Bus ethics q3 mod2 The Core Principles Underlying Fairness,

Accountability, and Transparency in Business Operation and

Stewardship nal
Bachelor of Secondary Education major in English (BSED)

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Business Ethics and
Social Responsibility
Quarter 3 – Module 2:
The Core Principles Underlying
Fairness, Accountability, and
Transparency in Business
Operation and Stewardship

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Business Ethics and Social Responsibility – Grade 12
Alternative Delivery Mode
Quarter 3 – Module 2: The Core Principles Underlying Fairness, Accountability, and
Transparency in Business Operation and Stewardship
First Edition, 2020

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Published by the Department of Education

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Undersecretary: Diosdado M. San Antonio

SENIOR HS MODULE DEVELOPMENT TEAM

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 Business Ethics and
Social Responsibility
Quarter 1 – Module 2:
The Core Principles
Underlying Fairness,
Accountability, and
Transparency in Business
Operation and Stewardship

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Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each

SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-check
your learning. Answer keys are provided for each activity and test. We trust that you
will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and tests. And
read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.

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 What I Need to Know

Being an Accountancy, Business, and Management (ABM) student, you can

be employed later in an enterprise or even in a big corporation. Hence, it is important
for you to know the ways on how fraud or problems can be prevented in work areas
or offices. As such, the core principles of fairness, accountability, and transparency
should be learned so that you can apply the knowledge in case you encounter those
fraudulent or problematic situations in the future.

After going through this module, you are expected to:

1. classify the situation if is shows fairness, accountability,
or transparency;
2. explain the core principles of fairness, accountability, and transparency;
and
3. illustrate how fairness, accountability, transparency and stewardship is
observed in business and non-profit organizations.

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 What I Know

Directions: Identify what is defined or described by choosing the letter of your

answer. Write your answers on a separate sheet of paper.

1. It is the explication and justification process.

A. accountability B. fairness C. transparency D. efficiency

2. It is giving to a person what is due to him/her.

A. accountability B. fairness C. transparency D. efficiency
3. This act should be done accurately to the company’s investors.
A. hiring B. reporting C. organizing D. auditing
4. This approach makes a person more honest and sincere.
A. accountability B. fairness C. transparency D. efficiency
5. This means that the standard of judging is free from bias.
A. accountability B. fairness C. transparency D. efficiency

Directions: Identify whether the statement is True or False.

6. When a manager is not bias, he/she is fair.

7. Ted showed transparency when he reimbursed his expenses without showing
official receipts.
8. An employee is accountable to pay whatever company property he/she has
damaged or lost.
9. Fairness is shown when one listens to the two sides of a story.
10. Accountability is shown when one admits his/her mistake and is responsible
for it.
11. Betty exercised fairness when she paid the right amount for an item purchased.
12. Transparency is shown when the accountant hides the records from the other
shareholders of the company.
13. Bobby is exhibiting transparency when he holds an open bidding for
the company’s next project.
14. Mina should pay the money collection that she lost in the restaurant, being the
treasurer of the lending company where she works.
15. A boss may choose who among his employees will be given 13th month pay.

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 Lesson
The Core Principles Underlying
Fairness, Accountability, and
1 Transparency in Business
Operation and Stewardship

What’s In

Directions: Answer the following questions. Write your answers on a separate sheet
of paper.

Recall your On-the-Job Training. Share your observation in the employees’

performance of their duties. Explain your answers briefly.

1. Were the employees fair in the performance of their duties?

___________________________________________________________________________
___________________________________________________________________________

2. Were they accountable when they lost something?

___________________________________________________________________________
___________________________________________________________________________

3. Were the records transparent?

___________________________________________________________________________
___________________________________________________________________________

Notes to the Teacher / Facilitator

For the sharing of their On-the-Job (OJT) training
experience, explain to the students that they need not mention the
name of the company or office where they had their OJT for
confidentiality reason. What is important here is their answer or
their observation.

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 What’s New

Activity 1
Directions: Read the text below and follow the given instructions. Write your answers
on a separate sheet of paper.

Miguel works as an accountant in a big corporation. For 2019, the tax payable
by his company to the Bureau of Internal Revenue (BIR) is more than
Php 10,000,000.00 pesos. Since he is assigned to transact business with the BIR, he
connived with the revenue officer where they both agreed to lower the tax to Php
5,000,000.00 only. Then, the Php 2,000,000.00 was given to the collecting officer
and the Php 3,000,000.00 went to Miguel’s own pocket.
Supposing you work with Miguel at the accounting department and you
suddenly discovered what he did, what would you do?
Put check (/) if the action is acceptable. If not, leave it as it is.
_____ I will talk to Miguel and tell him that I will not report him provided that
he shares with me his part.
_____ I will immediately report him to the manager.
_____ I will not do anything because I do not want to be involved in the issue.
_____ I will share the information to my closest officemate, but we will never
disclose it to others.

