Module # 2Business Ethics and Social Responsibility; The Hospitality and Tourism Industry Context

We will explore the nexuses between strategic management and business ethics/social responsibility. First, it defines business ethics and its impacts on the H&T industry. Next, discussion focuses on the primary reasons for unethical behaviors and how businesses can and should institute ethical considerations into behavior and decision-making processes. The definition of corporate social responsibility (CSR) and highlights its importance for H&T businesses is reviewed. The conclusion then delves deeper into certain dimensions of CSR and its reporting.
Explores an in-depth perspective of the role of the environment and its impact on H&T firms. The external and internal environments are defined and a description of the role of the external environment and its impact on the business is elaborated on from a strategy formulation perspective.
The environment is characterized through a classification scheme and define its categories and their impact on the firm from macro and micro perspectives. Specifically, both the general and task environments and their subcategories are described to differentiate their effects on the firm. Porter (1979; 1980) discussed the forces that exist in the firm’s task environment using the five forces model, which provides a comprehensive view of how these forces impact the firm. This chapter examines the five forces model and its implications from an H&T industry perspective. Also, a description of strategic groups and their relevance to the hospitality sector, followed by an overview of the external environment from an international perspective is described.

Objectives

By the end of this Module, you should be able to:

Define and discuss responsibilities of businesses.
Define business ethics and corporate social responsibility (CSR).
Discuss the importance of business ethics and corporate social responsibility in the hospitality and tourism (H&T) context.
Evaluate how business ethics and CSR can influence the application of strategic management in H&T organizations.
Offer suggestions for H&T organizations in relation to business ethics and corporate social responsibility.
Define and explain the role of the external environment in the context of the hospitality and tourism businesses.
Explain strategic analysis for hospitality and tourism organizations.
Classify the environment into specific categories.
Identify and describe the characteristics of a sustainable firm.
Define and analyze the firm’s general environment.
Define and analyze the firm's task environment.
Assess industry-related competitive factors and structures.
Discuss challenges in analyzing the general macro and the task environments.

Readings

Chapter 3 & 4 in Okumus, Altinay, Chathoth and Koseoglu (2020).
Case Study Two: Sea World Parks and Entertainment
Review: 2018 National Defense Strategy Summary

Lectures

Business Ethics & Social Responsibility (9:22)

Lecture slides:3 Business Ethics and Social responsibility.pdf

Hospitality & tourism Context Lecture (15:08)

Lecture slides:4 The Hospitality and Tourism Context.pdf

Activities

Watch Video: Porters 5 forces Explained by B2U, March 10, 2019 16.38 minutes
https://www.youtube.com/watch?v=Dfp23xSqpdk&t=95s
Watch PESTEL Analysis Explained B2U, May 22, 2018 9.48 minuteshttps://www.youtube.com/watch?v=bYn4CyL3r5w&t=4

Assignments