MODULE 1 • Started in Greece in about 500 BC.

GOVERNANCE the process of decision-making and • All male citizens could help govern.
the process by which decisions are implemented (or • This was a form of direct democracy, in which each
not implemented). citizen voted on policies and laws.
– can be used in several contexts such as corporate • However, a large portion of the population had no
governance, international governance, national rights. Women, slaves, and non-Greeks could not
governance and local governance. take part in government.
– The concept of "governance" is not new. It is as old • became a common form of government in the
as civilization. 1700s, when people in Europe started to push for
– Throughout history, people have developed greater freedom, resulting to constitutional
different forms of government, or ruling authority. monarchies which set the stage for the first modern
democracies.
3 Types Of Government Common Today According to the Museum of Australian
1. MONARCHY is a government in which a king or Democracy, all liberal democracies are based
queen serves as head of state. upon four main principles:
▪ A person, (called the monarch), is the head of state 1. A belief in the individual: since the individual is
for life or until abdication. believed to be both moral and rational
▪ The political legitimacy and authority of the monarch 2. A belief in reason and progress: based on the belief
may vary from restricted and largely symbolic that growth and development is the natural condition
(constitutional monarchy), to fully autocratic (absolute of mankind and politics the art of compromise
monarchy), and can span across executive, 3. A belief in a society that is consensual: based on a
legislative, and judicial domains desire for order and cooperation not disorder and
conflict
Five Types Of Monarchy 4. A belief in shared power: based on a suspicion of
1. Absolute Monarchy – The monarch is both the concentrated power (whether by individuals, groups
head of the state and the head of the government. His or governments)
power is NOT governed by the constitution or by any
law .(Ex: Bahrain, Brunei, Oman, Saudi Arabia). The Democracy Index: An annual report compiled by
2. Constitutional Monarchy – also called limited the Economist Intelligence Unit. Measures the state of
monarchy, parliamentary monarchy or democratic democracy in 167 of the world's countries by tracking
monarchy. The monarch exercises his authority in 60 indicators in five different categories: electoral
accordance with a constitution and is not alone in process and pluralism, functioning of government,
making decisions. (Ex: UK, Aus, Canada, Spain, political participation, political culture, and civil
Thailand, Japan) liberties.
3. Diarchy – Also called co-rule. Characterized with
two people ruling a polity together either lawfully (de DI score between 8.01 and 10 (out of 10) are
jure) or de facto, by collusion and force. considered full democracies. Score between 6.01 and
4. Elective Monarchy – ruled by a monarch who is 8.00 are classified as flawed democracies. While
elected. The manner of election, the nature of these countries have free and fair elections and basic
candidate qualifications, and the electors vary from civil liberties, there are faults in other aspects, such as
case to case. (Ex: Cambodia, Malaysia, Holy See, low levels of participation in politics or an
UAE) underdeveloped (or heavily partisan) political culture.
5. Hereditary monarchy – the throne passes from
one member of a ruling family to another member of Spain 8.07 Rank 1
the same family (succession of power). A series of Philippines 6.73 Rank 52
rulers from the same family would constitute a
dynasty. It is historically the most common type of 3. DICTATORSHIP – one person decides how the
monarchy and remains the dominant form in extant government functions and what the laws are.
monarchies. (Ex: UK, Spain, Sweden, Denmark, and ▪ ruled by one person or by a small group that
Japan). has absolute power.
▪ The dictator determines the laws and holds power
2. DEMOCRACY – people decide what kind of over everyone in the country.
society they will have and what laws and services
they want.
▪ Dictators often come to power by force or by ▪ Accountability. Who is accountable to whom varies
misleading the people. Adolf Hitler of Germany and Idi depending on whether decisions or actions taken are
Amin of Uganda were dictators. internal or external to an organization or institution.
▪ Dictators maintain power through intimidation, ➢ In general an organization or an institution is
imprisonment, violence, or assassination, leading to accountable to those who will be affected by its
low freedom levels and loss of personal autonomy decisions or actions.
and political choice. ➢ Accountability cannot be enforced without
transparency and the rule of law
GOOD GOVERNANCE 5. Consensus Oriented
▪ has 8 major characteristics namely: ▪ Good governance requires mediation of the different
participatory,consensus oriented, accountable, interests in society to reach a broad consensus in
transparent, responsive, effective and efficient, society on what is in the best interest of the whole
equitable and inclusive and follows the rule of law. community and how this can be achieved.
▪ assures that corruption is minimized, ▪ requires a broad and long-term perspective on what
➢ the views of minorities are taken into account and is needed for sustainable human development and
that the voices of the most vulnerable in society are how to achieve the goals of such development.
heard in decision-making. ➢ This can only result from an understanding of the
▪ It is also responsive to the present and future needs historical, cultural and social contexts of a given
of society. society or community.
