Business- Ethics-Q3- Module-3 PDF

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Summary

1. It means “to be liable to explain or justify one’s action and decisions”.
A. Accountability B. Fairness
C. Stewardship D. Transparency...

Description

Business Ethics and Social Responsibility Quarter 3 – Module 3: Code of Ethics in Business

What I Need to Know

Few years from now, you will be employed whether in a public office or in a private enterprise. As an employee, it is very important that you display good ethics, especially in your workplace. This module was prepared for you so that you will have a good interpersonal relationship with all the people around you, specifically with the ones you will work with. Additionally, you are expected to: 1. 2. 3. 4.

define ethics; explain why ethics is important in business; classify the given ethical issues; and create a good situation from the choices given.

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What I Know

Directions: Match the items in Column A to its description in Column B. Write your answers on a separate sheet of paper. A

B

1. Ethical Issues in Production

A. Tasks include hiring and performance evaluation

2. Ethical Issues in Sales and Marketing

B. Tasks involve trading practices and conditions, and tax payments

3. Ethical Issues in Finance

C. Tasks involve protection of consumers and honesty in delivery

4. Ethical Issues in Human Resource Management

D. Task includes that its products do not inflict unnecessary harm

Directions: Read each statement below and classify it according to its ethical issue. Write only the letter of your answer on a separate sheet of paper. A. B. C. D.

Ethical Issues Ethical Issues Ethical Issues Ethical Issues

in Production in Sales and Marketing in Finance in Human Resource Management

5. 6. 7. 8.

XYZ Company does not accept members of LGBTQIA+ community. Reggie’s hotdogs are made under strict processing standards. The company supervisor orders office supplies from her husband’s store. Wyn Mobile, a new brand of computer, launched its new laptops at an overpriced amount. 9. Marigold Enterprise rejects differently abled applicants. 10. Energybest Milk does not put on the can’s label the ingredients they used. 11. The food products of XYZ Corporation are well-sealed. 12. The administrative manager joins the contract bidding of their proposed new building. 13. Mr. Reyes, the accountant, bribed the personnel to reduce their company’s tax payable. 14. Cherry Beverages hired a famous commercial model for its product promotion. 15. Chocmuch Manufacturing Corporation delivers its products on time.

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Lesson

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Ethics in Business

What’s In

Your knowledge of the core principles underlying fairness, accountability, and transparency will be very helpful in this next lesson. Directions: Analyze each situation below and identify what core principle is applied. Write the letter of your answer on a separate sheet of paper. Your choices: A. fairness B. accountability C. transparency 1. The treasurer of a cooperative withdrew P20,000 cash from a bank. On her way to the office, she passed by the public market and since it was market day, there were a lot of people in the area. A man suddenly snatched her bag where the money was placed. Although shocked and sad, she promised to pay the P20,000 through salary deduction. 2. The manager of the company ordered materials for their office extension. He/she declared the actual amount and attached the official receipt for future reference. 3. The boss noticed that his/her two clerks were not talking to each other. He/she ordered the two to come to his/her office one at a time to listen to both sides before he/she decides.

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What’s New

Directions: Read and understand the situation. Write your answers on a separate sheet of paper. Chona opened an online food service for an additional income. She hired one female helper in the kitchen and two delivery boys. The business was doing very good for a month. But one day, she got a call from an online client complaining that the food delivered to her was already spoiled and could not be eaten. He/she was demanding for a refund. If you were Chona, how would you handle the situation? ______________________________________________________________________________ ______________________________________________________________________________

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What is It

Definition of Ethics The term Ethics is derived from the Greek word ethos which means “characteristic way of thinking”. Ethics, as a science, does not only evaluate the morality of our human conduct but also provides us with a common understanding of the universal, objective, and irreversible moral principles that should govern our human behavior and guide our moral decisions (Roa, 2011). Ethics are moral principles that guide the conduct of the individual (Racelis, 2017). These are rules of behavior based on ideas about what is morally good and bad (Merriam-Webster Dictionary).

Why is ethics important in business? Ethical conduct, whether at the corporate, professional, or personal level, is a direct reflection of the principles and values which regulate the person and the institution he/she represents. Organizations establish their own culture that is socially expressed as their ideals. Such principles or ideals have an impact on the relationships within the company, efficiency, prestige, performance and retention of employees, legalities, and the wider community they work in. As a result, most organizations generate a list of organizational values and codes of conduct to be recognized and adhered by all workers. Motivating and enhancing constructive actions, and at the same time building an atmosphere that prevents unethical behavior are vital obligations on the part of both administrators and workers.

How to Apply Ethics At the individual level, organizations ought to concentrate on improving and encouraging every employee to respect and adhere to ethical principles. Certain aspects of individual ethics have their roots in the individual. Achieving a strong sense of professionalism and recognizing certain professional decisions' ethical implications are the key components of education, individual reflection, and experience.

