University of San Jose-Recoletos School of Business

and Management Magallanes St. Cebu City, Philippines

OM 13 GOOD GOVERNANCE AND SOCIAL RESPONISBILITY

COURSE SYNTHESIS

MARY CLARE Q. GARING

BSBA-FM 2

MR. RICHELLE GANANCIAL

January 01, 2023
This course examines the concept of good governance and social responsibility in the
context of public and private organizations. It will explore the various dimensions of good
governance, such as accountability, transparency, participation, and inclusiveness. The
course will also examine the role of social responsibility in organizational decision-
making, and how it can contribute to sustainable development. Good governance has
been defined as “the process of decision-making and the process by which decisions are
implemented (or not implemented) in the public sector.” Good governance is about the
processes for making and implementing decisions within organizations.

Good governance is important in both the public and private sectors. In the public sector,
it is essential for ensuring that government services are delivered efficiently and
effectively and that public money is spent wisely. In the private sector, good governance
is essential for ensuring that businesses are run responsibly and that they create value
for their shareholders. There are many different models of good governance, but all
models share some common features, such as accountability, transparency,
participation, and inclusiveness.

Business ethics is the study of ethical principles and standards that guide businesses and
business decision-making. Business ethics includes the examination of moral issues that
arise in the business environment, such as corruption, bribery, and discrimination.
Business ethics also includes the application of ethical principles to business behaviors,
such as marketing and advertising, product safety, and corporate governance. It is
concerned with the way power is exercised and with the structures and processes that
have been established to check and balance that power.

Business ethics is important because it helps businesses to operate responsibly and to

create value for their shareholders. Good business ethics is essential for maintaining a
positive reputation, attracting and retaining customers, and attracting and retaining
employees.

There are three main approaches to business ethics which is deontological approach,
teleological approach, and virtue approach. The deontological approach is based on the
principle of duty. This approach holds that businesses should act in accordance with a
set of ethical principles. The teleological approach is based on the principle of utility. This
approach holds that businesses should act as such. Business ethics includes the
examination of moral issues that arise in the business environment, such as corruption,
bribery, and discrimination. Business ethics also includes the application of ethical
principles to business behaviors, such as marketing and advertising, product safety, and
corporate governance. It is concerned with the way power is exercised and with the
structures and processes that have been established to check and balance that power.

The benefits of having strong ethical values in an organization include maintaining a good
reputation, attracting and retaining customers, and attracting and retaining employees.
The risks of disregarding ethical values in an organization include damaging the
reputation of the organization, losing customers, and losing employees.

Organizational ethics is a broad and dynamic concept that includes an ethical

environment, levels of trust, moral awareness, and ways of acting to ensure that a shared
set of values that promote the common good becomes the organization's prevailing
culture. Organizational ethics encompasses both the organization's corporate values and
its financial practices. They are concerned with all aspects of the organization, such as
the mission, vision, governance, and leadership.

There are also ethical challenges such as use of social media, employee favoritism, and
bad leadership behavior. To ward off any potential ethical issues, a small business owner
should create a clear set of social media policies for employees. Policies can cover both
how and if workers can use any social media programs while in the office, as well as what
they are allowed to say about the workplace on public-facing social media pages. While
it's not unreasonable for the owner of an organization to have employees that they enjoy
working with more than others, there can be ethical issues if the person in a position of
leadership shows favoritism to an employee without any merit behind it. Leaders or
superiors should never show favoritism when it comes to their employees, they should be
fair in their treatment to all of their subordinates. Sometimes, it's not the employee who
exhibits unethical behavior, but the owner or head of the company. Putting rules in place
for employees but not following them yourself is an example of an ethical issue in the
workplace. To keep your employees motivated and satisfied with their workplace, a leader
should practice what he preaches and keep his own behavior ethical.
Corporate governance is the set of rules, procedures, and processes that guide and
control a company. Corporate governance is balancing the interests of a company's
numerous stakeholders, which include shareholders, top management executives,
consumers, suppliers, financiers, the government, and the community.

CSER is a wide term that typically indicates a company's commitment to ethical business
practices. Corporate Social and Environmental Responsibility (CSR) is a management
idea that asserts that companies incorporate social and environmental issues into their
business operations and stakeholder engagement. Responsible management provides
win-win scenarios for society and organizations. Sustainability is the shared ground upon
which states and responsible businesses base their actions: markets flourish wherever
poverty decreases. Productivity and competitiveness rise when businesses can rely on a
qualified and motivated workforce. Resources can regenerate in areas where the
environment is preserved, and supply-related concerns are reduced.

