BUSINESS ETHICS

ND RD
7. HONEST AND FAIR-MINDED
 Leaders must always maintain objective decisions and
2 SEMESTER – 4 QUARTER
fair. treatment on subordinates because dishonest and
Transes lesson by: A3.ash
biased behavior are easily noticed even when they are
done in the most subtle ways. To maintain successful
teams, playing favorites is extremely discouraged and
Unit 1 instead allow everyone to do his fair share and excel in
Responsibility And Accountability of An Entrepreneur their own way.

WHO: ENTREPRENEUR
EMPLOYEES/WORKFORCE
Richard Cantillon – Irish Economist 1. Workplace Safety. by Monitored Administration. Occupational
- A person who takes risk for new bus. venture and Safety and Health
accepts full responsibility for its outcome. 2. Quality-of-Life Issues. Balancing work and family through
flexible work schedules, subsidized child care, and regulation such
Jean-Baptiste Say – French Economist as the Family and Medical Leave Act of 1993.
- Define entrepreneur who undertakes an enterprise, 3. Ensuring Equal Opportunity on the Job. Providing equal
especially a contractor who acts as an intermediary opportunities to all employees without discrimination; many
between capital and labor coined 1800. aspects regulated by law.
4. Sexual Harassment and Sexism. Avoiding unwelcome actions of
a sexual nature; equal pay for equal work without regard to gender.
CHARACTERISTIC of an entrepreneur
5. Age Discrimination. DOLE - IRR of RA 10911 February 3, 2017
protects workers age 40 or older.
1. LEADERSHIP
 He inspires confidence and trust from his employees and
OWNERS AND SHAREHOLDERS
customers. A leader who knows how to handle a team in
an ethical manner
Shareholders: who are the people wo invest and part of the company
decision making. “ Owner of the Business” they enable to
2. VISIONARY
give then true and fair position of the company.
 He must possess a clear and concise vision for the
purpose and direction of his business organization. A
Company : they should strengthen the share prices by its growth,
visionary leader knows to do plan to carry out the vision.
innovation, and diversification. They cooperation with the
 The plan need to be clear enough to lead the team towards
company to protect their own interest.
the goals and objectives of the business providing
timelines and deadlines and individual role
Investors: Protected by SEC (Security Exchange Commission)
3. DECISIVE
Customers: company is responsible to ensure the enjoy and basic right
 An entrepreneur may not be endowed with instinct but
of customer (Ra. Act 7394)
must possess the ability to make educated decisions.
 Must be able to get as much wise input and counsel and be
BASIC RIGHTS OF CUSTOMER
ready to make new decisions based on additional
information. Humility is a virtue for good decision- 1. The Right To Be Safe,
making. 2. The Right To Be Informed.
4. ADAPTABLE AND FLEXIBLE 3. The Right To Choose
 Must be able to adapt and adjust the changes in the 5. The Right To Be Heard
marketplace, products and trends, technology and
marketing strategies.
 One can become adaptable and flexible in the midst of OWNERS AND SHAREHOLDERS
changes
Government.
5. POSSESSES INTEGRITY - legislations are formed by the government for proper
 it is important that one has "palabra de honor" (word of regulation and control of business.
honor). "Keep your word!" There is a saying in Tagalog, - Businessmen should pay various taxes in time and help
“wika at batong ihagis, di na muling magbabalik". government in collecting funds. They should not resort to
 A person's integrity is something takes time to acquire out tax evasions rather declare their incomes honestly and
of good work and good impression and only a moment to correctly.
undo all the good things done, as nothing destroys trust
and confidence when one breaks his word, and no excuse Community and the General Public.
for that. - The basic objective of business is to develop, produce and
supply goods and services to customers.
6. APPRECIATIVE - This must be done in such a way as to allow companies to
 Be openly generous with praise when employees or make a profit, that it can use again not just for its own but
whoever subordinate does good or perform well. It entails for the society. Responsibility of business towards
no monetary price but a reward that can boost one's community and society includes spending a part of profits
morale and inspire to perform better. Just be careful and towards civic and educational facilities and even some
be stingy on praises when they are not really deserved. philanthropic endeavors.
 2. Shortchanging the Customer.
CORPORATE PHILANTHROPHY This practice does not only mean failure to give the right
amount of change to a customer after the sales which happen
(CSR) Corporate Social Responsibility towards to the public by other
means. when customers are too trusting that they do not bother to count
Cash contributions, donations of equipment and products, and their change anymore.
supporting the volunteer efforts of company employees.
3. Withholding of Some Important Information
ETHICAL MARKETING During the Purchase of Goods or Service.
This happens in insurance claims. Since contracts are tedious
It seeks to promote honesty, fairness, and responsibility in all to read, explanation of some provisions may be withheld.
advertising. It is more of a philosophy that builds relationship between Ex. An insurance was offered which stated that the paying period was
the company and the customer. 5 years but since it was not made clear to the customer, the payback
It creates value to the customer by providing goods and was 7 years.
services according to their needs and wants
4. Misappropriation of Trade Secrets.
Stealing the secrets of another company when one wants to put
ETHICAL ISSUE in Business
up a similar business.
are generally discussed as those pertaining to customers, employees/
Ex. A baker who already know the secrets of the cakes and pastries put
workforce, government, the public or the society in general and the
his own bakeshop and entice the customers by offering a lower cost of
environment.
products.

