MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

SOUTHERN PHILIPPINES INSTITUTE

OF SCIENCE AND TECHNOLOGY
Tia Maria Bldg., E. Aguinaldo Highway, Anabu 2-A, 4103 Imus, Cavite
Tel. nos. (046) 875-34-58, (046) 471-2930

COURSE/YEAR LEVEL : BSA / 2nd Year

SUBJECT : Governance, Business Ethics, Risk Management &
Internal Control
SEMESTER : 2
MODULE # : 5
INSTRUCTOR : MS. SHERIDANNE P. GILO

PLEASE BE REMINDED!
No part of this module should be reproduced in any form (photocopying, recording and mimeographing) without
permission from the SPIST management.

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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

SOUTHERN PHILIPPINES INSTITUTE ( facts, concepts, theories)—“what to discuss”

OF SCIENCE AND TECHNOLOGY
SUBJECT: GOOD GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL
UNITS: 3 UNITS
HOURS/ WEEK: 3 HOURS PER WEEK
COURSE CODE:
COURSE DESCRIPTION: This course is intended to build understanding of students on fundamental
concepts of corporate governance, risk management process, and internal control system. At the end of
the course, students are expected to be competent on these fundamental concepts in applying to actual
corporate setting and on how to evaluate and improve financial and operational processes of
organization’s risk management, control, and governance.
Course Requirements: 1.WRITTEN PERFORMANCE 25% , PERFORMANCE TASK 50%, MAJOR
EXAMINATION 25% TOTAL = 100% 2.Prelim, Midterm, Pre-Final, & Final examination
● EXPLORE—interactive activities
● APPLICATION TASK--- activities, questions requiring analytical, critical, and creative
application of the topic
(this would be in any form)
⮚ SELF-CHECK/ASSESSMENT—formative & summative assessment; varied forms of assessment that
are aligned to intended learning outcomes (this would be in any form)
⮚ REFLECTION—“what do you think and feel about the lesson”
⮚ ASSIGNMENT
⮚ SUGGESTION’S PAGE/ FEEDBACK
⮚ GENERAL INSTRUCTIONS:
1.Read first before doing anything.
2.USE THE ACTIVITY SHEETS FOR YOUR ANSWERS. ( THIS WOULD BE SUBMITTED TO THE
INSTRUCTOR)
3.Read the instructions carefully before doing each task.
4.Observe honesty and integrity in doing the tasks /activity.
5.Finish the task at hand before proceeding to the next.
NOTE: DON’T FORGET TO WRITE YOUR NAME AND DATE SUBMITTED IN YOUR ACTIVITY SHEET.
IF YOU ENCOUNTER ANY DIFFICULTY IN ANSWERING THE TASKS/ACTIVITY, DO NOT HESITATE TO CONSULT
YOUR INSTRUCTOR. ( MOBILE# 0905 335 3986, GMAIL: sgilo@spist.edu.ph)

This module is composed of the following elements: REFERENCE/s:

⮚ COURSE DESCRIPTION THE INSTITUTE OF COMPANY SECRETARIES OF INDIA., (2019) GOVERNANCE, BUSINESS ETHICS, RISK
⮚ COURSE REQUIREMENTS—GRADING SYSTEM MANAGEMENT & INTERNAL CONTROL
⮚ REFERENCES/COURSE RESOURCES
⮚ GENERAL INSTRUCTIONS
⮚ MODULE OVERVIEW: It describes the module. ( “the ALL about”)
⮚ INTENDED LEARNING OUTCOMES: What students should be able to do at the completion of a
INTENDED LEARNING OUTCOMES
module ( based from the syllabus)
⮚ CONTENT: Topics
1. Know and understand the meaning and importance of Business Ethics
⮚ LEARNING SEQUENCE:
2. Recognize how do Corporations and Non Profits benefit from CSR
● ENGAGE/ CONTENT FOCUS---presentation of inputs and knowledge 3. Identify the different practices in Social Responsibility

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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

expected of role models and mentors to its subordinates to realize progress and not become
examples of disgrace and mentors of regress in work.
2. Performance and Working Environment. Good performance generates inspiration and
CONTENT
enthusiasm to all personnel to work harder.
3. Deontology. The philosophy that says people should meet their obligations and duties
LEARNING SEQUENCE STARTS HERE!
when analyzing an ethical dilemma.

