Polytechnic University of the Philippines

QUEZON CITY BRANCH

Don Fabian St., Brgy. Commonwealth, Quezon City

MODULE IN
CORPORATE SOCIAL
RESPONSIBILITY and
GOOD GOVERNANCE

Compiled by: Prof. Doris B. Gatan

Subject Facilitator (dbgatan@gmail.com/09988682548)

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 Table of Contents

Introduction of the Course 3

MODULE LESSONS

Lesson 1 THE CORPORATE SOCIAL RESPONSIBILITY 7

Lesson 2 Challenges of CSR 11

Lesson 3 THE ROLE AND FUNCTION OF BUSINESS IN THE SOCIETY 14

Lesson 4 Business Ethics 15

Lesson 5 THE NATURE AND EVOLUTION OF CORPORATE GOVERNANCE 20

Lesson 6 Principles and Elements of Good Governance 21

Lesson 7 Importance of Good Governance 24

Lesson 8 EMBEDDING GOOD GOVERNANCE PRACTICES 25

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INTRODUCTION

Welcome to this course!

This module is designed students from the Polytechnic University of

the Philippines.This course is designed to develop an understanding
of the underlying concepts of Corporate Social Responsibility and
Good Governance, which are relevant to the contemporary business
environment. It is designed to foster student’s understanding of the
ethical influences on economic, financial, managerial and
environmental aspects of business. The course further aims to
develop the student’s ability to critically analyze ethical issues I
business and further reviews different regulatory processes essential to the understanding of the
principles of good corporate governance.

Several platforms will be used in the delivery of the lessons that students may choose from in order
to satisfy the minimum requirements of the course. But remember, that students are only to choose
one from the options at the onset of this semester, the most appropriate and applicable to your
situation.

One is an online mode of delivery where students are expected to:

1) attend at least 30% of online lectures. Online Lectures will be posted one week earlier prior to
the next online meeting. This is to provide students ample time to read and understand about the
Lesson to prepare them to participate in the online discussion and the scheduled online Quiz.

Note: The success of this course depends on the ability of the students to have read the assigned
readings closely, to have thought carefully about the points raised or ignored by the participants of
the group provided for the subject, and to bring to the group questions and concerns about their
concepts and positions into the chat or discussion group. Prior to each class, the teacher will post
Notes and outline the focus of the subsequent session and to direct reading or study prior to online
class discussion to ensure students’ productive participation.

2) Online Quiz. This will be facilitated via google forms, which will be provided after the Lesson had
already been discussed to check students’ understanding of the topic (it may consist of 1 to 10 items
only). Or it may also be in the form of an essay to be submitted synchronously or asynchronously by
the students.

3.) Assignment. This is being provided to check an in-depth understanding of the Lesson and
identify some practical ways of applying what take aways students had in the Lesson. This may be
returned asynchronously.

4.) Chat/Forum Participation. This may also be utilized in synchronous or asynchronous way. Also,
it is expected that everyone should practice an appropriate ”NETIQUETTE” for all postings.

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5) Proposed Activity/Session: Group Activity. Students will propose and facilitate an online activity
based on the result of the needs analysis conducted through the use of the google form; from which
they are expected to follow the format being provided and be evaluated through the rubrics.

5.) Midterm and Final Examination. This may be taken through a scheduled meeting, that if the
students may not be able to participate with such as Group Proposal Defense

REQUIREMENTS PERCENTAGE
Attendance to at least 30% of the 10%
scheduled online meetings (synchronous
and asynchronous)
Online Quiz 10%
Assignment 10%
Chat/Forum Participation 10%
Activities/Projects/Assigments/Seatworks/ 30%
Reports
Midterm/Final Examination 30%
Total 100%

However, Online meetings and other online activities may be done through google room, FB room,
zoom and etc.

2. the other mode of delivery to be utilized is the Correspondence mode or the Modular Approach.

Correspondence education is a formal educational process under which the institution provides
instructional materials, by mail or electronic transmission, including examinations on the materials,
to students who are separated from the instructor. Interaction between the instructor and the student
is limited, is not regular and substantive, and is primarily initiated by the student; courses are
typically self-paced.

Hence, at the end of each lesson in this module, there are different activities that student who chose
this approach to provide the following:

1) Assignment. This is being provided to check an in-depth understanding of the Lesson and
identify some practical ways of applying what take aways students had in the Lesson. This may be
returned asynchronously.

