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Doing the Right Thing
            When No One is Looking




2/28/2012         Destinations Showcase ~ Wash DC   1
“Doing the right thing when
          no one is looking”

                Decency
               Integrity
                 Honor
                 Belief
               Moral Code
2/28/2012    Destinations Showcase ~ Wash DC   2
Ethics
     That branch of philosophy dealing with

• Values relating to human conduct
• Rightness and wrongness of certain
  actions
• Goodness and badness of the motives
  and ends of such actions.
2/28/2012       Destinations Showcase ~ Wash DC   3
Ethical Codes
            . . . just in case . . .

• To assist in making decisions
  determining the difference between
  'right' and 'wrong„

• To apply this understanding to decisions
2/28/2012      Destinations Showcase ~ Wash DC   4
Morals vs. Ethics

                   Morals
   Define personal character

   Things you learned at home about
   right and wrong ~ good and bad



2/28/2012      Destinations Showcase ~ Wash DC   5
Morals vs. Ethics
                         Ethics
Stress a social system in which those
 morals are applied

            • Company Ethics
            • Family Ethics
            • Professional Ethics
            • Social Ethics
2/28/2012             Destinations Showcase ~ Wash DC   6
Conflict Between Morals and
                  Ethics
• Legal Ethics                      • Abortion

• Medical Ethics                    • Euthanasia
                                    • Stem Cell Research

• Workplace Ethics                  • Conflicts of interest

• Social Ethics                     • Boomers vs “Y”
2/28/2012          Destinations Showcase ~ Wash DC         7
Employee Code of Conduct

            Effectiveness Dependent On

•              Management Support
•              Sanctions
•              Rewards

2/28/2012          Destinations Showcase ~ Wash DC   8
Conflict of Interest

   Using professional position for personal
                      gain

        Conflict of interest in the Federal
        government is a violation of criminal
                       statute


2/28/2012         Destinations Showcase ~ Wash DC   9
How to Avoid Conflicts of
                   Interest

            Recusal or disqualification

            Remain impartial in performance of
            official duties

            Obtain waiver by authorized official
            when conflict of interest is not
            substantial
2/28/2012             Destinations Showcase ~ Wash DC   10
Vendor/Supplier Relationships


 Based on good relationships and previous
  business, a venue or supplier recognizes
        the value of your business


            Don‟t abuse or jeopardize this
                     relationship!
2/28/2012           Destinations Showcase ~ Wash DC   11
Current Economic Situation

• Planners trying to “get a lot for a little”

• Suppliers offer incentives




• Where is the line and who‟s drawing it?

2/28/2012      Destinations Showcase ~ Wash DC   12
Let‟s Examine Some
                 Scenarios



            What would you do if
            no one was looking?
2/28/2012       Destinations Showcase ~ Wash DC   13
Scenario 1
 Based on a good working relationship
           with a local hotel


     You ask your sales person for the
      hotel to donate a ham and potato
       salad for your office Christmas
                         party

2/28/2012      Destinations Showcase ~ Wash DC   14
Scenario 1
Planner – Is this taking advantage of
  a professional relationship?
  ? Conflict of Interest?

Supplier – Have you ever been in a
 situation like this? How would you
 handle this request?
2/28/2012    Destinations Showcase ~ Wash DC   15
Scenario 2
                 Planner
• Negotiating with 3 venues for a training
  conference

• Venues 1 and 2 are comparable in rates,
  amenities, and other areas important to
  the organization and conference

• Venue 3 does not have the dates
  available
2/28/2012     Destinations Showcase ~ Wash DC   16
Scenario 2
                   Venue #1
•   Low season for venue
•   Bidding on lucrative piece of business
•   Represents repeat business with client
•   Understands they are seriously
    competing with two other venues
•   Offers planner a persuasive incentive
     • A personal weekend at a nearby boutique
       hotel
2/28/2012         Destinations Showcase ~ Wash DC   17
Scenario 2


      If Planner Selects Venue # 1

                Who will know?


            No one is looking. . . .
2/28/2012          Destinations Showcase ~ Wash DC   18
Scenario 3

Based on business relationships with a
 local hotel chain, you ask your hotel
 contact to secure a comp hotel room for
 you in another city . . .

The hotel salesperson suspects this is a
 personal trip and not a site visit


2/28/2012     Destinations Showcase ~ Wash DC   19
Scenario 3
             Planner
Does this present a conflict of
 interest?

            Supplier
How do you handle this request?

2/28/2012   Destinations Showcase ~ Wash DC   20
Scenario 4
           One of your vendors sells
      T-shirts. You have purchased these
       shirts and other clothing items for
                official purposes.