6. Equity and Inclusiveness
Characteristics Of Good Governance ▪ A society’s well being depends on ensuring that all
1. Participation its members feel that they have a stake in it and do
▪ by both men and women is a key cornerstone of not feel excluded from the mainstream of society.
good governance. ➢ This requires all groups, but particularly the most
▪ could be either direct or through legitimate vulnerable, have opportunities to improve or maintain
intermediate institutions or representatives. their well being.
▪ representative democracy does not necessarily 7. Effectiveness and Efficiency
mean that the concerns of the most vulnerable in ▪ means that processes and institutions produce
society would be taken into consideration in decision results that meet the needs of society while making
making. the best use of resources at their disposal.
▪ needs to be informed and organized. freedom of ▪ sustainable use of natural resources and the
association and expression on the one hand and an protection of the environment.
organized civil society on the other hand. 8. Accountability
2. Rule of law ▪ key requirement of good governance. Not only
▪ Good Governance requires fair legal frameworks governmental institutions but also the private sector
that are enforced impartially. and civil society organizations must be accountable to
▪ It also requires full protection of human rights, the public and to their institutional stakeholders.
particularly those of minorities. ▪ Who is accountable to whom varies depending on
▪ Impartial enforcement of laws requires an whether decisions or actions taken are internal or
independent judiciary and an impartial and external to an organization or institution. In general an
incorruptible police force. organization or an institution is accountable to those
3. Transparency who will be affected by its decisions or actions.
▪ decisions taken and their enforcement are done in a ▪ Accountability cannot be enforced without
manner that follows rules and regulations. transparency and the rule of law.
▪ information is freely available and directly accessible
to those who will be affected by such decisions and SOCIAL RESPONSIBILITY
their enforcement. ▪ is an ethical theory in which individuals are
▪ enough information is provided and that it is accountable for fulfilling their civic duty, and the
provided in easily understandable forms and media. actions of an individual must benefit the whole of
4. Responsiveness society.
▪ Good governance requires that institutions and ▪ there must be a balance between economic growth,
processes try to serve all stakeholders within a the welfare of people, and the environment.
reasonable timeframe. institutional stakeholders. ➢ If this equilibrium is maintained, then social
responsibility is accomplished.
▪ Both good governance and social responsibility ▪ we are involved in ethics—throughout our life.
should be built on a system of ethics and morality. ▪ the study of right and wrong.
➢ Decisions and actions must be ethically validated ▪ systematic endeavor to understand moral concepts
and justify moral principles and theories.
before proceeding.
▪ analyze such concepts as right, wrong, permissible,
➢ If the action or decision causes harm to society or good and evil in their moral contexts.
the environment, then it would be considered to be ▪ seeks to establish principles to right behavior that
socially irresponsible. may serve as action guides for individuals and
• The advancement of ethics and moral values in groups.
good governance suggests legality of government ▪ It investigates which values and virtues are
action, rationality in policy and decision making, paramount to the worthwhile life or society.
evolving a sense of responsibility, ensuring
COMPONENTS OF ETHICS:
accountability, strengthening work commitment, 1. Personal ethics refers to the ethics that a
creating excellence, facilitating spirit of individual and person identifies with, with respect to people
organizational goals, ... and situations that they deal with in everyday
▪ Moral values that are inherent in society create a life.
distinction between right and wrong. In this way, social 2. Professional ethics refers to the ethics that
fairness is believed (by most) to be in the “right”, but a person must adhere to in respect of their
interactions and business dealings in their
more frequently than not this “fairness” is absent.
professional life. In some cases, personal
▪ Every individual has a responsibility to act in a and professional ethics may clash and cause
manner that is beneficial to society and not solely to a moral conflict. (Ex: A doctor may prescribe
the individual. a medicine to a patient, however, if the
patient wants another medicine, doctors’
MODULE 2 code of ethics says the patient's desire must
be respected.)
But the existence of choices would only find its true
significance if the one selecting among the presented
▪ the MIND is our conscience. CONSCIENCE is a
options is FREE to actually make the choice. The
cognitive process that elicits emotion and rational
availability of choices finds its fruition and meaning in
associations based on an individual's moral
the freedom of human beings.
philosophy or value system.
▪ Part of our conscience is a commitment to morality
Morality refers to our beliefs concerning right and
itself; to acting and choosing morally according to the
wrong, what is good and bad.
best of one's ability.
▪ These beliefs affect our judgments, values, and
▪ Conscience is a judgment of reason whereby the
principles.
human person recognizes the moral quality of a
▪ These beliefs guide our actions, define our values,
concrete act that he is going to perform, is in the
and give us reasons for being the person we are.
process of performing, or has already completed.
▪ The nature of morality is a self-chosen system of a
code of values, while the purpose of a rational
People are FREE to actually make the choice.
morality is to help us to live our own life according to
Freedom = EXISTENTIALISM.
reason and rational standards.
