Guagua National Colleges

Sta Filomena, Guagua, Pampanga, Philippines

ETHICS AND ACCOUNTABILITY IN

PUBLIC SERVICE

Submitted by:

Arvin P. Tuazon

Submitted to:

PROF. EMERENCIANA NAVARRO, CPA, MBA

A Report Presented to the College of Business Administration

Guagua National Colleges Inc.

August 15, 2022

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Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

1. Public accountability is the foundation of integrity. Agree or Disagree? Why?

I AGREE. Because greater transparency and accountability in any sector are significantly
important in carrying out the public sector agenda.

If the meaning of accountability is a concern as the foundation of integrity, it may have different
meanings for different people. Many of us think that public managers must be holding an
individual or department responsible for program success and failure. However, for me,
accountability is much more than serving out rewards and punishment, though this feature is an
essential element.

In this argument, I would like to emphasize why I believe that public accountability is the
foundation of integrity. We know that it is critical to instill the ideals of accountability, equity,
and integrity as the foundation of a more open and clear decision-making and governance
structure for public sector assets. However, strong governance in the public sector will then
enable mechanisms that can have a substantial impact on organizations’ attempts to minimize
risks and achieve their goals.

2. What does transparency means in economics?

Economic transparency refers to banks and other financial institutions that have made data
available about their financial position and condition. However, the definition depends on the
perspective of different research areas through which it is examined, mainly monetary
economics, international finance, corporate finance, and others (e.g. public economics,
international trade, asset pricing, and labor economics).

The WTO defines economic transparency as a “degree to which trade policies and practices, and
the process by which they are established, are open and predictable”.

United Nations Conference on Trade and Development (UNCTAD, 2012) relates transparency as
“a state of affairs in which the participants in the investment process are able to obtain sufficient
information from each other in order to make informed decisions and meet obligations and
commitments”.

According to the National Bureau of Economic Research (NBER), there are three main branches:
transparency in economic policy, in the institutional structures surrounding the markets, and in
the corporate sector.

2.1 What is being transparent?

 First, the access and proper disclosure of financial information, such as a company's

audited financial reports.
 Second, the clarity with investment firms and funds surrounding the various fees that'll
be charged to clients.
 Third, transparency for consumers includes proper disclosure of bank fees and the
interest rate charged by credit card companies.
 Fourth, transparency to bits helps reduce uncertainty and wild stock price
fluctuations because all market participants can base decisions of value on the same
data.
 Lastly, price transparency is the extent to which all information regarding a stock's price
(such as its bid prices, ask prices, and trading quantities) is available to traders.

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

3. What is a conflict of interest?

A conflict of interest occurs when an entity or individual becomes unreliable because of a clash
between personal (or self-serving) interests and professional duties or responsibilities. Such a
conflict occurs when a company or person has a vested interest, such as money, status,
knowledge, relationships, or reputation, which puts into question whether their actions,
judgment, and/or decision-making can be unbiased. When such a situation arises, the party is
usually asked to remove themselves, and it is often legally required of them.

3.1 Is it an ethical issue?

YES! Because, conflict of interest is an issue not only for business leaders, government officials,
and researchers but also for academicians. As an ethical issue, conflict of interest involves
competing interests as well as raises questions related to an individual's integrity

3.2 How does conflict of interest arise?

First, a conflict of interest may occur when a person's or entity's vested interests raise a question
of whether their actions, judgment, and/or decision-making can be unbiased. Then, in business,
a conflict of interest arises when a person chooses personal gain over duties to their employer,
or to an organization in which they are a stakeholder, or exploits their position for personal gain
in some way. Lastly, conflicts of interest often have legal ramifications.

4. In your opinion, how can you encourage internal whistleblowers?

From my personal standard point, to encourage an internal whistleblower I think I must consider
these things. First, I must establish and communicate the organization’s support for ethical
behavior and internal disclosure, next, I must put clear procedures in place, it is very important
that the process of reporting, and the way the company investigates such reports, should be set
out clearly. Then, I need to ensure a timely response to set out and adhere to a clear, efficient
timeframe in the investigation. After that, I’m going to implement internal controls because
internal controls are key in detecting fraud: failure to follow such controls is a red flag that
something or someone has gone astray. Lastly, I will establish an anti-retaliation policy. Because
many people do not report wrongdoing because they fear retaliation. Encourage employees to
speak up via clear, protective anti-retaliation policies.
4.1 What does whistle-blowing have to do with ethics?

