BUSINESS ETHICS

RESPONSIBILITIES AND ACCOUNTABILITIES OF AN ENTREPRENEUR

THE ENTREPRENEUR CHARACTERISTICS OF AN

- the term entrepreneur is originally a loanword
ENTREPRENEUR
from French and was first defined by the Irish
economist Richard Cantillon as a person who
3. ADAPTABLE AND FLEXIBLE
takes the risk for a new business venture and
accepts full responsibility for its outcome. ➔ an entrepreneur must be able to adapt and
- the word entrepreneur is believed to have been adjust the changes in the marketplace,
coined in 1800 by Jean Baptiste Say, a French products and trends, technology, and
economist. he defined the entrepreneur as a marketing strategies.
person who undertakes an enterprise, specifically ➔ one can become adaptable and flexible
a contractor who acts as an intermediary during changes but along the plans and
between capital and labor. goals of the organization without forgetting
that brainstorming with his team will be very
helpful. the virtue of temperance will be very
CHARACTERISTICS OF AN helpful.
ENTREPRENEUR 4. POSSESSES INTEGRITY
➔ as an entrepreneur and leader, it is important
one will find it difficult to become a successful
that one has “palabra de honor” (word of
entrepreneur if he does not possess the following
honor). “Keep your word!” there is a saying in
characteristics:
Tagalog, “wika at batong ihagis, di na muling
1. LEADERSHIP magbabalik”.
➔ a person who possesses leadership inspires ➔ a person’s integrity is something takes time to
confidence and trust from his employees and acquire out of good work and good
customers. impression and only a moment to undo all the
➔ a leader knows how handle a team in an good things done, as nothing destroys trust
ethical manner. and confidence when one breaks his word,
and no excuse for that.
2. VISIONARY
➔ as a good leader, he must possess a clear 5. APPRECIATIVE
and concise vision for the purpose and ➔ be openly generous with praise when
direction of his business organization. employees or whoever subordinate does
➔ a visionary leader knows to craft a well good or perform well. it entails no monetary
thought out plan to carry out the vision. price but a reward that can boost one’s
➔ the plan need not be expansive and morale and inspire to perform better.
elaborate but clear enough to lead the team ➔ just be careful and be stingy on praises when
towards the goals and objectives of the they are not really deserved.
business providing timelines and deadlines
and individual roles.

1
 BUSINESS ETHICS

CHARACTERISTICS OF AN EMPLOYEES/WORKFORCE
- the lifeblood of the business in today’s global
ENTREPRENEUR
business is its employees, the business’ human
resources, human capital or even called as the
6. HONEST AND FAIR-MINDED
intellectual capital of the business organization.
➔ leaders must always maintain objective - responsibility of business towards
decisions and fair treatment of subordinates employees/workforce is in the form of training,
because dishonest and biased behavior are promotion, proper selection, fair wages, safety,
easily noticed even when they are done in health, worker’s education, comfortable working
the most subtle ways. conditions, allowing them participation and
➔ to maintain successful teams, playing decision-making as a sign of empowerment.
favorites is extremely discouraged and - the quality of worklife with emphasis on work-life
instead allow everyone to do his fair share balance of the employees must be of paramount
and excel in their own ways. consideration. the workers should be offered
incentives for raising their performance. mental,
RESPONSIBILITIES AND physical, economic, and cultural satisfaction of
employees should be taken care of
ACCOUNTABILITIES OF
ENTREPRENEURS
THIS RESPONSIBILITY CAN BE
- entrepreneurs and their corresponding businesses
depend on society for markets where their BROKEN DOWN AS FOLLOWS:
products are sold to customers, human resources,
and their skills for production of their goods and 1. WORKPLACE SAFETY
services. ➔ Monitored by Occupational Safety and
- it is the society that provides the business with its Health Administration. the Department of
existence, sustenance and encouragement. Labor and Employment through its Rule 1000
Being dependent on society, therefore, business covers the workplace safety of
poses a lot of responsibilities toward its different workers/employees in all sectors whether in
sectors, its stakeholders made up of its the industrial enterprise, agricultural
employees, consumers, owners and shareholders, enterprise, or dry dock whether on a
government, suppliers, and the environment. permanent or temporary condition.

