Business Ethics and

Social Responsibility
The Role of Business in Social and Economic Development
The Business Organization
What is a Business Organization

- An entity that aims to earn profit by providing products and services to satisfy the needs of the market
- seen as profit generators
- an important component of the modern society
- plays an important role in advancing socio-economic development

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Forms of a Business Organization

- By : Ownership:

- Sole Proprietorship *
- Partnership **
- Corporation ***

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 Advantages and Disadvantages of Different Forms
of a Business Organization
Sole Proprietorship - simplest form/ easy to register (DTI -BTRCP/)
- life
Partnership - needs registration with SEC - two or more persons
- general / limited
- life
Corporation - SEC registration requires more people as stakeholders
- limited obligations
- life

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 Business Organization are part of an economic
System
1 - Capitalism 1 - Individuals own and operate the majority of business

2 - Communism 2 - Owned and operated by the government

3 . Socialism 3 - mostly owned and operated by the government/ smaller ones by individuals
 Free enterprise System

RIGHTS :
INDIVIDUALS AND - Own a private property
BUSINESSES ARE GIVEN - Own a business and keep all profits
RIGHTS IN ORDER TO - Freedom of competition
MOTIVATE THEM TO - Freedom of choice
SUCCEED
READ AND ANSWER

1.What specific rights in the free enterprise systems was violated by Star bean
2.What specific rights (s) in the free enterprise system best explains the success
story of CreativiTEA? Explain your answer.

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BIG IDEAS

1 - PRODUCTS can be tangible (goods) or intangible (services)

2 - In a free enterprise system, individuals and businesses are given rights in order to motivate them to succeed.
3 - Share Value is a business concept that focuses on measurable business value by identifying and addressing social
problems that cross paths with the business
4 - Ethics in a business context, is about ethical decision-making that is, decisions must be based on promoting greater
good and doing what is morally right.

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“Business is a combination of war and sport .”

- Andre Maurois
 MID TERM PERFORMANCE TASK - Individual
work .
1. Set up your own business organization; you decide the nature of the business
2. Make your company’s Mission/Vision Statement
3. Values of the organization
4. Make your company’s Code of Conduct/code of Ethics
5. How would your company perform its own Ethical Leadership
6. Define how your company will uphold the Role of Business Organization. -SPECIFICALLY ON
PROMOTING SUSTAINABILITY

OUTPUT: 1 - Ppt or google Slides : 2 - Individual effort ; forming part of MIDTERM EXAMS
 Thanks!
DON CARLO CAVINA SCHOOL
Business Ethics and Social Responsibility
Las Pinas City

Speaker Notes resource:

DIWA Senior High School Series Business
Ethics and Social Responsibility Module
Authored by: Jonalyn C. Baquillas

From: DIWA LEARNING SYSTEMS

 The Role of Business Organization in the Society

Primary Objectives:
- Develop, produce, distribute
Among the roles are:
- Create employment opportunities
- Advancing the economy
- Promote sustainability
- Investing on innovation and excellence

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 The Role of Business Organization in the Society

- Providing good and services

- Pharma companies developing medicines
- Create employment opportunities
- Hiring people to help the business attend to rising demands on products and services
- Advancing the economy
- Examples are the rising numbers of BPOs in the country (MSMEs)
- Promote sustainability
- Good management practice
- Adherence to government policies
- Public opinion
- New opportunities
- Investing on innovation and excellence
- Looking for Gap in the market

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 MSMEs - Categories

- BY Asset Size
Enterprise :
- Micro: 3,000.000.00
- Small : 3,000,001 to 15,000,000.00
- Medium: 15,000,001 to 100,000,000.00
MICRO
By Number of Employees
SMALL
1-9
MEDIUM
10-99

100-199
ETHICS and BUSINESS

The time is always right to do what is right. - Martin Luther King

MAKING ETHICAL DECISIONS:

Ethics enables a person to discern right from wrong,
From GREEK word “ethos” which mean character, ETHICS is a branch of philosophy that involves ‘systematizing, defending, and
recommending concepts of right and wrong conduct.