▪ the existentialist generally affirms the view that the
(The emphasis is on how one decides to respond to a
human being has free will, is able to make decisions,
moral dilemma. People decide for themselves to do
and can be held responsible for their actions.
something. A person aligns his actions with his deeply
▪ EXISTENTIALISM is voluntariness of human
held beliefs and ideals.) – moral rationalism or ethical
actions. The good and evil, the moral and immoral,
rationalism
are mainly determined by the existence of free will.
▪ Morality dictates the very essence of human
➢ we are each responsible for creating purpose or
existence: things we should do & things we should not
meaning in our own lives.
do. (FREEDOM)
➢ our individual purpose and meaning is not given to
▪ Humans are exposed to both good and evil, and we
us by Gods, governments, teachers or other
act in terms of right and wrong. The very structure of
authorities.
human existence dictates that we must make
▪ Existentialism underscores the pursuit of meaning in
decision. (CHOICES)
life and acknowledges that each person must create
their own purpose through their choices and actions.
▪ It recognizes that life lacks inherent meaning or
ETHICS
purpose, necessitating the creation of one's own
▪ gives direction in our struggle to answer the
sense of fulfillment.
fundamental questions that ask how we should live
our lives and how we can make right choices.
▪ Ethics , or moral philosophy , is the philosophical
study of morality.
DETERMINISM • simple to apply. It just requires that people
▪ theory that everything in the universe is governed by follow the rules and do their duty.
causal laws. • This approach tends to fit well with our natural
➢ everything in the universe is entirely determined so intuition about what is or isn’t ethical.
that whatever happens at any given moment is the • BUT, it also means disregarding the possible
effect of some antecedent cause. consequences of one’s actions when determining
➢ implies that there is no such thing as an uncaused what is right and what is wrong.
event. Things cannot but be anything other than how 2. Consequentialism. An ethical theory that judges
they are right now. whether or not something is right by what its
➢ it is never true that people could have decided or consequences are.
acted otherwise than they actually did. • sometimes criticized because it can be difficult, or
even impossible, to know what the result of an action
EXISTENTIALISM vs DETERMINISM will be ahead of time. Indeed, no one can know the
➢ Existentialism was founded on the belief that future with certainty.
people have free will to define their purpose in life and • consequentialism can lead to decisions that are
are free to do so. objectionable, even though the consequences are
➢ Determinism cancels out this idea by arguing that arguably good. (2%)
people do not have free will. This is because their Utilitarianism:
actions are solely based on the laws of the universe. ➢ an ethical theory that asserts that right
➢ Choice, under the paradigm of Determinism, is and wrong are best determined by focusing
simply an occurrence that follows naturally from your on outcomes of actions and choices. (the
current circumstances (physical and mental), your most ethical choice is the one that will
remembered experience, and the sum of all other produce the greatest good for the greatest
causal relationships. number.)
Hedonism:
MORAL PRINCIPLES ➢ the belief that pleasure, or the absence of
▪ guidelines that people live by to make sure they are pain, is the most important principle in
doing the right thing. These include things like determining the morality of a potential course
honesty, fairness, and equality. of action.
▪ can be different for everyone because they depend ➢ critics fault it as a guide for morality
on how a person was raised and what is important to because hedonism ignores all other values,
them in life. such as freedom or fairness, when
evaluating right and wrong.
Types Of Moral Principles:
1. Absolute principles are unchanging and
universal. 2. APPLIED ETHICS
➢ They are based on universal truths about the ▪ also called practical ethics, is the application of
nature of human beings. NORMATIVE ethics to real-world problems.
➢ These are generally accepted by society. ▪ Practical ethics attempts to answer the question of
2. Relative principles change depending on the how people should act in specific situations.
situation. ▪ Medical ethics, business ethics, engineering ethics,
➢ based on opinions and circumstances that may and the like are all branches of applied ethics.
change over time or from person to person or for ▪ more specific than normative ethics.
different situations. Examples:
➢ Depend on a person's beliefs, relative to what Bluffing. Is it ethical to bluff during confrontations?
people perceive as good or bad in relation to White lies.
themselves. Mercy killing.

Approaches to the study of morality (major fields 3. METAETHICS

of ethics) ▪ branch of analytic philosophy that explores the
1. NORMATIVE ETHICS status, foundations, and scope of moral values,
▪ that branch of moral philosophy, or ethics, properties, and words.
concerned with moral standards (criteria of what is ▪ Whereas the fields of applied ethics and normative
morally right and wrong). theory focus on what is moral, metaethics focuses on
▪ It includes the formulation of moral rules that have what morality itself is.
direct implications for what human actions, Examples:
institutions, and ways of life should be like. Abortion is morally wrong.
Examples: honesty, respect, and fairness. War is never morally justified.

2 Important Categories
1. Deontology is an ethical theory that uses rules to
distinguish right from wrong.
MODULE 3 Relative principles
ETHICS – change depending on the situation.