   Is it appropriate to ask this vendor for
    personalized t-shirts at no charge for
           your son‟s baseball team?

2/28/2012        Destinations Showcase ~ Wash DC   21
Scenario 4


• Is this a conflict of interest?



• How can this be handled
   appropriately?
2/28/2012    Destinations Showcase ~ Wash DC   22
How Clean Are Your SOX?
               Sarbanes Oxley Bill ~ 2002

• Enacted after failure of Enron and
  Worldcom
• To protect employees and public from
  effects of fraudulent accounting
  principles
• To eliminate Auditor Conflicts of
  Interest
2/28/2012
            • Auditor = Consultant = Conflict of Interest
                         Destinations Showcase ~ Wash DC    23
Effect of SOX Act on Hotel
               Negotiations

• Meeting Room Rental

• Food and Beverage

• Other contract line items


2/28/2012       Destinations Showcase ~ Wash DC   24
Washington Post Test
Are your event
and your
professional
behavior up the
scrutiny of the
media? Do you
want your event
and actions
publicized on the
front page of a
major newspaper?
                                                   25
2/28/2012        Destinations Showcase ~ Wash DC
Perceptions

• Perceptions are reality

• If you are perceived as guilty . . .

• . . . You will be condemned as guilty



2/28/2012       Destinations Showcase ~ Wash DC   26
Muffingate
• How did this happen?

• How could this have been avoided?

• What is the outcome for the hospitality
  industry?

            More Regulations?
2/28/2012     Destinations Showcase ~ Wash DC   27
Wandering Off the Beaten
                 Path
• Hotel Rewards

• FAM Trips

• Gifts

• Other Incentives
2/28/2012     Destinations Showcase ~ Wash DC   28
Scenario 5

   As a planner you are familiar with and
   comply with your company‟s Ethics Policies
   and Code of Contact


   Your supervisor asks you to “negotiate”
   inappropriate upgrades, hotel awards,
   motivational trips, etc. for her/him



2/28/2012        Destinations Showcase ~ Wash DC   29
???
             What are you going to do?

               Whom do you consult?

            Are you jeopardizing your job?

            Is this a conflict of interest?

2/28/2012           Destinations Showcase ~ Wash DC   30
Scenario 6
            A supplier asks the planner . . .

      “It would be great if I could get the
     papers approved and signed before the
      end of the month . . . If you can make
          that happen, I‟ll make sure you
     personally receive 50,000 hotel points.”


2/28/2012            Destinations Showcase ~ Wash DC   31
Who Benefits?
• Are you going to give your organization
  the 50,000 planner points?

• Will the supplier personally benefit if
  you sign the papers by a certain date?

• Are there other things to consider?
2/28/2012      Destinations Showcase ~ Wash DC   32
Scenario 7

            Planner to Supplier . . .

“Do you think if I select the Griswold
Hotel to host this event, I could have
that Weekend at Bernie‟s that you
mentioned earlier? I‟m about to make a
decision between your beautiful hotel and
The Giddyup Get-Away.
2/28/2012         Destinations Showcase ~ Wash DC   33
What‟s Wrong with This
                  Scenario?

•   Giving proprietary information
•   Revealing competition
•   Asking for compensation
•   Making a decision that‟s good for the
    planner instead of good for the
    organization

2/28/2012         Destinations Showcase ~ Wash DC   34
Getting Back on Track
• Be familiar with your organization‟s
  ethics policy and code of conduct
• Disclose offers of gifts and incentives
• Don‟t be afraid to decline an offer of
  gifts or trips
• Educate your suppliers to avoid
  embarrassing situations
• Keep business/business
2/28/2012         Destinations Showcase ~ Wash DC   35
Recap
• It is a conflict of interest to use your
  professional job for personal gain

• Do not put yourself or your vendors in
  this situation

• Do not risk your job or reputation or
  the reputation of your company
2/28/2012      Destinations Showcase ~ Wash DC   36
Recap
• Always negotiate fairly with the best
  interest of the company and meeting in
  mind

• Always make selections based on the best
  value for the company/meeting NOT
  „what‟s in this for me?‟

• Be the planner that suppliers welcome back
  to their properties

2/28/2012      Destinations Showcase ~ Wash DC   37
MPI Principles of Professionalism


• Maintain Professional Integrity

• Utilize Professional Business Practices

• Respect Diversity


2/28/2012     Destinations Showcase ~ Wash DC   38
Conclusion
                  No one is looking . . .

                No one will ever know . . .

                 Just this one time . . .

