Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF SAN PABLO CITY

BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

Quarter 3-Week 3

Name of Learner
Grade level and
Section
Date

CODE OF ETHICS
Learning Competency
Formulate a “code of ethics” that reflect core principles derived from analyses
ABM_ESR12-IIIa-d-1.6
Learning Context

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.
But first, let us define what is Ethics?

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.

Learning Module for Business Ethics and Social Responsibility 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

These 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.

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.

o There is 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.
Codes of Right Conduct

Operating with integrity and with reference to codes of right conduct is playing an
increasingly significant role for sustainable business today. This means businesses must
operate using good and morally acceptable policies and practices.

Individually, people contribute on a daily basis to the common good like when people wait
for their turns, when they don’t take more than they need and leave some for others, when they
work cooperatively on common or group goals, when they treat others as they treat themselves.
Individually, people can also contribute to a greatest good like when they undertake an
action that provides an example for others to follow because of the obvious benefits or
improvement for the common good.

CODE OF CONDUCT
Every organization must have a code of right conduct. A code has value just like an internal
guideline and an external statement of corporate values and commitments.
A well-written code of conduct spells out an organization’s mission, values and principles,
connecting them with standards of professional conduct. The code expresses the values the
organization desires to promote in leaders and employees.

EXAMPLE OF CODE OF CONDUCT

Policy elements
Company employees are bound by their contract to follow our Employee Code of Conduct
while performing their duties.
 Compliance with Law
All employees must protect the company’s legality. They should comply with all
environmental, safety and fair dealing dictations of local and international laws. employees
should also respect our company’s policy for social corporate responsibility.
 Respect in the Workplace
All employees are bound by our company’s equal opportunity policy. They should behave in
a respectful manner towards their colleagues. Any kind of discriminatory behavior,
harassment or victimization is prohibited. This applies to all aspects of our workplace from
recruitment and evaluation processes to interpersonal relations between employees. We
won’t tolerate this behavior and we’ll take disciplinary actions when appropriate.
 Protection of Company Property
All employees should treat our company’s property, whether material or intangible, with
respect and care.
 Professionalism
All employees must show integrity and high quality professionalism in the workplace:
 Personal Appearance  Absenteeism and Tardiness
 Corruption  Conflict of Interest
 Job duties and authority
Learning Tasks 1:
I. Multiple Choice.

Below are questions related to formulation of “code of ethics” that reflect core principles
derived from analyses Read carefully the given statements after each question. Write the letter
of the correct answer.

1. - 3 Select statements that best describe Ethics

1. A. morally correct behavior C. making lots of money
B. an ethnic minority D. a foolish person

2. A. A set of criminal laws C. A set of classroom rules

B. A set of moral principles D. Telling half-truth

3. A. It is a code of conduct for a particular profession and not related to personal life.
B. It is a field of study that focuses on faith and religion
C. It is a branch of philosophy that deals with morality
D. It is what we do when others are watching

4. Which of the following are the functions of a Code of Ethics?

A. It can express a shared commitment on the part of a professional society’s members to

strive and to satisfy certain ethical standards and principles.
B. It can help foster an environment in which ethical behavior is the norm.
C. It can serve as a guide or reminder in specific situations.
D. All of the above.

5. Which of the following is a practice of fair treatment of workers at workplace?

A. Recreation facilities at the workplace.
B. Rights of workers to fairness and dignity.
C. Right of workers to have a share in company’s profit.
D. None of the above.

6. Ethical issues do not exist in accounting because the field involves primarily
objective data.
A. true B. false

7. Which of the following is the study and practice of decisions about what is good or right?
A. Law C. Ethics
B. Morals D.Business

8. A businessman who owns a medical store in a small town is the only outlet that sells face
mask. There is a great necessity and high demand for the use of the item due to COVID-19
pandemic, so he charges irrational amount of doubling the price. The community gets mad
of the situation. This business practice is most likely:
 A. Ethical because it is not illegal for the owner to set its prices based on maximizing
profits.
B. Ethical because the owner focuses only on the impact of decisions on his business.
C. Unethical because business operates in a community and communities have
expectations for behavior of individuals, groups, and businesses.
D. None of the above.

9. The following statements are example of code of conduct, which among them falls under
Respect in the Workplace?
A. Replacement of expired stocks
B. Regular maintenance of company’s printer assigned to you.
C. Constructive criticism of a supervisor to subordinate
D. Wearing of corporate attire during office hours.

10. The “We do not accepts gifts” notice of a government unit is an example of which policy
element?
A. Compliance with law
B. Professionalism
C. Equal opportunity policy
D. All of the above
E. None of the above.

