TABLE OF CONTENTS After studying this chapter you should be able to:
critically discuss the need for a formal approach to business ethics and ethical practice.
analyze variations in morality and ethics.
critically analyze ethical values and behavior in the timeshare business.
identify and evaluate ethical approaches to selling.
From the early beginnings of the timeshare industry, industry associations have sought to develop codes of practice covering business ethics in the industry (ARDA, 2002a). In the United States the National Timeshare Council began to formalize a code of ethics in 1979. This code was further strengthened in the early 1980s. After the merger of several regional bodies in 1998, Organization of Timeshare Europe (OTE) developed codes to cover firms operating particularly in the European Union area, but also resort developers and operators in the European geographical area (TRI Consulting, 2001). These codes have been developed for two reasons. First, there are strong commercial drives for branded, reputable firms to counter the negative image of some practices of early resort developers. Negative publicity for major corporations is costly because it has a negative impact on the business as a whole. Also, the cost of legislation incurred by customers wishing to break contractual arrangements because of deceitful selling practices adds considerably to total costs. In addition, it is just bad business to enter into a relationship with reluctant customers. High levels of customer dissatisfaction can be avoided if customers enter timeshare arrangements willingly, having made an accurate, informed decision.
Second, for most...
