Lesson 1: Business Ethics

Lesson 2: How can business be

considered as an Ethical
Organization

Lesson 3: Ethical Code or Code of

Ethics

Lesson 4: Ethical Principle for

Business

Lesson 5: Legal Responsibilities

Activities and Assessment

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

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.

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.
Types of Business Personal Responsibilities - This refers to the personal beliefs of an individual.
Every individual has certain firm beliefs on certain matters’ such as honesty,
Ethics avoiding criminal acts, obedience to elders, willing to perform accepted
duties, promptly settling the dues etc.

Official Responsibilities - Only persons or human beings occupy positions. A

person who-is occupying a certain position should strictly follow certain
norms and other standards set for that official capacity.

Personal Loyalties - These include loyalties of a subordinate to his superior.

So long as the superior is just and honest, the subordinates shall not face
any problem

Corporate Responsibilities - Corporations, as separate legal entities, have

certain moral responsibilities. The responsibilities may not be identical with
the personal moral codes of the managers who run the company. These
responsibilities may be internal or external
Types of Business Organizational Loyalties - Many people develop a deep sense of loyalty towards
Ethics the organization as an entity that goes beyond their personal interest. This loyalty
has arisen out of love and affection. This factor can be stimulated effectively. If so,
the employees will work hard and help the enterprise in achieving its objectives.

Economic Responsibilities - This type of morality guides the individual actions of

an economic nature. For instance, some businessmen think it immoral to borrow.
However, this type of people is very rare to see

Technical Morality - Professional people should adhere to certain ethical standards

established by competent bodies or persons or by customs. The Code of Conduct
set for them by the concerned institutions governing the profession binds lawyers,
chartered accountants, doctors etc

Legal Responsibility - It refers to the responsibility imposed by law. Does all illegal
are supposed to be unethical also? Everyone should be a law-abiding citizen.
How can Business be
considered as an Ethical
Organization?
Ethical Code
or Code of
ethics
Ethical Code or
Code of ethics

TO ENSURE THAT ALL CODE OF ETHICS ARE . IN ADDITION, CODE OF

THOSE PRINCIPLES ARE PRINCIPLES ADOPTED BY ETHICS IS A WRITTEN SET
PRACTICED BY ALL AN ORGANIZATION TO OF GUIDELINES ISSUED BY
EMPLOYEES IN THE ASSIST THOSE IN THE AN ORGANIZATION TO ITS
ORGANIZATION, CODE OF ORGANIZATION CALLED WORKERS AND
ETHICS, OR CODE OF UPON TO DECIDE; IT IS MANAGEMENT TO HELP
CONDUCT ARE CRAFTED ABOUT UNDERSTANDING THEM CONDUCT THEIR
TO BE THE GUIDING LIGHT THE DIFFERENCE ACTIONS IN
OF THE BUSINESS IN BETWEEN “RIGHT” AND ACCORDANCE WITH ITS
ENSURING GOOD ETHICAL “WRONG” AND TO APPLY PRIMARY VALUES AND
PRACTICE THIS UNDERSTANDING TO ETHICAL STANDARDS.
THEIR DECISION.
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.

CODE OF PRACTICE - it is adopted by a profession or by a

governmental or nongovernmental 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

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. Each
individual needs ethics to live in a disciplined manner. Because
of the significance of ethics in day-to-day living, some are put
into law. However, it may be difficult for some to be legislated.
Another important business ethics organization in the Philippines
is the Philippine Chamber of Food manufacturers, Inc. (Food
Chamber). Selected Food chamber committees indicate
participation of the organization and its members in the task of
responsible, self-imposed moral guidelines, such as the following:
Regulatory and Scientific Affairs - These provide linkage with institutions and its
attached agencies, i.e., Department of Health – Food and Drug Administration (DOH-
FDA), Food and Drug Administration – Noncommissioned Officer (FDA-NCO),
Department of Science and Technology (DOST), World Health Organization (WHO),
Foreign Investments Act (FIA), and more, to be able to provide technical support and
enable members and other stakeholders to improve product quality, production
capability, cost competitiveness, market share, environmental issues, and more.

Small and Medium Enterprise (SME) Group - As seen in the Big BrotherSmall Brother
Programs with SMEs – assisting members and stakeholders in market-matching
activities, as well as in securing appropriate raw material sourcing and allocation at
preferential arrangements – participate in both local and international events to
promote our Philippine products.

Legislative - The legislature helps obtain maximum support in terms of fiscal and non-
fiscal incentives and other related benefits, i.e., FDA laws, position statements,
constitutions and by-laws, House Bills, Senate Bills o Food Chamber industry position
i.e., health, environment, and food
 Promise-
Honesty Integrity keeping and
trustworthiness
Ethical
principles for
Concern for
Business Loyalty Fairness
Others

Respect for Commitment to

Law abiding
Others excellence

Reputation and
Leadership Accountability
Morale
The impact shown
Who will benefit?
on the diagram
measures and
answers the Who will be harmed?
following questions

Whose right will be denied?

Who can exercise their right?

 Pre-conventional
stage – where
Post-conventional
people make
The categories stage – where
people see beyond
decisions based on
concrete rewards
authority, laws, and
based on level norms and follow
their self-chosen
and punishments
and pressing self-
interest
of moral ethical principle.

judgment are
the following: Conventional stage –
where people observe the
rules according to the
potentials of ethical
behavior held by groups
or civilizations, such as
society, family, or peers
Legal Responsibilities
Corporation Code (Batas
Pambansa Bilang 68)

Consumer Act of The

Philippines (R.A. 7894)

Minimum Wage Law

Migrant Workers and Overseas

Filipino Act of 1995 (R.A. 8042)
Environmental 1586 1990 2004
legislation, Presidential
Decree (P.D.)
R.A. 8749
includes the
R.A. 9725 looks
at the Clean
which include 1586:
established an
Clean Air Act of
1990
Water Act of
2004
environmental
the following: impact
statement
system.

R.A. 6969 is
concerned with R.A. 9003 is
the Toxic concerned with R.A. 9512 gives
Substances and the Philippine permission for the
Hazardous and Ecological Solid Environmental
Nuclear Waste Waste Awareness and
Control Act of Management Act Education Act of
1990 of 2000 2008

1990 2000 2008