ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
MODULE 5
BUSINESS ETHICS AND ETHICAL DECISION-MAKING

Intended Learning Outcomes:

• Analyze the legal and regulatory frameworks governing Corporate Social
Responsibility (CSR) and assess their implications for business practices.
• Evaluate the key provisions of the Philippine Code of Corporate Governance
and their impact on corporate accountability and transparency.
• Investigate the interplay between political factors and corporate governance,
identifying how political issues influence governance structures and practices.

LESSON 1: ETHICS IN BUSINESS

Business and Ethics are always interrelated. Ethics guides us we are doing the right
Thing. In the conduct of our business, we need to follow ethical standards of the
company.

What is Ethics?

Ethics is derived from the Greek word “etikos” which means

having to do with character. The Latin word ethos is “mos”.
That is why we known Ethics as the Moral Science or Moral
Philosophy. It refers to the theory of morality conduct. In
addition, it is a branch of concerned with human character
and conduct. It is the discipline dealing with “what is good
and bad” and with moral duty and obligation. Ethics is the
embodiment of moral values, which describes what, is “right “and what is “wrong” in
human behavior and what “ought to be”.
The goal of Ethics as a science is to investigate the nature of the human act or human
conduct. But the formal object of Ethics, meaning its point of view in studying the
human conduct, is right morality or rectitude of human acts.
Ethics is a philosophical science that studies the morality of human acts. As a science,
ethics is concerned with the analysis of the nature of the human conduct from the point
of view of morality.

Definitions of Ethics

• Ethics is the practical science of the morality of human acts.

• Ethics is the study of human conduct from the standpoint of morality.
• Ethics is a normative science based on reason which studies human conduct
and provide norms for its natural integrity and honesty.
• Ethics is a practical science that guides us in our actions that we may live rightly
and well.
• Ethics is the science which lays down the principles of right living.
• Ethics is the science of human acts with reference to right and wrong.
• Ethics is the scientific inquiry into the principles of morality.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
Business Ethics

Business is an integral part of society, deeply woven into various social structures,
with its actions influencing numerous aspects of daily life. Through complex
interactions with institutions and individuals, businesses make decisions that create
ripple effects throughout society. By applying a moral perspective to these actions,
businesses can ensure ethical decision-making that prioritizes societal well-being.
However, when business ethics are disregarded, practices like exploitation and
environmental harm threaten society’s long-term health. Business ethics thus serves
as a framework for distinguishing right from wrong within the business realm,
reinforcing the notion that business activities are not only economic but also social and
moral undertakings. Recognizing business as a significant human endeavor
encourages a comprehensive understanding of its impact, underscoring the need for
ethics as a foundation in sustaining both businesses and the society they serve.

Business ethics refers to the moral principles and values that guide behavior and
decision-making in business. It involves understanding right and wrong actions in the
workplace and promoting fair treatment of all stakeholders.

Business ethics establishes trust, fosters a positive workplace culture, and ensures
sustainable practices. It impacts a company’s reputation, stakeholder relationships,
and long-term success.

Key Components:
▪ Integrity: Honesty and truthfulness in dealings.
▪ Transparency: Openness in communication and decision-
making.
▪ Fairness: Equitable treatment of all stakeholders.
▪ Respect: Valuing individual dignity and rights.
▪ Responsibility: Considering the social and environmental impact
of business decisions.

Business ethics is a branch of philosophy that examines moral principles in business.

It applies ethical principles to interactions with stakeholders, corporate governance,
social responsibility, and business decisions.

Historical Evolution of Business Ethics

Business ethics has evolved alongside societal changes, economic shifts, and ethical
perspectives. Key milestones and movements have influenced business ethics, from
ancient trade practices to today’s complex global environment. Understanding this
history provides context for addressing current challenges and opportunities.

Comparison: General Ethics vs. Business Ethics

While general ethics examines morality in a broad range of contexts, business

ethics focuses specifically on ethical concerns within business. It establishes a
framework for individuals and organizations to make morally sound decisions,
emphasizing socially responsible conduct.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
Three Kinds of Ethical Issues

1. Systemic Ethical Issues

➢ Systemic issues arise from broader structures, policies, or practices within
industries or economic systems, deeply embedded in legal or cultural
frameworks.
o Examples:
▪ Income Inequality: Disparities in income raise social justice
concerns.
▪ Environmental Impact: Industries contributing to environmental
harm raise ethical concerns.

Addressing systemic issues often requires changes in economic structures,

regulations, and industry practices to create equitable and sustainable environments.

2. Corporate Ethical Issues

➢ Corporate issues relate to the actions and responsibilities of specific
companies, impacting employees, customers, communities, and the
environment.
o Examples:
▪ Employee Treatment: Ethical issues concerning fair wages and
working conditions.
▪ Product Safety: Companies’ responsibility for product safety and
quality.
Corporations should establish ethical standards to guide their actions, with a focus on
CSR, governance, and responsible business practices.

3. Individual Ethical Issues

➢ Individual ethical issues involve personal choices made by employees,
managers, and executives, affecting professional integrity and ethics.
o Examples:
▪ Whistleblowing: Reporting unethical or illegal activities within
the organization.
▪ Conflicts of Interest: When personal interests interfere with
professional responsibilities.
Individual ethics is shaped by personal values, integrity, and ethical standards.
Organizations can support ethical behavior through training, codes of conduct, and
fostering an ethical culture.

Understanding business ethics forms the foundation for ethical behavior in a complex
business world. Recognizing the intersection of morality and decision-making
highlights the importance of ethics in navigating today’s evolving business landscape.
Further study in business ethics will prepare learners for real-world scenarios,
equipping them with skills for ethical leadership and responsible decision-making.

THEORIES OR PHILOSOPHICAL APPROACHES TO THE STUDY OF ETHICS

1. Utilitarian Ethics (Consequence-Based Approach)

Proponents: Jeremy Bentham and John Stuart Mill

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5

Utilitarian ethics, rooted in the philosophy of consequentialism, argues that the morality
of an action depends on its outcomes. This ethical approach strives to maximize
happiness or pleasure and reduce suffering or pain, guiding decision-makers to act in
ways that provide the greatest good for the greatest number of people.