The relevance of this subject to my future endeavors or goals is that it can be applied
whenever I make a decision in my workplace. I will know if my workplace is practicing
good governance and knows their responsibility in the society. In addition, it will help me
build a good reputation if I always include ethics in decision-making and I can identify
whether what I do in my work is ethical or not. I will also know if there are people or if the
employer of where I work is practicing business ethics and has a good governance and
social responsibility. If not then I have the choice to make a decision whether to leave and
look for a better organization or stay in a certain organization that I am fully aware of that
it has been doing unethical practices.

A person wouldn’t want to work in an organization where her conscience will haunt her
every time because she knows that the workplace where she works in does unethical
practices which shows that she is one of the bad guys if she let things slide even though
she knows that she can do something to stop it. If you also become the leader then you
should apply what you have learned in this subject so that your organization will have the
best of everything, from the higher ups down to the subordinates and employees. It will
be a good workplace for everyone and it will for sure become one of the successful
organizations.
Each department in an organization has different ethical practices depends on what
department it is. Ethics in HR means helping an organization embed and uphold its values
at all levels in order to maintain and increase trust. The purpose of financial accounting
ethics is to ensure that certified public accountants (CPAs) conduct their duties objectively
and with integrity. Marketing ethics is the set of principles that are moral in guiding the
way a company does its promotional activities. Operations ethics is the basic standard
that governs how a company conducts its business. On how all of the actions and systems
should work together for a company to generate revenue.

Simply expressed, the term "ethics in technology" refers to the moral standards that guide
the proper use of technology. These values cover a variety of topics such as
responsibility, online conduct, privacy rights, freedom, and more. A scientific community's
self-regulation of its own conduct, on the other hand, is the only means of resolving the
tension between professional autonomy and social control. This is because ethics of
science and technology are a type of professional ethics.

Stakeholder Theory vs Shareholder Theory

The shareholder theory and the stakeholder theory are both normative theories of
corporate social responsibility that specify what a firm should be doing. Since corporate
leaders and managers should base their judgments on the correct theory, they can also
be viewed as normative theories of business ethics. Unfortunately, the two ideologies
have quite different ideas of what is right in this situation.

According to shareholder theory, shareholders finance a business's management with

capital, and those managers are only allowed to use company funds in ways that the
shareholders have approved. The stakeholder theory, on the other hand, claims that
managers have a responsibility to both the corporation's shareholders and "individuals
and constituencies that make a contribution, either willingly or unwillingly, to a company's
wealth-creating capacity and operations, and who, as a result, are its primary
beneficiaries and/or risk bearers."

Rules-based approach vs Principle-based approach

A principles-based approach to corporate governance is an alternative to a rules-based
approach. This states that a single set of rules for all companies in all situations is not
possible. Instead of a set of exact rules, a corporate governance code consisting of a
set of principles that companies should apply to any given situation should be used. It
has been characterized by some as being too weak to seriously address the corporate
governance failures seen over the last few years, others have argued that the
differences between the Canadian and United States capital markets justifies such an
approach.

A rules-based approach to corporate governance is based on the view that companies

must be required by law (or by some other form of compulsory regulation) to comply
with established principles of good corporate governance. The rules might apply only to
some types of company, such as major stock market companies. However, for the
companies to which they apply, the rules must be obeyed and few (if any) exceptions to
the rules are allowed.

The rules-based approach, however, has the benefit of providing for precise application
but it can only address circumstances known or anticipated by the legislators at the time
of implementation. By their very nature, rules become outdated as circumstances change
and thus results in firms complying with the letter of the law, rather than the spirit, or
underlying principles, of the law. On the other hand, without investors effectively
monitoring firms’ corporate governance policies, the principles-based system could result
in firms complying with those “best practices” that suit the narrow purposes of
management, and not shareholders.

Therefore, it is essential to understand regarding specific courses, like this one, that
educated students the value of good governance and social responsibility to an individual
or an organization. the different kinds of ethics and ethical issues that are frequently
encountered on a daily basis or at work. Comparison and correlation of theories that are
relevant to conducting business or that are helpful for someone who plans to start their
own business or work for an organization. The type of corporate governance approaches
that a corporation uses and the benefits and drawbacks of each. The relevance of ethics,
both professionally and personally, once you begin working or running a business.
References:

https://www.scu.edu/ethics/focus-areas/technology-ethics/

https://sloanreview.mit.edu/article/the-shareholders-vs-stakeholders-debate/

Li, K., & Broshko, E. B. (2006). Corporate governance requirements in Canada and the
United States: A legal and empirical comparison of the principles-based and rules-based
approaches. Sauder School of Business Working Paper.
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Oyeleye, TJ. (2020, November). Approaches to Corporate Governance. StuDocu.

https://www.studocu.com/row/document/ajayi-crowther-
university/accounting/approaches-to-corporate-
governance/10373899?fbclid=IwAR1nz0iE7iY-QfiZejd7srlKLH7-
+TA_tpRQiMkL96C1u5Lc_SfRehdly6e0