Human Resource Management

CHAPTER

18 HRM and Business Ethics

Contents

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At the end of this chapter, the students are expected to:

1. define business ethics;

2. recognize the importance of ethics in HRM; and
3. assess major factors that impacts ethical actions in the organization.

Learning Objectives Suggested Instructional Strategies

LO 1: define business
ethics
LO 2: recognize the
importance of ethics
in HRM
LO3 : assess major
factors that impacts
ethical actions in the
organization
Refer Human Resource Management on page
200 for the meaning of business ethics.
Rounds – Call as many students from the class
to give as many answers as possible.
Rounds – Call as many students from the class
to give as many answer as possible.
Mind mapping by Break-out Group
(Refer to Experiential Learning Activity #1)
Advanced Reading Assignment – In
preparation for the discussion of the topic, ask
the students to visit the following websites:
 http://www.accountingweb.com/article/et
hical-behavior-differs-among-
generations/222223
 http://smallbusiness.chron.com/two-barriers-
affect-ethical-business-practices-
organizational-level-20388.html
 http://missingebusiness.blogspot.com/2011/
12/factors-affecting-ethical-behavior.html

Mind mapping by Break-out Group

(Refer to Experiential Learning Activity #1)
*All links accessed last March 6, 2014.

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 Learning Lesson Slide
Objective Presentation
LO 1 Definition of Business Ethics Slide 2

LO 3 Shareholder versus Stakeholder Perspective Slide 3

LO 2 What is Ethical Behavior? Slide 4

Major Factors Impacting Organizational Slides 5 and
LO 3
Ethics 6
LO 3 Clarifying Values Slide 7

Ask the students to go to the following sites for related topics. Ask them
to write a synthesis or a reflection after reading the content of these sites

Definition of Business Ethics

http://www.wisegeek.org/what-is-business-ethics.htm
http://www.tutor2u.net/business/strategy/business-ethics-
introduction.html

Shareholder versus Stakeholder Perspective

http://www.valuebasedmanagement.net/faq_shareholder_stakeholder
_perspective.html
http://dowelldogood.net/?p=545
http://www.economist.com/node/15954434
http://sloanreview.mit.edu/article/the-shareholders-vs-stakeholders-
debate/

Ayala Group’s CSR Model

http://www.ayala.com.ph/viewArticle.php?id=60
http://www.ayala.com.ph/CSR.php

What is Ethical Behavior?

http://denisebane.tripod.com/
http://www.baldrige21.com/BALDRIGE_GLOSSARY/BN/Ethical_Behavior.
html

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http://www.accountingweb.com/article/ethical-behavior-differs-
among-generations/222223
http://www.valpo.edu/about/mission-values/a-commitment-to-ethical-
behavior/
http://dornsife.usc.edu/overcoming-obstacles-to-ethical-behavior/

Major Factors Impacting Organizational Ethics

http://smallbusiness.chron.com/two-barriers-affect-ethical-business-
practices-organizational-level-20388.html
http://smallbusiness.chron.com/ethical-factors-must-taken-account-
organizations-20666.html
http://missingebusiness.blogspot.com/2011/12/factors-affecting-ethical-
behavior.html

Clarifying Values
http://careerplanning.about.com/od/selfassessment/a/work_values.htm

PMAP’s Code of Ethicswww.pmap.org.ph

*All links accessed last March 6, 2014.

1. Mind Mapping by Break-out Group

Divide the class into small groups composed of 3-4 members and ask
them to prepare a synthesis on the topic. Assign a group moderator,
a secretary, and a rapporteur who shall report to the class the output
of the group.

Allow groups to create thought framework on the topic either

through inductive or deductive presentation.

Using a flow diagram, ask the students to present a mapping of

thought or reasons beginning from the inputs of information until it
connects the bits of information and reaches the end output which is
the intended conclusion or generalization.

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I. True or False: Write T if the statement is true; otherwise, write F if
the statement is false.
____ 1. The creation of company’s Code of Ethics will help ensure ethical
decisions and practices.
____ 2. Ethics refers to branch of ethics that examines moral and wrong
conduct arising in the context of business practice.
____ 3. Business ethics provides guidelines for acceptable behavior by
organizations in both their strategy formulation and day-to-day
operations.
____ 4. Business ethics according to shareholder perspective is done by
maximizing the return on investment for the organization’s shareholders.
____ 5. Organizations approaching business ethics from a stakeholder
perspective consider how decisions impact those inside and outside the
organization.

1. T
2. F
3. T
4. F
5. T

1. Mind mapping by Break-out Group (Total Points: 20)

Evaluate the output by assessing the overall flow of the idea
according to acceptable theory or principles or desired outcome.

Rating Guide:
0-5 points – Inputs and starting point/idea is correct
0-5 points – In-between points/ideas are correct
0-5 points – Line of thoughts are coherent to general idea
0-5 points – Expected output is correct