BESCR 6.

Fully consider the rights, interests, and

perspectives of all stakeholders, approach
- A business guided by ethical principles; judgments with open-minded impartiality,
behaving in an ethical manner can create a conscientiously gather and verify facts, provide
positive atmosphere and may build a promising critical stakeholders with an opportunity to
business results. A business environment that explain or clarify, and carefully evaluate the
promotes and upholds valued principles is information
usually more productive.
Accountability -means that you accept
- Fairness refers to equal treatment, for responsibility for the
businesses and companies for instance, there
should be fairness in shareholders, more so in outcomes expected of you-both good and bad.
the treatment of all stakeholders including You don't blame others. And you don't blame the
employees, communities and public officials external environment.
1. concerned with actions, processes, and • everyone can work as a team to identify and
consequences, that are ethically correct, analyze such insights to positively influence the
principled, and unbiased culture, process and improve a working
environment for the company.
2. establishes moral standards for decisions that
affect may others • employees who do not meet the expectations
of their supervisor are held accountable for their
3. about justice and equity in the context of actions and must answer for their inability to do
broader social issues and institutional obligations so.
to individuals
• managers must clearly communicate their
expectations to the person who is responsible for
the specified action or task
What will happen without a defined goal?
1. Employees lack a frame of reference on how
they are performing in the workplace
2. Unable to rely on guidelines or structures that
help them achieve their performance goals
3. Difficult to identify between superior and
employees who are accountable for any results

Two major types of decisions in terms of Transparency means the quality of being done in
fairness: an open way without secrets.
a) Comparative selections Transparency yields TRUST
• - for instance, whom to hire or fire; who should TRUST cannot be built over a night but can be
be cut from the team and; accomplished when there is TRANSPARENCY
b) Factual determinations Good effects in being transparent in business
organization
- This type of decision is often accusatory in
nature; for instance, did a person lie, cheat, or 1. relationships grow and deepen
steal. 2. builds trust that develops a good attitude and
behavior of their teams
Principles of Fairness 3. No hiding of information of services/ products
1. Treat everyone fairly based on their merits promotes no doubt to customers
and abilities and handle all essentially similar
situations similarly and with regularity. Stewardship refers to the responsibility that
companies have to understand and manage their
2. Make all decisions on appropriate criteria, impacts on the environment in any number of
without favoritism or discrimination ways.
3. Never blame or punish anyone for what they Practicing stewardship can help a business find
did not do, and appropriately sanction those who sustainable practices, improve its status and
violate moral obligations or laws. reputation among clients and consumers and
4. Promptly and voluntarily correct personal and even save funds.
institutional mistakes and indecency. When a business does engage in stewardship it
Principles of Fairness must generally state its commitment to bear
responsibility for the effects its operations have
5. Not take unfair advantage of anyone's on the environment.
mistakes more so, ignorance.
Elements - PARTNERSHIP
- Stewardship can include one or more of a long By the contract of partnership two or more
list of specific practices and elements. For persons bind themselves to contribute money,
businesses engaged in manufacturing this property, or industry to a common fund, with the
includes sourcing raw materials that are intention of dividing the profits among
renewable and using chemicals and processes themselves.
that are safe for the environment. For all types of
businesses, using email and mobile devices to Two or more persons may also form a
reduce paper consumption as it is called, partnership for the exercise of a profession.
paperless, is a form of stewardship. Article 1767 Civil Code of the Philippines