            Respect yourself and appropriate
                   behavior will follow.
2/28/2012             Destinations Showcase ~ Wash DC   39
Do the Right Thing




2/28/2012       Destinations Showcase ~ Wash DC   40

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Doing the Right Thing When Nobody is Looking

  • 1. Doing the Right Thing When No One is Looking 2/28/2012 Destinations Showcase ~ Wash DC 1
  • 2. “Doing the right thing when no one is looking” Decency Integrity Honor Belief Moral Code 2/28/2012 Destinations Showcase ~ Wash DC 2
  • 3. Ethics That branch of philosophy dealing with • Values relating to human conduct • Rightness and wrongness of certain actions • Goodness and badness of the motives and ends of such actions. 2/28/2012 Destinations Showcase ~ Wash DC 3
  • 4. Ethical Codes . . . just in case . . . • To assist in making decisions determining the difference between 'right' and 'wrong„ • To apply this understanding to decisions 2/28/2012 Destinations Showcase ~ Wash DC 4
  • 5. Morals vs. Ethics Morals Define personal character Things you learned at home about right and wrong ~ good and bad 2/28/2012 Destinations Showcase ~ Wash DC 5
  • 6. Morals vs. Ethics Ethics Stress a social system in which those morals are applied • Company Ethics • Family Ethics • Professional Ethics • Social Ethics 2/28/2012 Destinations Showcase ~ Wash DC 6
  • 7. Conflict Between Morals and Ethics • Legal Ethics • Abortion • Medical Ethics • Euthanasia • Stem Cell Research • Workplace Ethics • Conflicts of interest • Social Ethics • Boomers vs “Y” 2/28/2012 Destinations Showcase ~ Wash DC 7
  • 8. Employee Code of Conduct Effectiveness Dependent On • Management Support • Sanctions • Rewards 2/28/2012 Destinations Showcase ~ Wash DC 8
  • 9. Conflict of Interest Using professional position for personal gain Conflict of interest in the Federal government is a violation of criminal statute 2/28/2012 Destinations Showcase ~ Wash DC 9
  • 10. How to Avoid Conflicts of Interest Recusal or disqualification Remain impartial in performance of official duties Obtain waiver by authorized official when conflict of interest is not substantial 2/28/2012 Destinations Showcase ~ Wash DC 10
  • 11. Vendor/Supplier Relationships Based on good relationships and previous business, a venue or supplier recognizes the value of your business Don‟t abuse or jeopardize this relationship! 2/28/2012 Destinations Showcase ~ Wash DC 11
  • 12. Current Economic Situation • Planners trying to “get a lot for a little” • Suppliers offer incentives • Where is the line and who‟s drawing it? 2/28/2012 Destinations Showcase ~ Wash DC 12
  • 13. Let‟s Examine Some Scenarios What would you do if no one was looking? 2/28/2012 Destinations Showcase ~ Wash DC 13
  • 14. Scenario 1 Based on a good working relationship with a local hotel You ask your sales person for the hotel to donate a ham and potato salad for your office Christmas party 2/28/2012 Destinations Showcase ~ Wash DC 14
  • 15. Scenario 1 Planner – Is this taking advantage of a professional relationship? ? Conflict of Interest? Supplier – Have you ever been in a situation like this? How would you handle this request? 2/28/2012 Destinations Showcase ~ Wash DC 15
  • 16. Scenario 2 Planner • Negotiating with 3 venues for a training conference • Venues 1 and 2 are comparable in rates, amenities, and other areas important to the organization and conference • Venue 3 does not have the dates available 2/28/2012 Destinations Showcase ~ Wash DC 16
  • 17. Scenario 2 Venue #1 • Low season for venue • Bidding on lucrative piece of business • Represents repeat business with client • Understands they are seriously competing with two other venues • Offers planner a persuasive incentive • A personal weekend at a nearby boutique hotel 2/28/2012 Destinations Showcase ~ Wash DC 17
  • 18. Scenario 2 If Planner Selects Venue # 1 Who will know? No one is looking. . . . 2/28/2012 Destinations Showcase ~ Wash DC 18
  • 19. Scenario 3 Based on business relationships with a local hotel chain, you ask your hotel contact to secure a comp hotel room for you in another city . . . The hotel salesperson suspects this is a personal trip and not a site visit 2/28/2012 Destinations Showcase ~ Wash DC 19
  • 20. Scenario 3 Planner Does this present a conflict of interest? Supplier How do you handle this request? 2/28/2012 Destinations Showcase ~ Wash DC 20
