Business Ethics and Social Responsibility 3rd Quarter
Business Ethics and Social Responsibility 3rd Quarter
Business Ethics and Social Responsibility 3rd Quarter
Quarter
Prepared by:
SHANE LARA CARANAY PAREL, LPT.
Chapter 1: The Ethics Environment The categories based on level of moral judgement are the following:
1.1 Ethical Principles 1. Pre-conventional stage – where people make decisions based on concrete rewards and punishments
Ethical Principles guide and direct the performance and conduct of business leaders and their organization. and pressing self-interest.
Ethics is based on the identification of rules that should be direct people’s behavior. The identified rules are 2. Conventional stage – where people observe the rules according to the potentials of ethical behavior
determined by the principal ideals of an individual. held by groups or civilizations, such as society, family or peers.
Ethical Decision-making Process 3. Post-conventional stage – where people see beyond authority, laws and norms and follow their self-
chosen ethical principles.
Understand
The enactment of the Generics Act 1988 or Republic Act (R.A.) 6675 in the Philippines was spurred by consumer
all moral frustration over costly drugs and pharmaceutical products. The Generic Act promotes, requires, and ensures the
Determine the
standards. production of an adequate supply, distribution, use and acceptance of drugs and medicines identified by their
economic
generic names.
outcomes. Propose
Define complete Consider the convincing The globalization and urban sprawl issues are seen to drive small and medium enterprises out of the competition.
moral problem. legal The vibrant development in urban areas creates environmental and social challenges for most city officials.
moral
requirements. solution. Many Business Ethics and Social Responsibility (BESR) learners may not have firsthand knowledge or
Recognized Evaluate the experience of the aforementioned consumerism, pay disparity, globalization and urban sprawl issues.
all moral ethical duties. 1.2 Classical Philosophies and Belief Systems
impacts.
Ethical principles have evolved from classical philosophies and belied systems. Some basic concepts of the
classical philosophies of Socrates, Plato, and Aristotle are summarized below. The lives and the belief
systems of a few truth-seekers – St. Augustine, Buddha, Confucius, and Muhammad – are also synthesized
Selected moral philosophies presented as guides or ethical systems include the following: to enhance understanding of the ethical principles.
1. Universalism states that all people should uphold certain values, such as honestly, and other values that Socrates (c. 469 – 399 BC) is viewed by many as the founding figure of Western philosophy. He grew up
society needs function. during the golden age of Pericles’ Athens, served with merit as a soldier, but became best acknowledged as
2. Egoism defines satisfactory behavior as an act that takes full advantage of the consequences for an a questioner of everything and everyone.
individual.
3. Relativism bases ethical behavior on the opinions and behaviors of relevant other people. Plato (c. 428 – 348 BC) was a Greek philosopher whose family was one of the most distinguished in Athens.
4. Utilitarianism seeks the greatest good for the greatest number of people. Plato’s The Republic is a treatise on idealism, which postulates that the world that we live in is not the real
world.
The problem is identified and the evaluation begins with focus on the following:
Plato’s philosophies and their contribution to ethical studies include The Composition of the State, which is
1. Economic outcomes or costs and/or potential profit of an option. built on the following:
2. Legal requirements or compliance with laws.
3. Ethical duties, which identify actions, are characterized as 1. Knowledge or wisdom, when present in the whole, will be inherent in the smallest part, and the one
Proud to receive acceptance thereof; which takes the lead and directs the rest
Capable of building a sense of community; 2. Courage or that part which goes inside an arena and battles in its defense
Can generate the greatest social good; 3. Temperance or control of certain desires and cravings
Willing to share benefits; 4. Justice or a universal principle that everyone ought to perform as a role in the community that best
Does not harm, especially the least among us; and suits his nature
Does not interfere with the right of everyone to develop their skills completely.
Aristotle was sent to Athens to study Plato’s Academy when he was seventeen, and he stayed there as a pupil God sent messengers to all nations. He sent Abraham to the Kingdom of Babylon, who called his people to
and teacher for twenty years. Aristotle started his own school called The Lyceum in 334 BCE, and was the tutor of discard the veneration of the idols.
Alexander the Great in 342 BCE.
One of God’s messengers was Muhammad, from the descendants of Ishmael, the son of Abraham. “To direct all
The treatise of Aristotle has contributed to the study of ethics, as exemplified in his postulates in The Good worship to God alone and none else and to obey His commandments” – this was the message preached by
Citizen and the Good Man. Muhammad. It is the same message of Islam preached by the previous prophets and messengers.
The Good Citizen and the Good Man “It is He who has sent amongst the unlettered people a Messenger from among themselves, to rehearse to
“it is possible to be a good citizen without possessing the excellence which is the quality of a good man. them His Signs, to sanctify them, and to instruct them in the Scripture and Wisdom – although they had
been, before, in manifest error.”
Prudence is the only form of goodness which is peculiar to the ruler.
(Source: Quran 62:2)
There are different kinds of citizens, and the name citizen is particularly applicable to those who share in the
offices and honors of the state.
Confucius was born in the year 550 BC, in a small village in the land of Lu, located in the western part of the
modern province of Shantung. His father was a poor military officer, but he could trace his descent from the
Evidence of these treatises may be shown in the Bill of Duties detailed in the 1987 Philippine Constitution. The imperial house of Yin. Sayings credited to Confucius, which are attributed to writings of his disciples, are included
‘offices’ and ‘honors of the state’ may be seen in the duties and rights enumerated in Article 4 of the 1987 in the study of ethics. A selected collection of Confucian sayings helps the readers in the study of ethical
Philippine Constitution. principles, in their life choices, and value systems.