2. QUALITY OF LIFE ISSUES

THE FOLLOWING ARE BELIEFS THAT ➔ balancing work and family through flexible
GUIDE SOCIALLY RESPONSIBLE work schedules, subsidized childcare, and
regulation such as the Family and Medical
BUSINESS PRACTICES
Leave Act of 1993. Healthy employees are
assets of the company because they are
1. people do their best with a balance of work
productive.
and family life.
➔ employee productivity includes a few
2. organizations perform best in healthy
universal factors: nutrition, rest, human
communities.
engagement, physical movement and
3. organizations gain by respecting the natural
exercise, and mental and intellectual
environment.
challenge. how one feels about the job is
4. organizations must be managed and led for
equally important much that most of the
long-term success.
waking hours of the person working are spent
5. organizations must protect their reputations.
in the workplace.

2
 BUSINESS ETHICS

THIS RESPONSIBILITY CAN BE THIS RESPONSIBILITY CAN BE

BROKEN DOWN AS FOLLOWS: BROKEN DOWN AS FOLLOWS:

2. QUALITY OF LIFE ISSUES 5. SEXUAL HARASSMENT AND

➔ physical issues like chronic pain, headaches, SEXISM
or low energy, carry over into the ➔ it is unlawful for organizations to discriminate
employee/worker’s jobs affect productivity. on the grounds of gender, gender identity,
3. ENSURING EQUAL OPPORTUNITY race, religion and belief, sexual orientation
ON THE JOB and disability in employment and training and
➔ providing equal opportunities to all in the provision of goods, facilities and
employees without discrimination; many services, except in very limited circumstances.
aspects regulated by law. small businesses protection from discrimination on the grounds
become vulnerable to negative effects of of age currently covers employment.
skills mismatch in a local workforce.
➔ these businesses often do not have the OWNERS AND SHAREHOLDERS
resources or capacity to provide the
- business is accountable towards owners and its
extensive on-the-job training that may be
shareholders for managing business profitably,
required to up skill new workers to meet
ensuring fair and regular return on capital
employer needs.
employed, and consolidating financial position of
➔ however, small businesses can also be ideal
business, guaranteeing capital appreciation for
candidates for workforce development
the business to withstand any business
organizations endeavoring to place workers.
contingencies, downturns and remain
4. AGE DISCRIMINATION competitive in the market.
➔ DOLE – IRR of RA 10911 February 3, 2017
protects workers age 40 or older. The SHAREHOLDERS
Department of Labor and Employment issued - who are the owners of business should be
on February 3, 2017 the implementing rules provided with correct information about the
and regulations (IRR) of Republic Act No. company to enable them to give them a true
10911, otherwise known as the “Anti-Age
and fair position of the company to enable them
Discrimination in Employment Act.”
to decide about further investments. they should
➔ The law aims to promote the employment of
be kept fully informed about the working of the
persons based on their skills and qualifications,
company for healthy growth of the business.
not their age, and prohibits arbitrary age
requirements in their employment, training,
and promotion (Palabrica, 2017).
COMPANY
- should provide a fair return on the investment
5. SEXUAL HARASSMENT AND
made by shareholders for failure to get proper
SEXISM dividend deter them to invest additional funds in
➔ avoiding unwelcome actions of a sexual the company. it is the obligation of the company
nature; equal pay for equal work without to make profits for the shareholders. company
regard to gender. should strengthen the share prices by its growth,
innovation, and diversification but, at the same
time, shareholders shall also offer wholehearted
support and co-operation to the company to
protect their own interests.

3
 BUSINESS ETHICS

INVESTORS THE FOLLOWING ARE THE BASIC

- protected by the Securities and Exchange
RIGHTS OF THE CUSTOMERS:
Commission and state regulations.

4. THE RIGHT TO BE HEARD.

CUSTOMERS
➔ ability of consumers to express legitimate
- business organizations must be responsible to
complaints to the appropriate parties. the
ensure that customers enjoy their basic rights as
concept of ‘consumerism’ has come up to
mandated by Consumer Act of the Philippines
protect the rights of consumers. even the
(R.A. 7394).
government is interfering in a big way to
- the Department of Trade and Industry is
protect the interests of consumers through its
responsible for enforcing the provisions of the Act.
different agencies.
With respect to food, drugs, cosmetics, devices
and hazardous substances, the Department of
Health is the agency that oversees these COMMUNITY AND THE GENERAL
products. PUBLIC
- the basic objective of business is to develop,
THE FOLLOWING ARE THE BASIC produce and supply goods and services to
RIGHTS OF THE CUSTOMERS: customers. this must be done in such a way as to
allow companies to make a profit that it can use
again not just for its own but for the society.
1. THE RIGHT TO BE SAFE.
- responsibility of business towards community and
➔ safe operation of products, avoiding product society includes spending a part of profits towards
liability. quality goods and services should be civic and educational facilities and even some
produced and supplied. distribution system philanthropic endeavors such as:
should make goods easily available to avoid
artificial scarcities and after sales service
PUBLIC HEALTH ISSUES
should be prompt.
- addressing issues on dangerous products such as
2. THE RIGHT TO BE INFORMED. alcohol, tobacco, vaccines, and steroids. public
➔ avoiding false or misleading advertising and health initiatives include efforts to promote free
providing effective customer service. to avoid and open information encourage informed
being misled by wrong claims about products decision making and make informed choices,
through improper advertisements or protect individuals from harm by other individuals
otherwise, the consumer should be provided and groups, and facilitate action to promote and
full information about the products including protect health brought by misinformation.
their adverse effects, risks, and care to be example of this is the graphic warnings on
taken while using the products. tobacco packages and anti-tobacco advertising
to discourage smoking.
3. THE RIGHT TO CHOOSE.
➔ ability of consumers to choose the products
and services they want. buying capacity and
consumer preferences should be taken into
consideration while deciding the
manufacturing policies. the care must be
exercised in supplying the goods of quality
which has no adverse effect on the health of
consumers.

4
 BUSINESS ETHICS

PUBLIC HEALTH ISSUES THE FOLLOWING ARE EXAMPLES OF

- limiting promotion of tobacco and alcohol
THIS ENDEAVOR OF
reduces the profits of these companies and even
the government for the taxes they have to pay; ENVIRONMENTAL SOCIAL
but helps individuals by increasing workforce RESPONSIBILITY:
productivity and reducing health care costs,
medical, economic and social costs as well as the 1. PRESERVATION OF NATURAL
illnesses and deaths caused by these products.
RESOURCES
laws banning smoking in public places are slowly
gaining acceptance despite the prediction of ➔ scarce natural resources are depleting at a
reduced hospitality industry profits and issues on very fast pace as an answer to the growing
the infringement of personal freedoms. needs of the ballooning population. finding
- the health benefits tend to outweigh the alternative sources of energy can help save
opposition of some sectors especially when harms the forests. trees cut down for pulp and wood
caused by alcohol drinking in the form of uses can be minimized, the use of coal can
vehicular accidents and street brawls due to be reduced by alternative source of energy.
drunkenness, newer examples of actions that alternatives for energy called green energy
prevent harm by others are the elimination of which are classified as renewable energy can
artificial trans fats from the food supply, which be wind turbines, solar power panels,
protects people against a contributor to hydro-electric plants. renewable energy is an
cardiovascular disease, and ignition interlock essential part of the country's low emissions
devices in vehicles, which can protect the public development strategy and is vital to
from convicted drunk drivers. addressing the challenges of climate change,
energy security, and access to energy.
➔ green energy is any energy that reduces the
PROTECTING THE ENVIRONMENT
impact on the environment by decreasing
- business should protect the environment which waste or reducing the use of fossil fuels. the
has acquired great importance all over the world. use of energy efficient lighting systems using
business can discharge the responsibility of LED lamps are also encouraged coupled with
protecting the environment. businesses can do the installation of solar panel systems to
many things to protect the environment even if reduce the use of electricity. when businesses
the business is not green-conscious. examples of institute green energy systems, they serve as
these business organizations are the supermarkets role models to their customers and increase
and department stores who refrain from using awareness of environmental issues. businesses
plastic bags and substitute them for paper bags. frequently can save money by instituting
in this way, even the customers become green policies, and some green energy
conscious of the program, inculcating remodeling projects can make the business
compliance to local and national laws. eligible for a tax deduction.