BUSINESS ETHICS
The Latin word for ethos is “mos”. for “mores” that is why we’ve known ethics as the moral Benefits of Business Ethics
science or moral philosophy, it refers to the theory of morality of right conduct. It is the study
of what is right and wrong in terms of human behavior and conduct in business. 1. Goodwill of the people. The public would generally want to build long term relationships
The study of perceptions of people about with groups that execute their tasks on the principle of ethics.
*morality 2. Business Ethics has Substantially Improved the Society. Creation of anti-trust laws, unions,
*moral norms and other regulatory bodies that have been a factor in the enhancement of society.
*moral rules 3. Ethical Practices Support Employees Growth. Ethics in the workplace help employees face
*ethical principles reality, both beneficial detrimental- in the organization.
The study, evaluation, analysis and questioning of ethical standards, policies, moral norms, and 4. Strong Teamwork and High Productivity. Constant change and channel of communication
ethical theories that managers and decision-makers use in resolving moral issues and ethical will guarantee the employee complements to the value of the organization.
dilemmas affecting business. 5. High-Profit. Reputation of the business and its share prices also build-up if the firm acts
upon Corporate Social Responsibility (CSR).
Factors Influencing Business Ethics
1. Leadership. Leaders are those who are managing and directing a group of people or an
organization towards achieving a common goal. Leaders must exemplify traits that are
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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

Defining and Understanding the Relevance of CSR How Corporation Benefit from Corporate Social Responsibility

Corporate Social Responsibility (CSR) is one of the most significant features establishing your Improve Public Image - enhancing the public image by advocating non-profits through
firm's public image and reputation.
Corporate social responsibility is a type of business self-regulation with the aim of being ● monetary donations
socially accountable. ● volunteerism
CSR becomes a catchphrase as a corporate associate with non-profit endeavors has turn out to ● in-kind donations
be more and more essential in the public eye. In its crux, a business should consider not just ● strong partnerships
earning profits but go beyond its perimeters and instead put attention and emphasis on how ●
the industry can further promote, advantages, and benefit the greater community. Increase Media Coverage- being in good terms with the press media to cover up possible bad
situations of the company.

Developing CSR Program Boosts Employee Engagement- employees will choose to stay in the company if they feel

CSR programs may or may not be exactly related to your respective business products and/or secure in any terms.

services. You should not restrain or limit yourself in selecting what sort of programs you'll
affiliate your business with. The choices are diverse and wide-ranging. CSR is important for Attracts and Retains Investors- investors will choose to join other companies if they know how

companies, nonprofits, and employees alike. CSR is something “extra” that companies do you it practices CSR and how it helps many people by sharing unconditionally.

improve their local and global communities.

Improves the Company’s Brand- the company’s brand name will become popular by gaining a
good image from the general public.

Customer Engagement- aside from gaining a good public image, the possibilities of increasing
sales and profit is high.
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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

Retain Top Talent- the employees with good skills and talents will not choose other company Positive Workplace Environment- employees will be glad to work in a positive environment.
Increase in Creativity- if the employees have trust and faith to their leader, they will stay in the
and will stay to improve their skills more with the help of the company itself.
company

Encourages Personal and Professional Growth- aside from the personal growth of an
Helps the Business to Stand Out from Competition- the company will know that they have the
employee, the company is also part of their improvements.
power to compete with other companies.
Promotes Individual Philanthropy- this will show how the company responds to its
responsibilities will reflect on its employee's actions and performance.

How Non-Profits Benefit from Corporate Social Responsibility

CSR And Business Ethics
Funding via Matching Gift Programs- Aside from giving funds, gift-giving will double the
Social responsibility is a principled charter and advocates that an individual or an organization,
donations that will result in a positive impact on the company.
has a duty to perform for the benefit of the society. Therefore it is a commitment of to
contribute something for the welfare and interests of the society in which it operates.
More Volunteer Participation- the non-profits organization will gain benefits from CSR because
Social Responsibility takes on a distinctive connotation for each industry and each business
many companies will have to maintain their good image on the public.
within that industry. However, the fundamental classification stays constant.
Example:
Forging Corporate Partnerships- merging with other companies will help you to have
Power generating plants might resolve to reduce emissions or make some operational
alternatives or other sources of funds in case you reach your companies fund limitation.
adjustments in some way that could help the environment and lessen pollution. At large, social
responsibility is more valuable when a firm takes it willingly. It can boost the morale of
Varied sources of revenue- when donating to non-profits, the company must not forget to
everyone involved if they are engaged in worthy causes. Social Responsibility may be required
maintain its profit.
to some degree by certain laws and by the government but its impact is much different when it
is done voluntarily.