The dissertations in St. Augustine’s City of God, Buddha’s All Is Vanity, Islam, and Confucian beliefs are The classical philosophies and belief systems are inherent in many present-day business principles, government
examples of how religious convictions have also contributed to ethics and its principles. policies, private sector programs, and personal practices. Plato’s conceptions of knowledge, courage, temperance
Cain and Abel were cited by St. Augustine as the ‘first parents of the human race.’ Cain was the first born, and he and justice may be observed in the home, school, residential, and business communities.
belonged to the city of men, while Abel, who came after him, fit into the ‘city of God.’ Some cases at home may include the various roles played by parents, children, and household help, each one a
St. Augustine hypothesized that for those who live by faith, earthly quests do not divert from God, but allow for veritable exhibit of the justice concept. In many business environment cases, the planning, leading, organizing,
endurance and ease in their burdens. Those who seek earthly advantages attain only those things that are and controlling functions are already comprised as parts of moral and ethical responsibilities. These management
supportive of mortal life. functions performed beyond legal responsibilities are clear examples of Plato’s knowledge principle. Quesada
(2011) has demonstrated the Zen application in the classroom setting, and Aristotle’s treatise in The Good Citizen
In St. Augustines’s City of God, the earthly and supranational cities are described. In the early city, peace is and the Good Man are embedded in Article 4, Bill Duties, of the 1987 Philippine Constitution.
attained for the sake of material goods, and war is taken up in order to attain this peace. There is lust for power in
the earthly city, and it is divided against itself, as in the conflict between Cain and Abel. In the godly city, there is 1.3 The Filipino Value System
order and tranquility, and the citizens, while on their pilgrimage in the earthly city, are not diverted from God. The value system of a given country is a combination of ethical principles, classical philosophies, and belief
In the Book The Life of Buddha and Its Lessons (Olcott, 2010), a group of volunteers translated doctrines from systems. The unique value system of a given country is also a product of its history and local customs and
Buddha’s life, summarizing value systems for business and personal transactions. The Book Buddha in the traditions. The Philippines and its value system is a creation of all of these influences.
Classroom: Zen Wisdom to Inspire Teachers (Quesada, 2011) demonstrates the use of Zen savings in the It is necessary for a business practitioner and student to examine the Filipino value system to evaluate its
practice of the teaching profession. Both books show explicit applications of business ethics in modern life. difference and/or agreement with ethical principles, classical philosophies, belief systems, and local culture. This
Although not immediately apparent, present life practices in personal and business environments are still study enables one to be guided in the distinctive value system of the Philippines and its impact on Filipino
influenced by the classical philosophies and beliefs systems. business practices.
The word Islam is an Arabic word, which literally means “submission of God,” and Muslims are those who willfully The visit of Pope Francis to the Philippines in 2015, coming closely at the heels of natural and man-made
submit to and actively obey God, living in accordance with His message. disasters – earthquake damage in Bohol, Cebu, and other provinces in the Visayas region; typhoon and storm
All the Divine Messages came to bring the life of the people into willing submission to God. For this reason, they surge damage in the Bicol and Visayas regions; and the Zamboanga siege – attest to the strong personal faith of
all share the name of Islam, or “submission,” derived from the same word as Salam, or “peace,” in Arabic. Filipinos.
Recovery efforts and the trials that accompany the loss of family and property were not easy, and many still go important factors in the development of personal alliance systems. Here, like in other categories, readiness to help
through formidable challenges. However, this admirable faith may deteriorate into fatalism, or the “Bahala na and one another provides the prime motivation for the relationship.
Diyos” (God will take care of things) mentality.
In the commercial context, suki relationships (market-exchange partnerships) may develop between two people
Respect for authority in the Philippines is founded on the explicit honor paid to elder members of the family, and who agree to become regular costumer and supplier. In the marketplace, Filipinos will regularly buy from certain
often, to anyone in a position of power. This is evident in the ‘fawning admiration’ accorded to popular political, specific suppliers who will give them, in return, reduced prices, good quality and often, credit.
entertainment, and sports personalities. When taken to extreme, this trait can develop into an oppression that
discourages self-regulating decisions and individual initiative. Suki relationships often apply in other circumstances as well. For example, regular patrons of restaurants, small
neighborhood retail shops, and tailoring shops often receive special treatment in return for their patronage.
However, some celebrities have taken advantage of this oftentimes militant admiration by leading their followers to However, suki does more beyond helping by developing economic exchange relationships. Because trust is such
more insightful issues as volunteerism. For example, at the wake of assistance operations after typhoon Yolanda, a vital aspect, it creates a platform for personal relationships that can blossom into genuine friendship between
entertainment figures gathered their fan bases for the repacking and distributing of donations. individuals.
Filipinos are sensitive to attacks on their own self-esteem, and develop an understanding of the self-esteem of Financiers, business people, prosperous landlords, high military officers, and national politicians, with the wealthy
others as well. Anything that might hurt another’s self-esteem is avoided or else, the relationship may come to an Philippine elite on top, compose pyramidal structures. The middle-class group includes civil servants, clerks with
end. relatively secure employment, teachers, merchants, small entrepreneurs, and property owners, while the informal
sector of the Philippine economy make out a living through peddling, occasional paid labor, and contractual labor.
