Republic of the Philippines

Department of Education- Region X

Division of Valencia City
CENTRAL BUKIDNON INSTITUTE, INC.
S.Y. 2021-2022

Business Ethics and Social

Responsibilities 12
Learning Module- 4
Prelim

_________________________
Learner’s Name

_________________________
Parent’s Name & Signature

Teacher:
James Enoveno
Cellphone Number: 09552747135
Email: tiagosan1986@gmail.com
Facebook: AL Munir
 Week 4: The Nature of Ethics and Business
Ethics
Memory Text: "Whoever oppresses the poor to increase his own wealth, or gives to the rich, will only come to
poverty.”
Proverbs 22:16:

Enabling Outcomes: (MELC)

Based on the curriculum guide (CG), the student should be able to:
 Explain ethics as a branch of philosophy and a distinct of discipline
 Differentiate ethics from the concepts of etiquette, law and professional codes
 Explain business ethics as a type of applied ethics
 Dicuss the importance of studying business ethics

Concepts (Generalization)
Nature of Ethics

Nature of Ethics refers to the normative standards of behaviour pertaining to the ideal code of conduct of human
beings. This is substantially different from that of our feeling.
The ethical choices get affected significantly by our feelings. Highly developed habits of some people make
them feel guilty after doing something wrong while others might seem unperturbed by any form of wrongdoing.
The nature of ethics also cannot be associated with the influence of religion. Ethics is like a common rule which
is applicable to everybody irrespective of his/her religion. Most religions advocate a high level of ethical
standards.

Business Ethics
Business ethics is the study of how a business should act in the face of ethical dilemmas and controversial
situations. This can include a number of different situations, including how a business is governed, how stocks
are traded, a business' role in social issues, and more.
Business ethics is a broad field because there are so many different topics that fall under its umbrella. It can be
studied from a variety of different angles, whether it's philosophically, scientifically, or legally. However, the
law plays the biggest role in influencing business ethics by far.
Many businesses leverage business ethics not only to remain clean from a legal perspective, but also to boost
their public image. It instills and ensures trust between consumers and the businesses that serve them.
3 Reasons Why Business Ethics Is Important

1. Business ethics is an essential skill.

Almost every company now has a business ethics program. In part, that’s because technology and digital
communication have made it easier to identify and publicize ethical missteps. To avoid the negative
implications, companies are devoting more resources to business ethics. In one survey of accountants, for
example, 55 percent said they believe the importance of business ethics will continue to grow in the next three
years. In addition to establishing formal programs, companies are creating ethical workplaces by hiring the right
talent. “High integrity and honesty” is the second-most important skill for business leaders, according to a
recent survey. Today’s business professionals must understand the link between business ethics and business
success.
2. Business ethics drives employee behavior.
According to the 2018 Global Business Ethics survey, employees are more likely to apply ethical reasoning
when their company clearly demonstrates why business ethics is important. Ninety-nine percent of U.S.
employees who experience a strong ethics culture said they’re prepared to handle ethical issues. Companies that
advocate for business ethics motivate their employees to perform their roles with integrity.
3. Business ethics benefits the bottom line.
Another reason why business ethics is important is that it can improve profitability. Honorees on this year’s list
of the World’s Most Ethical Companies outperformed the Large Cap Index by 10.5 percent over three years. A
well-implemented ethics program can also reduce losses. Twenty-two percent of cases examined in the 2018
Global Study on Occupational Fraud and Abuse cost the victim organization $1 million or more. Companies
that practice questionable ethics may also experience a decrease in stock price and severed business
partnerships, which can affect profitability. In addition, business ethics is linked to customer loyalty.

Ethics and Law

It’s easy to think that business law and business ethics are interchangeable. They are not. In a best-case
scenario, they should shadow and complement each other, but that is not often the case. Business often takes
actions that are legal, but not ethical. Understanding what business law and business ethics are will help the
differences to become clearer.

 Law

Business Law Sets Out Rules for Commercial Activity

Business law, or commercial law, is the body of law that relates to trade and commerce, banking and
investments, contracts, marketing and advertising, incorporation and corporate structure, and finance and
collections.

Business Law Determines Standards of Behavior

Business law determines the minimum standards of behavior expected of companies and sole proprietorships.
Enforcement of these laws on a corporate scale generally consists of fines charged to the corporation.
Individual accountability for corporate crime has to be proven to have taken place by the responsible party.

For example, a company may have sold a product it knew was defective, choosing to sell it anyway. Unless
you can prove in a court of law through evidence that the president of the company in particular knew about
the defect and ordered the product to be sold, you can sue the company, but you cannot press criminal charges
against the corporation. Since a corporation cannot do jail time, all there is left to use to penalize the
corporation are fines or court judgments.

 Ethics

Business Ethics Are Values to Be Upheld

Business ethics go beyond simple legality. They describe the way a business should behave – how a business
does what it is legally obligated to do. Ethics are not as much a specific code of conduct as they are values to
be upheld and practiced.
They are the spirit of the law, as opposed to the letter of the law. This is designed to create an environment of
personal accountability within the business, where there is none under the law.

Function of Business Ethics

Business ethics also shape the perspective that the public uses to view a business. Values like honesty,
integrity, confidentiality, respect – those are values that are a part of business ethics. While the law may not
require you to tell the complete truth in a business situation, such as when a manufacturer uses “puffery” to
describe an object, being honest about the product will gain a business a reputation for being ethical. People
want to do work with or make purchases from businesses they believe to be ethical.

Legalizing Business Ethics

Due to some of the Wall Street scandals of the early 2000’s, laws like Sarbanes-Oxley Act of 2002 were put
in place to bring some ethical accountability for corporate financial behavior. This has made legislators more
comfortable with the idea of telling businesses how they should act, instead of merely telling them how they
can’t act. The field of business ethics has blossomed due to the creation of consulting firms that help
businesses to develop ethical policies and to monitor compliance with regulatory standards. Business law has
begun to merge with business ethics.

Be Active (Exercises/Activities)

What Ethical issue is conveyed in this picture?

What feelings and thoughts came to your mind when you saw the picture?
 Ignite (Evaluation)
1. Identify a story that has a connection with business ethics issue.

2. Give your insights regarding this case.

 IFL (Integration of Faith & Learning)
“Honesty is a key characteristic of a business because it sets the tone for the kind of work culture that you
want to create, provides consistency in workplace behavior, and builds loyalty and trust in customers and
prospects.”

Reference/s

https://www.google.com/search?
q=The+Objective+purpose+of+Business&hl=fil&sxsrf=ALeKk016vuWjK0RgM_VqJW4ph0hLmNOCow:160
7493665883&source=lnms&tbm=isch&sa=X&ved=2ahUKEwixv7vHnMDtAhXLBKYKHdS2BpYQ_AUoAX
oECBAQAw&biw=1360&bih=657