➢ the study of right and wrong, what is permissible, – based on opinions and circumstances that may
what is good and evil in their moral contexts. change over
➢ It seeks to establish principles to right behavior that time or from person to person or for different
may serve as action guides for individuals and situations.
groups. – depend on a person's beliefs, relative to what
➢ It investigates which values and virtues are people perceive as good or bad in relation to
paramount to the worthwhile life or society. themselves. When someone says something is good,
➢ It refers to the systematic endeavor to understand it is good for them, or perhaps it contributes to their
moral concepts and justify moral principles and well-being.
theories.
Approaches To The Study Of Morality (Major
BUSINESS ETHICS Fields Of Ethics)
➢ Ethics in business is just as important as ethics in 1. NORMATIVE ETHICS
personal life. – that branch of moral philosophy, or ethics,
➢ Business leaders have a unique role and a great concerned with moral standards (what is morally right
responsibility in shaping the ethical culture of their and wrong).
businesses, and thereby influence their broader – It includes the formulation of moral rules that have
communities as well. direct implications for what human actions,
➢ Business ethics refers to implementing appropriate institutions, and ways of life should be like.
business policies and practices with regard to – Essentially, normative ethics investigates questions
arguably controversial subjects. regarding how one ought to act, in a moral sense.
➢ Some issues that come up in a discussion of ethics
include corporate governance, bribery, discrimination, Two Important Categories of Normative Ethics:
social responsibility, etc. a. Deontology
➢ The law usually sets the tone for business ethics, – proposed by philosopher Immanuel Kant.
providing a basic guideline that businesses can – an ethical theory that uses rules to distinguish right
choose to follow to gain public approval. from wrong. This approach tends to fit well with our
natural intuition about what is ethical and what isn’t
Business Ethics and Social Responsibility ethical.
These companies employ PWD (deaf, mute, vision – simple to apply. It just requires that people follow the
impaired) rules and do their duty.
➢ Jollibee Group – BUT, it also means disregarding the possible
➢ Lamoiyan Corporation. (Happy toothpaste). consequences of one’s actions when determining
➢ Bounty Agro Ventures, Inc. (Chooks to go) what is right and what is wrong.
➢ Caravan Food Group, Inc. (Down syndrome) Examples ; “Don’t lie. Don’t steal. Don’t cheat.”
b. Consequentialism
Business Ethics And Moral Principles – an ethical theory that judges whether or not
Why Is Business Ethics Important? something is right by what its consequences are.
1. Brand recognition and growth. Actions are right insofar as they promote good
2. Increased ability to negotiate consequences and wrong insofar as they promote
3. Increased trust in products and services bad ones.
4. Customer retention and growth – sometimes criticized because it can be difficult, or
5. Attracts talent even impossible, to know what the result of an action
6. Attracts investors will be ahead of time. No one knows the future with
certainty.
Moral Principles – Also, in certain situations, consequentialism can
➢ guidelines that people live by to make sure they lead to decisions that are objectionable, even though
are doing the right thing. These include things like the consequences are arguably good. (2%)
honesty, fairness, and equality. Examples:
➢ can be different for everyone because they depend – Most people would agree that lying is wrong. But if
on how a person was raised and what is important to telling a lie would help save a person’s life,
them in life. consequentialism says it’s the right thing to do.
– A hold upper killing a drug lord.
Types of moral principles: Utilitarianism:
Absolute Principles – an ethical theory that asserts that right and
– unchanging and universal. wrong are best determined by focusing on
– based on universal truths about the nature of outcomes of actions and choices. (the most
human beings. ethical choice is the one that will produce the
– generally accepted by society. greatest good (greatest utility) for the
greatest number.)
 Hedonism: is, whether an action is right or wrong depends on the
➢ the belief that pleasure, or the absence of moral norms of the society in which it is practiced.
pain, is the most important principle in ➢ there are no absolute truths in ethics and that what
determining the morality of a potential course is morally right or wrong varies from person to person
of action. or from society to society.
➢ all and only pleasure is intrinsically ➢ The same action may be morally right in one
valuable and all and only pain is intrinsically society but be morally wrong in another.
not valuable. ➢ For the ethical relativist, there are no universal
➢ hedonism considers happiness to be the moral standards --standards that can be universally
most important thing in life and emphasizes applied to all peoples at all times.
that happiness can be achieved through The only moral standards against which a society's
fulfilling personal needs and desires. practices can be judged are its own.
➢ If ethical relativism is correct, there can be no
Types of HEDONISM: common framework for resolving moral disputes or for
A. Normative Hedonism reaching agreement on ethical matters among
– also called ethical hedonism members of different societies. (This means that there
– the idea that pleasure should be people’s primary are no absolute truths in ethics and that what is
motivation. The theory that happiness should be morally right or wrong varies from person to person or
pursued and pain should be avoided. from society to society.)
B. Motivational Hedonism
– only pleasure and pain cause people to do what ETHICAL EGOISM
they do. ➢ philosophical concept premised on the ethical
–human behavior is psychologically determined by justification to do what is best for oneself.
desires to increase pleasure and to decrease pain. ➢ It is to prioritize the individual self above others.
