Module 8 Week 13, 14, 15
Module 8 Week 13, 14, 15
Module 8 Week 13, 14, 15
Meaning of Ethics
According to the New Encyclopedia Britannica, ethics is the discipline concerned with what is
normally good and bad, right and wrong. The word ethics comes from Greek word ethos which means
“character” or “guiding beliefs, standards, or ideals that permeate society’’. The study of ethics is the
viewing of ethical concerns and the possible consequences in the light of one’s values (Keiser, 2005)
The Role of Ethics in Society
The study of ethics has now become an important topic in society. Business ethics is now being
tough in several colleges and universities. At present, ethical dilemmas plague society. The government is
haunted by the unethical behavior of past officials. Corporations are suffering from allegations of
misconduct. Individuals are faced with personal decisions about ethical behavior. James Keiser gives the
following reasons for the current interest in business ethics:
1. A drift toward materialism and greed, pushing people to acquire wealth or status beyond their real
needs and want more regardless of what it takes to get it;
2. The deregulation of some industries, intensifying competition and encouraging managers to cut
corners;
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3. The growing size of business enterprises which dilutes and spreads personal responsibility for
unethical acts;
4. A growing hedonism, leading people to be more concerned with their own happiness than
responsibility to others;
5. A lack of moral leadership among prominent people and abundant examples of people who
prosper from moral laxity and greed;
6. The breakdown of the family and the sense of familial responsibility traditionally transmitted to
children; and
7. An increased reliance on government which has decreased the individual’s sense of responsibility
for himself or other (Keiser 2005, p. 342)
The question that needs to be answered is: how can we correct the problems with society’s ethics that
re very prevalent in today’s business world? At present, an individual has to make choice based on profit,
promotion, or personal gain at the expense of long-term quality gains. Angelo and Vladimir (2005) state
that although individuals have different personal values and morals, they should recognize that there are
some universal principles that all religious, cultures, and societies agree upon. It is upon these principles
that one should build his or her own personal code of ethics.
Ethical practices are the result of an organization’s commitment to serve its clients in fair and
equitable manner. These structure of an organization dictates its ability to respond to situations in an
ethical manner. Without structure support for an ethical decision-making process, it is impossible to
expect business employees to be able to make ethical decisions;
According to Solomon and Hanson, there are some three reason why ethics is important.
1. Ethical errors and careers and more quickly and more definitely than any other mistake in
judgment or accounting.
2. Ethics provides the boarder framework within which business life must be understood
3. Nothing is more dangerous to a business than a tarnished public image.
Ethics is installed in an individual at a very early age. Courses and books on ethics do not necessary
change an individual’s ethics but they can enable him or her ethical behavior in the light of today’s of
ethics. This is very important because of the degrading ethical behavior at present. The search for success
and greed of money have lead to the personal and professional ruin of many individuals. This greed has
also caused the lack of concerned with what it view as a total lack of concern for right and wrong and is
demanding a more approach to business.
Colleges and universities are responding by adding courses on ethics in their curricula. Business are
responding by implementing training programs that would develop more ethical behavior among their
employees.
The commitment to ethical behavior must start at the top of an organization. If the leader of an
organization does not believe or display ethical behavior, it is difficult for the subordinates to exhibit and
implement ethical behavior. For this situation, the individual employees believe that they are not being
treated fairly and that the company is more concerned about the bottom line and not about their employees
and customers, they will less likely be concerned about their ethical behavior (Montgometry and Strick,
2005).
Unethical Practices in the MICE Industry
In the MICE industry, there are plenty of opportunities for unethical behavior. There are certain
practices within the MICE industry that are more likely to lead to unethical behavior. The following are
some of the practices:
1. Familiarize tours
2. Overbooking
3. Commissions
4. Gift – Giving
5. Employment, rates of pay, and working conditions
Familiarize Tours
Convention and Visitors Bureaus or venues invite prospective conference and event organizers or
client organization or client’s organizations to visit a specific site or location for free. They hope that after
reviewing the facilities and services of the location, the organizers will hold a convention or event in that
future. These trips usually provide the royal treatment for all participants and can very enjoyable
experience. Familiarization (FAM) trips are frequently abused by both organizers and suppliers.
Organizers should only accept a FAM trip package if there is an intention to do business with the supplier
at a future date. Unfortunately, it has long been a practice of some organizers to use FAM trip for personal
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vacations even though they have no intention to book a convention or event in that destination. It is
obligatory for convention and event organizers to refrain from going on FAM trips unless there is a strong
probability that that will use the property in the future. It is also important that properties qualify their
guest list more carefully.
Overbooking
An ethical dilemma that frequently occurs within a venue is the place of overbooking the guest
rooms. The suppliers of the hotel is guaranteeing a product that it knows may very likely not be available
to the customer. Although is conduct should be interpreted as an unethical decision, failure to overbook
may lead to a number of unsold rooms resulting in a loss of profit. The desire to make a profit often
outweighs an individual’s or company’s code of ethics. More recently, the practice of overbooking has
expanded to convention and meeting rooms.
