Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
TEACHING NOTE:
THE CARLSON COMPANY AND PROTECTING CHILDREN
IN THE GLOBAL TOURISM INDUSTRY
1
This case illustrates the following themes and concepts discussed in the chapters listed:
Theme/Concept Chapter
Stakeholder theory; stakeholder analysis 1
Corporate social responsibility 3
NGOs/Activist 4
Methods of ethical reasoning; human rights 5
Global corporate citizenship; codes of conduct 6
Community relations 18
Public Relations/Media 19
Case Synopsis:
This case describes a dilemma facing Marilyn Carlson Nelson, CEO of the Carlson Company, a
leader in the international travel and hospitality industry. Carlson, which has adopted a global
code of conduct aimed at protecting children from sexual exploitation in the global tourist trade,
must decide whether or not to develop a potentially lucrative resort complex in Costa Rica, a
Central American nation known for child trafficking. Can the company move forward, while
honoring its commitments to the code of conduct and to global human rights?
Summary of Discussion Questions
1) Why did the Carlson Company sign the Code of Conduct for the Protection of
Children from Sexual Exploitation in Travel and Tourism? Do you agree with the
company’s decision, and why or why not?
2) What are the advantages and disadvantages to the Carlson Company of developing
the hotel complex in Costa Rica?
3) What stakeholders would be affected by a decision to develop the hotel complex in
Costa Rica, and how would they be affected? What are their interests and sources
of power in this situation?
4) Would developing the hotel complex in Costa Rica be ethical, or not? Why do you
think so?
5) If the Carlson Company decides to proceed with the hotel development, what steps
can it take to assure that the company remains in compliance with the code of
conduct it has signed?
Discussion Questions and Answers
1) Why did the Carlson Company sign the Code of Conduct for the Protection of
Children from Sexual Exploitation in Travel and Tourism? Do you agree with the
company’s decision, and why or why not?
2) What are the advantages and disadvantages to the Carlson Company of developing
the hotel complex in Costa Rica?
3) What stakeholders would be affected by a decision to develop the hotel complex in
Costa Rica, and how would they be affected? What are their interests and sources
of power in this situation?
The instructor may wish to develop a table on the board, showing the relevant market and
nonmarket stakeholders, their interests, and their sources of power, as follows:
Sample cells are filled in, to illustrate.
STAKEHOLDER
INTEREST
POWER
Carlson employees
Jobs; professional development
Authority to prohibit sex
trafficking in the hotel property
Carlson senior executives and
board of directors
To promote profitable
development; to meet public
commitments, e.g., to the Code
Authority to make decision to
develop the property
Victims of sex trafficking
To escape from trafficking;
economic and educational
opportunity.
Low power
Sex traffickers
To promote their business
interests
To go elsewhere
Sex tourists
To operate without legal
constraint
To go elsewhere
Ordinary tourists
To vacation without exposure
to sex trafficking
To go elsewhere
Travel agencies
To bring in travel business
To refer business to other hotels
Other hotels in region
To compete effectively
--
Code monitors
To assure compliance with the
Code
To report publicly on failures of
compliance; bad publicity
NGOs addressing trafficking
To reduce the incidence of sex
trafficking; to promote the Code
To report publicly on failures of
compliance; bad publicity
Local politicians
To enhance tax revenue from
the tourism industry; to
maintain a positive reputation
as a tourist destination
To provide permits
Local law enforcement
To enforce local laws
Legitimate legal authority
Republic of Costa Rica
To maintain a good reputation
as a tourist destination; to
enhance tax revenue; to
promote business development
Legitimate legal authority
The stakeholder analysis reveals that the board and senior executives are likely to have a strong
5
4) Would developing the hotel complex in Costa Rica be ethical, or not? Why do you
think so?
Instructor tip: This questions provides an opportunity to apply the four methods of
TEACHING TIP: VIRTUE ETHICS
The textbook defines virtue ethics as follows:
[Virtue ethics] focuses on character traits that a good person should possess, theorizing that
moral values will direct the person toward good behavior. Virtue ethics is based on a way of
being and on valuable characteristics rather than on rules for correct behavior…. [Most]
If Carlson develops the hotel complex and effectively enforces the Code there, its reputation as a
responsible and “virtuous” corporation will be enhanced. On the other hand, if the sexual
TEACHING TIP: UTILITARIANISM
The textbook defines utilitarianism as follows:
[Utilitarian reasoning] emphasizes utility, or the overall amount of good that can be produced
by an action or a decision… It is often referred to as cost–benefit analysis because it compares
6
TEACHING TIP: RIGHTS
The textbook defines rights as follows:
Human rights are another basis for making ethical judgments. A right means that a person or
group is entitled to something or is entitled to be treated in a certain way… The most basic
If Carlson develops the hotel complex and effectively enforces the Code there, no rights will be
violated. On the other hand, if the sexual exploitation of children occurs on the property, the
basic human rights of these children will have been badly violated.
TEACHING TIP: JUSTICE AND FAIRNESS
The textbook defines justice and fairness as follows:
Justice, or fairness, exists when benefits and burdens are distributed equitably and according to
some accepted rule. For society as a whole, social justice means that a society’s income and
7
5) If the Carlson Company decides to proceed with the hotel development, what steps
can it take to assure that the company remains in compliance with the code of
conduct it has signed?
Whether or not the company can remain in compliance with the Code in Costa Rica
depends to a large extent on the local employees who must manage the hotel and enforce
Students may offer the following suggestions about steps Carlson can take to assure
compliance:
8
Epilogue:
Carlson Company eventually decided to develop its Regent Hotels & Resorts, Carlson’s
luxury brand, in Papagayo, Costa Rica to provide higher-end accommodations to clients than
was available through its Radisson brand. The decision to complete the project offered Carlson
the opportunity to expand its luxury chain into a lucrative and growing Central American market.
Management agreed that it was Carlson’s obligation to go forward and recognize that the
expansion of the Regent brand into the Papagayo region was a problem that could be “managed
and solved over time.” From an operational and social responsibility perspective, management
believed it was doing more for the tourist industry by “entering into this environment and
proving it could run a hotel in a legitimate fashion.”
