Moral hazard is the primary form of hazards that takes place when the employees shirk real responsibility at the place of work. This is the reason why the employees have to give a particular service for its fundamental transformation in the payments. This also cuts down the moral hazards. Moral hazards take place when the people perpetrating the hazard feel that the blame on the hazard will be put on someone else (Fan, Kühn, and Lafontaine, 2017). In most cases, several people have suffered without having been part of the crime. At “Anytime Fitness,” organization, there are several issues that relate to moral hazards such as sexual harassment at the gym and have a massive moral breakdown and ethical issues as well. It is unfortunate that this is an idea which is not new and has been a massive challenge in these places, especially in the gyms. The clients always make advancements that qualify to be sexual offenses after which the trainees claim the trainers have raped or abused them. At the gym, the first recommendation for such actions is to consult with the right authority and the eployees have to know the risks asocited with moral hazards. The actionstoimplement while reducing hazards include the incentives and different policies that make impossible for the people to get involved in the immoral behaviors. An exampleis writing some basic rules and regulations on the wall.
Fan, Y., Kühn, K. U., & Lafontaine, F. (2017). Financial constraints and moral hazard: The case of franchising. Journal of Political Economy, 125(6), 2082-2125.