Undoubtedly, it would be impossible to manage an annual budget of MOVE (IIS$ for Maldives, thou the monthly revenue of about IIS$ generated solely from tourism. It cannot be ignored here, that the Maldives is facing budget deficits for the past few years. The availability of pork and alcohol (especially in the hotels and resorts) in Maldives, apart from our explicitly beautiful beaches and seas, is one of reasons why we have a competitive advantage, with regard to tourism, over some of the neighboring countries who offer the same services in the tourism sector.
Besides, this has been common practice for the last few decades without any negative implications to the nation. However, due to the recent sudden upraise of religious levels, as it was reported in the news in Maldives on November 15, 2012, the “Parliament accepts bill potentially banning pork and alcohol from resorts” (Robinson, 2012). Hence, due to the social and economic impact of such a move by the parliament, this critical ethical issue needs to be analyzed and addressed extensively.
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This report consists of an introduction, identification of the nature of the problem based on Islamic Shari and impacts of it on tourism, identification of its stakeholders while addressing the interests of them, analysis of the problem based on characteristics of ethical problems in management, followed finally by a commendation and conclusion, along with the references. Page 2 Nature of the Problem Since this issue is directly related to the way of life of Mammalians, as well as the economic wellbeing of the Maldives, the issue can be looked at from two perspectives: Islamic Shari and impacts on tourism.
Islamic Shari on the issue Islam does not ban the sale of pork and alcohol. In fact, pork is mentioned in the Holy Quern in four occasions alone, wherein it is only said that ‘consumption’ of pork is prohibited; in Sarah 2 verse 173, Sarah 5 verse 3, Sarah 6 verse 145, and Sarah 16 verse 115 (Nazi, 1999). However, there is no mention in the Holy Quern, that ‘sale’ of pork is prohibited by Islamic law. Likewise, in Sarah 2 verse 219, Sarah 16 verse 67, Sarah 4 verse 43, Sarah 5 verse 90, and Sarah 5 verse 91, it is stated basically that the drawbacks of alcohol outweighs the benefits of it (Mongol, 2011).
It does not specifically signify that it is prohibited. Prohibited. As for the widths of Prophet Muhammad (buy) in this regard, it is narrated Bin ‘Muar in Isaiah Babushka, as cited by Caruthers (2013), that Allah’s Apostle Prophet Muhammad (buy) said, “Whoever drinks alcoholic drinks in the oral and does not repent, will be deprived of it in the Hereafter” (Caruthers, 2013). Here too, it can be understood it is not expressly prohibited.
Therefore, since Prophet Muhammad (BUY) prescribes what is in the Holy Quern, and the Islamic scholars prescribe what is in the Holy Quern and the widths of Prophet Muhammad (BUY), Islamic scholars cannot ban something that is not expressly prohibited in the Holy Quern. If A=B and B=C, then definitely A=C. It is mentioned in the Quern in Sarah 10 verse 59 that the Prophet Muhammad (buy) cannot decide what is allowed or prohibited. Moreover, if God wanted to ban omitting, why would it not be mentioned in the Quern directly, as in the case of idol worshiping and ‘consumption’ of pork?
It is obvious that God would not have run out of space in the book to include that, or would run out of words to express that which he prescribes on us. Page 3 As such, contrary to popular belief, the banning of the sale of pork and alcohol by the Islamic Scholars is mere speculation. Hence, although the sale of pork and alcohol in Maldives, being ethical dilemma, is opposed by so many of us who believe otherwise, it is imperative that we keep our actions in a way that would yield the greatest economic benefit for our community, so that we could maintain the peace and tranquility of our nation.
Impacts on Tourism Following are some of the impacts that could affect the tourism industry by the sale and/or ban of the sale of pork and alcohol in Maldives. Decrease in Occupancy rate in Resorts In the year 2012 alone, according to the Ministry of Tourism, Arts and Culture (2013), there has been a tourist arrival of 239 million into the Maldives. Therefore, in the even that our law dictates a ban on the sale of pork and alcohol in the Maldives, the tourist occupancy in our hotels and resorts would decrease dramatically.
Most rigorists visit Maldives to enjoy our beautiful seas and beaches, while not giving up on their way of life. If they are unable to enjoy their favorite meals and drinks here in the Maldives, there are other tourist attractions around the world where they provide the same services as us, for much cheaper prices, which they would opt for. Hence, such a decision would decrease the occupancy of our resorts, which would in turn, reduce the taxes paid to the Government by the resort management, which again would impact on the overall economy of the country.
