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Ethical Risks of Aitken Spence Hotels in Post Pandemic Period


Ethical Risks of Aitken Spence Hotels in Post Pandemic Period

Word Count 1877




Identify a Sri Lankan public quoted company or a private organization, which employs more than 100 staff. Identify at least 4 areas where there are potential ethical risks. Justify the reasons as to what could be the outcomes of these unethical practices. Provide recommendations as to how the organization could ensure that it would avoid ethical risks in conducting its business in these uncertain times.


Note: Your analysis should be based on the secondary data collection methods

Critically evaluate,

  1. The potential ethical risks for the organization
  2. The applicability of theories in analyzing the situation and challenges
  3. Recommendations to overcome the ethical risks

Assessment criteria

  1. Introduction to the organization (10%)
  2. Identification of potential ethical risks of the organization – (25%)
  3. Depth and understanding of the subject in relevance to application of theories in analysis – (15%)
  4. A practical solution and overcome the ethics risks – (20%)
  5. An appropriate logical conclusion – (10%)
  6. Format and flow of the report – (10%)
  7. Proper and current referencing – (10%)

Additional information

Table of Contents

Executive summary

1.0 Introduction

2.0 The potential ethical risks for Aitken Spence Hotel Holdings PLC and theoretical application

2.1 Delaying payments to suppliers
2.2 Further continuing pay cuts for employees after regaining the tourism industry
2.3 Fairness of performance evaluation considering some employees WFH during most of the year.
2.4 Hotels practice foreigners only policy

3.0 Recommendation

4.0 Conclusion



1.0 Introduction

Covid-19 pandemic negatively affected many different businesses. Tourism industry is one of main industries which immensely affected by the pandemic. Specially, countries like Sri Lanka and Maldives which highly depend on tourism industry suffered lot in last two years. Currently, tourism industry regains strongly with reopening borders and lifting lockdown. Therefore, there is opportunity to hospitality industry to recover after the pandemic. However, companies need to consider possible ethical risks could be raised in post pandemic situation.
Aitken Spence Hotel Holdings PLC is one of leading hotel chain in Sri Lanka. The objective of this study is to evaluate the potential ethical risks for the Aitken Spence hotels during recovering stage. Company operates a chain of 22 hotels and resorts in countries like Sri Lanka, Maldives, India and Omen. Aiken Spence hotels employs more than 3200 employees (Aitken Spence hotels, 2020).

2.0 The potential ethical risks for Aitken Spence Hotel Holdings PLC and theoretical application

This section evaluates four main possible areas that ethical risks can be occurred in Aitken Spence Hotels during post pandemic period and the applicability of theories related to situation.

2.1 Delaying payments to suppliers

Company procures range of items from more than 800 local and international suppliers. The most of the suppliers are small and medium scale local suppliers. During Covid-19 outbreak, these suppliers suffered more than larger scale businesses like Aitken Spence. Aitken Spence has higher bargaining power over suppliers as a company which has larger operation. However, it is unethical that delaying payment to suppliers using company’s higher bargaining power. Generally, companies try to delay payment to manage working capital.