Tag Archives: CMP

‘Tis the Season: Ethics of Gifting & Entertaining

Originally published Meeting Today Blog

'Tis the Season: Ethics of Gifting & Entertaining

Prologue: Picture this … it’s the season of gift giving and of year-end hotel contract deadlines. I’m working feverishly to finish a number of complex hotel contracts for clients before everyone takes time off for the Christmas holidays. My spouse brings a box from our mail room to my home office.

I ask, as I continue to write contract provisions, from whom the box was sent, thinking it must be from a family member or friend. When the sender is mentioned—a salesperson with whom we are in difficult (politely said!) negotiations—I loudly say “DROP IT!”*

In one of my favorite films, Defending Your Life, we see that after death, one’s ‘first stop” is a place that looks remarkably like Epcot Center. There, we are tasked with watching videos of our lives and “defending” our every action. It has a wonderfully funny tie-in to our industry with scenes about who gets the “better” hotels with the “better” turn-down amenities as a result of what appears from our lives. Chuckling as I write this—thinking not unlike who gets the upgrades in real life, huh?

The film is amusing, down-right funny (think whether you want to be seen by important people as you slurp your linguini in a restaurant) thoughtful and insightful.

Differently staged and with similar intent, is The Good Life, a TV production that so fascinated me, I now have a desire to recommend viewing episodes in preparation for ethics discussions in classes I teach and programs I facilitate. Is there a “good” place or a “bad” place after we die? Is it like Epcot Center? I don’t know. I do know that my actions after receiving the box would have to be defended.

The point? Many of you will give or receive gifts or entertain or be entertained by those with whom you are doing business, have done business, referred business or one day may do business. What goes into your thinking as you chose to whom to give or entertain, and for the recipients, to accept a gift or invitation or not?

How much would the potential of “defending” your actions—now, to an ethics committee or an HR or other officials in your company or professional organization—play in your choice of what and how much you gift to, or accept from, someone?

Research: In preparation to write the initial blog post in the October 2018 newsletter and for this post you’re reading, I did extensive new research: conversations with current and former hotel executives, industry attorneys, and EIC and EIC-member organizations’ representatives; reading articles about our industry’s and others’ ethics practices; reading hotel companies’ ethics policies [highly recommend and easily found with a search**]; and asking, via social media for those interested in responding to questions about industry ethics to contact me. A compilation of those responses can be found here.

I also asked questions of three industry recruiters—MeetingJobs, Searchwide, and Vetted Solutions. The responses from their CEOs are in this section of the December 2018 Friday With Joan newsletter.

Preview: I was … well, read it and you might figure out my response after reading on.

And once read, please answer the Friday With Joan poll questions.

Analysis: EIC, our industry’s umbrella organization, was unable to tell me which of its members has an enforceable code of ethics and/or conduct. In my research I learned that of those who do, two are NSA and NACE. I know that MPI, PCMA, and ASAE do not have enforceable codes, although MPI did at one time. ASAE has a separate, enforceable code for those who have achieved their CAE—Certified Association Executive—designation; the code for all other members is aspirational.

Those who have achieved their CMP—Certified Meeting Professional—are bound by this code, which is worded much like the codes of many of the EIC organizations that have codes of conduct or ethics.

(Use this link to EIC members; go to their sites to read the codes. Even if you are not a member of one of these organizations, it is likely you will do business with someone who is).

I verified with colleagues with whom I served on the then-CLC Board some years ago that our umbrella organization formerly required an enforceable code of ethics to be an EIC member. Now, it is asked that a code be submitted with the membership application, but it is not required for membership.

I confirmed that HSMAI, for example, does not have a code of conduct or ethics.

I imagine others do not as well.

Of those with enforceable codes, I was told the main charge of an ethics violation is the use of a certification when it has not been earned or renewed.

This was believed, by those with whom I spoke, to be a belief that few are violating the codes.

And now, ‘tis the season of gifts and entertainment. Many feel valued if they receive a gift or an invitation. Those on the receiving end believe it is perhaps their due for the hard work they have performed. Perhaps the invitation to an event is viewed as an opportunity to network even if they have no business to offer; the receipt of a gift, seen as one of friendship beyond the business relationship.

How do we decide when it’s appropriate to offer and accept gifts or invitations? And more, when is it appropriate to flaunt these gifts and entertainment on social media for all to see and perhaps question if a code of ethics—that of an employer or industry association—has been violated?

