FILAMER CHRISTIAN UNIVERSITY

Autonomous Status – Commission on Higher Education

GRADUATE SCHOOL
Roxas Avenue, Roxas City, 5800, Philippines

(MBA 401) Social Responsibility and Good Governance

HANDOUTS
2nd Semester S.Y 2020-2021
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Ericka A. Mercado Prof. Marlene A. Aguirre, MPA, MBA

Student Course Facilitator

The Morality of Profit-Motive

Profit-motive – the profit motive is the intent to achieve a monetary gain in a project, transaction, or
material endeavor. It refers to an individual’s drive to undertake activities that will yield net economic
gain.

The assumptions of Profit-Motive

1. Profit-motive in business is an ethical issue. Since business is an integral part of society its
activities including profit-making, must be examined from the perspective of morality.

2. Profit-motive as an ethical issue operates within the two important aspects of our human conduct
– freedom and the structure of business.

The Good of Profit-Motive:

1. Profit-motive motivates people to do something meaningful.

2. Profit-motive promotes ingenuity and cleverness in running a business.
3. Profit-motive makes people productive.
4. Profit-motive generates potential capital for the business.

The Bad side of the Profit-Motive:

1. Profit-motive promotes rivalry among competitors

2. Profit-motive makes people focus only on making money.
3. Profit-motives turns the businessman from being a reflective and a questioning person because he
focuses his attention only on the practical activity of making money
 4. Profit-motive promotes self-interest rather than the common good.

Ethical considerations of Profit-Motive in Business:

1. Earning profit is a good and valid activity in business.

2. Making excessive profits is totally wrong. It leads to greed, Avarice and manipulation of
customers.
3. Profit is not the “be-all” and the “end-all” of doing business
4. The teachings of the Catholic Church do not totally condemn profit as a part of business activity.

The concept of Moral responsibility.

1. Moral Responsibility refers to holding to people morally accountable for some past action or
actions.
2. Moral Responsibility also means care, welfare or treatment of others as derived from the specific
social role that one plays in the society.
3. Moral responsibility likewise refers to one’s capacity for making moral or rational decisions on
his own

The Concept of Moral Responsibility

Moral responsibility - the status of morally deserving praise, blame, reward, or punishment for an act or

omission performed or neglected in accordance with one's moral obligations.

2 assumptions of Moral Responsibility:

1. Man is a Rational being- man is capable of moral judgement.

2. Man is a free being – man has the capacity to exercise his choices.

3 meanings of moral responsibility:

1. Moral Responsibility refers to holding to people morally accountable for some past action or
actions.
2. Moral Responsibility also means care, welfare or treatment of others as derived from the specific
social role that one plays in the society.
3. Moral responsibility likewise refers to one’s capacity for making moral or rational decisions on
his own.