Republic of the Philippines
UNIVERSITY OF EASTERN PHILIPPINES
University Town, Northern Samar, Philippines
Web: [Link] Email: uepnsofficial@[Link]
UNIVERSITY OF EASTERN PHILIPPINES SENIOR LABORATORY HIGH SCHOOL
Course Code: ABM_ESR12
Course Title:
Grade 12
BUSINESS ETHICS AND
SOCIAL RESPONSIBILTY
Quarter 3– Chapter 1
The Core Principles Underlying Fairness,
Accountability, and Transparency in
Business Operation and Stewardship
(Modular Discussion)
Prepared by:
Princess Dianne A. Pilande
Subject Teacher
What I Need to Know
Being an Accountancy, Business, and Management (ABM)
student, you can be employed later in an enterprise or even in a
big corporation. Hence, it is important for you to know the ways
on how fraud or problems can be prevented in work areas or
offices. As such, the core principles of fairness, accountability,
and transparency should be learned so that you can apply the
knowledge in case you encounter those fraudulent or problematic
situations in the future.
After going through this module, you are expected to:
1. Classify the situation if is shows fairness, accountability, or
transparency;
2. Explain the core principles of fairness, accountability, and
transparency; and
3. Illustrate how fairness, accountability, transparency and
stewardship is observed in business and non-profit organizations.
What I Know
Directions: Identify what is defined or described by choosing the
letter of your answer. Write your answers on a separate sheet of
paper.
1. It is the explication and justification process.
A. accountability B. fairness C. transparency D. efficiency
2. It is giving to a person what is due to him/her.
A. accountability B. fairness C. transparency D. efficiency
3. This act should be done accurately to the company’s investors.
A. hiring B. reporting C. organizing D. auditing
4. This approach makes a person more honest and sincere.
A. accountability B. fairness C. transparency D. efficiency
5. This means that the standard of judging is free from bias.
A. accountability B. fairness C. transparency D. efficiency
Directions: Identify whether the statement is True or False.
6. When a manager is not bias, he/she is fair.
7. Ted showed transparency when he reimbursed his expenses
without showing official receipts.
8. An employee is accountable to pay whatever company property
he/she has damaged or lost.
9. Fairness is shown when one listens to the two sides of a story.
10. Accountability is shown when one admits his/her mistake and
is responsible for it.
11. Betty exercised fairness when she paid the right amount for an
item purchased.
12. Transparency is shown when the accountant hides the records
from the other shareholders of the company.
13. Bobby is exhibiting transparency when he holds an open
bidding for the company’s next project.
14. Mina should pay the money collection that she lost in the
restaurant, being the treasurer of the lending company where she
works.
15. A boss may choose who among his employees will be given
13th month pay
The Core Principles Underlying
Fairness, Accountability, and
LESSON 1 Transparency in Business Operation
and Stewardship
What is It
To help the business organization get on the right track,
there are three core principles that should be implemented in its
operation - fairness, accountability, and transparency.
Fairness
This is the standard of judging which is exempted from bias
or prejudice. When someone displays fairness in making decision,
he/she pleases all involved parties and offers a solution that is
beneficial to everyone. In business context, fairness means
balancing the interests involved in all decision-making including
those related to hiring, firing, and the compensation and reward
system. Employees think of their organizations as just when the
rewards and the way they are distributed are fair.
Fairness is giving to a person what is due to him/her. It has
something to do with justice because the employer checks
whether the members have the benefits and burdens distributed
evenly to them.
Examples of fairness:
1. A boss listening to both sides of the story before judging
who is right and who is wrong.
2. An employer giving 13th month pay to all his/her
employees.
3. A person paying the right price for a product purchased or
for a service received.
Accountability
The most important aspect of preventing and detecting
corruption is the sound accountability structures. A civil society
organization without proper systems of accountability is fragile
and open to rumors of mismanagement and abuse of authority.
Worst of all, lacking it will prevent the organization from enjoying
full respect and legitimacy in the eyes of its stakeholders,
including those bearers of duties that it intends to advocate with.
Accountability is the explication and justification process. It
is about testing, forming a judgment, and taking an action if
necessary. It also comes with responsibilities. Holding people to
account for those actions which they are responsible for is fair.
Accountability is therefore an obligation to demonstrate that
work has been carried out in accordance with agreed rules and
standards, or to report on performance results fairly and
accurately in relation to mandated roles and/or plans.
Examples of accountability:
1. A cashier admits he/she lost the company’s collection and it is
his/her mistake.
2. An engineer who is assigned on a project is the one to be
blamed if the project did not meet the deadlines.
3. Employee A recommended his cousin to be their company
janitor, but the latter stole the cellular phone of their secretary.
Therefore, Employee A may be blamed for recommending his/her
cousin and should pay or replace the lost cellphone.
Transparency
Transparency, at the individual level, considers intrinsic or
ethical salience as an important feature of the relational
dimension of a person. It is described as a personal quality which
is necessary to develop unity between and among individuals. A
transparent approach makes a person more honest and sincere
in his/her relationships, in communicating his/her points of view,
and in working actively to find shared meanings and goals.
Organizationally speaking, the instrumental salience of
transparency is identified as an important mechanism for
ensuring social responsibility. For example, adequate disclosure
is required to inform donors of how an organization uses its
money.
Transparency helps people to consider how the actions of
social organizations such as multinational agencies and non-
governmental groups offer meaningful support to civil society and
whether funding is being properly spent.
More examples of transparency:
1. Reporting accurately the company’s financial situation and
risks to investors
2. Holding and selecting bids according to an open pre-
defined process
3. Having an open process of decision-making such as in
hiring additional employees.
Activity 1
Directions: Read the text below and follow the given instructions.
Write your answers on a separate sheet of paper.
Miguel works as an accountant in a big corporation. For
2019, the tax payable by his company to the Bureau of Internal
Revenue (BIR) is more than Php 10,000,000.00 pesos. Since he is
assigned to transact business with the BIR, he connived with the
revenue officer where they both agreed to lower the tax to Php
5,000,000.00 only. Then, the Php 2,000,000.00 was given to the
collecting officer and the Php 3,000,000.00 went to Miguel’s own
pocket.
Supposing you work with Miguel at the accounting
department and you suddenly discovered what he did, what would
you do?
Put check (/) if the action is acceptable. If not, leave it as it
is.
1. _____ I will talk to Miguel and tell him that I will not report
him provided that he shares with me his part.
2. _____ I will immediately report him to the manager.
3. _____ I will not do anything because I do not want to be
involved in the issue.
4. _____ I will share the information to my closest officemate,
but we will never disclose it to others.
References:
DepEd 2016. DepEd’s Curriculum Guide for Business Ethics and
Social Responsibility, s. 2016 DepEd 2020. DepEd’s Most Essential
Learning Competencies MELC for Business Ethics and Social
Responsibility, s. 2020 Racelis, Aliza. 2017 Business Ethics and
Social Responsibility. Manila: Rex Book Store, Inc.
[Link]. 2020. Photography of a Person Pointing
Something. Retrieve from
[Link]
pointing-on-something-684387/. Roa, Floriano. 2011. Business
Ethics and Social Responsibility. Manila: Rex Book Store, Inc.