5
 BUSINESS ETHICS

THE FOLLOWING ARE EXAMPLES OF THE FOLLOWING ARE EXAMPLES OF

THIS ENDEAVOR OF THIS ENDEAVOR OF
ENVIRONMENTAL SOCIAL ENVIRONMENTAL SOCIAL
RESPONSIBILITY: RESPONSIBILITY:

2. PREVENTING WASTE BUSINESSES 2. PREVENTING WASTE BUSINESSES

➔ tend to produce large quantities of waste ➔ policies that encourage customers to reduce
from excess packaging to uneaten food and their waste -- such as offering a discount for
use of non-biodegradable materials to using reusable bags or providing a recycling
minimize labor and the use of water. these bin at the business -- can help businesses
wastes produce a huge environmental toll become leaders in the environmental
through increased deforestation, greater use protection movement. offering disincentives
of energy and filling up landfills. waste for waste, such as charging a fee for plastic
mismanagement has serious environmental bags, also is helpful. example of this is the
effects. the law on solid waste management ordinance of selected cities and
was crafted in response to the looming municipalities in avoiding the use of plastics
garbage problems in the country, making the but instead paper bags or carton boxes.
passage of the Republic Act (RA) 9003 or the awareness on waste reduction can be raised
Ecological Solid Waste Management Act of through promotions. retail establishments
2000, a landmark environmental legislation in especially supermarkets offer promotions for a
the Philippines. below is the copy of the law free item or discounted prices for selected
to be the guide of the country’s different items if customers bring recyclable bags. the
political subdivisions that include the different local government or even selected business
individuals and businesses. by using recycled establishments especially those on food
products, businesses can reduce their production can sponsor community garden
environmental impact. or offer classes on environmental issues. do
some campaign on patronizing businesses
which do green practices.

CORPORATE PHILANTHROPY
- cash contributions, donations of equipment and
products, and supporting the volunteer efforts of
company employees. some businesses also put
up their own foundation, grants and aids in the
form of education. when disasters, a lot of
business organizations do their share in terms of
rehabilitation and providing basic services to the
calamity-stricken communities.

6
 BUSINESS ETHICS

ETHICAL ISSUES IN BUSINESS UNETHICAL BEHAVIOR IN A

- ethical Issues in business are generally discussed
COMPANY CAN ALSO:
as those pertaining to customers,
employees/workforce, government, the public or
1. HARM SALES OF GOODS
the society in general and the environment.
almost every company has a Code of Ethics that ➔ customers may boycott goods produced by
governs the behaviors and actions of individuals a company known for unethical behavior
in the organization; however, sometimes the and will harm the sales.
Code just becomes the rotting bylaws that only 2. LEAD TO A DROP IN STOCK PRICE
the Human Resource Department is aware of.
➔ investors will be unwilling to buy shares from
ethics in the workplace concerns different
companies known to transact business
relationships: the management toward its
dishonestly and will lead to drop in stock
employees, the employees toward the
price. investing in dishonest firms will result in
management, between employees and
poor returns. dealing with immoral individuals
management and employees toward the
will build malice and mistrust which is
customers. It is in their relationships that practices
contagious that may lead to lower
can either be ethical or unethical. In the present
productivity, conflict that can trifle the
business environment, workers with high moral
company.
standards become helpless against colleagues
➔ Filipino values make workers hesitant to turn in
who do business abuse for fear of straining
colleagues to proper authorities only allowing
relationships.
the company to manage such. it is therefore
- an employee working for an employer or
the responsibility of the company to provide
company who do unethical, deceptive practices
processes and policies that should focus on
like stealing company supplies rationalizing that
the anonymity of the employee who turns in
the company will not suffer; dishonest
the unwanted behavior.
co-employees who do not report their
➔ employees should also know that there will be
attendance and do other business while inside
repercussions for their actions and disciplinary
thee office will directly affect the other
measures will always be taken, no matter
employees. In the long run, these practices can
what the circumstances, on those guilty of
affect the company adversely through higher
unethical conduct
cost of production, business failure and unhealthy
working conditions.
ETHICAL MARKETING
- it seeks to promote honesty, fairness, and
responsibility in all advertising. it is more of a
philosophy that builds relationships between the
company and the customer. it creates value to
the customer by providing goods and services
according to their needs and wants. it also implies
as the application of marketing ethics not a hard
and fast list of rules, but a general set of guidelines
and processes to assist companies in conveying
information to the customers as they evaluate
new marketing strategies. some marketing
strategies used may be found unethical, but they
are not necessarily against the law; but ways to
be competitive and sustainable in the market.

