SPECIALIZED SUBJECT-ABM

BUSINESS ETHICS AND SOCIAL

RESPONSIBILITY
_____ Semester, SY _____________
QUARTER 1, MODULE 3
CODE OF ETHICS IN BUSINESS
Business Ethics and Social Responsibility
Self-Learning Module
____ Semester – Quarter 1, Module 3: Code of Ethics in Business
First Edition, 2021

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 CODE OF ETHICS IN
LESSON
BUSINESS
Learning Competency:

The students should be able to formulate “code of ethics that reflect

core principles derived from analyses. (ABM_ESR12-IIIa-d-1.6)

Any values an individual has, merely reflects his own personality, so do

a business. Be it in any level of ethical conduct, it directly reflects the principles
and values which regulate the person and the institution he/she represents.
That’s why establishments create their own principles that is on a social basis
expressed as their ethics. So, such ideals have an impression on the
relationships within the company and the wider community they work in. To the
fact, most organizations generate a list of organizational values and codes of
conduct to be recognized and adhered by all workers. Thus, having this may
prevent unethical behavior on the part of both administrators and workers.
At the end of this module, you are expected to:
a. understand the common practices in business organization;
b. know what code of ethics is and its importance in business organization;
and
c. craft a simple Code of Ethics.

Hi learners! How are you?

At the end of this lesson, you are expected to craft your own code of ethics. Do you
think it is necessary to study? Yes, your answer is right! It is vital, not only because you are
business students but because we are also dealing with it and the most important values of
human is our morals or ethics.

Business and Ethics are always interrelated. Ethics direct us that we are doing the
right thing. Moreover, in the conduct of your business, you need to follow ethical standards of
the company.
 But first, let us define what Ethics is. Ethics is derived from the Greek word “ethikos”
which means “having to do with character. The Latin word for ethos is “mos” (or “more”). That
is why we known Ethics as the Moral Science or Moral Philosophy. It refers to the theory of
morality of right conduct.

Business Code of Ethics

Business code of ethics simply define what is acceptable behavior in the workplace.
It encourages high standards, whether in manufacturing, finance, customer service, or any
other functional area of the company. As such, employees working under code have a
standard upon which they can judge their own behavior and that of others within the
organization.

Having code of ethics in a certain organization enhances reputation, builds trust –

internally and externally, increases awareness of ethics issues, guides decision-making,
reduces ethics risks, questionable behavior decreases, employee relations improve and
competitive positions improve.

Ethics is considered as a set of beliefs about right and wrong. Ethics somehow guide
people in dealings with stakeholders and others, to determine appropriate actions. Most of the
time managers must choose between the conflicting interest of stakeholders.

Stakeholders are people or groups that have an interest in the organization. In short,
stakeholders include employees, customers, shareholders, suppliers, and others. Often,
stakeholders want different outcomes and managers must work to satisfy as many as possible.

Code of Ethics is a set of rules for guiding the actions of employees or members of
an organization. So as, it is a set of ethical behavior guidelines which govern the day-to-day
activities of a profession or organization. It describes the appropriate conduct for a business
which can be used to defend a company against criminal action if an employee violates the
law. It can be written or unwritten

• Unwritten Codes of Ethics are the customs of a business. These are also
ways of completing tasks. Moreover, these are generally accepted practices
which are passed through the business verbally from employee-to-employee
example: an employee knows the Internet at work is not to be used for personal
matters

• Written Codes of Ethics are considered formal codes of ethics which allow a
company to have a “hard copy” of the procedures it condones. These are mainly
found within large businesses example: an employee must sign a confidentiality
agreement prior to employment in order to prevent them from leaking company
information

Developing a Code of Ethics Can be completed by: brainstorming ethical problems,

discussing potential solutions, writing a set of general guidelines and improving the code in
place.