C. Egotistical Hedonism ➢ According to this concept, determining what
– requires a person to consider only his or her own benefits the self will then determine ethical
pleasure in making choices. justifications. In other words, an ethical obligation to
– the goal of life for an egoistic hedonist is to the individual self supersedes the ethical
maximize pleasure, especially one’s own. considerations of others. (One who practices Ethical
D. Altruistic Hedonism egoism does not consider what others will say or what
– the creation of pleasure for all people is the best will happen to others)>>>>recall Egotistical hedonism
way to measure if an action is ethical. Three Types of Ethical Egoism
1. Personal Ethical Egoism
2. APPLIED ETHICS ➢ People who maintain that they are going to act in
➢ also called practical ethics, is the application of their own self-interest and that anything else is
ethics to real-world problems. irrelevant to them.
➢ attempts to answer the question of how people ➢ Only I should act from the motive of self-interest,
should act in specific situations. nothing is stated about what motives others should
➢ medical ethics, business ethics, engineering ethics, act from.
and the like are all branches of applied ethics. ➢ They actually have no interest in telling other
➢ a branch of ethics devoted to the treatment of people how to act at all, and in this sense, their
moral problems, practices, and policies in personal position is hardly a moral theory at all. They are
life, professions, technology, and government. simply saying “ This is how I am going to act.”
2. Individual Ethical Egoism
3. METAETHICS ➢ Individual egoists claim that “I ought to act in my
➢ the study of moral thought and moral language. It own self-interest, and everyone else should act in my
asks what morality actually is, ?”, “what goodness self-interest. If person X is an individual ethical egoist
is?”, or “how to identify if something is good or bad?” he would insist that all people should do whatever
➢ It DOES NOT address questions about what benefits satisfy his own self-interest.
practices are right and wrong, and what our 3. Universal Ethical Egoism
obligations to other people or future generations ➢ a universal ethical egoist would argue that
are – Domain of 'normative' ethics. everyone should act in ways that are in their
➢ Metaethics, seeks to understand the nature of self-interest.
ethical properties, principles, judgments, attitudes,
etc. MODULE 4
➢ In short, metaethics focuses on what morality itself Forms Of Business Organizations
is. 1. SOLE PROPRIETORSHIP. This popular form of
business structure is the easiest to set up. Have one
ETHICAL RELATIVISM owner who makes all of the business decisions, and
➢ Ethical relativism is the theory that holds that there is no distinction between the business and the
morality is relative to the norms of one's culture. That owner.
Advantages of a sole proprietorship include: ➢ details such things as the business's governing
➢ Total control of the business structure, the partners' rights and responsibilities, and
➢ No public disclosure required: Sole proprietorships how profits should be allocated.
are not required to file annual reports or other ➢ It can also state what should happen when a
financial statements with the state or federal partner leaves, dies, or otherwise becomes unable to
government. function as a partner.
➢ Easy tax reporting: Owners don't need to file any
special tax forms. Taxpayers with proprietorships II. Management
need to file an Annual Income Tax Return (BIR Form ➢ must create its own agreement that addresses
1702Q) along with supporting documents such as among other things: management and control.
financial statements, bank certificates, etc., before
April 15th of each year. Law of partnership in the Philippines.
➢ Low start-up costs ARTICLE 1767. By the contract of partnership two or
more persons bind themselves to contribute money,
Disadvantages of a sole proprietorship include: property, or industry to a common fund, with the
➢ Unlimited liability: You are personally responsible intention of dividing the profits among themselves.
for all business debts and company actions under this
business structure. III. Individual Decision-Making
➢ Lack of structure: Since you are not required to ➢ each partner has the agency to unilaterally enter
keep financial statements, there is a risk of becoming into binding agreements and business deals, and all
too relaxed when managing your money. other partners are bound by the terms.
➢ Difficulty in raising funds: Investors typically favor
corporations when lending money because they know IV. Compensation
that those businesses have strong financial records ➢ No salary, partners receive distributions from the
and other forms of security. partnership’s profits.
➢ Money that the partnership does not distribute to
2. PARTNERSHIP. A partnership is a formal partners can be used for other purposes (e.g.,
arrangement by two or more parties to manage and reinvested in the business).
operate a business and share its profits.
General Partnership: V. Joint Liability
➢ a business arrangement by which two or more ➢ Partners in a general partnership have shared
individuals agree to share responsibilities, assets, liability for the debts and obligations of the business.
profits, and financial and legal liabilities of a ➢ Every partner agrees to unlimited personal liability
jointly-owned business. for their actions, the actions of all other partners, and
➢ partners agree to be personally responsible for those of any and all employees.
potentially unlimited liability. ➢ Therefore, partners have shared
➢ Partners are responsible for the debts, and the responsibility—also known as joint liability—for
seizure of an owner's assets is a possibility. damages awarded in a legal action taken against the
➢ any partner may be sued for the business's debts. partnership.
