troubles in paradise Essay

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TROUBLE IN PARADISE: STAKEHOLDER CONFLICT IN THE PASEO CARIBE PROJECT

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Introduction:
Paseo Caribe is a prime tourist and convention area, as well as historically and culturally important zone. Paseo Caribe was organized as a partnership between the government of Puerto Rico and the private sector. The government of the Commonwealth of Puerto Rico, a territory of the United States, acquired from the U.S federal government a piece of land at the entrance of the San Juan Islet. The government of Puerto Rico developed a Special Land Use Plan and regulation for the entrance of the San Juan Islet in 1993. The Plan also known as Regulation 23, coincided with Commonwealth of Puerto Rico s economic development plans and could not be altered unless an amendment was made (Toro, Sagebien, Quinones, 2010). In 1999, the government sold the land to Hilton International in order to develop the land and further, the opposition to the project came from the local residents in the area. Who opposed the change of the zoning from residential to tourist area and further to the proximity to the project; they were also opposed to the increase in residential and the visitor density. Later it was found that there were many irregularities in the approval process that was undertaken to approve the project, as there were many laws that were not taken care of. Further, there were also certain studies conducted by various government organizations whose results were not consulted before the passing of the project. Later an investigation was proposed for the whole approval process of the paseo caribe. The issue turned in to a conflict and many violent protests were planned. There were series of protest organized by various organizations and people. Later the government intervened and stopped the project from going ahead. This also lead to protest from the industries sector as the industrialist in the real state sector said that issues like this would deter the foreign investors to invest in the country in the real estate sector. Later the company took the government to the court against stoppage (Toro, Sagebien, Quinones, 2010). From the case study of Paseo Caribe high lighting the stakeholder conflicts, I could see the major stakeholders in the project were as below:
1. Arturo Madero and Hilton International
2. Public and NGO, Puerto Rico Architects and Landscape Architects Association
3. Government
The following is the presentation of ethical standards from each of the above listed perspective. From the below I would like to put across a thought that Stakeholders subject is not just a theory, but also a fine balance of organizational management and upholding ethics of business.
Arturo Madero and Hilton International, Investors and Constructors:
Arturo and Hilton International are two parties who must be viewed from the point of the traditional view of the firm, that the stakeholders are owners of the company (Company here is being used only as reference purpose when we are talking of a project Paseo Caribe). The behavioral pattern of Arturo indicates that he or his company feel that they have moral obligation in putting their interests and needs at high priority instead of making an effort to understand the impacts the business has upon the common people. This is a classic example of business who just wants to sell a product rather not think about the implication.
Arturo and the partner company Hilton international from the beginning skewed the process of running a poor business by using under hand tactics in obtaining approvals and clearances for project, skewing the Land Policy of the Puerto Rico. They have failed in understanding the culture and history of the common wealth, at every step they have ignored public criticism and backlash about this project.
Although the project might be a great opportunity to Puerto Rico from an Economic standpoint, it does not give
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