SHS

BUSINESS ETHICS
Module 3
Business Ethics
Grade 12: Module 3
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Ma. Paz F. Garcia, MT -II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS
Lorna O. Gaspar, EPS in Charge of ABM
Michael Jason D. Morales, PDO II
Claire P. Toluyen, Librarian II
 Target

In the previous lesson, you have learned about the core principles underlying
fairness, accountability and transparency in business operation and stewardship in
the socio-economic development of a country.

This module will provide you with information and activities that will help
you understand better the common practices in business organizations such as
decorum, protocol, policies, marketing, bookkeeping, reportorial requirements and
documentation, and others.

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

1. Distinguish between good policies/practices and morally acceptable

policies/practices (ABM_ESR12-IIIa-d1.6).
2. Craft simple “Code of Ethics” or “Codes of Right Conduct”.
Pre-Test:

Direction: Read and understand the statement then select the letter with the
best answer by encircling it.

1. Which of the following is the best explanation of a business code of conduct?

A. A set of ethical standards
B. A set of rules regarding legal compliance
C. A set of rules regarding business values
D. A set of rules business’ values, beliefs and ethics as well as rules
governing legal
2. Which of the following is NOT a type of business code?
A. Code of Conduct B. Code of Practice
C. Code of Ethics D. Code of Morality
3. What should be done when introducing yourselves in a meeting?
A. Tell only your name
B. Tell both your name and surname
C. Tell only your surname
D. Tell only your designation
4. How do you demonstrate professionalism at work?
A. Treat others with respect
B. Take many breaks to gossip with other employees
C. Help with a project and make sure you get all the credit
D. Tell everyone private personal details about your boss
5. Your friend, Joan, dropped by in your workplace one afternoon. Where will
your friend stay?
A. At your workstation
B. In the waiting area
C. In your co-workers station who is out in the office
D. In the bathroom
6. The set of rules, forms and practices established for behavior in a polite
society.
A. Business Etiquette B. Ethics
C. Etiquette D. Netiquette
7. What should NOT be done in a meeting?
A. Be firm in what you say
B. Raise your hand up when you want to speak
C. Raise the tone of your voice
D. Taking important details of the meeting
8. Mr. Sika Tuna attended a meeting together with the resort owners of San
Juan held at Isla Bonita Resort. Many things are discussed. What two things
should he do after the meeting?
A. Concentrate and reflect
B. Communicate and reflect
C. Forget everything immediately
D. Rethink and communicate
 9. You are newly hired Accounting Clerk in a reputable banking institution.
How many working hours would you render to the company?
A. 7 hours B. 8 hours C. 9 hours D. 10 hours
10. It is a set of organizational rules or standards regarding organizational
values, beliefs, and ethics that govern the conduct of the organization and its
members.
A. Code of Conduct B. Code of Ethics
C. Policy D. Rules and Regulations

Jumpstart

Direction: Read the case below then answer the questions that follow. Write your
answer on the space provided.

Michelle Go began employment with Luxor Tours Company when she was
hired as probationary employee as tourist guide in 2005. Her application form
showed that she was a BS Tourism graduate of a university e in tour-guiding.

Michelle’s performance as tourism guide was satisfactory, but she had

difficulty building positive relationships with supervisors, peers, or subordinates.
“Michelle is weird” was a comment given by a peer when asked if she was getting
along well with her.

On the fifth month of her probationary employment, a written performance

evaluation was done and the result was poor; “lack of focus,” “tactless remarks,”
“chronic tardiness” were comments that appeared in many evaluation sheets. At
the end of the fifth month of her employment, Michelle was given a “thank you
letter” by the Luxor management, terminating her probationary employment.

Three years later, Luxor Tours acquired smaller tour agency. Luxor HR
manager Lynn Sotto, while preparing for the merger, saw Michelle’s name in the
employees’ list of the said tour agency. Upon checking, she verified that, indeed, it
was Michelle Go whose service they terminated a few years ago. She held a middle-
management position and her personal files, when reviewed, showed some
questionable entries like the following: that she was a BS Tourism graduate of a
leading university; that from 2001 to 2004 she managed a tour agency in Manila;
her employment with Luxor was no mentioned at all.