2) Research Output. Student is expected to prepare their own needs analysis to a specific group of
teachers or students; in primary or secondary level in 1 or 2 schools of around 50 teacher-
participants or student-participants where any of the topics covered in this module.

Format of submission shall consist of the following:

1. Cover where the title of the said activity is written

2. Acknowledgement
3. Table of Contents
4. Introduction

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 5. Methodology
6. Results/Discussion
7. Conclusion
8. References

REQUIREMENTS PERCENTAGE
Assignment 30% it is expected that all the lessons’ assignments
will be answered by the students and returned one
week before the end of the semester
Research Output 50% this will be graded on the basis of publication,
the student will get 50% if not, only around 40%
graded base on the rubrics to be provided.
Timeliness of Submission 20% (all these requirements shall be submitted on or
before the date of the final examination)
Total 100%

Class Reminders!!!

ONLINE MODE GUIDELINES- keep in mind some basic netiquettes

• Set a respectful tone all the times

• Think before you type, share, post, comment, or react.
• Recommended online platforms (e.g. Google Classroom-, Zoom etc.) must be used for
academic-related discourse only.
• Posts and comments must reflective of the subject topic/s discussed.
• Academic arguments, disagreements are allowed given a certain topic requires for it within
a proper forum/platform provided.
• Avoid sarcastic posts and comments (avoid misguided arguments with classmates)
• Personal issues about the subject must be directly course through the Subject Facilitator
through a private message, text, chat or email.
• All individual assessment must be submitted or posted using his/her
LASTNAME/ASSESSMENT TOPIC (e.g. CRUZ/REACTION 1).
• All group assessment must be submitted or posted using GROUP NUMBER/GROUP
WORKS (e.g. GROUP 1/RESOURCE MODULE).

OFFLINE MODE GUIDELINES

• Be a responsible student, maximize your time by reading the handout/module given and
comply to submit the given tasks on scheduled time.
• In case you have inquiries and clarifications regarding offline tasks/assessments, feel free
to text the Subject Facilitator@09496208836
• Expect a call from a Subject Facilitator for the details of your inquiry and some
clarifications.

Course Outcomes

At the end of the course, the students are expected to:

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➢ Demonstrate the corporate, economic and social challenges of Corporate Social
Responsibility through the activities provided;

➢ Discuss the Role and Function of business in society;

➢ Discuss the origin of business ethics; and,

➢ Acquire and demonstrate an understanding on the evolution of corporate governance •

Acquire the necessary attitude in embedding good governance practice

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 LESSON 1

THE CORPORATE SOCIAL RESPONSIBILITY

Introduction

The true meaning of burisness worth can be best achieved through corporate social
responsibility. Yes its true that business is just established to get profit, but thinking ahead how a
business sustained its purpose is different; mutual purpose to gain profit but more of providing
assistance to the need of the country specifically and of the world at large.

This Lesson will provide a clear vision of the Corporate Social Responsibility; its beginning
and the different methods used in CSR.

Learning Outcomes: at the end of this lesson, the students are expected to:

➢ define CSR ;
➢ identify the basic advantages of CSR; and,
➢ inculcate the motives of establishing CSR.

Learning Materials

Unit 1 - Tracing the beginning of Corporate Social Responsibility

Corporate Social Responsibility came into common use in the late 1960s and early 1970s but if we
were to turn the pages of history, we would know that the history of social and environmental
concern about business is as old as trade and business itself. For example laws to protect forests,
can be traced back almost 5,000 years. In Ancient Mesopotamia around 1700 BC, King
Hammurabi introduced a code in which builders, innkeepers or farmers were put to death if their
negligence caused the deaths of others, or major inconvenience to local citizens.
With industrialization, the impacts of business on society and the environment assumed an entirely
new dimension. The “corporate paternalists” of the late nineteenth and early twentieth centuries
used some of their wealth to support philanthropic ventures. By the 1920s discussions about the
social responsibilities of business had evolved into what we can recognize as the beginnings of the
“modern” CSR movement. It was in 1929, that the Dean of Harvard Business School, Mr. Wallace
B. Donham commented in his speech delivered at North Western University:
“Business started long centuries before the dawn of history, but business as we now know it is new
- new in its broadening scope, new in its social significance. Business has not learned how to
handle these changes, nor does it recognize the magnitude of its responsibilities for the future of
civilization.”
Almost seventy five years later, these words ring just as true. Today also there are so much of
talks going about the same but very little done in this regard.
Unit 2 - Defining Corporate Social Responsibility
Corporate social responsibility (CSR), also commonly as called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business/ responsible business). CSR
differs from place to place, from industry to industry. It is difficult to define CSR precisely because it
will always have a locationspecific context. The world business Council for Sustainable
Development defines CSR as, “Corporate Social Responsibility is the continuing