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Examples of Ethical Issues in Business 1. Ethical Issues in Finance Under the umbrella of finance and accounting, fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audits, external audits, and executive compensation are included, whereas specific corporate ethical/legal abuse includes insider trading, bribery/kickbacks, misleading financial analysis, and fraud on securities. 2. Ethical Issues in Human Resource (HR) Management Human Resource Management 's tasks include hiring and orientation, performance evaluation, training and development, labor relations, and health and safety concerns. Among the ethical issues are discrimination by age (the young ones are preferred over the older ones), gender preference, sexual orientation, race, ethnicity, disability, and physical appearance are all ethical issues that the HR oversees. 3. Ethical Issues in Sales and Marketing Marketing ethics deals with the beliefs, standards and/or morals that advertisers and marketing organizations will operate upon. Ethical marketing issues include promotion of obsolete or harmful products/services; openness about environmental threats; food ingredients (Genetically Modified Organisms); possible health hazards or financial risks; protection for the privacy and autonomy of consumers; truthfulness in advertising; and honesty in price and delivery. Some claim that advertisements can affect the views of individuals and their relationships with others, suggesting an ethical obligation to avoid distorting those expectations and relationships. Ethics in marketing includes practices in pricing, which involves unlawful acts such as price manipulation and price skimming. According to Hayes (2020), price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. On the other hand, advertising has raised concerns over offensive advertisements, objectification, and school marketing. 4. Ethical Issues in Production Business ethics typically deals with company's duties to ensure its goods and industrial procedures do not inflict unnecessary harm. Many products and services can be generated and used at zero risk and it can be difficult to assess the ethical path. However, there are consumers who patronize products that damage them, for example, tobacco products. Output can have adverse effects on the environment like air pollution, destruction of habitats, and urban sprawl.

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What’s More

A. Directions: Classify each phrase below to the corresponding column of ethical issues where it belongs. Write your answers on a separate sheet of paper. 1. destruction of habitats 2. encountered misleading financial reports 3. overweight applicants are not allowed 4. hiring limited to religious affiliations 5. honesty in prices 6. truthfulness in advertising 7. fraud on securities 8. harm to environment 9. manipulation in prices 10. exaggerated advertisements Ethical Issues: in Finance

in Human Resource Management

in Sales and Marketing

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in Production

What I Have Learned

Directions: Complete the given phrases below for at least three to five sentences. Write your answers on a separate sheet of paper. 1. Ethics means ________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 2. Ethics is important in business because ______________________________________ ______________________________________________________________________________ ______________________________________________________________________________

What I Can Do

Directions: What would you do under the following situations below. Write your answers on a separate sheet of paper. 1. Being an advertising artist, you were instructed by the manager to make two layouts, but you will only receive the price for one. 2. Your company would have to donate P 1,000,000 to charity, but you witnessed that the accountant only gave P 700,000 instead of P 1,000,000. 3. Being one of the food processors in a manufacturing company, you know that the ingredients listed on the label of your product are not completely true.

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Assessment Directions: Read each sentence below and classify each according to the ethical issue where it belongs. Write the letter of your answers on a separate sheet of paper.

A. B. C. D.

Ethical Issues Ethical Issues Ethical Issues Ethical Issues

in in in in

Finance Human Resource Management Marketing Production

1. XYZ Company does not accept members of LGBTQIA+ community. 2. Diggie’s hotdogs are made under strict processing standards. 3. The company accountant orders office supplies from her husband’s store. 4. Strawberry, a new brand of computer, launched its new laptops at an overpriced amount. 5. Lobo Enterprise rejects all differently abled persons. 6. Super Milk does not put on the can’s label the ingredients they used. 7. The food products of XYZ Corporation are well-sealed. 8. The manager joins the contract bidding of their proposed new building. 9. Lotlot, the accountant, bribed the personnel to reduce their company’s tax payable. 10. Robot Beverages hired a famous commercial model for its product promotion. 11. Chocolatey Much Manufacturing Corporation delivers its products on time. 12. RB Corporation’s employable age limit is 55 years old.

Directions: Fill in the blanks with the appropriate word/s to make each sentence correct. Write your answers on a separate sheet of paper. 13-14 The term ethics is derived from the Greek word _______ which means characteristic way of __________. 15. Ethics are rules of _______ based on ideas about what is morally good and bad.