Core Concepts:
• Utilitarian ethics suggests that actions should be evaluated based on the
benefits and costs they produce, aiming to achieve the maximum positive
impact on the majority.
• This approach views actions as moral if they lead to positive results, even if the
motives behind them are irrelevant.
• The theory emphasizes that an action’s “rightness” depends solely on its
consequences, not the intention behind it.

Application in Business Decision-Making

In a business context, utilitarian principles can guide decision-makers in creating

policies and making choices that maximize overall happiness and benefit a broad
range of stakeholders. Here are examples of how this theory might influence business
decisions:

1. Product Pricing
▪ A company considers raising product prices to boost profits.
Utilitarian Analysis: The company weighs increased profits against potential
customer dissatisfaction. If the price increase allows the company to improve its
offerings, benefiting customers in the long term, it may be considered ethical.

2. Employee Policies
▪ A company debates implementing flexible work hours.
Utilitarian Analysis: Flexible hours could improve job satisfaction and work-life
balance, potentially benefiting many employees. If this leads to overall happiness, the
decision aligns with utilitarian ethics.

3. Environmental Practices
▪ A manufacturer considers adopting eco-friendly production methods.
Utilitarian Analysis: If reducing environmental harm promotes societal well-being
and minimizes pollution, this shift aligns with the utilitarian goal of maximizing positive
impact.

4. Corporate Social Responsibility (CSR)

▪ A corporation evaluates investing in community projects.
Utilitarian Analysis: If these projects enhance the community’s well-being, even at a
cost to the company, this can be morally justified under utilitarianism.

5. Workforce Reduction (Layoffs)

▪ A company contemplates layoffs due to financial hardship.
Utilitarian Analysis: If layoffs ensure the company’s survival and protect the majority
of jobs, the action might be justified. However, minimizing the harm to affected
employees should also be a consideration.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
6. Marketing and Advertising
▪ A company plans an advertising campaign exaggerating product benefit.
Utilitarian Analysis: If the minor exaggeration leads to increased customer
satisfaction, it may be acceptable. However, if it leads to dissatisfaction, it may be
unethical.

In each scenario, a utilitarian analysis involves assessing the consequences for all
stakeholders, aiming for decisions that maximize overall happiness and well-being.

Additional Examples:

1. Outsourcing Jobs to Lower-Cost Countries

▪ A company considers outsourcing to reduce labor costs, potentially causing
local job loss.
Utilitarian Perspective: The decision would weigh the happiness gained (e.g., lower
consumer prices, company growth) against the potential suffering (e.g., local job
losses). If the overall benefits outweigh the negatives, outsourcing may be justifiable.

2. Releasing a Drug with Side Effects

▪ A pharmaceutical company considers releasing a moderately effective drug
with side effects.
Utilitarian Perspective: If the drug improves lives for a large number of people,
despite side effects, the decision may be ethical from a utilitarian view.

Key Considerations and Challenges

1. Quantifying Happiness and Suffering
Determining and comparing happiness or suffering quantitatively is difficult and
subjective.
2. Long-Term vs. Short-Term Consequences
It’s important to consider both immediate and future impacts, as some actions
may have delayed negative consequences.
3. Distribution of Benefits and Burdens
Utilitarianism requires a fair distribution of both benefits and burdens across all
stakeholders.

Criticisms:
1. Rights and Justice Concerns
Critics argue that utilitarianism can overlook individual rights in favor of
collective benefits, potentially sacrificing justice.
2. Difficulty in Measuring Happiness
Accurately measuring and comparing happiness and suffering presents
practical challenges.

Utilitarian ethics provides a framework for evaluating actions based on their impact on
overall happiness and suffering. While it is useful in decision-making, especially in
complex business contexts, it requires careful consideration of all consequences and
a commitment to promoting the greatest overall well-being.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
3. Deontological Ethics (Duty-Based Approach)
Associated Philosopher: Immanuel Kant

Deontological ethics, or duty-based morality, emphasizes the importance of adhering

to moral rules or duties. Unlike consequentialist theories like utilitarianism, deontology
focuses on the inherent rightness or wrongness of actions themselves, regardless of
their outcomes. In this view, certain actions are morally required or forbidden based
on a set of ethical principles.

Core Concepts:
• Deontological ethics holds that individuals have specific duties or obligations to
act in morally correct ways.
• Certain actions are inherently right or wrong, regardless of the consequences.
For instance, telling the truth is considered morally required even if it results in
negative consequences.
• Deontology values adherence to principles like honesty, justice, and fairness,
even when these principles may lead to outcomes that are not necessarily
beneficial.

Application in Business Decision-Making

In business, deontological ethics can provide guidance on actions that should be taken
based on duty and principles, rather than on the results they may produce. Here are
some examples of how deontological ethics might be applied in a business context:

1. Truthful Advertising
▪ A company is launching an advertising campaign for a new product and is
deciding whether to accurately represent the product's features.
Deontological Analysis: A duty-based approach would prioritize honesty,
emphasizing that misleading customers is inherently wrong. Therefore, the company
has a moral obligation to present truthful information, even if it means potentially lower
sales.

2. Employee Treatment
▪ A manager considers disciplining an employee for a minor infraction that may
impact their performance review.
Deontological Analysis: Deontology would focus on fairness and justice, suggesting
that actions taken against the employee should be proportionate to the offense. If the
infraction is minor, a duty-based approach may argue against punitive action and
instead favor fair treatment.

3. Environmental Stewardship
▪ A company can cut costs by disposing of waste in a way that harms the
environment.
Deontological Analysis: Deontological ethics would emphasize the duty to protect
the environment. Regardless of cost savings, the company has a moral responsibility
to engage in environmentally responsible practices, making harmful disposal ethically
unacceptable.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
4. Respecting Contracts
▪ Facing financial difficulties, a business considers breaking its contracts with
suppliers.
Deontological Analysis: A deontological approach would highlight the duty to honor
commitments. Breaking contracts would be seen as inherently wrong, as it violates the
moral obligation to uphold agreements and undermines trustworthiness.