Presuming that you are a manager of a certain company, why do you think you should
behave ethically? You, as manager should behave ethically to avoid harming others. You must
be responsible for defending and developing properties in their care. Unethical managers run
the risk for loss of reputation. This is a valuable asset to any manager. Reputation is serious
to long term management success. Take note that all stakeholders are judged by reputation.

You are halfway now on your module towards your main goal of crafting your own code
of ethics. Here are the guidelines that you need to know most.

Guidelines for Writing a Code of Ethics

1) Determine the purpose of the code

2) Tailor the code to the needs and values of the organization

3) Consider involving employees from all levels of the company in writing the code

4) Determine the rules or principles that all members of the organization will be
expected to adhere to

5) Include information about how the code will be enforced

6) Determine how the code will be implemented and where it will be published or
posted

7) Determine how and when the code will be reviewed and revised.

Now that you’ve already known the guidelines for writing code of ethics, do you think
you can craft your own code now? Not yet fully of course, because you need to know still the
common practices in business organizations. What are the common practices in business
organizations, anyway?

Common Practices in Business Organizations

1. Business protocol is a general term that may define several aspects of a business.
Everything from behavior and dress to task execution is defined under a business’s
protocol. Each employee upon being hired, these guidelines are typically defined for.
Business protocol may unite employees under common goals and ensure that tasks
are executed to the preferences of the company’s owner. Confusion is eliminated and
employees may be trusted to perform tasks quickly and independently. Employees
who are presented with a business’s protocol and etiquette up front will be able to
make informed decisions about whether the company is right for them.

2. Decorum separates one from being good or bad. In business lots of conditions and
situations decorum applies and must be seen being applied, some of it are dress and
appearance, social functions, in phone, in email and in person meetings.

3. Policies serve as guide to a certain business. There are lots of policy one business
may have, some of it are customer policy, credit policy, ethics and conduct policy,
employment policy and many more. It consists of rules that may lead a certain
company towards success.
 4. Marketing sets promotion on a certain business. In here, a certain business sets
guidelines and strategies to market the product or services it renders to the community.

5. Reportorial requirements include annual report which should contain, among others,
a balance sheet, profit and loss statement, statement of cash flows and management’s
discussion of results of operations.

6. Documentation includes data collection, design, mapping and process redesign.

Several professions have a code of ethics that exists independent of any particular
employment. For instance, a doctor or lawyer is always bound by the code of ethics for their
profession, regardless of whether they work for a large organization or are in private practice.
These codes constitute the basic expectations of these jobs and guide them when making
decisions.

The Business World

Corporations and have codes of ethics to help workers decide if certain behaviors are
appropriate and acceptable when dealing with clients and outside agencies. Many
organizations require employees to attend yearly training on ethics and, in some cases, to
sign statements promising to adhere to all ethical guidelines laid out by the company.

Examples of ethics in the business world include:

• Integrity - Employees should maintain honesty and clear communication in the

workplace.
• Teamwork - Members of a professional organization should work together to get the
job done.
• Objectivity - Employers should not make career decisions based on whom they like
best or with whom they have personal relationships.

Teachers and Education

Teachers and other education professionals are role models to their students. Their code of
ethics not only protects their students against mistreatment, but it also protects their sense of
fairness itself.

Some code of ethics examples in education include:

• Consideration - Teachers should put the needs of their students first.

• Growth - Educators need to pursue professional growth.
• Communication - Teachers work with parents as a support team for each student.

Personal Codes of Ethics

Individual codes of ethics can originate from religion, secular philosophy or rules of social
behavior derived from upbringing and experience. They are typically in line with the rest of
one's society, but one may have stricter or more relaxed personal ethics as well.
 Can you come up of your own code of ethics now, just as Jollibee Corp. has theirs
which rooted from their core values of honesty, integrity, trust and excellence?

PRACTICE EXERCISE 1:

DIRECTIONS: Create a code of Ethics for ABM Strand Student using the format shown. Add
your own definition to the principles given.