During this season of giving, it is also the season of year-end business and for some independent meeting planners and others who work for commissions, a season of meeting a deadline before commissions are lowered by some hotel companies. To that, many are posting that they are going around the “system” and finding ways to receive what they believe is their “due”—a commission amount that is greater than that announced by hotel companies. More details here and here.

In my research again, I was told by many current and former hoteliers and others that this practice will face consequences. This was stated to me, and I’ve agreed to, as I do with many, keep the confidence of the person who provided this input:

“By encouraging hotels to breach the requirement that they adhere to brand standards, or to hide the payment in some fashion to deceive, planners need to evaluate whether they could potentially be liable for interfering with the contract or if they are perpetrating some kind of fraud. Even more disturbing however is that this takes the profession back not just a step, but a mile.

“It seems a lot like the concepts that planners finally overcame when some were asking for blind commissions. If the planners are handling the commission in this fashion, they need to be mindful that are acting on behalf of the group [for whom they are doing business].

“They need to be concerned about this being a potential violation of the group’s code of ethics.”

And as noted above, it may also be a violation of the brand’s code of ethics.

From everything I see and hear, from the justifications in classes and other conversations and those in social media, and from the many reports in the news and the investigation of us by the U.S. Congress, I think we are moving into even more dangerous territory in and outside of our industry. Many find ways to justify their actions in the request for and acceptance of gifts, perks, and entertainment: we’re underpaid, under-appreciated, work long hours, need to network to find a new job, etc.

Suggested Actions to Help Avoid Unethical Gifting Situations:

  1. Read your employer’s or client’s or business partners’ code of ethics.
  2. Share your code with those with whom you are doing business.
  3. Agree at the start of a business relationship, even one that has a long-friendship behind it or becomes a friendship, by what ethics you will together abide.
  4. Determine how your codes guide you for tradeshow drawings, invitations to events, giving and receiving gifts and attending hosted-buyer events. If the codes are not that specific, discuss how they can be.
  5. Provide examples in the comments or to me at FridayWithJoan@aol.com for posting without attribution examples of how we, as an industry, are ethical or how we can be more so. Share the ways we can improve together.

May the light of this season and the hope of the new year bring our industry and us individually to new thinking about how we do business and how we want to be seen.

*You wanted to know what happened, right? I called the client immediately and was told that they too had received a box.

Neither of us had opened it. I asked what we should do.

It was agreed I’d call the salesperson and say that we could not accept the gifts.

I was told that these were not practical to return. The client agreed that they would use them in an office gifting event and that I could dispose of the gift by donating it. 

**You will find, in your search, codes for how hotel companies deal with their own vendors, customers and staff. The codes are enlightening.

Editor’s Note: The views expressed by contributing bloggers are their own and do not necessarily reflect the opinions of Meetings Today or its parent company.

Related Reading From the December 2018 Edition of Friday With Joan

Click here to view additional content in the 12.07.18 Friday With Joan newsletter.

Our Industry’s Reputation and Yours Are at Stake: Help Is Needed!

Originally published Meetings Today Blog

Our Industry’s Reputation and Yours Are at Stake: Help Is Needed!

When the meetings industry first introduced the CMP—referred to as “Certified Meeting Planner”—it was to help ensure that those who planned meetings be considered professionals.

As the program evolved, it became possible for suppliers in our industry to be tested and to receive the designation, which as a result was changed to “Certified Meeting Professional.”

For most of the years I’ve been in this industry, I’ve questioned the business practices that are considered “standard” or “normal” and sought evidence of those practices being ethical and professional.

I’ve looked to other professions—accounting, medicine, law, journalism, association management, counseling, among them—and saw that there were standards of conduct that must be adhered to in order to maintain one’s license to practice in that profession.

No such thing exists for planning, sales, or convention services in our industry.

In preparing to write this blog post—one of two (or more) that will look at practices and perceptions of those of us who plan and supply services and venues for meetings—this part of the definition of “professional” struck me:

characterized by or conforming to the technical or ethical standards of a profession.”

In fact, in the 9th Edition of the EIC Manual,  subtitled “A working guide for effective events, meetings and conventions”, there is no separate chapter on “ethics.”

Instead, it is included in “Domain J: Professionalism” where “Sub Skill 30.01” is “Demonstrate Ethical Behaviour.”

