Scope
For a company to prosper and to have a good reputation, there are set codes that must be adhered to. Business ethics is to check how business policies and practices in the line of contradicting issues like corporate governance, bribery, discrimination, insider trading, and corporate social responsibility. Business ethics always choose the track for the business to follow but sometimes there are set laws to guide the business. The main aim of business ethics is to ensure that there is some trust between the client and some level of traders and also to build a good reputation. Sometimes there are businesses that are involved in unethical business practices such as a wrong advertisement or unfair contract plan to satisfy their interest (Shaw, 2016).
In this report, I am going to concentrate on the unethical practices of the tourism industry in Australia.
In Australia, tourism is one of the major sectors of economy contributing up to 4% of the total GPD. 520,000 citizen also get a job in this sector. The tourist that visit Australia consumes goods and services up to A$73 billion of which A$17 billion are consumed by the international visitors.
My report will also assess the economic cost of unethical business practices in the tourism industry and how these practices affect the economy and the stakeholders, the international society and the amount of tax evaded by the people practicing this act (Weiss, 2014).
The report will recommend ways in which the unethical ways can be corrected and how the individual found practicing this vice can be convicted.
Many adverse impact have been linked with Taiwan, China, Japan, Korea, and New Zealand. Therefore, I think that I should conduct a comprehensive analysis to support further action to stamp out unethical practices in this sector (Yam and Reynolds, 2016).
The general objectives of the project will be to:
- To assess the impact of the unethical business practice in the Australian industry to the economy
- To quantify the effect of the unethical business practice in the tourism industry to the government taxation revenue, to the territory and the state government (Giacalone and Promislo, 2014).
- To quantify and to identify the reputation of Australia to the International
- To identify the indirect cost like unethical practices on the compliant job that employ Australian tax payer’s 2and pay tax (Trevino, et al, 2014).
From the research I did, I found that there are many rog retailers that claim to represent tax-free shops in the industry. The research was supported by the Tourism Division of the Department of Industry, Tourism, and Resources (DITR). These retailers are domestic retailers, and they are not licensed free. They pose as tax-free shops taking advantage of the innocence of the tourist. My research was welcomed by Australia duty-free Association which is one of the most self-regulated in the world and legitimate Australia’s duty-free industry. From the codes of ADF, the virtues of the business must be strictly adhered to.
Objectives of the report
From the previous reports, there were some rumors that there were fake retailers who were taking advantage of the tourist from China, Taiwan, Japan, and South Korea. Retailers were being involved in unethical business practices like overpricing which are not allowed; by the Australian law. The reports were experienced in Cairns, Gold cost, Sydney and recently Victoria (McKercher and Tung, 2015).
It was also realized that the rogue operators take advantage of this group to enjoy shopping, which is the primary reason why they visit Australia by exaggerating commission and they collaborate with the tour guides to take these tourists to their shops so that they can charge high prices and to give wrong information about the product. The tour guide is given some amount, and this is against ACCL laws which illegalize referrals
It is also realized that the government loses much of its tourists since the price offered by the rogue retailers and the price at their country are slightly deferent, so they rather save time and shop at home rather than traveling to Australia and buying the same product at the same amount.
The magnitude cost by rogue retailers has been obtained by identifying the size and the cost of the economy of Australia, industry, and taxation revenue by the government including the effect as opt by the inbound tourism destination in Australia.
The report has also identified that much money is a loss by the government through a direct and indirect cost of unethical business through unethical practices practiced in Australia tourism industry, such as indirect cost (Kwek and Lee, 2015).
In today business environment, it is hard to differentiate between wrong and right. When workers with high moral standard realize unethical behavior on their colleagues, they become helpless. To the employee, they will be affected physically or mentally in case the company is practicing unethical, dishonest or deceptive conduct. The effect of the unethical practice by the rogue workers above include
There is a reduction of tourist visiting Australia due to high prices of goods and misleading information about the product. This affect the revenue earnt by the key stockholder who is the government
The unethical being practiced in the tourism sector will lead to drop in the stock price. When the practice is not stopped, the number of tourists visiting Australia will reduce, and the number of people investing in the stock of the industry will deteriorate due to poor returns.
The unethical practice by the industry leads to loss of revenue by the government. This leads to low economic growth. When the system continues, some people will be retrenched due to low income earned (Mao and Huang, 2016).
Conclusion
In conclusion, unethical business practice is an orthodox means which should be avoided. The rogue retailers in the tourism industry of Australia spoil the brand name and the reputation of the country to the international world (Valazquez, 2002).
The government should apply the recommendations to ensure the industry is a safe guard and the reputation of the country is maintained. Through the research, I also realized that the economy of the nation is highly affected by the fake retailers in the name of free tax zone. The government should put necessary measures to ensure that correct measures of obtaining the license is followed (Desjardins and McCall, 2014).
Regarding employee, there should be a correct process where workers who get fellow employees involved in unethical business practice should follow. This will help safeguard the conscience of workers and to boost their morale.
- I recommend that any tour guard found breaking law like referral selling should be sacked immediately and convicted
- Retailers who are involved in unethical business practice should be convicted and license revoked
- Before license is given to retailer, they should be given an exam about business codes to do so that a confirmation on their understanding to business ethics can be confirmed
- I recommend that government should use ambassadors to make tourism in Australia great again by advertising our ability and capability in the foreign country.
- According to consumer law in Australia, false advertisement is an offense hence retailers found giving falls information about the product should be arraigned in the court of law (Crane and Matten, 2016).
References
Velasquez, M.G. and Velazquez, M., 2002. Business ethics: Concepts and cases (Vol. 111). Upper Saddle River, NJ: Prentice Hall.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage Learning.
Mao, I. and Huang, S.S., 2016. Mainland Chinese Outbound Tourism to Australia: Recent Progress. In Chinese Outbound Tourism 2.0 (pp. 133-149). Apple Academic Press.
Kwek, A. and Lee, Y.S., 2015. How “face” matters: Chinese corporate tourists in Australia. Journal of Travel & Tourism Marketing, 32(1-2), pp.120-140.
McKercher, B. and Tung, V., 2015. Publishing in tourism and hospitality journals: Is the past a prelude to the future?. Tourism Management, 50, pp.306-315.
Treviño, L.K., den Nieuwenboer, N.A. and Kish-Gephart, J.J., 2014. (Un) ethical behavior in organizations. Annual review of psychology, 65, pp.635-660.
Giacalone, R.A. and Promislo, M.D., 2014. Handbook of unethical work behavior: Implications for individual well-being. Routledge.
Yam, K.C. and Reynolds, S.J., 2016. The effects of victim anonymity on unethical behavior. Journal of Business Ethics, 136(1), pp.13-22.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.
Shaw, W.H., 2016. Business ethics. Nelson Education.
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