Some manifestations of this traits may be traced to characteristics attributed to certain regions or provinces. This
concern for self-esteem helps to maintain harmony in society and within one’s particular circle. It may, however, It is helpful to review the Family Income and Expenditure Survey (FIES). It is a nationwide survey of households
encourage a readiness to sacrifice personal integrity to remain I the good graces of the group. done every three years by the National Statistics Office (NSO) in the Philippines. The FIES illustrates the
pyramidal structures, middle class, and informal sector in the country. The FIES is the main source of data on
Indeed, unity exists in the Philippines. However, this often takes more work outside regions and circles. There is, family income and expenditure.
for instance, the so-called religious sector vote, the provincial vote, or the entertainment personality vote that
remains to be significant factor in the conduct of elections. Man-made and natural calamities in recent years have, Philippine population statistics still show income level disparity, as seen in spending pattern for food, the major
however, attested to care given to those affected. This synergy is seen across regions, coming from different expenditure. For families in the bottom 30% per capita income group, expenses on food accounted for two-thirds
income levels and professions. Technology and the evolving population may well assist in a steady journey (62.3%) of the total family expenditure, followed by the expenditure on housing, water, electricity, gas and other
toward a Philippine society that is in agreement across perceived boundaries. fuels at 15.3%. Families in the upper 70% per capita income group spent 39.7% of their total expenditure on food,
and 21.5% on housing, water electricity, gas and other fuels.
Loyalty of a Filipino goes first to the immediate family. One’s support. Loyalty, and trust are given to immediate
family members. Beyond the closest kin, Filipinos habitually do not assume the same degrees of support, loyalty Chapter 2: Business Ethics
and trust.
2.1 Principles of Business Ethics
The mutual kinship system, known as compadrazgo, means godparent hood or sponsorship. Ritual kinship bonds
is a primary method of extending the group from which one can expect help in the way of favors, such as jobs, Ethics is a set of moral principles or values that may be general or professional. Appropriate personal behavior is
loans, or just simple gifts on special occasions. The ritual bonds are often sealed in ceremonial occasions (e.g., imposed by society and moral duties, and individuals are guided by general ethics. The practice of ethics above
baptism. Confirmation, and marriage). It is common to ask acquaintances who are of higher economic or social the requirements of the law that is selected by professionals is called professional ethics.
status than oneself to be sponsors.
Sets of moral principles or value systems foundations in the ethics environment – the classical philosophies, the
Under the concept of utang na loob (debt of gratitude), it is expected that the debtor will attempt repayment. religious beliefs, and values systems of countries, including the Philippines.
Saving another’s life, providing employment, or making it possible for another to become educated are “gifts” of
There are indications that the ‘small number’ of enterprises that are mindful of societal interest may be on the
favors that create utang na loob.
uptrend, as technology and customer watch groups that direct businesses toward ethical practices. The cost of
This concepts of debt of gratitude occasionally extends over years and decades, that even the subsequent the ethical and moral solutions is an expected deterrent.
generations of debtors still attempt repayment to those who provided “gifts” to their ancestors.
Socially desirable and ethical practices that may not entail additional cost or money, such as
Filipinos also extend the circle of social alliances with friendship. Friendship is often placed at the same level with
1. Serving an honest day’s work among the employee’s;
kinship as the most central of Filipino relationships. Certainly, ties among those within one’s group of friends are
2. Volunteering in waste management promotion, like recycling and preservation of the environment; Presidential Decree (P.D) 1586 established an environmental impact statement system.
3. Rejecting business products, television stations, and other media that promote objectionable shows; R.A. 6969 is concerned with the Toxic Substances and Hazardous and Nuclear Waste Control
4. Uprightness or truth in advertising; Act of 1990.
5. Production and delivery of organically-grown fruits and vegetables and other food products; and R.A. 8749 includes the Clean Air Act of 1999.
6. Preparation of and obedience to the business code of ethics. R.A. 9003 is concerned with the Philippine Ecological Solid Waste Management Act of 2000.
Most organizations opt to comply with their respective government’s structures as they operate and use the R.A. 9275 looks at the Clean Water Act of 2004.
resources of said environments. R.A. 9512 gives permission for the Environmental Awareness and Education Act of 2008.
An organization’s code of ethics is a formal document that states an organization’s primary values and the ethical The Corporation Code (Batas Pambansa Bilang 68) dictates the most important legal responsibilities toward
rules it expects employees to follow. It is good to be reminded that an enterprise also has its responsibility to its investors and owners, as it guarantees that the enterprise is managed in the interest of its stockholders. Section
3.3 on Corporate Governance details essential provisions of Batas Pambansa Bilang 68.
1. Investors and owner, for fair returns on their investments;
2. Customers, for safe products; The Consumer Act of the Philippines (R.A. 7894) details the legal responsibilities of enterprises towards their
3. Suppliers, for fair deals; and buyers, suppliers, tradesmen, and distributors.
4. Employees, for decent wages. The policy statement under R.A. 7894 mandates that the conduct of business and industry must implement
Sample codes of ethics of professional, service and manufacturing sectors often show common statements that measures for
address the needs of their investors, customers, suppliers and employees. Typical declarations include those 1. Protection against hazards of health and safety;
related to conflict resolution, disciplinary action, and compliance with labor laws for its employees. Statements that 2. Protection against deceptive, unfair, and unconscionable sales acts and practices;
address investor, supplier, and customer requirements may include respect for trade secrets, use of company 3. Provision of information and education to facilitate sound choice and the proper exercise of rights by the
assets and information, and fair business details. consumer; and
In the Philippines, the Management Association of the Philippines (MAP) has taken the lead in the practice and 4. Involvement of customer representatives in the formulation of social and economic policies.
inculcation of business ethics through its member-companies. The regular sessions of the organization allow for The implementing agencies tasked to ensure product safety under R.A. 7894 include the DOH for food, drugs,
valuation of the individual practice of business ethics in member-companies against MAP standards. cosmetics, devices, and substances; the Department of Agriculture (DA) for agricultural products; and the
Another important business ethics organization in the Philippines is the Philippine Chamber of Food Department of Trade and Industry (DTI) for consumer products not administered by the DOH and DA.
