Hospitality Management


Case Summation

The case is an illustration of a challenge facing CEO Marilyn CarlsonNelson, of Carlson Company on whether to come up with a lucrativehotel and resort to be situated in Costa Rica. She is a leader in theglobal travel, as well as hospitality industry. The company is asignatory of the global code of conduct, which safeguards childrenfrom sexual abuse within the international tourist business. CostaRica, in Central America is recognized for child trafficking. Byopening the resort, the company exposes itself to risks related tolitigation and association with sex trafficking (Linde &ampEisenbeis, 2011). This raises issues on if the company can progresswith its plans, whereas ensuring its pledge to the code of conductand international human rights.

Response to the Associated Questions

The company is justified in signing the Code. According to the case,children sexual trafficking was a well earning industry. Close to twomillion children were subjected to the business on a yearly basis(Linde &amp Eisenbeis, 2011). In some cases, the tourism,hospitality and travel industry aided the exploitation viatransportation of sex tourists and victims to their destinations.Trafficking was banned under global codes and numerous national laws.Carlson had a reputable devotion towards charity work, specificallyin children’s welfare. Thus, by signing the Code, the move improvesthe company’s standing as leaders in safeguarding children’sfreedoms.

There are benefits and demerits of considering the hotel resort inCosta Rica a viable business opportunity. The venture permits Carlsonto permeate the lucrative and expanding market in Central America,with the possibility of remarkable returns. In case the companytriumphs in Papagayo without supporting sex trade, it may set apositive image for different hotels in the area. Another benefit isthat implementing the code in a region known for sex traffickingunderlines Carlson’s devotion to social responsibility within thetourism industry. Demerits are that adhering with the Code in CostaRica may result in monetary losses. There is also the possibilitythat the company may be incapable of gratifying its duty under theCode.

To advance with the venture, it is worth the risk placing Carlson’sreputation under franchise owners and untested regional workers. Astakeholder evaluation demonstrates that senior executives and boardmembers are probable to have a great interest in the development ofthe Papagayo resort. Local officials are as well probable of backingthe development, as it will avail local employment and tax returns.The individuals directly engaged in gaining from child sextrafficking have the alternative of diverting their business todifferent destinations. This implies that the business is notprobable to create organized opposition.

The question of if Carlson Company can progress to comply with theCode in Costa Rica relies largely on the workers, who will beresponsible for managing the resort and enforcing the Code daily. Theworkers will be responsible for policing clients, contractors, aswell as each other for Code adherence. To enact the Code efficiently,the company should derive manners of encouraging regional workers toowning the commitment. Considering the widespread sex trafficking inCosta Rica and in surrounding hotels, Carlson can take measures inensuring Code compliance.

The measures include conducting individual investigations to validatethe precise threats relating to sex trafficking. A structure ofrewards and approvals should be determined to encourage Regencymanagers and workers in Costa Rica to integrate the Code’senforcement as a daily endeavor. Carlson should come up with a systemfor monitoring worker’s conduct. An alternative includes initiatingan honor system, which permits workers to assess and policethemselves. Another alternative entails employing individuals tosupervise worker adherence to the Code.


Linde, R &amp Eisenbeis, H. R. (2011). The Carlson Company andGlobal Corporate Citizenship. Case Research Journal, 31(2),1-11.