Question:
Discuss about the Enable Local Consumption and Exports.
The triple bottom line is the social, environmental and financial profit. Most organizations aspire to achieve that through maintaining the corporate social responsibilities. The organizations follow the CSR principals and objectives for achieving sustainability and long term profit in the global market (Savitz 2013). Organizations have other responsibilities while doing business especially in outside their home country. The organizations have to take care of the host nation and its communities while maintaining the reputation; therefore maintaining an ethical practice becomes significant for organizational practice. For Australian cruise ship market Vanuatu covers a significant tourism market in the Pacific region (Aph.gov.au 2014). The tourism industry has shown not much involvement in maintaining corporate social responsibilities like other industries (Coles et al. 2013). This is evident in the case of P & O Cruise Company’s business in Vanuatu. The video named Vanuatu’s Broken Heart highlights many ethical issues in cruise ship’s business in international hospitality and tourism market.
The ship company promised to invest a lot of money in the development of the people of Vanuatu. The video shows that despite such big promises the citizens did not experience any improvement in the place that could help them to enhance their living standard. The company built high quality toilet in the area but that is available for the foreigner tourists only. The water system is improved by the tourism company that too for the tourists only. Since the origin of the tourist business the invested money has never been utilized properly. No improvements have been initiated by the company as the citizens still struggle with the fuel problems, water scarcity and bad public health system when at the same place the tourists are enjoying great luxury. The unethical practice was covered by the company as no financial report was published by the Vanuatu Tourist Board for 5 years till 2012 (YouTube 2013). It was claimed that the company spent 800000 dollars to improve the clean water and toilet facilities for the locals but in reality the facilities are given to the tourists only (Sbs.com.au 2013). P & O company practices such organizational behavior that forces “the poor to stay poor only” without even trying to decrease their struggles for basic amenities (Scheyvens et al. 2015). The tourists also do not offer the locals any money as they believe they lack cash handling experience. They also believe that it would encourage them to act dishonestly.
The Broken Dream video demonstrates that the P & O Company actually did not act ethically while doing tourism business in Vanuatu. As a responsible organization it was responsible for improving the economic and social well being of the company but it did not as the documentary shows. The Australian cruise company P & O manages hundred of national and international tourists in the beautiful islands of Vanuatu (Pocruises.com.au 2017). Though their annual reports describe they are taking good care of the local people and the environment but in reality it is different as the documentary depicts. The company did little to nothing to improve the social and economic condition of the local islanders after serving the business for more than 10 years. The company feels if the local people gain financial independence their business might get affected (Taumoepeau, Towner and Losekoot 2017). Every time the cruise lands on the islands and the local people get some amount of money from stalls but no sustainability is there. Therefore neither social nor ethical responsibilities have been fulfilled by the company.
It is not just the cruise company that is responsible for the bad condition of the locals of Vanuatu. The tourists, the government officials and the locals have contribution to the matter too. The cruise company did not fulfill its ethical or social responsibilities as they promised the locals and the Vanuatu government prior to the business venture. The cruise authority could provide the basic facilities like water, toilet and primary schools as the local community representative demand in the Broken Dream video. Another responsible practice would be the agro ecological practice that can enhance the lives of the locals. By implementing certain regulations on the international business in Vanuatu the Government can improve the condition (Lee, Hampton and Jeyacheya 2015). The policies and regulations must be prepared such a way that it could bring improvement in the citizens’ lives. The government should engage in a business practice that is transparent to its citizens. The tourists treat the Vanuatu people with discrimination and they do not trust them with money (Unctad.org 2014). Their perspectives should be changed towards the locals that can change the inequality that exists.