Manufacturers, Inc. (Food Chamber). Selected Food Chamber committees indicate participation of the The trade transactions for consumer products are guided by the Bureau of Product Standards (BPS) under the
organization and its members in the task of responsible, self –imposed moral guidelines, such as the following: DTI. Labeling requirements and price rates for foods, drugs, cosmetics, devices and substances are overseen by
1. Regulatory and Scientific Affairs the Bureau of Food and Drugs (BFAD) under the DOH. The DA’s Bureau of Agriculture and Fisheries Standards
2. Small and Medium Enterprise (SME) Group: As seen in the Big Brothers-Small Brother Program with (BAFS), the Bureau of Animal Industry (BAI), and the Bureau of Plant Industry (BPI) administer the export and
SMEs import standards of the Philippine Agricultural products.
3. Legislative Enterprises engaged in agricultural ventures need to be knowledgeable on the impact of laws promulgated for
2.2 Legal Responsibilities their guidance.
All business enterprise need to comply with a country’s laws and regulations. Obedience to local, national, and The NIN provides access to supply-demand and other data. An example of a working NIN is the Mango
relevant international laws constitutes legal responsibilities. A selection of essential laws that explain legal Information Network (MIN).
responsibilities of the Philippine enterprises includes the following: The MIN is an information service designed to take care of the statistics need of key players in the Philippine
1. Corporation Code (Batas Pambansa Bilang 68) mango industry. Its central node is at the Philippines Council for Agriculture, Aquatic, and Natural Resources
2. Consumer Act of the Philippines (R.A. 7894) Research and Development (PCAARRD) at Los Baños, Laguna. The node serves as a responsive node,
3. Minimum Wage Law equipped with advanced computer facilities connected to the Internet via PCAARRD’s network connection to the
4. Migrant Workers and Overseas Filipinos Act of 1995 (R.A. 8042) DOST. The MIN has established satellite nodes in Zambales, Iloilo and Davao.
5. Environmental legislation, which includes the following
The application for licenses of fishing vessels is administered by the municipalities, so investors in the fishing Orange for cosmetics
industry need to visit with their respective municipal offices to process their business requirements. White for medical devices
Red for household, urban, or hazardous
The organic Agriculture Act of 2010 (R.A. 10068) is one of the more recent laws that find relevance for new substances or products, including pest
investors. control providers
The creation of a National Organic Agriculture Board (NOAB) is included in the provisions and implementing rules Food Establishment Licensing Requirements The issuance of a License to Operate (LTO), whether
for initial, amended, or renewal purposes, requires
and regulations (IRRs) of R.A. 10068. The Bureau of Agricultural and Fisheries Product Standards (BAFPS) acts
the submission of the following:
as the technical and administrative secretariat of the NOAB.
Requirements stated in the checklist for the
Enterprises venturing into the growing organic products trends need to be familiar with the standards set by applications
BAFPS. Products registration, labeling requirements, and other business documents for the sale of organic Petition forms for food manufacturer, re-
products are administered by the BAFPS. packer, bottled water manufacturer, food
distributor (importer, exporter, wholesaler)
Plans and Programs Relevant Information Application forms for Sangkap Pinoy Seal
Philippines National Vehicle technology, on promoting the use of electric vehicles, such as electronic or Diamond Sangkap Pinoy Seal
Implementation Plan jeepneys and motorcycles, in partnership with the Department of Energy (DOE),
(NIP) on Environment local government units (LGUs), and with World Bank (WB) assistance
Improvement in the Travel demand management, on the introduction of bike lanes The Food and Drug Administration (FDA) of the Philippines oversees registration of food, drugs, cosmetics,
Transport Sector Low Freight and logistics, on the rationalization of logistics providers or operations medical devices, and other substances. It also issues licenses for manufacturers, repackers, and distributors,
Pollution- Low Emission Rail infrastructure, on the privatization of North rail Operation and Management whether these are wholesalers, exporters, and importers.
Emission control, standards, and regulation, on the regulation of second-hand
vessel or ferry. Enterprises engaged in or planning to invest in business activities need to check on the legal responsibilities for
Port infrastructure, on Solid Waste Management System their specific purpose.
Joint Administrative Failure to wear the standard protective motorcycle helmet, or failure to require the A selection of government activities addressing the agriculture, manufacturing, and service sectors that may be
Order No. 2014-01 back rider to wear the standard protective motorcycle helmet, under R.A. 10054
used to encourage legal responsibility practice of future Business Ethics Practitioners are as follows:
Revised Schedule of Wearing a helmet with a fake Philippines Standard (PS) or Import Commodity 1. Project NOAH (Nationwide Operational Assessment of Hazards) and DOST, providing information
Fines and Penalties for Clearance (ICC) sticker shall be tantamount to riding a mowing motorcycle without services and using cutting-edge technology for disaster prevention and mitigation
Violations of Laws, wearing a helmet. 2. Dengue Prevention and Control Program and DOH, providing detailed information on reduction of
Rules, and Regulations First Offense: 1,500 dengue infection
Governing Land Second Offense: 3,000 3. Busog Lusog at Talino (BLT) Feeding Program, schoolchildren feeding program through the Department
Transportation Third Offense: 5,000 of Education (DepEd), Department of Social Welfare and Development (DSWD), and the DOH
Fourth and Succeeding Offenses: 10,000 4. Metro Festival Paskong Pinoy and DTI, featuring holiday decor from indigenous materials, to urge
Another business opportunity is on bicycle sales. The creation of bike lanes may increase purchase of these patronage of Philippine décor manufacturing establishments
vehicles. 5. Participation in National Heritage Month by the Philippine Rice Research Institute, through exhibits of
Guidelines and Registration Relevant Information traditional farm implements.