Costs
Engaging in active environmental stewardship
comes at a higher price. For instance, employing
renewable energy alternatives, such as hybrid
vehicles or a solar- powered factory, are on the
cutting edge of stewardship but also require
large initial investments which is the reason for
some companies act differently as a steward.
Tax credits can help offset these costs, as can
- CORPORATION
the savings that come from a reduced reliance
on environmentally harmful energy sources with A corporation is an artificial being created by
rising prices, such as petroleum. Managing operation of law, having the right of succession
stewardship as part of a budget is a big and the powers, attributes, and properties
challenge for every business that seeks to help expressly authorized by law or incidental to its
improve its environmental status. existence.
Outcome
Stewardship in business has a several possible
benefits. Collectively it reduces energy usage,
protects natural resources and improves public
health. For individual businesses that commit
themselves to stewardship, the decision may
have a positive impact for the business. Some
companies earn certifications from
environmental agencies that serve a marketing
function, making their actions known to - COOPERATIVES
consumers and customers. This gives them
Cooperatives are people-centered enterprises
good imagery and is favorable in their marketing
owned, controlled and run by and for their
campaigns.
members to realize their common economic,
FORMS OF ORGANIZATIONS: social, and cultural needs and aspirations.
- To ensure you're choosing the best form of
company organization for your new venture, you
must be aware of the benefits and drawbacks of
each type of organization.
- All businesses are required to establish some
form of legal structure that spells out each
party's responsibilities and rights with regard to
the ownership, control, personal liability,
continuity, and financial structure of
- SOLE PROPRIETORSHIP
- 1 owner
Business Ethics- is the study of 2. Value-Based Code of Ethics
appropriate business policies and practices A value-based code of ethics addresses a
regarding potentially controversial subjects company's core value system
including corporate governance, insider trading,
bribery, discrimination, corporate social It may outline standards of responsible conduct
responsibility, and fiduciary responsibilities. as they relate to the larger public good and the
environment
1. the system of moral and ethical beliefs that
guides the values, behaviors, and decisions of a For example, a grocery store chain might create
business organization and the individuals within a code of conduct that espouses the company's
that organization commitment to health and safety regulations
above financial gain
2. some ethical requirements for businesses are
codified into law; environmental regulations, the 3. Code of Ethics among Professionals
minimum wage, and restrictions against insider Financial advisers registered with the Securities
trading and collusion and Exchange Commission (SEC) or a state
3. business ethics in history has changed over regulator are bound by a code of ethics known
time and the different areas of ethics are as fiduciary duty. This is a legal requirement and
important to every business. also a code of loyalty that requires them to act in
the best interest of their clients.
* Both businesses and trade organizations
typically have some sort of code of ethics that Common Practices in Business
their employees or members are supposed to 1. DECORUM
follow
behavior in keeping with good taste and
* Breaking the code of ethics can result in
termination or dismissal from the organization propriety

* A code of ethics is important because it clearly proper and polite behavior

lays out the rules for behavior and provides the • Business Etiquette
groundwork for a preemptive warning.
On time and promptness
* While a code of ethics is often not required,
many firms and organizations choose to adopt On appropriate communication
one, which helps to identify and characterize a
On attire and appearance
business to stakeholders.
On preparation
Types of Codes of Ethics
On building relationships
A code of ethics can take a variety of forms, but
the general goal is to ensure that a business and On basic courtesy and respect
its employees are following state and federal
laws, conducting themselves with an ideal that On greetings
can be exemplary, and ensuring that the On listening
business being conducted is beneficial for all
stakeholders
1. Compliance-Based Code of Ethics 2. Business policy