Because of past history of corruption by the government the local citizens lost their faith on the government. The government also demonstrated negligence towards its people (Jowitt and Railau 2013). The spending of the initial invested money should have been spent in right areas and in right ways. The government should have focused more on utilizing the resources for the improving the condition of the commoners not just of the tourists. The government should have engaged with the locals in effective communication regarding the existing problems that is being caused by the business. They should have monitored the development program in the initial phase. When the financial reports were not getting published the government should have taken steps to document the right data. A freedom fighter of Vanuatu described how people have lost their faith in the government over the years. The government would have ensured that locals are getting job in the cruise and this way they could have good impact on the islanders. The active participation of the government in the development would possibly highlight the internal issues. After the identification the government should have informed the issues to the cruise authority and to the Australian government. The Vanuatu government could also monitor the money flow in order to resist the corruption where the government officials are involved (Tabani 2017). The Australian government on the other hand should check the business activities of the cruise ships on the island. The government could investigate and push the cruise organization to provide the islanders immediately with the basic facilities that the company promised.
P & O Company’s ethical codes and conducts must be evaluated by skilled and experienced professionals. The company’s attention must be drawn by the team about ‘the areas where changes are necessary. The cruise company’s states that their mission statement is to involve in a business practice that values and protects the concerns of the people of the business location. The great start would be building the toilets and clean water system for the local people. The company should not depend on the government for utilizing the money as the past experience was different. A management team of experts would ensure that the money is being spent in the right places. Thus the company can regain its trust and ensure a sustainable business.
The existing laws and business policies must be evaluated by the Vanuatu government with urgency. The government should establish an evaluation committee consists of legal officers to local representatives. The existing legal aspects should be conveyed to the authorities and the local people. If the legal system is not in favor of the islanders the government must takes actions to modify the laws. The government should also employ an expert team that will monitor the cruise activities and the money flow at every stage in order to resist the corruption.
The islanders have to involve more in the organizational practice and increase their visibility to the tourism organizations. The business process should involve the locals as much as possible. The activities that the government is taking should try to include them actively. Their active participation in the government development programs will help the communities to grow. The islanders should take more initiative in micro financial businesses that will gradually make them financially independent.
Reference
Aph.gov.au. (2014). Assessment of the Economic Impact of Cruise Ships to Vanuatu Report. [online] Available at: https://aph.gov.au [Accessed 05 Oct. 2017]
Coles, T., Fenclova, E. and Dinan, C., 2013. Tourism and corporate social responsibility: A critical review and research agenda. Tourism Management Perspectives, 6, pp.122-141.
Jowitt, A.L. and Railau, S., 2013. Vanuatu Judicial Monitoring Systems Report.
Lee, D., Hampton, M. and Jeyacheya, J., 2015. The political economy of precarious work in the tourism industry in small island developing states. Review of International Political Economy, 22(1), pp.194-223.
News. (2013). Vanuatu’s Broken Dreams. [online] Available at: https://www.sbs.com.au/news/dateline/story/vanuatus-broken-dreams [Accessed 05 Oct. 2017]
Port Vila, Vanuatu Holidays | Cruise Destinations. (2017). P&O Cruises Australia. Available at: https://www.pocruises.com.au/destinations/pacific-islands/vanuatu/port-vila [Accessed 05 Oct. 2017]
Savitz, A., 2013. The triple bottom line: how today’s best-run companies are achieving economic, social and environmental success-and how you can too. John Wiley & Sons.
Scheyvens, R., Hughes, E., Pratt, S. and Harrison, D., 2015. Tourism and CSR in the Pacific. Tourism in Pacific Islands: Current Issues and Future Challenges, 48, p.134.
Tabani, M., 2017. Development, Tourism and Commodification of Cultures in Vanuatu. Tides of Innovation in Oceania: Value, materiality and place, 225.
Taumoepeau, S., Towner, N. and Losekoot, E., 2017. Low-Cost Carriers in Oceania, Pacific: Challenges and opportunities. Journal of Air Transport Management, 65, pp.40-42.
Unctad.org. (2014). Harnessing Vanuatu’s Tourism to enable local consumption and exports. [online] Available at: https://unctad.org/meetings/en/Presentation/16_ditcted_010914_unctadTourism.pdf [Accessed 5 Oct. 2017].
YouTube. (2013). Vanuatu’s Broken Dreams. [online] Available at: https://www.youtube.com/watch?v=eMACsi8j3us [Accessed 05 Oct. 2017]
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