Food and Drug Registration Requirements The issuance of a License to Operate (LTO) and The Minimum Wage Law entails the compliance of organizations with the minimum wages that their employees
Certificate of Product Registration (CPR) requires the are entitled to. The law is administered by the Department of Labor and Employment (DOLE).
submission of the following requirements stated in the
checklist for the applications in hard copy and DVD-R As of May 2016, the highest nominal wage rate for Philippine industry sectors was found to be in the National
format, using LTO data folder with color-coded CPR Capital Region.
folders.
Dark blue for food 454 Agriculture
Green for drugs 454 Service or Retail (fifteen or less workers)
454 Manufacturing (employing less than ten regular workers) 3. R.A. 8749: Clean Air Act of 1999 oversees the formulation of a holistic national program against air
491 Non-agricultures (including private hospitals with one hundred or less bed capacity) pollution that shall be implemented by the government, through proper delegation, and effective
coordination of function and activities.
The Philippines also looks after employees working in foreign countries through the Overseas Workers Welfare 4. R.A. 9003: Philippine Ecological Social Waste Management Act of 2000 calls for the institutionalization
Administration (OWWA) and the Philippine Overseas Employment Administration (POEA). of a national program that will manage the control, transfer, transport, process and disposal of solid
waste in the country.
The OWWA is the government welfare institution that protects and promotes the interest of the overseas Filipino
5. R.A. 9275: Clean Water Act of 2004 aims to protect the country’s bodies of water form population from
Workers (OFWs). For a USD25 membership fee, the OFWs are entitled to
land-based sources (industries and commercial establishments, agriculture, and community or
Social benefits (i.e., disability and dismemberment, death and burial benefits); and household activities)
Education and trainings benefits, which include predeparture education, scholarships, training, and 6. R.A. 9512: Environmental Awareness and Education Act of 2008 mandates to catalyze environmental
incentive programs. education in the country.
Enterprises that services the OFW population and foreign corporation employers of the OFWs are tasked to 2.3 Corporate Governance
review and establish repatriation programs in the event of natural calamities and/or political unrest in these
The term corporate governance has become an embodiment of ethics in the business environment. Corporate
countries.
governance is the set of procedures designed to ensure that the company is managed in the interest of the
The POEA was created in 1982 under Presidential Decree 797, and reorganized under Executive Order 247 in shareholders. Shareholders are the owners of a corporation, as distinguished from the partners in a partnership
1987. and the proprietor in a sole proprietorship.
The POEA administers Republic Act 8042, known as the Migrants Workers and Overseas Filipinos Act of 1995. Shareholders and investors are suppliers of capital. They should be convinced of the integrity of the
R.A. 8042 promotes the welfare and protects the rights of migrant workers, and whenever applicable, all overseas communication process with the investee corporations.
Filipinos, in affiliation with the Department of Foreign Affairs (DFA), DOLE, and the OWWA.
In the Philippines, there are also regulators tasked to protect the interests of corporate investors and to promote
In 2007, Republic Act 9422 amended the Migrant Workers and Overseas Filipinos Act of 1995, strengthening the the integrity of the securities market.
regulatory powers of the POEA.
The audited financial statements in basic accounting textbooks illustrate the responsibility of the financial officers,
The powers and functions of the POEA under R.A. 9422 include auditors, and executive officers of corporations.
Regulating private sector’s participation in the recruitment and overseas placement of workers by setting The Corporation Code defines a corporation as “an artificial being created by operation of law, having he right of
up a licensing and registration system succession and the powers, attributes, and properties expressly authorized by law or incident to its existence”.
Informing migrant workers, not only of their rights as overseas workers, but also of their rights as human The business entity assumption is a reality in the corporate form of business organization. The said assumption is
beings; and used by accountants in recording business transactions, which considers the business entity as a personality
Deploying only to countries where the Philippines has concluded bilateral agreements or arrangements. separate and distinct from the owner or owners.
The most challenging legal responsibilities of business and industry toward community-stakeholders is the When the Securities and Exchange Commission (SEC) issues the certificate of incorporation, the corporation
growing concern for the environment. In the Philippines, the Environmental Management Bureau (EMB) if the starts to exist. The stockholders of the SEC-registered corporation have limited liability – the shareholders are
Department of Environment and Natural Resources (DENR) is mandated to implement and enforce the following liable only to the extent of their investment in the corporation.
environmental legislation:
The power to bind the corporation is with its board of directors. The stockholders do not have the power to bind
1. P.D. 1586: this establishes an environmental impact statement system, including other environmental the corporation.
management-related issues.
2. R.A. 6969: Toxic Substances and Hazardous and Nuclear Waste Control Act of 1990 covers the Cebu Pacific Air (CebuPac), one of the country’s leading air transport companies, developed a Corporate
importation, manufacture, processing, handling, storage, transportation, sale, distribution, use, and Governance Manual that contains principles and best practices that the Board and Management commit
disposal of all unregulated chemical substances and mixtures in the Philippines. themselves to. The manual states strong adherence to the principles of transparency, accountability and fairness.
