Thesis

COLLEGE OF THE IMMACULATE CONCEPTION CABANATUAN CITY

Professional Ethics on Hotel and Restaurant Management in Cabanatuan City: An Implication to Industry Patronage

Submitted by: Ramonchito Del Rosario Agustin MBA Submitted to: Mrs. Germina E. Santos Ph.D Professor

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Chapter I THE PROBLEM AND ITS SETTING 1.1 Introduction Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only how the business interacts with the world at large, but also their one-on-one dealings with a single customer.(wiseGEEK 2011) Many businesses have gained a bad reputation just by being in business to some people, businesses are interested in making money and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the

manner

in

which

some

businesses

conduct

themselves

that

brings up the questions of ethical behavior. If a company does not adhere to business ethics and breaks the laws, they usually end up being fixed. Many companies have broken anti-trust, ethical, environmental laws and received fine worth millions. The problem is that the amount of money these companies are making outweighs the fine applied. Billions dollar profits blind companies to their lack of business ethics. In the

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end, it may be up to the public to make sure that a company is making large amounts of money they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics. But in the

competitive

world,

they

are

becoming

very

few

and

far

between. The

professional

ethics

is

partly

comprised

of

what

a

professional should or should not do in the workplace. It also encompasses

a

much

greater

part

of

professional

life.

(toolbox.com) There is a growing interest in the effectiveness of code of ethics in guiding individuals’ behavior in the workplace. Much of the recent attention has centered on improving the code of ethics of individual corporations, including hotel firms. Few analyses

have

professionals

been

done

focusing

associations

which

on are

the

codes

often

put

forth

responsible

by for

maintaining professionalism and integrity among their members. Given the decreasing loyalty of employees toward individuals, firms and the increase in loyalty about the potential impact of including key ethical values in order to guide member’s action. (International Journal of Hospitality Management 2001).

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In the hospitality industry ethical issues abound both for the business itself and the community at large. Business ethics is a complicated subject that can be described as the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer (wiseGEEK, 2009). Now the hospitality industry in general and hotels specifically have seem to be behind most businesses when it comes to ethics in concern to going green, human rights, diversity, human resources, and hotel relationships. When it comes to the environment, from a business ethics standpoint, are hotels doing enough to help the environment? This question is at the heart of an ethical dilemma concerning the hospitality industry. Is a green program such as bedding enough? Do hotels do enough to conserve water, electricity, and gas? These are very important issues to the world, but as a business the expense does not always calculate in the cost to the rest of the world when changing out a toilet to low flow, or creating a save the planet bedding program, or using fluorescent bulbs and energy efficient air conditioners. These changes to a hotel are very expensive undertakings, and again the cost to the

5

business owners does not always include the benefit to the world in

their

decision

to

implement

or

not

to

implement.

Human rights, is another area where hotels have ethical issues to deal with. Some ways that human rights issues are ethically affecting health

hotels

and

exploitation displacement These

issues

include

safety, of of vary

child

commercial

migrant

and

workers,

to

of

workplace children,

discrimination,

people

country

labor,

exploitation

indigenous from

bonded

(Roner,

country,

but

as

and 2009).

a

whole

something that needs to be looked upon. Just like going green many hoteliers do not look at the benefits to the world while looking

at

their

costs.

Human resources are another ethical dilemma to look upon. When a hotel makes major changes to the heavier and more labor intensive items in rooms, such as bigger fluffier beds, more pillows,

more

amenities,

more

amenities,

more

amenities,

but

when it comes to the labor force involved in keeping up with these amenities there is not an increase in any way and expect the labor to do everything in the same amount of time. This will lead to more on the job injuries and more exhaustion. It is all about keeping up with the Jone’s in the aspect of giving guests more to get them to stay or keep staying, but on the other hand,

6

they

want

to

keep

costs

down

to

a

minimum

hurting

their

workforce. The human factor is also affected by these changes or non-changes in longevity of keeping workers. Ethical and moral dilemmas

abound.

Another ethical dilemma is in taking advantage or misusing professional acquaintances and equipment. I found that special offers to group planners to stay at a particular property, or giving complimentary rooms to planners for their own recovery or use, or even asking for a favor for oneself, an example of personal gain. These types of programs are affluent in the hotel industry and are a regular business practice. Are these programs ethical?

That

is

for

others

to

determine,

they

are

common

business practices from the experiences of those who have worked in

the

industry.

Atul Sharivastava 2010 about The Global Code of Ethics for Tourism (GCET) a comprehensive set of principles who purpose is to guide stakeholders in tourism development: central and local governments,

local

professionals,

as

communities, well

as

the

tourism

visitors,

both

industry

and

its

international

and

domestic. The Code was called for in a resolution of the UNWTO General

Assembly

in

Istanbul

in

1997.