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commitment by business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as well as of the local
community and society at large.”
It is basically a form of corporate self-regulation integrated into a business model.
Friedman versus Russell
Milton Friedman indicated that one and only one social responsibility of a business is to use its
resources and engage in activities designed to increase its profits, as long as it stays with the rules
of the game, which is to say, engages in open and free competition without deception of fraud.
On the other hand Kirk Russell insisted that every right is married to a duty, every freedom owns a
corresponding responsibility. Hence, there cannot be genuine freedom unless genuine order also
exists in the moral realm and in the social realm.
Its not only in the times of Friedman and Russell that two completely contrasting opinions about
CSR existed, even today there are a number of people, in fact, most number of people following
the Friedman’s way. Without even realizing that today, there is no way to avoid paying serious
attention to corporate citizenship/ CSR, as the cost of failing is very high. There could be countless
win-win opportunities waiting to be discovered. It is to be understood that every activity in a
firm’s/any sort of corporate set-up’s value chain overlaps in some way with social factors, from how
to buy or procure to how to conduct the research, and its quite strange that yet very few companies
have thought about it. The goal is not only to earn profit but leverage company’s unique capabilities
in supporting social causes as well as improving its competitive context at the same time.
Unit 3 - Methodology of Corporate Social Responsibility
CSR is the procedure of assessing an organization’s impact on society and evaluating their
responsibilities. It begins with an assessment of the following aspects of each business:

i. Customers
ii. Suppliers
iii. Environment
iv. Communities
v. Employees
Corporate social responsibility is maintainable as it involves activities that can be upheld by an
organization without negatively affecting the business growth. CSR is not only about protecting the
environment, taking ecological accountability into consideration or having a recycling policy, it is
about considering the whole representation of the company, from internal processes to the clients,
taking in every step that a business takes during day-to-day operations and for its wholesome
growth.
Organizations have to recognize that CSR is just a way in which companies manage their business
processes to produce an overall positive impact on the community at large. It is very important big
and small both companies to understand that besides growing their businesses, it is also important
to shape responsible and supportable relationships with the society.
An initiative is also required from countries having developing economy to have CSR as a part of
their business. This can be achieved by having specific departments and teams in their companies
(having number of members depending upon the size of their organization/company) that develop

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specific policies, strategies and goals for their CSR programs and set separate budgets to support
them.
Unit 4 - Advantages of making CSR a part
The concept of corporate social responsibility is now firmly rooted around the globe as a business
agenda. But in order to move from theory to concrete action, many hurdles need to be overcome.
The positives of a CSR initiative are that it can bestow an organization both in terms of finances as
well as managerial talent and also attract right people to work on the initiatives. Thus looking at the
initiatives by Corporate around the world one feels that we can expect more from them.
There is an urgent need to address the various CSR initiatives and also a need to build a
mechanism through which such efforts are recognized and rewarded. It would not be wrong in
saying that transparency and dialogue can help to make a business appear more trustworthy, and
push up the standards of other organizations at the same time.
Some of the positive outcomes that can arise when businesses adopt a policy of social responsibility
include:
Examples of benefits to a Company:

• Improved financial performance;

• Lower operating costs;
• Enhanced brand image and reputation;
• Increased sales and customer loyalty;
• Greater productivity and quality;
• More ability to attract and retain employees;
• Reduced regulatory oversight;
• Access to capital;
• Workforce diversity;
• Product safety and decreased liability.
Examples of benefits to the Community and the General Public

• Charitable contributions;
• Employee volunteer programs;
• Corporate involvement in community education, employment and homelessness programs;
• Product safety and quality.
Examples of benefits to the Environment

• Greater material recyclability;

• Better product durability and functionality;
• Greater use of renewable resources;

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 • Integration of environmental management tools into business plans, including life-cycle
assessment and costing, environmental management standards, and eco-labeling.
It would certainly not be wrong to say that the leading global companies of 2020 will be those that
would provide their customers and clients with goods and services and even reach out to them in a
manner and with a approach that accommodates solutions to world’s major challenges, such as
poverty, climate change, resource depletion, globalization and demographic shift.
➢ https://www.lexology.com/library/detail.aspx?g=b22d13e7-1640-413b-9832-8a4d5454e8ab
Assessment/Activities

Activity #1: Assignment

1. Look for the different CSR practices of at least 3 leading corporations in the country. Make
your own representation through a Matrix using the following items in your analysis:
a. CSR practices
b. Objectives
c. Methodology
d. Intended beneficiary
e. Analysis on how it benefited the intended beneficiary and the country and or the
world at large.