Selected stipulations in the manual include the following:
1. Board Governance, which states the composition, qualifications, and disqualifications of the Board of Transportation – Gokongwei’s Cebu Pacific Air
Directors Finance – Tambunting’s Planter’s Development Bank
2. Board Committees, which enumerate the Audit and Risk Committee, Governance, Nomination and Retail Trade – Chan’s Suyen Corporation, and Ramos’ National Book Store
Election Committee, and Remuneration and Compensation Committee
3. Stockholders’ Rights and Protection, which outline the governance covenant of CebuPac with all this 2.5 The Virtuous Business
stockholder
The practice of business ethics, legal responsibilities corporate governance and participation in a country’s
4. Governance Monitoring and Self-Assessment, which allows the Board to create a self-rating system to
economic development has allowed several enterprises to evolve into ‘virtuous businesses’.
measure its performance
Yale researcher Theodore Roosevelt Malloch encourages people to scrutinize the reinforcement and renewal of
The terms transparency, accountability and fairness are essential principles in the organizing function of
the foundations of the virtuous business in his book Spiritual Enterprise.
managers. Under the corporate governance concept, the terms are repeated as compliance standards.
Transparency International is a global movement sharing one vision: a world in which government, business, civil
society and the daily lives of people are free of corruption. He guiding principles of Transparency International
provide a complete definition of the transparency principle.
The term accountability means that employees will perform a job, take corrective action when necessary, and
report upward on the status and quality of their performance.
Fairness may be measured by the equity theory. The equity theory states that people assess how fairly they have
been treated according to two key factors – outcomes and inputs.
Selected measures of economic development include gross domestic product (GDP), inflation rate, poverty, food
threshold, and subsistence data.
Comparative poverty and food threshold and subsistence statistics in the Philippines for 2006 and 2009 show a
distressed but optimistic economy.
The primary role of business in economic development is the creation of jobs. Employment advance economic
development and boosts social indicators to satisfactory levels. The observance of business ethics, where
business and industry look out for their stakeholders, assures this advancement.
Adherence to corporate governance practically guarantees this progress, as the integrity of business transactions
allows for dedicated investment and offers a vibrant securities market.
In the Philippines, business and industry leaders who serve as models for economic development and thrusts
through their companies are given recognition by the Sycip Gorres Velayo & Co. (SGV) Foundation through its
Entrepreneur of the Year (EY) Philippines program. The EY Philippines program aims to recognize the inspiring
men and women who demonstrate the winning vision, determination, and innovative mind-set that empower them
to transform industries and drive social and economic change.
The EY names and companies represent a wide scope of industries, such as the following:
Agriculture and food manufacturing for Nacani’s La Frutera, Uytengsu’s Alaska Milk Corporation, and
Sheng’s Bounty Fresh Food, Ins.
Activities: D.
A. Good Citizenship
Universalism and Economics Outcomes Write your understanding of ‘good citizenship’ based of the Bill of Duties of the 1987 Philippine Constitution and
Aristotle’s treatises.
Submit a one – page research paper on the following:
Discuss in Groups Exercise 1.4.
1. United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and its recent
social development agenda E.
2. Poverty Statistics
3. Employment statistics Religious Conviction
The research paper should include a ten – sentence discussion of your reaction to the given topics, and your Choose or select religious convictions and/or truth-seekers that you want to research on.
understanding of the terms universalism and economic outcomes in relation to the given research topics. Report your findings using the proposed format in Exercise 1.5
List your research findings on the template in Exercise 1.1 Focus on the following:
B. 1. What is your chosen saying or doctrine?
Ethical Decision-Making 2. Explain your choice by stating if it contributes to
A present situation at home, in school, or immediate community; and
Create and/or evaluate an Anti-Bullying Program in your previous school, and answer the following questions. Use A future plan or career choice.
the table in Exercise 1.2
F.
1. Who will benefit from the program?
2. Who will be harmed by the program? Positive Filipino Values
3. Whose rights will be violated by the program?
Aquino, Princess Kaye Arizo Noronio, Karylle Faith Bernardino
4. Who can exercise their rights under the programs? Bacurin, Eileen Grace Boniol Olermo, Krishna Mae Brillante
Alternative school programs that may be evaluated and/or created include Balmores, Arianne Caasi 1 Petalver, Trishia Mae Panitan 3
Bautista, Maricar Asuncion Romero, Aubrey –
Mentoring programs for underachievers by honor students; Garcia, Franchesca Mamac Lomo, Marco Sebastian Nomil
Community service programs for offenders of school policies; and Cabatic, Allysa Tresha Orlanda Sales, Haina Stefanny Anne Rosal
Camba, Jeri Mae Balbalosa 2 Tabios, Donna May Tagasa
Volunteerism and church programs.
Caniedo, Vianca Mae Calado Taganap, Lady Anne Maratas 4
C. Custodio, Pauline Necole Payas Montemayor, Julius Mar Carreon
Leones, Joyce Ranches
Knowledge, Courage, Temperance, and Justice Each group will be assigned one topic from the following Filipino values:
Observe knowledge, courage, temperance and justice in cases or events at home, in your community, or the Group 1: Strong religious faith
school service they offer. Discuss them in groups or in interactive class sessions using the illustrative charts in Group 2: Respect for authority
Exercise 1.3 Group 3: high regard for amor proprio (self-esteem)
Group 4: Smooth interpersonal relationships
Discuss the Filipino value assigned to your group. Enumerate and list its positive and negative manifestations.
Use the template in Exercise 1.6.