  • 21. Scenario 4 One of your vendors sells T-shirts. You have purchased these shirts and other clothing items for official purposes. Is it appropriate to ask this vendor for personalized t-shirts at no charge for your son‟s baseball team? 2/28/2012 Destinations Showcase ~ Wash DC 21
  • 22. Scenario 4 • Is this a conflict of interest? • How can this be handled appropriately? 2/28/2012 Destinations Showcase ~ Wash DC 22
  • 23. How Clean Are Your SOX? Sarbanes Oxley Bill ~ 2002 • Enacted after failure of Enron and Worldcom • To protect employees and public from effects of fraudulent accounting principles • To eliminate Auditor Conflicts of Interest 2/28/2012 • Auditor = Consultant = Conflict of Interest Destinations Showcase ~ Wash DC 23
  • 24. Effect of SOX Act on Hotel Negotiations • Meeting Room Rental • Food and Beverage • Other contract line items 2/28/2012 Destinations Showcase ~ Wash DC 24
  • 25. Washington Post Test Are your event and your professional behavior up the scrutiny of the media? Do you want your event and actions publicized on the front page of a major newspaper? 25 2/28/2012 Destinations Showcase ~ Wash DC
  • 26. Perceptions • Perceptions are reality • If you are perceived as guilty . . . • . . . You will be condemned as guilty 2/28/2012 Destinations Showcase ~ Wash DC 26
  • 27. Muffingate • How did this happen? • How could this have been avoided? • What is the outcome for the hospitality industry? More Regulations? 2/28/2012 Destinations Showcase ~ Wash DC 27
  • 28. Wandering Off the Beaten Path • Hotel Rewards • FAM Trips • Gifts • Other Incentives 2/28/2012 Destinations Showcase ~ Wash DC 28
  • 29. Scenario 5 As a planner you are familiar with and comply with your company‟s Ethics Policies and Code of Contact Your supervisor asks you to “negotiate” inappropriate upgrades, hotel awards, motivational trips, etc. for her/him 2/28/2012 Destinations Showcase ~ Wash DC 29
  • 30. ??? What are you going to do? Whom do you consult? Are you jeopardizing your job? Is this a conflict of interest? 2/28/2012 Destinations Showcase ~ Wash DC 30
  • 31. Scenario 6 A supplier asks the planner . . . “It would be great if I could get the papers approved and signed before the end of the month . . . If you can make that happen, I‟ll make sure you personally receive 50,000 hotel points.” 2/28/2012 Destinations Showcase ~ Wash DC 31
  • 32. Who Benefits? • Are you going to give your organization the 50,000 planner points? • Will the supplier personally benefit if you sign the papers by a certain date? • Are there other things to consider? 2/28/2012 Destinations Showcase ~ Wash DC 32
  • 33. Scenario 7 Planner to Supplier . . . “Do you think if I select the Griswold Hotel to host this event, I could have that Weekend at Bernie‟s that you mentioned earlier? I‟m about to make a decision between your beautiful hotel and The Giddyup Get-Away. 2/28/2012 Destinations Showcase ~ Wash DC 33
  • 34. What‟s Wrong with This Scenario? • Giving proprietary information • Revealing competition • Asking for compensation • Making a decision that‟s good for the planner instead of good for the organization 2/28/2012 Destinations Showcase ~ Wash DC 34
  • 35. Getting Back on Track • Be familiar with your organization‟s ethics policy and code of conduct • Disclose offers of gifts and incentives • Don‟t be afraid to decline an offer of gifts or trips • Educate your suppliers to avoid embarrassing situations • Keep business/business 2/28/2012 Destinations Showcase ~ Wash DC 35
  • 36. Recap • It is a conflict of interest to use your professional job for personal gain • Do not put yourself or your vendors in this situation • Do not risk your job or reputation or the reputation of your company 2/28/2012 Destinations Showcase ~ Wash DC 36
  • 37. Recap • Always negotiate fairly with the best interest of the company and meeting in mind • Always make selections based on the best value for the company/meeting NOT „what‟s in this for me?‟ • Be the planner that suppliers welcome back to their properties 2/28/2012 Destinations Showcase ~ Wash DC 37
  • 38. MPI Principles of Professionalism • Maintain Professional Integrity • Utilize Professional Business Practices • Respect Diversity 2/28/2012 Destinations Showcase ~ Wash DC 38
  • 39. Conclusion No one is looking . . . No one will ever know . . . Just this one time . . . Respect yourself and appropriate behavior will follow. 2/28/2012 Destinations Showcase ~ Wash DC 39
  • 40. Do the Right Thing 2/28/2012 Destinations Showcase ~ Wash DC 40