Activity 2

Directions: Answer each of the following questions in two to three sentences. Write
your answers on a separate sheet of paper.

1. Have you been blamed for something you did not do?
Explain what happened.
___________________________________________________________________________
2. Have you gotten a grade that you think you did not deserve?
Explain what happened.
___________________________________________________________________________

3. Have you lost somebody else’s property which you just borrowed? Explain
what happened.
__________________________________________________________________________

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 What is It

To help the business organization get on the right track, there are three core
principles that should be implemented in its operation - fairness, accountability, and
transparency.

Fairness
This is the standard of judging which is exempted from bias or prejudice.
When someone displays fairness in making decision, he/she pleases all involved
parties and offers a solution that is beneficial to everyone. In business context,
fairness means balancing the interests involved in all decision-making including
those related to hiring, firing, and the compensation and reward system. Employees
think of their organizations as just when the rewards and the way they are
distributed are fair.

Fairness is giving to a person what is due to him/her. It has something to do

with justice because the employer checks whether the members have the benefits
and burdens distributed evenly to them.

Examples of fairness:
1. A boss listening to both sides of the story before judging who is right
and who is wrong.
2. An employer giving 13th month pay to all his/her employees.
3. A person paying the right price for a product purchased or for a service
received.

Accountability
The most important aspect of preventing and detecting corruption is the
sound accountability structures. A civil society organization without proper systems
of accountability is fragile and open to rumors of mismanagement and abuse of
authority. Worst of all, lacking it will prevent the organization from enjoying full
respect and legitimacy in the eyes of its stakeholders, including those bearers of
duties that it intends to advocate with.

Accountability is the explication and justification process. It is about testing,

forming a judgment, and taking an action if necessary. It also comes with
responsibilities. Holding people to account for those actions which they are
responsible for is fair.

Accountability is therefore an obligation to demonstrate that work has been

carried out in accordance with agreed rules and standards, or to report on
performance results fairly and accurately in relation to mandated roles and/or plans.

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 Examples of accountability:
1. A cashier admits he/she lost the company’s collection and it is his/her
mistake.
2. An engineer who is assigned on a project is the one to be blamed if the
project did not meet the deadlines.
3. Employee A recommended his cousin to be their company janitor, but the
latter stole the cellular phone of their secretary. Therefore, Employee A may
be blamed for recommending his/her cousin and should pay or replace the
lost cellphone.

Transparency
Transparency, at the individual level, considers intrinsic or ethical salience as
an important feature of the relational dimension of a person. It is described as a
personal quality which is necessary to develop unity between and among individuals.
A transparent approach makes a person more honest and sincere in his/her
relationships, in communicating his/her points of view, and in working actively to
find shared meanings and goals.

Organizationally speaking, the instrumental salience of transparency is

identified as an important mechanism for ensuring social responsibility. For
example, adequate disclosure is required to inform donors of how an organization
uses its money.

Transparency helps people to consider how the actions of social organizations

such as multinational agencies and non-governmental groups offer meaningful
support to civil society and whether funding is being properly spent.

More examples of transparency:

1. Reporting accurately the company’s financial situation and risks to investors
2. Holding and selecting bids according to an open pre-defined process
3. Having an open process of decision-making such as in hiring additional
employees

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 What’s More

A. Directions: Classify each situation below whether it shows fairness,

accountability, or transparency by putting a check in the proper column. An
example is given below. Write your answers on a separate sheet of paper.

Situation Fairness Accountability Transparency

Cindy, the treasurer, accommodates
the inquiries as to the cash on hand /
of their cooperative.
1. While fixing his table, Arthur
accidentally dropped the electronic
calculator provided by the company.
2. XYZ Enterprises gave all its
employees 13 th month pay.
3. Sonia and Rita fought inside the
office. Hence, both were suspended
for three days.
4. The cashier took her noon break
but forgot to lock her drawer. To her
dismay, all her collections the whole
morning were stolen.
5. The book of sales of XYZ
Corporation is open for those who are
interested.
6. The employee discovered that
his/her salary was short by P1,000
and asked the payroll officer who, in
turn, showed him/her the records.
7. The purchaser of the company
paid the exact amount for the
supplies.
8. The teller was short by P2,000.
9. The driver forgot to get the
baggage.

10. The boss shows the receipt to the

accountant.

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B. Directions: Cite two situations on how you can apply fairness, transparency,
and accountability in dealing with your teachers and family/parents. Copy
the table below and write your answers on a separate sheet of paper.