5. Employee Privacy
▪ A company is considering installing monitoring software to track employees’
activities during work hours.
Deontological Analysis: A duty-based approach would underscore the importance
of respecting employees' privacy. Even if monitoring could improve productivity, it
could be considered morally wrong as it violates the duty to respect individuals' right
to privacy.

6. Fair Compensation
▪ A company is setting executive salaries and is considering paying executives
significantly higher than other employees.
Deontological Analysis: From a deontological perspective, the duty to ensure
fairness may lead to advocating for more equitable compensation structures. Overly
high executive pay might be considered unethical if it is seen as unjust or unfair to
lower-level employees.

In each of these scenarios, deontological ethics directs decision-making based on

whether actions themselves are morally right or wrong, regardless of their results. The
primary focus is on fulfilling ethical obligations and adhering to moral principles.

Additional Examples:
1. Whistleblowing on Unethical Practices
▪ An employee discovers a colleague engaged in practices that could harm the
company.
Deontological Analysis: Whistleblowing could be viewed as a moral duty to uphold
honesty and integrity, regardless of any potential backlash or negative consequences
for the whistleblower or the company.

2. Fulfilling Promises to Clients

▪ A company promises a client to deliver a product by a certain date but faces
unexpected delays.
Deontological Analysis: Fulfilling this promise, even if it leads to short-term
difficulties, is seen as a moral duty. The company is bound by its commitment to the
client, prioritizing duty over the convenience of postponing delivery.

Key Considerations and Challenges:

1. Deontological ethics can be rigid, sometimes requiring actions that may lead to
less desirable outcomes.
2. In cases where duties conflict (e.g., truth-telling vs. protecting others),
deontological ethics can be challenging to apply.
3. This approach emphasizes intent rather than consequences, which may not
always account for practical results.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
Criticisms:
1. Critics argue that a strict adherence to duty may lead to rigid, impractical
decisions that ignore potential harm.
2. When two moral duties conflict, deontological ethics offers limited guidance on
prioritizing one duty over another.

Deontological ethics provides a framework for making moral decisions based on

adherence to principles rather than outcomes. This approach values intent, honesty,
and fairness, guiding individuals and organizations to act in ways that align with their
ethical obligations, even when doing so may not lead to the best results in terms of
happiness or utility.

3. Virtue Ethics (Character-Based Approach)

Associated Philosopher: Aristotle

Virtue ethics is rooted in the development of a morally good character. Rather than
focusing solely on the consequences of actions or adherence to rules, virtue ethics
emphasizes cultivating virtuous traits, such as honesty, courage, integrity, and
compassion. In this approach, ethical behavior naturally arises from having a virtuous
character.

Core Concepts:
• Virtue ethics encourages individuals to develop qualities that contribute to moral
excellence, shaping them into good people whose actions align with ethical
values.
• Unlike other ethical theories, virtue ethics is less prescriptive about specific
actions. Instead, it emphasizes the kind of person one should strive to be, with
an emphasis on character traits.
• Aristotle's concept of the "Golden Mean" suggests that virtues often lie between
two extremes (e.g., courage is the balance between recklessness and
cowardice).

Application in Business Decision-Making:

In business, virtue ethics guides individuals and organizations to make decisions that
foster virtuous character traits, building a culture of integrity, responsibility, and
empathy. Here are some examples of virtue ethics applied in a business context:

1. Leadership Integrity
▪ A CEO must decide whether to disclose an unexpected financial loss to
stakeholders.
Virtue Ethics Analysis: The virtue of honesty would encourage transparency. A CEO
guided by virtue ethics would disclose the financial setback to stakeholders, valuing
honesty as a core leadership trait and essential to building trust.

2. Employee Empowerment
▪ A manager considers involving employees in decision-making.
Virtue Ethics Analysis: Virtues like fairness and respect may inspire the manager to
empower employees. Involving them fosters a collaborative environment that values
diverse perspectives, enhancing workplace morale and strengthening mutual respect.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5

3. Supplier Relationships
▪ A company has an opportunity to renegotiate supplier contracts to cut costs.
Virtue Ethics Analysis: Virtue ethics would emphasize virtues such as fairness and
loyalty. Rather than prioritizing cost savings at any expense, a company guided by
virtue ethics might seek fair negotiations, honoring commitments and fostering trust-
based relationships with suppliers.

4. Environmental Responsibility
▪ A manufacturing company considers investing in sustainable practices.
Virtue Ethics Analysis: Virtue ethics would support virtues like environmental
stewardship and responsibility. Investing in sustainable practices demonstrates a
commitment to long-term well-being, reflecting a character aligned with care for the
planet.

5. Customer Relationships
▪ A sales representative is considering whether to inform a customer about the
limitations of a product.
Virtue Ethics Analysis: Guided by virtues of honesty and integrity, a sales
representative would prioritize truthfulness in communicating product limitations,
fostering trust and ethical customer relationships.

6. Team Collaboration
▪ A project manager is deciding how best to encourage collaboration among team
members.
Virtue Ethics Analysis: Virtues like respect, cooperation, and patience would shape
the manager’s approach, fostering a team environment where collaboration and
respect are valued and supported, contributing to long-term positive team dynamics.

Additional Examples:

1. Honesty in Disclosing Product Side Effects

▪ An executive must decide whether to disclose information about potential
product side effects.
Virtue Ethics Analysis: The virtues of honesty and transparency would guide the
executive’s decision, fostering a trustworthy character and prioritizing consumer safety
over short-term profit.

2. Conflict Resolution within Teams

▪ A manager is tasked with addressing conflicts within the team.
Virtue Ethics Analysis: A virtue ethics approach would emphasize empathy, fairness,
and patience in resolving the issue. This builds a positive team culture and encourages
team members to embody virtues of respect and understanding.

Key Considerations and Challenges

1. Since different cultures and contexts may define virtues differently, applying
virtue ethics in a universally applicable way can be challenging.
2. Cultivating virtues like honesty or fairness may sometimes appear to conflict
with profit-driven business objectives, leading to potential ethical dilemmas.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
3. Unlike rule-based or outcome-based ethics, virtue ethics places significant
importance on individual growth, which may not provide clear guidance in
urgent decision-making scenarios.