In

October,

1999

the

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resulting

10

point

Global

Code

of

Ethics

for

Tourism-

the

culmination of an extensive consultative process was approved unanimously by the UNWTO General Assembly meeting in Santiago. The Global Code of Ethics for tourism sets a frame of reference for

the

responsible

and

sustainable

development

of

world

tourism. It drawn inspiration from many similar declaration and industry codes that have come before and its adds new thinking that reflects our changing society at the beginning of the 21st century.

Hotel business is a big business and it affects so many people. Therefore, it is the privilege of the people to know the theories

and

practices

of

hotel

management.

The

rough-sketch

line for picturing the hotel- a shelter that is secure where one can rest and relax mind and body. The basic trick in hotel-man ship is to provide facilities for these basic needs in the best possible called

manner a

city

providing

guest

at

a

reasonable

within with

a

city,

profit. a

The

hotel

self-contained

has

been

community

all the services expected in their

own

homes and communities. While

restaurant

business

is

a

commercial

enterprise

committed to sale of food for profit. It is an establishment

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where food is regularly served outside the home.( C. Carino, R. De Vera,2009). According to Wikipedia.com It is an establishment that prepares and serves food, drink and dessert to customers in return

for

premises,

money. but

Meals are

many

generally

restaurants

also

served

and

eaten

on

offer take-out and food

delivery services. Restaurants vary greatly in appearance and offerings,

including

a

wide

variety

of

the

main

chef's cuisines and service models. Cabanatuan City, just like any other big developing city in the Philippines, has become a restaurant

industry

part of the growing hotel and

in the country. Because of the rapidly

increasing population, particularly travelers’ population, the city manifests its needs of industries like hospitality industry. It

is

researcher

because got

of

the

interested

foregoing in

circumstances

undertaking

a

study

that

the

about

the

professional ethics of the hotel and restaurant industry in the city. He is also get interested to know if there is some kind of relationship

between

patronage.

Conceptual Framework

the

professional

ethics

and

industry

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The concept of professionalism cannot be easily separated from

the

study

of

ethics.

The

term

'ethics',

which

means

character, is derived from the Greek word 'ethos'. In its basic dimension, 'taking

the

the

study

correct

of

professionalism

is

concerned

with

action' in a situation. This stance

has

roots in Immanuel Kant's categorical imperative, which implies that an individual's actions should be based, not on rightness or

wrongness,

but

on

'good

will'.

At

an

optimum

outcome,

behaving in a professional manner involves acting in a normative manner

that

result

in

a

positive

service

occurrence.

Professionalism in the Hospitality industry is highly sought

after

travel

by

agencies,

transportation,

service

providers

tour

companies,

entertainment

and

in

lodging

airlines,

attractions,

accommodation, food as

service,

well

as

in

education and Hospitality-related associations. The very nature of

the

industry

requires

that

an

individual,

immediate

work

group and organization act in a socially responsible manner. Given this view, the desire to act in a professional manner has become

a

However,

primary

mandate

professionalism

for

is

not

hospitality easily

service

defined.

providers.

Clearly,

the

degree of professionalism within an occupation is rooted in the values and norms that individuals bring into an occupation, are

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exerted

by

individuals

within

the

context

of

the

immediate

workplace, and are developed from societal values, proscriptions and

prescriptions.

Some researchers have attempted to define professionalism by determining the factors that when taken collectively are seen as indicators of accepted behavior. These factors encompass a code

of

ethics,

presence

of

formal

and

informal

workplace

sanctions, reaction to community sanctions, presence of a reward system that reinforces ethical behavior, an educational degree or

specialized

training

within

an

appropriate

discipline,

dedication to the highest level of customer service possible, behaving

in

a

socially

responsible

manner

within

a

public

service setting, a high degree of prestige and a high degree of competence within the field. In essence, these factors have been shown

by

advance

research an

conducted

individual

in

from an

the

1970s

occupation

to

to

the a

1990s

to

professional

standing. Overall, the cumulative combination of these factors has advanced the image of the individual working in the tourism industry.

The

net

result

is

that

the

individual

and

the

profession as a whole are viewed as credible by the consuming public.