Criteria Teachers Family/parents

Fairness

Transparency

Accountability

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 What I Have Learned

Directions: Construct a short paragraph for each number below beginning with the
given phrase. Write your answers on a separate sheet of paper.

1. I could show fairness by __________________________________________________

___________________________________________________________________________
___________________________________________________________________________

2. I could show accountability by ____________________________________________

___________________________________________________________________________
___________________________________________________________________________

3. I could show transparency by _____________________________________________

___________________________________________________________________________
___________________________________________________________________________

Rubrics:
Writing mechanics/Content 3 pts.
Grammar 2 pts.
Total 5 pts. for each number

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 What I Can Do

Directions: Assume that you formed a non-profit organization during this time of
pandemic. It aims to accept donations from concerned individuals or groups and
distribute to those who are in need. As its founder, think of ways on how you could
show fairness to your members and to the beneficiaries, accountability with the office
properties and donations, and transparency in the transactions of your organization.
Describe briefly what you would do. Write your answers on a separate sheet of paper.

Plan of Actions:

Fairness

To Members To Beneficiaries
1. 1.

2. 2.

3. 3.

4. 4.
5. 5.

Accountability

To Office Properties To Donations

1. 1.

2. 2.
3. 3.

4. 4.

5. 5.

Transparency in Transactions

1.
2.
3.
4.
5.

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 Assessment

Directions: Match the term in Column A to its definition/description in Column B.

Write only the letter of your answer on a separate sheet of paper.

A B
1. transparency A. It is the explication and justification process.
2. reporting B. It is giving to a person what is due to him/her.
3. fairness C. This act should be done accurately to the
company’s investors.
4. decision-making D. This approach makes a person more
honest and sincere.
5. accountability E. An example of this act involves hiring of
workers.

Directions: Complete each sentence below by filling in the blank/s . Choose your
answers from the box and write them on a separate sheet of paper.

Efficiency Fairness Transparency

Bias Accountability

6-8 _____________, _________________, and _______________ are the three

important core principles in business organization.

9. _________ is shown when one listens to the two sides of a story before
giving his/her judgment.

10. _________ is shown when one admits his/her mistake and is responsible
for it.

Directions: Read each sentence carefully and identify whether it is correct or

incorrect. Write your answers on a separate sheet of paper.

11. One exercises fairness when he/she pays the right amount for an item
purchased.
12. Transparency is shown when one hides the records from the other
shareholders of the company.
13. Bong is exhibiting transparency when he holds an open bidding for
company’s next project.
14. Lito should pay the money collection which he lost in the restaurant, being
the treasurer of the lending company where he works.
15. A boss may choose who among his/her employees will be given Christmas
bonus

11

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 Additional Activities

Directions: Recall your On-the-job training experience. Were there violations on the
following principles? Write your answers on a separate sheet of paper. Explain your
answers briefly.

1. Fairness
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

2. Accountability
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

3. Transparency
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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 2 3

13

What I Know What’s In What’s New

1. A Answers may vary __ ___ I will
2. B
immediately report
3. B
4. C him to the manager .
5. B
6. True
7. False
8. True
9. True
10. True
11. True
12. False
13. True
14. True
15. False

What’s More What I Have Learned What I Can Do

A. Answers may vary Answers may vary
1. Accountability
2. Fairness
3. Fairness
4. Accountability
5. Transparency
6. Transparency
7. Fairness
8. Accountability
9. Accountability
10 Transparency
B. Answers may vary

Assessment Additional Activities:

Answers may vary
1. D
2. C
3. B
4. E
5. A
6-8 may be in any
order
6. Fairness
7. Accountability
8. Transparency
9. Fairness
10. Accountability
11. Correct
12. Incorrect
13. Correct
14. Correct
15. Incorrect

Answer Key
References
DepEd 2016. DepEd’s Curriculum Guide for Business Ethics and Social
Responsibility, s. 2016

DepEd 2020. DepEd’s Most Essential Learning Competencies MELC for Business
Ethics and Social Responsibility, s. 2020

Racelis, Aliza. 2017 Business Ethics and Social Responsibility. Manila: Rex Book
Store, Inc.
Rescorrection.com. 2020. Photography of a Person Pointing Something. Retrieve from
https://www.pexels.com/photo/photography-of-a-person-pointing-on-
something-684387/.

Roa, Floriano. 2011. Business Ethics and Social Responsibility. Manila: Rex Book
Store, Inc.
Shimazaki, Sora. 2020. Judgment Scale and Gavel in Judge Office.
https://www.pexels.com/photo/judgement-scale-and-gavel-in-judge-office-
5669602/.

Spacey, John. 2016. 11 Examples of Transparency. Retrieved from

https://simplicable.com/new/transparency.

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