ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,

RISK MANAGEMENT AND INTERNAL CONTROL

Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

Lesson title: Introduction to Ethics Materials: Textbook: Corporate

Lesson Objectives: Governance, Business Ethics, Risk
At the end of this module, I should be able to: Management and Internal Control
1. Understand the basic concept of Ethics. 2019-2020 edition
2. Examine the importance of Business Ethics and how it References:
makes corporate governance more meaningful. https://www.goodvision.co.il/en/ethi
cs-and-corporate-governance
1. https://www.iaa.govt.nz/for-
advisers/adviser-tools/ethics-toolkit
http://rulebook.accaglobal.com
https://www.indeed.com/career-
advice/career-
development/professional-code-of-
ethics
https://www.oreilly.com/library/view
/business-ethics

Productivity Tip: Connect. Share your learnings and strategies to your family and friends. That will keep
you motivated for today.

A. LESSON PREVIEW/REVIEW
1) Introduction (5 mins)

This module introduces the concepts of ethics- its characteristic and gives you understanding as to why
people behave unethically. It also briefly discusses about the professional ethics, its necessity and how
ethics is set for professionals through general and specific standards.

Quick Review
Provide the Principle No. to the following:
_______________ 1. Establishing Board Committees.
_______________ 2. Strengthening Board Ethics
_______________ 3. Assessing Board Performance
_______________ 4. Establishing a competent board.
_______________ 5. Enhancing Company Disclosure Policies and Procedures

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

2) Activity 1: What I Know Chart, part 1 (3 mins)

Try answering the questions below by writing your ideas under the first column What I Know. It’s okay if
you write key words or phrases that you think are related to the questions.
What I Know Questions: What I Learned (Activity 4)
1. Define Ethics

2. Why People chose to act

unethically?

3. Why is Ethics Important?

B.MAIN LESSON
1) Activity 2: Content Notes (13 mins)
LO1: Concepts of Ethics

Key Knowledge

Ethics
 Set of moral principles and values that govern actions and decisions of an individual or a
group.
 Involves systematizing, defending, and recommending concepts of right and wrong
behavior.

Characteristic and Values Associated with Ethical Behavior

While it is true that there’s a difficulty to define what exactly is right, an ethical person is not
afraid to do what they truly believe to be right -even it is unpopular, unprofitable and inconvenient.
Following characteristic associated with ethical behavior.
1. Integrity -doing things even no one is watching.
2. Honesty – being truthful, sincere and transparent.
3. Trustworthiness and Promise Keeping – committed to abide by the spirit as well as the letter
of agreement.

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 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

4. Loyal and Confidentiality – faithful and loyal, safeguard the influence and conflict of interest.
5. Fairness and Openness- willingness to admit error, do not overreach or take advantage of
another’s mistake or diversities.
6. Caring for Others – helping those in need and avoiding harming others.
7. Respect for Others – showing respect to others dignity, privacy and right to self-
determination.
8. Responsible Citizenship -Obey just law. Exercising the right of democracy responsibly.
9. Pursuit of Excellence – performing task to the best of one’s ability and not being content with
mediocrity; “do not win at any cost”.
10. Accountability – accepting responsibility for decisions, its consequences and setting
example of others.

ETHICAL BEHAVIOR -It’s Importance

Regardless of status and occupation, among the reasons to be moral and integral are:

1. Make society better. It is the glue that holds the society together. Imagine living in a society
whose people consistently lied. It would be a miserable place.
2. Treat everyone equally. Equality can be achieved if majority of citizens behave in a moral
manner.
3. Secure Meaningful Employment. Employer will look at the person’s past behavior as
predictor of future behavior.
4. Succeed at Business. Business with checkered moral history are less likely to attract new
customers through word of mouth.
5. Less Stress. Making the right moral decision or taking principled perspective on the issue
reduce stress.

BUT, There are two primary reason why people act unethically:
1. the persons ethical standard are different from those of the society as a whole.
2. the person chose to act selfishly

LO2: Categories of Ethical Principles and Need for Professional Ethics

There are three kinds of ethics namely 1.) Personal Ethics; 2.) Professional Ethics and 3.) Business
Ethics. Below shows the principle associated with each type of ethics.

Types of Ethics Principles

 Basic justice, fairness
 Respect for the right of others
Personal Ethics  Concern for the right of others
 Benevolence, trustworthiness, honesty
 Concern for the well-being on welfare of
others

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

 Compliance with the Law

Professional Ethics
Business Ethics
o Integrity, impartiality, objectivity
o Professional competence
o Confidentiality
o Professional Behavior
o Avoidance of potential or apparent conflict of
interest
 Fair competition
 Global as well as domestic justice
 Social responsibility
 Concern for environment

Personal Ethics – ethics that a person identifies with in respect to people and situations that they deal
with in everyday life. This includes among others, fairness, compliance with the law, respect for the
right of others. Honoring our parents is an example of personal ethics.

Professional Code of Ethics

To understand the professional ethics, one must understand the nature of profession. Profession is
distinguished from other occupations by the fact that:
1. There is a period of time.
2. There is a process of qualification.
3. The profession is bound by rules of professional association.