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Statement of the Problem This study support to discover the Specifically, this study sought answers to the following questions: 1. How

important

Professional

ethics

in

the

organization

especial in the restaurant and hotel? 2. What impact it have on the business and customers? 3. How

does

the

profile

of

the

respondents

affect

their

professionalism? 3.1

age

3.2

gender

3.3

civil status

4. What is the possible solution encountered in the current

organizational relationship? Significance of the Study This study may be useful not only to the hotel owners but also

to

several

people

and

groups

who

may

be

interested

knowing how to manage the people who worked in the industry.

in

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Since this study aimed at discovering professional ethics of the people working in the hotel or what we called hoteliers, in the city, some insights into how the industry is run may be discover

for

the

use

of

interested

people

like

researchers,

students, prospective hotel operator and other people. This hotel

study

and

may

also be important to teachers who teach

restaurant

management,

and

to

those

who

aim

to

establish and operate hotel, it may be a source of information regarding acquire

hospitality knowledge

management,

as

to

actual

hence,

enabling

practices

compared

them to

to the

theories learned in school. This students

study who

may

wish

also

to

be

important

to

self-supporting

work and support their studies because

information will be gathered

from the findings could help them

find a suitable job in any of the hotels and restaurant which their qualifications may be suited. The

findings

from

this

organizational/administrative managers,

internal

and

study

know-how

night

managers,

employees of the hotel and restaurant. Scope and Delimitations

of

may

enrich

managers,

the

assistant

supervisors,

and

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This

study

is

limited

to

the

most

famous

hotel

and

restaurant located in Cabanatuan City namely: a. La Parilla b. De Luxe c. Greenland Leisure and Suites d. Village Inn e. Amada Hotel f. Microtel g. Rustica h. Vicenticos i. Maxx’s This study is focus on the six hotel and three restaurant in Cabanatuan City and limited to the condition and problems as well as solution seen by the managing staff of the mentioned hotels

and

restaurants.

Therefore

some

establishment can be a source of information. Hypothesis of the study The hypothesis about this study are:

costumers

of

this

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Definition of Terms For the purpose of clarification and better understanding of this study, the following terms are hereby defined: Hotel- is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation Restaurant-prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises,

but

many

restaurants

also

offer

take-out

and

food

delivery services. Restaurants vary greatly in appearance and offerings, including a wide variety of the main chef's cuisines and service models. Management- Authorities agree that management is a distinct type

of

work

functions, managing.

and

broadly In

this

that

all

speaking, study,

resources

of

organizing to

accomplish

and

management

regardless

management

management of people and not of process

true

is

of

perform

what

same

they

conceptualized

as

are a)

things b) decision-making c) a

employing

pre-determined

d)

one

that

objectives

includes from

the

initial letter of management functions as planning, organizing, staffing, directing, coordinating, reporting and budgeting.

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Ethics- as used in this study it is a complex of moral precepts held or rules of conduct followed by an individual Hospitality Industry-The hospitality industry is one that is

primarily

focused

on

customer

satisfaction.

For

the

most

part, it is built on leisure or is luxury-based, as opposed to meeting basic needs. Hotels and resorts, cruise lines, airlines and

other

various

forms

of

travel,

tourism,

special

event

planning, and restaurants all generally fall under the realm of the hospitality industry.

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Chapter II METHODS OF RESEARCH AND SOURCES OF DATA Methods of Research used The

investigator

uses

the

descriptive

methods

of

educational research. This involved fact-finding and study of existing phenomena and realities about hospitality industry in Cabanatuan

City.

As

described

in

mbaknol.com

Descriptive

research is used to obtain information concerning the current status of the phenomena to describe “what exists” with respect to variables or conditions in a situation. The methods involved range

from

the

correlation variables,

survey

study to

which

which

describes

the

status

quo,

the

investigates the relationship between

developmental

studies

which

seek

to

determine

changes over time. The because

descriptive it

rationale

is

for

method

designed the

is

to

said

study

descriptive

to

the

survey

be

present-oriented

present

is

the

status.

fact

that

The the

information provide for is in itself the answer to the research problem. For surveys, the research problem must be one for which the

need

information

does

not

exist,

but

the

situations

or

respondents do exist. Instrument for Data Gathering The questionnaire is the principal instrument use in data gathering,

however

interview,

on-the-site

visits,

and

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observation,

supplement

the

principal

instrument

as

well

as

for

the

respondents,

the

validate the answers given. The purpose

questionnaire of

researcher

getting sought

is

the to

devised need

help

by

data

of

the

for

his

researcher

the

adviser

on

improving

the

construction of the instrument. Instrument is also undertaken in order to cross-check the answers

given

to

the

questionnaire

and

to

gather

additional

data. The researcher will interview all the managing staff of the hotels and restaurant to be study, the researcher will also ask the respondents about the code of ethics of the Hospitality Industry imposed by the Department of Tourism. Likewise, direct observation researcher

and is

on-the-spot visiting

for

visits the

will

conduct

respondents

to

while

the

answer

the

questionnaire. This is undertaken in order to reinforce whatever information the respondents will give in the questionnaire and to get the added data.