BUSINESS ETHICS, CORPORATE GOVERNANCE,SOCIAL RESPONSIBILITY IN THE HOSPITALITY INDUSTRY-ITC AS A MODEL

BY PROF.TREVOR DEVAS

INTRODUCTION
ETHICS FROM GREEK WORD ETHOS MEANING CHARACTER,NORMS, IDEALS IN A GROUP.
THE 3Cs OF BUSINESS ETHICS AS UNDER:

1. COMPLIANCE OR RULES OF THE INDUSTRY. 2. CONTRIBUTION TOWARDS SOCIETY. 3. CONSEQUENCES OF BUSINESS TRAGEDY

INTRODUCTION
BUSINESS ETHICS STARTED IN THE USA NOT TO VIOLATE THE ENVIRONMENTAL LAWS OF THE USA.
CORPORATE GOVERNANCE STARTED IN THE UK FOR TRANSPARENCY IN ALL ASPECTS OF BUSINESS.

CORPORATE SOCIAL RESPONSIBILITY STARTED IN THE USA TO PASS THE ANTI-TRUST LAW AGAINST THE MONOPOLIES& RESTRICTIVE TRADE ACT.

CORPORATE GOVERNANCE
ITC DEFINES CORPORATE GOVERNANCE AS A SYSTEMATIC PROCESS BY WHICH COMPANIES ARE DIRECTED AND CONTROLLED. TWO CORE PRINCIPLES: 1. MANAGEMENT MUST HAVE EXECUTIVE FREEDOM TO DRIVE THE COMPANY FORWARD WITHOUT UNDUE RESTRAINTS. 2. THIS FREEDOM OF MANAGEMENT SHOULD BE EXERCISED WITH EFFECTIVE ACOUNTABILITY.

CORPORATE GOVERNANCE
WHAT ITC IS DOING? ITC DIVIDED DECISION MAKING AT 3 LEVELS. 1. BOARD OF DIRECTORS FOR SHAREHOLDERS. 2. RESPONSIBILITY OF THE BOARD ON THE RECOMENDATIONS OF SUBCOMITEES. 3. STRATEGIC MANAGEMENT BY DIRECTORS FOR REVIEWING STRATEGIC PLANS.

CORPORATE GOVERNANCE
THROUGH THIS 3-TIERED INTERLINKED GOVERNANCE PROCESS A BALANCE IS CREATED FOR EXECUTIVE FREEDOM, NEED FOR SUPERVISION AND CONTROL.EACH DIVISION IS SEPARATE PROFIT CENTRE.
THE ITC CHAIRMAN SETS A PERSONAL EXAMPLE SO GOVERNANCE BECOMES A CULTURE AT ITC.

CORPORATE SOCIAL RESPONSIBILITY

WHAT ITC IS DOING? ENVIRONMENTAL
1. ITC IS CARBON POSITIVE 3 YEARS IN A ROW. 2. WATER POSITIVE 6 YEARS IN A ROW. 3. 100% SOLID WASTE RECYCLING

CORPORATE SOCIAL RESPONSIBILITY

LETS PUT INDIA FIRST THE ITC WAY. JOIN HANDS WITH UNDERPRIVELIGED MANY HANDICAPPED ARE EMPLOYED BY ITC.
CREATING LIVELIHOODS FOR OVER 5 MILLION. ALL OVER INDIA IN ITS VARIOUS DIVISIONS.

BUSINESS ETHICS IN THE HOSPITALITY INDUSTRY

LEGAL PROVISIONS FOR THE INDUSTRY 1.THE CONSUMER PROTECTION ACT, 1986 CUSTOMER HAS THE RIGHT TO COMPLAIN AGAINST ANY DEFECT IN QUALITY OF FOOD AND SERVICE WITH SEVERE PENALITIES. 2.PREVENTION OF FOOD ADULTERATION ACT,1954 ALL HOTELS SHOULD PROVIDE UN-ADULTERATED QUALITY FOOD. ALL FOOD COOKED ON ONE DAY SHOULD BE CONSUMED AND DISPOSED THE SAME DAY.

CONCLUSION
THE HOTEL INDUSTRY SHOULD BE MORE ETHICAL AND SOCIALY RESPONSIBLE. THE LEFT OVER FOOD SHOULD BE GIVEN TO CHARITABLE INSTITUTIONS AND THE HUNGRY LIKE WHAT IS BEING DONE IN THE US. IN THE US. THERE IS POVERTY BUT NO ONE GOES TO BED HUNGRY. IN INDIA, PEOPLE ARE STILL HUNGRY AND YOU IN THE HOTEL INDUSTRY SHOULD STRIVE TO REMOVE HUNGER IN THE CITY THAT YOU OPERATE IN IN INDIA.

THANK YOU