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Meaning of Offices and Hospitality

I have been wondering, what is the meaning of Offices and Hospitality. As it says now (level 1) that minimum morale is 1 and raising it raises the minimum morale value, but my staff/drivers have morale values ranging from 11 to 19, so to see any improvement I would need to raise the facility to level 12. Do I understand correctly how it works, or is there something in there that is not worded out?

That's how it works you need to raise it to 12 to raise the DR to 12 and 14 to raise the TD and 16 to raise the CD. It does not effect drivers.

I think they should force the transfer list to run off the offices and hospitality level, as you say you have it at level 1 it would mean you would only see staff and drivers with 1 morale

Ok, so it's pretty much useless :)?

Since morale and experience often don't do much in regards of the star rating yes. It's more or less pointless until you're high level and don't want to miss out on the slightest edge you might get.