Ethics- A set of moral principles and values that we use to answer questions of right and wrong

The study of the general nature of morals and of the moral choices made by individuals in their
relationships with others.

“ETHICAL RELATIVISM”

When we think of ethics in pragmatic terms:

Our choices are based on what seems reasonable or logical to us according to our personal value
system.

Casts ethics in the role of being relative to what the situation is or how we feel about it.

The very concept of ethics suggests that there is real distinction between good and bad, and that it is
our obligation to do our best to distinguish between these and then try to do what is right.

BUSINESS ETHICS

 Also known as “CORPORATE ETHICS”;

 Is a form of applied ethics or professional ethics that examines ethical principles and moral or
ethical problems that arise in a business environment;

 Refers to contemporary standards or sets of values that govern the actions and behavior of an
individual in the business organization.

 Has NORMATIVE (based on norms) and DESCRIPTIVE (grounded in matters of observation of

experience) dimensions.

 Examples:

 As a corporate practice and career specialization, the field is primarily NORMATIVE.

 Academics attempting to understand business behavior employ DESCRIPTIVE methods.

SOCIAL RESPONSIBILITY

 Like ETHICS, means distinguishing right from wrong and doing right thing;

 An ethical framework which suggests that an entity, be it an organization or individual, has an

obligation to act for the benefit of society at large;

 Is a duty every individual has to perform so as to maintain a balance between the economy and
ecosystems.

CORPORATE SOCIAL RESPONSIBILITY - Management’s obligations to make choices and take actions that
will contribute to the welfare and interests of society as well as the organization.

SOCIAL CONTRACT - A set of generally accepted relationships, obligations, and duties between the
major institutions and the people.

“IT IS GOOD BUSINESS TO BE A GOOD CITIZEN”

Business Organizations as Partners for Socioeconomic Development
Businesses aim to meet the demand for goods and services while they make a profit.

The Purpose of Business

Businesses -private, profit-oriented entities

differ in size, structure, and types of activities

Purpose - to provide the needs of society

to contribute to the common good

Profit or Social Good?

“The purpose of business is to provide goods and services, the motivating force is the reward of
profit for individuals.”

- Ronald Duska

- primary: to provide socioeconomic development

- secondary: to gain profit

- Paul Camenisch

Contribution to Socioeconomic Development

Businesses

- major drivers of socioeconomic development.

- Their success depending on socioeconomic factors.
- can positively or negatively impact the people’s quality of life
- need people as their workforce, consumers, distributors, and retailers

Creating Job Opportunities

- workforce: an important element in businesses

- employment: With a stable source of income, people can spend on services and products .

- Businesses can generate jobs directly.

- Their activities can revitalize other sectors of the economy.

- 7.2 million Filipinos were employed by the formal business sector in 2018.

Providing Opportunities for Career Advancement

● People can move up in the organization by developing new skills and gaining relevant work
experience.

● higher skills = higher wages

 ● People earning a good wage can improve their standard of living.

● Employees can get inspired to become entrepreneurs.

● Their innovative ideas can provide solutions to local concerns.

Distributing Information and Training

● Businesses have an unending drive to improve their products and services.

Businesses gather data on consumers. Why?

- To innovate strategies and technologies
- To create new products and services
- Employees are trained on the latest technology and strategies.

- Training enhance the skills of the community.

Improving the Economy

● Economy is the process or system by which goods and services are produced, sold, and bought
in an area.

● Goals:
- Growth
- high employment rate
- price stability
 Local businesses enhance the circulation of money within an area. Their activities promote
growth and development.

Contributing to Community Development

● Community development: Activities and programs for the well-being of the community can
create opportunities.

● Businesses are usually involved in the social activities of their communities.

- Charities
- volunteer programs
- relief and rehabilitation missions.

 Social activities create a symbiotic relationship between businesses and the community.