➢ is a pass-through entity where income flows
straight to the owners, each partner reports their Advantages of a General Partnership
share of partnership profits or losses on their personal ➢ less expensive and easier to set up than a
tax returns. The partnership itself is not taxed. corporation or limited liability partnership (LLP).
➢ are unincorporated businesses. Those who form a ➢ pays no taxes.
general partnership don’t need to register their ➢ No external financial reporting/annual report is
business with a state to function legally. required.
➢ allows for more swift and decisive management ➢ simple to dissolve.
action compared to corporations, which must often
deal with multiple levels of bureaucracy and red tape, Disadvantages of a General Partnership
complicating and slowing down the implementation of ➢ Personal liability is unlimited. A partner's personal
new ideas. property can be seized to pay partnership debts.
➢ partners must deal with the financial and legal
Requirements of a partnership: consequences of each other's (and employees')
➢ It must include a minimum of two people. actions.
➢ All partners must agree to be personally liable for ➢ Disputes may be difficult to address and disastrous
any and all liabilities that their partnership may incur. for the business (unless properly planned for in the
partnership agreement).
Aspects of a General Partnership: ➢ Over time, a business can become complicated,
I. Partnership Agreement encounter greater risks, increase potential personal
➢ should have a formal, written partnership liability, and outgrow the general partnership structure.
agreement, though oral agreements are valid.
Limited Liability Partnership shareholders with a common goal who share
➢ one formed by two or more persons under the ownership represented by their holding of stock
provisions of Art 1843. shares.
➢ members can be one or more general partners and ➢ formed upon the issuance of a Certificate of
one or more limited partners. The limited partners as Registration by the Philippine Securities and
such shall not be bound by the obligations of the Exchange Commission (“SEC”) together with the
partnership. approval of the applicant's Articles of Incorporation
➢ allow for a partnership structure where each and By-Laws.
partner’s liabilities are limited to the amount they put ➢ must have not less than five nor more than fifteen
into the business. directors.
➢ if the partnership fails, then creditors cannot go
after a partner’s personal assets or income. Business Ethics Refers to the standards for morally
➢ Having business partners means spreading the right and wrong conduct in business. (Because,
risk, leveraging individual skills and expertise, and businesses have stakeholders to deal with). Business
establishing a division of labor. ethics enhances the law by outlining acceptable
behaviors beyond government control.
Roles: ➢ is being able to identify the difference between
General partner right and wrong and then consciously choosing to do
➢ can be an individual person or a corporation and the right thing.
can financially own as little as 2% of the partnership. ➢ is written guidelines or standards used to hold a
➢ has full control of the business and behaves like company accountable to moral actions and just
the owner-operator, making decisions that affect the decisions.
organization on a daily basis. ➢ is an extremely valuable part of every company
➢ They maintain full liability for the partnership, which and can impact a company’s reputation and the
means they’re personally responsible for any lawsuits community in which it serves.
or debts the partnership may incur. ➢ How companies choose to practice and enforce
business ethics can differ from one company to the
Limited partner (or the Silent Partner) next, however, there is no denying that an ethical
➢ provides capital but doesn’t make day-to-day work environment is an essential key to success.
business decisions.
➢ Financially, a limited partner is only liable for the Johnson and Scholes provide the different levels
amount they’ve invested in the business. of business ethics, as it has evolved over time:
➢ If a limited partner takes a more active managerial a. Individual Level (Personal Level)
role in the business, they can become liable for more ➢ ethics that a person identifies with in respect to
of the company’s debts and financial responsibilities. people and situations that they deal with in everyday
life.
LLC or corporation as general partner ➢ determined by each individual.
➢ Since the general partner holds most of the ➢ may be determined by religious practices or how
responsibility for any losses, all assets that the someone was raised.
general partner holds could be at risk in case of a ➢ is the most diverse level of business ethics
lawsuit. To prevent this a GP may form a Limited because each individual person has a different set of
Liability Company (LLC) to shield their personal values and beliefs.
assets. ➢ Since personal ethics differ from person to person,
➢ If the general partner forms an LLC or a professional and organizational ethics help to
corporation to act as that general partner formally, establish parameters and guidelines for individuals to
then only the assets belonging to that LLC or follow in the workplace.
corporation are at risk. ➢ deeply rooted in an individual's sense of right and
wrong.
3. CORPORATION ➢ play a crucial role in shaping their character of the
➢ legal entity that is separate and distinct from its individual.
owners. ➢ define an individual's attitudes, mindset, and
➢ Under the law, corporations possess many of the personal accountability.
same rights and responsibilities as individuals. ➢ tends to be self-reflective, by examining actions
➢ They can enter contracts, loan and borrow money, against one's own moral standards.
sue and be sued, hire employees, own assets, and
pay taxes. b. Corporate Level (Professional Level)
➢ A distinguishing characteristic of a corporation is ➢ business ethics standards for their line of work.
limited liability. Shareholders profit comes from ➢ individuals in their job must have extensive
dividends and stock appreciation but they are not knowledge and experience which prepares them to
personally liable for the company's debts. work within certain industries.
