2002). There are various types
of observations which includes participant or non-participant observation, candid to convert
observation and from structured to unstructured observation. In interview technique, number of
open-ended questions are asked to respondents which helps to generate quantifiable data and
more in-depth qualitative data as well. Though chances of mis-communication or
misinterpretation between researcher respondents are more but this technique helps to gather real
information about respondent's perceptions. Focus groups is qualitative research technique
wherein a group of people get together and they are asked about their perceptions, opinions and
beliefs towards products and services of the firm. In this method, questions are asked in
interactive manner (Buhalis and Law, 2008).


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Secondary research methods: - In this research method, information is collected through
published data. That can be either books, journals, new papers, internet, magazines or
educational institutions. Information gathered in this form of market research are already found
out by other and researchers find it easy to collect in short time period. The information gathered
through secondary research methods may include biasness. It is because information is updated
by different parties and people often add unnecessary or even false information to increase their
data (Hudson and Miller, 2005).
Task 4 Ethics in context of marketing

4.1 Ethical issues for tourism and hospitality marketing
Hotel White Swan, in order to deal with its marketing management, has to deal with
various ethical issues for promoting and maintaining standard of their business. It is very crucial
to maintain number of policies and procedures for increasing number of customers and providing
equal amount of satisfaction to customers as well as their own employees. Ethical issues in
context of marketing includes appropriate quality of services to customers without adulteration.
It has been seen many a time that hotel industries contaminate food by keeping it for long time
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period and customers has to face difficulties after receiving services from the firm (Dwyer and
et. al., 2009). It is prior responsibility of the cited firm to ensure their customers about quality of
foodstuffs and services they are providing. Marketing department of the firm needs to conduct
standard marketing research in order to ascertain knowledge about issues that are changing
customers perception and follow them to meet their requirements. The cited hotel has to make
effectively advertising strategies to promote business on broad level. However, firm can adopt
online advertising strategy also because most of the customers are using internet and they among
them. Huge portion of customers comes under the category of youth generation. Impressing them
through various schemes can be very helpful promoting the firm (Kang, Lee and Huh, 2010).
White Swan's marketing managers has to target their customers which and then have to
make effective policies to attract them. Marketing strategies made in order to increase
trustworthiness among customers. This is the most basic requirement for every firm to create a
sense of trustworthiness among their targeted customers. Loyalty is another professional ethic
that should be demonstrated by hospitality industries. Being loyal is one of the best policy to win
heart of customers (Laroche, Bergeron and Barbaro-Forleo, 2001). In this competitive market,
customers seek for those firms on which they can fully rely. In this context, management has to
avoid conflicts among their employees and to create a friendly-hood environment in the working
place. Simultaneously, firm has to treat its stakeholders in fair manner. Providing equal
opportunities to employees while recruitment and selection process, building a risk free
environment, assisting customers the best quality of services, payment of salaries and wages in
timely manner, distributing dividend to shareholders, following rules and regulations imposed by
the government of UK are some areas where the firm has to show fairness. Therefore, the above
mentioned ethics highly influence business firms in their marketing policies (Carrigan and
Attalla, 2001).
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4.2 Contemporary issues in tourism and hospitality industries
The cited hotel managers has ascertained the significance of developing and
implementing ethics in hospitality industry. Similarly, scholars are also interested in examining
the decision behavior of hospitality industries. However, ethical issues in hospitality
management includes social responsible behavior, implementation of ethics codes and human
resource's ethical decision making. Human resources includes professionals and staff members
of the firm who has to make decisions and to face challenges on daily basis (Holjevac, 2008).
Ethical behavior of front-line employees: - In the cited hotel, ethical values and job-related
behaviors and of the front line employees play significant role in business transactions and
providing consumer service experience. In almost every hotel industry, it is not necessary that
customers get satisfied by tangible services like standard or furnished rooms and qualitative food
but along with that they also seek for well behavior of staff towards them. Customers also need
to get favorable interaction with front line employees (Legohrel and et. al., 2004). Positive
attitudes of staff members towards visitors increases possibility of repetition of customers in the
same firm while on contrary to it, if attitudes and behavior of customers is perceived negatively
or unethical by guests, they are likely to reduce their assessment of the service received. There
are four types of dimensions that can be observed in hotel employees job-related ethics such as
'no harm', for example, making a phone call in customers room in order to inspect presence of
customer. Second one is, 'unethical behavior', or example, offering free tea or coffee at hotel or
restaurant. Thirdly, 'passively benefiting' for example, breaking of hotels assets like glass, table
or plate but blaming on customers carelessness (Scott and Orlikowski, 2012). And lastly,
'actively benefiting' for example, accepting tips in order to arrange a room change for a guest.
Manager's ethical orientation and behavior: - Most of the scholars are of the view that hotel
managers should keep more focus on their shareholders in order to gain more and more
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profitability. Along with that, social responsibility orientation and profitability are compatible
and critical to the organization's success.
4.3 Business decision making in context of ethics