Criticisms:
1. Virtue ethics may be seen as less practical in specific situations, as it lacks
precise rules or directives.
2. The perception of virtues may vary across cultures, making it difficult to
determine which virtues are universally applicable.

Virtue ethics provides a framework for ethical behavior that focuses on character
development, encouraging individuals and organizations to foster qualities like
honesty, fairness, and integrity. By guiding ethical behavior from within, virtue ethics
aims to build trust, accountability, and moral excellence in both personal and
professional settings. This approach inspires individuals to pursue personal growth
and moral integrity, positively impacting their organization and society at large.

3. Ethical Relativism (Culture-Based Approach)

Ethical relativism suggests that ethical principles are culturally determined, meaning
that what is considered morally right or wrong varies across cultures. This approach
asserts that there is no universal or absolute moral truth, as ethical norms depend on
cultural contexts.

Core Concepts:
• Ethical relativism acknowledges that cultures have unique values, traditions,
and social expectations, which influence what is considered ethical.
• Under ethical relativism, there are no fixed ethical standards; instead, each
culture's norms are seen as valid within its own context.
• Ethical relativism promotes understanding and respecting different cultural
beliefs, especially in global or cross-cultural environments.

Application in Business Decision-Making:

In business, ethical relativism recognizes the importance of adapting practices and

policies to respect cultural norms. Here are examples of how ethical relativism might
guide decision-making in diverse cultural settings:

1. Gift-Giving Practices
▪ A multinational company aims to build business relationships in various
countries and encounters diverse attitudes towards gift-giving.
Ethical Relativism Analysis: Ethical relativism acknowledges that gift-giving
customs vary widely. In some cultures, gifts are a norm in relationship-building, while
in others, they may be perceived as inappropriate or even bribery. The company could
adapt its approach based on each culture’s practices, giving gifts where it is customary
and avoiding it where it is seen as unethical.

2. Employee Dress Codes

▪ A global company needs to establish a dress code policy across offices in
different regions.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
Ethical Relativism Analysis: Ethical relativism accepts that cultural norms for
professional attire differ significantly. In some regions, formal attire might be expected,
while in others, more casual dress is acceptable. The company might design flexible
dress codes to respect each location’s norms and expectations.

3. Work-Life Balance Policies

▪ A company is considering implementing flexible working hours or remote work
options in various regions.
Ethical Relativism Analysis: Ethical relativism recognizes that cultural attitudes
towards work-life balance can vary. In cultures where long hours are valued, work-life
balance policies may be less embraced, while other cultures might prioritize personal
time. The company might tailor its policies to reflect each region's cultural attitudes
toward work and personal life.

4. Bribery and Gift-Giving to Officials

▪ A company operates in a country where giving small gifts to government
officials is a common practice.
Ethical Relativism Analysis: Ethical relativism would acknowledge that in some
countries, this practice is customary and accepted, whereas, in others, it is considered
bribery. The company may need to balance respecting local customs with adhering to
anti-bribery laws and ethical standards, potentially modifying practices depending on
cultural expectations while maintaining legal compliance.

5. Advertising Standards
▪ A company is creating a global advertising campaign and must consider cultural
sensitivities.
Ethical Relativism Analysis: Ethical relativism accepts that what is deemed
appropriate in advertising varies across cultures. Certain imagery, language, or humor
may be acceptable in one culture but offensive in another. The company might
customize its advertisements to align with each culture’s norms, ensuring respect and
sensitivity.

6. Labor Practices
▪ A multinational corporation is setting labor policies in different countries.
Ethical Relativism Analysis: Ethical relativism acknowledges that labor practices,
like working hours, benefits, and conditions, vary by cultural and legal standards. The
company may adjust its policies to match local practices, aiming to be culturally
respectful while adhering to local labor laws.

Additional Examples:
1. Gift-Giving as Relationship-Building vs. Bribery
▪ In one culture, gift-giving is a customary way to build business relationships; in
another, it might be viewed as unethical.
Ethical Relativism Analysis: The perception of gift-giving differs across cultures,
illustrating how ethical judgments are influenced by cultural norms.

2. Gender Roles and Equality

▪ Cultural norms about gender roles vary widely, impacting workplace
expectations.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
Ethical Relativism Analysis: Ethical relativism acknowledges that each culture's
views on gender roles and equality are culturally influenced. Companies may navigate
these views by respecting local customs while promoting inclusive values in
accordance with their global standards.

Key Considerations and Challenges:

1. Without universal moral standards, ethical relativism can sometimes be used
to justify practices considered unethical by broader societal standards (e.g.,
child labor).
2. Global companies may struggle to align cultural relativism with universal ethical
commitments, such as respecting human rights.
3. Ethical relativism can make it difficult to maintain consistent policies across
locations, as practices may vary by culture.

Criticisms:
1. Ethical relativism is criticized for not providing a clear moral foundation,
potentially allowing harmful practices to be justified as "culturally acceptable."
2. Ethical relativism may clash with universal standards on issues like human
rights, where certain practices might be harmful despite being culturally
accepted.

Ethical relativism emphasizes understanding and respecting cultural differences in

ethical decision-making, which is essential for global businesses operating across
diverse regions. By adapting practices to align with local norms, companies can show
respect for cultural contexts, though this approach can be challenging when balancing
global ethical commitments. Ethical relativism, alongside other ethical approaches like
utilitarianism, deontology, and virtue ethics, provides a useful perspective,
encouraging businesses to consider cultural diversity in their decision-making
processes.

RIGHTS AND MORAL RESPONSIBILITY

1. Right

➢ Rights are entitlements or claims that individuals have, rooted in moral

principles or legal frameworks, which define what individuals are morally or
legally allowed to do, have, or expect from others.

