Business Ethics and SENIOR

HIGH
Social Responsibility SCHOOL

Module
The Nature of Ethics and
Business Ethics 7
Quarter 3

Business Ethics and Social Responsibility

Business Ethics and Social Responsibility- Grade 12
Quarter 3 – Module 7: The Nature of Ethics and Business Ethics
First Edition, 2020

Republic Act 8293, Section 176 states that no copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

names, trademarks, etc.) included in this module are owned by their respective
copyright holders. Every effort has been exerted to locate and seek permission to use
these materials from their respective copyright owners. The publisher and authors
do not represent nor claim ownership over them.

Published by the Department of Education - Schools Division of Pasig City

Development Team of the Self-Learning Module

Writer: Eunice H. Mariposque
Editor: Content/Language : Hedelita B. Calonia/ Edna D. Camarao
Reviewers: Content/Language : Hedelita B. Calonia, Dennis T. Alex / Aillen G.
Sumagaysay, Edna D. Camarao
Illustrator: Name
Layout Artist: Name
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Carolina T. Rivera, Ed. D.
OIC-Assistant Schools Division Superintendent
Victor M. Javena, Ed. D.
Chief - School Governance and Operations Division
Manuel A. Laguerta, Ed. D.
Chief- Curriculum Implementation Division

Education Program Supervisors

Librada L. Agon EdD (EPP/TLE/TVL/TVE)

Liza A. Alvarez (Science/STEM/SSP)
Bernard R. Balitao (AP/HUMSS)
Joselito E. Calios (English/SPFL/GAS)
Norlyn D. Conde EdD (MAPEH/SPA/SPS/HOPE/A&D/Sports)
Wilma Q. Del Rosario (LRMS/ADM)
Ma. Teresita E. Herrera EdD (Filipino/GAS/Piling Larang)
Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)

Printed in the Philippines by Department of Education – Schools Division of

Pasig City
Business Ethics
and Social SENIOR
HIGH
Responsibility SCHOOL

Module

7
Quarter 3

The Nature of Ethics

and Business Ethics
Introductory Message

For the Facilitator:

Welcome to the Senior High School – The Nature of Ethics and Business
Ethics!

This Self-Learning Module was collaboratively designed, developed and

reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig through its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.

This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the
body of the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
 For the Learner:

Welcome to the Business Ethics and Social Responsibility Self-Learning

Module on The Nature of Ethics and Business Ethics!

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills

that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson

at hand.

Recap - This part of the module provides a review of concepts

and skills that you already know about a previous lesson.

Lesson - This section discusses the topic in the module.

Activities - This is a set of activities that you need to perform.

Wrap-Up - This section summarizes the concepts and

application of the lesson.

Valuing - This part integrates a desirable moral value in the

lesson.

Posttest - This measures how much you have learned from the
entire module.
 EXPECTATIONS

At the end of the module, you are expected to:

1. identify ethics, business ethics, morality, and corporate social responsibility;

2. understand and appreciate ethics through analysis of scenario; and
3. create a slogan that shows the importance of business ethics.

PRETEST

Direction: In your answer sheet, write True if you agree with the
statement and False if you do not agree with it.

1. Ethics is a branch of philosophy that examines the rightness and wrongness

of human actions.
2. Business ethics must be less considered in an organization.
3. Morality is the quality of wrongness or rightness of an action.
4. Business ethics is applied ethics that investigates the rightness and
wrongness of an action in business settings.
5. Business ethics serves as the guiding principles of every organization that
holds value to moral and ethical actions and decisions.

RECAP
Fill in the box.

What are the advantages of women What are the opportunities for
in business? women in business?

LESSON

There are times that some people experience the following situations:

1. Get the chance to cheat in an exam without anyone knowing

2. Invited by a friend to drink alcohol in a place where it is not allowed.
 3. Chance to steal someone’s thing without anyone seeing you.
4. Claim someone’s work to get its credit.

If you are stuck in the same situation, what do you think you are going to do?

It is part of our daily life to interact with lots of people. Starting from your
home, neighbors up to your classmates, workmates, and everyone around you. We
do different actions and reactions and we are always accountable for everything that
we will do, we do, and have done. But how should we respond in different situations
and can say that we do act in the right way and in a good way? How can we say that
our actions are ethical and moral?