Managers of White Swan hotel are very often required to make various types of decisions
in the business environment in day to day operations in order to compete with external market.
However, employees or managers who are working in the hospitality firms are often required to
follow an ethical model or framework while making decisions. Important thing is that, all the
business ethics points out acceptable behavior that the cited firm expect to see from their
employees (Slaper, 2011). Following business ethics can lead to strong decision making and
business ethics which can assist the firm to select the business opportunities. Decision making in
business ethics normally requires the firm to ascertain specific ethical standards which means
different things to different people. As the cited firm can consistently develop and expand, new
staff members who are employed in the firm are not necessary to possess all business ethics
which are possessed by existing senior employees.
However, there are five types of ethical standards such as: utilitarian, rights, fairness or
justice, common good and virtue. Where, utilitarian ethic is that type of standard which is aimed
at performing goop practices mostly and avoiding or limiting the amount of harm for each and
every individual working in the firm (Mahon, Becken and Rennie, 2013). Whereas, the rights
ethic is a standard that protects the moral rights of employees who are impacted by the decisions
taken by the top level management. Another great advantageous ethic is fairness or justice,
which approaches to build equality in all the staff members. The common good ethic focuses
getting betterment in society as a whole. Last but not the least, the virtue plan of action triggers
on the ideal moral excellence for promoting employees for White Swan.
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From the functional point of view, business ethics is a special tool that is used by the
cited firm in order to ensure managers, director as well as executive officers to act responsibly in
certain business consequences. Ethical business decision making helps the firm in promoting the
company as a whole, rather than letting one individual profit from business decision. On the
negative side, individuals who consistently make business decisions which are based on their
personal benefit are likely to create legal liabilities for the firm itself and results in bankruptcy.
For any business organization, it not possible to create an ethical business environment in
manner. It is essential for the cited firm too, to spend huge amount of capital for training and
developing their employees to get learn everything related to business ethics. Every time it is not
possible to get positive feedback from employees and managers after rendering training and
development programs. The firm can also find negative feedback from their employees and other
staff members regarding training of ethical business decision making policies. However,
conflicting or engaging this negative feedback of employees can be a very difficult part of
implementing business ethics.
For coping up with these ethical issues, the cited firm can take assistance from
professional consultants, seminars as well as other training methods in order to train and develop
employees on decision making in business ethics. Apart from giving training on ethical decision
making, all these outside sources also helps the firm to provide an objective review of their
existing operations and offer advice on how to implement powerful ethical code in cited firm's
business operations. Though these external sources are very expensive, but they help the cited
firm to develop an ethical business environment over a longer time period.