Types of Rights:
1. Negative Rights
These are rights to non-interference, where others have a duty not to interfere.
For example, the right to freedom of speech implies others should not hinder
one’s expression.
2. Positive Rights
These rights involve an obligation from others to provide something, such as
the right to education, where society or institutions are expected to facilitate
access to learning.

Basis for Rights:

1. Natural Rights

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
These are inherent rights seen as universal for all humans, often associated
with life, liberty, and property.
2. Legal Rights
Rights established and enforced by legal systems, such as property or
contractual rights.

Rights in Business Context:

• Businesses must respect the rights of individuals or groups while achieving their
goals, which often raises ethical concerns.
Example - Privacy Rights in Data Handling: Companies that collect customer data
have an ethical duty to protect that information. When a social media platform sells
user data without consent, it violates the users’ right to privacy.

3. Moral Responsibility
➢ Moral responsibility refers to the accountability individuals or entities have for
their actions and their consequences, guided by ethical principles and societal
expectations.

Moral Responsibility in Business:

• Businesses have a duty to act responsibly towards stakeholders, society, and
the environment. Ethical decision-making should consider the broader impact
of business activities.
Example - Environmental Impact: An industrial plant polluting a local river has a
moral responsibility to prevent environmental harm and adopt sustainable practices.

Rights and moral responsibility are foundational in ethical considerations and require
careful balance in decision-making, especially in business. Respecting rights means
honoring duties owed to others, while moral responsibility entails accountability for
one’s actions. In practice, balancing rights and responsibilities involves evaluating the
context, adhering to ethical principles, and considering the broader impact on society
and stakeholders.

FACTORS INFLUENCING BUSINESS ETHICS

Business ethics is influenced by a variety of factors, both internal and external to an

organization. The ethical climate within a business is shaped by the values and
priorities of its leaders, the organizational culture, and the broader societal context.

Here are some key factors that influence business ethics:

1. Leadership
• The ethical values and behavior of top management have a significant
impact on the entire organization. Leaders who prioritize and model
ethical behavior set the tone for the rest of the company.
2. Organizational Culture
• The prevailing ethical climate within an organization influences the
behavior of its employees. A culture that encourages openness,
honesty, and integrity fosters ethical decision-making.
3. Corporate Governance
• The effectiveness of corporate governance mechanisms, including the
role of boards of directors, can influence ethical practices. Transparent

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
and accountable governance structures are essential for maintaining
ethical standards.
4. External Stakeholders
• Customer preferences and expectations can influence ethical decisions,
especially in industries where consumer trust is crucial.
• Ethical considerations extend to relationships with suppliers and
business partners. Fair and ethical practices in these relationships
contribute to overall business ethics.
5. Legal and Regulatory Environment
• Adherence to laws and regulations is a fundamental aspect of business
ethics. Legal requirements provide a baseline for ethical conduct.
6. Social Responsibility
• Organizations are increasingly expected to engage in socially
responsible practices, addressing environmental, social, and ethical
concerns beyond legal obligations.
7. Employee Education and Training
• Providing employees with ethics training helps them understand the
ethical standards of the organization and equips them to make ethical
decisions in their roles.
8. Workplace Policies
• A clear and comprehensive code of conduct establishes the ethical
expectations for employees and helps guide their behavior.
9. Market Competition
• The competitive landscape can influence ethical decision-making.
Companies may face pressure to cut corners or compromise ethical
standards to remain competitive.
10. Globalization
• In a global business environment, companies need to navigate diverse
cultural norms and values. Understanding and respecting these cultural
differences are crucial for maintaining ethical practices.
11. Technological Advances
• The use of technology and data raises ethical considerations, such as
privacy concerns and cybersecurity issues. Businesses must navigate
these challenges ethically.
12. Economic Pressures
• Economic pressures, such as the pursuit of profits, can sometimes lead
to ethical dilemmas. Balancing financial goals with ethical considerations
is essential.

Understanding and managing these factors is critical for businesses aiming to cultivate
and maintain a strong ethical foundation. Companies that prioritize ethical behavior
tend to build trust with stakeholders and enhance their long-term sustainability.

BENEFITS OF BUSINESS ETHICS

1) Goodwill of the People.

People like to build long term relationships with organizations that performs their tasks
on the principle of ethics. Moreover, strong public image leads to continual loyalty and
attracts new investors.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
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2) Prevention from Legal Actions.
By implementing ethical practices, organizations are automatically prevented from
illegal and objectionable activities as business ethics instruct to avoid all that is wrong
and evil. Such organization have no fear of legal action and social boycott.

3) Business Ethics Have Substantially Improved the Society.

Establishment of anti-trust laws, unions and other regulatory bodies has contributed
to the development of the society.

4) Ethical Practices Create Strong Public Image.

Organization with strong ethical practices will possess a strong image among the
public. This image would lead to strong loyalty.

5) Ethical Practices Support Employees’ Growth.

Ethics in the workplace help employee face reality, both good and bad in the
organization.

6) Strong Teamwork and High Productivity.

Constant change and dialogue will ensure the employee matches to the value of the
organization.

7) Build Trust with the Key Shareholders.

Implementation of ethics helps organization to gain trust of their shareholders.

8) High Profit.
Reputation of the company and its share prices also increase if the company act upon
Corporate Social Responsibility (CSR).

LESSON II. BUILDING AN ETHICAL ORGANIZATION

Building an ethical organization involves establishing a culture and framework that

prioritizes ethical behavior, integrity, and responsible business practices. Key
components of creating an ethical organization include developing a strong ethical
leadership, fostering a supportive ethical culture, and implementing clear guidelines
through a Code of Ethics and Code of Conduct.

Ethical Leadership
➢ Ethical leadership involves leaders who demonstrate and promote ethical
behavior, integrity, and accountability. Leaders set the tone for the
organization's ethical culture.
• Lead by example, making ethical decisions transparently.
• Encourage open communication and ethical discussions.
• Uphold organizational values and principles.

Ethical Culture
➢ Ethical culture refers to the shared values, beliefs, and norms within an
organization that guide behavior and decision-making.
• Promote a culture of trust and transparency.
• Recognize and reward ethical behavior.

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• Encourage employees to speak up about ethical concerns without fear
of retaliation.