Compliance-based codes of ethics not only set scope or spheres within which decisions can be
guidelines for conduct but also determine taken by the subordinates in an organization
penalties for violations •Features of business policy
industries formulate compliance-based codes of [Link]
ethics to enforce laws and regulations
[Link]
For example, employees usually undergo formal
training to learn the rules of conduct. Because [Link]/ uniform
noncompliance can create legal issues for the
[Link]
company as a whole, individual workers within a
firm may face penalties for failing to follow [Link]
guidelines.
[Link]/ Comprehensive
[Link]
[Link]
3. REPORTORIAL REQUIREMENTS worthwhile they feel their job is. Then see if, in a
year, we have managed to enhance their sense
Business reporting or enterprise reporting - is the of purpose.
public reporting of operating and financial data
by a business enterprise. Plutarch, on being a good role model
common kinds of Business report: Plutarch, the ancient Greek historian, and
educator, understood that humans are incredibly
1. Annual report- is a comprehensive report on a social creatures, who constantly observe the
company's activities throughout the preceding people around them and imitate them.
year. In organizational terms, that means what you say
Common kinds of the business report: to your employees is less important than what
you do. They will watch how you behave, how
1. Annual report- is a comprehensive report on a you treat others, how you cope with pressure
company's activities throughout the preceding and whether you follow through on your
year. promises. And they will imitate you. If you talk
General corporate information about ethics and then cut corners at the first
opportunity. they will follow your lead. Set a good
Accounting policies example and they will follow it. Plutarch would
also warm that your best young employees will
Balance sheet
use you as a bar to aim for and exceed. That's
•Cash flow statement natural. Let them compete with you and
encourage them to go further.
•Non-audited information
•Profit and loss account
Aristotle, on letting people seek fulfillment
•Notes to the financial statements
Aristotle was a great biologist as well as a great
•Chairperson's statements philosopher. He based his ethics on a
•Director's report psychological theory of human nature, insisting
that we are naturally virtuous, rational, social,
•Operating and financial and happiness-seeking. Governments and
review organizations need to build the best systems to
let humans fulfill their natural drives. Aristotle's
•Auditors report philosophy was an influence on Edward Deci
and Richard Ryan's Self-Determination Theory,
[Link] report/ statement- is a formal record
which suggests that employees will work harder
of activities and position of a business, person,
for you, and perform better, if you give them
or other entity.
tasks, they find meaningful and morally
Financial report/ statement includes: worthwhile.
Balance sheet Socrates, on daring to disagree
Socrates, one of the first philosophers, insisted
Income statement on our right to think for ourselves. Too often, he
Equity Statement warned, humans sleepwalk through life, simply
going along with the crowd.
Cash flow statement
Socrates, on daring to disagree
PHILOSOPHERS:
This is dangerous in questions of morality,
Rufus, on keeping track of one's ethical progress particularly in corporate governance. When
corruption is uncovered, too often people say,
Musonius Rufus was known as the Socrates of
"everyone else was doing it". But our characters
Rome. He was another Stoic, taught that
are our responsibility. Socrates was prepared to
philosophy cannot just be theoretical. If you want
die rather than go against his conscience. Does
to be an ethical individual or an ethical company,
your organization encourage Independent
you can't just study ethics, you must practice it,
thinkers and people who follow their conscience?
every day, to get into good habits. The ancient
Does It allow people to give critical feedback to
Greek word for ethics is the same word for habit.
managers? Does It create opportunities for good
In organizational terms, keeping track of people to blow the whistle on bad behavior?
ourselves means trying to take an evidence-
Epicurus, on the art of happiness
based assessment of our performance. We
might say we are a green company, but how do Epicurus was a fourth-century Greek philosopher
we know if we are making progress? We might who taught, rather scandalously, that the aim of
say we are a happy organization, but how do we life was simply to be as happy as possible here
know? We can keep track of this, for example by on Earth, before we die, and dissolve back into
asking our employees (anonymously) how the atomic universe. He warned that humans are
very bad at being happy, and very good at plain English and mamaya na in
inventing reasons to be miserable. Philosophy Filipino.
should teach us how to be happy, he suggested.
For example, it could teach us how to bring our  It could also means putting
attention to the present moment, to savor it. It something off until another time.
could also teach us to limit our desires to what is This habit has made Filipinos
easy to get, not Inflating our needs with endless become lazier and less efficient in
artificially stimulated desires. doing task.
SUKI SYSTEM
• “Suki” is a Filipino term which means “loyal
FILIPINO VALUE SYSTEM:
customers.”
UTANG NA LOOB • “Suki” is a distinct Filipino value system
which is rooted primarily in personal alliance
 Gratitude or utang na loob is very
systems based on commercial relationships
fashionable Filipino characteristic.
One does not fail to remember the BAHALA NA
fine actions that others may have
• The word Bahala is actually a derivative of
done particularly at times of great
need. the word Bathala, which refers to the ancient