Company CSR Objectives Methods Intended Analysis

practice/s Used Beneficiary

2. Explain how CSR related to HUMANISM AND PERSONAL INTEGRITY?

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 LESSON 2

CHALLENGES OF CSR

Introduction

"Friends, together, we can achieve a new phase of globalization - one that creates inclusive and
sustainable markets, builds development and enhances international cooperation. We each have a
responsibility in moving our agenda forward."

As provided by Wikipedia, Corporate social responsibility is a type of international private business

self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable
nature by engaging in or supporting volunteering or ethically-oriented practices.

Hence, this Lesson provides the challenges of Corporate, Economic and social challenges heading
an organization.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Identify the challenges of CSR; and,

2. Discover the traits, competencies and skills required for a socially
responsible management.

Learning Materials

Unit 1 –the Corporate Social Responsibility

As discussed in the previous Lesson, Corporate Social Responsibility is a management concept

whereby companies integrate social and environmental concerns in their business operations and
interactions with their stakeholders. CSR is generally understood as being the way through which a
company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-
Line- Approach”), while at the same time addressing the expectations of shareholders and
stakeholders. In this sense it is important to draw a distinction between CSR, which can be a
strategic business management concept, and charity, sponsorships or philanthropy. Even though
the latter can also make a valuable contribution to poverty reduction, will directly enhance the
reputation of a company and strengthen its brand, the concept of CSR clearly goes beyond that.

In other words “pagmamalasakit” “pagkakawang-gawa” which is very natural in the culture of

Filipinos. There are several corporations who are actually onto this activities; the SM group of
companies, Ayala corporation, Jollibee, McDonalds, TV stations giants and etc.

A. Issues and Challenges

The recent pandemic COVID 19 has a lot of challenges to the economic welfare of the country. As
such, some CSR practices need to adjust and look for other things to augment the losses
economically.

As CSR promotes the uptake of CSR amongst SMEs requires approaches that fit the respective
needs and capacities of these businesses, and do not adversely affect their economic viability.

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TBL Approach has proven to be a successful tool for SMEs in the developing countries to assist
them in meeting social and environmental standards without compromising their competitiveness.

The TBL approach is used as a framework for measuring and reporting corporate performance
against economic, social and environmental performance. It is an attempt to align private
enterprises to the goal of sustainable global development by providing them with a more
comprehensive set of working objectives than just profit alone. The perspective taken is that for an
organization to be sustainable, it must be financially secure, minimize (or ideally eliminate) its
negative environmental impacts and act in conformity with societal expectations.

Key CSR issues:

➢ environmental management, eco-efficiency, responsible sourcing, stakeholder engagement,

labour standards and working conditions, employee and community relations, social equity,
gender balance, human rights, good governance, and anti-corruption measures.

The United Nations Industrial Development Organization (UNIDO) (French/Spanish acronym:

ONUDI) is a specialized agency of the United Nations that assists countries in economic and
industrial development has provided this framework to see how CSR would be able to provide great
impact in solving different issues of the world focusing mainly on Economic, Social and
Environmental performance issues as depicted in this illustration below:

➢ https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-
capacities-and-corporate-responsibility/corporate-social-responsibility-market-
integration/what-csr

The prime purpose of including CSR in corporate business is to make the corporate business
activities as well as the corporate culture both sustainable in three ways: economic, social and
environmental. Paying equal amount of attention to all the three dimensions, but many companies
think that corporate social responsibility is a much exterior part of their business, whereas most think