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Task 5 Roles of managers and stakeholders on strategic planning
5.1 Evaluation of levels of influence and power among stakeholders
Stakeholder analysis is the process of identifying the groups or individuals that can or can
be affected by an action and sorting them on the basis of the impact the actions will have on
them and the impacts they will have on the actions. The main aim of stakeholder analysis is to
develop cooperation between the project team and the stakeholders and, thus, ensuring successful
outcomes of the project. Examples of the key stakeholders of an organisation are directors,
government, creditors, employees, trade unions, community, owner, supplier, customers, etc.
Stakeholder analysis helps in formulating the marketing strategies effectively because it pays
enough consideration over the target customers, product development and promotions
(Legohrel and et. al., 2004). It also helps in optimizing production and satisfaction of the
employees by analysing their role in the organisation. Stakeholder analysis helps in motivating
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the employees by understanding their needs and interests. It leads to impress the community by
maintaining a favourable image in the community. It also helps in forming partnerships because
partners usually expect openness and integrity for the benefit of all those who are involved in the
business.
White Swan uses the Power/interest Matrix for the purpose of evaluating the level of
influence and power among the stakeholders. Following are the four quadrants of the said
matrix:
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The stakeholders that lie in manage closely quadrant possess high power and high interest
in the business. The stakeholders under this quadrant should be provided with enough work in
order to keep them engaged and great efforts should be done for their satisfaction. It includes the
owner, customer, creditors, etc. These stakeholders can affect the business to a great extent.
In the Keep satisfied quadrant, stakeholders possess high power and low interest. The
stakeholders under this quadrant should be provided with adequate work so that they don't get
bored with the work and remains satisfied simultaneously (Holjevac, 2008). It includes trade
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unions and the government. These can affect the business but do not have much interference or
interest in the business.
The stakeholders in the Keep Informed quadrant possess low power and high interest in
the business. These stakeholders should be provided with adequate information to ensure that no
major issue arise in the business. These people sometimes prove to be beneficial regarding the
details of the projects of the company. It includes suppliers and directors of the organisation.
In the Monitor quadrant, the stakeholders possess low power and low interest. The
stakeholders in this quadrant should be communicated properly but it should be ensured that they
are not bored with the excessive communication. The management pays minimum efforts for the
satisfaction of the stakeholders under this quadrant (Dwyer and et. al., 2009). It includes
employees and the community.
5.2 Triple bottom line

It is an accounting framework which includes three parts such as social, environmental
and financial. These three divisions are known as three Ps, people, planet and profit and are also
'known as three pillars of sustainability'. Most of the organisations including White Swan has
adopted this framework to evaluate their performance in a wide context. However, in traditional
business organisations, bottom line strategies was used which meant either profit or loss. But
in the modern era, triple bottom line framework is used.
People: - It refers to fair and advantageous business practices towards employees, community
and region in which a business entity corporate business (Mahon, Becken and Rennie, 2013).
The cited firm adopts this framework which ensure that it seeks to provide benefit to many
constituencies and also does not exploit or endanger any of them. Another major influence of
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Triple Bottom Line can be seen in the form of resisting every company to not to make used of
child labour and it also monitors all contracted firms for child labour exploitation.
Planet: - Planet means sustainable environmental practices followed by the firm. A triple bottom
line firm attempts to benefit the natural order as mush as possible and never tries to harm or
reduce environmental impact on the firm. A triple bottom line firm never produces harmful
products like weapons, toxic chemicals or batteries which contain dangerous heavy metals.

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Profit: - It is the economic value which is created by the organization after reducing the cost of
all the inputs including cost of capital. Therefore, it is totally different from traditional
accounting definitions of profit (Rimmington, Williams and Morrison, 2009). This aspect needs
to be seen as the actual economic advantage gained by the host society. Therefore, the genuine
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triple bottom line approach cannot be understood as simply traditional corporate accounting
profit plus social and environmental consequences unless the profits of other entities are
enclosed as a social welfare.
5.3 Scope of business decision making to strategic plans