Code of Ethics for ABM Strand Student

Principles

Students in the ABM Strands are expected to apply and uphold the following principles:

1. Integrity
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

2. Objectivity
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

3. Confidentiality
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

4. Competency
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

PRACTICE EXERCISE 2:

DIRECTIONS: As ABM Stand Student, describe the rules of conduct for the defined principles
by completing the open-ended statements below.

1. Integrity
Students in the ABM Strand
1.1 Shall perform their work with ________________________________________.
 1.2 Shall respect and contribute to the ____________________________________
of the ABM Strand.

2. Objectivity
Students in the ABM Strand
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 ________________________________________.

4. Competency
Students in the ABM Strand
4.1. Shall engage only in those services __________________________________.
4.2. Shall perform __________________________ with the ABM Strand Standards.

INSTRUCTION: Please write your learning from the above discussion. Write your learning in
your answer sheet.

Upon reading the lesson above, I learned that…

_________________________________________________________________________
_________________________________________________________________________
__________________________________________________________ and realized that…
_________________________________________________________________________
_________________________________________________________________________

DIRECTIONS. Read and analyze each numbered statement carefully. Write the letter of your
best choice on your activity notebook.

_____1. What Greek word is ethics derived from?

A. Ethos C. Ethikoscos
B. Ethikos D. Ethiroscosmos
 _____2. What does moral of philosophy/ ethics refer to?
A. Theory of morality of right conduct
B. Theory of morality of good citizenship
C. Theory of morality of right communication
D. Theory of morality of good sportsmanship

_____3. Steve, an employee of a certain company always sees to it that he is dressed

properly whenever he is at work. What common practices in business
organization is being portrayed?
A. Decorum C. Marketing
B. Policies D. Reportorial requirements

_____4. Which of the following includes in an annual report?

A. Decorum C. Marketing
B. Policies D. Reportorial requirements

_____5. Which can be considered as stakeholders?

A. Employees C. Shareholders
B. Customers D. All of the above

_____6. Which is not true about guidelines in writing code of ethics?

A. It determines the purpose of the code
B. It tailors the code to the needs and values of the organization
C. It considers involving employees from all levels of the company in writing
the code
D. All are true

_____7. What is code of ethics?

A. It sets promotion on a certain business.
B. It is a set of rules for guiding the actions of employees or members of an
organization.
C. It considered formal codes of ethics which allow a company to have a
“hard copy” of the procedures it condones.

_____8. What ethics is being portrayed when members of a professional organization

worked together to get the job done?
A. Integrity C. Objectivity
B. Teamwork D. Professionalism

DIRECTIONS: Giving the sample below, craft your own code of ethics. It can be originating
from religion, secular philosophy or rules of social behavior derived from upbringing and
experience.

Sample code of ethics:

 • Consideration - Teachers should put the needs of their students first.
• Growth - Educators need to pursue professional growth.
• Communication - Teachers work with parents as a support team for each student.

REFERENCES

LoveToKnow.com “Code of Ethics Examples: From Personal to Professional”, Accessed

August 17, 2021. https://examples.yourdictionary.com/code-of-ethics-examples.html

Prezi Inc. “Business Ethics”, Cleo Catley, last modified February 09, 2018,
https://prezi.com/p/x5cyzbaoallv/business-ethics/

Prezi Inc. “5 Marketing Practices for Your Service-Based Business”, Eric L. Mitchell, last
updated September 11, 2018, https://prezi.com/p/x5cyzbaoallv/business-ethics/

Yonyx, Inc. “Importance of Business Etiquette”, Emily Newman, last modified June 19,
2015, https://corp.yonyx.com/customer-service/importance-of-business-etiquette/

Garalde-Orjalo, Victoria, Frias, Solita A. and Pefancio, Erlinda C. Business Ethics and
Social Responsibility: Principles, Policies, Programs and Practices. Quezon City Metro
Manila Philippines: Phoenix Pub., 2016.

KEY TO PRACTICE EXERCISES

PRACTICE EXERCISE 1 : Answers may vary

PRACTICE EXERCISE 2 : Answers may vary