At the end of this lesson:

1. I can illustrate how fairness, accountability, transparency and stewardship is observed in business
and non- profit organizations
2. I can formulate a “code of ethics” that reflect core principles derived from analyses.

FOUNDATION OF THE PRINCIPLES OF BUSINESS ETHICS:

A Good Corporate Governance in all businesses and even in non-profit organizations such as foundations
is very important in order to build trust and confidence with the investors, donors, and the community in
general.
A good corporate governance builds the integrity of the institution.

Core Principles of a Good Corporate Governance:

• FAIRNESS

Fairness comes from the old English word faeger, which means “pleasing or attractive.” It is the quality of
making judgments that are free from discrimination. Fairness in the context of a business organization
involves balancing the interests involved in all decision-making including any decisions related to hiring,
firing (including the investigatory process), and the compensation and rewards system. Hiring the right
people is one of the most important decisions an organization makes.

• ACCOUNTABILITY

Accountability is the obligation of an individual or organization to account for its activities, accept
responsibility for them, and to disclose the results in a transparent manner.

Accountability in the context of a business organization is the obligation to demonstrate that work has
been conducted in compliance with agreed rules and standards or to report fairly and accurately on
performance results vis-à-vis mandated roles and/or plans.

• TRANSPARENCY

Transparency is defined as being authentic in the way an organization message themselves externally – to
stakeholders, to prospective customers and talent, and within the community. It allows stakeholders to
understand whether the activities of social institutions provide a genuine service to civil society and
whether money is used appropriately.

Thus, transparency means there is lack of hidden agendas or conditions, accompanied by the availability
of full information required of collaboration, cooperation, and collective decision-making.

• STEWARDSHIP

In Biblical terms, stewardship is defined as utilizing and managing all resources God provides for the glory
of God and the betterment of His creation. That definition plays a critical role in today’s business
landscape. In the context of business organization, stewardship refers to taking responsibility for the
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business and the effects it has on the world around it. This involves considering more than just the
bottom line and looking at elements such as values, ethics, and morals

CODE OF ETHICS

Business and Ethics are always interrelated. Ethics guides us that we are doing the right thing. In the
conduct of our business, we need to follow ethical standards of the company.

Ethics is derived from the Greek word “ethikos” which means “having to do with character. The Latin
word for ethos is “mos” (or “mores”). That is why we known Ethics as the Moral Science or Moral
Philosophy. It refers to the theory of morality of right conduct.

Definitions of Business Ethics

1. Business Ethics is the study of what is right and wrong on human behavior and conduct in business.

2. Business Ethics is the study of perceptions of people about morality, moral norms, moral rules, and
ethical principles as they apply to peoples and institutions in business.

3. Business Ethics is the study, evaluation, analysis and questioning of ethical standards, policies, moral
norms, and ethical theories that managers and decision makers use in resolving moral issues and ethical
dilemmas affecting business.

But how can business be considered as an ethical organization? Previously, you learned about the core
principles of good governance in business namely accountability, fairness, transparency, and stewardship.

Ethical organizations are based on these core principles. A business with good practice of accountability
makes sure that all the financial obligations from its debtors are paid on time. Accountability of a
company can also be shown in proper planning, hiring, and keeping employees, and budget management
and reporting. An ethical organization also based on the principles of fairness. Employees who feel
secured, because there is no impartiality, often stays with the company organization build. Meanwhile,
transparency and stewardship also are known characteristics of good governance in an organization.
Transparency in business builds the trust of the employees to the company, and the stakeholders such as
the suppliers, investors, and of course the customers. Whereas stewardship is an ethical practice of
managing the resources of the company well.

To ensure that all those principles are practiced by all employees in the organization, Code of Ethics, or
Code of Conduct are crafted to be the guiding light of the business in ensuring good ethical practice.
What is Code of Ethics?

ETHICAL CODE OR CODE OF ETHICS

- are principles adopted by an organization to assist those in the organization called upon to decide;
it is about understanding the difference between “right” and “wrong” and to apply this
understanding to their decision. In addition, Code of ethics is a written set of guidelines issued by
an organization to its workers and management to help them conduct their actions in accordance
with its primary values and ethical standards.
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o CODE OF CONDUCT: it is a document designed to influence the behavior of employees. They set out the
procedures to be used in specific ethical situations and delineate whether a violation of the code of ethics
occurred and, if so, remedies should be imposed.

o CODE OF PRACTICE: it is adopted by a profession or by a governmental or non-governmental

organization to regulate that profession. It may be styled as a code of professional responsibility, which
will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account
of what behavior is considered “ethical” or “correct” or “right” in the circumstances.

o CODE OF ETHICS is not written solely for the purpose of doing ethical business practice. It can also be
applied and practiced in school, government, and even professional groups.

Everyday we make different decisions that will impact our future.

Decisions that will lead to actions; actions that promote a high level of
standard of ethics at all times. Action such as helping others.