Commissions
The practice of taking a commission or services “sold on” by convention and event organizers has
become an accepted practice within the industry. However, ethically and legally, conference organizers
and others who act as agents do not accept hidden commission on goods and services and their supply
such as hotel accommodation, delegate name badges and audiovisual equipment. Clients should be made
aware of the commission, and reference about it should be made in documentation such as invoices and
contracts.
Gift Giving
Giving gifts within the MICE industry is common. Gifts may be a simple basket of fruits, a bottle
of champagne, a room upgrade, or an expensive piece of jewelry. While it might be appropriate to accept
a basket of fruits or a bottle of champagne, receiving expensive jewelry ids definitely not acceptable.
Many companies and organizations have established rules that staff members who make purchase
decisions or who are in position to influence outcomes should not accept gifts. This is useful guideline for
convention and event organizations.
Employment, Rates of Pay, and Working Conditions
The MICE industry employs a large number of part-time and casual employees. Ethically and
legally, it is important to ensure that working conditions and company agreements establishing standard
wages are strictly implemented and that the employees not taken advantage of
These are just a few example of how the MICE industry is open to ethical dilemmas, these
practices, if not stopped, will ultimately destroy the good image of the entire industry.
The importance of a Code of Ethics
Ethics is a way of life that depends on honesty, integrated, and courtesy. Individuals should
develop their own personal code of ethics. They must determine what exactly they believe in and what
truths govern their lives. Based on these judge all actions based on this code. MICE organizations need to
develop and maintain both good business and ethical practices. Professional associations related to the
MICE industry have developed codes of ethics for their member to adhere to.
CHAPTER 10 – TECHNOLOGY for the MICE INDUSTRY
The major role of technology in the MICE industry is to gather, store and provide data to the different
levels of users. The significant advantages of technology over manual systems are:
1. Opportunities to use data in a more effective and appropriate way;
2. Greater dependability; less possibility of human error;
3. Harmonious operations;
4. Safer data; and
5. Real-time analysis and review.
At present, most MICE organizations maintain a paperless office, where the company depends
completely on software collection, storage, and retrieval of data. There are many types of computer
technology that are currently used. These system can be identifies by the methods they use to process
information, by the types of filling system used for storing and retrieving data and by hardware
configuration.
Data Processing Systems
Data processing systems are divided into three types:
1. Batch processing
2. Online real-time processing
3. Time- sharing and services bureaus
Batch Data Processing
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In batch data processing systems, event negotiations are gathered and prepared in groups. All
income and invoices for a simple day are considered batch negotiations and will be recorded in a
computer system as a single batch. The system is simple and reliable. In general, the rule technology is
that more complex a system is, the greater is the possibility of errors. The biggest benefit of batch
processing is that it is cheap. The system does not impose network immediate backup and training of all
employees. However, because the batch processing system does not permit instant negotiations, MICE
managers are not able to obtain up-to-date information. Thus, MICE companies rarely use batch
processing system. They are usually used by small and medium-sized MICE companies.
Real –Time Data Processing
In real time processing system, negotiations are recorded as soon as they occur. Because the
database negotiations are continuously updated, the condition of all account such as sales income,
admission income, and inventory can be easily resolved. The data processing system of many MICE
auxiliaries can be integrated in to the processing unit of main office. The main office can prepare the data
either in real-time or by using the batch processing principles. MICE managers can have different ways of
connecting to the central data processing unit. Middle-level managers may be permitted to get all data
from all units or may be restricted in obtaining all data.
A MICE company supervises all activities of all system. It permits the MICE manager to organize
their activities in a very profitable way. The system gives the MICE manager a good instrument to control
the list of goods, control the collection of income, and to compare the information. This system is more
expensive than batch processing because it demands real-time negotiation and instrumental group of
system. Real-time systems are usually used by middle-sized and big MICE companies.
Hardware Configuration
Many types of hardware configuration are common in the MICE industry. These are:
1. Online systems;
2. PC system; and
3. Distributed data processing
Online Systems
Online system are unique because each transaction is entered via a communication device
connected to a computer. A good example of such systems in magnetic cards. Online systems may or may
not be real-time systems depending on weather transactions are processed and updated as soon as they
occur.
Electronic data interchange (EDI) is being adopted by several large MICE companies. EDI is a
computer-to-computer exchange of intercompany information and data in public standard form. In an EDI
system, documents such as purchase orders, invoices, attendance projections, and checks are converted
into standard form, allowing other employees to read and accept to read and accept them. The direct and
indirect methods are used to implement the EDI. The direct method connects the computer system of
MICE company with a major client or supplier, which may be a major beverage supplier. When MICE
company adjust its attendance numbers, the system informs the supplier which helps remove inventory
shortages.
