Ethical Frames of Reference:

The following are five theoretical models that often influence organizational
decisions:

1. Economic Theory. Under economic theory, the purpose of a business

organization is to maximize profits. Profit maximization will lead to the
greatest benefit for the most people. Other than profit maximization, there are
no ethical issues in business
----- In this theory the profits that are gained by a business is being maximized
kasi sa in the economic theory naniniwala sila na pag namaximize yung profit
is mas magkakaroon sila ng greater benefit. One example.nito is yung supply
and demand sa business.

 Limitations of Economic Theory: Assumptions of profits being evenly

distributed is naive. Not all business decisions relate to profit making, and
some ways of increasing profits hurt society.
----- only this theory has limitations like yung pagdidistribute ng profit is not
really equal. And may mga decision na ginagamitan ng ganitong theory na
hindi naman nagaacquire ng profit talaga and some times yung pag increase ng
profit sa theory na ito ay may masamang effect sa society

2. Legal Theory. Laws are a reflection of what society has determined is right
and wrong. Compliance with the law ensures ethical behavior.
----- Sa theory na to they use the law to reflect sa kung ano yung tama o hind
isa mga decisions na gagawin ng isang organization. This theory strongly
believes na pag yung decision nila is based sa law it means the organization is
ethical.
 Limitations of Legal Theory: The social and political processes used to
formulate laws are complex and time consuming. Because the processes
are subject to manipulation, the laws may not truly reflect the interests of
society.
----- When it comes to this theory’s limitation naman since they follow the law
masyadong magiging time consuming dahil na din sa kung paano pinaprocess
ang mga batas.

3. Religion. Everyone should act in accordance with religious teachings.

----- Next is yung religion where it acts as a reference sa kung paano
gumagalaw ang lahat. Because yung mga paniniwala na meron tayo can greatly
affect the decisions that we make.

 Limitations of Religion: As a model for business decision making, religious

values are difficult to apply. 
----- In this theory naman mahihirapan lang sila kasi there are different
religions that has different beliefs and in decision making dapat kinoconsider
lahat to avoid discrimination of beliefs

4. Utilitarian Theory. Utilitarian theory says to focus on the outcome of a

decision. Everyone should act in a way that generates the greatest benefits for
the largest number of people.
----- In this theory, they focuses on the majority of the people. As the name
itself says, Utilitarian focuses on the benefit that majority of the people can get.
Mas importnte sa kanila yung benefit na makukuha ng nakararami. Example
nito is yung pricing ng service or products sa different types of consumers.
Like yung sa senior citizen, the way that they have a discount when they show
their IDs is isang example ng utilitarianism
 Limitations of Utilitarian Theory: Under this model, immoral acts that hurt
society or a minority group can be justified if they benefit the majority.
------ One of the disadvantage naman nitong model na to is yung pagignore dun
sa mga small group na maapektuhan negatively kasi majority naman is
magbebenefit.

5. Universalist Theory. Universalist theory says to focus on the intent of the

decision. Every person is subject to the same standards
----- Eto naman is nagfofocus sa kung ano yung aims or yung intent ng isang
decision. Also this theory believes na lahat tayo ay na sa ilalim ng
pareparehoong standard.

 Limitations of Universalist Theory: This model provides no absolutes.

What one person believes is acceptable for all in society may be offensive
to others.
----- the limitation of this theory is that it has no specific beliefs and ang isang belief
ay kinoconsider na acceptable din sa iba kahit na offensive sya sa iba.

Codes of Ethics:

 Many organizations create a code of ethics in a further effort to

communicate the values of the corporation to employees and other
stakeholders. Another benefit of a code of ethics is that it allows the firm
to clarify to employees what behavior is considered appropriate. Some
codes of ethics set a minimum standard of behavior by stating that
employees are expected to obey all laws.
----- karamihan sa mga organization na nageexist ay nagpapatupad ng code of
ethics para mas magkaroon sila ng mas maayos na communication sa mga
employee and stakeholders ng company. Isa sa mga benefit ng code of ethics
mas nagkakaroon ng malinaw na pagkakahulugan sa kung ano ang tama at
maling paguugali ang pwede sa isang korporasyon. Example is may mga
company na pinapaikli lang yung code of ethics by saying na they must obey
all laws.

ETHICS SYSTEMS:

 To ensure that employees abide by the corporate code of ethics, some

companies establish an ethics system, including an audit process to
monitor compliance. Employees are encouraged to report violations to
their supervisors or a designated corporate ethics officer. Some
companies allow these reports to be anonymous through use of toll-free
numbers to reduce the possibility of retribution against employees for
making reports of violations. 
----- Ethic system is made para masigurado ng mga company na masusunod
ang lahat ng nakasulat sa code of ethics. Kadalasan mga employees yung
magrereport ng mga violations na ginawa ng isang member ng company sa
mga supervisor nito or dun sa mga officers na assigned to take care sa mga
ganong violations. And minsan yung ibang company mas pinipili nil ana
anonymously mag report ang mga employee nila just to make sure that after the
violation report there will be no another issue that may arise for example is
yung sama ng loob nung nagviolate dun sa nagsumbong sa higher officers.

Ethics in Global Environments:

 Dealing with the ethics of employees, customers, and other stakeholders

and the society from which they are drawn is a difficult task even in
organizations that compete within a single domestic economy. However,
 the difficulty level increases for global organizations, because value
systems are highly divergent across international boundaries. 
----- Ethics is really a difficult topic for companies specially if they are
competing with the domestic economy. At yung level ng difficulty ay
nagiincrease kapag ang isang organization is globally known because every
country there are diffetent boundaries that they must consider. For example a
chain of hotels that exists in a lot of country. Dapat icoconsider nila yung mga
beliefs na meron each country in order to make a code of ethics na applicable
sa country na kinatatayuan nung hotel.

 For example, a survey of 3,783 female seniors attending 561 universities

and colleges in Tokyo revealed that they not only expected sexism in the
workplace, but also didn’t seem to mind it. “More than 91 percent said
they would not mind being treated as ‘office flowers.’ Nearly 25 percent
considered that to be a woman’s role. Over 66 percent said acting like an
office flower would make the atmosphere more pleasant.”68 This
attitude concerning the role of women, which is still widely held in
Japan, would be considered unacceptable in many other countries,
including the United States.
----- You don’t need to explain this. It’s an example you can just read it.