Relaxing Standards in the Meetings Industry

APEX, The Accepted Practices Exchange Initiative, and the CMP give us the technical “standards” of the profession. To be a member of the Events Industry Council (EIC)(founded in 1949 as the “Convention Liaison Council,” then renamed “Convention Industry Council”), it was, for years, a requirement to have a code of conduct or ethics.

Now, it is required to submit a code but it is no longer a requirement for membership. No one could tell me when and why the requirements for membership changed.

In talking with staff of a number of EIC member organizations, I learned that some don’t have codes of conduct or codes of ethics at all.

And if they do, many, like that of the American Society of Association Executives (ASAE)are, for all but Certified Association Executives (CAE), aspirational. Only for CAEs is there an enforceable code of conduct referred to as “CAE Standing Rules and Policies.”

If one has attained and maintained the CMP designation, one agrees to abide by the CMP Code of EthicsBut (and I do mean “but” not “and” as improvisation teaches) it is rarely used to strip someone of their CMP for unethical behavior.

I was told by EIC that the ethics complaints are almost always about a person using the designation who has not been attained or maintained and not for behaviors that violate the code as I believe those in the stories below do.

Who’s Enforcing Our Industry’s Ethics Policies?

In e-mail exchanges and voice conversations with staff members of EIC member organizations, there seems to be little done now if there are ethics violations.

MPI, which used to have an enforceable and lengthy code of conduct, changed it years ago to the Principles of Professionalism for which there is no reporting body.

It seems, an already existing program—MPICares—was created to advance service projects and report and examine issues of sexual harassment and ethics violations.

(Interestingly, featured in the news recently and also reported on this week by Meetings Today was the MPI Foundation Executive Director who has been accused of a crime, who has since resigned from her position but claims innocence).

There is a fine ethical/legal line that I am sure will be sorted out as this proceeds.

Why write now—again—about these issues?

Why I Choose to Write About Ethics

There are multiple reasons:

1. I’ve been asked repeatedly what I want my legacy to be. I hope that a) it’s that we learn to create interactive, well-conceived and executed meetings with no more theatre or schoolroom sets, and really, b) we all agree to operate in a manner that reflects well on us individually and on our profession which, I believe, means working ethically.

2. Colleagues and strangers have for years and continue to contact me to sort out ethical issues. Most recently, some have discussed the quid pro quo of booking meetings: suppliers want their numbers to gain their bonuses or keep their jobs. Planners or others who sign meeting contracts are often willing to sign multi-year or exaggerated room-block contracts or make up fake and contract meetings to “help a seller friend” achieve their goals to earn more money or bonuses, knowing full well that what they both are doing is not ethical and may, in fact, be illegal.

Strangely, the example most often cited as unethical behavior in our industry is of sellers who offer and planners who accept familiarization (“fam”) trips (or hosted buyer invitations) for destinations and/or properties the parties know are not in the pipeline for use, justifying that “someday” they may work elsewhere or that “someday” they may convince someone to book the city or site because they were once there.

Forget that the wining and dining and gifts that come with many of these trips may have dollar values above what one’s employer’s code of ethics note is permissible.

Real-Life Examples of Questionable Behavior

Over the many years I’ve worked in the industry, I’ve seen the results of unethical behavior and the cost to organizations as a result.

Here are but a few specific examples, never reported to the CMP Board, in which planners and suppliers who were CMPs (or in one case a CAE) were involved.

Story 1: Full-time planners at an organization created their own side company to receive commission on meetings they booked for their employer. The commission agreements were inserted after the contracts were signed. Adding to the behavior, the planners often used the CEO’s electronic signature to sign these bogus contracts.

The hotels? They got the numbers they wanted as did the sales people who received their bonuses. The planners? Perks for getting the business signed and an expectation of commission.

Though these planners were eventually fired when an audit uncovered the fraudulent meetings, I know the planners were hired by others because, by law, a past employer cannot ask about such behaviors. Because nothing was reported to the CMP Board, even the CMP designation wasn’t stripped.

Story 2: An organization’s CEO, a CAE, and planner, a CMP, booked a future meeting with a vastly inflated room block. The contracted block was not remotely achievable given the group’s pattern and expectations. The hotel salesperson, if history had been submitted by the group or checked by the hotel, would have questioned the numbers.

What did the CEO and planner receive for contracting this meeting? Super Bowl tickets and other perks.* What happened to the organization? They paid more than $100,000 in attrition and almost went bankrupt. The salesperson? Bonus and promotion based on the nights booked even though they were never actualized.