Lynn had a dilemma: should she report the false claims in Michelle’s files to
the owner/general manager of Luxor Tours?
Questions:

1. If you were in Lynn’s position, will you report what you found out about
Michelle to Luxor’s Management? Explain your answer briefly.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
____________
2. As the owner/manager of Luxor tours, how will you handle this case if the
information was reported to you? Explain your answer briefly.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

SCORING RUBRIC

Criteria (3 pts) (2 pts) (1 pts)

Explanation Explanation was Explanation was Explanation was not
deep, reveals somehow deep, with deep, limited insights,
feelings and insights through use of uses some detail
thoughts, specific details
abstract ideas
reflected
through use of
specific details

Let Us Study

Words to study...

Decorum appropriateness, polite behavior in a society

Protocol proper procedure or conduct

Policy set of guidelines or rules

Code of Ethics set of guidelines that assist individual in

understanding the difference between what is
right and wrong.
Code of Conduct a set of organizational rules or standards
regarding organizational values, beliefs, and
ethics
BUSINESS DECORUM

Decorum is from a Latin word meaning “right or wrong”. It is the

appropriateness, polite behavior in a society. The concept of decorum is applied to
prescribed social behavior limits of appropriate within set situations. It is defined
as appropriate, polite behavior in society. It is a behavior that people consider to
be correct, polite and respectable.

Code of Ethics or Code of Conduct is a set of organizational rules or

standards regarding organizational values, beliefs, and ethics as matters of legal
compliance that govern the conduct of the organization and its members.
Organizational members are responsible for adhering to the code of conduct and
will be held accountable for failure to do so.

DECORUM

Directions: Identify five (5) professionals/SK Council officials in your

community. Fill in as much information about them in the space provided.
Based on their character descriptions, identify their appropriate conduct
and behaviour.

Name of SK Position Gender Additional Expected

Council Official/ Information Conduct
Professional and
Behavior

SCORING RUBRIC

Criteria (5 pts) (4 pts) (3 pts)

Complete and Partially complete and Incomplete but
reliable response was evident reliable response was
Content
response was evident
evident
Shows complete Shows partial Shows understanding
Demonstrated understanding understanding of the but answers are
Knowledge on the given activity with complete incomplete
activity answers
Goes beyond the Meets the needed Hardly meets the
requirements requirement of the activity needed requirement of
Requirement
needed of the the activity
activity
 Discover

WHAT IS CODE OF ETHICS?

ETHICAL CODE OR CODE OF ETHICS are principles adopted by an

organization to assists those in the organization called upon to decide; it is about
understanding the difference between “right” and “wrong” and to apply this
understanding to their decision. In addition, Code of Ethics is a written set of
guidelines issued by an organization to its workers and management to help them
conduct their actions in accordance with its primary values and ethical standard.

CODE OF CONDUCT

It is a document designed to influence the behavior of employees. They set out

the procedures to be used in specific ethical situations and delineate whether a
violation of the code of ethics occurred and, if so, remedies should be imposed.

CODE OF PRACTICE

It is adopted by a profession or by a governmental or non-governmental

organization to regulate that profession. It maybe styled as code of professional
responsibility, which will discuss sensitive issues that will often need to be made,
and provide a clear amount of what behavior is considered “ethical” or “correct” or
“right”.

CODE OF ETHICS

It is not written solely for the purpose of doing ethical business practice. It can
also be applied and practiced in school, government, and even professional
groups.

There is code of ethics for teachers, accountants, engineers, lawyers,

doctors, nurses, and all other professionals to ensure that they are following the
same ethical standards in their professional practice.
 Explore

Activity 1: Finding the ETHICAL or UNETHICAL?

Direction: Write ETH if the statement shows ethical behavior otherwise UNETH if
it is unethical.
_____ 1. Taking credit for others work
_____ 2. Using or taking company’s supplies for personal use.
_____ 3. Engaging in negative gossip about someone you work with.
_____ 4. Extending snack/ lunch break,
_____ 5. Obeying company’s rules and regulations.
_____ 6. Lying inside and outside the workplace.
_____ 7. Developing professional relationships with co-workers.
_____ 8. Using foul language on co-workers in and out of the workplace.
_____ 9. Conducting personal business during office hours.
_____ 10. Showing initiative without being told.

Activity 2: TRUTH or LIE

Direction: Read carefully each statement then decide whether the statement is
correct or incorrect. Write TRUTH if it is correct otherwise LIE.

