LESSON 4

Business Ethics and Social

Responsibility
CODE OF ETHICS IN BUSINESS
 LEARNING OBJECTIVES
At the end of the lesson, learners are able to:
• define ethics;
• explain why ethics is important in
business;
• classify the given ethical issues; and
• create a good situation from the choices
given.
SAUCER AND SIMS (2013) OFFER
RECOMMENDATIONS FOR DEVELOPING CODE OF
ETHICS IN BUSINESS ORGANIZATIONS:

1. Adopt code of ethics (use the Code of Ethics of

other companies as a reference and modify
according to the needs of the company).

2. Offer training on ethics (for management and

employees).

3. Hire and foster individuals with ethical value.

4. Deal with immoral activities.
Employees must know the implications
and effects of making unethical actions,
and should be ready to accept
consequences.

5. Take constructive measures. For

example, give rewards to employees
who admit their mistakes.
7. Cover all whistleblowers. These people detect illegal activities
within organizations and disclose the actions to the authority or
managers.

A whistleblower who works sincerely, correctly reporting an issue,

should be praised for his/her courage and integrity, as opposed to
being disciplined and ostracized. If an individual blasts the whistle,
it is possible that the company itself has failed internally to
motivate and improve fair and ethical
conversations.

8. Empower the defenders of integrity. Support those who work

with honesty
and integrity.
9. Ensure executive commitment. The anonymity
of those who report the problems should be
practiced.

10. Communicate the principles of conduct within

the company and across the industry.

11. Assign an officer who is clearly responsible

for the enforcement of ethical standards. He/she
can be consulted for advice.
12. Establish a procedure for violations of
ethical standards, and fully review any
offenses reported.
13. Ensure high perseverance by the
company's board of trustees.

14. Lead by example, above everything

else.
Code of Ethics contains the following:
1. Vision means something that you imagine; a picture that you see in
your
mind (Merriam-Webster Dictionary). The vision statement helps to
ensure
the alignment of the decisions to the company goals.
Example: To make innovations that everyone could access and adapt
depending on their needs
2. Values (value means something thought of as important or useful)
Values in business help to ensure that all of the employees work
towards
the company goals.
Example: We commit ourselves to serve our customers with quality
service and utmost respect.
Code of Ethics contains the following:
1. Vision means something that you imagine; a picture that you see in
your mind (Merriam-Webster Dictionary). The vision statement
helps to ensure the alignment of the decisions to the company
goals.

Example: To make innovations that everyone could access and

adapt depending on their needs.

2. Values (value means something thought of as important or useful)

Values in business help to ensure that all of the employees work
towards the company goals.

Example: We commit ourselves to serve our customers with

quality service and utmost respect.
3. Mission- a specific task with which a person or a group is charged
(Merriam-Webster Dictionary). The mission statement clearly and
effectively guides the business or the organization in its decision-
making.

Example: To inspire all the young athletes of the country… tell

them to
dream and go for it!

4. Principles- moral rules or beliefs that help you know what is right
and wrong and that influence your actions (Merriam-Webster
Dictionary).

Examples:
Customers have to be respected.
Make sure to deliver quality product.
THANK YOU