[Yes, this is a discussion for another time—how our industry sets up conditions for incentives for salespeople. It was a conversation, in research for this blog that surfaced with many hotel personnel.]

*Both were eventually fired though no charges were brought. The planner went on to tout expertise in the job and was praised by suppliers for good work.

Story 3: A planner wanted to help a supplier partner who was having trouble booking enough business to meet their year-end goals. The planner made up multiple meetings that were not on anyone else’s radar—basically fake business.

The planner, a CMP, received trips and other perks for themselves and for their family. The supplier? Made their numbers and received a bonus. The organization? Hefty legal fees, some cancellation fees, and a new meeting created to mitigate what would have been additional millions of dollars in cancellation fees.

Uncovered in an audit and review of emails, the planner was fired.

When the action was reported to the hotel company, despite their ethics’ code, the salesperson remained on the job.

Story 4: A planner needed promotional products (aka “tchotchkes”) for a meeting.

When ordering it was not specified that the items could not come from China—just that the price had to be “the lowest.” The lowest priced items were made in China and were ordered by the promotional products company.

When received, the planner told (not asked!) the supplier to remove all labels on boxes and other packaging indicating that the items were from China. It was the supplier who came to me with the story of the issue and the dilemma: does one report this action to an employer or to the CMP ethics review board and risk losing a good client or comply?

[I know the outcome—I’ll let you suss this one out and consider what you’d do].

There are many more situations I’ve seen and about which others have told me. Included in the current issues are those about third parties who receive commissions and about which I wrote previously for a Friday With Joan newsletter and blog post.

I was told directly by someone doing this that they and others are going to the franchise properties’ owners and demanding the higher commission and in some cases getting it.

In talking with an industry attorney, I was told that in an audit, when discovered, the franchisee could be in jeopardy.

Among stories known to many are those surrounding what U.S. government planners faced over one particular Las Vegas meeting that was reported in national news and by our industry’s press. As a result, all of our industry and all meetings were made to look like boondoggles.

Advancing Integrity in Our Industry

Where do we go from here?

If we are to be thought of as professionals, regardless of our job titles or in which industry segment we work, is it appropriate to look more closely at behaviors?

Consider, as you chew on the stories noted above and your own experiences, these questions:

  • What do you do when a client or employer asks you to do something that violates a specific written code or your own moral compass?
  • What guides you ethically in life and in business?
  • When you heard Jiminy Cricket say “Let your conscience be your guide,” did you consider what that meant and what to do if your conscience and “standard practice” were in conflict?

Will you help me and help our profession? Either in the comments section below or in the comments area in the sidebar interview with Paul A. Greenberg who is a professor of journalism and was in our industry, or to me personally at FridayWithJoan@aol.com, write and tell me what guides you ethically. Answer the poll questions.

Read the codes of ethics for the industry segment to which you belong. And watch for the continuing discussion based on input from a variety of industry professionals in the next weeks about hiring and interviewing with ethics in mind, specific language and reaction to that in the CMP Code, and more.

If we can’t get this right, what then is the point of pretending to be professionals?

And Just One More Very Important Thing!

November 6, 2018, is the U.S. midterm election.

I, and those affiliated with Meetings Today, encourage you to vote. There are issues on ballots throughout the U.S. that will impact meetings including taxes and initiatives important to how and where we do business.

There are elections of individuals who you may want to question at town hall meetings about their stands that impact your particular employer or clients and their meetings.

Having written about what happens when laws are passed that cause groups to reconsider where their meetings are held, it’s a time to be more informed. For those who are not U.S. citizens, we encourage you to vote in elections of your own countries.

Editor’s Note: The views expressed by contributing bloggers are their own and do not necessarily reflect the opinions of Meetings Today or its parent company.

Related Reading From the October 2018 Edition of Friday With Joan

Click here to view additional content in the 10.05.18 Friday With Joan newsletter.

Marriott Planner Clash: What’s Commission Got to Do With It?

Originally posted Meetings Today Blog

Marriott Planner Clash: What's Commission Got to Do With It?

In Houston and Puerto Rico people are still homeless and without power. Though I have no statistics, I imagine some of those people are in the hospitality industry.

Flu is spreading around the United States and killing people; many cities are without shots or medicine or IV bags, the latter made in Puerto Rico.

Among those getting the flu are workers who don’t get paid sick leave and some, no doubt, work in our industry or the wider hospitality industry.

