HOSPITALITY & TOURISM 5.02A Interpret the nature of business ethics and social responsibility 5.02B Exemplify legal issues affecting businesses

Ethical Issues Ethics consists of principles of conduct that govern the behavior of an individual or group Ethics create a system of moral rules that help people decide right from wrong. Ethical behavior is doing the right thing even when under pressure to do the wrong thing Business ethics are a set of ethics that you want your employees to follow

Eight Guidelines for Ethical Behavior 1. Honesty: tell the truth, even if you may have done something incorrectly 2. Integrity: Always do what you know is right 3. Trustworthiness: Be reliable 4. Loyalty: Keep confidential information confidential. Do not say bad things about your employer 5. Fairness: Treat everyone equally. 6. Concern and respect for others: Care about fellow employees 7. Commitment to Excellence: Always do your best 8. Accountability: Be responsible for your actions

Code of Ethics A code of ethics is a written list of rules for ethical behavior (aka code of conduct)

Code of Ethics

Ethical Decision Making Questions to ask: Is it legal? Does it hurt anyone? Is it fair? Am I being honest? Can I live with myself? Would I publicize my decision? What if everyone did it?

Ethics in Hospitality The reputation of the hospitality industry is judged by the actions of each owner, manager, and employee. The ethical action of each employee can affect the ethical reputation of the whole industry.

Ethics in Hospitality Truth-in-Menu Laws were developed to protect consumers from unethical restaurant owners and require accuracy in menus Sexual Harassment is illegal and unethical. Managers are required to investigate any occurrences of sexual harassment Discrimination is showing prejudice in the treatment of a person because of their age, race, religion, national origin or gender Technology Issues: servers having access to guests credit cards, use of company computers for nonbusiness reasons

Work Ethic Guidelines for good work ethic: 1. Act in a professional manner 2. Keep your personal life private 3. Do Not Steal 4. Do Not Waste Resources

HOSPITALITY & TOURISM 5.02A Interpret the nature of business ethics and social responsibility 5.02B Exemplify legal issues affecting businesses

Laws and Regulations Laws are society’s rules for proper behavior. Regulations are specific rules that are developed based on law

Hiring and Employment Laws Equal Opportunity laws require employers to treat everyone equally during the hiring process The Civil Rights Act of 1964 and 1991 were passed to prevent discrimination against people based on their race, religion, sex, or national origin. Workers’ Rights Fair Labor Standards Act of 1938 Workers’ Compensation: employers must provide medical coverage for any illness or injury that an employee experiences as a result of the job

Worker Safety Laws & Food Safety Laws Occupational Safety & Health Act The main federal law that protects worker safety Also established the Occupational Safety & Health Administration (OSHA) which enforces the OSH Act Food Safety Laws The Food, Drug and Cosmetic Act is the main law that protects the safety of food in the U.S. Food and Drug Administration (FDA) is the government agency that makes and enforces regulations based on the Act

Zoning & Building Laws Zoning is the process of designating specific geographic areas for specific uses Zoning laws are the laws concerning where businesses can be built Building codes are rules and regulations designed to make buildings safe

Environmental Protection The quality of the environment has two major impacts on the hospitality industry 1. Health: hospitality businesses need clean, safe air and water and food that is not contaminated by pesticides or other toxic chemicals 2. Recreation: depend on the beauty and safety of natural areas Environmental Protection Agency (EPA) is the lead federal agency to make and enforce environmental regulations.

Liability Issues Liability is the responsibility to pay for damages or loss Injuries to Guests Property Damage or Theft Guest Privacy