BUSINESS ETHICS

THE CORE PRINCIPLES UNDERLYING FAIRNESS,

ACCOUNTABILITY, AND TRANSPARENCY IN BUSINESS
OPERATION AND STEWARDSHIP

Let’s Start
Being an Accountancy,
Business, and Management (ABM)
student, you can
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
Being an Accountancy, Business, and
Management (ABM) student, you can
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
Being an Accountancy, Business, and
Management (ABM) student, you can
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
Being an Accountancy, Business, and
Management (ABM) student, you can
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
Being an Accountancy, Business, and
Management (ABM) student, you can
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
Being an Accountancy, Business, and
Management (ABM) student, you can
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
be employed later in an enterprise or
even in a big corporation. Hence, it is
important
for you to know the ways on how fraud
or problems can be prevented in work
areas
or offices. As such, the core principles
of fairness, accountability, and
transparency
should be learned so that you can
apply the knowledge in case you
encounter those
fraudulent or problematic situations in
the future.
Being an Accountancy, Business, and Management (ABM) student, you can be employed later in an enterprise
or even in a big corporation. Hence, it is important for you to know the ways on how fraud or problems can be
prevented in work areas or offices. As such, the core principles of fairness, accountability, and transparency should be
learned so that you can apply the knowledge in case you encounter those fraudulent or problematic situations in the
future.

Specifically, you are to do the following:

 classify the situation if is shows fairness, accountability, or transparency;
 explain the core principles of fairness, accountability, and transparency; and
 illustrate how fairness, accountability, transparency and stewardship is observed in business and
non-profit organizations.

VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
 Let’s Explore
To help the business organization get on the right track, there are three core principles that should be
implemented in its operation - fairness, accountability, and transparency.

Fairness

This is the standard of judging which is exempted from bias or prejudice. When someone displays fairness in
making decision, he/she pleases all involved parties and offers a solution that is beneficial to everyone. In business
context, fairness means balancing the interests involved in all decision-making including those related to hiring, firing,
and the compensation and reward system. Employees think of their organizations as just when the rewards and the
way they are distributed are fair.
Fairness is giving to a person what is due to him/her. It has something to do with justice because the
employer checks whether the members have the benefits and burdens distributed evenly to them.

Examples of fairness:
1. A boss listening to both sides of the story before judging who is right and who is wrong.
2. An employer giving 13th month pay to all his/her employees.
3. A person paying the right price for a product purchased or for a service received.

Accountability

The most important aspect of preventing and detecting corruption is the sound accountability structures. A
civil society organization without proper systems of accountability is fragile and open to rumors of mismanagement
and abuse of authority. Worst of all, lacking it will prevent the organization from enjoying full respect and legitimacy
in the eyes of its stakeholders, including those bearers of duties that it intends to advocate with.

Accountability is the explication and justification process. It is about testing, forming a judgment, and taking
an action if necessary. It also comes with responsibilities. Holding people to account for those actions which they are
responsible for is fair.
Accountability is therefore an obligation to demonstrate that work has been carried out in accordance with
agreed rules and standards, or to report on performance results fairly and accurately in relation to mandated roles
and/or plans.

Examples of accountability:
1. A cashier admits he/she lost the company’s collection and it is his/her mistake.
2. An engineer who is assigned on a project is the one to be blamed if the project did not meet the deadlines.
3. Employee A recommended his cousin to be their company janitor, but the latter stole the cellular phone of
their secretary. Therefore, Employee A may be blamed for recommending his/her cousin and should pay or
replace the lost cellphone.

Transparency

Transparency, at the individual level, considers intrinsic or ethical salience as an important feature of the
relational dimension of a person. It is described as a personal quality which is necessary to develop unity between and
among individuals. A transparent approach makes a person more honest and sincere in his/her relationships, in
communicating his/her points of view, and in working actively to find shared meanings and goals.

Organizationally speaking, the instrumental salience of transparency is identified as an important mechanism

for ensuring social responsibility. For example, adequate disclosure is required to inform donors of how an
organization uses its money.

Transparency helps people to consider how the actions of social organizations such as multinational agencies
and non-governmental groups offer meaningful support to civil society and whether funding is being properly spent.

More examples of transparency:

1. Reporting accurately the company’s financial situation and risks to investors
2. Holding and selecting bids according to an open pre-defined process
3. Having an open process of decision-making such as in hiring additional employees
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.
VISION: Immaculate Heart of Mary Academy envisions of a life giving and innovating Educational ministry committed to
transforming community of learners into Christ-centered Augustinian Recollect Stewards.