Ethical Challenges

in doing Business
Lesson 4
 Ethical Concern
RACISM
Some practices may have been
acceptable at certain points in
SEXISM
history but have become
unacceptable with further
development of mankind’s
SLAVERY
mindset. Your Logo or Name Here 2
 RACISM

Prejudice, discrimination, or antagonism directed against someone of a different race

based on the belief that one's own race is superior. Your Logo or Name Here 3
 SEXISM

Prejudice or discrimination based on a person's sex or gender. Typically against

women.
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 SLAVERY

condition in which one human being was owned by another. A slave was considered
by law as property, or chattel, and was deprived of most of the rights ordinarily held
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by free persons.
 Inappropriate Practices and Policies
Are conscious and deliberate wrongdoings
Example:
Discrimination – harm others and withhold the rights of
an individual
Humiliation of People – designed to diminish
psychological needs and dignity
Destructiveness
Acts of Violence

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 Inappropriate Practices and Policies
However, some are not easy to recognize as inappropriate
behavior because not everything can easily be classified as
wrong or right.

Example:
Should I take personal phone calls at work?
Should I buy equipment from a relative?
Should I accept gifts from a supplier?
What do I do if I find out my supervisor is committing fraud?

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Unethical or Inappropriate
Business Practices and
Policies
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Bribery
The act of taking or
receiving something
with the intention of
influencing the
recipient in some way
favorable to the party
providing the bribe.

Paying bribe is unfortunately

quite common and usually
takes the form of a grease
money – Padulas na pera.

Government and private

companies are affected by
this kind of corruption
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 When is it a gift and when is it a bribe?
Gift Giving in the Global
Business Scene
- Used to establish or pay
respect to business
relationships
Bribery
- usually given in relation to
winning a business deal.
- bribes are intended to
expedite required services
or to secure contracts.
- Can be in the form of cash
payments or in kind
(international trips or a
condominium unit)

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 Bribery
Global firms that engage
in bribery face fines and
sanctions.

Preventive Measure
– corporations restrict
the value of gifts to a
specific maximum
amount

Best Practice
- Do not accept gifts from
vendors, suppliers or
anyone who you do Your Logo or Name Here 11
business with
Conflict of Interest
a situation in which a
person is in a position
to derive personal
benefit from actions
or decisions made in
their official capacity.

Example:
- Using company
information for
personal gain
-purchasing goods
from relatives
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3. Harassment
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Harassment
Two Types of Harassment
Quid Pro Quo Hostile Work Environment

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Harassment
Quid pro quo
Latin phrase used in English to mean an exchange of
Quid Pro Quo goods or services, in which one transfer is contingent
upon the other

"a favor for a favor“ – “isang pabor para sa isang pabor”

"give and take“ – “pagbibigayan”, “bigayan at kuhanan”
"tit for tat“ / “this for that” – “magkatumbas na gantihan”
"you scratch my back and I'll scratch yours“ – “kamutin
mo ang likod ko, kakamutin ko ang iyo”

Involving an employer who asks an employee or an

applicant for a sexual favour in return for employment or
job benefit or promotion.

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Harassment
Hostile Work Environment
Involving a person who makes unwelcome
sexual comments or remark, touching or
acting in a sexually inappropriate way
toward an employee.

Exists when one's behavior within a

workplace creates an environment that is
difficult or uncomfortable for another person
to work in

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Practice that you should
observe in workplace….
Do not touch
people
inappropriately

Never date
someone who
works for you

Do not demean
others or make
suggestive
comments
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Practice that you should
observe….

Watch your
language

Watch the jokes that

is being shared, for
what seems
humorous to some
may offend others

Best way to prevent harassment

EDUCATE EVERYONE
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 Forced Overtime
No one should be compelled to work overtime in
excess of the mandatory 8 hours on any given day
against his or her will.

- Employees have the option to refuse

rendering overtime work

- additional time, day or night spent at work requires more

physical and mental effort that can lead to health
degradation to employees.

- Deprives employees of spending time with his/her family

- Companies are required to compensate employees with
overtime pay.
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Forced Overtime
Philippine Labor Code states that overtime work is required in the following case...
• When the country • When it is • When there is • When the work is • Where the
is at war or when necessary to urgent work to be necessary to completion or
any national or prevent loss of life performed on prevent loss or continuation of
local emergency or property or in machines, damage to the work which
has been declared case of imminent installations, or perishable goods. has been started
by the National danger to public equipment in before the eight
Assembly or the safety that is due order to avoid hour is necessary
Chief Executive. to an actual or serious loss or to prevent serious
impending damage to the obstruction or
emergency in the employer or some prejudice to the
locality caused by other cause of business or
serious accidents, similar nature. operations of the
fire, flood, employer.
typhoon,
earthquake,
epidemic, or other
disaster or
calamity.
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Unethical Business Practices

Accounting Overbilling Misleading Making False Customer

Manipulation Advertisements Claims Service Failures
Accounting books Charging more than Misleading To take credit for Failure to comply the
are manipulated and the actual price. consumers by personal gain needs of the
make false financial showing samples of customer.
statements to show the products which
a more favorable the product cannot
result of accounting deliver.
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transactions
Unethical Business Practices

Lay Off High Executive Shortchange of

Compensation materials

An employer can Gives higher salary Shortchanging raw

terminate you for to executives instead materials that are
any reason, or no of workers used for lower total
reason at all. cost that will lead to
poor products.
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Good policies and ethical practices in business
organizations

Business organizations should comply with reportorial requirements as

mandated by government agencies for ethical practices
Sole proprietors should register with the department
of trade and industry while under partnerships and
corporations should register securities and exchange
commission . they must remit and comply with the
monthly quarterly and annually requirements of the
government.

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Good policies and ethical practices in business
organizations

Practice proper office decorum

Examples of office decorum are controlling the

volume of conversations and not too loud that may
disturb other employees. Another is avoiding
personal phone calls and being mindful of
confidential conversation by not telling the
information to the others that may start gossips and
rumors.

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Good policies and ethical practices in business
organizations

Be sensitive to smells and scents that may be unpleasant to the

employees
Maintaining workspace cleanliness is important.
Disposing empty food containers that may lead to
bad odor in the office. Using the restrooms , pantry
and other office areas properly and keeping it clean
and orderly.

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Good policies and ethical practices in business
organizations

Company property or assets are for business and not for personal use

Every employee’s responsibility is to safeguard the

company’s property against lost, theft and misuse
specially that they use everyday. Examples are the
following: computers, laptop, equipment, office
supplies printers, photocopiers and other equipment
used in businesses.

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Good policies and ethical practices in business
organizations

Employees should use communication infrastructure properly and

appropriately

Examples of communication infrastructure: email,

internet , intranet , telephone and other forms of
communications that help do their work.

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Good policies and ethical practices in business
organizations

Employees should always act in the best interest of the employer

Avoid conflicts of interest so any personal gains or

interest should never interfere with company
interest.

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Good policies and ethical practices in business
organizations

There are confidential information that are protected and which

should not be divulged to anyone
Examples of confidential information: trade secrets ,
business plans , pricing schemes , client lists and
supplier ‘s contract , compensation schemes ,
software and computer programs new product
development major and strategic plans. Ensure that
these information are protected .

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Good policies and ethical practices in business
organizations

All financial and accounting records should be accurate, truthful and

reliable.
These protects the good image and reputation of the
company as being credible and high integrity. There
should be no traces of the off-the-record funds or
undisclosed assets. Financial reports should be in
compliance with applicable news.

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