Republic of the Philippines
UNIVERSITY OF EASTERN PHILIPPINES
University Town, Northern Samar, Philippines
Web: http://uep.edu.ph; Email:
uepnsofficial@gmail.com
Grade 11
BUSINESS ETHICS
Quarter 3- Chapter 1
Modular Discussion
Week 5 Day 1 & 2
Prepared by:
Princess Dianne A. Pilande
Subject Teacher
Chapter 1
The Role of Business
in Social and Economic
Development
LESSON 4
Business leadership affects the moral
capability and performance of organizations.
Business leaders influence the scope and
character of formal ethics programs and the
integration of ethics into everyday
organizational life.
Corporate governance is a system by which businesses
are directed and controlled. Good corporate governance is a
key factor in underpinning the integrity and efficiency of a
company. Poor corporate governance can weaken a
company’s potential, can lead to financial difficulties and in
some cases can cause long-term damage to a company’s
reputation.
A company which applies the core principles of good
corporate governance— fairness, accountability,
responsibility, and transparency, will usually outperform
other companies and will able to attract investors, whose
support an help to finance further growth.
Fairness
Fairness refers to equal treatment. It is perhaps one of the
hardest, yet most important, to practice on a consistent basis. It is
the quality of making judgements that are free from
discrimination.
Fairness in business refers to the value of treating people
with a standard of performance that is consistent and equal
based on commitments.
Fairness is concerned with actions, processes, and
consequences that are morally right, honorable, and equitable.
In essence, the virtue of fairness establishes moral standards for
decisions that affect others. Fair decisions are made in an
appropriate manner based on appropriate criteria.
Accountability
Accountability refers to the obligation and
responsibility to give an explanation or reason for the
company’s actions and conduct.
Accountability is crucial in ensuring high
performance within an organization and has a strong
connection to expectations. Managers must clearly
communicate to the person who is responsible for the
specified action or task
Cultivating accountability across organization requires
managers to take specific actions. Employees need to
clearly understand their role in the company and what
they are responsible for accomplishing.
Accountability—what it is?
• To be accountable is to be liable to explain or justify one’s actions and
decisions.
• Accountability is the process of explanation and justification.
• Holding to account is the process of requiring explanation and
justification, but it is also about testing, forming a judgment, and if
necessary, taking action.
• Accountability implies responsibility: it is reasonable only to hold
people to account for those things for which they are responsible.
Transparency
A principle of good governance is that
stakeholders should be informed about the company’s
activities, what it plans to do in the future and any risks
involved in its business strategies.
Transparency means openness, a willingness by the
company to provide clear information to shareholders
and other stakeholders. For example, transparency refers
to the openness and willingness to disclose financial
performance figures which are truthful and accurate.
Benefits of Corporate Governance
Corporate governance is the framework of rules and
practices by which a company’s board ensures accountability,
fairness and transparency in its relationship with stakeholders
such as financiers, customers, management, employees, the
government and community.
Strong corporate governance maintains investors’
confidence, whose support can help to finance further growth.
Companies that implement the principles of good corporate
governance into their working environment life will ensure
corporate success and economic growth.
Common Practices in Business
Every organization must have a code of right conduct. A
well-written code of conduct spells out an organization’s
mission, values and principles, connecting them with standards
of professional conduct.
Many companies have policies relating to matters that
are not regulated by law, but which are based on standards set
by the employer in an effort to ensure a high standard of
behavior in the workplace. Policies that deal with employee
behavior at work (and out of hours) as well as their
responsibilities towards the employer and to company property
are usually incorporated in a “code of conduct”. Setting policies
in these areas indicates to employees the standard of behavior
that is expected of them at work and what the consequences of
a breach will be
Codes of Right Conduct
Conditions Included in Policies
• Attendance • Probation
• Absenteeism • Performance review
• Punctuality • Discipline
• Abandonment of employment
• Transfer • Exit interviews
• Training • Notice and termination of
• Promotion employment
Companies issue these policies so that employees are clear on what
their rights and responsibilities are.
Codes of Right Conduct
Employee Entitlements
• Redundancy pay • Personal/career leave
• Annual leave • Jury service
• Special leave
• Long service leave
• Overtime
• Compassionate leave • Shift work, etc.
• Parental leave
Employee benefits.
An employer may provide a number of
different benefits as part of their contract of
employment. These are often not prescribed by
legislation or an industrial instrument but are
provided by the employer for the benefit of
employees— sometimes as incentives.
