John Carlo C. Pendon Richard A.

Matias
PCBEA-01-202P Professor

Governance, Business Ethics, Risk Management, and

Internal Control

Review Question for Chapter 5

1. Define "Ethics".
• Ethics is a set of principles or standards of human conduct that govern the behaviour of individuals
or organization. Ethics can be defined as the discipline dealing with moral duties and obligation, and
explanation what is good or not good for others and for us. Ethics provide accountability between the
public and the administration. Ethics provide accountability between the public and the
administration. Adhering to a code of ethics ensures that the public receives what it needs in a fair
manner. It also gives the administration guidelines for integrity in their operations.

2. What is the basic purpose of a code for a profession?

• Professional codes of conduct use these professional ethical concepts as the foundation for prescribing
mandatory behavior norms for members of a profession. They also strive to define the profession's and
society's expectations of its members. A professional code of ethics is intended to ensure that employees
behave in a socially acceptable and polite manner toward one another. It creates the ground standards
for behavior and communicates to all employees that universal compliance is anticipated. Codes of
conduct are intended to provide guidance for the minimal standard of appropriate behavior in a
professional setting. Rules of behavior coexist with general legislation and the personal values of
members in the profession.

3. Name and explain the characteristics and values associated with ethical behavior.

• Integrity - Be principle, honorable, upright, courageous and act on convictions; do not be twofaced
or unscrupulous, or adopt an end justifies the means philosophy that ignores principles.

• Honesty - Be truthful, sincere, forthright, straightforward, frank, candid; do not cheat, steal, lie
deceive or act deviously.

Trustworthiness and Promise Keeping - • Trust is a central characteristic of an

ethical life because it affects every aspect of personal, social, and particularly business relations.
Research studies have consistently shown that companies with a strong ethical and trusting culture
are more profitable than those without it.

• Loyalty (Fidelity) and Confidentiality - Be faithful and loyal to family,

friends, employers, client and country. It stems from the notion that a person's wishes, decisions, and
personal information should be treated with respect.
• Caring for Others - Be caring, kind and compassions, share, be giving, be service to others, help
those in need and avoid harming others.

• Respect for Others - Perhaps the most fundamental ethical precept of all is respect for individuals.
Each and every one of us must uphold the inherent dignity of all other people, according to the
definition of respect (full). Something that is inherent to us is something that is necessary to who we
are and cannot be acquired. It is a quality of personhood.

• Responsible Citizenship - It entails contributing as a community member. It embodies civic

obligations as well as virtues. When we talk about citizenship, we should be cautious when referring
to something as an obligation or a duty.

• Pursuit of Excellence - In other words, the ethical as a means of responding to truthfulness and the
quest of excellence are mutually related. Excellence is therefore a hermeneutic act of upholding the
ethical while committing to seeing the other from a three-fold perspective of reciprocity, solidarity,
and hospitality.

• Accountability - Accountability is the quality of being held accountable for a system's actions,
behaviors, and prospective effects. Accountability is the acceptance of responsibility for deeds,
choices, and outcomes. Legal or moral responsibility is possible (ethical).

4. Explain why ethical behavior is necessary.

Ethical behavior is necessary because In order to tell the truth, maintain our word, or assist a stranger
in need, we must follow ethical principles. Everyday decisions we make are guided by an ethical
framework that helps us avoid unjust results and helps us make decisions that have good effects on
the world.

5. What are some of the reasons why people act unethically?

Some issues are more likely to lead to unethical choices. Employees are more likely to act unethically
when they don't see their action clearly causing harm — for example, when the victim is far away or
the damage is delayed. Unethical choices also occur when an employee feels that peers will not
condemn their actions. Unethical choices are more likely when the organization encourages
individualistic behaviour rather than doing what is best for other employees, customers, and the
community. For example, the performance management system might reward individual bottom-line
achievement, no matter how it is achieved.

6. Describe some the principles and or values that are related to

a. Personal Ethics
b. Professional ethics
c. Business ethics

• Personal Ethics
1. Basic justice, fairness
2. Respect for the right of others
3. Concern for the right of others
4. Concern for the well-being on welfare of others
5. Benevolence, trustworthiness, honesty
6. Compliance with the law

• Business Ethics
1. Fair Competition
2. Global as well as domestic justice
3. social responsibility
4. Concern for environment

• Professional Ethics
1. Integrity, impartiality, objectivity
2. Professional competence
3. Confidentiality
4. Professor behavior
5. avoidance of potential or apparent conflict of interest

7. Explain why ethical behavior is necessary in the practice of one's profession.

Being ethically sound can improve customer and employee interactions. When employees work for a
company they believe in, it is simpler for the employer to keep them on board. Workers prefer to
work for organizations that operate ethically and fairly toward all of their clients and employees.
Workplace ethics are crucial for a variety of reasons. When dealing with a company, people and
consumers feel secure because they know that everyone is abiding by morally upright standards. It
enhances the company's reputation by conducting "clean business" or putting "customers first."