 This debt of gratitude is at times Supreme Being worshiped by Filipinos
abused by those who have done during the pre-Spanish Period.
well to others.
• Bahala Na has been loosely translated as
 With this system people are forced “come what may.”
to do something in exchange for
what others do in favor. • in the context of leaving things in the hands
of the Divine Being.
 Conditional – there is expected
FILIAL PIETY
return
• Filial piety is a virtue of respect for one’s
Unconditional – doing something
without expecting for return parents, elders, and ancestors
 Impact on Business: trade • Filial piety is an important concept in Filipino
products/culture, strong bond, gift culture. It is understood as essential to
giving & polo y servicio.
maintain the collective face of the family and
PADRINO SYSTEM
to avoid experiencing hiya
 Padrino system, or patronage in
the Filipino culture and politics is In business:
the value system where one gets • The Filipino family is so intact that it is
support, endorsement, or political common for members of the same family
appointment through family work for the same company.
affiliation (nepotism) or friendship Impact of Filial Piety on Business
(cronyism), as against to one's
• members of the family work in the same
worth. company
 Nepotism is the practice of hiring
family members regardless of their •family-owned business organization
qualifications. In some cases, a
relative of a company executive may • Opinions of younger family members are
be qualified to perform the job for just secondary to their superiors
which she is hired. BELIEF SYSTEM:
 Cronyism is the other side of
nepotism. It is the act of hiring friends  A belief system is a set of principles or
regardless of qualifications. tenets which together form the basis of
 The Padrino system in the Philippines a religion, philosophy, or moral code.
has been the root cause of many Historically, since the dawn of
controversies and corruption. civilization, religious beliefs have been
 Impact on business: get a higher rank, some of the most powerful influences
not good in business decisions. on human behavior. This lesson
defines religion and explores its
MAÑANA HABIT impact on business practices.
 Religion is defined as a set of beliefs
 The word mañana means concerning the cause, nature, and
tomorrow or specified future time. It purpose of the universe, especially
is also known as procrastination in when considered as the creation of a
superhuman agency or agencies,
 usually involving devotional and ritual  Buddhism - Work hard, no excuses, to
observances, and often containing a those who do not want to work, they
moral code governing the conduct of let their chance pass by. A good work
human affairs. It is a systematic set of ethics and a great attitude, very little
beliefs that influences human will stand in your way. If you work
behavior. hard, rest well, is one of the values of
 8 Major Religions in the World practicing Buddhism is a focus on
 Taoism - Taoists believe such good centering and balance. The Buddhist
behavior is an essential part not only practice of mindfulness can be a key
of self-improvement but of improving to good business. Remember to be
the world as a whole. Taoism calm, and not to obsess too much
suggests that the ideal way for a about positive or negative feedback.
leader to run their country is by  Confucianism - Confucian ethics are
example. A good leader is one that the described as humanistic Confucianism
people respects and whose is the most profound and dynamic
instructions are willingly followed thought system in traditional Chinese
 Christianity - This religion culture. It is not surprising that
 also emphasizes a sense of justice in traditional Chinese business culture
business such as strict adherence to was deeply associated with
contracts, compliance with regulations, Confucianism.
and working for the benefit of the  Judaism - The Jewish business ethics
common good. Christians ought to is illustrated by the widely quoted
focus on how business impacts Talmudic tradition that in one's
individuals, the workers. They should judgment in the next world the first
be well-paid, and they should find their question asked is: "Were you honest
work meaningful and inspiring. in business?" Thus, in the treatment of
 Islam - For Islam, the source of rules workers, the Jews are obliged to pay
is the Qur'an. Islamic teachings place their workers on time, pay their
great emphasis on respect for ethical workers a living wage and treat their
and moral codes in human behavior. workers with dignity and respect. On
Islamic principles prevent abusing the side of the workers, it is important
people through putting restrictions on not to steal company time.
misleading advertisements. Under
Islamic law, if a seller sells an item by
making false statements, the buyer
shall have the right to cancel the
transactions.
 Hinduism - The third religion in the
world by several believers mainly in
India. The Tata Group is the most
respected business house in India.
The five core Tata values describe
their business processes.
1.) Integrity is to conduct business
fairly with honesty and transparency.
2.) Understanding is to care, show
respect, compassion and humanity for
colleagues.
3.) Excellence is to constantly strive to
achieve the highest possible
standards of work in the quality of
goods and services.
4.) Unity is to work with colleagues
and
5.) building a strong relationship
across the group, and with customers
and partners around the world, based
on tolerance, understanding, and
mutual cooperation and to continue to
be responsible.
 Shintoism - Work is understood to be
a self-expression of the great life
force, Japanese people try to unify
themselves with the great life force by
concentrating on their own work. For
Japanese, the company name is more
important than the job title, the
community they belong to is much
more important than what they do.