The Book of Philippians 2:3-5 says, “Do nothing out of selfish ambition
or vain conceit. Rather, in humility value others above yourselves, not
looking to your own interests but each of you to the interests of the
others.” Helping others is a good business, right? We are most likely to
succeed as an entrepreneur if we are motivated by helping solve other
people’s problems. When we work for Christ and bring people to Him, we will feel the need to know Him
better. We will hunger and thirst for righteousness and ask God for His help. Our faith will be made
stronger as we learn more about salvation. Troubles and cares will cause us to study our Bibles and pray
more. We will grow stronger spiritually, will get to know Christ better, and will have a happy, rewarding
life.

CODE OF ETHICS Examples:

“The Google Code of Conduct is one of the ways we put Google’s values
into practice. It’s built around the recognition that everything we do in
connection with our work at Google will be, and should be, measured
against the highest possible standards of ethical business conduct. We
set the bar that high for practical as well as aspirational reasons: Our commitment to the highest
standards helps us hire great people, build great products, and attract loyal users. Respect for our users,
for the opportunity, and for each other are foundational to our success and are something we need to
support every day.

“In performing their job duties, Amazon.com employees should always

act lawfully, ethically, and in the best interests of Amazon.com. This
Code of Business Conduct and Ethics (the "Code of Conduct") sets out
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basic guiding principles. Employees who are unsure whether their conduct or the conduct of their
coworkers complies with the Code of Conduct should contact their manager or the Legal Department.
Employees may also report any suspected noncompliance as provided in the Legal Department's
reporting guidelines referred to in paragraph IX below.”

“We believe the Twitter Developer Community should maintain a

positive and inclusive experience for everyone. Twitter is committed to
providing a friendly, safe, and welcoming environment for all
participants and expects everyone to treat each other with respect and courtesy. The following Code of
Conduct outlines our expectations for participant behavior as well as the consequences for unacceptable
behavior. We require that all participants abide by this Code within the Community and any community-
related events.”

“Employees of Facebook, Inc., or any of its affiliates or subsidiaries

(“Facebook”), and others performing work for Facebook or on its behalf,
collectively referred to in this code as “Facebook Personnel”, are
expected to act lawfully, honestly, ethically, and in the best interests of the company while performing
duties on behalf of Facebook. This code provides some guidelines for business conduct required of
Facebook Personnel. Persons who are unsure whether their conduct or the conduct of other Facebook
Personnel complies with this code should contact their manager, another Facebook manager, Human
Resources, or the Legal Department. This code applies to all Facebook Personnel, including members of
the Board of Directors (in connection with their work for Facebook), officers, and employees of Facebook,
Inc. and its corporate affiliates, as well as contingent workers (e.g., agency workers, contractors and
consultants) and others working on Facebook’s behalf. This code is subject to change and may be
amended, supplemented, or superseded by one or more separate policies. If any part of this code
conflicts with local laws or regulations, only the sections of this code permitted by applicable laws and
regulations will apply. Any policies that are specifically applicable to your jurisdiction will take precedence
to the extent they conflict with this code.”

“Being a member of the Spotify band comes with many good things and
responsibility is one of them. Our culture, our reputation and the vibe of
our work environment are made up of how each and every one of us
acts, talks and behaves, every day. So we all answer to the other band
members, our stakeholders, artists, Spotify users, and the general public. This is our Code of Conduct and
Ethics (the “Code”), it is based on our policies and our values (innovative, collaborative, sincere,
passionate, playful). Mostly, it describes our three main rules and how to make sure we live up to them:
(1) Do the right thing. Always act with honesty, integrity, and reliability. Keep moral and ethical standards
sky-high. (2) Be nice. Treat people with dignity and respect, regardless of who they are and where they
came from. Stay decent and courteous in all relationships. (3) Play fair. Don’t cheat. Be careful to
baterests of all groups (stakeholders, artists, users, employees and the general public) when you go about
our business.

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Activity 1:
Identify what principle (Accountability, Fairness or Transparency) is being applied in the following
situations.
_______________1. Ms. Cruz uses rubrics in evaluating students’ task performance.
_______________2. Manuel L. Quezon High School implements guidelines in conducting school activities
like field trip.
_______________3. Mrs. Delos Reyes entertains queries of students on the computation of their grades.
_______________4. Ms. Jimenez, the department head, reported the financial statement of the
department in full details.
_______________5. The school’s guard reported the incident to the guidance office.

Activity 2:
Answer the following questions:
1. Discuss why ethics is important in business? 5pts
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
__________________________________________________.
2. Explain the phrase, “Ethics is the unwritten law written in the hearts of men.” 5pts.
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
__________________________________________________.

Activity 3: CODE OF ETHICS

Assuming you are starting a new company. Make your own company logo then write a code of ethics for
the firm. 15pts.
5 pts- LOGO
10pts- Content of Code of Ethics

Note: There can be a code of ethics for teachers, accountants, engineers, lawyers, doctors, nurses, and all
other professionals to ensure that they are following the same ethical standards in their professional
practice.

References:
https://www.websitepolicies.com/blog/code-of-conduct-ethics
https://www.i-sight.com/resources/code-of-ethics-template/