Hence, professional code ethics is a set of principles designed to help professionals distinguish right
from wrong in order to govern their decision making. Example, “A physician shall provide competent
medical care, with compassion and respect for human dignity and right”.
General Principles of Professional Conduct includes
 ethical commitment
 ethical awareness
 ethical competency

Specific Principles of Professional Conduct

1. Service to others
2. Integrity and Objectivity
3. Professional Competence
4. Solidarity and Teamwork
5. Social and Civic Responsibility

Importance of Professional Ethics

 most Professionals have an information advantage over those they serve (asymmetric information.)

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

 most professionals are young and inexperienced, they need to be taught by time tested wisdom.
 somewhat effective countervailing power to organizational influence or power of authority.
 may place role in enforcement and disciplinary action with respect to those who violated standards.

2) Activity 3: Skill-building Activities (18 mins + 2 mins checking)

Think and learn
a. Is it worth upholding ethical behavior even no one cares? Give your thoughts.

b. Discuss the basic purpose of a code of ethics for a profession.

c. Determine what type of ethics best describes the following:

1. A Project Manager who quit a project after realizing they are not able to complete the project
because their work visa is about to expire. Answer___________________
2. A person who found Php500 on the ground and since he doesn’t know who they belong to, he goes
around the corner and look for somebody who needs them. Answer: __________
3. A professor needing funding for his medical research on the causes and cures for a disease
accepted a large, multi-year grant from a pharmaceutical company with the condition that he will submit
preliminary draft of the report to the pharmaceutical company for review and feedback. Answer:
_______________

3) Activity 4: What I Know Chart, part 2 (2 mins)

For this part, review the questions in the What I Know Chart from Activity 1 and write your answers to

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

the questions based on what you now know in the third column of the chart.

4) Activity 5: Check for Understanding (5 mins)

SOLVING CASE STUDY
Read the case study below, then write your answer on the following question:
Case Study:

After discovering that one of her students tweeted foul language about her, a school
teacher confronted the teenager during a lesson on social media etiquette. Inquiring why
the student would post such hurtful messages that could harm the teacher’s reputation,
the student replied that she was upset at the time. The teacher responded that she was
very upset by the student’s actions. The teacher demanded a public apology in front of
the class, and the student apologized. The teacher later stated that she would not allow
young brats to call her those names.

Questions:
1. Was the student behavior wrong, if yes why?
2. List down the teacher’s goal in this situation.
3. How should the teacher have addressed such misbehavior?
4. Do you agree with teacher’s approach of resolving the issue, or do you recommend
different approach?
5. Should teachers have standard that they should follow, or should they be allowed to
exercise their discretion?

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
Congratulations for finishing this module! Shade the number of the module that you finished.

Did you have challenges learning the concepts in this module? If none, which parts of the module helped you
learn the concepts?
________________________________________________________________________________________
________________________________________________________________________________________

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

Some question/s I want to ask my teacher about this module is/are:

________________________________________________________________________________________
________________________________________________________________________________________

FAQs
Did you know
1. Why was the code of ethics created?
 To lay out rules for behavior and provides groundwork for preemptive warning.

2. What is the difference between profession and professional ethics?

 Profession relates to career choice usually one that requires extensive training while professional ethics
are set of standards of behavior expected within a certain profession.

3. Is legal standards same with ethical standards?

 No. Legal standards are based strictly on what is written in law while ethical standards are based on
human principles of right and wrong.

KEY TO CORRECTIONS

Introduction:
Quick Review
Principle 3 1. Establishing Board Committees.
Principle 7 2. Strengthening Board Ethics
Principle 6 3. Assessing Board Performance
Principle 1 4. Establishing a competent board.
Principle 8 5. Enhancing Company Disclosure Policies and Procedures

Activity 3:
a. Is it worth upholding ethical behavior even no one cares?
Yes, the advantage outweighs negative consequences. Ethical behavior long-term benefits can
not be compared.

b. All recognized profession should uphold integrity to maintain public positive view of the entire
profession.

c. Determine what type of ethics best describes the following:

This document is the property of PHINMA EDUCATION

 ACC112: CORPORATE GOVERNANCE, BUSINESS ETHICS,
RISK MANAGEMENT AND INTERNAL CONTROL
Student Activity Sheet Module #6

Name: _____________________________________________________________ Class number: _______

Section: ____________ Schedule:_______________________________________ Date: _______________

1. A Project Manager who quit a project after realizing they are not able to complete the project because
their work visa is about to expire. Answer: Business Ethics
2. A person who found Php500 on the ground and since he doesn’t know who they belong to, he goes
around the corner and look for somebody who needs them. Answer: Personal Ethics
3. A professor needing funding for his medical research on the causes and cures for a disease accepted a
large, multi-year grant from a pharmaceutical company with the condition that he will submit preliminary
draft of the report to the pharmaceutical company for review and feedback. Answer: Professional Ethics

This document is the property of PHINMA EDUCATION