Learning Task 2: How ethical are you?

1. After finding a diamond ring in a hotel room. You:

A. Keep it because you believe in the finder’s keeper philosophy.
B. Turn it over to the lost and found department of a hotel
C. Consider it yours unless the previous occupant looks for it and the
front desk calls your attention to turn over it.
D. None of the above.

2. After lunch, the waiter brings the check. Upon checking it, no dessert,
and drinks to the bill. You:
A. Pay the bill. It was their mistake.
B. Call the waiter and ask him to recompute the check and add the dessert
and drinks.
C. Pay the bill and give him the bigger tip since you saved money because
of the dessert and drinks that were not included in the bill.
D. None of the above.

3. In a team meeting, your boss congratulates you for a project that

was done by someone else from the team. You:
A. Stay silent in the meeting and later approach your co-worker you are
sorry the boss did that
B. Explain to boss immediately that it was not your work and give credit
where credit is due.
 C. Never say anything about it.
D. None of the above.

4. Your company has a policy that prevents employees from accepting gifts.
The policy also requires that you inform your manager about the gift. A
supplier you have known for several years offers you a hotel gift
certificate. You:
A. Accept the gift and tell your manager afterward.
B. Accept the gift and do not tell your manager about it.
C. Inform your boss and hope for approval.
D. None of the above.

5. You are with some friends at the park. There are three different bins in
the area. A friend threw an empty soda can in the paper bin.
You:

A. Better not say anything.

B. Move the can into the correct bin.
C. Give him stick to take the can out and advise him to put it in the
correct bin.
D. None of the above

Learning Task 3.

CASE STUDY: Sarah -Matteo Wedding

Sarah Geronimo and Matteo Guidicelli have a

“secret marriage,” as the media described it, last Feb.
20 at the Victory Christian Fellowship Church,
followed by a “secret” post-marriage dinner with
Matteo’s family and very close friends (including
Swatch Lady Virgie Ramos who reportedly reserved
the venue) at the Ministry of Crab restaurant in
Shangri-La at the Fort, BGC.

However, Atty. Romy Macalintal asserts that

there is no such thing as ‘secret marriage’ because a
marriage cannot be celebrated without at least two
witnesses and the person authorized to solemnize it.
Hence, the Sarah-Matteo marriage cannot be secret because of the presence of those
witnesses aside from some friends or relatives who might have been invited to attend the
ceremony.
 He added that it might be “secret” to the parents of the bride (Divine and Delfin) but not to
the entire world. It is a common knowledge that Sarah’s
parents are against Matteo (and all the other actors linked to her before).

Was Sarah’s decision to marry Matteo, morally right? Did she disobey her parents? In
Ephesians 6: 1-3 it says, “Children, obey your parents in the Lord, for this is right. Honor your
father and mother, which is the first commandment with promise: that it may be well with you
and you may live long on earth.”

Question: If you were Sarah, whom do you follow? Your heart or the law of
God? Expound your answer.

Learning Task 4:
Formulate and list down your own ethical codes to serve as your guide in
your own daily living. Such code of ethics should be code of conduct, code of
ethics and code of practice - as ABM student. Separate and subtitle each group
in your list with a minimum of five in each category.

Scoring Rubric for Learning Task 3

4 Ideas were substantial, precise with distinct knowledge of the topic and evident
control of usage and sentence formation.
3 Ideas were sufficient, with adequate knowledge of the topic and sufficient
control of usage and sentence formation.
2 Ideas were insufficient with limited knowledge of the topic with limited usage
and sentence formation.
1 No evident knowledge of the topic and minimal control usage and sentence
formation.
Reflection

Write your personal insights about the lesson using the prompts below:
I understand that ________________________________________________.

I realize that ____________________________________________________.

References for learners

Alternative Delivery Mode, Business Ethics and Social Responsibility Grade 12 Manila, First
Edition, 2020
Racelis, Aliza 2017. Business Ethics and Social Responsibility 1st Edition, Rex Bookstore
Salvador, Samuel M. et.al. 2017. Principles and Practices of Management and Organization
2nd Edition. Allen Adrian Books.
Prepared by: ______ANILES A. DUMA_______
Writer

Reviewed by:
_____________________________
Learning Resource Evaluator
(Master Teachers, Subject Specialist)

_____________________________
_____________________________
School Head Public School District
Supervisor

_____________________________
_____________________________
Education Program Supervisor (Subject) Education Program Supervisor
(LRMS)

Approved by:
_____________________________
CID - Chief Education Program Supervisor