Chapter 10 - Review question PDF

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Why is there a need to improve business ethics? There is a need to improve business ethics because it helps to maintain the company’s reputation, help avoid significant financial or legal issues and maintain the employee’s trust and loyalty, hence, everyone in the firm benefits. Moreover, when the m...

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1. Why is there a need to improve business ethics? There is a need to improve business ethics because it helps to maintain the company’s reputation, help avoid significant financial or legal issues and maintain the employee’s trust and loyalty, hence, everyone in the firm benefits. Moreover, when the management follows an ethical manner, employees will be influenced by it and will do so too. Employees make better decisions in less time with business ethics as a guiding principle. Thus, this increases productivity and overall employee morale. Employees who work for a corporation that demands a high standard of business ethics in all aspects, they are more likely to perform their assigned tasks at a higher level, too. 2. What is nature of the “Integrity Initiative Movement” led by the Makati Business Club and European Chamber of Commerce of the Philippines? The Integrity Initiative Movement is a private sector-led campaign aiming to strengthen ethical standards in business. It aims to help in diminishing the vicious cycle of corruption in the Philippines, which has not only exacerbated poverty but also obstructed the development of a competitive business environment that operates on a level playing field. It hopes to build trust in government, a more equitable society and fair market condition. Philippines will become a benchmark in the transformation process of any country regarded as highly corrupt to one that fosters an ethical and progressive business environment. On the other hand, the European Chamber of Commerce in the Philippines is a service-oriented organization whose main goal is tofoster close economic ties and business relations between the Philippines and Europe 3. Why should business organizations adopt a Code of Conduct? Code of conduct is a formal expression of the organization’s values and ethics. Business organization should adopt a Code of Conduct in order to:  Guide directors and senior executives as to the practices necessary to maintain confidence in the organization’s integrity  Promote responsibility and accountability of individuals for reporting and investigating reports of unethical practices; and  Ensure compliance with legal and other obligations to legitimate stakeholders. 4. What are the purpose of “Unified Code of Conduct for Business” as prepared by the Integrity Initiative Movement? The Code’s purpose is two-fold. First, it harmonizes existing ethical standards among business operating in the Philippines. Second, the Code finally communicates the signatories’ commitment to upholding high standards of ethics in all business transactions.

5. The Bishops-Businessmen’s Conference Philippines adopted the “Code of Ethics for the Philippines Business”. Name at least three rationales for its adoption. The three reasons why Code of Ethics for Philippines Business is adopted are, namely:  The Code seeks to express systematically and coherently the principles of business practices accepted and professed by Philippine business at its best, and seeks to apply these to current and changing needs.  It is the hope that this Code will serve as a general stimulus to renew and develop or amend existing standards, and that individual entities will expand and adopt it to the specific needs of their own organizations.  It is general Code intended to be influential rather than coercive. It is hoped that individual entities will consciously adopt and embrace it as a statement of principles and, having done so, will be unwilling to incur the sanction of adverse public opinion through failure to live up to the Code...