_________ 1. To enhance the profits of a business continuously is the objective of

the Code of Ethics.
_________ 2. Employees should obey only written work rules.
_________ 3. Ethics is a set of principles of conduct governing an individual or
group.
_________ 4. Ethical character traits include integrity, honest and justice.
_________ 5. Code of Ethics is a written statement of policies and principles that
guides the behavior of all employees or members of an organization.
Activity 2: TELL ME ….

A. Direction: As member of the Sanguniang Kabataan, you are task to

interview your Barangay Chairman and its Council and the SK Council on
their existing policies, rules, regulations and Code of Conduct implemented
in the community. Follow the format given.

Interview Guide:

1.) Name of Barangay:_______________________________________________________

2.) Name of Brgy. Chairman: ________________________________________________
3.) Sangguniang Barangay: _________________________________________________
: ______________________________________________
: ______________________________________________
: ______________________________________________
: ______________________________________________
: ______________________________________________

4.) What are the vision, mission and values of your Barangay?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
5.) Do you have local policies, rules and regulation implemented in the
barangay?
__________________________________________________________________________
6.) Do you have Code of Conduct for all Barangay Officials to follow?
__________________________________________________________________________
7.) How do you craft your Code of Conduct? Polies, Rules and Regulations?
__________________________________________________________________________
8.) Who are the members involved in crafting the Code of Conduct?
__________________________________________________________________________
9.) Why do you make your own Code of Conduct? Policies, Rules and
Regulations?
__________________________________________________________________________
__________________________________________________________________________

Direction: Write a Narrative Report containing the important findings of your

interview to be submitted. Handwritten report is encouraged. Use a separate
sheet of paper.

___________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
__________________________________________________
RUBRIC FOR NARRATIVE REPORT
Meets Nearly Meet Does Not
Exceeds Standards Standard Meet
CRITERIA Standards (3pts) (2pts) Standard
(4 pts) (1 pts)
Reflects Shows great depth Relates Does not go Little or no
Personal of knowledge, learnigns with deeply into the explanation
Learning reveals feelings and personal and reflection of or reflection
thoughts, abstract general learning, on learning,
ideas reflected refelections generalizations few details to
through use of included, uses and limited support
specific details concrete insights, uses reflections
language some detail
Organizatio Demonstrates Paragraph Organization of No evidence
n/structural logical and development ideas not fully of structure
developeme sequencing of ideas present but not developed or
nt of the through well perfected organization
Idea developed
paragraphs
Conclusion The conclusion is The conclusion The consclusion Incomplete
engaging and restates the does not and or
restates personal learning adequately unfocused
learning restate the
learning

Deepen

Activity 1: MY OWN CODE OF RIGHT CONDUCT

Direction: Identify 10 personal traits that would be included in your personal

code of right conduct. Explain how you will implement these traits in your daily
life. Use a separate sheet of paper.

MY OWN CODE OF RIGHT CONDUCT

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
RUBRIC FOR PERSONAL CODE OF ETHICS OR RIGHT CONDUCT

Meets Nearly Meet Does Not Meet

Exceeds Standards
CRITERIA Standards Standard Standard
(10 pts) (9pts) (8pts) (7 pts)
Identified the 10 Identified the 8- Identified 6-7 of Identified 5
Personal required personal 9 of the required the required and below of
Traits traits personal traits personal traits the required
personal traits
Explanation Explanation was Explanation was Explanation was Little or no
deep, reveals somehow deep, not deep, limited explanation,
feelings and with insights insights, uses few details to
thoughts, abstract through use of some detail support
ideas reflected specific details answers
through use of
specific details

Gauge

Direction: Read and understand each statement. Select the letter with the best
answer. Write in your answer sheet.