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it to be an irrelevant issue for their business as satisfying their customers/clients is more important
for them. It is further felt that customer satisfaction is only about price and service, but concentrating
on only these aspects of business makes them blind folded towards other important changes taking
place worldwide that could blow the business out of the water. The change is named as social
responsibility which is an opportunity in itself for the business.
Some of the drivers pushing business towards CSR include:
Inefficiency of the Government
In the past, governments have relied only on legislation and regulation to deliver social and
environmental objectives in the business sector which has lead to certain failed initiatives.
Demands for Greater Disclosure
There is a growing demand for corporate disclosure from stakeholders, including customers,
suppliers, employees, communities, investors, and activist organizations.
Increased Customer Interest
It has been seen and proved through a survey conducted in the year 2002 in 25 countries
by Environics International1, it was found that more than one third of surveyed consumers
believed that large companies “should do more than give money to solve problems.”
The same study found that almost 50 percent of consumers had considered punishing a company
based on its social actions, and that nearly 30 percent had actually avoided a company for that
reason. Further it was proved that the ethical conduct of companies have a growing influence on the
purchasing decisions of customers.
Increased pressure from the Investor Investors are changing the way they analyze companies'
performance, and are making decisions based on ethical concerns too.
Change in employee behavior
Employees are increasingly looking beyond paychecks and benefits and seeking out employers
whose operating practices match their own principles. In order to hire and retain skilled employees,
companies are being forced to improve working conditions.
➢ https://www.lexology.com/library/detail.aspx?g=b22d13e7-1640-413b-9832-8a4d5454e8ab

Assessment/Activities

Activity 1: Watch Youtube Video of CSR Practices

https://www.youtube.com/watch?v=E0NkGtNU_9w

Answer this guide questions:

1. How do CSR being implemented in the video?

2. Make a list of different advantages and disadvantage of CSR practices?
3. Make a comparison between this video on CSR and on how CSR works with some of the
corporations here in the Philippines.
4.

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 LESSON 3

THE ROLE AND FUNCTION OF BUSINESS IN THE SOCIETY

Introduction

The primary role of a business is to produce and distribute goods and services to satisfy a
public need or demand, which CSR do more than what is expected for a business to exist.

According to Business News Daily corporate social responsibility (CSR) is "a business
practice that involves participating in initiatives that benefit a society. Hence, its more than providing
the needs, but more of what benefit it could provide for the society.

This Lesson presents role and functions of Business as compared to CSR.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Differentiate between business motives and CSR practice;

2. Incorporate CSR idea in business concepts to be proposed; and,
3. Actualize the ideology CSR is providing for the benefit of the great majority.

Learning Materials

What actually business concerns with the society? There is business to provide life to the
society. There is business to show people what they need to do. And there is business for the
direction, to give direction to the society at large.

These are the list of internet articles that you may find very helpful for this topic:

➢ https://online.tamucc.edu/articles/what-is-the-role-of-business-in-
society.aspx#:~:text=he%20role%20of%20a%20business,a%20public%20need%20or%20d
emand.&text=Society%20does%20not%20exist%20without,economic%20system%20of%20
the%20world.
➢ https://businessmirror.com.ph/2019/08/27/the-role-of-business-in-society/

Assessment/Activities

Activity 1. Make your Own Assessment

1. Make a synthesis of the role and function of business in the society from the following
internet articles. Provide your own question at the end of the synthesis.
2. Draw a simple illustration showing the role/function of business in the society

Activity 2. Online Group Debate on the recent closure of ABS CBN station on the foregoing topic
on its role to the economic welfare in the Philippines.

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 LESSON 4

BUSINESS ETHICS

Introduction

Business ethics carries significant influence in the corporate world. Not only does it change
how businesses operate on a day-to-day- basis, but it also influences legislation around corporate
regulation. This lesson provides what business ethics is, why it is important, and how you can spot
ethical and unethical behaviors in the workplace

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Identify ethical and unethical behaviors in the work place;

2. Draw significant conclusions on the favorable effect business ethics can do in a
corporate world; and,
3. Give examples on how business ethics be practiced.

Learning Materials

Unit 1 – Business Ethics

A. What Is Business Ethics?

Business ethics is the study of how a business should act in the face of ethical dilemmas and
controversial situations. This can include a number of different situations, including how a business is
governed, how stocks are traded, a business' role in social issues, and more.

Business ethics is a broad field because there are so many different topics that fall under its umbrella.
It can be studied from a variety of different angles, whether it's philosophically, scientifically, or legally.
However, the law plays the biggest role in influencing business ethics by far.

Many businesses leverage business ethics not only to remain clean from a legal perspective, but also
to boost their public image. It instills and ensures trust between consumers and the businesses that
serve them.

