Certified Hospitality Manager (CHM) Practice Exam

What makes a management decision or action ethical?

1. Avoiding confrontation

2. Staying true to a specific value system

3. Maximizing profits at all costs

4. Following legal requirements only

The correct answer is: Staying true to a specific value system

A management decision or action is considered ethical when it aligns with a specific value system. This means that ethical decision-making is grounded not just in compliance with laws or regulations, but also in the moral principles and beliefs that guide an organization or individual. By staying true to a value system, a manager demonstrates integrity and commitment to doing what is right, even when faced with challenges or pressure. Making decisions based solely on profit maximization or legal compliance may lead to actions that are expedient but not necessarily ethical. It is important to consider the broader implications of decisions on stakeholders, including employees, customers, and the community. Ethical management provides a framework for evaluating choices beyond mere legality or financial gain, encouraging actions that are fair and just. In essence, the practice of ethical management involves assessing choices against core values and principles, ensuring that all actions contribute to the greater good and uphold the standards of dignity and respect within the organizational culture. This approach fosters trust and loyalty, which are essential for long-term success in any hospitality setting.