CHAPTER 3

ETHICS AND
SOCIAL
RESPONSIBILITY
REPORTER: TRAJANO, Estela L
 DEFINITION OF ETHICS
 WHAT IS SOCIAL RESPONSIBILITY?
WHAT IS BUSINESS ETHICS?

Ethics refers to the study of morals and moral

choices of human beings. The subjects covered by
ethics include the behavior of individuals and
groups, which are governed by standards, rules,
and codes of conduct. The moral principle
defining right and wrong behavior of
businesspersons and their agents are called
“BUSINESS ETHICS.”
AREAS OF CONCERN FOR BUSINESS ETHICS
Business ethics covers all areas encompassed by business transactions. The ethical
conduct of businesspersons may be measured against how the following are adhered to:
1. Laws and regulations promulgated by the government; and
2. Specific ethical required but not yet passed into law.

The following are concerns relating to laws and regulations requiring ethical behavior:
3. Product safety and quality;
4. Fair employment practices;
5. Fair marketing and selling practices;
6. The use of confidential information for personal gain;
7. Community involvement;
8. Bribery; and
9. Illegal payments to foreign governments to obtain business.
CURRENT ISSUES IN ETHICS
1. Owners of food stalls serving spoiled food to customers;
2. Business owners making fictitious insurance claims;
3. Schools awarding diplomas to undeserving persons;
4. A contributor bribing a government officials to manipulate the
bidding of contracts;
5. A drug manufacturer making false claims regarding the
efficacy of his product; and
6. A television station copying format of a rival station’s show
COVERAGE OF COMPANY SPONSORED ETHICS PROGRAM
1. Drug and alcohol abuse;
2. Employee theft;
3. Conflicts of interest;
4. Quality control;
5. Misuse of proprietary information;
6. Abuse of expense accounts;
7. Plant closing and layoffs;
8. Misuse of company assets;
9. Environmental pollution;
10. Methods of gathering competitor’s information;
11. Inaccuracy of books and records;
12. Receiving excessive gifts and entertainment; and
13. False or misleading advertising.
THE IMPROVEMENT OF ETHICAL
PERFORMANCE
1.Ethics Training
2.Ethical Advocates
3.Ethical Codes
4.Whistle-Blowing