Breach of Company Policy.
Failure to comply with an employer’s policies
can be a valid reason for termination of employment.
Term of Contract of Employment.
The terms set out in a written contract of employment
may cover a number of different statements or documents
including a reference to company policies and procedures.
Office Protocol Specialist.
An office protocol specialist is a consultant to businesses.
Office protocol specialists create training programs that help
employees learn the boundaries of politically and socially
acceptable behavior and thus help company function more
efficiently, as well as to avoid lawsuits. The goals of office
protocol is to prevent conflict and to have a pleasant productive
workplace.
Decorum.
It is essentially the suitable way of presenting something for a given
circumstance. In ordinary usage, the word decorum basically means good taste and
appropriate propriety in both dress and conduct. The rules of decorum can be thought
of as the rules of etiquette, which tend to be different for different situations but are
generally intended to show respect to the host and the other guests present in any
formal situation.
Marketing management.
The application, tracking and review of a company’s marketing resources
and activities. Marketing management is the organizational discipline which focuses
on the practical application of marketing orientation, techniques and methods inside
enterprises and organizations and on the management of a firm’s marketing resources
and activities.
Bookkeeping.
It is the recording of financial transactions, and is part of the
process of accounting in business. Transactions include purchases, sales,
receipts, and payments by an individual person or an organization.
Bookkeeping is usually performed by a bookkeeper. A person who
records the day-to-day financial transactions of a business.
Reportorial requirement and documentation.
Writing effectively allows you to express your ideas clearly
and coherently, and it is an essential part of corresponding with others
in the workforce. Most jobs requires writing— e-mails, letters, memos,
reports, analyses, project summaries, product descriptions, and the list
goes on. The ability to write well is essential in obtaining job, in
performing the job, and in being promoted.
Ethical and Unethical Behavior
Business ethics provide the ethical standards in the
workplace.
Core Principles of Business Ethics:
• Honesty • Respect
• Integrity • Obeying the law
• Keeping promises • Excellence
• Loyalty • Being a leader
• Fairness • Morale
• Caring • Accountable
Ethical and Unethical Behavior
Business ethics provide the ethical standards in the
workplace.
Unethical Business Practices :
• Accounting manipulations
• Overbilling
• Misleading advertisements
• Making false claims
• Customer service failures
• Layoff and high executive
compensation
• Poor-quality material
Good Policies and Ethical Practices in
Business Organization
• Business organizations should comply with reportorial requirements as mandated
by the government agencies for ethical practices.
• Practice of proper office decorum.
• Be sensitive to smells and scents which may be unpleasant to the employees.
• Company property or assets are for business purposes and not for personal use.
• Employees should use communication infrastructure properly and appropriately.
• Employees should always act in the best interest of their employer.
• There are confidential information that are protected and which should not be
divulged to anyone outside the company without proper authorization.
• All financial and accounting records should be accurate, reliable, and truthful.
REFERENCES:
1. Cortez, Franz Giuseppe F. (2016). Business Ethics and
Social Responsibility. Quezon City: Vibal Group, Inc.
2. Macatangay. Leah A. ( 2018). Business Ethics. Makati
City: Don Bosco Press, Inc.
3. Serrano, Angelita C. (2016). Business Ethics and Social
Responsibility. Manila: Unlimited Books Library Services
and publishing, Inc.
4. Zarate, Cynthia A. (2018). Business Ethics and Social
Responsibility for Senior High School. Quezon City: C & E
Publishing, Inc.
5. Racelis, Aliza (2017). Business Ethics and Social
Responsibility. Quezon City: Rex Book Store, Inc.
Activity 1:
1. Do you think it is reasonable to expect businesspersons to help society or
the country? Why or why not?
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
2. Are you convinced that the main purpose of business is to gain profit or to
respond to the needs and wants of the society. Defend your answer.
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Activity 2:
I. Right or Wrong
Direction: On the space provided write R if the statement is correct and W if
the statement is incorrect.
_____1. The fairer the entity appears to stakeholders, the more likely it is that
it can survive the pressure of interested parties.
_____2. The underlying concept of fairness is simple; its application in real life
proves extremely easy.
_____3. Accountability is unessential to ensuring high performance within an
organization.
_____4. Clear communication of expectations and well defined goals is very
effective tool to enhancing performance at every level of organization.
_____5. Supervisors and not subordinates should have a clear idea of how
their projects should be handles and delivered.
See you next meeting!
