ETHICAL ISSUES IN WORKPLACE

AND THE CORPORATE WORLD

I.
CONFLIC
T OF
INTEREST
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 CONFLICT OF
INTEREST
 It is defined as an intentional and deliberate
action or decision that results in getting
personal gain, while adversely affecting the
company

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TYPES OF TYPICAL
CONFLICTS OF INTEREST:
1) SELF-DEALING
- e.g. using your official position to secure a contract for a private consulting company you
own
2) ACCEPTING BENEFITS
- e.g. you are the purchasing agent of your department & you accept a case of liquor from
a major supplier.
3) USING YOUR EMPLOYER’S PROPERTY FORPRIVATE ADVANTAGE
- e.g. stealing office supplies for home use; using software which is licensed to you
employer for private consulting work of your own.

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TYPES OF TYPICAL
CONFLICTS OF INTEREST:
4) OUTSIDE EMPLOYMENT OR MOONLIGHTING
- e.g. setting up a business that is direct competition with your employer; taking on so
many outside clients that you do not have the time & energy to devote to your regular
employer.
5) POST EMPLOYMENT
- e.g., person who resigns from a public or private employment goes into business in the
same area

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CONFLICT OF INTEREST
 Examples:
1. an employee who works for a company but also owns a
business similar in nature to his/her employer
2. an employee in charge of recruitment hires an relative who is
not qualified for the positions
3. employees who post negative comments against their employer
4. disclosing confidential to the employer’s competitor
5. an employee working part time in a competing company
6. getting consultancy work and providing advice to another
company engaged in a similar venture
7. an employee getting involved in a romantic relationship with
his superior
CONFLICT OF INTEREST
 It can be prevented by establishing formal ethical
standards and policies on unethical behavior. Violations
should be dealt with accordingly.
II.
INSIDER
TRADING
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INSIDER TRADING
• Refers to the significant facts that have not yet made public and are likely to affect stock prices

• SEC – Securities and Exchange Commission defines insider as:

• A) the issuer

• B) director or officer (or any performing similar functions) of, or a person controlling the issuer; gives or gave
him access to the material information about the issuer or the security that is not generally available to the
public
• C) A government employee, director, or officer of an exchange, clearing agency and/or self-regulatory
organization who has access to material information about an issuer or a security that is not generally available
to the public
• D) a person who learns such information by a communication from any of the foregoing insiders
Someone within the firm using
information for his or her private gain, MORAL
at the expense of the firm – conflict of
interest ARGUMEN
TS IN
The use of information by someone
INSIDER
within the firm to secure personal
advantage over those not in the firm –
TRADING
breach of loyalty
ETHICAL ISSUES RELATED TO
INSIDER TRADING
1. It violates fiduciary relationships between insiders and outside clients
2. It promotes greed and personal gain at the expense of others
3. It renders the transaction between two contracting parties as unfair.
III. THE PROBLEM OF JUST
WAGE
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FACTORS TO CONSIDER IN FORMULATION
OF FAIR WAGES

1. External Market Factors – these refer to the supply and demand to labor and the so-called economic conditions
and underemployment.
2. Laws and Regulations – workers should be paid in accordance with the laws and regulations issued by the
government. It requires that employers pay at least the minimum wage (NWPC; RTWPB)
3. Cost of Living – relates to the basic maintenance needs
4. Prevailing Industry Rate – paying the workers the average of what other companies are paying for the same job
5. Organizational factors – assessment on what type of industry the organization operates, the size of the company,
and the organization’s profitability to justify its ability to provide fair wages to its workers
6. Job Factors – the nature of the job itself entails the formulation of a just wage.
7. Individual Performances – productivity ratings affect the determination of wage/salary increases.
SOME ISSUES ON JUST WAGE
1. The minimum wage mandated by the government is not a guarantee of a just and fair wage
2. Organizations and businesses usually conclude that they are legally and morally right when
they fulfill their mutual agreement with the employees
3. Geographic differences hinder the formulation of a perfectly common definition of fair
wage.
4. Wage indexation to cost of living, where wage is automatically adjusted with the increases
of cost of living, is not usually met by majority of the employers. (insufficient financial
resources)
5. Companies have different interpretations of the justifiable pay for a certain job positions,
skill, and tasks.
IV. THE MORALITY OF
LABOR STRIKES 15