Whistleblowing has to do with ethics because it represents a person’s understanding, at a deep

level, that an action his or her organization is taking is harmful that it interferes with people’s
rights, or is unfair or detracts from the common good.

4.2 Are there laws to protect the whistleblowers?

None! The Philippines, so far, does not have a national whistleblower protection law, although a
Senate bill for such protection has been filed, authored by former Senator Dick Gordon.
5. What is corruption?
In my judgment, Corruption is a form of dishonesty or a criminal offense that is undertaken by
a person or an organization that is entrusted in a position of authority, to acquire illicit benefits or
abuse power for one's personal gain. Corruption may involve many activities which
include bribery, influence peddling, and embezzlement and it may also involve practices that are
legal in many countries.

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

5.1 Who is affected?

From my point of view, corruption affects us all. It threatens sustainable economic development,
ethical values, and justice; it destabilizes our society and endangers the rule of law. It
undermines the institutions and values of our democracy. But because public policies and public
resources are largely beneficial to poor people, it is they who suffer the harmful effects of
corruption most grievously.

To be dependent on the government for housing, healthcare, education, security, and welfare,
makes the poor most vulnerable to corruption since it stalls service delivery. Delays in
infrastructure development, poor building quality, and layers of additional costs are all
consequences of corruption.

5.2 Is there a more basic reason for our economic poverty?

Yes, although from my perspective, there is no single answer to the question. But we shall see
that there are a lot of economic factors at work that helps to explain the reason for our economic
poverty. Before I address some basic reasons for our economic poverty, my dearest professor
Emerenciana Navarro, CPA, MBA I would like to encourage you to think or rate in our mind
the nature of the government’s response to poverty and the impact of their responses. If you are
finished grading our government Ma’am Navs, I would like to reiterate that one-fifth of the
population lived below the poverty line. The poorest populations work in agriculture and live in
areas prone to natural disasters compared to the wealthier population. There is an inadequate
number of available good jobs and a lack of investment in education that leads to such a high
inequality of income. However, the government has plans focused on reducing poverty to
improve the lives of the poorest segments of the population.
Economic Poverty occurs for many reasons, but in the Philippines, there are recurring factors
that have slowed the development progress. One of the basic reasons for our economic poverty is
our Economic growth because it is quite low compared to our neighboring countries. GDP
growth is comparable, however, GDP per capita in relation to the increase of population is much
slower. Poverty directly impacts economic growth due to credit constraints and the
underdevelopment of the financial market and inequality in income and assets.
Another cause of poverty in the Philippines is the rise of unmanaged population growth. Because
the poor tend to have bigger families, they are unable to access health services or sex education,
which leads to more children and the continuation of that cycle. The pattern of growth is
common in rural areas, but there has been a rise in poverty in urban areas. Added to this, our
cities in the Philippines have been faced with an increase in poverty due to a lack of well-paid
employment.
One of the main causes of poverty in the Philippines is the vulnerability to natural disasters.
Natural disasters in the Philippines have caused US$23 billion in damages since 1990, which
continues to delay the development process. According to the DW, the Philippines is the most
vulnerable country to typhoons, earthquakes, and volcanic eruptions in the world.
Over the above, the frequent occurrences cost the country lives, illness, malnutrition, and denial
of education and health services. Filipino farmers are some of the most vulnerable because
floods and landslides severely affect their crops and income.
On top of every cause of economic poverty is the lack of research on poverty and effective
policies to implement to prevent further damage. This lack of research has caused deficient
targeting in poverty programs and unsuccessful current processes. Until more research is done as
to how exactly to tackle the poverty trap, programs will not be effective
5.3 Is corruption the cause or merely an effect?

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

It seems to me that corruption is caused and not an effect because it causes by man-made factors
like capitalism, lack of transparency and accountability, nepotism, tribalism, poverty, and weak
social and political structures, and poverty. This vice lowers the pace of national development,
weakens societies, and increases poverty. Therefore, people should work hard to ensure they
fight corruption by educating their members on the importance of transparent practices. Also,
government systems should be programmed to detect and eliminate this vice, and those found
promoting it should face harsh penalties.