7
 BUSINESS ETHICS

BELOW ARE THE DIFFERENT FORMS BELOW ARE THE DIFFERENT FORMS
OF WHAT CAN BE CONSIDERED AS OF WHAT CAN BE CONSIDERED AS
UNETHICAL ADVERTISING: UNETHICAL ADVERTISING:

1. BAIT AND SWITCH ADVERTISING. 4. EXAGGERATION OR PUFFERY

➔ an unethical advertising technique that ➔ an advertising technique that is both fun and
involves attracting customers by advertising a effective. this easily captures attention
certain product or service at a bargain price through the workings of visuals, lighting of
an inexpensive item they may be interested things or circumstances that are mostly
in, and once capturing their attention, impossible. it might be something hilarious,
changes the scheme by making the product awesome, and thought-provoking. the
unavailable and then directing the consumer marketer usually exaggerates the benefits,
to a more expensive product. make the visual stand out to appeal to senses
and make the consumers believe or imagine
2. ADVERTISING FOR CHILDREN.
by using models and props that make the
➔ children consume huge amounts of
product stand out.
advertising without being able to evaluate it
➔ by amplifying or exaggerating the benefit,
objectively. exploiting this innocence is one of
consumers tend to believe or to the least
the most common unethical marketing
become curious to purchase the advertised
practices. since children are the most
product. puffery makes use of statements that
vulnerable to advertisements because they
may not be verified.
still do not know how to differentiate reality
➔ examples of this may be the words like “the
and fantasy. they start believing in anything
best tasting”, “100% or 99% germ-free”,
and everything they see without the least bit
“fastest relief”, etc.
of awareness that what is shown could just be
a fictitious representation of reality which 5. MISLEADING ADVERTISEMENTS.
apparently differs a lot. ➔ as part of the goal of companies to ensure
consumers get competitive prices and
3. DECEPTIVE ADVERTISING
product choice, strategies of marketing result
➔ also known as false advertising, this refers to
in misleading advertising. this occurs when a
a manufacturer's use of confusing,
claim about a product or service is materially
misleading, or blatantly untrue statements
false or misleading, to persuade the
when promoting a product. it is the issue of
consumer to buy it.
pushing the truth and making false claims.
➔ an example of this is on energy drinks that
ethical advertisement should determine if the
make people believe that this is needed to
product is “scientifically proven” or if “results
become more productive and maintain
are guaranteed”.
health.
➔ examples of this are diet pills even though
they are rarely, if ever, effective, people buy
and use them. this is because some diet pill
companies use exaggerated and
manipulative claims to essentially trick
customers into buying these products.

8
 BUSINESS ETHICS

- Quid pro quo sexual harassment is committed

BELOW ARE THE DIFFERENT FORMS
when a person demands, requests, or requires
OF WHAT CAN BE CONSIDERED AS sexual favors from another person in exchange for
UNETHICAL ADVERTISING: another thing such as hiring for employment,
reemployment, or continued employment,
6. SURROGATE ADVERTISING. granting favorable compensation, terms of
➔ in certain places there are laws against conditions, promotions, or privileges. refusal to
advertising products like cigarettes or alcohol. accept sexual favors would mean discrimination
Surrogate advertising finds ways to remind or deprivation of employment opportunities.
consumers of these products without
referencing them directly. alcohol in the INAPPROPRIATE COMPUTER USE AND
Philippines is advertised even though local TIME STEALING
governments prohibit drinking sprees along - office computers are intended for official work.
the streets, advertisements can still when employees use the company computers for
encourage such although advertisers attach personal purposes like in personal social media,
“drink moderately”. unethical behaviors of personal e-mail that is not work-related, personal
companies can lead to failure when shopping on-line and random internet-surfing for
customers do not want to feel manipulated personal purposes are all part of inappropriate
by the brands they like. ethical practices and unethical use of computers.
anchored on truth and honesty can lead to - these actions at the same time are categorized
long term relationships with customers and as “stealing” time from the company. "Stealing"
improve the image of the brand. if a product time from the company since the company is
lives up to the claims made in its advertising, it compensating the employees according to their
reflects positively on the entire company. time spent in the office and receiving no
consumers will feel that the company productivity in return. in addition to time spent on
invested in the quality of the products and aimless Internet surfing, time misuse can consist of
the value they provide. extending breaks beyond the allotted time,
congregating around with coworkers, or
SEXUAL HARASSMENT engaging in lengthy gossip sessions during
working time.
- sexual harassment is both illegal and unethical
- others even falsify time sheets, come to work late
practice that confronts many organizations. it lies
or leave early; while others do run personal
within the broader context of sex discrimination
errands while traveling on company business or
and inequality of opportunity in the workplace.
simply while away the time rather than go back
- it is an act or a series of acts involving any
to office work.
unwelcome sexual advances, request or demand
for a sexual favor, or other verbal or physical
behavior of a sexual nature, committed by an
employee or official in a work-related, training- or
education- related environment.
- In a work-related or employment environment,
this may be committed by an "employer,
employee, manager, supervisor, agent of the
employer, any other person who, having
authority, influence or moral ascendancy over
another in a work environment, demands,
requests or otherwise requires any sexual favor
from the other." ([Link])