Keep in Mind
● Businesses are social institutions that exist to address the needs of society. They provide
opportunities for people to improve their quality of life. The primary purpose of businesses is to
contribute to social and economic development, while gaining personal benefit and profit is
secondary.

● Businesses can build and maintain capital through their operations, the goods and services they
provide, and the programs they support through complex supply chains.
Business Operations and Stewardship
Core Principles in Business Operations
● The purpose of business is to contribute to socio-economic development.

● They must abide by the core principles in business operations to ensure this.

Fairness - expression of neutrality

- impartial and unbiased actions and decisions

- avoiding favoritism and discrimination
- conducting competitive bidding
- complying with government regulations
JUSTICE

● Means giving each person what he or she deserves or, in more traditional terms, giving each
person his or her due.

● While JUSTICE usually has been used with reference to a standard of rightness, FAIRNESS often
has been used with regard to an ability to judge without reference to one’s feelings or interest.

Equality - each individual or group of people is given the same resources or opportunities.

Equity - recognizes that each person has different circumstances and allocates the exact resources and
opportunities needed to reach an equal outcome.

A. Principles of Justice
● “Equals should be treated equally and unequal unequally.”

-Aristotle

● “Individuals should be treated the same, unless they differ in ways that are relevant to the
situation in which they are involved.”

-Velasquez, et.al. 2014

B. Different Kinds of Justice

1. DISTRIBUTIVE JUSTICE – refers to the extent to which society’s institutions ensure that benefits
and burdens are distributed among society’s members in ways that are fair and just.

2. RETRIBUTIVE / CORRECTIVE JUSTICE – refers to the extent to which punishments are fair and
just.

NOTE: Punishments are held to be just to the extent that they take into account relevant criteria
such as seriousness of the crime and the intent of the criminal, and discount irrelevant criteria
such as race.
 3. COMPENSATORY JUSTICE – refers to the extent to which people are fairly compensated for
their injuries by those who have injured them; just compensation is proportional to the loss
inflicted on a person.
NOTE: The foundations of justice can be traced to the notions of social stability,
interdependence, and equal dignity.

VIEWS ON JUSTICE
JOHN RAWL (Ethicist)

- the stability of the society – or any group, for that matter – depends upon the extent to which
the members of that society feel that they are being treated justly.

- the members of a community depend on each other, and they will retain their social unity only
to the extent that their institutions are just.

IMMANUEL KANT (Philosopher)

- human beings are all equal in this respect; they all have the same dignity and in virtue of this
dignity they deserve to be treated as equals.

Justice - is a central part of ethics and should be given due consideration in our moral lives.

Core Principles in Business Operations

Accountability- being accountable to the stakeholders, employees, suppliers, customers, the local
community, and even the particular country(s) that the firms operate in.

- assuming responsibility for the outcome of one’s own action, decision, and performance
- setting expectations, performing tasks, and responding to the outcome

- prevents abuse of power, mischief, fraud, corruption, etc.

Transparency

- honesty and openness

- dissemination of relevant information needed to make informed decisions
- differs from confidentiality, which prohibits the sharing of personal and sensitive information
without the consent of those involved

Stewardship

- conduct, supervision, and management of resources that belongs to another but entrusted to
one’s care
- recognizing people, capital, and environment as resources that needs protection and
development
- results in sustainability
- abundant and healthy resources to grow the business
- does not harm the world around them

Business Operations and Stewardship - considers the impact of operations on the community and
society
 ● Businesses play a significant role in the development of the economy and society. This ideal
should reflect in their overall goals and objectives, as well as their operations and internal
decisions.

● To ensure that businesses advance the interest of the whole society, they must abide by the core
principles of business operations: fairness, accountability, and transparency.

● Fairness entails neutrality, impartiality, and free from influence. Accountability requires that
every leader and unit is answerable and liable to their actions and the outcome of their
performance. Transparency means honesty and openness, showing all relevant information and
data that affects stakeholders’ decision-making.