There is talk of war with North Korea that few take seriously.

Housekeepers and others in hotels are demanding “panic buttons” in cities where they are not currently mandated because of the attacks that are real and were documented in Time magazine’s “Person of the Year 2017: The Silence Breakers” issue and also noted in the January 2018 edition of Friday With Joan.

Wildfires, drought, floods and other natural disasters; refugees crowded into camps; the United States proposing to deport hundreds of thousands of people among whom we are certain are people who work in hospitality jobs.

All of these people and issues occupy my thinking.

With all that as a backdrop, let’s examine the extensive industry energy and conversations that are focused on Marriott’s reduction of commission from 10 to 7 percent for those who work solely or partially for commission from hotels.

It’s a greater amount of energy than I’ve seen directed toward the other issues.

First, some background and a disclaimer: I founded my meeting planning/consulting business, Eisenstodt Associates, LLC, in 1981 after working for an art museum, then full-time part of the year for a not-for-profit in D.C.

During off-time from the not-for-profit employment, I did contract meeting planning work for organizations in and outside D.C., my home base.

In all but one instance since then (when a client had already negotiated a rate with a rebate that would off-set fees from a third party and then hired my company), I have been paid hourly or daily or project fees from clients.

How did I determine what the source of payment would be?

When I started Eisenstodt Associates, LLC, I talked with others—there weren’t many “third parties” or “independent planners” in 1981—and all, except one, with whom I spoke said they worked on a fee-for-service payment system.

It was a model that made sense to me and didn’t present a conflict of interest, which proved to be a smart move in light of recent (and previous) events.

This blog post is not intended as legal or business advice.

It is opinion based on 40+ years in our industry and additional research. It is also based on my experience testifying as an expert witness in industry disputes and in a dispute in which I was directly involved, a situation where, had I not been paid fees versus commissions, there might have been a very different outcome.

Here’s that story, illustrative of the commission versus fee dilemma:

In 1984 I was a defendant in a case that involved a canceled and relocated meeting, the site selection and contract negotiation for which were done by an in-house planner at the time the site was selected. The judge found that, though the suit was against the group, me individually and my company, I had nothing to gain because I was not receiving commission or higher commission as a result of the move of the meeting.

Thus the cases against me and against my company were thrown out.

Because of that and other experiences, I have, for years, on the issue of commission paid to third-party/independent planners or companies from hotels and other industry suppliers, which is certainly not a new concern for our industry, engaged in discussions.

Most recently, on the issue of the Marriott commission structure change, the discussions have been across social media, in interviews by numerous industry publications—including Meetings Today for which I write regular blog posts that are featured in a newsletter—and in conversations with people on different sides of this issue including various third-party models, attorneys, hoteliers and DMOs.

In fact, the discussion around the “agency” model of commission pay versus fees has been one on the list of futurists and others as a model that is not sustainable.

It even contributed to the demise of many travel companies.

AND I get it—the anger and frustration … why a cut in one’s projected income is a blow, in any situation. And while I understand the anger, I think that we are long overdue in discussing the model and even more overdue in showing how our segment of the hospitality industry has changed and why the commission model as we’ve known it may be outdated.

Our industry has no standards of how one is to be paid; it has been left to individuals and their clients to figure out. Right, we cannot discuss specific fee-setting amounts. But the equity or appropriateness of commissions for varied levels of services is verboten except in private conversations … in hushed tones especially when it is verified that someone will pay higher guest room rates or other costs because others received commission. Thus we each negotiate the scope of work, time and fees with clients directly.

While the voices are loud over a change in commission for some, I also know that no one has fought for those of us who work for fees—who conduct training (being told that instead of an appropriate honorarium we should “do it for the exposure”), select sites, design meetings, negotiate contracts and provide site management—to be paid what we’re worth by clients versus depending on room pickup to determine what we earn.

Though I know I’m not alone, it appears others that share my experiences and views on the problematic commission payment model for third-party planners are a minority.

Or at least, other than in a few examples I’ve seen, many are not speaking up.

My objections to the Marriott commission brouhaha and boycott center on these key points:

1. Not all third parties are equal: I’ve seen the work of many who do site selection only and in fact, do only “lead generation,” and who are not providing other services such as contract negotiation, meeting management, on-site management, etc.

