Ethical Issues in Event Management:

What is Event Management?

Event management companies organize various events such as concerts, corporate conferences, and weddings. They handle the planning, organization, and ticketing on behalf of their clients. It’s crucial for these companies to act ethically, as there have been instances where their behavior has been questionable.

Ethical Principles in The SBL Syllabus 

From our SBL syllabus, we know that ethical questions often revolve around the IFAC principles: Integrity, Objectivity, Professional Competence, and Confidentiality. Let’s delve into these principles and see how they apply to event management.

Professional Behaviour

One key element of professional behaviour is acting in a way that does not discredit the profession, ensuring transparency and fairness. Recently, the band Oasis announced a series of concerts. The way tickets were marketed and sold raised ethical concerns. Fans experienced sudden price surges due to high demand, with tickets initially priced at £50 skyrocketing to £200 or more. This lack of transparency and fairness was seen as exploitative and unprofessional.

Avoiding Unethical Practices:

• Companies should be upfront about their pricing policies.
• Clearly explain dynamic pricing in all promotional materials.
• Engage with the audience and address their concerns.

Integrity

Integrity involves acting with honesty and fairness. In event management, unethical behaviors can include taking kickbacks and favoring certain vendors. For example, Live Nation, a major player in the industry, faced accusations of leveraging their market position to benefit specific vendors and artists, raising questions about their commitment to integrity.

Promoting Integrity:

• Implement a clear conflict of interest policy.
• Ensure proper disclosure of conflicts.
• Conduct regular audits and checks to detect unethical practices.
• Base vendor selection on objective criteria like cost, quality, and client needs.

Professional Competence

Professional competence means having the necessary skills and expertise to perform tasks effectively. In event management, this extends beyond logistics to include safety and environmental responsibility. The infamous Fyre Festival is a prime example of a lack of competence, where poor planning and inadequate safety measures led to a disastrous event.

Ensuring Competence:

• Consult experts and ensure the necessary expertise is in place.
• Prioritize safety and basic standards.
• Develop skills in environmental management to minimize impact.

For instance, Glastonbury Festival banned single-use plastic bottles, saving an estimated 1.7 million bottles, demonstrating effective environmental responsibility. In contrast, Woodstock 1999 suffered from environmental chaos due to poor waste management.

Conclusion

The ACCA ethical principles can be applied to non-financial organizations like event management to promote strong ethical behaviour. By adhering to these principles, companies can ensure they act ethically and responsibly.

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