What is Ethics?

Ethics comes from the Greek word “ethos” which means

https://pixabay.com/illustrations/arrow-
ethics-morality-credibility-2110610/
custom, character, nature, and disposition. Ethics or
moral philosophy are sets of principles that humans
ought to do because that is what is “right” and/or “good”.
It is a discipline that examines, develops, improves,
recommends right or wrong behavior and judgment.
https://www.examveda.com/ethics-is-derived-from-the-
greek-word-30381/

(a) It is a discipline- ethics is a branch of philosophy that studies moral and conduct,
problems, and other related issues concerning moral values.
(b) Sets of principles- these are the standards set by society that everyone should
follow and apply in their lives because these standards are what they considered
right, true, and fair.
(c) Develop concepts and recommends good judgment- as you study ethics, you will
be placed in different situations and problems that you need to address and need
a certain course of action and good judgement.
(d) Descriptive and normative – descriptive ethics gives us ideas on how people
behave and what moral actions they take. While normative ethics assign
principle/s of what people should do. https://www.learnreligions.com/ethics-
descriptive-normative-and-analytic-4037543

Some definitions that can be considered are as follows: (Cortez, Business Ethics and
Social Responsibility)

(1)“Ethics, from the Greek word ethos, encompasses the study of moral problems,
practical reasoning, right and wrong, good or bad, virtues and vices, character, moral
duty, and related issues involving the nature, origins, and scope of moral values.
Today, it is not uncommon for ethicists to specialized in medical ethics, business
ethics, environmental ethics, academic ethics, issues of ethnicity, and gender, and
the nature of the good life. Ethical issues include truth-telling, relativism, and
universality.” (business ethics and social responsibility, 2016)
(2) Ethics is the discipline that examines one’s moral standards or moral standards
of the society. It asks how these standards apply to our lives and whether these are
reasonable or unreasonable.”

(3) The discipline of ethics essentially boils down to a search for underlying objective
standards and reasoning for taking a particular course of action or conduct or
desisting from an action or conduct, as the case may be.”

(4) Ethics is the study of what is good and evil, what is wrong and right, and just and
unjust.”

(5) Ethics is the branch of philosophy that deals with morality. Ethicists are
concerned with a wide range of topics, such as human nature; the meaning of life;
the nature of value; how judgments are made; how judgement can be improved; how
moral attitudes arise and change; and the working of morally significant mental
states such as love, hate, greed, envy, indifference, pity, desire, aversion, pleasure,
and pain. Moral or ethical theories offer the means of understanding significant
elements in these and other areas of inquiry.”

(6) Ethics then becomes practical science designed to test logically the rightness or
wrongness of human acts.

Considering its definition, some people find it hard to appreciate its full
meaning because people tend to have their definition according to their
understanding and to what they think is more reasonable and acceptable to their
value judgment. This is what we call ethical relativism where one action is not true
or correct to an individual or society because that is not what they practiced.

Ethical relativism is a condition where one ethical

behavior is not considered ethical or reasonable in one
person or society because it is not the norms of one’s
culture. It shows the variability of moral belief where
one’s moral standard may not be true to another moral
standard. Nothing is true, false, right, or wrong and
some ethics that is considered right cannot be applied to
all because some actions may be morally right to one
culture but it is morally wrong to others. For example, in
our country, an issue of abortion is morally wrong
according to the republic act No. 10354 also know as The Responsible Parenthood and
Reproductive Health Act of 2012, section 3-d, states that:

“The provision of ethical and medically safe, legal, accessible, affordable, non-
abortifacient, effective and quality reproductive health care services and supplies is
essential in the promotion of people’s right to health, especially those of women, the
poor, and the marginalized, and shall be incorporated as a component of basic health
care”. https://pcw.gov.ph/law/republic-act-10354
But in other country like China, forced abortion is being implemented according to
“Article Twenty-Five” of the Planned Birth regulations in Henan province where it
states that:

Any person who engages in one of the following behaviors must, under the direction of
Planned Birth ‘technical service cadres’ [i.e., abortionists], be given ‘remedial
measures’ [i.e., an abortion] to terminate their pregnancies:

• Those who are pregnant and not married;

• Those who have already given birth to one child and become pregnant again
without a ‘birth permit’;
• Those who use illicit means to obtain a ‘birth permit’ and become pregnant.
(https://www.pop.org/forced-abortion-still-mandated-chinas-planned-birth-
laws/)

We can neither say that the Philippines is more ethical than China nor the other
way around because their norms and belief are what they hold correct. Ethical
relativism shows that no ethical views are better or more and no moral standards are
universal because it is relative to one’s belief. Yet, it does not give us an idea that
you can do whatever you feel like. What it wants to imply is that truth and morality
differ from the perspective of someone’s norms and belief.

What is Morality?

We come across the word morality for how many times, but how does morality
should be defined? Morality comes from the Latin word moralis which means custom
or manner. Morality is the recognition of human to what is good or bad and what is
wrong or right about their actions and thoughts. Ethics and morality are often used
interchangeably however, morality refers to the degree of rightness or wrongness of
actions or thoughts of an individual and looks closer to the standard of conduct while
ethics is a field of study that includes morality and other related concerns.

Business Ethics

Ethics studies the rightness or wrongness of human

behavior. Once this field examines ethical standards of business
activities and principles and conducts of employees and
business’ stakeholders interaction, then it is called business
ethics. Business ethics are also known as corporate ethics or
professional ethics is applied ethics as it explores the principles
and conducts of the business organization, and how businesses
act and react accordingly when facing problems that involve
moral issues. Business ethics serves as the guiding principles of https://www.canva.com/education/
every organization that holds value to moral and ethical actions and decisions. Most
of the principles regarding business ethics are in line with the existing law that
governs every individual in the organization. Different ethical dilemmas that may
arise as the business go along with its operation such as management system,
employee manners and conducts, production standards, financial concerns, and a
lot more. Business ethics set guide to prevent most common issues up to the
debatable issues and able to be composed, moreover, maintain cleanliness and
integrity of the firm.

Why Business Ethics is Important?

There are lots of reasons why business ethics should businessmen put in their
topmost priority. Among the most reasons is, the company is always aligned at the
existing law that ensures the company against crime from employees, customers,
suppliers, partners, and other stakeholders. However, other advantages will also
arise upon practicing business ethics in the work place.

Businesses can build trust with other business partners and customers.
People choose businesses that are truthful and honest. It brings a good relationship
as people will be more comfortable to choose them over and over again. Some
companies are using this strategy to have an edge over other competitors. If it is done
wisely, probably, the company will have a good return.

It is also important to note that investors and stakeholders are attracted to

companies that have good business ethical standing. They are more eager to invest
because they know that the money they will share is in good hands. Many businesses
that give importance to ethical practices create leverage and take the path to success.

Lastly, a business with good ethical standards is appealing to top talents.

Employees find ethical business worthy of their handworks because they perceive
that these companies will be fair to compensate for their efforts and roles their
playing in the firm. With this, the company will retain good and qualified employees
and will result in low recruitment costs.

Corporate Social Responsibility

CSR or Corporate
Social Responsibility is
a mission of a firm to be
involved and create an
impact on the society’s
https://commons.wikimedia.org/ welfare and interest in
economical, social, and environmental aspects parallel to the goal of the organization.
Once a company is engaged in corporate social responsibility, it contributes positive
results to customers, employees, stakeholders, and the business itself. It connotes
social contract to the people that commonly are as follows:

• Creates environmental friendly products to reduce pollution in air, soil, and

water.
• Provide best quality products with reasonable price
• Practice ethical labor codes
• Help charities through donations and act of volunteerism
 • Participate in advocacies of the betterment of the environment.