I know that not all third parties have contracts with their clients and thus are not protected or even smart in how they work. I know because I’ve seen it—and been told by many—that people are in for a quick buck for even just recommending a property and expect to be paid and have found that being paid by hotels is a far easier way than doing more, such as contract negotiation.

(An incomparable example from years ago on an industry listserv: planners would post asking for recommendations of properties and third parties would copy the request, put it on letterhead and send to hotels as if it were their client and expect and receive commission for the lead generation).

Of course, it’s not all and yet, it seems to be a growing number. Without standards of operation or adherence to industry ethics policies (see point 5), there is no regulation on how people operate.

2. Legal and tax implications: As noted above, in the lawsuit in which I was involved as a defendant and in ones in which I’ve testified, commission can clarify or cloud the outcome. If it appears that one is making more as a result of a commission because a meeting cancels and moves or one hotel is selected over another because the commission is greater, it can if not in fact, in appearance, be a conflict of interest.

In talking with a third party that accepts commission and then rebates some or all to the client, I was curious about the tax (and ethical and legal) implications for both parties. The initial recipient of the (usually) larger amount is taxed on that amount. Those to whom a portion of that amount is rebated, are taxed on the lesser amount.

It’s not “free money” in any case.

In talking with Josh Grimes, Esq., an attorney on the group side for our industry, he said: “In terms of the boycott, I suppose that planners can do what they want.

“But if they are going to ignore Marriott [properties] in favor of other properties that pay higher commission, then planners may have an ethical and legal (i.e., remember Sarbanes-Oxley – SOX – accountability rules?) obligation to let their clients know that they aren’t going to evaluate properties solely on the basis of what’s best for the client, but that planner compensation will also be a factor.

“The client ought to consent to this different way of sourcing properties.

“I remember the days when I did SOX presentations, when planners rejected any notion that some might choose one property over another based upon the amount of commission paid. I was told repeatedly that professional meeting planners would never let commissions be a factor,” he added. “It appears that something has changed.

Lastly, I fear that with the deadline of March 31, 2018, for contract signing (when Marriott will pay less commission to some third parties than they had been), there will be rushed, bad contracts. Is there anyone still in the industry who doesn’t know what happens when contracts are rushed?

“Do-overs” are not easy when the terms are not well vetted.

3. Professionalism: Some have said that by paying some third parties less it means we are not well-regarded as professionals. C’mon! We have, sadly, never been.

And though platforms of various organizations have demanded we work harder at getting a “seat at the table”, by demanding commissions versus the seat, we are demeaning ourselves into commodities not professionals.

4. Boycotts: When a number of groups, including some of the clients with whom I work (and PCMA pre-emptively for Texas), said they would boycott cities or hotel companies or cancel meetings over the anti-transgender aka “bathroom bill” or other like civil and human rights policies and laws, there was much pooh-poohing that we were hurting cities, hotels and workers who were most impacted.

Somehow the “Say No to Marriott”—or #SayNotoMarriott if you’re on social media—boycott movement that is entirely about finances is acceptable.

In the case of the principle of cutting commissions to all but a few companies, it may in fact be principle. It is not being positioned as such.

5. Ethical implications: One of the organizations at the forefront of the protest about this change in commission amount does not have an ethics policy for its members though I, a past Chair of ASAE’s Ethics Committee, offered to help write one and the offer was refused (If I’m incorrect and one was created, my apologies. I couldn’t find it. Please provide the link in the comments).

Excerpts from major meeting and event industry organizations’ ethics policies could impact how the boycott of one brand is perceived:

The CMP Code of Conduct/Ethics is similar to others. In the CMP Code it says:

“As a recipient of the CMP designation by the Events Industry Council (‘Certificant’), a CMP must pledge to…

“Never use my position for undue personal gain* and promptly disclose to appropriate parties all potential and actual conflicts of interest.”

MPI’s Principles of Professionalism says this in the first section:

Avoid actions which are or could be perceived as a conflict of interest or for individual gain*

PCMA’s Principles of Professional and Ethical Conduct has among its principles:

  • Respect the policies and regulations* of those organizations with whom I deal.
  • Refuse inappropriate gifts, incentives and/or services in any business dealings that may be offered as a result of my position and could be perceived as personal gain.*
  • Avoid any and all conflicts of interest* and advise all parties, including my organization, of any situations where a conflict of interest exists.

Emphasis is the blog author’s.

There are also ethical and business implications for those cities and properties marketing higher-than-Marriott’s new commission and the “woo-hooing” of such offers on social media. How sustainable will this be?

