FAIRNESS,

ACCOUNTABILITY
AND
TRANSPARENCY

Lesson 1.2
 FAIRNESS

–Refers to the equal treatment.

Ex.
* All shareholders should receive equivalent consideration for
whatever shareholdings they hold.
* They should also be fairness in the treatment of all stakeholders,
including employees, communities and public officials.
Fairness in business refers to the value of treating people
with standard of performance that is consistent and equal
based on commitments.

* Giving customers a reasonable

value for their money.
* Providing an unbiased work environment where
employees have identical opportunities to good
benefits and working condition.

* Caring for community members and

business partners with similar level of
fairness expected from this is also vital.
The issues of money, competition, and pride are usually the causes of
unfairness both petty and serious.
o n Unfairness could also be
m m f Taking credit for
Co l e o felt when there are
m p re: another’s work
E xa s a double standards
n e s Some do less work, and
fai r Inequitable allocation
U n they do isn’t good.
Shifting blame of work load
Others come in late, miss
deadlines, and make
Promotions of the less competent for
mistakes
political reasons
Yet they get the same
raise as anyone.
Fairness is concerned with actions, processes, and consequence that are
morally right, honorable, and equitable.
 ACCOUNTABILITY
–Refers to the obligation and responsibility
to give an explanation or reason for the
company’s action and conduct.
Ex.
* Employees who do not meet the expectations of their
supervisor are held accountable for their actions and must
answer for their inability to do so.
 Accountability is crucial in ensuring high performance within an
organization. Both subordinates Accountability
Managers must and supervisors is applicable
clearly should have a not just for
communicate clear idea of how profit-oriented
their expectation Without their projects company, but
to the person who defining goals, should be Cultivating also to non-
is responsible for employees lack handled. And accountability profit
the specified delivered. organization
a frame of across the
action or tasks.
reference for organization
how they are requires
performing in managers to
the workplace. take specific
Todays, companies’ constituencies include:

– Institutional Investors – Employees

– Customers – Communities
 TRANSPARENCY
– Means openness, a willingness by the company to provide clear
information to shareholders and other stakeholders.
– Ensures that stakeholders can have confidence in the decision-making
and management process in the company.
Ex.
A Company to be called transparent has to open and
willing to disclose financial performance figures which are
truthful and accurate.
Disclosure of material topics about organization’s
performance and activities should be timely and precise to
make certain that all investors have access to
understandable, realistic information which exactly mirrors
the financial, social and environmental situation of the
organization.
This anticipation for transparency has extended further that
personal interactions and is now a reality in business.

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Transparency is not just about customers. Employees too
place value on transparency in their relations with different
levels of management.
Some business keep information secret. This approach can
nurture gossip and rumors.
It also places the company to be responsive in a quick and efficient manner when
confronted with problems and controversies.
4.
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1. R ER
3. STAFF INVOLVEMENT SE
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 FAIRNESS, ACCOUNTABILITY AND
TRANSPARENCY FOR SOCIOECONOMIC
DEVELOPMENT
ONE OF THE REQUIREMENTS FOR A SUSTAINABLE
SOCIOECONOMIC DEVELOPMENT is FAIRNESS.
Corruption and Cronyism in business must be
removed to move forward towards
development

According to Aristotle “Equals should be treated

equally and unequals unequally” Favoritism,
Cronyism, and nepotism all interfere with
fairness since they furnish unjustified benefits to
somebody who is not worth of this treatment.
 FAIRNESS, ACCOUNTABILITY AND
TRANSPARENCY FOR SOCIOECONOMIC
DEVELOPMENT
TRANSPARENCY and ACCOUNTABILITY are important pillars also for socioeconomic
development of a country especially fro developing ones like Philippines.

These are vital for the resourceful and effective

functioning of a modern economy and for
nurturing well-being.

Satisfactory transparency and accountability are

significant for making certain that resource
wealth is administered for the advantage of the
entire population.
PRACTICES of FAIRNESS, ACCOUNTABILITY
AND TRANSPARENCY in PHILIPPINE
BUSINESS
last year, Philippines ranked 2nd best in ASEAN when it comes to
the practices of fairness, accountability and transparency or
simply corporate governance.

Top 11 Philippine corporations that made it to the top 50 list. 4 owned by Ayala
Group which are Ayala Corp., Ayala Land Inc., Globe Telecom Inc., and Manila
Water Co., The Manny Pangilinan- led group had three, namely Manila
Electric Co., Phelix Mining Corp., and Philippine Long Distance Telephone Co.,
other firms that were part of the list were Aboitiz Equity Ventures of the
Aboitiz clan, George Ty’s GT Capital Holdings, Inc., and the Sy family’s SM
Prime Holdings and BDO UnibankInc.
Practices: Globe practices regular disclosure of financial results. Quarterly financial
reports are immediately released following the approval by the Board
appropriate regulatory bodies like Philippine Stocks Exchange (PSE) and
Securities and Exchange Commission (SEC).
Philippine Long Distance Telephone Co. has a policy that provides safeguards so
that the tradition of giving gifts is handled based on the values of fairness,
accountability and transparency….
Purposely, this prohibits the solicitation of gifts, sponsored travel, and
entertainment from third parties. Receipts and acceptance of gifts voluntarily given
by such third parties are handled based on policy as wel.
Institute of Corporate Directors (ICD) working session at the Mandarin Oriental in
Makati City on November 15, 2015, Atty. William S. Pamintuan shared with an audience
Meralco road map in establishing a corporate governance culture from simple
corporate governance compliance. Policies on conflict of interest, gifts and
management control have been implemented…
Ethical Dilemma
Mini Case 2
How the Tylenol Murder of 1982
Changed the Way We Consume
Medication