Why Is Business Ethics Important?

Business ethics are important for a variety of reasons. First and foremost, it keeps the business
working within the boundaries of the law, ensuring that they aren't committing crimes against their
employees, customers, consumers at large, or other parties. However, the business also has a number
of other advantages that will help them succeed if they are aware of business ethics.

Businesses can also build trust between the business and consumers. If consumers feel that a
business can be trusted, they will be more likely to choose that business over its competitors. Some
businesses choose to use certain aspects of business ethics as a marketing tool, particularly if they
decide to highlight a popular social issue. Leveraging business ethics wisely can result in increased
brand equity overall.

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Being an ethical business is also highly appealing to investors and shareholders. They will be more
likely to sink money into the company, as following standard ethical business practices and
leveraging them properly can be a path to success for many businesses.

Following business ethics can also be beneficial for the business' employees and operations.
Attracting top talent is significantly easier for ethical businesses. Employees not only appreciate a
socially aware employer, but will also perceive them as the kind of business that will act in the best
interest of their employees. This produces more dedicated employees and can also reduce
recruitment costs.

What Are the Types of Business Ethics?

Business ethics as a field of study is incredibly diverse, but many concepts can be divided into a few
basic principles. Every business should strive to follow these guidelines in the pursuit of success.

Trustworthiness

Achieving trustworthiness typically involves being transparent and honest in all actions and
communications. Being trustworthy can have a positive impact both internally and externally.
Consumers appreciate openness, as it provides them with insight into how a business operates and
conceptualizes the work that they do. Employees also appreciate this quality in a business that they
work for.

Respect

Showing respect for employees and customers involves following through on all promises -- and
providing sincere apologies and appropriate compensation if anything falls through. Showing a lack
of respect will deter customers from engaging with a business and lower a business' reputation. It
will also do significant damage to employee morale and increase turnover.

Fairness

Treating customers and employees with a sense of fairness and justice is a key type of ethics.
Manipulative behaviors aren't just unethical, but they are also unhelpful -- and the top priority of any
business should be to be helpful to its customers and employees. It is also important to treat all
people equally.

Caring

Businesses, at the end of the day, are composed of human beings. There are human beings that
consume goods or services from the business, and then there are human beings that work to
produce those goods or services. Being open to their struggles and coming to the table with
solutions will show empathy -- a valuable tool for any business to utilize. Showing a sense of caring
and keeping the lines of communication is not just the ethical thing to do, but can also boost internal
and external perceptions of the business.

Examples of Ethical Behavior in the Workplace

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Putting Customer Needs First

Companies that build their workplace culture around putting customer needs first and hiring people
who engage in this behavior are participating in ethical behaviors. For example, if a customer comes
into a store looking for a product that meets very specific needs, it's important to provide them the
best product for the situation described instead of upselling them or encouraging them to buy a
product that won't meet their needs. However, it is important to ensure that the "customer first"
attitude does not unintentionally result in the unethical treatment of employees -- such as
encouraging them to work more overtime than allowed, forcing them to endure abuse from
customers with no safe way to escape the situation, and more.

Being Transparent

Transparency and clear communication is paramount when it comes to ethical workplace behaviors.
Employees and consumers alike should never be lied to or told untruths, as this breaks trust within
the business. For example, when faced with a public relations crisis, companies should call a
meeting and address the problem directly with their employees. It's important to truthfully describe
the situation as it unfolded, present solutions, and accept criticism humbly.

Prioritizing Workplace Diversity

Part of being fair is providing everyone with an equal opportunity to be employed at the company.
While there is much political debate around how to create workplace fairness, it is undeniable that
providing equal opportunity for employment to every applicant is an ethical standard. For example, if
someone notices that management tends to hire the same type of person, they may suggest getting
employees more involved in the hiring process. This will introduce different perspectives to the hiring
process and increase the possibility that different kinds of applicants will be selected for a position.

Respecting Customer Information

Many businesses collect the personal information of their customers, whether it's payment
information, health information, or similar. One of the priorities for any business should be securing
and protecting this information. For example, a hospital may create and enforce aggressive policies
around staff sharing patient information on social media. Having an employee share this kind of
information on their personal accounts is not only disrespectful of the patient's privacy, but could
also put the hospital at risk of violating hospital policies.