Will these offers be applied across the board to all third parties? What about groups that have internal planners and want a discount that would reflect what a commissionable agent would receive? Or want a rebate to equal what others might receive?

Or an internal planner who doing the same work a third-party might do believing they are due perks for the work?

I think the waters are being muddied even more with these offers.

6. Do what you say: I’m mainly looking at the third parties who have always maintained that they do not book based on what they make in commission and instead book based on what is best for the client. If one rules out an entire company—or is it the ownership of hotels or the management companies as well as the brand?—because the person or company booking isn’t making enough, then can this be true?

7. When other hotel brands or owners follow suit: What then? Will there be a boycott of all brands? Will only brands—or owners of particular hotels who agree to pay the highest commission be considered?

Can a sustainable business model for brands and owners be groups who use a commissionable agent plus a housing company that receives a share of the room rate plus groups who want rebates to off-set their costs plus concessions that, in fact are not “free” but have a dollar value? When and where will it stop?

I understand economics and earning a living and the arguments in favor of the “trickle-down” effect as it relates here—those who don’t earn more can’t employ others or spend more to grow the economy. But where then, is the outcry for a higher minimum wage for those in our industry, especially for back-of-the-house workers and servers?

Some have cited the new U.S. tax laws and Marriott’s profitability as a reason they should pay third parties more or at least what they were paying. Why should commissionable agents receive more than those doing the, literal, heavy lifting in hotels? Or is it that some want everyone paid and the owners and brands to take the hit?

Could Marriott have handled this differently?

You betcha! IF instead of a letter sent without, it seems, warning, there had been conversations (which it appears there were not or at least not that anyone is disclosing) with large and small third parties to discuss this.

IF owners (where is AHLA’s voice?) were saying what we think they must be—that they are demanding greater ROI, would that matter to the protesting voices?

Or is this back to let them take the hit—they are getting tax breaks?

IF this had been applied across the board and not exempting four companies, who have allegedly been granted an exclusion from the commission cut until 2020, would it have been more palatable?

IF those 4 companies said “whoa—let’s do this across the board versus just for some” because “what’s good for all is best for the industry” would this have been more acceptable?

Is it that those who are contractors for some of these companies, especially among those exempted, and groused before about their smaller share of total commission and now will get even less, adding fuel to this fire?

Is a boycott for financial reasons for oneself now Kosher?

Really. I am trying to understand all the different viewpoints … and how the focus is so much on this issue and not on, say, Puerto Rico and the suffering of so many including many in our industry. I’m seeking answers and ethics versus rancor.

I know this is a tough topic and that you may want to contribute comments and prefer to do so anonymously. Comment below and if you prefer to comment anonymously, please send your comments to me at FridayWithJoan@aol.com and I promise to add to the discussion here and to ensure your privacy by, as always, not disclosing your identify to anyone.

Finally, here are some additional resources for planners to consider when confronting issues of ethics, payment and more:

How to Network and Ethically Do Business in a Relationship Industry
https://www.meetingstoday.com/Blog/PostId/306/how-to-network-and-ethically-do-business-in-a-relationship-industry

‘Ethical Negotiation’ – An Oxymoron?
https://www.meetingstoday.com/Blog/PostId/288/ethical-negotiations-an-oxymoron

What’s Wrong With Hotel Contracts?
http://www.meetingstoday.com/newsletters/friday_with_joan/2016_08_05.html

Seven Keys to Hotel Contract Success
https://www.meetingstoday.com/Magazines/ArticleDetails/RegionID/0/ArticleID/28848

Is the Meetings Industry Corrupt?
https://www.meetingstoday.com/Blog/PostId/191/is-our-industry-corrupt

When Laws and Meetings Collide: Go, Stay or Boycott?
https://www.meetingstoday.com/Blog/PostId/280/when-laws-and-meetings-intersect-go-stay-or-boycott

Contracts: Accommodations (Meetings Today Webinar)
https://www.meetingstoday.com/News-Events/Event-Details/ItemID/4093

Contracts: Critical Clauses (Meetings Today Webinar)
https://www.meetingstoday.com/News-Events/Event-Details/ItemID/4091

Back to School: Industry Degrees and Other Education

Originally published Meetings Today Blog

Back to School: Industry Degrees and Other Education

It’s September and, for many, thoughts turn to “back to school” which made me wonder where and how readers of Friday With Joan learned to plan meetings and events.