9
 BUSINESS ETHICS

UNFAIR COMPETITION EXAMPLES OF UNFAIR TRADE

- unfair competition is an umbrella term involving
PRACTICES ARE GIVEN BELOW:
deceptive or wrongful business practices that
economically harm both consumers and business
3. WITHHOLDING OF SOME
organizations. unfair competition includes some
economic torts like false or misleading IMPORTANT INFORMATION
advertisements. dumping of imported goods in DURING THE PURCHASE OF GOODS
the local market is another form of unfair OR SERVICE.
competition. like the case of imported garlic that
➔ this happens in insurance claims. since
commands lower prices than the local produce
contracts are tedious to read, explanations of
hurts local producers. Taiwan has the capacity to
some provisions may be withheld. an
export low-priced garlic since garlic bulbs are
insurance was offered which stated that the
considered their reject products since their main
paying period was 5 years but since it was not
consumption is on the stalks
made clear to the customer, the payback
was 7 years.
EXAMPLES OF UNFAIR TRADE
4. MISAPPROPRIATION OF TRADE
PRACTICES ARE GIVEN BELOW:
SECRETS
➔ stealing the secrets of another company
1. TRADEMARK INFRINGEMENT
when one wants to put up a similar business. a
➔ a competing company of a well-known
baker who already know the secrets of the
product to sell its own uses the logo of the
cakes and pastries put his own bakeshop and
known company. sometimes the logo is also
entice the customers by offering a lower cost
used on other items that serve as accessories.
of products.
an example of this would be the logo of
“Starbucks” which is used as a trademark of 5. EMPLOYEE PIRACY
cups, but which are not actually produced by ➔ change in the company is inevitable and
the company. it is being patronized since the some companies do this by recruiting outside
price is much lower than the company employees who have the expertise they
produces. need. some companies resort to enticing
employees of a competitor company by
2. SHORTCHANGING THE CUSTOMER
offering a higher salary or additional benefits.
➔ this practice does not only mean failure to
give the right amount of change to a 6. RESTRAINING WORKERS TO JOIN
customer after the sales, which happens LABOR UNIONS
when customers are too trusting that they do ➔ an organization joined by workers labor as
not bother to count their change anymore. part of their union right is to protect their
for goods that are difficult to ascertain the common interests and improve their working
real weight, count and contents (match conditions.
sticks, paper, and contents of canned goods) ➔ it is the right of workers and employees to
or even services when customers are not form, join or assist unions, organizations, or
really aware of the inclusions of the services associations for purposes of collective
(spa, salon services, and restaurant). bargaining and negotiation and for mutual
aid and protection and negotiate for
favorable working conditions. but there are
some companies which as a condition make
their workers sign a waiver not to join or form
labor union.

