Managing Ethical Responsibilities

Now that Terry is aware of all the factors in the external environment that could affect the resort's business, he is now turning his attention to the local environment that also has an impact on the business operations.

Terry has always been someone whose personal values translate into his daily life and interactions with people. Similarly, his passion and concern for the environment has driven his ambition to win this year's Green Star Accommodation Award, which is funded by the Australian Government. The Australian Government is increasingly channelling resources to encourage corporations to adopt and act on their social responsibilities. In addition, through market research, Terry has discovered the increasing demand from tourists to support environmentally friendly establishments and the growing trend of eco-tourism. Furthermore, the resort's surrounding residents and the Pilbara community are very protective of the natural surroundings and have expressed their concerns to safeguard the beautiful scenery and the nearby animal sanctuary.

The Green Star Accommodation award is considered to be prestigious and is presented to participating resorts that meet certain environmental standards and criteria. These standards and criteria include:

• Adopting environmentally friendly practices throughout the Resort (For example developing a 'green' focused mission statement).
• Minimising the use of non-renewable energy (fossil fuels) in the Housekeeping Department (For example by giving guests the option of washing their bath towels daily).
• Developing an environmental procedures manual for all staff to use in their daily work. (For example separating recyclable waste on a daily basis).

Terry now has to develop an organisational strategy to ensure that the Resort's environmental standards are achieved and maintained. In developing his organisational strategy, Terry considered several approaches towards managerial ethics. His main aim was to achieve win-win outcomes for all stakeholders. Examples of such outcomes include cost savings (increasing Lizard Beach Resort's profits) and at the same time appealing to environmentally green guests. Terry hopes his strategy will have a positive long-term impact on the nearby rivers and trees as well as the Pilbara community. Furthermore, Terry has to ensure that the departmental Managers and Supervisors incorporate these environmental values and outcomes when delegating tasks, motivating staff and conducting performance reviews.

Question - How are the four functions of management presented in this case?