➢ created when it is incorporated by a group of ➢ set of principles that govern the behavior of a
person or group in a business environment.
➢ provide rules on how a person should act towards ➢ It is a commitment to maintaining and building on
other people and institutions in such an environment. your company’s culture.
➢ Ethical principles underpin all professional codes of ➢ may translate to higher retention rates for
conduct. employees and may also attract quality candidates
➢ Ethical principles may differ depending on the who share similar values and assist with building trust
profession; with external stakeholders.

c. Macro Level (Organizational Level) Common types of business codes of ethics

➢ established and then implemented company wide. 1. Inclusivity
➢ These are the values, principles, and standards 2. Respectfulness
that guide the individual and group behavior of the 3. Professionalism.
people in an organization. ➢ creates a culture of respect, encourages positive
➢ are set up to steer and manage activities and work relationships and fosters trust and accountability
business situations to proactively avoid harmful ➢ improve company’s reputation, reduce turnover
behavior. and make employees’ jobs less stressful.
➢ often laid out in a code of conduct, which ➢ Likewise, professionalism promotes credibility with
establishes the moral and ethical requirements that stakeholders and mitigates potential risks relating to
employees and the organization must follow. fairness and equality.
➢ external indicators used to ensure a company is ➢ It also encourages leaders and employees to make
behaving ethically. However, the foundation of ethical decisions that support your organization’s
organizational values is grounded within the internal continued growth and success.
culture of the company. 4. Consideration
➢ can positively or negatively impact productivity, ➢ Creates a profound impact on the workplace
morale, the community, and the list goes on and on. environment
5. Accountability
Exercising ethical behavior in business is ➢ take responsibility for actions and learn from
important for the following reasons: mistakes.
1. It can help build trust and credibility with ➢ promotes trust between management and
stakeholders coworkers, and it provides a framework for dealing
2. Promote long-term sustainability and profitability with problems, including noting consequences or
3. Prevent reputational damage, legal problems and remediation when employees don’t live up to
loss of business expectations set by your business ethics codes.
6. Integrity
Difference Between Social Responsibility and ➢ ties together company ethics by supporting
Business Ethics honesty and consistent behavior. Avoid conflict of
SOCIAL RESPONSIBILITY interest.
1. Focuses on ethical concerns that affect societies 7. Punctuality.
2. Affects society as a whole
3. Requires accountability to the organization, According to the SEC (Securities and Exchange
stakeholders and the public Commission)
No one should take unfair advantage of another
BUSINESS ETHICS through manipulation, concealment, abuse of
1. Defines what is right and wrong privileged information, misrepresentation of material
2. Affects the people within an facts, or any other unfair-dealing practice. Information
organization/stakeholders about the Company's competitors must be used in an
3. Requires ethical decision-making ethical manner and in compliance with the law.

CODE OF ETHICS in a corporation The Bottom Line

➢ set of principles companies provide to employees ➢ Business ethics concerns employees, customers,
to help them approach their jobs with integrity. society, the environment, shareholders, and
➢ includes a company’s core values, ways for stakeholders.
employees to resolve problems and the performance ➢ every business should develop ethical models and
standards staff members need to meet. practices that guide employees in their actions and
➢ Can include laws and regulations in its business ensure they prioritize the interests and welfare of
ethics codes, depending on the industry. those the company serves. ,
➢ NOT required by law.
➢ Business ethics codes explain how you expect Doing so not only increases revenues and profits, it
employees to accomplish goals and live your creates a positive work environment and builds trust
company’s values. with consumers and business partners.
➢ It also provides a framework for how team
members need to interact with each other and clients Generally, there are about 12 ethical principles:
to demonstrate a positive public image. honesty, fairness, leadership, integrity, compassion,
respect, responsibility, loyalty, law-abiding, ➢ Unfortunately, reality has yet to catch up with the
transparency, and environmental concerns. noble intentions of these numerous laws and
international agreements.
MODULE 5 ▪ In schools, workplaces, commercial establishments,
➢ International Migration has been a significant public service, police and the military, prejudicial
aspect in the economic and social dynamics of the practices and policies based on sexual orientation,
Philippines. gender and cultural identity limit the exercise and
▪ about two million Filipinos leave every year to enjoyment of basic human rights and / fundamental
temporarily work overseas, mainly in the Middle East freedoms, as well as impede or delay the delivery of
and Asia. basic services.
▪ around 80-90 thousand choose to permanently ▪ for instance, employment practices that prioritize
transfer to another country, mainly to the USA and single over married job applicants, despite the fact
Canada. that there is no empirical link between a person's civil
▪ Filipinos overseas send annual remittances status and his or her job
equivalent to about 10 percent of the Philippine Gross performance.