1. How do you demonstrate professionalism at work?

A. Treat others with respect
B. Take many breaks to gossip with other employees
C. Help with a project and make sure you get all the credit
D. Tell everyone private personal details about your boss

2. Which of the following is the best explanation of a business code of conduct?

A. A set of ethical standards
B. A set of rules regarding legal compliance
C. A set of rules regarding business values
D. A set of rules business’ values, beliefs and ethics as well as rules
governing legal

3. Which of the following is NOT a type of business code?

A. Code of Conduct C. Code of Practice
C. Code of Ethics D. Code of Morality

4. Mr. Sika Tuna attended a meeting together with the resort owners of San
Juan held at Isla Bonita Resort. Many things are discussed. What two things
should he do after the meeting?
A. Concentrate and reflect B. Communicate and reflect
C. Forget everything immediately D. Rethink and communicate
5. How do you demonstrate professionalism at work?
A. Treat others with respect
B. Take many breaks to gossip with other employees
C. Help with a project and make sure you get all the credit
D. Tell everyone private personal details about your boss
6. In a team meeting, your boss congratulates you for a project that was done
by someone else from the team. What will you do?
A. Never say anything about it
B. Explain to your boss immediately that it was not your work and give
credit where credit is due.
C. Stay silent in the meeting and later approach your co-worker you are
sorry that the boss did that.
D. None of the choices above

7. It is a set of organizational rules or standards regarding organizational

values, beliefs, and ethics that govern the conduct of the organization and its
members.
A. Code of Conduct C. Code of Ethics
C. Policy D. Rules and Regulations

8. You are newly hired Accounting Clerk in a reputable banking institution.

How many working hours would you render to the company in a day?
A. hours B. 8 hours C. 9 hours D. 10 hours

9. Your company has a policy that prevents employees from accepting gifts. The
policy also requires that you inform your manager about the gift. A supplier
you have known for several years offers you a hotel gift certificate. Will you
accept the gift?
A. Yes, accept the gift and do not tell your manager about it.
B. Yes, accept the gift but tell to the supplier not to talk.
B. No, inform the manager and hope for her approval.
C. No, bargain for another offer.

10. Which of the following is a practice of fair treatment of workers at a

workplace?
A. Recreation of facilities at the workplace
B. Right of workers to fairness and dignity
C. Right of workers to have a share in company’s profit
D. None of the above
11. A businessman who owns a medical store in a small town is the only outlet
that sells facemask. There is a great necessity and high demand for the use of
the item due to COVID-19 pandemic., so he charges irrational amount of
doubling the price. The community gets mad of the situation. This business
practice is most likely…
A. Ethical because it is not illegal for the owner to set its prices based on
maximizing profits.
 B. Ethical because the owner focuses only on the impact of decisions on
his business.
C. Unethical because business operates in a community and communities
have expectations for behavior of individuals, groups, and business
D. None of the above

12. Which of the following is the study and practice what is right or wrong?
A. Business B. Ethics
C. Law D. Morals

13. What do you think is the benefit of practicing good business ethics?
A. Decrease in product sales B. High employee retention rate
C. Lack of trust D. Low morale of employees

14. John is always late in his client’s meeting. What can you say about him?
A. John is very dedicated. B. John is optimistic.
C. John is unprofessional. D. John is busy.

15. Which is considered an unethical business practice?

A. Buying substandard materials for production.
B. Hiring the most qualified applicants for vacant positions.
C. Selling a good quality product.
D. Treating employees fairly.
References:
Business Protocol: How to Survive & Succeed in Business; Jan Yager; 2000
Cohen, Bryan. Types of Protocol in Business last modified July 24, 2020. https://bizfluent.com/list-
6767617-types-protocol-business.html

Reeher, Jason. General Company Policies and Procedures last modified July 24, 2020.
https://bizfluent.com/about-5479660-general-company-policies-procedures.html

(Cabrera, Helena Ma. F.; Altarejos, Anthony DC.; Benjamin, Riza; 2017)

Roa, Floriano C. (2007). Business Ethics and Social Responsibility

Quezon City, REX Bookstore
ANSWER KEY:
Pre-Test: EXPLORE :
1. D Activity 1: Activity 2:
2. D 1. UNETH 1. LIE
3. B 2. UNETH 2. LIE
4. A 3. UNETH 3. TRUTH
5. B 4. UNETH 4. TRUTH
6. A 5. ETH 5. TRUTH
7. C 6. UNETH
8. B 7. ETH Activity 3:
9. B 8. UNETH Answers may vary
10.B 9. ETH
10. ETH
JUMPSTART:
Activity 1 : Answers may vary
Activity 2 : Answers may vary
GAUGE
1. A 11. C
2. D 12. B
3. B 13. B
4. B 14. C
5. A 15.A
6. B
7. D
8. B
9. C
10.B