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ETHICS and BUSINESS

Ethical Decisions:
Examples:
- Fair labor practices
- Environmental awareness
- Product /service safety

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ETHICS AND LAW

Accdg to Law: According to company dictated

Mandated Salary Ethics
Mandated Benefits - Mandated Salary / Commissions
- Mandated Benefits
- HMO Benefits
- Rice subsidy
- Retirement scheme
 ETHICS AND LAW

BIG IDEA: Reflect on this:

Corporate Social Responsibility focuses on an organization’s - Should companies only focus
responsibility to take action in upholding the welfare of the
society on what is legal rather than
what is ethical? Why or why
not?
ETHICS AND LAW

Read and answer:

- THIS IS A GRADED QUIZ
GOOGLE FORMS.
The Corporate Culture
Organizational or Corporate Culture is the system of shared actions , values and beliefs that develops within an
organization and guides the behavior of its members. (Schermerhorn, Osborn, Uhl-bien, Hunt 2012)

There are business organizations that expect employees to work for long hours and even on weekends if
needed. There are companies that value work-life balance, so they encourage employees to clock out at a
certain time so they can spend more time with their families or on personal interests. There are companies that
have vibrant culture, where everyone’s creativity is honed and generating new and innovative ideas is greatly
encourage. There are traditional companies , where timekeeping is strictly implemented and given disciplinaries
when tardy on several times. Each and every business organization has its own unique culture.
 The Ethical Corporate Culture
If Ethics are poor at the top, that behavior is copied down through the
organization. Give your thoughts on this.
- Robert Noyce.

Leaders and Managers are responsible for the creation of corporate culture. -
live by example

The environment created by the organization can encourage or discourage

ethical behaviour

ETHICAL business leadership provides this environment to create

circumstances where good people are able to do good deeds and prevent bad
people from doing bad decisions and actions
The Corporate Culture

A company’s culture guides the thinking, behavior and decisions of its members according to the company’s beliefs and values. Accdg to EH. Schein, author of
Organizational Culture and Leadership, the two main reasons why the culture develops in an organization is because of External adaptation and Internal
integration
Functions: External adaptation
- Requires organization culture to determine how the company will reach its goal, accomplish tasks, identify methods to achieve its goals and place measures
to cope with success or failure

- Internal Integration
- Starts with establishment of an identity that is unique to the business organization. Members acquire this identity through interaction with each other.

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Understanding the Corporate Culture

Observable Culture
- Refers to things the ways things are done
Shared Values
-Common values that are meant to put together and motivate members of the organization
Common Cultural Assumptions
-include taken for granted truths that the members share as a result of a collective experience with the
organization.

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 The Corporate Culture - Ethical Leadership and
Management

Recognized types:
Compliance based - focuses on following rules, policies and regulations as the primary responsibility of ethics. Empowers
legal counsel and auditing/accounting firms (traditional approach)
Values based - reinforces a particular set of values rather than a particular set of rules. It is presumed that a company
with values based culture adopts its code of conduct with more regard for ethical values. (integrity based)

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 Ethical Leadership and Management
Myrtle Santos, recently passed the CPA board and applied in an audit firm, and hired under the
supervision of Mr Javier, one of the most brilliant partners. Myrtle was often invited by Mr Javier for
casual lunches, and accepted without malice. Mr Javier, then invited Myrtle for an out of town leisure
trip but since it was not work related she refused. Mr. Javier, then threatened Myrtle that refusing him
would mean not getting her regularization . Myrtle decided to leave the audit firm without speaking the
reason for her departure from the company.

1. Did she do the right thing? Why or why not?

2. What should employees do if they are faced with unethical leader like Mr. Javier

3. Should companies also conduct psychological test for their key leader? Why?
 Compliance Based and Values Based
Compliance Based

Bank Protocols - every entry and exit into the bank’s vault ,. An internal audit cited a flaw in the company’s
policy of dual control. CCTV footages showed that there were two instances in May 2017 that the branch
manager entered the vault alone.

Values Based

Tina Garcia, a known actress of ABGM Network, always goes to her soap series tapings on time, all
the time. She got these values from TV Network because all the employees of ABGM Network gave
a very high regards to punctuality. Although there is no formal log-in process, all employees still
come on time.
BIG IDEAS

Layers of cultural analysis consists of observable culture which are the apparent
daily activities of a company, shared values, which are the attributes a company is
associated with or is known for, and common cultural assumptions, which are
evident as employees become ingrained in the well-established corporate culture
and values.
SETTING A CORPORATE CODE OF CONDUCT

Code of Conduct is a list of guidelines and protocols based on the

organization’s values. It articulates how an employee should behave and
imbibe the values of the organization at all times, and it also serves as a
reference when decision are to made.
SETTING A CORPORATE CODE OF CONDUCT

Code of Conduct is a list of guidelines and protocols based on the

organization’s values. It articulates how an employee should behave and
imbibe the values of the organization at all times, and it also serves as a
reference when decision are to made.
 Guidelines in developing a code of conduct
Guidelines to Developing a code of conduct for an organization:

