Business Ethics and Social

Responsibility
Quarter 3 – Module 2 – Lesson 2
Formulate a Morally Defensible Position on Ethical Issues in
Entrepreneurship
BUSINESS ETHICS

LESSON - 2
 12 Principles that govern Business Ethics

HONESTY INTEGRITY KEEPING PROMISES LOYALTY FAIRNESS

 12 Principles that govern Business Ethics

BEING TRUTHFUL AND

SINCERE ABOUT THE
QUALITY OF THE
PRODUCT

HONESTY
 12 Principles that govern Business Ethics

EARNING THE TRUST OF

STAKEHOLDERS

INTEGRITY
 12 Principles that govern Business Ethics

KEEPING YOUR WORD

KEEPING PROMISES
 12 Principles that govern Business Ethics

NOT PUTTING YOURSELF

D ABOVE ANYTHING ELSE
THAT JEOPARDIZE THE
FIRM

LOYALTY
 12 Principles that govern Business Ethics

D ACTING WITH
IMPARTIALITY WITH ALL
THEIR ACTIONS

FAIRNESS
 12 Principles that govern Business Ethics

caring OBEDIENCE EXCELLENCE RESPECT BEING A LEADER

TO THE LAW
 12 Principles that govern Business Ethics

EXERCISE OF
COMPASSION AND
SINCERE CONCERN FOR
OTHERS

caring
 12 Principles that govern Business Ethics

SETTING AN EXAMPLE IN
OBEYING RULES

OBEDIENCE
TO THE LAW
 12 Principles that govern Business Ethics

STRIVING TO HAVE THE

HIGHEST QUALITY OF
PRODUCT AND SERVICE

EXCELLENCE
 12 Principles that govern Business Ethics

BEING COURTEOUS AT
ALL TIMES IN ALL YOUR
DEALINGS

RESPECT
 12 Principles that govern Business Ethics

LEADERSHIP BY
EXAMPLE, BEING A ROLE
MODEL

BEING A LEADER
12 Principles that govern Business Ethics

MORALE accountability
 12 Principles that govern Business Ethics

MORALE AND GOOD

REPUTATION TO
ENHANCE THE IMAGE OF
THE COMPANY

MORALE
 12 Principles that govern Business Ethics

BEING RESPONSIBLE FOR

ONE’S ACTIONS
OF

accountability
ETHICAL Home Tv Shows Movies Browse by Language

ISSUES
An ethical issue is an identifiable problem, situation, or opportunity that
requires a person to choose from among several actions that may be evaluated as
right or wrong, ethical or unethical.
The ethical issues in entrepreneurship are so many to mention all. We will be
limiting our study to basic fairness, personnel and customer relations distribution
dilemmas, fraud, unfair competition, unfair communication, non-respect of
agreements,
Play
environmental degradation, etc.

Episodes

1.Inappropriate Policies 2. Core Principles 3. Advocating Ethical 4. Ethical Concerns in

and Practices Business Strategy Transactions
INAPPROPRIATE POLICIES
AND PRACTICES
Some policies and practices may have been acceptable
now but will become unacceptable later. We consider
policies and practices as inappropriate when they are
deliberate wrongdoings such as:

01 02 03 04 05
Discrimination Withholding the Humiliation of Destructiveness Acts of violence
design to harm rights of other other people
others people designed to
diminish
psychological
needs and dignity
CORE PRINCIPLES
Many business issues may seem straightforward and easy to detect and resolve, but in reality, a
person often needs several years of experience in business to understand what is acceptable or
ethical. Many ethical issues in business can be categorized in the context of their relation to
conflicts of interest, fairness and honesty, communications, and business associations. In order
for a business to have its own

set of rules and guidelines in stablishing order and discipline within the organization, the
following core principles must be used as guide:

01 02 03 04 05 06
Fairness and Personnel and Fraud, unfair Unfair Non-respect of Environmental
Honesty Customer competition Communication agreements Degradation
relations
distribution
dilemmas
ADVOCATING ETHICAL
BUSINESS STRATEGY
How can we advocate honest policies and practices in all aspects of
business operations. The best way is to judge the ethics of a decision and
look at a situation from a customer’s or competitor’s viewpoint.
Here are simple ways:
• Customer Value Strategy - focuses in providing value to customers. Their
interest is more important
• Accounting Practices - honesty in giving financial information
about the business
• Truth-in-Selling - means to deliver what was promised to the
customer
• Integrity in Management Practices - providing fair treatment to
employees
• Customer Service Integrity - it means providing necessary service
after sale
• Personal Integrity - integrity of business leaders
• Product Integrity - providing not only the positive side of a
product. of business leaders
ETHICAL CONCERNS
IN TRANSACTIONS
Most of the Ethical Concerns in the workplace are within your transactions with:

 Employees - forced over time, Toxic workplace,

Culture Discrimination, Questionable Use of
Company Technologynology.
 The Boss - harassment, Unethical Leadership,
Unrealistic and Conflicting Goals.
 Clients - bribery, false advertising, customer
service issues
 Government - declaration of financial status,
complying with
Unethical business practices GOOD POLICIES AND PRACTICES
IN BUSINESS ORGANIZATIONS
 • Accounting manipulations - financial statements are manipulated to
show favorable results
• Overbilling - charging of more than the actual price
• Misleading advertisement - making promises that the product cannot
deliver
• Making false claims - taking credit for something like charity works
which they actually are not part of
• Customer service failure - failure to replace a damaged product or not
being able to serve a warranty
• Layoff and high compensation for executives
• Low quality of materials - using low quality to lower the total cost of
production
G
Unethical business practices
 • Complying with the government requirements
• Practice proper office decorum.
• Being sensitive to smells that maybe unpleasant to
employees.
• Company asses and properties are not o be use for
personal purposes.
• Employees should use infrastructure communication
properly and appropriately.

GOOD POLICIES AND PRACTICES

IN BUSINESS ORGANIZATIONS
ASSESSMENT ACTVITY
READY?
 1. Which of the 2. Ethical issues in
following is/are accounting do not exist
suggested way(s) of because the field
building good involves only objective
relationships with data
customers?

a. Establish customer a. TRUE

dissatisfaction goals
b. FALSE
b. Place the company’s
needs first

c. WHEN A
CUSTOMER
COMPLAINS, BE
DEFENSIVE

d. SHOW CARE AND

CONCERN FOR ASSESSMENT ACTVITY
 3. A person 4. Taking someone
uncomfortable with his else’s work and
employer’s hiring only presenting it as one’s
white men is own without providing
experiencing adequate credit or
compensation to the
source is an ethical
a. Conflict of interest issue in: game of
a. The
business
b. An ethical issue
b. Conflict of interest
c. a feeling of guilt
c. Fairness and honesty
d. Interorganizational
conflict d. Communication
ISSUES

ASSESSMENT ACTVITY
 5. AN ETHICAL
ISSUE IS A
PROBLEM,
SITUATION, OR
OPPORTUNITY
a. REQUIRING AN c. requiring an individual
INDIVIDUAL TO or organization to
CHOOSE AMONG choose between
several actions that harming consumers or
must be evaluated as the environment and
right or wrong earning more profits.

b. requiring an individual d. None of the above

or organization to
choose among several
actions that must be
evaluated as right or
wrong, ethical Or
unethical
ASSESSMENT ACTVITY
 6. What would you do
if you are about to
deliver a Net Loss
Financial Statement in
a company meeting

a. Alter the financial c. Hide the documents

statement at your
boss’s d. Present the statement as
direction.Place the it is and provide a
company’s needs related explanation
first

b. Do not appear in the

meeting and make
excuses.COMPLAI
NS, BE
DEFENSIVE
ASSESSMENT ACTVITY
 7. Covering a friend 8. Bribery, false
whose drinking is advertising, customer
causing a problem in service issues are
the company is an ethical issues
ethical issue concerning concerning mostly the

a. Conflict of interest a. Clients

b. Fairness b. Employees

c. Honesty c. employers

d. bribery d. None of the above

ASSESSMENT ACTVITY
 9. Manager that 10. A company that
implements a forced doesn’t want to
overtime is deemed to comply o legal
have an issue with requirements would
later encounter
problems with

a. Clients a. Customers

b. Employees b. EMPLOYERS

c. Government c. GOVERNMENT

d. None of the above d. None of the above

ASSESSMENT ACTVITY
 11. An employee of yours stay
on the phone on personal calls
for a long period causing
business transactions to be
delayed, what should you do
as a manager.

a. Confront her and tell c. Threaten her with a

her that you need to suspension letter.
prioritize business
calls. d. Ignore her actions

b. Ask the hr to give

her a memo right
away

ASSESSMENT ACTVITY
 12. Concerning honesty to
customers, I believe that

a. It is necessary to c. It should be rarely done

establish a good
relationship. d. It should be done only
when the businessman
b. It is essential if a feels like doing it.
relationship is to be
established

ASSESSMENT ACTVITY
13. How would you respond
ethically when you notice
that your co-employee secretly
bring home office supplies like
bond paper and ball pens?

a. Ignore the situation c. Confront her and tell

her in a nice way that
b. Tell her rudely that she should stop doing it
what she is doing is
theft d. None of the above

ASSESSMENT ACTVITY
14. As a manager, I should
be completely open,
honest and transparent
with my employees

a. When I like and c. Rarely, if ever, so that I

value them will avoid negatively
influencing the
b. When I have manager.
negative feelings
toward them d. Only when intuitively
feels like the right thing
to do.

ASSESSMENT ACTVITY
 15. The notion of
relating ethics and
business

a. Is a big joke c. Should be clearly

taught in school
b. Is only for
managerial positions d. Should be greater
interest of all
businessmen

ASSESSMENT ACTVITY
GROUP 1
• JOSEPH BENIDICT AGUSTIN
• HARNY BACANI
• VINCE BANAL
• KIMBERLY CATANGAY
• EUNICE GUEVARRA
• JASPER GUEVARRA
• JESTER OCAMPO