5.4 How shall we combat corruption?

We all know that there is no silver bullet for fighting corruption. Our politicians have made a lot
of promises to stop corruption, but do they fulfill these? Many countries have made significant
progress in curbing corruption, however, practitioners are always on the lookout for solutions
and evidence of impact. Here are five methods how we can fight corruption:
First, we should end impunity. Because effective law enforcement is essential to ensure the
corrupt are punished and break the cycle of impunity, or freedom from punishment or loss.
Successful enforcement approaches are supported by a strong legal framework, law enforcement
branches, and an independent and effective court system.
Next, better yet reform our public administration and finance management. A reform focussing
on improving financial management and strengthening the role of auditing has agencies have in
many countries achieved a greater impact than public sector reforms on curbing corruption
Then, we must promote transparency and access to information. The reason why there are lots of
countries that are successful in curbing corruption is because they have a long tradition of
government openness, freedom of the press,transparency and access to information. Access to
information increases the responsiveness of government bodies, while simultaneously having a
positive effect on the levels of public participation in a country.
After that, it is very important to empower our citizens. Because strengthening citizens’ demand
for anti-corruption and empowering them to hold government accountable is a sustainable
approach that helps to build mutual trust between citizens and government. For example,
community monitoring initiatives have in some cases contributed to the detection of corruption,
reduced leakages of funds, and improved the quantity and quality of public services.
On a final note, it is significant to close our international loopholes. Why? Because without
access to the international financial system, corrupt public officials throughout the world would
not be able to launder and hide the proceeds of looted state assets. This is the reason why former
President, Ferdinand E. Marcos Sr. easily hides his ill-gotten wealth . Major financial centers
urgently need to put in place ways to stop their banks and cooperating offshore financial centers
from absorbing illicit flows of money.
5.5 What are the best ways to solve the problem of corruption?

As I have mentioned earlier, there is no silver bullet for solving the corruption. Our public
officials, whether in the local or the national domains, spend a great deal on their campaign for
election or re-election (whatever the case may be). Campaign spending on ads and other
materials would cost millions of pesos. Like in our recent national election, our President, Bong-
bong Marcos Jr. spent PHP624 Million in his campaign, if we do our math he will never earn this
amount of money from his salary as the president of the Philippines.(Note, there is no hate for
the president this is for example purposes only.) However, in this case, the sum of money would
eventually push politicians to compensate for these losses, the only possible way is to divert
public funds into their own pockets.

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

Going back to the question, in order to solve corruption there is a need for structural reforms in
dealing with the issue of corruption, but such reforms could hardly scratch the surface. What a
developing country like the Philippines needs is to institutionalize the following action plans.

To solve the problem of corruption, we must first promote transparency and the availability of
information, that’s why I strongly supported prioritizing the “full disclosure bill” of our former
Vice President, Leni Robredo, as I also believe that transparency is one of the key elements to
solve corruption, which, she said, is a result of both institutional and individual weaknesses. The
other elements are accountability and people empowerment.

Next in line in solving the corruption is we Filipino citizens must involve in the issue to give
impact not just individuals, but whole communities as well. For this, it is important for us to
organize think tanks and organizations from the grassroots that will bring discourse on
corruption into the mainstream.

Down the line in solving the corruption problem is the crackdown on money laundering. I do
believe that one of the very reasons why public officials feel enamored to steal from public
coffers is the idea that they can always get away with it. The fact that there are institutional
loopholes maintains the culture of corruption, along with the ineffective implementation of laws
that are supposed to safeguard the public interest from graft.

Most importantly in solving the corruption problem, we must elect the most competitive officials
with clean track records and the best platform. We need to break the system! How can we solve
the corruption issues and move forward if we re-elect those leaders who have pending cases or a
history of graft and corruption for example, Sen. Jingoy Estrada, Former President now
Conggreswoman GMA, or Sen. Bong Revilla who have their ongoing cases and history of
corruption. Imagine how Filipinos choose their leader. Like in the case of these 31 million
Filipinos who voted for Sen. Robin Padilla who doesn’t even understand some legal terms and
plot a resolution or laws. In the end, how can we solve the issue of corruption if they entrusted
the power to this actor over those veteran and competitive lawyers and lawmakers?

6. What are some of the “truly significant matters of clear and well-defined policy”
that justify making exceptions to the doctrine of employment at will?
When companies cannot fire employees or change employment terms? I would want to address
some significant matters of clear and well-defined policy that justify making exceptions to the
doctrine of employment at will.

Can employers fire someone without a good reason? The employment at will doctrine allows
employers to terminate some employees without having to give a reason.