1. Understand the mission and vision of the organization, this will set the tone for the
required conduct and behavior that the members must know by heart
2. Identify the values that organization lives for
3. Spell out the different behaviors and values that an employee must follow in order to
maintain the ethical values of the organization
4. Ensure proper enforcement of the Code of conduct in order to maintain the ethical
culture of the organization
5. Outsiders, such as suppliers, distributors, sub contractors and customers must also
understand the organization’s code of conduct in order to avoid presenting the
employees with actions that go against the code of conduct.
 Beyond walls 3.6
Bravos bank code of conduct includes the full disclosure of interest computation of loans.
One day, Mr James Del Castillo applied for a salary loan through Ms Jane Santos who is from
Salary Loan Dept. of Bravo Bank. Mr Del Castillo needed the loan immediately to pay off his
house amortization which was overdue for 3 months. Being opportunistic in a negative way, Ms
Santos immediately release the loan to Mr Del Castillo and told him that the interest for the
loan was 4%/mo instead of the actual 3%. Ms Santos intentionally did not provide the loan
computation to Mr Del Castillo and asked to give the payment to her instead of paying to the
bank directly. Mr. Del Castillo agreed because his mind was preoccupied with his financial
concerns.

1. Should Ms Santos be penalized right away or only if Mr. Del Castillo files a complaint?
2. How should companies detect noncompliance with the code of conduct?
SAMPLES OF CODE OF CONDUCT
Baby Food Corporation upholds the distribution of healthy and safe baby products (clothes, bath
and body products and accessories) in the market. This code of conduct is drafted to strengthen
the company’s ideals in serving our customers well and in giving only the best products to our
most important customers - the babies.

Company Values

1 - Customer centered - we strive to provide the best service and products to our customers

2 - Safety - we assure that our products are safe from harmful chemicals.

3 - Integrity - we practice integrity in all our actions, and we promise honest and fair service to
all our employees, customers and suppliers.
 SAMPLES OF CODE OF CONDUCT
Code of Conduct:

Employees Decorum

1. Employees must always practice mutual respect to one another. The company does not tolerate
spreading of rumors and stories that may taint the reputation of its employees
2. Employees must practice professional tone in communicating with colleagues, whether oral or written
communication

Use of Company Property

1 . Employees must only use company properties for official business functions and not for personal gains.

Company properties are the employee’s resources. Everyone must engage proper use, care, maintenance and
operations of these properties.
What Have I learned so far?

Prepare your own sample of Code of Conduct for your chosen business organization
 Beyond Walls 3.7
As an applicant for the position of ethics officer in a supermarket, the ethics director asked you to draft a sample of code
of conduct for an organization of your choice.

It maybe for your church, your hobby or special interest club, or school

Your output must contain the following:

1, name and Nature of organization

2. MIssion and Vision of the organization

3. Values of Organization

4. Code of Conduct [ for at least three different categories,(e.g members decorum, use of organization’s property,
compliance with rules) with at least three items for each categories.

You may use this link as a reference and source inspiration :

http://www.7-eleven.com.ph/uploads/2016/08/Code-of-Conduct-and business-Ethics.pdf
Some Examples of Common Ethical Issues in a Business
Organization

Overstating the product’s benefits in order to make a sale is often

Misrepresenting
committed by sales personnel or even by marketing officers.
the benefits of a
product
Misrepresenting a product for example, saying that it can make
your skin fairer without any substantial research to back it up is an
ethical issue
Some Examples of Common Ethical Issues in Business
Organization

Some employees may engage in activities that are not

related to the job. For Example, browsing and posting on
Misuse of social media during office hours. The employee is clearly
Company Time misusing the time that he/she is supposed to spend working
and Resources for the company and the company resources by using the
computer and Internet connection on social media browsing
Some Examples of Common Ethical Issues in a Business
Organization

Harassing a colleague by using physical threats, harassment,

false accusation, profanity , yelling and unreasonableness
Abusive behavior may result in conflicts within the department or
organization.

This disruptive behavior may demotivate employees

involved and may result in less productivity
Some Examples of Common Ethical Issues in a Business
Organization

Conflict on interest happen when a employee is presented

Conflict of Interest
with a dilemma of whether to advance personal gain or
interests or that of the company’s.