A large part of our country’s development comes from Foreign Investments. Most of our resorts, although are seen by the public as belonging to Mammalians, are actually invested and backed by foreign investors – sometimes as partners and sometimes as franchises. This is one of the reasons why our country has been developing so rapidly in the past. Page 4 However, discontinuation of selling pork and alcohol in Maldives would have a significant negative effect on the revenues generated by these foreign investments. Therefore, it should be understood that no one in his right mind would fight for a losing battle.
This means that no investor would be willing to invest their hard- earned money in a failing industry. Hence, the proposed ban of selling pork and alcohol in the country would be devastating for the economy of Maldives. As discussed above, the banning of the sale of pork and alcohol would reduce the popularity of the Maldives as one of the most luxurious holiday destinations in the world. This would result in less and less tourists opting to visit Maldives to spend their holidays, and less tourists mean less revenues for the resorts.
Like discussed earlier, reduced tourism revenues would mean reduced tourism taxes for the Government. Again, this would lead to the deficit of the country’s budget to extend further. It cannot be ignored that fisheries and agriculture in the Maldives alone would not be sufficient to balance such a huge budget required for the enhancement of the country’s infrastructure. It can be argued that not all of the tourists who visit Maldives come to eat pork and drink alcohol. But it should be considered that they would not want to give up their lifestyle Just so that they could spend their holidays here in Maldives.
There are other holiday destinations which offer similar service and share similar resources as us. Therefore, it can be understood that our tourists would opt to take up other popular replica holiday destinations such as Mauritius and Boar Boar. As have been discussed above, again, the decrease number of tourists visiting Maldives would reduce the revenues made by the Government, as well as the local workers working at the resorts. If reduced, this will have a devastating effect on the economy of Maldives.
Page 5 Stakeholders and their interests There are two categories of stakeholders for every business: (1) Market Stakeholders, also known as Primary Stakeholders), and (2) Non-market Stakeholders, also called Secondary Stakeholders (Ann & Kook, 2011). Employees are directly affected by a firm’s decisions. In this case, if the resorts hotels and the likes in the tourism industry decide to discontinue the operations of their bars, and make redundant, the employees specialized in preparing pork bacon dishes, this would be a huge blow to the Job securities and personal lives of these employees.
When the employees are laid off, it is not these employees who are affected by such a decision, but the entire family of the employee. Therefore, being exposed to the western way of life, it is understood that these employees would not go down without a fight. If the employees are threatened, in this regard, they might cake up protesting against the resorts and their owners, which would give these owners and their resorts a negative impact in the international market.
Such decisions and actions from the employees would reduce the number of tourists willing to visit the resort – and again – it will have a negative impact on the economy of the country. Local Communities Local communities play a very important role in coercing businesses into doing things their way. In the Maldives, these communities have suddenly grown in numbers, and are applying pressure onto the Government as well as businesses to cake decisions in accordance to what they believe is the right way to do it.
Some of these communities include local religious groups who claim to be trying to bring true Islamic values’ into the community. However, since there are discrepancies between the teachings of these groups, it is difficult for the Government as well as Businesses to decide on which group to follow – if they are going to heed their demands. Page 6 Government Government is one of the biggest stakeholder in the tourism industry. Like it has been said in the beginning, the larges portion of the revenues received by the Government come from the tourism industry.
Banning of pork and alcohol in the Maldives would result in a considerable decline in the number of tourists visiting Maldives. Since taxes are collected for the services provided by the tourist resort managements, decline in the number of tourists means a decline in the amount of taxes they need to pay. Any impact on one’s sources of income, as well as the Government, would have a direct impact on the General Public of any country. A reduction in the revenues generated by the tourism industry would have a lasting effect on our budget, Government, as well as the public.
Although, such changes would have little or no effect on the rich, it is the middle-class and the poor who will suffer the consequences. Banning of the sale of pork and alcohol in the country, although thought by many to have a positive effect and no negative effect at all on the public, would actually be very prominent on the lives of the General Public. Firstly, it would reduce the overall revenues of the Government. This would result in the Government taking the savings and other investments made by the public into their savings like pensions, in order to balance their budget.
