1. Prevention Philosophy
Chapter 1
Prevention Philosophy
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.
Images used under license from Shutterstock.com

2. Prevention Philosophy
The Future Hospitality Manager and the Legal Environment
The Hospitality Manager and Legal Management – Preventative Legal Management
Ethics and the Law
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

3. In This Chapter, You Will Learn:
Why a study of laws related to hospitality is important.
The historical origins of the law and its evolutionary nature.
A philosophical framework to help prevent legal difficulties before they begin.
How to evaluate management actions on an ethical basis.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

4. The Future Hospitality Manager and the Legal Environment
Unique and diverse operating environment
Estimated that % of decisions made daily have legal dimensions
Those decisions influence the potential for litigation
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

5. The Future Hospitality Manager and the Legal Environment
Legalese:
Attorney - Any person trained and legally authorized to act on behalf of others in matters of the law.
Litigation - The act of initiating and carrying on a lawsuit. Often, used to refer to the lawsuit itself.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

6. The Hospitality Manager and Legal Management
Legalese:
Law - The rules of conduct and responsibility established and enforced by a society.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

7. The Hospitality Manager and Legal Management
Know the historical origins of the law.
Recognize that laws have an evolutionary nature, based on changes in society.
Understand how to use a philosophy of preventative management to manage the legal environment and minimize the chances of litigation.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

8. Historical Origins of the Law
Legalese:
Common Law – Laws derived from historical customs and usage of a society, and the decisions by courts when interpreting those customs and usages.
Civil Law – The body of law (usually in the form of codes or statues) created by governmental entities that are concerned with private rights and remedies, as opposed to criminal matters.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

9. The Evolutionary Nature of Common Law
Legalese:
Hospitality Law - Those laws which relate to the industry involved with the provision of food, lodging, travel, meetings, events and entertainment services to its guests, employees, vendors and clients.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

10. Preventative Legal Management
STEM
The Tide of Litigation
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

11. What Is STEM?
A process that can be implemented that will reduce employee errors and omissions - and litigation.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

12. The Components of STEM Select Train Educate Manage and Motivate
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

13. STEM the Tide of Litigation
Legalese:
Liable – To be legally responsible or obligated.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

14. Select Select the right employee for the specific job.
Cannot just hire anyone at the last minute.
Cannot “just hire” anyone anymore.
Use specific job qualifications, written job specifications, and information derived from a thorough investigation for all candidates.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

15. Train
Train your employees the right way to perform the task(s) the first time. It is easier and less costly to train than to retrain.
Ensure that the trainer is properly trained himself/herself.
Assess training efforts
to verify retention.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

16. Educate
Educate yourself about new trends, technological innovations, laws, and rules and regulations which impact your segment of the industry.
Now you are in a better position to train your employees and be successful in the industry.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

17. Management and Motivation
As a manager - Lead by example!
Today’s culturally diverse workforce will require diverse motivating techniques.
People are motivated by different things.
Find out what it is that motivates your employees.
Involve employees in the process.
Ask your employees how you are doing as a manager.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

18. Positive Management and Employee Loyalty
How to become a positive manager and build employee loyalty.
raise employee morale and self-esteem
reduce turnover
enhance service
enhance customer satisfaction
reduce litigation
enhance the bottom line
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

19. Analyze the Situation 1.1
A fellow supervisor confides in you that he has been arrested a second time in two years for driving under the influence of alcohol. His current case has not yet gone to trial. This supervisor is responsible for the late-night closing of the restaurant in which you both work.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

20. Analyze the Situation 1.1
Should you discuss this situation with the restaurant's general manager?
Which aspect of STEM is relevant here?
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

21. Ethics and the Law Legalese:
Ethics – Choices of proper conduct made by an individual in his or her relationships with others.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

22. Ethical Situation
Assume that you are the food and beverage director of a large hotel. You are planning for your New Year’s Eve gala, and require a large amount of wine and champagne. You conduct a competitive bidding process with the purveyors in your area and, based upon quality and price, you place a very large order (in excess of $20,000) with a single purveyor.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

23. Ethical Situation (con’t)
One week later, you receive a case of very expensive champagne, delivered to your home with a nice note from the purveyor’s representative stating how much it appreciated the order and that the purveyor is really looking forward to doing business with you in the years ahead. What do you do with the champagne?
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

24. Ethical Situation (con’t)
Ethical Analysis 
Your first thought may be the most obvious one; that is, you drink it. But hopefully, you will first ask yourself the seven questions of the ethical decision-making process.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

25. Ethical Decision-Making Process
Is it legal?
Does either the law or company policy prohibit this activity?
Does it hurt anyone?
Will this action negatively impact any stakeholders?
Is it fair?
To all the stakeholders
Am I being honest?
With yourself, and with the company
Would I care if it happened to me?
Would I publicize my action?
What if all the stakeholders became aware of your action?
What if everyone did it?
Could the business effectively operate in an equitable fashion?
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

26. What Would You Do?
Assume that your local municipality is considering the passage of a law that would prohibit the sale of all tobacco products from the interiors of bars and restaurants, but not grocery stores. The restaurant you manage has a cocktail lounge, and cigarettes are both consumed and sold in that section of your restaurant.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

27. What Would You Do?
There is no current effort to prohibit smoking in cocktail lounges, such as the one you operate. You are considering whether to address the local government body charged with creating such legislation.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

28. What Would You Do?
What are the major considerations you will think about before you decide to support or oppose the proposed legislation?
Will the fact that you do or do not smoke influence your position?
Which ethical issues are in play here?
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

29. Rapid Review
Prepare a five-minute training session for your staff that emphasizes the importance of prevention, rather than reacting to, legal liability. Give an example of a situation where this might arise.
Give an example, other than the one mentioned in the text, of a recent change in federal, state, or local law that has impacted the hospitality industry. Explain why you believe the law was enacted and whether you believe it was good legislation.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

30. Rapid Review
Give a hospitality example of the importance that “selection” makes in the STEM process.
Give a hospitality example of the importance of “teaching” in the STEM process.
Give a hospitality example of the importance of “education” in the STEM process.
Give a hospitality example of the importance that “managing” makes in the STEM process.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

31. Rapid Review
A vendor has agreed to clean your hotel carpets at a very competitive price. In a telephone conversation with you, the vendor states that if it gets the contract, he will “do your home carpets once a year” as a thank-you. Apply the seven criteria for ethical behavior to this situation.
Using the Internet, locate a state law of any type that relates to business operations. Keywords to use include “state,” “laws” and “business.” Describe the law in a one-paragraph essay.
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.

32. Think about this on your way out...
Imagine if an international hotel guest offered an expensive token of gratitude to you, the general manager of a luxury hotel for providing exceptional customer service but the hotel’s corporate office has a conflict of interest policy about accepting non-perishable gifts from customers.
What would you do?
© 2017 Stephen Barth, P.C., Diana S. Barber, JD and John Wiley & Sons, Inc.
                                All Rights Reserved.