For example, an employee may choose to deal with a

supplier that provides substandard products or services but
gives him or her a bribe instead of an ethical supplier that
provides better products or services .
Reflect upon:

Have you ever been confronted with an ethical issue? For example, cheating on a exam
or lying to you parents? How did you deal with it?
Extend your knowledge

There are companies that stand out in best practices of corporate culture, Visit the
following website and learn about some companies with the best organizational culture
from around the world.

https://www.entrepreneur.com/article/249174
What have I learned so far

1. What is an ethical issue

2. Why is misrepresenting the benefits of a product an ethical issue?

ESSENTIAL LEARNING

IN SUMMARY:
In many organization, there exists a culture- a collection of shared
beliefs, expectations, and meanings that guide and motivate the
members to perform their roles and functions in the organization.
Organization or corporate culture is the system of shared actions
values and beliefs that develops within an organization ang guides
the behavior of its members
ESSENTIAL LEARNING

The roles of corporate culture include external adaptation, which

requires the organizational culture to determine how the company
wll reach its goals, accomplish its tasks, identify methods to achieve
its goals, and place measures to cope with success and failure; and
internal integrations, which starts, with the establishment of an
identity that is unique to the business organization
ESSENTIAL LEARNING

The layers of cultural analysis include observable culture on the outer layer,
which means the way things are done in an organization; shared values,
which include a deeper understanding of what the company stands for and
which refer to the common values that are means to put together and
motivate members of the organization; and the common cultural assumptions
on the inner layer, which include the taken-for-granted truth that the
member share as a result of a collective experience with the organization
ESSENTIAL LEARNING

The leaders of a business organization serve as the role models of

the beliefs , values and behavior that are expected from someone
who represents the company. The top management set the tone of
the corporate culture, and this has to be consistently adopted
throughout the firm.
ESSENTIAL LEARNING

There are two types of corporate culture:

COMPLIANCE BASED (Traditional APPROACH) - which focuses on the following: RULES,

LAWS, POLICIES and REGULATIONS as the primary responsibility of ethics;

VALUES BASED (Integrity based) - which re enforces a particular set of values rather
than a particular set of rules
ESSENTIAL LEARNING

CODE OF CONDUCT

A Code of Conduct or code of ethics is a list if guidelines and protocols based on the
organization’ values. It articulates how an employee should behave and imbibe the
values of the company at all times, and it also serves as a reference when decisions are
to be made, especially, when the employee is confronted with ethical issues.
ESSENTIAL LEARNING
 FOUNDATIONS OF THE PRINCIPLES of Business
Ethics
Situational Disposition:
GIVE YOUR ETHICAL view on this:
Graded seatwork - synchronous class - 10 points

Please check Aralinks for synchronous (to lodge on the

platform)
 FOUNDATIONS OF THE PRINCIPLES of Business
Ethics
In this module, you will be ABLE TO:

a. Compare and contrast classical philosophies as they relate to the business setting

b. Give examples of how belief systems affect business practices

c. analyze simple business situations as they are affected by the Filipino value system
and recommend ways of confronting ethical challenges in the business setting; and

d. distinguish what is good versus what is morally unacceptable among the given
Filipino values.
FOUNDATIONS OF THE PRINCIPLES of Business
Ethics

“DOING THE RIGHT THING DAILY

COMPOUNDS OVERTIME.”

-John C. Maxwell
 FOUNDATIONS OF THE PRINCIPLES of Business
Ethics
Philosophical Ethics

Facing an ethical dilemma is oftentimes an uncomfortable situation. IN worse cases, it may

compromise your credibility and dignity. It can make you lose face or lose your job. In times when
you need to assess a situation if you are about to do the right thing, most people would naturally
find the answer in their religious beliefs or the value system they grew up with. However, this is a
relative viewpoint, because if ethics is based on religion and if different cultures have differing
religious beliefs, than what is ethically wrong in one belief may be ethically right in another.

Unlike religious ethics, which explains human well being in religious terms, philosophical ethics
provides justifications that must be applicable to all people regardless of their religious
viewpoints. (Hartman, DesJardins, McDonald 2014)
 FOUNDATIONS OF THE PRINCIPLES of Business
Ethics
Differentiate the following statements

1. I will donate to Yolanda victims to help them rebuild their lives.

PHILOSOPHICAL JUSTIFICATION FOR ETHICAL JUDGEMENT

2. I will donate to Yolanda victims because GOD expects me to help other

people.

RELIGIOUS REASONING
 FOUNDATIONS OF THE PRINCIPLES of Business
Ethics
Ethical Framework Source of Moral Activity

Utilitarianism Making decisions based on ethical consequences

Results based approach

The end justify the means

Ethics of Principles and Making decisions based on principle, and not just on consequences
Rights The end DO NOT justify the means

Virtue Ethics Grounded on character traits and emphasizes moral character in

contrast to moral rules or consequences of actions
YOUR VIEWS ON THIS

Unless you loved an animal

unconditionally,
A part of your soul remains
UNAWAKENED
FOUNDATIONS OF THE PRINCIPLES of Business Ethics

Utilitarianism - A consequentialist (Results based) Approach - holds that an action is judged based on its overall consequences.