● The core principles of business operations are essential in stewardship. Stewardship is the
recognition of the business’s role in developing its resources to achieve stability. Business
stewards take responsibility for the people, profit, and planet.

Common Practices in Business Organizations

Business organizations have different practices influenced by their culture, vision, mission, and others.

Common Practices Guided by Ethics

Acceptable business behavior may be determined by: ● customers ● the government ● society’s
moral principles and values

Social movements also strongly influence the changing ethical standards in society.

Decorum- also known as business etiquette

- a set of behaviors and manners considered appropriate and respectful

punctuality, bowing one’s head in Japanese culture

1. ON TIME AND PROMPTNESS

Constantly be PUNCTUAL on a DAILY basis.

● Be prompt when meeting with others.

● Arrive at the location of the business meeting at least 15 minutes early.

● Call ahead to confirm business appointment.

A professional who is regularly late for appointments gives the impression that she does not respect the
value of other people’s time.

2. ON PREPARATION
● Be prepared to conduct the business at hand.

● Must have all resources such as reports, sales brochures, and other documents ready for use.

● Must have all questions for the candidate prepared (HR Recruiting)
● Come to the meeting with all the materials and data you will need and an understanding of the
meeting topic.

3. ON AGENDA
CHAIRPERSON: should circulate a meeting agenda to each participant at least one week in advance.

PARTICIPANTS: should call the chairperson to express any concerns about the agenda at least 48 hours
prior to the meeting.

● The agenda should also mention the meeting’s start and ending times.

● Mend fences, leave with a smile and hearty farewell, and return to do battle another day.

4. ON ATTIRE AND APPEARANCE

● Dress appropriately.

○ FORMAL BUSINESS ATTIRE: with jacket and tie.

○ When meeting with Fil-Chi businessmen, long sleeve and tie are acceptable.

● It is best to err on the conservative side.

● Do not be afraid to ask what the dress code will be (work-related social events).

● Practice good grooming.

● CHAIRPERSON: indicate what kind of attire is required for the meeting

Dressing well is a vital part of earning respect.

5. ON DECORUM
● UNPROFFESIONALISM

- Excessive use of slang, profanity, and other offensive language.

- Spreading of gossip and communication of private or confidential information.

● Avoid nervous habits such as tapping a pen on the table, making audible noises with your mouth,
rustling papers, or tapping your feet on the floor.

6. ON BASIC COURTESY AND RESPECT

● Consider the feelings of others and address conflicts in a straightforward and impersonal manner.

○ DISRESPECTFUL: raising your voice, using bad language, and interrupting others and discourteous.

● Show respect not only to your superiors but also to your peers and subordinates

● Refrain from gossip and from being critical and negative to or about others.

7. ON GREETINGS
● STANDARD GREETING: exchange of handshakes and a smile.

● FORMAL SITUATIONS: the oldest or the most important person is greeted first.

● WOMEN who know each other well may EMBRACE or give each other a kiss.

● Prepare to be asked a lot of personal questions.

8. ON HANDSHAKES
● RULES: a pat on the side of the arm as gesture of hospitality or friendship.

● When meeting a SENIOR EXECUTIVE, let him/her offer the handshake first.

9. ON BODY LANGUAGE
NO – lifting the eyebrows without smiling.

YES – lifting the eyebrows while smiling.

NO – pointing by pursing the lips; pointing your finger

. ● AVOID “too-direct” eye contact

○ Direct or continuous eye contact as staring is considered rather rude and confrontational.

10. ON FORMAL AND INFORMAL ADDRESS

● Start by addressing a new business acquaintance by his family name.

○ MR – for men

○ MRS – for married women

○ MS – use sparingly until preference is clear.

● Use formal titles (as Filipinos are status conscious)

○ Example: DR. Aquino, ATTY. Rodriguez

● Avoid using someone’s first name until they’ve known you for a while.

