BEGovSoc 323: GOOD GOVERNANCE

AND SOCIAL RESPONSIBILITY

 Unit 1

UNDERSTANDING CULTURE, SOCIETY

AND POLITICS...cont'n
 values and morals are personal
•I = Introverts •E = extroverts

kindly read your own personality types (some

are innate and inborn especially your
strengths) - it is how you see things as they
are
note: not included in our prelim
Review...
Shareholder - owns part of a company through
shares of stock, making them stockholders.

Stakeholder - has an interest and / or concern in

the operation s well as the performance of a
company.
 Stakeholder
• Employees
Shareholder • Suppliers
• Owners • Customers
• Members of the corporation • Various agencies including
government
• Stockholders
• Competitors
• Community
• Media
• General Public
• Others

Shareholders are always stakeholders, but stakeholders are

not always shareholders.
 INTERNAL EXTERNAL
STAKEHOLDERS STAKEHOLDERS

OWNERS CREDITORS CUSTOMERS

MANAGERS PUBLIC
COMPANY
EMPLOYEES SOCIETY

SUPPLIERS
GOVERNMENT
• Both shareholder and stakeholder have different perspectives at looking at
business.

• Shareholders focus on making decisions that would benefit the best interest
of the owners of the firm (grounded on the motive to maximize profit and its
ROI).

• No business was ever put up just to eagerly expect loss of savings and
venture.

• But shareholders cant just put profit as the only emphasis for business
survival.

• The success or failure of any enterprise depends largely on the

stakeholders' perception, acceptance and respect for the said business.
• The philosophy of business, therefore, as well as
all decisions that the said firm may formulate
should work for the good of the entire populace
concerned.
 CONFUSION?
Ethical Behavior in Business DILEMMA?
WHAT TO DO
CONFLICT OF NEXT? HOW
INTEREST TO DECIDE?
The Four-Fold Test in Decision Making Evaluation
1. Truthfulness 3. Goodwill
• How honest and accurate is my • Will it build goodwill and
decision? positive image to the
2. Fairness organization?
• Am i being just and reasonable 4. Beneficial
to everyone concerned? • Will it be favorable to all parties
who have vested interest in the
outcome?
Principles of Commendable Business Ethics

COMMUNITY
TRUST TRANSPA
INVOLVE
WORTHINESS RENCY
MENT

BE ACCOUNTING RESPECT
RESPONSIBLE CONTROL FULNESS
 • Ethical standards must be set.
• But more importantly, Ethical standards must be
met.
Steps to Ethical Decision Making

What are the consequences of your

decision?
How can the option be implemented?

Decide which option is most ehtical

Consider options
Think through dilemma; Identify all components as objectively as
possible
 Ethical decision models
✓Utilitarian Model
• an ethical decision is one that
produces the greatest good for the
JUSTICE
greatest number of people
UTILITARIAN ✓Moral Rights Model
IDEAL • an ethical decision is one that best
OUTCOME maintains and protects the
fundamental rights and privileges of
the people affected by it.
✓Justice Model
• an ethical decision is one that
MORAL distributes benefits and costs
RIGHTS among individuals in a fair,
equitable or impartial way.
Behavior or act
Compared Prevailing norms of
that has been
with acceptability
committed

Value judgements
and perceptions of
the observer
The golden rule of business

“You should do unto others as

you would have them do unto
you”