CARLSON COMPANY

 

Profit & Solutions Management Research Publication Series

Researched & Written by Deb (Debadip) Bandyopadhyay

 

Carlson is a privately held company headquartered in Minnetonka, Minnesota, United States. Its primary subsidiaries are CWT, a travel management company, and Carlson Private Capital Partners, a family office that manages the wealth of the owners. It previously held interests in hotels, including Radisson Hotels, and restaurants, including TGI Fridays. The company is owned by Barbara Carlson Gage and Marilyn Carlson Nelson, daughters of the founder, Curt Carlson.

Enhancing the welfare and interests of the communities being served is one of the responsibilities that every organization has in any given the environment that it establishes itself. A consideration of expanding luxury Regency accommodations and services, in 2006, to Costa Rica is a decision that would put Carlson Companies in a dilemma of solving a social problem that the community was facing. The surrounding area of the resort was facing a disreputable issue of child trafficking and prostitution, and despite the venture being profitable it is a dilemma that the company should address as it prepares to approve the project. This is a position that is supported by the signed Code of Conduct, which aims at protecting vulnerable Children in relation to sexual exploitation being carried out in Travel and Tourism (Linde & Eisenbeis, 2011). 

It is evident that despite the existing challenges, there are associated with the decision of developing the hotel in Costa Rica. They include:  A lucrative business opportunity is presented in building the hotel. It is the opportunity of serving as a role model and positive force in the travel and tourism business. An opportunity of demonstrating the feasibility of the project to others in the industry and the rest of the world upon meeting socially responsible hotel management challenges. Training hotel employees will empower them in monitoring and acting against any form of children exploitation in Carlson hotels. Carlson Company will also experience an increase in revenue with the commencement of the proposed project. 

Different concerns have been raised in relation to the enforcement of the code and the feasibility of suggested project of Carlson’s Regent resort. One of the concern has to do with the full enforcement of the code upon the completion of the resort, a case whereby it is hard for Carson to guarantee the needed children protection within the hotel. The second concern is associated with the implications of the Marriott child sex trafficking case, which happened in a similar environment that Carlson is seeking to establish itself in Costa Rica. A third concern is the possibility of Carlson’s Regent Hotel being associated with child sex trafficking by the international community on the basis that the resort is located in Costa Rica. Finally, there is a concern of the resort failing to meet the obligations established under the Code. This would lead to a situation whereby Carlson is risking public censure, mainly from the monitoring body of the Code (Linde & Eisenbeis, 2011).

In trying to maximize the highlighted benefits of the project and addressing the above concerns, the following are some of the critical recommendations that should be adopted for the success of the project implementation to be realized.  Carlson Company should continue showing commitment towards the implementation of the code as it is not an easy task to undertake. The hotel resort should commit towards the suggested measures, through the determined Code and work-related policies, in creating the environment that is intolerant with the issue of child sex trafficking. This is an effort that will sustain its reputation as an international company that is respected.  Carlson Nelson should carry out a comprehensive analysis of the risks associated with the decision of proceeding with the project. Effective implementation of the stated Code of Conduct within the hotel will reduce any chance of facing litigation because the issue of child molestation in the company’s hotels will be dealt with in a more appropriate way.

 

References

Altinay, L., Saunders, M. N., & Wang, C. L. (2014). The Influence of Culture on Trust Judgments in Customer Relationship Development by Ethnic Minority Small Businesses. Journal of Small Business Management, 52(1), 59-78.

Buck, W. F. (2015). A Competitive Business Ethics Simulation Game. Developments in Business Simulation and Experiential Exercises, 42.

Li, C. L. (2009). Managing business relationship development: A cross-cultural perspective. Portuguese Journal of Management Studies, 14(2), 123-148.

Linde, R., & Eisenbeis, H. R. (2011). The Carlson Company and Global Corporate Citizenship: The Protection of Children in the Travel and Tourism Industry. Case Research Journal, 31(2): 1-11.

Lovelock, C. H., Patterson, P., & Wirtz, J. (2015). Services marketing. Frenchs Forest, N.S.W. Pearson Australia.

Margolis, J. (2008). Why companies fail. Employment Relations Today, 35(1), 9-17.

Wirtz, J., Chew, P., & Lovelock, C. H. (2012). Essentials of services marketing. Singapore: Pearson Education South Asia.

 

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