Big IDEA:
In UTILITARIANISM, the ends of an action justify the means taken to reach those ends.
FOUNDATIONS OF THE PRINCIPLES of Business Ethics
Beyond Walls 4.1
STU corporation, one of the largest mall chains in the country, came up with a plan to put up a mall in a strategic area where foot traffic is expected to be high. However, the area has around 1,000 informal settlers. The current owner of the lot is the government of Paranaque. STU
officers talked to the city government and were given permission to demolish the houses. The informal settlers were very furious but were not able to stop STU Corporation from putting up a mall in the area. Two of the settlers died fighting for the right to stay, they fought with the
authorities and refused to leave their houses.
The construction will be able to generate construction jobs and new mall jobs once set up.
Do you think STU Corporation’s decision of pushing through with the establishment of a mall in Paranaque City was ethical? Why or why not?
Which utilitarianism principle applies to this case. Explain why.
FOUNDATIONS OF THE PRINCIPLES of Business Ethics

Utilitarianism is also called the consequentialist approach to ethics and social policy - that each one should act in ways that produce better consequences or results,
regardless of the means taken to reach those result.

“Better consequences” are results that promote human well-being such as happiness, dignity, health, integrity, freedom and respect of all people involved or affected. This approach also upholds the following principles:
FOUNDATIONS OF THE PRINCIPLES of Business Ethics

A Decision is morally right if it promotes the greatest good for the greatest number of people.
It is morally right if the net benefits over costs are greatest for all people affected, compared with the net benefits over costs of all other possible choices.
It is morally right if its benefits are greatest for each individual and if these benefits outweigh the costs and benefits of alternatives.
FOUNDATIONS OF THE PRINCIPLES of Business Ethics

A Decision is morally right if it promotes the greatest good for the greatest number of people.

Example: The new environment secretary was approach by several mining business magnates to provide them with mining permits. However, the applications for mining permits were rejected because the new environment secretary believes that the mining activities will have severe negative impacts
of the environment.
FOUNDATIONS OF THE PRINCIPLES of Business Ethics
2. It is morally right if the net benefits over costs are greatest for all people affected, compared with the net benefits over costs of all other possible choices.

Example:
The new transportation secretary , in the pursuit of solving traffic problems in Metro Manila, came up with the permanent solution. However, the solution will require shutting off the MRT operations for one year. Other solutions, on the other hand, will just be temporary and will
definitely ignite angry commuters more because of the frequent breakdown of the MRT coaches that can happen over a longer period of time, with no clear resolution of the problem.
FOUNDATIONS OF THE PRINCIPLES of Business Ethics
3. It is morally right if its benefits are greatest for each individual and if these benefits outweigh the costs and benefits of alternatives.

Example:
The aggressive drive of the government to apprehend drug addicts and rehabilitate them will not just benefit the drug addicts themselves but also their families and the society.
UTILITARIANISM can be categorized as rule based or act based

Rule based Utilitarianism Act-based utilitarianism

Definition General principles are The decision is based on the likelihood of

used in making a decision achieving greatest utility or good by
on the greatest benefits analyzing particular actions or behavior
that can be achieved
from an action

Key Concepts Uses rules to determine Uses analysis of particular actions or

ethical behavior behavior to determine what is best behavior
UTILITARIANISM can be categorized as rule based ot act based
Rule based Utilitarianism
Application Companies usually have a
to Business confidentiality clause , where
employees who share trade
secrets, formulations,
company documents, etc. may
be given sanctions or
terminated when they divulge
this information to a
competitor or to the public
Act-based utilitarianism
An employee of a company that
manufactures milk tainted with melamine (a
toxic substance) may choose to divulge this
information to the media or public in order
to save babies from dying. While it violates
the confidentiality clause of the
company,the employee may feel that he or
she is doing the right thing to serve the
greater good or more people
UTILITARIAN concept is widely practiced in the government and
business environments, because utilitarianism considers both the
collective interests as well as some particular interests, analyzes and
formulates alternative choices based on the greatest good of everyone
involved in the decision, and estimates the costs and benefits of
alternative choices for the affected groups.
Since the consequences of each action will depend on the specific
facts of each situation, utilitarianism tends to move toward practical
thinking. No act is ever absolutely right or wrong in every situation as
long as it produces the greatest good for the greatest number of
people.
Ultimately, utilitarianism's goal is to achieve the best consequences
for all parties involved in the actions.
What have I learned so far?