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Additional Activities

Directions: Give a situation where ethics could be applied. Choose only one from the following places. Write your answers in three to five sentences on a separate sheet of paper. 1. At the airport 2. In the marketplace 3. In a public office

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Lesson

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Code of Ethics in Business

What I Need to Know You have learned that ethics is the interpretation of what is proper or not, what is right or wrong, what is just or unjust, and what is good or bad in human behavior. It allows you to establish the standards (norms) on which rational decisionmaking is guided and measured. In this next lesson, you will get to know about the Code of Ethics, and you are expected to: 1. explain what code of ethics is; 2. identify which of the common practices in the business organizations are acceptable or not; 3. suggest ways on how some common practices could be improved; 4. write a good script that reflects good decision; and 5. formulate a “code of ethics” that reflects core principles derived from analyses.

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What I Know Directions: Choose which action below is more acceptable. Write the letter of your choice on a separate piece of paper. 1. As an office employee, you need to _____. a. wear the prescribed office uniform b. wear something you are comfortable with 2. With the “No Smoking” policy of the company, Elvis, being a smoker, _____. a. will not follow because it makes him uncomfortable b. will follow because it could irritate the people around him 3. In observing the office hour, I _____. a. will report to my workplace before the time b. will report any time I want, anyway there is salary deduction 4. In advertising our business, we _____. a. will do anything, even to the point of inventing story, just to convince the consumers b. will only tell the truth, so as not to affect our company’s credibility 5. In bookkeeping, Elsa _____. a. will maintain two books of sales: one with the actual amount of sales, and one which has the adjusted amount for income tax purposes b. will maintain only one book of sales with actual amount Directions: Write True if the statement is correct and False if it is not. 6. 7. 8. 9.

The executives of the company should show perseverance. Whether your decision is fair to all or not, it doesn’t matter. Big businesses should conduct social surveys. The Human Resource Department may not fully review the offenses reported. 10. Each employee should be fully aware of the company’s principles. 11. The proprietor’s decision should be based on truth. 12. Never mind immoral activities in the company. 13. The management should protect the whistleblowers because they show concern to the company. 14. Every decision should build goodwill of the organization. 15. Ethics are social principles that guide the conduct of the individuals.

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What’s In Directions: Answer the following questions on a separate sheet of paper. What do we mean when we say ethics? Explain your answer in two to three sentences. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ What are the four ethical issues that you have learned? Discuss each in two sentences. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

Notes to the Teacher/Facilitator Review the students about ethics by citing examples. Emphasize the difference between Ethics and Code of Ethics.

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What’s New

The new Chief Operating Officer (COO) of Lee Ching Chemical Company, Max Ching, has found that the firm has been dumping its toxic waste into the local river for the last four years and falsifying information to officials about the amounts of alleged cancer-causing materials in the waste. The plant overseer claims there is no evidence that the waste will cause cancer. Besides, within a hundred kilometers downriver, there are only a few fishing villages. If the company had to treat the substance to neutralize its potentially harmful effects and transport it to a legal dumpsite, the operating costs of the company would rise to a level that could render the company uncompetitive. When the organization loses its competitive advantage, five thousand local workers can become unemployed and the economy of that town could collapse. Question: If you were the COO, what would you do? Why? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

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What Is It

A secret to success lies in recognizing the value of ethics in industry. The customers, management, and staff value honest and ethical practices. Hence, business ethics is vital because it helps maintain a great reputation, helps to avoid significant financial and legal issues, and ultimately benefits all involved. Therefore, it is highly suggested that each company formulates its own Code of Ethics to be used as a guide in its business operation. What is Code of Ethics? Code of Ethics is a set of rules about good and bad behavior. It is a guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values, and the standards to which the professional is held.

Saucer and Sims (2013) offer recommendations for developing Code of Ethics in business organizations: 1. Adopt code of ethics (use the Code of Ethics of other companies as a reference and modify according to the needs of the company). 2. Offer training on ethics (for management and employees). 3. Hire and foster individuals with ethical value. 4. Deal with immoral activities. Employees must know the implications and effects of making unethical actions, and should be ready to accept consequences. 5. Take constructive measures. For example, give rewards to employees who admit their mistakes. If the company is conscientious and smart, it can encourage warehouse workers to take responsibility for their mistakes and even praise them for coming forward, apologizing and ensuring that a faulty product is not purchased by the customer. At first it seems counter-intuitive to reward an employee for a mistake, but in the end, it provides everyone with the best result. 6. Carry out a social audit. Conduct survey to employees once in a while. 7. Cover all whistleblowers. These people detect illegal activities within organizations and disclose the actions to the authority or managers. A whistleblower who works sincerely, correctly reporting an issue, should be praised for his/her courage and integrity, as opposed to being disciplined and ostracized. If an individual blasts the whistle, it is possible that the company itself has failed internally to motivate and improve fair and ethical conversations. 8. Empower the defenders of integrity. Support those who work with honesty and integrity.

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9. Ensure executive commitment. The anonymity of those who report the problems should be practiced. 10. Communicate the principles of conduct within the company and across the industry. 11. Assign an officer who is clearly responsible for the enforcement of ethical standards. He/she can be consulted for ad...