Case Study: Frank In The Tank – 2
Whether or not the pool actually needed to be drained is up to local health department
regulations. The pool, however, would have to be closed for either draining/refilling or
treatment. This means that pool employees, in this case Jorge and Nancy, would either
have to be reassigned or laid off till the pool was reopened. The inconvenience to guests
would also have to be addressed.
Although it is a human resources issue, what to do with the displaced employees is
worthy of discussion in this section. The pool closing was not the fault of employees who
may suffer hardship if they are idled. Which of the following ethical principles may be
violated by this situation?
Ethical Principles for Hospitality Managers
Honesty: Hospitality managers are honest and truthful. They do not mislead or deceive
others by misrepresentations.
Integrity: Hospitality managers demonstrate the courage of their convictions by doing
what they know is right even when there is pressure to do otherwise.
Trustworthiness: Hospitality managers are trustworthy and candid in supplying
information and in correcting misapprehensions of fact. They do not create
justifications for escaping their promises and commitments.
Loyalty: Hospitality managers demonstrate loyalty to their companies in devotion to
duty and loyalty to colleagues by friendship in adversity. They avoid conflicts of
interest; do not use or disclose confidential information; and should they accept
other employment, they respect the proprietary information of their former
employer.
Fairness: Hospitality managers are fair and equitable in all dealings; they do not abuse
power arbitrarily nor take undue advantage of another’s mistakes or difficulties.
They treat all individuals with equality, with tolerance for and acceptance of
diversity and with an open mind.
Concern and Respect for Others: Hospitality managers are concerned, respectful,
compassionate and kind. They are sensitive to the personal concerns of their
colleagues and live the “Golden Rule.” They respect the rights and interest of all
those who have a stake in their decisions.
Commitment to Excellence: Hospitality managers pursue excellence in performing
their duties and are willing to put more into their job than they can get out of it.
Leadership: Hospitality managers are conscious of the responsibility and opportunities
of their position of leadership. They realize that the best way to instill ethical
principles and ethical awareness in their organizations is by example. They walk
their talk!
Reputation and Morale: Hospitality managers seek to protect and build the company’s
reputation and the morale of its employees by engaging in conduct that builds
respect and by taking whatever actions are necessary to correct or prevent
inappropriate conduct of others.
Accountability: Hospitality managers are personally accountable for the ethical quality
of their decisions as well as those of their subordinates.
Every time we violate an ethical principle there will most likely be negative
consequences. What are some of the possible negative consequences by letting the
workers off without pay until the pool reopens? Enter the decision option and the
stakeholders on the following blank form. In this situation, Nancy didn’t seem to mind
being off work, but at some point it would probably start to hurt her financially. Jorge
said he said he could use a couple days off but that was due to his being very angry about
another situation involving Frank, the owner. We’ll look at that situation next. If John
keeps paying Nancy and Jorge, there will be a cost of course. But if he chooses not to
keep them on till the pool reopens, there will also be costs. What are they?
Analyze this decision option and enter the consequences and violated principles on the
following form. Check your work against the key at the end of the case.
Ethics Analysis Form
Decision Option:
Stakeholders
Principles
Consequences
KEY - Ethics Analysis Form
Decision Option: Lay off Nancy and Jorge without pay until pool reopens
Stakeholders
Principles
Consequences
Nancy & Jorge
 They might enjoy a couple days off,
but, if the layoff goes longer, they may
be hurt financially.
 They could feel unfairly penalized for
something they had no control over.
 They could become angry or resentful,
and their attitudes could change. They
could become less cooperative and
maybe look for other jobs.
 They could tell other employees they
were laid off till the pool reopens, all
because of Frank’s silly decree and
John’s refusal to stand up for what is
right.
Other
 If Nancy and Jorge were upset over
Employees
being laid off without pay, other
employees might also become upset,
thinking it was unfair and hurtful.
 Other employees might suspect it could

John, G.M.
(Decision
Maker)
Integrity
Trustworthiness
Loyalty
Fairness
Concern & Respect
for Others
Commitment to
Excellence
Leadership
Reputation &
Morale
Accountability




FOI

happen to them, which could lesson
their trust and loyalty for FOI.
They could tell family and friends and
this could negatively affect the
reputation of FOI as a good place to
work and/or stay.
The pool closing down would be costly
and saving Jorge and Nancy's salaries
might help a bit.
If Jorge and Nancy become unhappy
about being laid off, their attitudes
could change for the negative leading to
less cooperation and enthusiasm. They
could look for other jobs. This would
have a cost impact on the bar and
dining room managers who may each
have to hire/train a new employee.
John is accountable for the entire
operation. If his decision has negative
consequences to the various
stakeholders, he is ultimately
responsible.
He could lose the respect of the
managers who might be negatively
affected by John's decision.
If employees are dissatisfied, customer
service could decline and turnover
increase. Both could have a detrimental
effect on business.