02/23/2024
 • Describes collective action undertaken by
group of workers in the form of a refusal to
perform work
• To describe all work stoppages, regardless of
the origin of the dispute

STRIKE • Workers go on strike for different reasons:

ACTION 1. For higher compensation

2. To improve the workplace
3. For shorter working days
4. To stop their wages from going down
5. For more benefits
6. They think their company has been unfair
TYPES OF STRIKES
1. Sit-down strike – workers show up to work, but refuse to work
2. General strike – affecting all areas of a labor force across many industries
3. Sympathy strike – initiated by workers in one industry and supported by workers in a
separate but related industry
4. Unfair labor practice strike – an action taken by an employer that is believed to be
inimical to the interest of an employee organization
5. Jurisdictional strike – refers to a concerted refusal to work undertaken by a union to assert
its members’ right to particular job assignments and to protest the assignment of disputed
work to members of another union or to unorganized workers.
TYPES OF STRIKES
6. Economic strike – is based on a demand for better wages or benefits than the employer
wants to provide
7. Wildcat strike – is a against the will of the leadership of the union, or without the union
8. Slow-down strike – is a form of work stoppage in which employees deliberately reduce
their individual production
9. Recognition strike – is a kind of strike forcing employers to recognize and deal with them
CONDITIONS FOR A STRIKE
TO BE MORAL
1. There is a sufficient and just reason for it. (laborers right to their job, decent conditions of
employment, protect rights against aggression)
2. The intended good results must be proportionate to the evil effects (as against the
employer, the strikers have no right to destroy his property; as against the man who take
the places of the strikers, no violence is lawful when the action of the strikers is justified by
their own needs)
3. The means employed are lawful. (pursue lawful good by lawful means)
V. WHISTLE-
BLOWING
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 • Is the disclosure by an employee of
WHISTLE- confidential information which relates to
some danger, fraud, or other illegal or
BLOWING unethical conduct connected with the
workplace, be it of the employer or of his
fellow employees.
WHISTLE-BLOWER
• Is someone in an organization who witnesses behavior by members that is either
contrary to the mission of the organization, or threatening to the public interest, and
who decides to speak out publicly about it.
TYPES OF WHISTLE-BLOWING
1. Internal whistle-blowing – occurs within the organization. It is going over the head of
immediate supervisors to inform higher management of the wrongdoing
2. External whistle-blowing – occurs outside the organization. It is revealing illegal and immoral
activities within the organization to outside individuals or groups such as media people, public
interests groups, regulatory body, or NGO’s
• Current – those who blow the whistle on present employees
• Alumni – those who blow the whistle on former employees
• Open – whistle-blower discloses identity
• Anonymous – whistle-blower does not disclose identity
FORMS OF RETALIATION TO
WHISTLE-BLOWERS
1. Lost their job or were forced to retire
2. Received negative job performance evaluation
3. Had work more closely monitored by supervisors
4. Were criticized or avoided by co-workers
5. Were blacklisted from getting another job in their field
EMOTIONAL EFFECTS ON THE
WHISTLE-BLOWERS
1. Severe depression or anxiety
2. Feelings of isolation or powerlessness
3. Distrust of others
4. Declining physical health
5. Severe financial decline
6. Problems with family relations
HOW TO BLOW THE WHISTLE
1. Talk to your family or close friends about your decision
2. Be alert and discreetly attempt to learn 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 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 and support staff.
6. Keep a careful record of events as they unfold.
HOW TO BLOW THE WHISTLE
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, journalists, and activists.
9. Invest on funds to obtain legal opinion from a competent lawyer
10. Always be on guard not to embellish your charges.
11. Engage in whistle-blowing initiatives on your own time and with your own resources, not
your employer’s
12. Do not wear your cynicism on your sleeves when working with the authorities
CONDITIONS FOR WHISTLE-BLOWING
TO BE MORALLY PERMISSIBLE
1. The company must be engage in illegal or immoral practice or about to release which does
a serious harm to individuals or to society in general
2. The employee should report his concern or complaint to his immediate superior
3. If no appropriate action is taken, the employee should take the matter up the managerial
line before he/she is obliged to go public
4. The employee must have a good reason to believe that by going to public, he will be able
to bring about necessary changes
CONDITIONS FOR WHISTLE-BLOWING
TO BE MORALLY PERMISSIBLE
5. It is done from the appropriate moral motive – as provided in the definition of whistle-
blowing
6. The whistle-blower, except in special circumstances, has exhausted all internal channels for
dissent before going to public
7. The whistle blower has compelling evidence that the inappropriate actions have been
ordered or have occurred
8. The whistle blower has acted after careful analysis of the danger. How serious is moral
violation? How immediate is the problem?
9. Can the whistle-blower point to a specific misconduct?
10. The whistle blowing has some chance of success.
VI. GIFT GIVING
AND BRIBERY
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GIFT-GIVING