National Product (GNP). ▪ There are also other cultural practices that suppress
an individual's right to practice his or her religion,
➢ The Philippine Overseas Employment faith, or cultural belief. Moreover, many Filipinos in
Administration (POEA) acts as the backbone of the indigenous communities have yet to be fully
various offices of the Department of Labor and integrated into the workforce; ignorance about their
Employment (DOLE) and Department of Foreign cultural practices often leads to stigma and
Affairs (DFA) namely: marginalization.
▪ the Office of the Undersecretary for Migrant ▪ LGBTQ+ community continues to be oppressed
Workers' Affairs (OUMWA) of the DFA, through various forms of cruelty by society at large,
▪ Philippine Overseas Labor Office (POLO), primarily because of misconceptions and ignorance.
▪ Labor Affairs Bureau (ILAB), LGBTQ students, for instance, are refused admission
▪ National Reintegration Center for OFWs (NRCO) or expelled from schools due to their sexual
and orientation or gender identity. Companies block the
▪ the National Maritime Polytechnic (NMP) of the promotion of LGBT employees due to the deeply
DOLE. embedded notion that homosexuality is an indication
of weakness. Laws such as the anti-vagrancy law are
➢ The Overseas Workers Welfare Administration also abused by law enforcement agencies to harass
(OWWA) is an attached agency of the Department of gay men. Government offices restrict or delay the
Labor and Employment (DOLE) both function to delivery of services to deserving individual/s due to
protect and promote the welfare of Overseas Filipino discrimination.
Workers (OFWs) and their dependents.
➢ The Department of Migrant Workers (Filipino: DUE PROCESS
Kagawaran ng Manggagawang Mandarayuhan, Legal Overview:
abbreviated as DMW) is the executive department of ➢ The principle of due process, enshrined in the
the Philippine government responsible for the Philippine Constitution, guarantees every individual
protection of the rights and promote the welfare of the right to a fair hearing and an opportunity to defend
Overseas Filipino Workers (OFW) and their families themselves. This applies not only in criminal cases
but also in administrative and institutional settings. If
The Workplace. The Workers’ Civil Rights an institution denies these rights, there are legal
Civil Rights And Liberties… remedies available to challenge such decisions and
➢ are fundamental to a just and equal society, assert your rights.
encompassing human rights, freedom of speech, and ➢ The requirements of due process of law shall be
the fight against discrimination. These issues are of observed before, during and after trial. The accused is
paramount importance as they affect the dignity and presumed innocent until proven guilty and shall enjoy
well-being of every individual. the right against self-incrimination, the right to an
➢ In addition, the Philippines is a signatory to independent and competent counsel preferably of his
numerous international agreements that seek to or her own choice, and the right to be informed of
ensure respect for the human rights of all persons such rights.
regardless of ethnicity, race, religion or belief, political
inclination, social class, sex, gender, sexual ➢ The National Labor Relations Commission
orientation, gender identity, gender expression, civil (NLRC) is a quasi-judicial* body tasked to promote
status, medical condition, or any other status. and maintain industrial peace based on social justice
➢ These international human rights instruments have by resolving labor and management disputes
been constantly upheld by international institutions, involving both local and overseas workers through
such as the United Nations Human Rights Committee compulsory arbitration and alternative modes of
and the United Nations Committee on Economic, dispute resolution.
Social and Cultural Rights.
 ● A quasi-judicial body is a non-judicial body
which can interpret law. It is an entity such
as an arbitration panel or tribunal board,
which can be a public administrative agency
but also a contract- or private law entity,
which has been given powers and
procedures resembling those of a court of
law or judge and which is obliged to
objectively determine facts and draw
conclusions from them so as to provide the
basis of an official action.
● Such actions are able to remedy a situation
or impose legal penalties, and they may
affect the legal rights, duties or privileges of
specific parties.

Social Justice
➢ the view that everyone deserves equal economic,
political and social rights and opportunities. Social
workers aim to open the
doors of access and opportunity for everyone,
particularly those in
greatest need.
➢ Under the Philippine Law, social justice means
the promotion of the welfare of all the people, the
adoption by the Government of measures calculated
to insure economic stability of all the competent
elements of society, through the maintenance of a
proper economic and social equilibrium in the
interrelations of the members of the community,
constitutionally, through the adoption of measures
legally justifiable, or extra-constitutionally, through the
exercise of powers underlying the existence of all
governments on the time-honored principle of salus
populi est suprema lex*. *the health (welfare) of the
people is the supreme law.
➢ Social justice, therefore, must be founded on the
recognition of the necessity of interdependence
among diverse units of a society and of the protection
that should be equally and evenly extended to all
groups as a combined force in our social and
economic life, consistent with the fundamental and
paramount objective of the state of promoting the
health, comfort, and quiet of all persons, and of
bringing about "the greatest good to the greatest
number.“

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