SER3603 : English for Service Business UNIT 6 : Ethics in Service Industry By Dr.Poramatdha Chutimant Lecturer at Faculty of Management Science Suansunandha Rajabhat University

UNIT 6 : Ethics in Service Industry No matter what and where the service business today is, ethics always plays as one of the key issues that helps enhancing the service quality along with service marketing. It focuses on the customers’ right to deserve the quality of service that worth the money they already paid. Ethics becomes an important topic that are discoursing mostly in the western world. In tourism industries, many countries in European regions are trying to sustain and uplift the concept of ethics for the visitors. Because local service providers know that they always gain many benefits from travelers all around the world, so the perspective on ethics in service quality is the main path that guarantees the worth of money in all people’s perception.

What is Ethics? The term is derived from the Greek word ethos which can mean custom, habit, character or disposition. Ethics covers the following dilemmas: how to live a good life our rights and responsibilities the language of right and wrong moral decisions - what is good and bad? Globally, ethics encourages people to be more responsibility, frankness, honest, and morale for their living and working. It becomes an internal drive to undoubtably change people for the sake of goodness. Quality employee does not mean only skillful for works, but requires ethical thinking, rationalization, and morality that guarantees the positive outcomes of works. In service industry, ethics roles as the key principle to enhance the quality of services in which interconnected with technical skills, experiences, and morale.

The importance of ethics in service business Emily Newman (2014) states in her article named “Importance of Ethics in Customer Dealings” that the importance of ethics can never be overemphasized in all walks of life. It is necessary for each one to have a set of moral values and in the realm of business dealings, ethics prove invaluable. Ethics in customer dealings presents your company in a good light and customers will trust your company irrespective of high prices or minor service lapses. Ethics in customer dealings improves the quality of service and fosters positive relationships. Business ethics is about being able to differentiate between what is wrong and right and conduct all dealings based on what is right even when doing the wrong thing will reap richer benefits at least short term.

The importance of ethics in service business For a business to be successful and even exist, it needs customers. Customers have become smarter, more well-informed and are quick to perceive if they are being cheated. The company’s success therefore rides on building trust and confidence with the customer which can only happen when they practice ethics in customer dealings. Integrity in every dealing must come naturally and not because there would be legal repercussions. Ethics in customer dealings is doing the right thing every time and in everything. So how can companies display that they follow strict guidelines of ethics in customer dealings? These characteristics must be clearly demonstrated for customers to believe them long term.

Benefits of Ethics Carter McNamara states that many people are used to reading or hearing of the moral benefits of attention to business ethics. However, there are other types of benefits, as well. The following list describes various types of benefits from managing ethics in the workplace; 1. Attention to business ethics has substantially improved society. 2. Ethics programs help maintain a moral course in turbulent times. 3. Ethics programs cultivate strong teamwork and productivity. 4. Ethics programs support employee growth and meaning. 5. Ethics programs are an insurance policy — they help ensure that policies are legal. 6. Ethics programs help avoid criminal acts “of omission” and can lower fines. 7. Ethics programs help manage values associated with quality management, strategic planning and diversity management — this benefit needs far more attention. 8. Ethics programs promote a strong public image. 9. Overall benefits of ethics programs 10. Last – and most – formal attention to ethics in the workplace is the right thing to do.

Ethics VS Code of Ethics Oxford dictionary describes the meaning of ethics as moral principles that govern a person's behavior or the conducting of an activity. Thus, to elaborate its meaning, ethics is about the path of human behavioral patterns that can be perceived and judged as right or wrong by human basic senses. A code of ethics referred to as an "ethical code," may encompass areas such as business ethics, a code of professional practice and an employee code of conduct. We can say that code of ethics is a set of rules and regulations written by the organization to be the path for employees while they are working.

Ethics VS Morals Interestingly, ethics and morals have similar meaning and learners might misunderstand the conceptual and contextual issues between them. To clarify this point, learners must look at the definitions first, then compare them thoroughly in many dimensions as follows; Ethics and morals relate to “right” and “wrong” conduct. While they are sometimes used interchangeably, they are different: ethics refer to rules provided by an external source, e.g., codes of conduct in workplaces or principles in religions. Morals refer to an individual’s own principles regarding right and wrong.

Ethics versus Morals comparison chart What are they? The rules of conduct recognized in respect to a particular class of human actions or a particular group or culture. Principles or habits with respect to right or wrong conduct. While morals also prescribe dos and don’ts, morality is ultimately a personal compass of right and wrong. Where do they come from? Social system – External Individual – Internal Why we do it? Because society says it is the right thing to do. Because we believe in something being right or wrong. Flexibility Ethics are dependent on others for definition. They tend to be consistent within a certain context, but can vary between contexts. Usually consistent, although can change if an individual’s beliefs change. The “Gray” A person strictly following Ethical Principles may not have any Morals at all. Likewise, one could violate Ethical Principles within a given system of rules in order to maintain Moral integrity. A Moral Person although perhaps bound by a higher covenant, may choose to follow a code of ethics as it would apply to a system. “Make it fit” Origin Greek word “ethos” meaning”character” Latin word “mos” meaning “custom” Acceptability Ethics are governed by professional and legal guidelines within a particular time and place Morality transcends cultural norms

Consequences of Ethics in Business Unethical practices may damage a firm’s reputation and credibility, subsequently making it less appealing to stakeholders. Profits could fall as a result. Businesses that fail to follow statutory guidelines often face large fines and other penalties. Additionally, executives at companies that break laws and engage in unethical behavior could find themselves facing criminal charges. A lack of ethics has a negative effect on employee performance and morale. In some cases, employees are so concerned with getting ahead and making money that they ignore procedures and protocol. When a manager or head of a business exhibits a lack of ethical behavior, he faces losing the respect of his employees. It is difficult to have a successful business without well- respected leaders.

Consequences of Ethics in Business In service industry, ethics is not only the ability to judge what is right and wrong, but it maintains a good relationship among stakeholders especially customers. People in service industry are necessary to aware of positive behaviors—or known as ethics behaviors—that able to increase sensibility and accessibility to human mind, the rights to deserve, and expectation. Unethical people always behave unethical actions that reflect not only within a company, but reflect good image and reputation, trustworthiness, and service quality that lead to decline in customer’s turnover. Lack of ethics in service industry reveals the weak point of management absolutely, sometimes service business owners/ entrepreneurs focus solely on the expected outcomes such as increasing sale volume, training employees to be more skillful, and even other benefits a company should deserve.