Benefits of Ethical Organization:

• Enhanced reputation and trust.
• Increased employee morale and engagement.
• Improved relationships with stakeholders.
• Reduced legal and financial risks.

Building an ethical organization requires a holistic approach, incorporating ethical

leadership, a supportive ethical culture, and clear guidelines through Codes of Ethics
and Conduct. These elements work together to create an environment where ethical
behavior is not only expected but also valued and reinforced.

CHARACTERISTICS OF ETHICAL ORGANIZATION

1) Ethical Organizations are based on the principles of fairness.

2) All stakeholders are treated equally without any discrimination.
3) Benefit of stakeholder in given precedence over own interest.
4) There is a clear communication in an ethical organization.
5) What is to be done, how it is to be done is clearly stated.
6) No bureaucracy.
7) Minimum bureaucracy and high control help in implementing business ethics.
8) Compliance with applicable laws.

LESSON III. CODE OF ETHICS AND CODE OF DISCIPLINE (CONDUCT)

Code of Ethics
➢ A Code of Ethics is a document that outlines the ethical principles and values
that guide the behavior of individuals within an organization. It serves as a
foundation for ethical decision-making.
➢ Primarily focuses on overarching principles and values, guiding the ethical
decision-making process. It sets the tone for the organization's ethical culture
and helps employees understand the broader ethical framework.
• Clearly articulate organizational values and expectations.
• Provide guidance on ethical dilemmas and potential conflicts of interest.
• Establish consequences for unethical behavior.

Code of Conduct (Discipline)

➢ A Code of Conduct is a set of rules and guidelines that outline expected
behavior and standards of conduct for employees. It includes specific details
on how employees should behave in various situations.
➢ Focuses on specific behaviors and actions expected from employees. It
provides a detailed set of rules and guidelines for day-to-day conduct, often
including sections on workplace behavior, conflicts of interest, and compliance
with laws and regulations.

• Detail acceptable and unacceptable behaviors.

• Specify disciplinary measures for code violations.

Course Code: MGT 101

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• Provide guidance on reporting and addressing violations.

Implementing Codes Effectively:

1. Communication
• Clearly communicate the contents of the Code of Ethics and Code of
Conduct to all employees.
• Conduct training sessions to ensure understanding.
2. Integration into Policies
• Integrate ethical considerations into various policies and procedures
within the organization.
3. Regular Review and Update
• Periodically review and update the Codes to ensure they remain relevant
and aligned with evolving ethical standards.
4. Leadership Support
• Obtain active support from top leadership to reinforce the importance of
ethical behavior.
5. Whistleblower Protection
• Establish mechanisms for employees to report unethical behavior
without fear of retaliation.
6. Consistent Enforcement
• Ensure consistent enforcement of the Codes, applying disciplinary
measures when necessary.

LESSON IV: ETHICAL DECISION-MAKING

Ethical Decision-Making

➢ Ethical decision-making involves the process of evaluating and choosing

among alternatives in a manner consistent with ethical principles and values. It
requires considering the impact of decisions on various stakeholders and
aligning actions with moral standards.

An ethical dilemma refers to a situation in which a person faces conflicting moral

principles or ethical considerations, making it challenging to make a decision that
aligns with one's values. These dilemmas often involve competing interests, and there
may not be a clear-cut or obvious "right" choice. Ethical dilemmas are common in
various aspects of life, including the workplace, healthcare, and personal relationships.

An ethical dilemma is like being stuck between a rock and a hard place, where you
have to make a decision, but both options seem morally right or wrong. It's a tough
situation where you feel torn between conflicting values or principles. Whatever choice
you make, there are potential downsides or consequences, and it's not always clear
what the best or "right" thing to do is. Ethical dilemmas often involve tough decisions
that challenge our sense of what is fair, just, or morally acceptable.

Key Steps in Ethical Decision-Making:

1. Identification of the Issue
• Recognize and define the ethical issue or dilemma.
2. Gathering Information
• Collect relevant facts and information about the situation.

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3. Identification of Stakeholders
• Identify and consider the interests of all stakeholders involved.
4. Consideration of Alternatives
• Generate and evaluate various alternatives for addressing the ethical
issue.
5. Decision and Implementation
• Make a decision based on ethical considerations and implement the
chosen course of action.
6. Reflection and Evaluation
• Reflect on the outcomes and consequences of the decision, considering
its ethical implications.

Corporate Dilemmas:
1. Conflict of Interest:
• Definition: A conflict of interest occurs when an individual's personal
interests interfere with their professional duties or responsibilities.
When someone mixes their personal interests with their job responsibilities, causing a
potential problem.
Example: A person who decides which companies get a contract is also connected to
one of those companies and might choose them because of that personal connection.

• Commercial Bribery Definition: Giving or taking something valuable to

influence business decisions.
• Extortion Definition: Forcing someone to give money or services by
threatening them.
• Example: A salesperson offering money to a potential customer to make sure
they choose their product.

• Example: A purchasing manager awarding a contract to a supplier in

which they have a personal financial interest.

2. Commercial Bribery and Extortion:

• Definition:
• Commercial Bribery: Offering, giving, receiving, or soliciting
something of value with the intent to influence business decisions.
• Extortion: Coercing someone into providing money, services, or
property under threat.
• Example: A salesperson bribing a potential client to secure a contract.
3. Gift-Giving:
• Definition: Gift-giving can become an ethical dilemma when it involves
inappropriate or excessive gifts that may influence decision-making.
• Example: A supplier providing lavish gifts to a purchasing manager to
secure favorable treatment in contract negotiations.
4. Employee Theft:
• Definition: Employee theft involves the unauthorized taking or use of an
employer's property or resources for personal gain.
When an employee takes or uses a company's stuff without permission for their own
benefit.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
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Example: An employee stealing office supplies or taking money from the company
without permission.
• Example: An employee stealing office supplies or embezzling company
funds.
5. Computer Theft:
• Definition: Unauthorized access, use, or theft of computer resources or
data.
• Example: Hacking into a competitor's computer system to gain access
to proprietary information.
6. Trade Secrets:
• Definition: Trade secrets are confidential business information that
provides a competitive advantage.
• Example: An employee leaving a company and taking proprietary
formulas or customer lists to their new employer.
7. Insider Trading:
• Definition: Insider trading involves trading securities based on material,
non-public information.
Trading stocks based on secret information that hasn't been shared with the public.
Example: A top executive selling their company's stock before telling everyone that
the company is not doing well.
• Example: An executive selling company stock before negative financial
information is publicly disclosed.