10
 BUSINESS ETHICS

RECKLESSNESS
EXAMPLES OF UNFAIR TRADE
- recklessness might be the result of irresponsible
PRACTICES ARE GIVEN BELOW: actions or negligence on the part of the
companies that lead to unethical practices. this
6. RESTRAINING WORKERS TO JOIN may be in the forms of different neglect of duties
LABOR UNIONS and failure to comply with legal practices.
➔ this may be voluntary, but for a worker who is
in dire need to work, this becomes a
THE FOLLOWING ARE EXAMPLES OF
condition for acceptance to work.
RECKLESSNESS OF SOME BUSINESS
ORGANIZATIONS:
ENVIRONMENTAL PARASITISM
- a business organization that draws its resources 1. a company that fails to remit the SSS or
from the local community both from raw materials Pag-ibig and Philhealth contributions of its
to human resources but fails to reinvest and employees can result to adverse effects that
develop the community is an act of parasitism. may even lead to the company paying
when this business company gives low pay to its penalties.
local employees because it knows that they have 2. a business that does not record its sales for tax
no other options is a sign of exploitation. logging purposes can lead to a lot of penalties.
companies must be able to do reforestation. 3. non-payment of business taxes on time.
what approaches can be done by a company 4. failure to secure the basic requirements for
which depends on the environment for its registration of business (e.g. business permit or
sustenance? registration with the Securities and Exchange
Commission).
ON PEOPLE
- community workforce should not only be UNETHICAL PRACTICES IN THE PUBLIC
provided with decent mandated salaries.
SECTOR
healthcare facilities and training can be
provided. If the company can afford, the children - Graft and Corruption Graft is a form of political
of the workers should be given the chance to corruption, being the unscrupulous use of a
have the necessary education. politician's authority for personal gain. the two
words are often used as an encompassing
unscrupulous act because most of the time
ON RESOURCES
money is involved.
- sustainability and not exploitation should be the
principle to ensure not only the profit but the
continuous livelihood of the locals.

ON THE ENVIRONMENT
- the company must ensure the preservation of the
environment through the proper waste disposal
and the proper control of pollution.

11
 BUSINESS ETHICS

CORRUPTION BRIBERY AND INFLUENCE PEDDLING

- is often heard in the public sector but can also - bribery occurs when a person of public authority
exist in the private sector. the word "corruption" is offered, and accepts, some personal benefit in
means the abuse of public trust for private the form of money, property, or free services in
purposes. exchange for performing some action. example is
- corruption may exist independently of any voting for legislation that will benefit the giver or
financial benefit. an individual abuses the public turning a blind eye to illegal activities. one
confidence placed in him to serve his own common form of bribery is influence peddling.
interests or those of the group to which he - this happens when a corporation or a private
belongs. the external factor intervening in the individual approaches a political figure who can
decision making process influences the influence a major decision regarding his business.
unwarranted benefit to the decision maker or the influential person is offered a huge amount of
executive in the form of a gratuity or the promise money to twist the law or defer a decision
of a gratuity. regarding unethical practices of the company.
- a businessman, working within the law, who slips - example of this is politician who could influence
an inducement across the table is generally the non-closure of establishments that harm the
pursuing an end corresponding to the interests of environment; or government officials who could
his company. another area very propitious to secure big loans from government’s financial
corruption is nepotism. this is a phenomenon that institutions beyond what is stipulated by the law.
is difficult to pin down but, since the criterion of
competence is always replaced by favoritism, BRIBERY AND INFLUENCE PEDDLING
loyalty, and blood and even affiant relationship
- conflict of interest occurs when a public official’s
that can influence future decisions.
private interests are such that they may influence
the performance of his or her public duties. the
IMPROPER USE OF GOVERNMENT concern here is often the same as with bribery
PROPERTY and influence peddling. public servants and
- ethical concerns regarding government property elected officials are expected to exercise
are not only limited to theft and fraud, but also impartiality and objectivity when performing their
the use of public property by public officials for official duties and should act in the public’s best
private benefit. this includes, using one’s office interests. when there is conflict of interest,
telephone for personal long-distance calls, or however, there is a concern that the public
using government vehicles for personal official may favor some interest other than the
transportation. such abuses of government public.
property are not exactly theft. - self-dealing is one of the most obvious ones. this
- the public official is not actually stealing the office occurs when an individual’s activities in his/her
telephone or the government vehicle. instead, official capacity involve dealing with him/herself
the issue concerns the purpose for which the in a private capacity, often for personal benefit. a
government property is being used. classic example is a public official using his/her
- there is an expectation that equipment and office to grant to their own private company the
transportation will be used only for activities contract for the government projects.
associated with the performance of public duties, - as part of transparency, public bidding is a
and not for purely personal reasons or for private requirement for projects in the government and
benefit. invitation to bid is placed on media for public
information. contracts can be awarded also to
private individuals and companies who promise
“commissions” for getting the deal.

12