1. What is UTILITARIANISM? 2. Differentiate rule based from act based

utilitarianism
UTILITARIANISM AND BUSINESS DECISIONS
UTILITARIANISM - ANSWERS THE FUNDAMENTAL QUESTION:
“ What should we do?”

Which is always applicable in business because of the many decisions that need to be done.In reference maximizing overall good, business organizations are always on the look-out for conducting cost benefit analysis and making decision based on the maximum benefits that can be achieved with minimal costs.

Business organizations can use utilitarianism by identifying the different stakeholders that will be affected by a decision, calculate costs and benefits for each group, and decide on a course of action that will generate the greatest good for the greatest number
UTILITARIANISM AND BUSINESS DECISIONS

In the example provided in TAble 4.2, when an employee found out that melamine is being used in the milk that his company manufactures, there are different stakeholders that will be affected by divulging this information.

The consumers will benefits from the employees action as the company will most likely be shut down, or the milk manufactured will be withdrawn from the market, so the babies will stay safe.
The company may be closed down
The employees will lose their jobs
The suppliers of the company will lose a client
The environment may benefit if the company has dismal manufacturing practices.
UTILITARIANISM AND BUSINESS DECISIONS

By assessing the effect utilitarianism will have on the different stakeholders involved, the management or the governing body can take action on the situation:

However, there are also challenges in using utilitarianism in making decisions:

There really is no exact definition of “good” for all concerned, and there is no agreement on who decides, whose interests are prioritized in decisions, and for whose good it is that has to be considered.
It will be hard to quantify the costs of non-monetary stakes and long term effects of an action
While utilitarianism considers the collective interest, there are times when individual interest may need to be prioritized.
BIG IDEA

Ethics of principles and rights upholds that the

ends do not always justify the means.
Ethics of Principles and Rights

Considering the greatest good in decision-making is definitely an ethical way of arriving

at decision, but it is also important to consider principles and not just consequence. This
explores the relationship between legislative and judicial branches of government.
Legislative role creates policies and regulations based on utilitarian principles,
While
Judicial role enforces these laws to achieve justice and fairness.
Ethics of Principles and Rights
The second framework in this ethical philosophy is that some decisions are needed to be
made based on principles rather than consequences. For example, paying a bribe to
customs will promote greater good for the stakeholders as follows:
1. The company will be able to process the raw materials immediately, so they can be
turn into products
2. The consumers will not experience delay enjoying the products
3. The customs official will receive additional compensation that they can use to feed
their families.
Ethics of Principles and Rights
However, the Philippine Constitution Republic Act No. 3019, or Anti-Graft and Corrupt
Practices Act, prohibits public officials from receiving any gift in exchange for favor, Thus
paying a bribe is not ethical based on ethics of principles and right.
Aside from the law, there are also rules, duties and guidelines set by the organization
and institution which a member must follow. As As student, it is your duty to pass your
subjects, and not to cheat on the exams. As a daughter or a son, it is your duty to follow
the instruction of your parents. As a friend, you are not to spread gossip about your
friends. As a church member, you follow the rules on dress code or proper conduct
during a church service. Employees of an organization also follow set rules and
regulations formulated by the company. These rules serve as a social agreement or a
contract that helps you function ang get through your relationship with people.
Ethics of Principles and Rights
Beyond Walls 4.2
Barangay Aduas Sur has been plagued with drug addicts. In an effort to join the
nation wide anti-drug campaign, the city tasked Barangay Captain marlon Collado to
list down the names of the drug addicts and drug pushers in his barangay. Captain
Collado knows that when he gives the list to the city mayor, these people will be
subjected to extra judicial killings; but if he does not give a list, the city mayor will
question him. He is not sure whether the extra judicial killings were done by the local
police or vigilantes. Captain Collado believes in Section I, Article II of the 1987
Philippine Constitution, which say that no person shall be deprived of life, liberty, or
property without the due process of law, nor shall any person be denied the equal
protection of the law. Therefore he was hesitant to submit a list and wants the
justice system to prevail.
Ethics of Principles and Rights
Beyond Walls 4.2
1. If you were Barangay Captain Marlon Collado, would you submit a list of drug
addicts and drug pushers in your barangay? Why or why not?

