chapter 24 legal and ethical considerations permission granted to reproduce for educational use...

Chapter24Legal and Ethical Considerations

Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc.

Objectives

• List the seven categories of laws that affect hospitality businesses.

• Describe two ways that government regulations are enforced.

• List the four areas in which liability issues arise.

• List the four common law rights of guests.

continued


Objectives

• Evaluate seven questions that can help you make ethical decisions.

• Judge a good work ethic.• Determine guidelines that will help you

have a good work ethic.


Laws and Regulations

• Laws are society’s rules for proper behavior• A regulation is a specific rule that is

developed based on a law• Some laws include establishment of a

government agency• Regulations are often organized into a code• An ordinance is a regulation made by a local

government continued


Laws and Regulations

• Laws affecting hospitality include– hiring and employment laws– worker safety laws– food safety laws– building and zoning laws– environmental protection laws– smoking ordinances– liquor laws


Hiring and Employment Laws

• Equal opportunity laws require employers to treat everyone equally during the hiring process

• Workers’ rights laws protect employees• Tax laws require the payment of income tax,

Social Security tax, and unemployment tax, which are collected through payroll deductions


Equal Opportunity

• Major equal opportunity laws:– Civil Rights Act of 1964 and 1991– Age Discrimination Employment Act of 1967– Older Workers Benefit Protection Act of 1990– Immigration Reform and Control Act of 1986– Americans with Disabilities Act of 1990


Workers’ Rights

• Major workers’ rights laws:– Fair Labor Standards Act of 1938– workers’ compensation laws

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Taxes

• Major employment tax laws:– Internal Revenue Code (for federal income tax;

some states and municipalities also collect income tax)

– Federal Insurance Contributions Act (Social Security)

– Federal Unemployment Tax Act


Worker Safety Laws

• The main federal law is the Occupational Safety and Health Act

• Many states have passed additional occupational safety and health laws


Food Safety Laws

• The main federal law is the Food, Drug, and Cosmetic Act

• The Food and Drug Administration (FDA) enforces most of the laws related to food, drugs, and cosmetics

• The United States Department of Agriculture (USDA) monitors the safety of meat, poultry, and some egg products


Zoning and Building Laws

• Zoning is the process of designating specific geographic areas for specific uses

• Zoning laws list geographic areas and state the permitted uses for each area

• Typically, areas are zoned for natural, residential, commercial, or industrial use

• Building codes are rules and regulations designed to make buildings safe


Environmental Protection

• The Environmental Protection Agency (EPA) is the main federal agency that makes and enforces environmental regulations

• The EPA enforces the National Environmental Policy Act of 1969 and other laws that protect human health and safeguard the environment


Smoking Ordinances

• Smoking is usually regulated by ordinances (local regulations)

• The ordinances limit the places where smoking is allowed

• Many smoking regulations affect hospitality businesses


Liquor Laws

• Every state has a liquor authority or commission that regulates the sale and consumption of alcohol

• The National Minimum Drinking Age Act of 1984 established a federal minimum age of 21 for buying and possessing alcohol


Enforcing Government Regulations

• Local, state, and federal agencies and departments enforce regulations through– licenses and permits—documents that give the

holder permission to do something, such as sell alcohol

– inspections—formal visits to make sure regulations are being followed


Liability Issues

• Common law, which is based on custom and precedent, allows guests certain rights such as– decent and humane treatment– no abusive or insulting treatment by employees– total use of a room– the right to be protected from personal injury

continued


Liability Issues

• Liability means responsibility to pay for damages or loss

• There are three areas in which liability issues arise: – guest injuries– property damage or theft– guest privacy


Ethical Issues

• Ethics consist of principles of conduct that govern the behavior of an individual or group

• Ethical behavior is doing the right thing even when under pressure to do the wrong thing

• Unethical behavior is doing the wrong thing


Guidelines for Ethical Behavior

• In business, there are eight qualities that form the basis for ethical behavior:– Honesty– Integrity– Trustworthiness– Loyalty– Fairness

– Concern and respect for others

– Commitment to excellence

– Accountability


Code of Ethics

• A code of ethics is a written list of rules for ethical behavior

• Most businesses focus their code of ethics on customers and employees


Ethical Decision Making

• Ask yourself these seven questions:– Is it legal?– Does it hurt anyone?– Is it fair?– Am I being honest?– Can I live with myself?– Would I publicize my decision?– What if everyone did it?


Ethics in Hospitality

• Three reasons why the hospitality industry should be concerned with ethics:– Many unethical actions are also illegal– Most people want to act ethically– Teamwork demands integrity and honesty


Truth-in-Menu Laws

• Many states have laws that require accuracy in menus

• The FDA requires that any health claims on menus meet FDA standards


Sexual Harassment

• Sexual harassment is unwelcome behavior of a sexual nature that creates an intimidating, hostile, or offensive work environment

• It is illegal and unethical• Most businesses have written policies that

specify what behavior is unacceptable• Any act of sexual harassment should be reported

to the manager, who is required to investigate


Discrimination

• Discrimination is showing prejudice in the treatment of a person because of his or her race, religion, age, national origin, or gender

• Such discrimination is unethical and illegal• Most businesses have policies that prohibit

discrimination


Technology Issues

• Unethical uses of technology include– using a guest’s credit card to make unauthorized

charges (also illegal)– using security cameras improperly– using a company’s computer system for

nonbusiness reasons


Work Ethic

• A good work ethic is an attitude that combines hard work, good performance, and dependable results

• Guidelines for a good work ethic:– Act in a professional manner– Keep your personal life private– Do not steal (including embezzlement)– Do not waste resources


• What is the difference between laws and regulations?– Laws are society’s rules for proper behavior.

Regulations are specific rules based on law.• Equal opportunity, workers’ rights, and

_____ laws affect hiring and employment.– tax

Chapter 24 Review

continued


• How are government regulations enforced? – through licenses, permits, and inspections

• Name three areas in which liability issues arise.– guest injuries– property damage or theft– guest privacy

Chapter 24 Review

continued


• Give three reasons hospitality businesses should be concerned with ethics.– Many unethical actions are also illegal. Most

people want to act ethically. Teamwork demands honesty and integrity.

• What is a good work ethic?– an attitude that combines hard work, good

performance, and dependable results

Chapter 24 Review

chapter 24 legal and ethical considerations permission granted to reproduce for educational use...

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