Providing Resources for Reporting Unethical Behavior

If an employee notices unethical behavior in the workplace, they should have an outlet to report
these behaviors. The business is responsible for putting this infrastructure in place and designing it
in a way that insulates the employee from harm. For example, a research university should have a
neutral office of compliance that is organizationally detached from the research arm of the
institution. This provides a neutral space where academics can report unethical studies or harmful
practices without fear of workplace repercussions.

Examples of Unethical Behavior in the Workplace

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Just as it is important to understand how to practically apply ethical behavior, it is equally important
to understand what qualifies as unethical behavior. Here are some examples of what unethical
situations can look like in the workplace.

Taking Sides in an Employee Argument

It is not uncommon for conflicts to arise between employees in the workplace. Ethically, it is the job
of company leadership and management to remain impartial during these conflicts. For example, if
two of a manager's employees are in conflict, it is important for the manager to remain as neutral as
possible. When a manager gives preference to a favorite or senior employee or provides a solution
that only works in favor of one party, they are participating in unethical behavior. They must allow
both employees to speak their piece and then come to a solution that works best for both parties, as
well as the business itself.

Lying

Lying to your employees or customers is the biggest way to break trust. Trust is the best source of
dedication and loyalty that any business has. Once that trust is broken, it is extremely difficult to get
it back. For example, if a company has a high-performing employee who is asking for a promotion,
they may say that there is no room in the budget for a promotion this year. A few months later,
another employee may receive a promotion. Telling obvious lies isn't just unethical -- it will drive
people away from your business.

Misusing Company Time

This is a common ethical dilemma that many businesses face. Many employees misuse company
time in a variety of ways, whether it's surfing the internet during business hours, taking extended
breaks, altering time sheets, or similar. Misusing company time is unethical because the employee
is being paid a salary for work that they did not complete or time they did not dedicate to their job.

Cultivating a Hostile Workplace

While there is bound to be some conflict in the workplace, it is important to make the workplace a
safe environment for everyone. Some companies unintentionally cultivate a hostile or overly
competitive company culture. For example, employers may encourage an unhealthily competitive
environment among employees to drive productivity and innovation. However, cultivating this kind of
environment can tax employee mental health, and even encourage unethical, sabotaging behavior
among employees who want to get ahead at work.

Ignoring Conflicts of Interest

Conflicts of interest encourage businesses to act in ways that do not benefit their customers or
employees. For example, if a manager has a relative as their direct report, that manager may treat
that employee differently than their other reports. It is the duty of the business to address this
situation. Removing conflicts of interest can become more complex when a business is publicly
traded, non-profit, or receives funds from a government entity.

Assessment/Activities

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Activity 1. Comic Strip. Make a comic strip regarding the practice of business ethics. This will be
graded through the use of the rubrics.

Online Quiz.

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 LESSON 5

THE NATURE AND EVOLUTION OF CORPORATE GOVERNANCE

Introduction

Corporate Governance encourages a trustworthy, moral, as well as ethical environment.

Good corporate governance ensures corporate success and economic growth. Strong corporate
governance maintains investors’ confidence, as a result of which, company can raise capital
efficiently and effectively.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Assess the nature and evolution of corporate governance based in the recent
business development; and,
2. acquire good governance in dealing with business ventures.

Learning Materials

Unit 1 – NATURE AND EVOLUTION OF CORPORATE GOVERNANCE

➢ http://diligent.com/wp-content/uploads/2015/12/The-Evolution-of-Corporate-Governance.pdf
➢ https://www.slideshare.net/alizaracelis/corporate-governance-6026560
➢ https://www.managementstudyguide.com/corporate-governance.htm

Assessment/Activities

Guide Questions

1. If planning for business venture after graduation, how do you perceived the nature of
business by that time and how you will practice corporate governance if ever?
2. Make your business proposal applying corporate governance theory.

Reflection Paper. Make your reflection paper on the practice of corporate governance in the
Philippines.

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 LESSON 6

PRINCIPLES AND ELEMENTS OF GOOD GOVERNANCE

Introduction

This lesson shows the principles and elements of good governance practices in private
businesses and government owned businesses.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Identify principles and elements of good governance in private and public sector of
business industries; and
2. Analyze how business ventures incorporate good governance practices.