The indirect method uses network of several computers of companies that provides a “mailbox” to
be used by all. The network converts the message of senders into format preferred by receivers. The
advantage of this method is that the sender can transmit documents to several receiver without changing
the format. A very good example is when a MICE company submits all the information about all the
information about a forthcoming event. The suppliers will then visit the mailbox and submit offers,
matching the requirements.
Distributed Data Processing
Several large MICE companies use PCs for both data processing and analysis. MICE companies
with branches across different locations usually use networks to process the transactions of each branch
and transmit them to the main office through the transactions of each branch and transmit them to the
main office through communications links. Local MICE managers can use a PC for different kinds of
analysis. Distributed data processing system are often connected to a mainframe computer which located
at the office headquarters of a MICE company. In addition, they can be connected to one another through
a networking system such as local area network (LAN) or a wide area network (WAN). Networks are used
to give PCs the ability to communicate with each other and share workloads.
Access Control
Access should be limited only to authorized persons in order to prevent unauthorized use and
change of files and data. In an online, integrated file system an EDI, access is limited through control of
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the passwords. Passwords are codes used to access several parts of a database. Some passwords allow the
examination and convey of data. Others allow change of data. It is important that at least two people have
master access to the database so that if a person with master access is not available, the operation of the
company will not be affected.
Interactive Wed
One of the most important events of the decade was the development of the Internet. At first, it
was available only to academic institutions and the military. Later, it became a significant part of the
business community. As a start, companies set up websites that serve as an information tool. Small MICE
companies use websites to give basic information about their services and how to contract them. The
website are used to attract potential customers and can serve as a good marketing tool. To attract potential
customer, MICE companies register the site with several search programs such as Google, Altavista,
Yahoo!, and HotBot. Once a website is registered with all major search instruments, it will be available to
a potential client who is conducting a search. In conducting a search, keywords such as event
management, or just event, are usually used. The more general the keywords, the more potential matches
will be produced by search program. The following are the advantages that a site can provide to a MICE
company:
1. Wide market search
2. Ability to update information quickly and easily
3. Ability to gather data about potential customers
4. Ability to decrease marketing expenses
The Internet is a great equalizer. It gives small and middle-sized MICE companies the same
opportunities as large MICE companies to reach potential clients. A website can be an excellent means for
collecting information about existing and potential clients. MICE companies usually ask their site visitors
to register and give their email address, areas of interest, geographic data, and other materials. This
information can be used as customized database of clients. The website can also be used as a tool for
customized services.
MICE Industry Database
The MICE industry is growing very fast. A major problem of MICE companies is how to keep
their database up-to-date. Very often a number found in a catalog has already been changed with the
number is dialed. Almost every catalog is outdated as soon as it leaves the print shop. The accuracy of
documents decrease over time. One way of solving this problem is by getting online. Internet database are
the most reliable in the MICE industry.
Database has two major criteria. The first is its resources. The more resources a database has, the
more reliable it becomes. Because resources are collected over time, young database often contain less
data than older ones. The second is its search features. A database can be searched in many ways such as
alphabetically by region, by services offered, by price, and by age. The more criteria a database has, the
more reliable it becomes. Search criteria should be user-friendly and easy to customize.
The development of the Internet has given new opportunities for the MICE industry such as
information database, interactive database, and commercial databases. Search criteria can be customized
and changes mush easier than in the paper version. The search itself can be customized. In the electronic
database, users can enter keywords and the database will conduct a global search based on these words.
Trends in Technology
For the past 20 years, technology was not used by small and medium-sized companies. At present,
the situation is different. Almost all MICEs offices have a computer, Internet access, and email. In the
next 10 years, technology will be more customized. More software development market will become more
competitive, services more user-friendly, and prices more affordable. An important innovation in the
global high-technology revolution is the development of the wireless application protocol or WAP. WAP
was developed within the wireless industry from companies such as Nokia, Phone.com, and Ericsson. The
WAP serves Internet content and services to wireless clients with the use of WAP devices such as mobile
phones and terminals. according to the International Event Society, more than 90 percent of MICE
professionals use cellular technology. The cell phone is an indispensable tool in the MICE industry. WAP
technology makes it easier, faster, cheaper, and more profitable to connect with others locally and
internationally.\
Developments in technology enable MICE companies to conduct registration, planning, control,
and supervision of events through the Internet. A MICE company in the United States can produce an
event in England or vice versa without relocating its staff or setting up an office.
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In using technology, especially the internet and other networks, all processes should be available to
the participants. If one partner has a very slow Internet connection, the entire network should be designed
in such a way that the user with a slow connection will be able to receive the same service as the others.
Hardware Configuration
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*REMINDER: SUBMIT ONLY YOUR ANSWER SHEET.
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