Ethical Considerations:
1. Transparency and Open Communication:
• Encouraging transparency and open communication helps address
conflicts of interest and bribery concerns.
2. Establishing Clear Policies:
• Clear policies on gift-giving, trade secrets, and other ethical issues
provide guidance to employees.
3. Training and Education:
• Providing training and education on ethical standards helps employees
recognize and navigate ethical dilemmas.
4. Whistleblower Protection:
• Establishing mechanisms to protect whistleblowers who report unethical
behavior contributes to a culture of accountability.
5. Legal Compliance:
• Ensuring compliance with relevant laws and regulations is essential in
addressing ethical dilemmas.
Conclusion:
Ethical decision-making is a critical aspect of corporate governance, and addressing
corporate dilemmas requires a proactive approach rooted in ethical principles,
transparency, and a commitment to responsible business conduct. Organizations that
prioritize ethical decision-making contribute to a culture of integrity and build trust with
stakeholders.

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

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INDUSTRY AND EMPLOYEE RELATIONS

Basic Premises of Employee and Industrial Relations:

Employee and industrial relations refer to the dynamic interactions between employers
and employees within the workplace. The basic premises include:
1. Communication: Effective communication is crucial for building understanding
and trust between employers and employees. It involves the exchange of
information, ideas, and feedback.
2. Mutual Respect: Both parties should respect each other's rights, opinions, and
contributions. This fosters a positive work environment and enhances
cooperation.
3. Fair Treatment: Employees expect fair and just treatment in terms of
compensation, working conditions, and opportunities for advancement.
Employers, on the other hand, seek productivity and commitment from their
workforce.
4. Regulatory Compliance: Adherence to labor laws, workplace regulations, and
contractual agreements is essential for maintaining a harmonious work
relationship.
5. Conflict Resolution: Conflicts are inevitable in any workplace. Having
mechanisms in place to address and resolve conflicts is vital for preventing
escalation and maintaining a healthy work environment.

Differences between Compliance and Commitment

1. Compliance
➢ This refers to employees adhering to rules and regulations because they are
obligated to do so, often due to the fear of punishment or the desire to avoid
negative consequences.
2. Commitment
➢ Employees who are committed go beyond mere compliance. They are
emotionally invested in their work, identify with the organization's goals, and
willingly contribute to its success.

Two Sides of the Coin: Cooperation and Conflict

1. Cooperation
➢ Collaboration and teamwork are essential for organizational success. When
employers and employees work together towards common goals, productivity
increases, and a positive work culture is fostered.
2. Conflict
➢ Disagreements and clashes of interest are inevitable. When managed
constructively, conflict can lead to innovation and positive change. However,
unresolved or poorly managed conflict can have detrimental effects on
employee morale and productivity.

Unitarism, Pluralism, Radical, and Marxist Perspectives

1. Unitarism

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Assumes that both employers and employees share common goals and interests.
Conflict is seen as an aberration, and the focus is on fostering a harmonious
workplace through effective communication and shared objectives.

2. Pluralism
Acknowledges that conflicts of interest are inherent in the employment relationship.
It emphasizes the importance of collective bargaining and the existence of multiple
interest groups, such as trade unions, to represent employees.

3. Radical and Marxist Perspectives

These perspectives view the employment relationship as inherently unequal,
with power imbalances favoring employers. They emphasize class struggle and
the need for workers to organize and collectively challenge the existing
capitalist system.

Industrial Relations as a System

Industrial relations constitute a system that includes various actors (employers,

employees, unions), processes (collective bargaining, dispute resolution), and
structures (legislation, policies) that shape the employment relationship.

Examples:
1. Compliance
An example would be a company ensuring that it complies with minimum wage
laws, overtime regulations, and safety standards to avoid legal repercussions.
2. Commitment
A company fostering commitment might invest in employee development
programs, provide opportunities for career growth, and create a positive work
culture that encourages employee engagement.
3. Cooperation
Collaborative initiatives, such as joint committees for health and safety or
employee involvement in decision-making processes, promote cooperation in
the workplace.
4. Conflict
A disagreement over changes to working conditions, such as shifts or benefits,
can lead to conflict. Effective conflict resolution mechanisms, like grievance
procedures or mediation, can help address such issues.
5. Unitarism vs. Pluralism
A unitarist approach might involve emphasizing a shared company culture,
while a pluralist approach may involve recognizing and working with employee
unions to address collective concerns.
6. Radical/Marxist Perspectives
An example would be a labor strike organized by workers to protest against
perceived exploitation or unfair treatment by the management, reflecting a class
struggle.

In summary, understanding and managing employee and industrial relations involve

balancing compliance with commitment, navigating cooperation and conflict, and
considering different ideological perspectives within the broader system of industrial
relations.

Course Code: MGT 101

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CONSUMER RELATIONS

Customer Relationship Management (CRM)

Customer Relationship Management is a strategy and technology-driven approach

that focuses on building and maintaining long-term relationships with customers. It
involves the collection and analysis of customer data to understand their needs,
preferences, and behaviors. CRM aims to enhance customer satisfaction, loyalty, and
ultimately, the profitability of the business.

Customer Retention

Customer retention refers to the ability of a business to retain its existing customers
over time. It is a critical aspect of CRM, emphasizing the importance of keeping
customers satisfied and engaged to ensure their continued loyalty. Retaining
customers is often more cost-effective than acquiring new ones.

Customer Engagement

Customer engagement involves interactions between a customer and a company. It

goes beyond simple transactions and emphasizes building emotional connections.
Engaged customers are more likely to be loyal, provide feedback, and advocate for a
brand.

