Social Performance with regards to Business Ethics and Labor

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Social Performance with regards to Business Ethics and Labor

Marriott International


When companies strike an outstanding social performance the community tends to remember the significance of the companys management and operation Marriott International Incorporation is recognised as one of the top leading hospitality industry with over 6000 hotels in 120 countries worldwide Marriott 2017 Marriotts success comes from their core values where they believe people comes first and by providing excellent customer service it will keep the business consistent This essay will discuss the negative and positive aspect of Marriotts social performance and examine the impact of its performance upon society and particular stakeholders The involved stakeholders in this essay are hotel owners employees customers and suppliers This essay will also highlight Marriotts achievements for embracing diversity and its required improvement on forced unionisation for the workers This essay will conclude on evaluating Marriotts social performance as a whole with regards if it successfully fulfilled societys expectation and on how the company operates when confronted with labor issues

A labor case against Marriott International

Many hospitality industries are currently facing challenges to maintain its position in this competitive market A labor issue that occurred in 2002 made Marriott faced an adverse effect for the companys development It broke a promise of its vision statement where which emphasise its employees should be provided an opportunity to work and feel welcomed to Marriott Sorenson 2013 In 2001 a case disclosed that Marriott International wanted to secure two of its flagship hotels Marriott Marquis and Marriott Financial Centre in New York City union free whilst the lessknown Marriottmanaged properties were proposed to be an unionised workforce Randles 2013 Marriott formed this secret agreement with its hotel workers union in New York and was sued for over 500 million by a hotel owner Voris 2013

In early 2001 the former hotel owner Madison 92nd Street Associates LLC of Courtyard by Marriott Madison East Randles 2013 had a business interest that involves a management agreement with Marriott to manage Madisons hotels under the Courtyard Marriott name Meyer 2015 However at that same period of time Madison was uninformed about the ongoing secret agreement Marriott had with its New York hotel workers union When Courtyard was opened for business in 2002 Courtyard hotel was classified as a union workforce According to the lawsuit Madison had assumptions with regards to the management agreement where Madison thought Courtyard would have been declared as a nonunionised workforce due to the fact that Marriott was known as a unionfree workforce company Longstrerth 2013

As a result of Courtyard employees unionsised the post effects were reported that there was an increase in labor and operating costs Randles 2013 Labor costs are the biggest expense for hotel managers Hence Courtyard started facing bad financial performance annually as there was an increase in 2 million on the companys operating costs Longstrerth 2013 Courtyards economic development was unstable as the hotel started losing big amounts of revenues and profits By 2011 Courtyards managers faced a bankruptcy phase and were desperate for bankruptcy protection Voris 2014 With the labor unionisation agreement it led to a drastic impact on Courtyards stakeholders The workers were obliged to union work rules and policies where they faced any form of heavy labor while being subjected to poor working environment Randles 2013 Certain union policies had effects on the satisfaction of its workers and produced low work quality According to the lawsuit workers in New York properties Randles 2013 experienced the benefit as a unionfree workforce and gained competitive advantage The unequal treatment of its stakeholders in different hotel properties showed a misstep to reflect its social responsibility which was ensuring its employees a

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