ACTIVITIES

Ethical Dilemmas for Classroom Discussion

THE DAILY DILEMMA
by Charis Denison

(https://www.goodcharacter.com/dilemma25/)

Ben said goodbye to his friends and started heading for home. He was in a great
mood. He had two weeks off from school for winter break, he had just passed
the test for his driver’s license, and with no homework , he could hang out with
his friends whenever he wanted to. Things couldn’t be better. He turned his
iPod up and smiled. As he passed the last row of stores before the hill leading
to his house something caught his eye at the bank. Something was sticking out
of the ATM. As he got closer, he saw it was cash.
Ben looked around. There was nobody. No cars, nobody walking nearby.
Someone must have just used the machine and then forgotten to take the
money. Whoever it was, was gone now. He walked over to the machine and took
the money out. Sixty dollars. There was also a receipt sticking out.
Ben looked around again. Still no one. He could turn the money in at the bank
tomorrow—it was after hours now. But, really, it was sixty bucks! Probably not
much to the customer, but it would make a difference as to how many
Christmas gifts he could get for his family.. or new music for his iPod.
Does it really count if you only do something like this once? Ben thought this
over. It’s not like he’s a thief or anything. Someone messed up by leaving the
cash there in the first place. He felt pretty good about taking it. It’s a one-time
deal. And no one ever needs to know. He put the money in his pocket, crumpled
up the receipt, and walked away.
As the next song started playing, Ben remembered something his grandfather
always said, “Every time you lie, you get closer to being a liar.” But this wasn’t
the same thing. Was it? He turned up the volume and headed up the hill to
home.

1. Trade places with Ben. What would you do?

2. Would your choice be different if you were with friends? How so?
3. Have you ever done something you knew was wrong because nobody was
watching? How did you feel when you did it? Would you do it again? Why,
why not?
4. What happens when you apply Ben’s grandfather’s words to cheating?
Do you agree that every time you cheat you come closer to becoming a
“cheater?
5. Think of a choice you made recently that might affect more people than
just you. Now imagine that everyone in the world did that same thing.
What would the world be like? Would you want to live there?
 WRAP-UP

1. What is Ethics?
2. What is the importance of being aware of ethical relativism?
3. Is it essential for a firm to apply business ethics? Discuss your reason.

VALUING

Slogan Making
In a bond paper, create a slogan that speaks about the importance of business
ethics in an organization. Take a selfie with your slogan and post it in your
messenger room. Be creative in making your own slogan.

POSTTEST

Direction: In your answer sheet, complete the statement by writing the

appropriate word/s in the blank.

1. _________ is a branch of philosophy that examines the rightness and wrongness

of human actions.
2. Ethics comes from the Greek word _________ which means custom, character,
nature, and disposition.
3. __________________ is an applied ethics that investigates the rightness and
wrongness of an action in business settings.
4. _______________ is where one action is not true or correct to an individual or
society because that is not what they practiced.
5. A _______________ ethics, is a type of ethics that assign principle/s of what people
should ought to do.
 KEY TO CORRECTION

important consumer insight

with a business degree economic power and offer
3. Strengthening credentials 3. Women represent huge

leadership
to leadership needed for business
2. Entrepreneurship as the path 2. Women excel at the soft skills

innovative workforce. inclusivity becoming policy

1. A diverse workforce is an 1. Gender equality and
women in business? women in business?
What are the advantages of What are the opportunities for

Recap

normative 5. True 5.
ethical relativism 4. True 4.
business ethics 3. True 3.
ethos 2. False 2.
ethics 1. True 1.
Posttest Pretest

References
Books

Jerusalem, Violeta L. Business Ethics & Social Responsibility: Concepts, Principles, &
Practices of Ethical Standards. Fastbooks Educational Supply, 2017.
Cortez, Franz Giuseppe F. Business Ethics and Social Responsibility. Vibal, 2016.

