CODE OF ETHICS IN BUSINESS

Business and Ethics are always interrelated. Ethics guides us that we are
doing the right thing. In the conduct of our business, we need to follow ethical
standards of the company.

But first, let us define what is Ethics?

Ethics is derived from the Greek word “ethikos” which means “having to do
with character. The Latin word for ethos is “mos” (or “mores”). That is why we
known Ethics as the Moral Science or Moral Philosophy. It refers to the theory
of morality of right conduct. issues, difficult decisions that will often need to be
made, and provide a clear account of what behavior is considered “ethical” or
“correct” or “right” in the circumstances.

o CODE OF ETHICS is not written solely for the purpose of doing ethical
business practice. It can also be applied and practiced in school, government,
and even professional groups. There is code of ethics for teachers, accountants,
engineers, lawyers, doctors, nurses, and all other professionals to ensure that
they are following the same ethical standards in their professional practice.

Definitions of Business Ethics

1. Business Ethics is the study of what is right and wrong on human
behavior and conduct in business.
2. Business Ethics is the study of perceptions of people about morality, moral
norms, moral rules, and ethical principles as they apply to peoples and
institutions in business.
3. Business Ethics is the study, evaluation, analysis and questioning of ethical
standards, policies, moral norms, and ethical theories that managers and
decision makers use in resolving moral issues and ethical dilemmas affecting
business.

But how can business be considered as an ethical organization?

Previously, you learned about the core principles of good governance in
business namely accountability, fairness, transparency, and stewardship

Ethical organizations are based on these core principles. A business with

good practice of accountability makes sure that all the financial obligations
from its debtors are paid on time. Accountability of a company can also be
shown in proper planning, hiring, and keeping employees, and budget
management and reporting. An ethical organization also based on the
principles of fairness.

Employees who feel secured, because there is no impartiality, often stays with
the company organization build. Meanwhile, transparency and stewardship
also are known characteristics of good governance in an organization.
Transparency in business builds the trust of the employees to the company,
and the stakeholders such as the suppliers, investors, and of course the
customers. Whereas stewardship is an ethical practice of managing the
resources of the company well.

To ensure that all those principles are practiced by all employees in the
organization, Code of Ethics, or Code of Conduct are crafted to be the guiding
light of the business in ensuring good ethical practice. What is Code of Ethics?

ETHICAL CODE OR CODE OF ETHICS are principles adopted by an

organization to assist those in the organization called upon to decide; it is
about understanding the difference between “right” and “wrong” and to apply
this understanding to their decision. In addition, Code of ethics is a written set
of guidelines issued by an organization to its workers and management to help
them conduct their actions in accordance with its primary values and ethical
standards.

o CODE OF CONDUCT: it is a document designed to influence the behavior

of employees. They set out the procedures to be used in specific ethical
situations and delineate whether a violation of the code of ethics occurred
and, if so, remedies should be imposed.

o CODE OF PRACTICE: it is adopted by a profession or by a governmental

or non-governmental organization to regulate that profession. It may be styled
as a code of professional responsibility, which will discuss difficult issues,
difficult decisions that will often need to be made, and provide a clear account
of what behavior is considered “ethical” or “correct” or “right” in the
circumstances.

o CODE OF ETHICS is not written solely for the purpose of doing

ethical business practice. It can also be applied and practiced in school,
government, and even professional groups. There is code of ethics for teachers,
accountants, engineers, lawyers, doctors, nurses, and all other professionals to
ensure that they are following the same ethical standards in their professional
practice.

ACTIVITIES:
No. 1 : Individual Activity 3 (PETA4)- due for submission today – February
16, 2024

CASE STUDY: Sarah-Matteo Wedding

Sarah Geronimo and Matteo Guidicelli have a “secret marriage,” as the media described it,
last Feb. 20 at the Victory Christian Fellowship Church, followed by a “secret” post-
marriage dinner with Matteo’s family and very close friends (including Swatch Lady Virgie
Ramos who reportedly reserved the venue) at the Ministry of Crab restaurant in Shangri-La
at the Fort, BGC.

However, Atty. Romy Macalintal asserts that there is no such thing as ‘secret marriage’
because a marriage cannot be celebrated without at least two witnesses and the person
authorized to solemnize it. Hence, the Sarah-Matteo marriage cannot be secret because of
the presence of those witnesses aside from some friends or relatives who might have been
invited to attend the ceremony. He added that it might be “secret” to the parents of the
bride (Divine and Delfin) but not to the entire world. It is a common knowledge that Sarah’s
parents are against Matteo (and all the other actors linked to her before).

Was Sarah’s decision to marry Matteo, morally right? Did she disobey her parents? In
Ephesians 6: 1-3 it says, “Children, obey your parents in the Lord, for this is right. Honor
your father and mother, which is the first commandment with promise: that it may be well
with you and you may live long on earth.”

Question: If you were Sarah, whom do you follow? Your heart or the law of God? Expound
your answer.
Group Activity No. 2 (PETA 5) – due date of Submission February 23, 2024