2. What are the benefits and downsides of submitting a list of drug addicts and drug
pushers to the city mayor.?
VIRTUES ETHICS

Virtues can be described as the character traits that would constitute a

good and meaningful life.
Being happy, friendly, joyful, and calm; preserving integrity and dignity;
having good relationships; and possessing modest things are a few of the
characteristics of having a meaningful life.
BIG IDEA

VIRTUE ethics focuses on your

possessed moral traits and choice of
actions
VIRTUE ETHICS

Virtue ethics is grounded on character traits and emphasizes moral character

in contrast to moral rules (deontology) or consequences of actions
(consequentialist) approach in utilitarianism).
It has roots in ancient Chinese and Greek philosophy and is recognized to have
been established by Plato and Aristotle.
It focuses on the type of person you want to be, grounded on good character,
motives, and core values, and not on the actions that should be taken
 Beyond walls 4.3 - Read and Answer

Read the following case study and then answer the given questions

Jessica,Timothy and Aldrin are grade 12 students who have been classmates since grade
school. The three of them have been on the honor roll since grade school. One day, jessica
was approached by her friend from another section that there is a ;leak of the business
Mathematics final examination copy. Jessica, being not very confident with her grades in
Business Mathematics, took the opportunity and grabbed a copy of the leaked questionnaire.
Being a friend to Timothy and Aldrin, jessica also shared the good news with them. However,
Timothy and Aldrin went to their Bus Math teacher and reported that there was a leak of the
examination copy. They said it came from Jessica . Jessica was questioned by their teacher
and was expelled from the school.
Answer the following questions:

1. Do you think what Timothy and Aldrin did was right? Why or why
not?

2. What virtues pushed Timothy and Aldrin to report the case to

their teacher?
An excerpt video of Belief systems
Watch the video and ponder how it affects the
business ethics
Impacts of Different Belief systems on Business
Ethics

Human beings have different personalities, different goals,

different values, and thus have different belief systems.
Companies with cultural diversity welcome people with different
backgrounds from different cultures. These different
background, especially religious orientations or belief systems,
have impact on business ethics.
BUDDHISM

Buddhism is a religion that originated in India around 525 BC, It is a flexible

system of beliefs that allows it to adapt to country-specific customs, and
agrees with the moral teachings of other religions. Centered in the Buddhism
belief are the five precepts or training rules which help promote peaceful
coexistence and harmony in the society. These are the minimum moral
obligation of Buddhists, which they fulfill by refraining from:
Buddhism - five precepts or training rules

1. Harming or taking lives of beings

2. Taking what is not given
3. Engaging in sexual misconduct
4. Lying or spreading gossip; and
5. Taking intoxicating substances such as alcohol or drugs
In this sense, businesses must be conducted in consideration of the five
precepts. For example, in conducting its business, an organization must
ensure the sustainable use of natural resources, so as not to endanger lives
and harm the environment.
ISLAM

SHARIAH, the islamic religious law based on the qur’an, is applied in all
muslim-dominated countires. in such countires, the shariah law is the legal
authority. islam favors trading or business, but it has to obey rules, and most
importantly, be guided by honesty. Cheating or deception in economic
transactions is condemned by the Qur’an. Possible gains from the trade or
business should not result in materialism , which is considered as diverting the
attention from more important spiritual concerns.
CHRISTIANITY

Chrisitian beliefs are all based on the bible containing the Old and the New Testaments.
In a study conducted by De Paul University, Christians who considered that God called
them to a particular occupation or business were naturally concerned that their actions
involving their work or business must be conducted in an ethical manner and for the
good of the community. Stewardship is another Christian concept where Christians see
themselves as stewards of resources and responsibilities, which cover stewardship of
other people (leading them to the right path) or using and caring for the environment.
IMPACT OF FILIPINO PRACTICES AND BELIEF
SYSTEMS ON BUSINESS ETHICS

Filipinos have their own culture and practices. These form

part of our identity as a nation and our character as a race/
with a very rich cultural heritage. We enjoy a value system
that is diverse and different. However, some of our
practices have an impact on business organizations
FILIPINO TIME

Filipino have already coined the term “Filipino time” which is synonymous
to being late. This trait is used as an excuse for being tardy in meetings,
events, and other social affairs. Whether formal or informal. It reflects
unprofessionalism and lack of respect for other people’s time.
Business productivity is lost when someone is late. When a salesperson
who is assigned to open a retail store in the mall is late, the retail store may
be penalized by the mall and it will also lose sales when it opens late due to
the person’s tardiness
FILIPINO TIME

When you are trying to strike a deal with a company and you
are late for a meeting, you may be seen as unprofessional and
may reflect your ability to deliver good or services on time. You
do not want to give an impression that your company will not
be able to deliver the required outputs at an agreed upon time.
Essential learning

When making decisions , people alway look for guidance, whether from other
people or from their ethical values. FAcing an ethical dilemma is oftentimes an
uncomfortable situation. In times when people need to asses a s situation if
they are about to do the right thing, most of them would naturally find the
answer in their religious beliefs or the value system they grew up with.
Philosophical ethics provides justifications that must be applicable to all
people regardless of their religious viewpoints.
Essential learning

