Could The Criminal Investigation Of Marriott In Poland Harm The Business

Marriott Criminal Investigation

The disagreements between the Lim Company and Marriott International stem from a disagreement between the two companies during the COVID period. 

Although this basic disagreement has become a legal matter, a number of additional matters have been included in the legal proceedings

These range from financial irregularities, breach of contract, money laundering, breach of contract, a lack of accountability and communication.

Compliance

Marriot International are a world-renowned hospitality company.

With public quotations on equity markets worldwide, an enviable record of growth and financial success, they are also acknowledged leaders in a competitive and demanding industry.

In maintaining this level of activity and success, it is dependent on Marriott to ensure their partnerships and relationships are conducted at the highest level of professionalism and integrity.

This requires that Marriott International ensure that compliance with all legal and financial instruments is done so vigilantly and to the highest of standards.

Matters Arising From The Criminal Investigations 

In the course of the disagreement between the Lim Company and Marriott International a host of different issues have become a part of the legal proceedings.

These include questions with regard to financial impropriety, contractual disputes, accountability and communication matters.  

These seriousness of some of these issues have necessitated a criminal investigation and subsequent involvement of the Polish authorities.

If the allegations made by Lim turn out to be accurate, and deemed to be representative of the activity of Marriott International, this would be a matter of the highest concern to Marriott, in addition to those companies associated with Marriott. 

Reputation

As a world renowned, world recognized company Marriott International must ensure that their compliance with laws, protocols, accounting and reporting formats are recognized as impressive. 

As a publicly quoted company, there is an added responsibility to maintain such standards and ensure that appropriate monitoring is in place to address any areas where questions might arise.

For a dynamic, substantial organization such as Marriott International, it is a given that any monitoring of corporate performance is continual, on-going process. 

It must also be delivered in the most proficient way possible.  

The reputation of Marriott International could suffer greatly, should Marriott be found to not be operating in compliance with the law.

Hospitality

The essential nature of Marriott’s business, hospitality, is founded on standards, operational performance, partnerships and reputation.

More than most sectors, the reputational standing amongst companies in the hospitality sector is particularly important.

To be able to achieve a reputation for product quality, sophistication and elegance is certainly the cutting edge of performance, but a reputation for compliance, professionalism and solid partnerships is also necessary.

That is especially the case in the hospitality sector and the above areas require equal attention to detail, whether operational or otherwise.

Added Difficulties

It is worth consideration, that any company who might be perceived to be circumventing contractual obligations, undertaking sharp financial practices, or placing unfair contract conditions on their partners risks affecting their reputation.

Marriott International has a worldwide reputation for quality, service, standards and these are hard earned accolades.

For the criminal investigations to be further expanded to include Marriott denying the Lim Company the ability to source alternative advertising income during COVID reflects rather badly on Marriott International

Similarly, being prevented from renting the hotel to the National Health Fund for doctors’ housing until the Lim Company agreed to pay unwarranted bonuses to Marriott, is also problematic for Marriott. 

Consequences

Legal disagreements, and commercial conflicts are a feature of corporate activity. 

They occur frequently, however, when matters seem to suggest that any company is flouting corporate governance, not operating in compliance with the law and being unreasonable with regard to their mutual partners this can typically affect the good-standing of any successful company.

Marriott International have a worldwide reputation and a brand recognized for quality, high standards and achievements. 

This, together with the enviable financial results that have been accrued over recent years will have been achieved through extremely hard work. 

Unfortunately, should Marriott face further difficulties in their disagreements with the Lim Company, should further unwelcome behavior become a part of the criminal investigation, this will further impact on the reputation and quality of the brand associated with Marriott International.

Marriott have faced a number of similar, unrelated activities in relation to their partnerships the recent past. 

It is certainly possible that much of Marriotts recent successes might well be jeopardized by lack of compliance, contravention of laws and contract conditions. That would not be good news for Marriott.

This might also spill over to affect any future successes for the company, which might be an even more significant concern to Marriott International and their partners.    

Share this post:

Related Content