 Manager – voluntarily accepts responsibilities for

employees, shareholders, customers and suppliers but at

the same time needs to resolve potential conflicts between
their needs
 But notice that the manager must also work within the
confines of legal framework, social responsibilities and
competitors
 Environmental Protection – sensitive to the human,
natural and physical environment and the impact which
their actions have on them
1. pollution – waste by products not harmful to the
environment; products themselves do not create
environmental hazards (i.e., effect on ozone layer
and bio-degradable material such as abaca twine)
2. minimize use of non-renewable natural resources
(i.e., minerals)
3. health and safety issues – relating to work
environment and product
 Development of environmental strategies –
influenced by government legislations; needs to
prioritize tasks (not all can be implemented)
 Responsibility to employees – provide opportunity for
employees to learn and develop
- despite a mere contract between employer and
employees to work together for mutual good (no
such thing as “loyalty” anymore)
- has moved from long-term employment relations
to short term “contractual” relationship
- in the past, a job for life (i.e., Japanese experience)
 ETHICS – moral principle which determines the rightness of
wrongness of particular acts or activities
 “Ethics deals with right actions of individuals” . (Peter.F.Drucker)
 Many companies believe that an organization is not accountable
for the ethical behavior of its employees
- however, management cannot wash its hands of
unethical behavior of its employees
- unethical business practices by employees reflect the
values, attitudes and beliefs of an organization’s
operating culture
- attitude of “if it is legal it is ethical” often leads to unethical
behavior
 Ethical business behavior facilitates and promotes
wellness to society, improves profitability, fosters
business relations and employee productivity.

 Organizations should set their own internal values,

which lead to laws of conduct, and these should go
beyond minimum legal requirements.
 Customers given adequate information to make a
correct decision in choosing a product which satisfies
their needs (i.e., sales literature should be more
factual)
 Effectiveness of government regulations has a limit to
protect customers
 In practice, there is the marketing strategy of
“planned obsolescence” in the design of the product
- to fail longer than the warranty period
- to design deliberately with limited features
 Laws addressing the organization’s conduct toward
employees – cover a wide spectrum from rules
governing the employment of people to safety and
conditions at work (i.e., laws covering labor unions –
negotiate with the company on terms and conditions
of employment)
 Laws relating to consumer protection (i.e., banning
“no return no exchange policy”
Laws to insure that organizations do not harm the
environment
- to prevent discharging of harmful wastes or
producing excessive noise
- to conserve scarce natural resources
Trading regulations – company directors are personally
liable for company’s debts and and shall be held
criminally liable (i.e., if company does trading with
fraudulent intent and defraud its creditors)
Protecting Ideas – need for companies to protect their
ideas (has moved from age of manufacturing to age of
ideas especially in high technology industries)
 P.D. 984 – Pollution Control Law
 P.D. 1151 – Philippine Environmental Policy
 P.D. 1067 – Water Code of the Philippines
 P.D. 984 – The Pollution Control Law
 R.A. 8749 – Philippine Clean Air Act of 1999
 R.A. 6969 – Toxic Substances and Hazardous and
Nuclear Wastes Control Act
 R.A. 9003 – The Solid Waste Management Act of 2001
 R.A. 9275- Philippine Clean Water Act of 2004
 Intellectual Property Rights (IPR) – similar to rights
available with conventional property – can be
transferred; it is often more precious (can give an
organization considerable competitive advantage –
such as issue of disclosing Coke formulation in India)
 Trade and Service Marks – differentiates a product or
service originating from one organization (i.e., San
Miguel Corp.’s products)
 Patents – connected with inventions that have
practical applications
 Copyright
An employer may terminate employment in case of serious misconduct
or willful disobedience, gross and habitual neglect, fraud or willful
breach of trust, commission of a crime against the employer, and other
offenses by the employee
 Informal
Note of discussion on file
discussion

Warning Record of interviews on

interview employee’s records

Written
Copy on employee’s records
warning

Sanctions or Information on employee’s

dismissal records

Possible steps in a disciplinary procedure

“This is different from dismissal, since it is not caused by poor
employee performance, but by poor company performance,
forcing it to reduce the number of its staff in order to cut costs.”
 Criteria for Terms and “At risk”
selection costs letters

Select
individuals Formal
Leave
redundancy
company
notice

General Face-to-face
announcements interviews
Counselling
and training
HR
interviews
Internal
placement

Possible steps in redundancy programme.