G. I.
Aquino, Princess Kaye Arizo Noronio, Karylle Faith Bernardino Aquino, Princess Kaye Arizo Noronio, Karylle Faith Bernardino
Bacurin, Eileen Grace Boniol Olermo, Krishna Mae Brillante Bacurin, Eileen Grace Boniol Olermo, Krishna Mae Brillante
Balmores, Arianne Caasi 1 Petalver, Trishia Mae Panitan 3 Balmores, Arianne Caasi 1 Petalver, Trishia Mae Panitan 3
Bautista, Maricar Asuncion Romero, Aubrey – Bautista, Maricar Asuncion Romero, Aubrey –
Garcia, Franchesca Mamac Lomo, Marco Sebastian Nomil Garcia, Franchesca Mamac Lomo, Marco Sebastian Nomil
Cabatic, Allysa Tresha Orlanda Sales, Haina Stefanny Anne Rosal Cabatic, Allysa Tresha Orlanda Sales, Haina Stefanny Anne Rosal
Camba, Jeri Mae Balbalosa 2 Tabios, Donna May Tagasa Camba, Jeri Mae Balbalosa 2 Tabios, Donna May Tagasa
Caniedo, Vianca Mae Calado Taganap, Lady Anne Maratas 4 Caniedo, Vianca Mae Calado Taganap, Lady Anne Maratas 4
Custodio, Pauline Necole Payas Montemayor, Julius Mar Carreon Custodio, Pauline Necole Payas Montemayor, Julius Mar Carreon
Leones, Joyce Ranches Leones, Joyce Ranches
Each group will be assigned one situation from the following, and that would be their going to present via audio.
A. Each group will be assigned one topic from the following Filipino structures on relationships: Group 1: A customer is bringing back a pair of shoes to department store within the prescribed ‘return period’. The
Group 1: Personal alliance systems customer service personnel are attending to the client.
Group 2: Pyramidal structures
Group 3: Middle class Group 2: The purchasing officer of a manufacturing establishment is asking for free tickets to a trade show from a
Group 4: Informal sector supplier who has a booth in the trade show.
Discuss your personal experiences or observations on your assigned Filipino value. Each group must Group 3: The new salesperson of a real estate company is asking for the commission rates of a fellow
submit a list and visual representation of their summarized observations and personal experiences. Use salesperson who has been with the same company for two years.
the template in Exercise 1.7
B. Each group will be assigned on topic from the following personal alliance systems: Group 4: Other customer-client conversations related to unsatisfactory service
Group 1: Kin (real and ritual)
J.
Group 2: Grantors and recipients of favors
Group 3: Friends Consumer Rights
Group 4: Partners in commercial exchanges
Discuss personal experiences or observations elated to your assigned personal alliance system. Each Check selected consumer products and inspect them for labeling requirements and/or deceptive advertising. Use
group must submit a list and visual representation of their summarized observations and personal the template in the Exercise 2.2.
experiences.
K.
Post visual representations at strategic places to remind the students of the value system, but because
of the pandemic, you may search on the internet, download and print rather. Use the template in Legal Responsibilities
Exercise 1.8.
Research on selected laws relevant to the agriculture, industry, and service sectors.
H.
Using the template in Exercise 2.3, create a poster showing laws relevant to your life. Use a white cartolina.
Business Ethics
For example, poster on the agricultural laws or presidential proclamations may be set up in February for the
Check the websites of professional and business organizations, such as the United Architects of the Philippines Countryside Development Month, as declared in Presidential Proclamation No. 212.
(UAP), the Philippines Chamber of Commerce and Industry (PCCI), and other formal associations in the
professional, service and manufacturing sectors. L.
Discuss the business ethics and practices of these businesses and organizations. Use the templates in Exercise Corporate Governance
2.1 and 2.2.
Obtain copies of published financial statements of utility companies. Use the template in Exercise 2.4.
M.
Economic Development
Check websites of leading Philippine or global food, transport, financial, transportation, communication, and retail
trade establishments. Research on their involvement in poverty alleviation. Answer exercise 2.5
N.
Spiritual Capital
Relate universalism and economic outcomes to any of the listed research topics. Write ten sentence reaction The chart may be used for school, church, or community programs. Wherever applicable, the identity of the
about them. You may use the back past of this activity sheet. List your major research findings on the table. groups of people may be drawn form age, grade level, gender, rural or urban origin, or even religious conviction.
1. UNESCAP and its recent social development agenda Ethical Decision-Making for School Programs
2. Poverty statistics
3. Employment statistics Questions Anti-Bullying Program Mentoring Program Community Outreach
Program
Research Data Who will benefit from this
program?
Economic Indicator Year 3 Year 2 Year 1
(Most Recen)
The chart may be used for home, residential, or school environments. The identity of the groups of the people Exercise 1.4
may be drawn from roles at home, in school, or in any other environment, and may include gender, income class
level, rural or urban origin, or even religious affiliation. Research on the bill of Duties of the 1987 Philippine Constitution and Aristotle’s Good Citizen – Good Man
Treatise. Fill out the tables by answering the questions.
Fill in the table by answering the questions.
Bill of Duties, 1987 Philippine Constitution
Cases of Knowledge, Courage, Temperance and Justice
Article 4 What is your understanding of this Does it help you practice good
Questions Homes or Residences Residential Communities School Communities Bill of Duties section? citizenship? Why or why not?
Knowledge Section 1
Which one takes the lead
and directs?
Section 2
Courage Section 3
Which battles and
defends?
Section 4
Temperance
Which one takes control
of desires? Aristotle’s Treatise
Aristotle’s Treatises What is your understanding of this Does it help you practice good
treatise? citizenship? Why or why not?
Good Man
Justice
Does everyone perform
his/her role as best fits The Ruler
his/her nature?
Good Citizenship
Exercise 1.5
Exercise 1.6
Research on classical philosophies, sayings, and/or doctrines. Then, fill out the table by answering the questions.
The groups are assigned one Filipino value each and are required to list positive and negative manifestations of
Classical Philosophies: Research
the said vale. Then, create a poster using selected positive and negative manifestations.