People would have worked their entire lives to take a break at the end of their working age. But if the Government takes this away from them, what would they have to live on? Page 7 Analysis of the Problem Following are analysis of the issues based on the characteristics of ethical problems in management: Extended Consequences As stated by Ann and Kook (201 1), the results of managerial decisions and actions go far beyond the intended first-level of consequences. In fact, these results spread through out the community like wildfire.
Since the impact of such decisions is beyond the control of these managers, they need to seriously weigh their decisions before making them (Ann & Kook, 2011). Whoever believes that banning pork and alcohol in the Maldives would bring about a positive change in the country, is in for a huge surprise. As we all know, it will only increase the suffering of the families who have been dependent on the income generated by of or more of their family members working in the resorts. In addition, the banning of these products does not mean that the sale and consumption of these products would be discontinued in the Maldives.
It will continue underground, and could even spread to the locals as a way to retaliate against the people who brought about such a drastic change. Multiple Alternatives Most ethical issues do not come as dichotomous: with yes’ or ‘no’ choices (Ann & Kook, 2011). There are other alternative outcomes that could be worse if a decision is made in haste. As such, the decision to ban pork by the Parliament must be considered from all angles before such a decision is made. A vote can be taken Just by asking ‘Do you think banning pork and alcohol in Maldives would bring a positive change to our of the issue if answered only by a yes or a no.
Therefore, other alternatives such as increasing the prices of the products that contain pork and alcohol could be considered instead of downright banning it. Raising the prices would give the consumers a chance to think whether or not they really want this product – which would generally result in a reduction in consumption, and therefore a reduction in sale. Ultimately, it might even be stopped entirely. Page 8 Mixed Outcomes Managerial decisions are generally thought to be antithetical – meaning that an unethical decision can be made in order to achieve a better alternative (Ann & Kook, 2011).
For example, it is okay to bribe some members of parliament to vote for the banning of pork and alcohol, in order that the ‘Psalmists’ in our society can convince a rage number away from the sale of these products. Some might argue that it is unethical to sell pork and alcohol, but might agree to do it so that the economy of the country can be kept afloat. Uncertain Consequences “It is commonly thought that ethical issues in management are free of risk and doubt, with a known outcome for each alternative” (Ann & Kook, 2011). However, it is known that this is not practical.
In fact, this was the case when the Government set a price ceiling on the rate of dollars. It was intended that such a decision would bring the demand for dollars into an equilibrium. But the actual result was that it created a lack market for dollars, and the prices of dollars never reached the expected rate of the Government. Likewise, the banning of pork and alcohol would not entirely stop the selling of pork or alcohol. Instead, it could result in another black market being formed where both these products are sold at a higher price than now.
This would also, affect the tourists who visit Maldives, who might even decide to seek other alternatives. Personal Implications According to Ann and Kook (201 1), it is commonly believed that ethical issues in management are largely impersonal, and that these decisions are made free from arsenal touches. However, every decision being made is, to some extent, defined by personal implications. The parliament member who proposed to ban of pork and alcohol from Maldives, may have a family member or relative who was taken from him as a result of an addiction to intoxicants.
This decision made by these people does not accurately Page 9 describe the true intentions of the decision-makers (Ann & Kook, 2011). Therefore, there is no saying if or not the banning of pork and alcohol in the Maldives is in fact related to some of us believing that it is prohibited in our religion. Page 10 Recommendation and Conclusion Based on the above discussions, it is recommended that the sale or pork and alcohol not be banned in the Maldives. Firstly, it affects the revenues generated by the Government, which is directly related to the bread and butter of the country.
Should be ban the sale of these products; we would not be able to generate adequate funds to balance our budgets. Next, the banning of pork and alcohol may not entirely stop the sale of pork or alcohol. Instead, it could result in another black market being formed where both these products are sold at a higher price than now – which could Orca the tourists to seek alternative service providers. Finally, the proposition to ban pork and alcohol from the Maldives by our Islamic scholars may not be true reason as to why they are coercing for this change.
This may be a way for some of our people to get back at the Government for some decision they had made in the past. What we see now may not be the entire picture there is to it. Hence, apart for the above reasons, and especially because of the negative economic impact this decision would have on the country, it is recommended that this law be rejected immediately. Page 1 1 Ann, H. J. , & Kook, T. K. 2011). Professional Ethics. Clangor Daryl Insane: Open University Malaysia. Central Intelligence Agency. (2013, September 10). The World Fastback.