I am a logistics expert attached to the Human Resource Department in Marriot Hotel. My immediate boss is the Human Resource manager. She along with the rest of the management has reached a decision to lay off a few employees in light of the current financial strains. I am submitting a paper showing the unethical strategy applied in the decision and the impact it would have on the hotel business. Positive Impacts of Ethical Strategy in Marriot Hotel Ethics is the application of values to a situation in order to judge whether they area right or wrong.
They govern the human action with regard to the action and the consequence of the action. Therefore, ethical strategies suggest that there is use of moral and philosophical guidelines in the plans or courses of action set out. According to Open2, the concept of ethical strategy suggests that there has been consultation with the stakeholders involved and there has been action towards the satisfaction of their interests in the business or venture (Open2, 2008). The role of ethics in business is a topic of much discussion and controversy. As seen, the role is supposed to make the business satisfy the interests of all parties.
It is therefore imperative that we find a balance between the many parties interested: the stakeholders, the employees, the community and the government. It is impossible to satisfy all the parties to the same level without hurting one party. While considering the economics of this, the pareto efficient allocation point in regards to satisfying the parties is ambiguous. Pareto efficiency refers to allocations that benefit both parties to the maximum possible (Wilber, 1998). If you engage in more community initiatives, you rob the stakeholders of their profit margins.
If the government declares an increase in tax, then the stakeholders’ costs rise. They may opt to reduce the staff size, hereby hurting the interests of the employees. Ethics has its share of controversies (open2, 2008). However, in this ethically aware generation, ethics can be used to our advantage or disadvantage. The consumer market quickly identifies with the ethical issues involved in the business. This can be a marketing point or a repelling cause. The market is been influenced by lobby groups to use the ethics of the business practices to influence their consumer patterns.
This is why there has been a very large explosion of companies publicizing their ethical grounds and developing the corporate responsibility culture; to its employees, to the society and to communities that are underprivileged. It has been noted that the employees are more likely to give higher commitment and output to an employer enterprise they view as ethical as opposed to one that is not. The customer will have higher consumer loyalty to a company considered ethical. Thus in the end you have a case of increased output and increased sales. This simply translates to increased profit.
Ethical strategies involve the employee’s interest in mind and therefore have the effect of making them feel part of the organization. They therefore give out higher output as a result (The Times, 2008). With this in mind, I would specifically like to cite the unethical strategy in place here at work. The economic situation worldwide has resulted in the global slump. As a result the hotel has been experiencing a strain on both its demand and supply sides. In the demand side, the reduced bookings and lower meal turnout has resulted in the reduced sales volume. This is also complicated by the reduced tourist bookings from the Far East.
The management decided to give discounts to encourage an increase in local demand, which unfortunately has not worked as well as expected. On the supply side, the general price level is on the rise. This has, however, been slowed down by the decrease in the price of oil worldwide. However, this does not cancel out the sales drop effect. It was in this light that the management decided that it would trim the lower level staff in anticipation of worse times ahead. This decision is strategically unethical. The problem here lies with the decision to trim staff in light of a temporary economic problem.