Learning Materials

UNIT 1 – ELEMENTS OF GOOD GOVERNANCE

➢ https://www.slideshare.net/manoharlaxmi/governance-41444010

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 ➢ https://www.slideshare.net/jundumaug1/good-governance-47353948
➢ https://www.slideshare.net/nayanarenu/good-governance-6268274

Unit 2 – Principles of Good Governance

The principles of good governance

Again, there are many variations to a common theme of good governance; however below we list
the fundamental requirements and expectations to meet this standard:
Directors should act always to optimize and sustain the economic, social and environmental value
and potential of their organization
• According to a well-informed conscience;
• With astute commercial judgement and a sound understanding of the organization’s
business;
• In the best interests of the organization as a whole;
• With due care and diligence;
• Solely for a proper purpose;
• Free from any conflicts of interest or duty; and
• In conformance with the spirit as well as the letter of applicable legislation and regulation
➢ https://www.governancetoday.com/GT/Articles/Good_Governance__what_are_the_basic_pri
nciples_and_why_is_it_important_.aspx?WebsiteKey

What are the principles of good governance?

This infographic explores 8 key principles of good governance formulated to guide public
managers navigating through ethical grey areas.

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Consider the idea that these values are a lens through which public management situations can be
viewed – just like the lenses in a pair of glasses affects everything that a person sees, these values
should permeate every aspect of a public manager’s views and expressions of their responsibilities.

➢ https://www.getsmarter.com/blog/career-advice/8-principles-of-good-governance/
➢ https://www.unescap.org/sites/default/files/good-governance.pdf

Assessment/Activities:

1. Make an action research on the good governance practices of a corporate business and
compare it in the education set up of good governance? Be able to compare and contrast
experiences of good governance implementation. Follow the format below:
a. INTRODUCTION
b. METHODS
c. RESULTS and
d. DISCUSSION
e. REFERENCES
• The paper should not be more than 15 pages but in minimum of 10.

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 LESSON 7

IMPORTANCE OF GOOD GOVERNANCE

Introduction

This Lesson tries to explain, aside from what is "governance" and "good governance" means, is
also focusing on the importance of good governance implementation in business, in the government
and even in the society.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. Identify the importance of good governance;

2. Inculcate the importance of good governance in the success of any business venture; and
3. Value the importance of good governance and be able to apply them in their future career.

Learning Materials

Unit 1 – Importance of Good Governance

➢ file:///C:/Users/CAROL/Downloads/2347-11698-1-PB.pdf
➢ https://www.sida.se/contentassets/51f962f6acf0489f90fab393d807bd6d/good-governance_762.pdf
➢ aicd.companydirectors.com.au/membership/membership-update/why-good-governance-is-
important-in-the-public-sector

Assessment and Activities

Activity 1 - iDraw&Learn. Draw at least five (5) pictures depicting characteristics of good
governance and be able to explain its importance from the point of view of the artist.

Online synchronous test.

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 LESSON 8

EMBEDDING GOOD GOVERNANCE PRACTICES

Introduction

“Good corporate governance is about 'intellectual honesty' and not just sticking to rules and
regulations, capital flowed towards companies that practiced this type of good governance.“ -
Mervyn King (Chairman: King Report).

This Lesson shed lights on embedding good governance practices.

Learning Outcomes: at the end of this lesson, the students are expected to:

1. portray the practice of good governance in school activities; and,

2. show interest in the practice of good governance.

Learning Materials

Unit 1 – Best Practices of Good Governance

From the time of conception of good governance idea into corporate and government
activities, the great importance of what good governance can do for the success of business has
already shown great impact in the history; hence, there are already identified best practices either in
the government, private or an individual person in the country and the rest of the world where
people are looking up. There are several examples to be noted:

➢ https://www.oecd.org/daf/ca/corporategovernanceprinciples/43654277.pdf
➢ https://www.ifac.org/system/files/publications/files/Good-Governance-in-the-Public-
Sector.pdf
➢ https://www.apsc.gov.au/building-better-governance
➢ file:///C:/Users/CAROL/Downloads/InternationalFrameworkGoodGovernanceinthePublicSect
orIFACCIPFA2.pdf
➢ https://www.foeeurope.org/sites/default/files/renewable_energy/2015/turner_2015-
six_principles_of_good_governance.pdf

Assessment and Activities

Activity 1 – Online synchronous Quiz

Activity 2 – Guide Question

1. How would you know if good governance was properly implemented?

2. Supposed that you are a managing a very well-known company in the Philippines, make
you own business proposal showing how you may be inculcated good governance.
3. Term paper

Online synchronous test.

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