Utilitarianism holds that an action is judged based on its overall

consequences. IT is also called a consequentialist approach to ethics and social
policy - that each one should act in ways that produce better consequences or
results, regardless of the means taken to reach those results. “Better
consequences” are results that promote human well-being such as happiness,
dignity, health, integrity, freedom and respect of all people involved or
affected.
Essential Learning

Ethics of principles and rights considers principles and not just consequences.
It explores the relationship between legislative and judicial branches of
government - legislative role creates policies and regulations based on
utilitarian principles, while judicial role enforces these laws to achieve justice
and fairness. The second framework in this ethical philosophy is that some
decisions are needed to be made based on principles rather than
consequences.
ESSENTIAL LEARNINGS

VIRTUE ETHICS - is grounded on character traits and emphasizes moral

character in contracts to moral values (Deontology) or consequences of actions
(consequentialist approach) in utilitarianism. It has roots in ancient Chinese
and Greek philosophy and is recognized to have been established by Plato and
Aristotle. It focuses on the type of person you want ot be, grounded on good
character, motives, and core values, and not the actions that should be taken.
 ESSENTIAL LEARNINGS

Belief Systems also have impact on decision-making related to business

Buddhism is a flexible system of beliefs that allows it to adapt to country-specific

customs and agrees with the moral teachings of other religions. Centered in the
Buddhism belief are the five precepts or training rules, which help promote peaceful
coexistence and harmony in the society. These are the minimum obligation of Buddhists,
which they fulfill by refraining from 1 . harming or taking lives of beings; 2 - taking what
is not given; 3- engaging in sexual misconduct; 4 - lying or spreading gossip; and 5 -
taking intoxicating substances such as alcohol or frugs.
ESSENTIAL LEARNINGS

ISLAM - trading or catering to a business os favored as long as rules are obeyed

and the oractice is guided by honesty. Cheating or deception in economic
transactions is condemned by the Qur ‘an. Possible gains from the trade or
business should not result in materialism, which is considered as diverting the
attention from more important spiritual concerns.
 ESSENTIAL LEARNINGS

CHRISTIANITY teaches that Christians are stewards of resources or responsibilities

toward other people and resources such as the environment. Christians who
considered that God called them to a particular occupation or business were
naturally concerned that their actions involving their work or business must be
conducted in an ethical manner and for the godo of the community.

Filipino culture, beliefs and practices also affect the business setting.

Some of these Filipino traits are the following:

ESSENTIAL LEARNINGS - FILIPINO TRAITS AND
BELIEFS

1. FILIPINO TIME - which is synonymous to being late. This trait is used as an

excuse for being tardy in meetings, events, and other social affairs, whether
formal or informal. It reflects UNPROFESSIONALISM and LACK OF RESPECT for
other people’s time.
2. PADRINO SYSTEM - or patronage happens when one gains favor, promotion or
political position through family affiliation or friendship, as opposed to
earning it due to one’s own skills and abilities
ESSENTIAL LEARNINGS - FILIPINO BELIEFS AND
TRAITS

3. UTANG NA LOOB - or indebtedness in gratitude is the concept of “paying”

back a person in non monetary terms. The good deed that has been received
will be paid back with a good deed as well.

4. PAKIKISAMA - is a Filipino trait that describes how Filipinos take care of their
interpersonal relationships by agreeing to what the majority wants or by
getting along with others.
 ESSENTIAL LEARNINGS FILIPINO BELIEFS AND
TRAITS
5 - BAHALA NA - is leaving everything to chance, while Mañana (mamaya na) habit is delaying to do
things instead of doing things now. In business, a business owners cannot leave everything to fate.

Manana habit - is destructive because an employee may produce mediocre outputs due to doing
everything haphazardly.

6 - FILIPINO - HOSPITALITY is known worldwide. This trait works best in the hospitality and tourism
industries such as hotels,, resorts, airlines, travel agencies and the like. Showing Filipino hospitality
to foreign visitors makes them enjoy more their stay in tourist destinations.
EXAMPLES - MANANA HABIT

Prof. Raymond lazaro has been teaching University of Assisi for the past 30 years. On
his 31st year, he starts procrastinating and does not come to classes on tie. He rarely
attends lasses and just instructs his students to go online and do research. He also
delays the examinations because he is always late in preparing his exams. Until one
day, the department head instructed all professors to enlist their students in the Inter-
class Marketing corporation. However, during the competition, no one from Prof.
Lazaro’s classes made it to the finals. In fact, most of them failed in the preliminaries