• An act of extending
goodwill to an
individual in an
effort to share
something with
particular others
REASONS FOR GIFT-GIVING
1. To show appreciation for a favor received
2. To effectively establish goodwill with business partners
3. To advertise
4. To compete effectively against competitors
COMMON FORMS OF GIFT-
GIVING
1. Samples
2. Raffle coupons/certificates
3. Rebates/cash refunds
4. Padding expense accounts
5. Premiums
6. Prizes
7. Patronage awards (rewards)
8. Tie-up promotions
9. Allowance
10. Free goods
11. Tips
FACTORS IN DETERMINING THE
MORALITY OF GIFT-GIVING
1. Value of the gift – Is the gift nominal in value, or is it substantial enough to influence a
business decision? From the majority point of view, a valuable gift is definitely unethical
2. Purpose of the gift – as long as the gift is not intended or received as a bribe and remains
nominal, there does not appear to be any serious problem
3. Circumstances under the gift was given or received – during holiday season or
unattached to any special event or occasion; openly or secretly given?
4. Position between or relationship of the giver and receiver – superior - subordinate
relationship
FACTORS IN DETERMINING THE
MORALITY OF GIFT-GIVING
5. Acceptable business practice in the industry – could the act be considered acceptable in
this kind of business?
6. Company policy – If firms explicitly forbid the practice of giving and receiving gifts to its
customers, vendors or suppliers, associates, or corporate directors, then gift-giving would
be normally wrong.
7. Laws and regulations – certain federal, state, or local government institutions may impose
law that forbids accepting gifts from firms with which they do business. When these gift
transactions violate the law, they are clearly unacceptable.
BRIBERY

• A practice of giving remuneration for

performance of an act that is inconsistent with
the work contract or the nature of the work one
has been hired to perform.
Examples:
1. A motorist offered a certain amount of money
to a police officer in order not to be issued a
ticket for speeding
2. A citizen seeking paperwork or utility line
connections gave an expensive gift to a
functionary in exchange for a faster service.
3. A construction company shared a percentage
of its income to a civil servant in order to win
a contract
4. A narcotics smuggler bribed a judge to lessen
criminal penalties
REASONS WHY BRIBERY IS UNETHICAL

1. It is generally used as an instrument to gain personal or corporate advantage

2. It corrupts the concept of justice and equality
3. It produces cynicism and a general distrust of institutions
4. It destroys people’s trust in the integrity of professional services, of government and the
courts, of law enforcement, religion, and anything it touches
5. It treats people as commodities whose honor can be bought and sold
6. It tends to degrade the respect we owe to other human beings
VII. OFFICE
ROMANCE
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OFFICE ROMANCE
 Is defined as a relationship between 2 people who are
employed by the same organization.

 It is characterized by mutual attraction between the parties &

a desire for a personal, romantic relationship.

 Survey says that somewhere from 15 to 33 percent of the ees

at a given company have had office romances once in their
careers.
02/23/2024 39
BENEFITS OF OFFICE
ROMANCE:
1) Employees involved in a love relationship overcome rough times at work because of
mutual support & inspiration.

2) Employees tend to view work as fun even when pressures begin to pile up (romance
becomes the reason to keep their jobs).

3) Love & companionship in the office give the ees the relief & reason to overcome problems
that come along their way.

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BENEFITS OF OFFICE
ROMANCE:
4) A lot of people also believe that the workplace is the right venue to find the person to
marry & to nurture long-term relationships.
 A survey conducted by AMA (American Management Association) says that 49
percent of office romances have resulted to long-term relationship or marriage.