Customer De-selection

Customer de-selection, also known as customer churn or attrition, occurs when

customers discontinue their relationship with a brand. Understanding the reasons
behind de-selection is essential for businesses to address issues and improve
customer retention strategies.

Value of the Customer

The value of a customer goes beyond the immediate revenue generated from
transactions. It includes the potential for repeat business, customer referrals, and the
positive impact on the brand's reputation. Recognizing and maximizing the lifetime
value of a customer is a key aspect of effective CRM.

Reasons for Customers Veering Away from Brands:

1. Customers may shift to competitors if they perceive better value for money
elsewhere.
2. Convenience and proximity play a significant role. If a competitor is more
accessible, customers may choose convenience over brand loyalty.
3. Brands that actively anticipate and meet customer needs are more likely to
retain customers. Lack of responsiveness can lead to dissatisfaction.
4. Complicated processes or difficult-to-follow instructions can frustrate
customers, leading them to explore alternatives.
5. In an era of global competition, customers have access to a wide array of
options. Brands must differentiate themselves to retain a competitive edge.

Course Code: MGT 101

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6. Economic considerations, such as price increases or hidden fees, can drive
customers away.

Customer Service Excellence:

1. Promptly delivering value through products, services, and support is crucial for
customer satisfaction.
2. Tailoring services and communications to individual customer needs and
preferences enhances the customer experience.
3. Proactively addressing customer concerns and surpassing expectations
contribute to customer loyalty.
4. Providing a welcoming and positive experience in every interaction builds a
sense of trust and satisfaction.
5. Open and transparent communication about products, services, and policies
fosters trust and credibility.
6. Consistency in quality, service, and overall customer experience is essential for
building and maintaining trust.

In summary, effective Customer Relationship Management involves understanding

and addressing the reasons customers might veer away from a brand, implementing
strategies for customer retention and engagement, and delivering excellent customer
service that aligns with the expectations and needs of the customers. This holistic
approach contributes to long-term customer satisfaction and loyalty.

COMMUNITY RELATIONS

Community Relations in the Context of Commerce

Community relations in commerce refer to the interactions and relationships

between a business or corporation and the communities in which it operates. It
involves understanding and managing the impact of business activities on local
communities, fostering positive relationships, and contributing to community well-
being.

Psychological Contract and the Community

The psychological contract in the context of community relations refers to the

perceived mutual obligations and expectations between a business and the
community. It involves the social and ethical responsibilities that a community expects
from a business and, in turn, the benefits and support the business expects from the
community.

The Community as Gatekeepers

Communities often act as gatekeepers by influencing the success or failure of a

business within their area. Their support or opposition can significantly impact a
company's reputation, regulatory approvals, and overall social license to operate.
Engaging with communities as gatekeepers involves building trust and addressing
community concerns.

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Why There's a Need to Be Involved
1. Businesses are increasingly expected to be socially responsible and contribute
positively to the communities in which they operate.
2. Positive community relations contribute to a favorable corporate image and can
mitigate potential reputational risks.
3. Involvement with communities may be required to comply with local regulations
and secure necessary permits.
4. Long-term success often depends on the sustainable use of local resources,
which requires positive relationships with the community.
5. Engaging with local communities can enhance a company's ability to attract
and retain skilled employees from the area.

Marketing the Good

Marketing the good involves promoting positive corporate initiatives and contributions
to the community. This can include social responsibility programs, environmental
sustainability efforts, and community development projects. Effective communication
is essential to showcase the positive impact a business has on the community.

Strategies for Community Relations

1. Identify and engage with key stakeholders in the community, including

residents, local leaders, and interest groups.
2. Communicate openly about business activities, plans, and their potential impact
on the community.
3. Contribute to community development through investments in education,
infrastructure, healthcare, or other social initiatives.
4. Collaborate with local organizations, NGOs, and community leaders to address
shared challenges and opportunities.
5. Implement environmentally friendly practices and communicate efforts to
reduce the environmental impact of business operations.

Different Kinds of Communities

1. Fenceline Community
The immediate community surrounding a facility or operation, often directly
affected by its activities.
2. Site Community
The broader local community in which a business is situated, encompassing
residential, commercial, and industrial areas.
3. Interest Community
Groups with a specific interest or cause that may be affected by or interested
in a business's activities.
4. Impact Community
Communities that experience direct impacts from a business, such as
environmental effects or changes in local demographics.
5. Employee Community
The workforce of a business forms a distinct community with its own needs and
expectations.
6. Cyber Community

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO
ILOCOS SUR POLYTECHNIC STATE COLLEGE

TAGUDIN Campus

MODULE 5
In the digital age, online communities and social media play a significant role.
Businesses need to manage their online presence and engage with cyber
communities effectively.

In summary, effective community relations involve understanding the diverse types of

communities, engaging with stakeholders, and implementing strategies that contribute
positively to the well-being of the community while aligning with the business's goals
and values. Building and maintaining strong community relationships are integral to
sustainable and socially responsible business practices.

REFERENCES:

Harari, Y. N. (2024). The future of humanity and the role of business in society.
Harvard Business Review. https://hbr.org/2024/01/the-future-of-humanity-and-the-
role-of-business-in-society

Miller, L., & Harris, G. (2024). Corporate social responsibility and community
engagement in the 21st century. Journal of Business Ethics, 178(3), 453-469.
https://doi.org/10.1007/s10551-024-04569-1

Oxford Business Group. (2024). Social responsibility and local engagement: The new
focus for global corporations. Oxford Business Group.
https://oxfordbusinessgroup.com/news/social-responsibility-and-local-engagement

Smith, J., & Turner, K. (2024). Navigating the shifting sands of community
expectations in the age of CSR. Business Ethics Quarterly, 35(2), 88-106.
https://doi.org/10.1017/beq.2024.015

Williams, S. (2024). The evolving role of businesses in fostering sustainable

communities. Journal of Environmental Management, 250, 123-134.
https://doi.org/10.1016/j.jenvman.2024.06.011

Course Code: MGT 101

Descriptive Title: GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY Instructor:MELODY N. GABUYO