Strategic plans plays very crucial as well as influencing role in business decision making
process. Plans which are created by the firm are fixed for a long period but environmental
changes are changeable in frequent manner, therefore, the cited firm has to gain flexibility in its
operations. Procedures of the firm should be arranged in such a way that can fit in any
circumstances. However, planning impact most probably financial part because, financial
managers calculates the required amount of capital for a specific time period, in this situation, if
there is any internal or external change occurs, firm has to modify their capital in order to meet
requirement of the change (Perdue, Immermans and Uysal, 2004). For example, sudden climatic
changes like flood or earthquake can changes the perceptions of customers. In this type of
situations, firm needs to implement changes in its policies, procedures and decisions.
In nutshell, it can be said that decision making process of the firm is entirely based on
strategic planning of the firm. In any, decision are taken on the basis of planning. In the cited
firm also, management has to make effective decisions which fits the need and requirement of
the firm to meet their objectives. White Swan is the chosen firm, which is one of the oldest hotel
in the UK. Therefore, it can be understood that managers of the firm would be highly talented.
So, they will have numerous plans and policies into their minds regarding uncertainties. They
would have enough knowledge about tackling with situations of changes in decision making on
the basis of plans they have made (Dwyer and et. al., 2009). It can be said that if the firm makes
effective planning before initiating business or any other small project, management will not find
it difficult to achieve their goals due to strong planning.
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Conclusion
With the help of this report, it has been concluded that tourism and hospitality industries
have to tackle with number of problems on daily basis. And for coping up with all those issues,
they have to make effective planning and strategies which can easily help them to solve their
problems. Ethical issues have been broadly explained in this project through which it ha been
understood that tourism sectors have to keep control over its activities through following
numerous ethics in their business. It has also been concluded that business decision making and
strategic planning are closely interrelated with each other.
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References
Books
Becken, S. and Hay, J. E., 2007. Tourism and climate change: Risks and opportunities.
Multilingual Matters.
Brotherton, B., 2008. Researching hospitality and tourism: a student guide. Sage.
Buhalis, D. and Costa, C., 2006. Tourism management dynamics: trends, management, and
tools. Routledge.
Fennell, D. A. and Malloy, D., 2007. Codes of ethics in tourism: Practice, theory, synthesis.
Channel View Publications.
Fennell, D. A., 2006. Tourism ethics. Channel View Publications.
Gssling, S. and Hall, C. M., 2006. Tourism and global environmental change: Ecological,
social, economic and political interrelationships. Taylor & Francis.
Hudson, S., 2008. Tourism and hospitality marketing: a global perspective. Sage.
Jafari, J., 2002. Encyclopaedia of tourism. Routledge.
Middleton, V. T. and Clarke, J. R., 2012. Marketing in travel and tourism. Routledge.
Perdue, R. R., Immermans, H. J. P. and Uysal, M., 2004. onsumer psychology of tourism,
hospitality and leisure. CABI.
Rimmington, M., Williams, C. and Morrison, A., 2009. Entrepreneurship in the hospitality,
tourism and leisure industries. Routledge.
Ritchie, J. B. and Crouch, G. I., 2003. The competitive destination: A sustainable tourism
perspective. Cabi.
Silvers, J. R., 2009. Risk management for meetings and events. Routledge.
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Smith, M. and Duffy, R., 2003. The ethics of tourism development. Psychology Press.
Tribe, J., 2011. The economics of recreation, leisure and tourism. Taylor & Francis.

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2.2 Evaluation of ethical decisions and ethical concepts

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The risk management process adopted by the said company involves:

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Quantifying/Analysing risks: It involves arranging and creating a probability distribution

Integrating risks: It involves aggregation of risk distribution, reflecting portfolio effects

Prioritizing/Assessing risks: It involves determining appropriate prioritization and

Task 3 Ethics in tourism and hospitality research

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Helps to identify opportunities to serve various groups of customers: - Assessment of

Data collection methods

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Interviews: - Interviews are conducted wherein number of questions are asked to

Observations: - It is another data collection technique which helps to understand

3.2 Ethical issues in tourism and hospitality research

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3.3 Market research methods

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Task 4 Ethics in context of marketing

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4.3 Business decision making in context of ethics

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5.2 Triple bottom line

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5.3 Scope of business decision making to strategic plans

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Fennell, D. A., 2006. Tourism ethics. Channel View Publications.

Jafari, J., 2002. Encyclopaedia of tourism. Routledge.

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Ethics, Risk & Decision Making in Tourism & Hospitality

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