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DISADVANTAGES OF OFFICE
ROMANCE:
1) DAMAGED PROFESSIONAL REPUTATIONS
- If the involvement is between the boss & subordinates, then the circumstance becomes more complicated.
- Transfer, reassignment, performance review, relocation, career advancement & reprimands, ee’s opinions &
perceptions can be very difficult & awkward.
- Integrity will be placed in questionable situation within the corners of workstations.

2) DISTURBED CO-WORKERS
- The biggest concern is the reaction of co-workers & if they will support the relationship or not.
- They will have an idea that favoritism, unfair treatment, & bias may arise from the relationship.

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DISADVANTAGES OF OFFICE
ROMANCE:
3) CHANGES IN PRODUCTIVITY
- The productivity of the people involved in the romance & that of even the spectators of the relationship at stake.
- The time spent on gossiping, attempts to ruin & sabotage the relationship, complaints about the relationship affects ee’s
productivity.
- It also includes the aftermath of an office romance that did not work out.

4) DATING THE BOSS

- The most disturbing type of romance is one that involves the supervisor or manager & a subordinate.
- It is more prone to create a hostile environment among other subordinates, especially if it goes out-of-hand resulting to sexual
harassment case.
- Decision & actions resulting to ee’s careers will be placed in scrutiny & integrity will be questioned.

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DISADVANTAGES OF OFFICE
ROMANCE:
5) EXTRAMARITAL AFFAIRS
- These are obviously risky & subject o moral issues.
- Broken homes & divorce are increasing & one reason points to office romances.
- Survey says that more than half of married men & almost more than one-third of married
women attest to falling for adulterous affairs

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ETHICAL ISSUES IN OFFICE
ROMANCE:
1) Interventions
2) Legal / Ethical Consideration
3) Sexual Harassment
 One may consider flirting acceptable which may eventually lead to a romance,
while another may consider it offensive & therefore, a harassment.

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 46

VIII.
SEXUAL
HARASSME
NT
 SEXUAL
HARASSMENT
 RA 7877

 UNWELCOME sexual advances, requests for sexual favors, & other

verbal or physical conduct of a sexual nature constitutes sexual
harassment when submission to or rejection of this conduct explicitly or
implicitly affects an individual’s employment, unreasonably interferes
with an individual’s work performance, or creates an intimidating, hostile
or offensive work environment.

 IS POWER NOT GENDER (Disclosure – Michael Douglas &

Demi Moore)

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 1) “QUID PRO QUO” – means
“this for that” (something for something)
- Requiring a sexual favor or interaction

TYPES
as a condition of employment or in
exchange for an employment benefit
(promotion, transfer, pay raise).
- - Ex: “Go to bed with me & you will get

OF SH
that promotion you want”.

2) HOSTILE
ENVIRONMENT Type
- abuses include verbal, physical, & visual
conduct that creates an intimidating,
offensive, or hostile environment in the
workplace that interferes with work
performance.

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HOSTILE ENVIRONMENT
TYPE:
 Unwanted touching, patting, pinching or brushing up against a person.

 Comments about your body, leering, wolf-whistling, insults of a sexual nature, persistently pestering for a
date
 Displaying or circulating pornographic pictures with the intention of harassing someone / posting of
explicitly sexual natures
 Workplace blackmail – i.e. suggestions that sexual favors may further your career (or refusal may hinder it)

 Green jokes

 Obscene phonecalls / letters

 Sexual propositions

 Suggestive looks

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How to prevent SH

 KNOW THE HARASSERS IN THE COMPANY, GET

AWAY FROM THEM

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 How to stop SH

1) Tell the harasser to stop in a calm but loud voice

2) Leave the place immediately
3) Report the incident to the proper authorities immediately
4) Write down the details and circumstances as accurately
as possible to aid further investigation

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 Cortez, F. G. (2016). Business Ethics and Social
Responsibility. Quezon City: Vibal Group, Inc.
 Roa, F. (2011). Business Ethics and Social
Responsibility. Quezon City: Rex Book Store
 Zarate, C. (2018). Business Ethics and Social
Responsibility for Senior High School. Quezon City:
C & E Publishing, Inc.
 Google.com - pictures