Ethics can be defined as moral values of human conduct that can be used to govern the behavior of individuals in a social setting. Kubasek, Browne, Giampetro, Barkacs, Herron, Williamson & Dhooge, (2011) argued that, ethics program is adopted by organizations to assist them in making decisions through understanding what is right and wrong.

Hyatt Hotels Corporation has a code of ethics, which is designed to promote and reaffirm the Corporation’s compliance with laws and standards applicable to its entire jurisdiction. Everyone from employees to the management is liable to compliance with the code with no exemption. The code is developed in harmony with the laws of the respective countries to prevent conflict. The code addresses the issue of compliance with the applicable laws by means of honesty and integrity in relation to moral standards. According to the code all stakeholders should avoid private interest that may cause defects from the interest of the corporation. The use of Hotel resources for personal gain is prohibited and all members are subjects to confidentiality as far as hotel’s information is concerned. The code advocates for open competition and fair dealings in relation to customers and suppliers. The property of Hyatt should be protected and used only for the purpose of legitimate business.

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Bribery is condemned and may lead to termination of services of any member to the Hotels. Moreover, members are forewarned against the use of Hotels assets for their political purposes, the same way the associates are prohibited from trading in securities and stock of the corporation. Gifts should be received or given out, but with transparency and accountability. Accurate records of any business dealings should be kept for reference and auditing. Upon securing employment opportunities in the Hotel, employees are given a handbook each containing the code of ethics, which they are supposed to sign a copy as a way of accepting to abide by the code. The copy that is signed is submitted to the management as the employees retain the other one for quick reference.

The code is administered by the general counsel of Hyatt law department and enforced by all leaders in every level of management. Code of ethics could be applied in a case where an employee is subjected to sexual harassment by a supervisor in the course of duty. It can also be applied when a member of Hyatt goes at longer head with the law of State while protecting the interest of the corporation. In an event where other corporations engage in sabotage in the name of competition, the code of ethics can be applied so as to define the way forward. Hyatt hotel’s code of ethics is an excellent example in that; it sets guidelines for relationship between members of the corporation and the external environment. This is contrary to many organizations that deal with internal issues only. Another reason why it is a good example is that, the code is not dictatorial as it gives room for clarification requests by members.

This enables them to understand the code better and comply with guidelines they know well in terms of meaning and importance. Ethic programs provide a smooth working environment to all members of an organization upon its compliance. Hyatt Corporation has a defined code of ethics program that must be certified by all members before they start working for the Hotel. The code is enforced in a hierarchical manner from the general counsel to the employees in all divisions.


Kubasek, N., Browne, N.M, Giampetro, M.A.

, Barkacs, L., Herron, D., Williamson, C. & Dhooge, L., (2009).

Dynamic Business Law. Osborne: McGraw-Hill.


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