THE DIFFERENT FORMS OF WHAT CAN BE CONSIDERED AS

UNETHICAL ADVERTISING:
5. Employee Piracy.
his by recruiting outside employees who have the expertise they
- Bait and switch advertising.
- Advertising for Children need with the use of malicious effects to that employees.
- Deceptive advertising "known as false advertising"
- Exaggeration or Puffer 6. Restraining Join Labor Unions.
- Misleading Advertisements.
- Surrogate Advertising An organization joined by work labor part of their right to
protect their common interests and improve their working
conditions. But there are some companies which as a condition
Sexual harassment
make their workers sign a waiver not to join or form labor union.
It is an act or a series of acts involving any unwelcome sexual
advances, request or demand for a sexual favor, or other verbal or This may be voluntary, but for a worker who is in dire need to
physical behavior of a sexual nature, committed by an employee or work, this becomes a conditions for acceptance to work.
official in a work-related, training- or education- related environment.

“QUID PRO QUO SEXUAL HARASSMENT”

is committed when a person demands, requests, or requires sexual Environmental Parasitism
favors from another person in exchange for another thing such as A business organization that draws its resources from the
hiring for employment, re-employment, or continued employment, local community both from raw materials to Human resources but fails
granting favorable compensation, terms of conditions, promotions, or to reinvest and develop the community is an act of parasitism.
privileges.

Inappropriate Computer Use and time Stealing

When employees use the company computers for personal Approaches can be done by a company which depends on the
purposes like in personal social media, personal e-mail that is not work- environment for its sustenance
related, personal shopping on-line and random internet-surfing for • On people.
personal purposes are all part of inappropriate and • On resources.
unethical use of computers. • On the environment.

Unfair Competition UNETHICAL PRACTICES IN THE PUBLIC SECTOR

is an umbrella term involving deceptive or wrongful business practices
that economically harm both consumers and business organizations. 1. Graft and Corruption.
Graft is a form of political corruption, used of politician's
EXAMPLES OF UNFAIR TRADE PRACTICES ARE authority for personal gain.
GIVEN BELOW The two words are often used as an encompassing
unscrupulous act because most of the time money is
1. Trademark Infringement. involved.
A competing company of a well-known product in order to Corruption is often heard in the public sector but can
sell its own uses the logo of the known company. also exist in the private sector. The word "corruption"
Sometimes the logo is also used on other items that serve as means the abuse of public trust for private purposes.
accessories. Corruption may exist independently of any financial
 benefit. An individual abuses the public confidence 1. NORMATIVE
placed in him to serve his own interests or those of the it provides a reasoning as to why firms should/must
group to which he belongs. be liable/responsible for their stakeholder‘s interests.
2. Improper Use of Government Property
2. DESCRIPTIVE
Ethical concerns regarding government property are not
it questions the company‘s actual activities/steps that
only limited to theft and fraud, but also the use of public
benefits their stakeholders.
property by public officials for private benefit. e public
official is not actually stealing the office telephone or the 3. INSTUMENTAL
government vehicle. Instead, the issue concerns the stakeholder theory tries to present an evidence.
purpose for which the government property is being used whether there is a necessity for the firm to conduct suc
3. Bribery and Influence Peddling. CSR practices in relation to their stakeholders.
Bribery occurs when a person of public authority is
offered, and accepts, some personal benefit in the form of
money, property or free services in exchange for
performing some action.
4. Conflict of Interest and Self-dealing.
Conflict of interest occurs when a public official's
private interests are such that they may influence the
performance of his or her public duties. The concern
here is often the same as with bribery and influence
peddling.

Unit 2
CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Is the-Continuing commitment by a company to behave ethically
and contribute to economic development while improving the
quality of life of its workforce and family members, as well as the
local community and the society at large-World Business Council
for Sustainable Development, 1999.

WHY SOCIAL RESPONSIBILITY A MUST FOR BUSINESSES?

1. To develop profitability (long-term)

2. To become cost-efficient
3. It facilitates in handling of risks and uncertainties
4. Helps in the maintaining the social license to function/operate

FURTHERMORE, BECKER (2019) ALSO EMPHASIZED

THE FOLLOWING REASONS WHY businesses must consider
implementing Corporate Responsibilities (CR)

 Enhanced Stakeholder Relations

 Catch the best Human Resource to work in the tea
 Helps to Create New Products and Services

Triple Bottom Line

People – Planer – Profit

DONALDSON AND PRESTON (1995) IN CRANE ET. AL,
(2016) ARGUED THAT…

STAKEHOLDER THEORY ARE CATEGORIZED INTO

THREE: