Korbel Foundation College, Inc.

Purok Spring, Brgy. Morales, City of Koronadal

Tel Number 877-2051/0228-1996

GOOD GOVERNANCE AND SOCIAL

RESPONSIBILITIES
GGSR

Prepared by:
FRANKY A. SUMAYO, LPT.
 Learning Objectives
At the end of this lesson
you will be able to:
• Know and explain how to blow
the whistle
• Discuss whistle blowing
morally permissible

• Understand differentiate multi-

level marketing and pyramiding
• Explain the moral issues in
pyramiding
 Introduction
Content

No organization can operate outside the value system of

a given society. It is in fact the values system that largely
influences, if not totally shape the behavior of individuals
who as group comprise the organization. The value system
is a pattern of general attitudes and beliefs concerning what
is desirable or undesirable, what is right or what is wrong.
• HOW TO BLOW THE WHISTLE (www.whistle-blower.org)
Content

1. Before taking any irreversible steps, talk to your family or close friends about your
decision to blow the whistle.

2. Be alert and discreetly attempt to learns of any other witnesses who are upset about
the wrongdoing.

3. Before formally breaking ranks, consider whether there is any reasonable way to
work within the system by going to the first level of authority.

4. Develop a plan, such as strategically- timed release of information to government

agencies so that your employer is reacting to you, instead of vice-versa.
5. Maintain good relations with the administration
Content and support staff.
6. Before and after you blow the whistle, keep a careful record of events as they unfold.

7. Identify and copy all necessary supporting records before drawing any suspicion to
your concerns.

8. Break the cycle of isolation research and identify and seek a support network of
potential allies, such as elected officials, journalist, and activists.

9. Invest on funds to obtain legal opinion from a competent lawyer.

10. Always be on guard not to embellish your charges.

• IS WHISTLE BLOWING MORALLY
Content PERMISSIBLE
It is morally permissible if it meets the following conditions:
(cf. Richard de George. 1995. Business Ethics. Fourth Edition. New York: Prentice Hall,
Inc.)

The company must engaged in illegal or immoral practice or about to release which
does a serious harm to individuals or to society in general.

 The employee should report his concern or complaint to his immediate superior.

If no appropriate action is taken, the employee should take the matter up the
managerial line, before he or she is obliged to go public.
 The employee must have a good Content
reason to believe that by going public, he will be
able to bring about the necessary changes.

The whistle blower has compelling evidence that the inappropriate actions have
been ordered or have occurred.

 The whistle blowing has some chance of success.

 The whistle blower, except in special circumstances, has exhausted all internal
channels for dissent before going to public.
 MULTI- LEVEL MARKETING
Content

Multi- level marketing is a system in which one signs up other people to assist him,
and they, in turn, recruit others to help them. It is a system of selling through many
levels of distributors thus the word “multi-level marketing”. Each gets percentage on
the price of the product sold. This is also known as direct selling companies.

However, there are many multi-level distributorship schemes that often call
themselves a “network” but are nothing more than sophisticated chain letter. They are
disguised pyramids which operate like a real “pyramid” claiming participants can earn
lot of money by concentrating their efforts on recruiting distributors rather than on
selling product. The companies of these type require people o pay a joining fee or thy
simply call it an “ investment” usually several thousand pesos. But oftentimes, the
joining fee is quite a big amount for the start up kit.
 PYRAMIDING
Content

In the classic “pyramid” scheme, participants attempt to make money solely by

recruiting new participants into the program. The hallmark of these schemes is the
promise of sky- high returns in a short period of time for doing nothing other than
handing over your money and getting others to do the same.

Pyramid schemes focus on the exchange of money and recruitment. At the heart of
each pyramid is typically a representation that new participants can recoup their
original investment by inducing others to make the same investments. Pyramiding
operates on recruitment. It starts with one person that encourage six participants to
join. The six recruits will again get six to join making the number of people involved 36
and another continuation of recruitment.
 MLM Content PYRAMIDING
1. Legal 1. Illegal
2. Income generated only on product 2. Income is generated solely on the
sales process of recruiting others into the
pyramid

3. Provides a training program 3. No training program

4. Consumable, reasonably priced quality 4. Few retail sales and high cost, slower
products moving products

5. Enormous efforts to sell are exerted 5. Little effort or no effort is being made to
sell to the public
 Content
• Market Saturation: An inherent Problem in a
Pyramid
Pyramid’s design can saturate the market with no one noticing. It is designed to
recruit so many salespeople, who in turn will attempt to recruit more salespeople,
and so on until the market is saturated. It is unstoppable, a human “churning”
machine with no “off button”. Out of control by design, its gears will grind up the
money, time, and entrepreneurial energy of the well-meaning who joined to
supplement their income. When the inevitable destiny occurs the only money that
may be made is not from the product or service but from the losses of people down
the organization.
 MORAL ISSUES IN PYRAMIDING
Content

1. Too much materialism and greed

2. They con the public, making them believe that they are a
legitimate MLM

3. The intentions are bad.

 Highlight Summary

•Multi- level marketing is a system in which one signs up other people to assist him, and they,
in turn, recruit others to help them.

•Pyramid schemes focus on the exchange of money and recruitment.

•In the classic “pyramid” scheme, participants attempt to make money solely by
recruiting new participants into the program
•Pyramid’s design can saturate the market with no one noticing. It is designed to recruit so
many salespeople, who in turn will attempt to recruit more salespeople, and so on until the
market is saturated. It is unstoppable, a human “churning” machine with no “off button”.