Websites
“Ethics Is Derived from the Greek Word - Examveda.com,” n.d.
https://www.examveda.com/ethics-is-derived-from-the-greek-word-30381/.
Cline, Austin. “Ethics: Descriptive, Normative, and Analytic.” Learn Religions, n.d.
https://www.learnreligions.com/ethics-descriptive-normative-and-analytic-
4037543.
“Forced Abortion Still Mandated Under China's ‘Planned Birth’ Laws.” PRI, June 3,
2019. https://www.pop.org/forced-abortion-still-mandated-chinas-planned-
birth-laws/.
White, Jacquelyn. “What Is Business Ethics? Definition, Overview, and Example.”
TheStreet, July 24, 2019. https://www.thestreet.com/personal-
finance/what-is-business-ethics-15026364.
Download free photo of Man,presentation,feeling,mind,decision making aid - from
needpix.com, n.d.
https://www.needpix.com/photo/download/161070/man-presentation-
feeling-mind-decision-making-aid-decision-making-board-alternative-
decision.
“Philippine Commission on Women.” Republic Act 10354 | Philippine Commission
on Women, n.d. https://pcw.gov.ph/law/republic-act-10354.
Santa Clara University. “Ethical Relativism.” Markkula Center for Applied Ethics,
n.d. https://www.scu.edu/ethics/ethics-resources/ethical-decision-
making/ethical-relativism/.
Rachels, James. “Ethical Relativism.” Encyclopædia Britannica. Encyclopædia
Britannica, inc., August 24, 2015.
https://www.britannica.com/topic/ethical-relativism.
Philosophy. “Relativism.” Philosophy Terms, October 25, 2018.
https://philosophyterms.com/relativism/.
Boundless. “Boundless Business.” Lumen, n.d.
https://courses.lumenlearning.com/boundless-business/chapter/business-
ethics/.
Chen, James. “Corporate Social Responsibility (CSR).” Investopedia. Investopedia,
March 2, 2020. https://www.investopedia.com/terms/c/corp-social-
responsibility.asp.
Schooley, Skye. “Corporate Social Responsibility: Definition and Example.” Business
News Daily. businessnewsdaily.com, April 22, 2019.
https://www.businessnewsdaily.com/4679-corporate-social-
responsibility.html.
STUDY.COM, n.d. https://study.com/academy/lesson/what-is-morality-definition-
principles-examples.html.
“Morality and Ethics: An Introduction.” Dynamic Chiropractic - chiropractic, news,
articles, research & information for chiropractors - Find a Chiropractor, March
11, 2004.
https://www.dynamicchiropractic.com/mpacms/dc/article.php?id=46121.
The Basis for Morality, n.d.
https://www.qcc.cuny.edu/SocialSciences/ppecorino/CISESHV_TEXT/Cha
pter-3-Ethics/ch-3-Basis-for-Morality.html.
Wroblewski, M.T. “7 Guidelines for Making Ethical Decisions.” Small Business -
Chron.com. Chron.com, January 21, 2020.
https://smallbusiness.chron.com/7-guidelines-making-ethical-decisions-
19064.html.
“Dilemma #25 - Can One Action Define You? - Good Character.” Character Education
- Social Emotional Learning - Life Skills - Lesson Plans & Curriculum, April
10, 2019. https://www.goodcharacter.com/dilemma25/.
“Ethical Relativism Full Analysis.” https://www.saintpeters.edu/faculty-
development/files/2013/03/Ethical-Relativism-Full-Analysis.pdf, n.d.
ಕನ್ನ ಡ: ಕಾರ್ಪೊರೇಟ್. February 2, 2019.
https://commons.wikimedia.org/wiki/File:%E0%B2%B8%E0%B2%BE%E0%B2%82
%E0%B2%B8%E0%B3%8D%E0%B2%A5%E0%B2%BF%E0%B2%95_%E0%B2%
B8%E0%B2%BE%E0%B2%AE%E0%B2%BE%E0%B2%9C%E0%B2%BF%E0%B
 2%95_%E0%B2%9C%E0%B2%B5%E0%B2%BE%E0%B2%AC%E0%B3%8D%E0
%B2%A6%E0%B2%BE%E0%B2%B0%E0%B2%BF.png.
Peggy, and Marco Lachmann-Anke. Arrow, Ethics, Credibility. March 2, 2017.
https://pixabay.com/illustrations/arrow-ethics-morality-credibility-2110610/.
Eric, Inpmoxhfan. File:Good Life.jpg. October 25, 2019. Wikimedia Commons.
https://commons.wikimedia.org/wiki/File:Good_life.jpg.
Digital, Business, Ethics. Accessed July 17, 2020. https://www.canva.com/education/.