Are you of a generation who went to school for a degree in meeting and event planning or hospitality management? Or were you like many—certainly those of us “of a certain age”—who learned by doing? Are you among those who got into this industry because you planned family events and someone told you how well you did it and that it was a career, so you jumped in and never took a class?

Perhaps you learned by doing and then took a meetings and events certificate course like the one I teach at the University of North Carolina-Charlotte.

I guess, because you are reading this, you have more education, formal or informal, than many; that the education you’ve received is a mish-mash and includes webinars, periodicals, blogs, discussion groups and industry involvement, and perhaps a degree in this field or in something unrelated.

My first experience organizing events was in the early ’50s when my friend, Alan, contracted polio and I organized street fairs to raise money for polio research. My first industry-sponsored education was not until after I moved to D.C. (1978), joined MPI (1980) and shortly thereafter, attended MPI’s Institutes.

It was, then, a five-day intensive program of classroom learning with the best in the industry (thank you, Howard Feiertag, Ken Fischer, Jed Mandel, Peg Mahoney and others) and experiential learning through project development (With others like Arlene Sheff and Carol Krugman, I later taught at “Institutes,” a program I wish MPI would revive. It and the old PCMA-Sheraton Showcases were among the best for industry-led education).

On the supplier side of the industry, Cornell, Michigan State, and UNLV have all had classes in hospitality/hotel management for years. Classes in meeting management are, considering the age of the profession, relatively new.

(You can learn more at ICHRIE about this side of the industry).

The Convention Industry Council (CIC) and its member organizations have gone to great lengths to add to the body of knowledge available including the development of the CMP program and the APEX initiative. Universities, colleges and community colleges have both degree and certificate programs in meeting and event management.

And there are masters and Ph.D. programs in various aspects of meeting management as well as in hotel operations.

Does it take a degree to learn and practice meeting management? Should a degree be required to be a professional in the meetings industry? To get a job? My friend, Chris Galvin, with United Way in northwest Ohio, plans lots of events and had known little about our industry until we met in the early 2000s.

Interestingly, as I was putting the finishing touches on this blog, she sent to me this article that questions the requirement of a degree for work in many fields. After all, President Lincoln “read for the law” versus going to law school and was a fine president!

Here’s what I believe:

  1. Lifelong learning is critical—whether that learning is required (for CEUs to maintain one’s CMP, for example) or not. Daily, there are changes in the world that impact what we do and what we must know to do it.
  2. Access to education is greater for those with internet access which gives those of us reading this an advantage over many in countries where hospitality and tourism could benefit individuals and the economy.
  3. The number of groups and discussions on Facebook and LinkedIn, among industry association peer groups, via industry and business periodicals, could fill days of learning and provide necessary tools.
  4. Those who are lifelong learners and who mentor and help others learn will succeed personally and move our industry’s progress along.

Read too what three industry professors have to say, and an industry colleague not long out of school, about their experiences and what we need for the future.

Weigh in on what you think should be required for someone to work in our industry and what a relatively recent graduate, Ashley Akright, discusses about her education and what we need in the future. Help others learn by sharing where and how you’ve gained the knowledge you have.

In what areas do you think we need to provide more or different education and in what ways the industry—whether through the established groups like PCMA, MPI, IAEE and all the CIC member organizations—or the newer groups like SPiN and the experiential like the recent [ctrl]+[alt]+[del] can do to further our education.

What are your recommendations for how our industry can help those now in the industry, and those to come, learn?

Lastly, it’s fitting that this, my 100th blog post for Meetings Today, is about education: learning is a subject about which I am passionate! Two of the first industry honors I received were for my contributions to education: one, with a photo of me holding a ruler, apple, and chalkboard, as one of “15 Who Made a Difference” in the industry from an industry publication, and not long after, from PCMA as “Teacher of the Year.”

Later, HSMAI honored me (along with Keith Sexton-Patrick, Jim Daggett, and the late Doris Sklar) for our contributions to industry education; IACC honored me as the only non-member to receive their Pyramid Award, and later, the Mel Hosansky Award—both for education, and the latter, the only non-member other than the late and dear Mel himself, to receive it.

Most recently, PCMA’s Foundation honored me as, so far, the only non-academic for lifetime achievement as an educator where I joined two remarkable industry educators, Patti Shock and Deborah Breiter who preceded me. For all these honors, I’m grateful. More, I’m grateful to be able to continue learning and teaching.