Most Filipino workers are covered under the provisions of employment at will, meaning that
they can be discharged for any reason – or no reason at all – without cause or notice, as the
employer sees fit. Employment at will also means that employers can change the terms of
employment unless employees are covered by any of the exceptions referenced below.

These exceptions to employment at will provide legal protections for workers who are covered
by law, collective bargaining agreements, contracts, public policy, and other circumstances
and  situations where employee rights are protected. If you’re concerned about
having your employment terminated, it’s a good idea to determine whether any of these
exceptions apply.

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 Guagua National Colleges
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What employers can do under employment at will? Some of the things that employers can do
under employment at will include terminating employment, reducing wages, changing employee-
benefits coverage, limiting hours worked, or changing an employee’s job content and work
schedule. Having formal job descriptions does not restrict employers from assigning duties not
incorporated into job descriptions or from changing an individual’s work responsibilities.
What are the exceptions to employment at will? Not all employees or all situations are subject to
the provisions of employment at will. Often, when you accept a job offer, your agreement will
state whether you’re an employee-at-will, or covered under another type of contract. The job
offer letter you receive (or the company employee handbook) may stipulate that
you must acknowledge that you are employed at will.

Here are the following are circumstances where employment at will may not apply:

Collective Bargaining Agreements. Employees covered by union or association agreements

often have contractual provisions that stipulate when and how an employee can be fired. For
example, the agreement may state that employees may only have their employment terminated
for cause. Unions usually have a well-defined appeals process as a recourse for members who
believe that they have been wrongly discharged.

Company Policy. Company policy may detail when and how employment can be terminated,
and whether warnings need to be provided to employees at risk of termination. In most cases,
the employer will follow the guidelines established in the policy when terminating employees.

Individual Employment Contracts. Workers in some industries and at some organizations

have employment contracts that outline the terms of employment and conditions for discharge.
The employer must follow the terms of the agreement and may otherwise be subject to
a wrongful termination action.

Public Policy. Most states recognize that certain public policy guidelines limit the exercise of
employment at will by employers. For example, employers are prohibited from firing employees
who have filed claims for workers compensation, workers who have reported legal
transgressions by their employer, or employees who refuse to violate laws as they carry out their
duties. Public policy guidelines also protect workers engaging in acts that are in the public
interest, such as serving in the military reserve or on a jury.

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 Guagua National Colleges
Sta Filomena, Guagua, Pampanga, Philippines

Chapter 19

ETHICS AND ACCOUNTABILITY IN

PUBLIC SERVICE

MARKETING
ADVERTISING &
PRODUCT SAFETY
PART I

PROF. EMERENCIANA NAVARRO, CPA, MBA

Reported by: Arvin P. Tuazon

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Sta Filomena, Guagua, Pampanga, Philippines

Ethical Issues in Marketing

Introduction:

• Unethical marketing conveys the wrong messages about your product and services to
potential customers

• These activities can result in legal issues, but more importantly, they can damage your
brand’s reputation

• Marketing practices that aren’t always clear.

Deceptive and Manipulative marketing practices

• any advertising that is untrue, misleading, or has the effect of fooling customers is
considered deceptive advertising.

Misleading Statistics or Research

• The purposeful or unintentional manipulation of numerical or research data is referred to

as misleading statistics. The findings provide misleading information that promotes
incorrect narratives about a subject.

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Encourage Materialism

• Surround customers with pictures of bliss and argues that accumulating material items
leads to fulfillment and happiness, which contribute to the pleasure of living.

Misusing Consumer Data

• Whether you're unknowingly misusing

consumer data or manipulating it for
your own gain, both are unethical
practices in marketing. 

• If you're not tech-savvy, you might not

be aware of how you (or third parties)
are misusing your customer data. The
issue is that the fallout from these
practices will affect your business, not
the guilty party. Your customers will
fault you for not being aware of what
was going on. 

• Ensure your website and the data you

collect are safe and kept private from
third parties. Consult with an expert if
necessary to ensure your customer data
is safe from being manipulated and
sold to other parties. 

Packaging and Labeling

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• Packaging has an important role in terms of brand identity and is very critical for sales.
However, there are growing concerns with regard to packaging due to the environmental
impacts of discarded packaging. 

• The organization should also ensure that the labeling provides clear information
regarding the use of the products. If potential health or safety hazards are associated with
the product, they should be clearly brought to the notice of the customer through means
of labeling.

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