● On MULTIPLE NAMES: always ask what they preferred to be called.

11. ON SPEAKING IN MEETINGS

● Speak only when you have the floor.

● Ask questions during the designated question period, and raise your hand to be recognized by the
chairperson.

● Do not interrupt someone while they are speaking or asking a question.

● NO: A raised voiced, the wrong intonation, the implication of incompetence, or excessive direct eye
contact.
● PASSIVE RESISTANCE: not returning phone calls, missing deadlines, misinterpreting instructions, failure
to follow through.

12. ON LISTENING
Listen attentively to the meeting and take notes.

13. ON CELLPHONES AND LAPTOPS

● Turn off your cell phone prior to the start of the meeting.

● If you are expecting an urgent call, set your phone to vibrate and excuse yourself from the meeting.

● Unless laptops have been approved for the meeting, turn it off and lower the screen so that you don’t
obstruct anyone’s view.

14. ON BUSINESS OR VISITING CARDS

● Present business or visiting card with both hands.

● Never slip the visiting card into your pocket, or your wallet; put it with the papers you are using during
negotiations.

15. ON BREAKS
● Meetings should have a break every two (2) hours.

● Breaks should be twenty (20) minutes long.

● Meals should be thirty (30) minutes long.

16. ON APPROPRIATE COMMUNICATION

●Always return phone calls and email.

●When taking/receiving a call, always indentify yourself and your department, and speak in a polite and
considerate manner.

●Personalize the conversation; avoid rushing straight to the business.

●When sending an email, use a specific subject and keep the message business- like and not overly
personal or casual.

● Use the same greetings and salutations used in a standard correspondence.

○ “Dear”, “Sincerely”, “Please”, “Thank you”

● Never type email in all capital letters.

● OFFENSIVE: telling crude jokes and sending profanity-laced correspondence.

● CREATING A HOSTILE ENVIRONMENT: a reciter of inappropriate stories

17 . ON BARGAINING
Do not get angry and avoid shouting or imposing unreasonable deadlines for decision-making.

18. ON BRINGING GUESTS

●Do not bring unannounced guests to a meeting.

●If you have someone you would like to bring in a meeting, then contact the chairperson for permission
to bring your guest.

○ If permission is denied, then do not bring your guest.

19. ON BUILDING RELATIONSHIPS

● Take time to visit and talk with them.

○ Not only your immediate colleagues, but also the people who work under you, such as secretaries and
janitorial staff.

● Make time to actually talk to people; do not rush off immediately after exchanging greetings.

● Create a database of your colleagues and contacts, with their birthdays.

● Send a card or word of congratulations when an important event occurs in their lives.

20. ON BUSINESS MEALS AND RECREATION

Entertainment in the business world takes place in restaurants, bars, and hotel lounge bars, at home and
sometimes in night-clubs. Karaoke is popular and if you are invited to a karaoke bar, you must expect to
be invited to sing.

In general, in restaurants, the person who issues the invitation is the one who PAYS.

21. ON GIFT-GIVING
●If you are given a small gift, accept it amiably, but do not open it in front of other guests or only do so
after you have left.

● Wrap gifts elegantly as the presentation is important. NO color restrictions for wrapping paper.

●If you are invited to a home for dinner, bring sweets or flowers for the hosts.

Common Practices Guided by Ethics

Protocols- A collection of both social and formal norms adopted by the company which govern the
actions of employees.

Relationship between employee and supervisor, Customer service and health protocols

Policies

● standards that guide the company on its conduct, legal responsibilities, accountability, and employee
relations

● in accordance with state laws

policy on equal opportunity and access, policy against sexual harassment

Marketing Ethics

● promotion of products bound by moral constraints and values

● honesty and transparency

non -promotion of social injustices, truthful advertisements

Accounting

● ethical and legal obligation in the identification, recording, and reporting of financial data

accuracy of financial data, complying with law, regulations, and standards