Chosen Saying/s or Doctrine/s Does the doctrine contribute to Is the saying relevant to your
Value Assignment: _____________________________________________
your present home or school future plan or career choice?
situation? Filipino Values
Poster, each of the group member must make your own poster based on the selected positive and negative
manifestations of the Filipino Values assigned in your group. Use a white cartolina in making a poster.
Exercise 1.7
Discuss personal experiences or observations related to your assigned Filipino value. Then, create a poster using
selected personal experiences or observations.
Filipino Structures
A B
1. In this level of moral judgement, people obey the rules according to the a. Pre-
expectations of ethical behavior held by groups or institutions, such as society, conventional
Poster, each of the group member must make your own poster based on the personal experiences or observation family, or peers. stage
of the Filipino Values assigned in your group. Use a white cartolina in making a poster. b.
2. People make decisions based on concrete rewards and punishments and pressing
Conventional
self-interest in this level of moral judgement.
stage
3. in this level of moral authority, people see beyond authority, laws, and norms, and c. Principled
follow their self-chosen ethical principles stage
Exercise 1.8
Discuss personal experiences or observations related to your assigned personal alliance system. Then, create a Exercise 2.1
poster using selected personal experiences or observations.
Research on codes of ethics of professional and business organizations. Fill out the table with your research
Personal Alliance System Assignment: _______________________________________ findings.
Code of Ethics
Poster, each of the group member must make your own poster based on the personal experiences or observation Customers
of the Personal Alliance System assigned in your group. Use a white cartolina in making a poster.
Exercise 1.9
Match column A with column B. write the letter only on the space provided before each number.
A B Suppliers
1. This moral philosophy bases ethical behavior on the opinions and behavior of a. Universalism
relevant other people. b. Egoism
2. “All people should uphold certain values, such as honesty, and other values that c. Relativism
society needs to function”. d. Utilitarianism
3. This moral philosophy seeks ‘the greatest good for the greatest number of people.’
4. This moral philosophy defines acceptable behavior as that which maximizes Employees
consequences for the individual.
Exercise 1.10
Other Stakeholders
Exercise 2.2
Research on labeling requirements of the chosen products. Fill out the table with your research findings.
Exercise 2.4
Cut and clip the published financial statements of your assigned utility company. Evaluate compliance with
corporate governance using the template.
Major Content Value of Content Is the content and/or value a proof of corporate
governance? Why or why not?
Exercise 2.6
Design a five-year gift-giving project for a corporation engaged in the business of manufacturing Halo-halo, a
Filipino favorite refreshment treat. Use the following information:
a) The main raw materials of the corporation are sourced from Southern Tagalog, while its factory is in
Cavite.
b) The corporation has a capitalization of 10 million, and its halo-halo products are marketed all over the
Philippines.
In designing the project, incorporate your understanding of “The Earth is the Lord’s, and man is the steward of all
things in it for the benefit of mankind.”
Answer:
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
Exercise 2.5 Exercise 2.7
Research on poverty alleviation or other economic development program of your chosen company. Write an Match column A with column B. write the letters only on the space provided before the number.
evaluation of the program and its economic development contribution.
A B
Enterprise or Business Name: ________________________________________________________________ 1. A set of moral principles or values. a. Ethics
Poverty Alleviation or Other Program: __________________________________________________________ 2. The set of procedures designed to ensure that the company is b. Professional ethics
managed in the interests of the shareholders c. Code of ethics
Evaluation of Poverty Alleviation or Other Program: _______________________________________________ 3. ‘An expectation that employees will perform a job, take corrective d. Corporate
action when necessary, and report upward on the status and quality governance
Answer: of their performance’ e. Corporation
f. Accountability
__________________________________________________________________________________________ 4. A set of moral principles self-imposed by professionals even above g. Soft virtues
__________________________________________________________________________________________ the requirements of the law h. Discipline
__________________________________________________________________________________________ 5. Humility, faith, and honesty. i. Perseverance
__________________________________________________________________________________________ 6. This hard virtue means one ‘does all the good one can do.’ j. Courage
__________________________________________________________________________________________ 7. A formal documents that states an organization’s primary values
__________________________________________________________________________________________ and the ethical rules it expects employees to follow
__________________________________________________________________________________________ 8. “An artificial being created by operation of law, having the right of
__________________________________________________________________________________________ succession and the powers, attributes, and properties expressly
__________________________________________________________________________________________ authorized by law or incident to its existence”
__________________________________________________________________________________________ 9. This hard virtue says “keep asking, keep seeking, and keep
knocking” __________________________________________________________________________________
10. This hard virtue means ‘to endure danger and difficulty’ __________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
3. Confidentiality
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
4. Competency
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Exercise 2.8
Rules of Conduct
Create a Code of Ethics for ABM Strand student’s groups using the format shown. Add definitions to the principles
and describe the rules of conduct for the defined principles. 1. Integrity
Students in the ABM Strand
Code of Ethics for ABM Strand Student Group
1.1 shall perform their work with ____________________________________________________
Principles 1.2 shall respect and contribute to the _______________________________________________
of the ABM Strand
Students in the ABM Strand are expected to apply and uphold the following principles: 2. Objectivity
Students in the ABM Strand
1. Integrity
2.1 shall not participate in any activity or relationship that
__________________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________
__________________________________________________________________________________
2.2 shall not accept anything that may _______________________________________________
__________________________________________________________________________________
3. Confidentiality
__________________________________________________________________________________
Students in the ABM Strand
__________________________________________________________________________________
3.1 shall be prudent in the use and protection of _______________________________________
3.2 shall not use information for ____________________________________________________
2. Objectivity
4. Competency
Students in the ABM Strand
4.1 shall engaged only in those services ____________________________________________
_________________________________________________________________________
4.2 shall perform _____________________________________________________ with the ABM
Strand Standards.