ETHICAL ISSUES IN BUSINESS

Business is a productive human activity that brings beneficial contribution to people and
society. Business brings employment, deals, technology, satisfaction. However, some people will
take advantage of others like abuse relationship. Because of this, there are many ethical and
social problem that affect the flow of business.

To identify ethical issues:

1. SEXUAL HARASSMENT: This create a hostile and unhealthy workplace. The Philippine
Congress enacted a law, Anti-Sexual Harassment Act of 1995, declaring sexual harassment
unlawful. “The state shall value the dignity of persons, enhance the development of human
resources, guarantee full respect for human rights and uphold THE DIGNITY OF workers,
employees, applicants for job, students, those undergoing trainings or education”         
REPUBLIC ACT 7877 or ANTI-SEXUAL HARASSMENT ACT OF 1995
- There have been several instances in the workplace where people were sexually
harassed and they were greatly disturbed or embarrassed or traumatized by the
disgusting actions of their colleagues. In order to solve this problem, the state has
passed a law where sexual harassment, which is defined as an act or a series of acts
involving any unwelcome sexual advance, request or demand for a sexual favor, or
other verbal or physical behavior of a sexual nature, committed by a government
employee or official in a work-related, training- or education- related environment, to
be forbidden and when done to another, you would face legal or criminal sanctions
under Republic Act 7877 or the Anti-Sexual Harassment Act of 1995.
Sexual harassment, which has been declared unlawful in the workplace, training and
education environments, will not be tolerated as it violates the dignity and human
rights of a person.

How sexual harassment occur.    

a) Quid Pro Quo or requiring a sexual favor as a condition of employment.
- During the application for employment, powerless men and women would be offered
sexual favors as conditions for their employment or for them to enter into a job. This
scheme has proven how selfish and disgusting employers are, and how desperate the
applicants are to get a job. This quid pro quo is one of the reasons why there’s still a
growing distance between capital and labor in our country.
Example: Ms. Alice was the person chosen during the interview for the position of a
secretary under the Vice President at LLS Corporation. During the contract signing
with the vice president, she was asked to give sexual favors to him for more
compensation or higher salary and more benefits and privileges. If she refused, all
her benefits, privileges and compensation would greatly decrease.
b) Harassment will create a hostile environment.
- If an employee was harassed in the workplace, he/she would feel that everyone is out
to get him/her or would require any sexual favors from him/her. He/She would think
that the environment that he/she is currently in is hostile, offensive, and
uncomfortable because of the eminent danger that he/she can experience in the
present and in the future. Also, employees or the harassed would always be wary of
everything around them, making them anxious to the point where they cannot do their
jobs right. This would result to them having unsatisfactory or poor work-related
activities, which then would end up them getting scolded, demoted or even fired from
their job.
Example: Ms. Alice was harassed by the vice president and several other male
employees working above her. Because of their actions, Ms. Alice became
traumatized and afraid of every male employee she encounters in her workplace. She
thinks that each and every one of them would get their hands on her, hence why she is
always wary and anxious. Her anxiety and wariness then led her to several poor and
unsatisfactory reports and work. She was always scolded when this happens and, in
the end, she was fired from her job.

c) Power struggle between men and women

- Due to the patriarchal and misogynistic system that has been deeply rooted in the
workplace and in society, women always had a hard time fitting in. This created the
long and never-ending power struggle between men and women. Men always were
given priority for higher positions instead of women because they think women are
“soft” and “emotional” which would affect their decision-making, and hence they
don’t fit the characteristics of a good leader or a good boss. This misogynistic
behavior and this discrimination are very much old-school and traditional. It no
longer applies to this generation as women can do what men can do. Women are
powerful, strong, and independent.
Example: Mr. John and Ms. Lola, both junior accountants, were both competing for
the promotion of Senior accountant in their work. Mr. John has only been working as
a junior accountant in the company for 6 months, while Ms. Lola has been working
there for more than a year and have been wanting to be promoted for a long time
now. She did everything she could to deserve the promotion and has been a great
help to the company with her several successful suggestions as an accountant.
However, the higher ups chose Mr. John for the promotion because they think that
Mr. John would be better suited for the position because he is a man and would be
more beneficial to the company. They think that Ms. Lola is still “lacking” in several
departments but in truth, they just don’t want to have a woman working for the
position.

d) Complexity of environment  
- With the increasing difficulty in finding or acquiring a job, people would often do
anything to get them even with unreasonable favors and circumstances. Due to this,
 employers would often take advantage of their position and demand them to do
actions that’s way outside their expertise and moral principles. The complexity of the
environment creates opportunities where this kind of things happen.
Example: Ms. Jenny is desperate for a job since her family is in debt and currently
has no food to consume. Because of this, she would take any offer despite it being
against her morality and principles.
                                                             
  
Effects: (refer to letter b)
a) Hostile environment
b) Offensive workplace
c) Individuals are greatly affected emotionally, professionally, psychologically.           
               

HOME WORK
Recite on the concept of sexual harassment. How to prevent sexual harassment in business?
Explain with example in your own words.
 SEXUAL HARASSMENT is an act or a series of acts involving any unwelcome sexual
advance, request or demand for a sexual favor, or other verbal or physical behavior of a
sexual nature, committed by a government employee or official in a work-related,
training- or education- related environment. Sexual harassment can also be defined as
an unwelcome sexual advance, unwelcome request for sexual favors or other
unwelcome conduct of a sexual nature. which makes a person feel offended, humiliated
and/or intimidated, where. a reasonable person would anticipate that reaction in the
circumstances. It has been declared unlawful in the workplace, training and education
environments, will not be tolerated as it violates the dignity and human rights of a person.
Thus, the state passed a law which would forbid anyone from sexually harassing others
and this is Republic Act 7877 or the Anti-Sexual Harassment Act of 1995.

According to Section 3 of RA 7877, sexual harassment is committed when:

a. The sexual favor is made as a condition in the hiring or in the employment, re-
employment or continued employment of said individual, or in granting said
individual favorable compensation, terms of conditions, promotions, or privileges;
or the refusal to grant the sexual favor results in limiting, segregating or
classifying the employee which in any way would discriminate, deprive or
diminish employment opportunities or otherwise adversely affect said employee;
 b. When the sexual favor is made a condition to the giving of a passing grade, or the
granting of honors and scholarships, or the payment of a stipend, allowance or
other benefits, privileges, or consideration; or
c. When the sexual advances result in an intimidating, hostile or offensive
environment for the student, trainee or apprentice.
Sexual harassment can be prevented in business by:
a.  Promulgating or prescribing of appropriate rules and regulations along with
heavy penalties and sanctions in the workplace to prevent sexual harassment.
b. Create a committee on decorum and investigation of cases on sexual harassment
that is independent from the company and can work alone (like COA). This would
also prevent people in the higher chain of the hierarchy in the workplace to
intervene and fake their way out of their crimes and take responsibility for their
actions.
c. Educating or informing all employers and employees in the business the effects
that may happen when sexual harassment will occur in the workplace.