Chapter 7

Question 1

Who are internal stakeholders?

Answer 1

equity investors, lenders, management, employees

Question 2

Who are external stakeholders?

Answer 2

customers, consumer associations, environmental protection groups

Question 3

What is the Global Compact

Answer 3

worldwide pact signed in 2000 by 173 countries between companies and UN for the sociological and ecological shaping of globalization.

aim: be socially responsible corporate systems, abolish child and forced labor, prevent discrimination in workplace, support trade union rights, install environmental protections, disseminate environmentally-friendly technologies

Question 4

What are benefits of ethical behavior

Answer 4

-can lead to higher profits
-improved long-term corporate image

Question 5

What are two important principles in business ethics?

Answer 5

-environmental protection
-social responsibility

Question 6

What is ethics?

Answer 6

Moral principles that govern a person’s behavior

Task of general ethics: establish criteria for good, acceptable and moral actions & decisions

Question 7

What is the focus of business ethics?

Answer 7

Identify solutions and ways to achieve goals of shaping the economy and social systems in accordance with generally acceptable legal and ethical standards

Question 8

What are ethics management systems?

Answer 8

ethics management system helps define and uphold a company’s moral principles, ensuring responsible behavior towards all stakeholders.
It includes a code of ethics, accountability mechanisms, and regular assessments to monitor compliance. This system not only promotes responsible business conduct but also enhances the company’s reputation, customer trust, and employee satisfaction.

Question 9

Why were values and ethics management systems created and implemented?

Answer 9

to create link between individual and organizational behaviors

to facilitate in mediating conflicting issues between and among various stakeholders

can be seen as successfactors

Question 10

What is the name of the professional association of ethics managers?

Answer 10

Ethics Officers Association (EOA)

Question 11

What is personal ethics?

Answer 11

regulates behavior of superiors towards employees and relationship between employees.

Objective: shape social direction of company

Question 12

What are examples of ethical behaviors in an organization?

Answer 12

-equal treatment and equality of employees

-effort to maintain, secure and create jobs

-compliance with health and social standards

-respect for human rights

-incorporating environmentally-friendly production process into business process

-offering high quality products and services

-integration of customer advisory and complaint management system into company

-maintaining ethical principles in work process: issuance of pertinent contracts (employment, sales, contracted services) that are highly negotiable and may be modified to put weaker party in a advantageous position

Question 13

What are the incentives of corporate not to abide to moral compliance?

Answer 13

• incentive to override shareholders to maximize profits

-incentive to waste corporate resources to increase own wealth

Question 14

Where do you check for corporate ethics?

Answer 14

social balance sheets
codes of conduct
corporate mission statements
appointing ethics officers
creating ethics network

Question 15

What are further ways to check compliance compliance management system and consequences?

Answer 15

monitor code of ethics: regulates general behavior guidelines, employee behavior, responsibility towards interest groups; corporate objectives are presented and defined

recommend appropriate sanctions if company is found guilty of mismanagement

Question 16

What is goal for companies concerning ethical behavior

Answer 16

-ensure that business opportunities don’t compromise well-being of society and stakeholders

Question 17

What is corporate governance?

Answer 17

comprises the rules and principles relating to the organization and conduct of how a company is managed and controlles

Question 18

What are advantages of corporate governance and ethical measures?

Answer 18

-positive public image

-trust in company is strengthened

-easier to deal with legal regulations and authorities

-can lead to greater customer satisfaction=higher market sales

-improvement of market position

-long-term impact on sales development and economic success

-increase transparency=weak point and risks can be identified at early stage=improves and expands relationships with customers & business partners

-employees better identify with employer=employees are more satisfied and motivated=higher work performance=greater sense of loyalty to company

Question 19

What are disadvantages of corporate governance and ethical measures?

Answer 19

-difficulties introducing and implementing ethical aspects

-losing competitive advantage through new behaviors

-having to bear higher costs

-more focus on shareholder value than customer interests may yield no benefit

Question 20

What is the Global Reporting Initiative (GRI)?

Answer 20

emphasizes on integrated innovation management combined with measurable standards

Question 21

What is ISO 14001 certification

Answer 21

standard for sustainability reporting

Question 22

What are differences between western hotels and asian hotel companies?

Answer 22

Western: emphasize on integrated innovation and sustainability

Asian: pursue more diverse sustainability initiatives: HR development, compensation, environmental sustainability, energy sources&conservation, risk management

Western hotel companies employ standardized and measurable methods like GRI standards or ISO 14001 certification for environmental management, whereas Asian hotel companies strive for a broad spectrum of initiatives from human resource development and compensation to risk management. Both approaches reflect their respective cultural values and stakeholder expectations.

Question 23

What are benefits on focusing on sustainability for hotel chains?

Answer 23

-cost savings, image gains, increase in number of overnight stays

Question 24

What is greenwashing?

Answer 24

companies who advertise environmentally-aware measures which have less impact on environment and more impact on company’s benefit

-pretense if responsible practices

Question 25

What are Wyndhams’ four pillars of social responsibility program?

Answer 25

-diversity and inclusion: internal advocacy groups (pride for LGBTQ; next-generational dialogue), training to recognize and avoid prejudice and unconscious bias for affinity groups

-human rights: combating human trafficking (partnership with ECPAT-USE end child prostitution & trafficking, organization committed to ending commercial sexual exploitation of children; Polaris-organization against modern slavery); employees are trained to recognize warning signs and act accordingly

-sustainability: conserving natural resources and reducing environmental footprint (Wyndham Green Certification-five-level program from core to export practices towel reuse, energy-efficient indoor/outdoor lighting, water-efficient shower heads/toilet flushes, water, energy consumption & Co2 emissions reported to GRI and published in sustainability report

-philanthropy: in-kind donations and volunteerism