Some of the types of social responsibility that current businesses are practicing involves:

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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL
Environmental Efforts
One major emphasis of corporate social responsibility is the environment. Industries
irrespective of magnitude have a large carbon footprint. Trimming down the negative impact
caused by such operations is very much welcome and appreciated.
Philanthropy
Businesses also exercise social responsibility by contributing to local and national charitable
institutions. Sharing of resources whether in the form of monetary assistance, goods and
services of the business, or volunteering time to assist in local community programs are truly
beneficial and commendable.
Ethical labor practices
By way of handling employees fairly and honorably, businesses can also establish their
corporate social responsibility. This is particularly real or businesses that operate in
intercontinental settings with labor laws that vary from those in the home country.
Volunteering
Presence in volunteer events reveals a great deal about a company’s genuineness. It is
expected that whenever you are part of a volunteer project that you are not expecting
anything in return otherwise it defeats the purpose of sincerity.
ACTIVITY SHEETS
SOUTHERN PHILIPPINES INSTITUTE OF SCIENCE & TECHNOLOGY # my second home www.facebook.com/spist official 046-471 29 30 0949 927 15 32
COURSE : ____BSA_________
MODULE # : 5
INSTRUCTOR: Ms. Sheridanne P. Gilo
NAME OF THE STUDENT:___BIÑAS, MIRAFLOR S._____
YEARLEVEL/COURSE: ____2ND YEAR_____________
DATE SUBMITTED: _________________________
Activity 1
1. Based on your understanding, define business ethics and explain its importance.
 Market ethics is the review of relevant corporate policies and
procedures in areas of possible controversy, such as corporate
governance, stock dealing, fraud, bigotry, social responsibility and
fiduciary responsibility. Maybe you don't think much of the value of
ethics in your personal lives. You're just trying to do right. Just just as it
can have a huge influence on your life to make such moral judgements,
they can have a large effect on a business success. Your company can
deliver a wonderful service or creative product, but that does not really
matter with dubious ethics.
 Business ethics aim to ensure the company's good name. It doesn't just
feel nice to belong to a well-known brand, it's perfect for industry. More
people are interested in business if you have a reputation for being
EX honest in how you generate and create goods and handle staff, clients
PL and the environment consistently. For your integrity, also social media
O ethics is critical. Good ethics at the beginning of a corporation. It's
RE essential to lead by example, whether you're a business owner or boss.
As workers see you choose ethics, they know they can trust the
corporation and know you and your clients are right. This raises moral
standards and you are going to attract decent employers while the news
spreads about how you handle your employees well. With high
retention rates, recruiting costs and preparation will save you money
over time.
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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

Activity 2

In your own words, discuss thoroughly How do corporations benefit from Corporate Social
Responsibility.
 CSR benefits not just communities. It also brings fresh and diverse opportunities to
companies and will also support both businesses and the city from each other.
Companies may obtain a broad variety of federal grants and financing by showing a
contribution to CSR. In reality, when awarding government contracts, a company's CSR
policy may be advantageous – evidence of a strong group involvement is usually
considered favorable in the bidding process.
Activity 3
Discuss How do Non-Profits benefit from Corporate Social Responsibility.
 Corporate support open more doors to non-profit organizations worldwide, making
important philanthrops to the largely cash-strapped non-profit community more
feasible. CSR programs contribute to the establishment of further ties between non-
profits and companies of all sizes, the establishment of broad philanthropic and
funding structures.

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 MODULE #5 GOOD GOVERNANCE , BUSINESS ETHICS, RISK MANAGEMENT & INTERNAL CONTROL

Activity 4 REFLECTION

Based on your understanding, Elaborate and explain the practices involved in Social WHAT DID I LEARN?__________________________________________________________
Responsibility. ___________________________________________________________________________
Environmental Efforts
 Environmental efforts are a key priority of CSR. Companies have significant carbon
emissions, irrespective of their scale. The corporation is known to be beneficial for the
business and community every measures taken to decrease its footprint.

Philanthropy
 By giving funds, goods or resources to charitable causes and charities, companies may SUGGESTION’S PAGE
exercise social responsibility. Greater businesses seem to have abundant money that
can support local charities and charitable programs, but your contributions can make a ● YOU MAY WRITE YOUR FEEDBACK AND SUGGESTION REGARDING THE MODULE
huge impact as a small enterprise.

Ethical labor practices

 Businesses can explain CSR by handling workers equally and ethically. This applies
particularly to companies with labor rules that are different from the laws of the
United States in foreign places.

Volunteering
 Taking part in local organizations or voluntary work (and the time of the staff) in
community activities speaks a lot about the sincerity of an organization. While
performing good deeds, businesses will express (and support) concerns about real
problems and social causes without receiving anything in return.

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