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Business Ethics and Social Responsibility
COURSE ORIENTATION
Course Content Guide in Business Ethics and Social Responsibility

WEEK TOPIC DUE DATES

Week 1 Discussion of the Course Assessment
Schedule and Classroom policies and
Guidelines
Forms of Business Organization

Week 2 Ethics and Ethical principles

Week 3
The Code of Ethics
Week 4
Classical Philosophies
Week 5 Classical Philisophies

Week 6 The Filipino Value System

Week 7 The Filipino Value System

Qtr 4- The responsibilities and accountabilities

Week 1-2 of entrepreneurs towards:
A. Employees
B. Government
C. Creditors
D. Suppliers
E. Consumers
F. General Public
G. Other stakeholders

Qtr 4- ETHICAL ISSUES AND PROBLEMS

Week 3 IN BUSINESS AND THE
CORPORATE WORLD

Week 4 Models and Frameworks of social

responsibility in the practice of sound
business
Week5 Models and Frameworks of social
responsibility in the practice of Sound
business
Week 5 Business Beyond Profit

Week 6 Role Playing

(Ethical issues in the workplace)
Week 7 Preparation of Personal Action Plan to
promote social responsibility

Business Ethics and Social Responsibility

 QUARTER 3-WEEK 1 & 2
LESSON 1: FORMS OF BUSINESS ORGANIZATIONS AND ITS CHARACTERISTICS
LESSON 2: THE ETHICS ENVIRONMENT

LEARNING OBJECTIVES:

1. Identify the forms of business organization and their characteristics.

2. Explain the purpose of business organizations and their role in socioeconomic development.
3. Understand and appreciate the ethical principles.

INTRODUCTION:

Our national economy is composed of three important major sectors namely: the business enterprise,
households, and the government. The strength or weakness of one sector affects the other sectors because of their
interdependence.

TABLE 1. THE ROLES:

HOUSEHOLDS BUSINESS GOVERNMENT

ENTERPRISE
1. Provide service 1. Provides 1. Create laws and
employment policies
2. Consumers 2. Suppliers of 2. Provide security
goods/services
3. Pay tax 3. Pay tax 3. Provide
Education
4. Social 4. Infrastructure
contribution projects
5. Employment
6. Take the lead
among the 3
sectors
Business sectors plays a very important role in our society. Our society will not prosper without businesses.
Because business enterprise is an integral part of our society, its activities must be examined and monitored
well.

FORMS OF BUSINESS ORGANIZATIONS

1. Sole Proprietorship. This is the most simplest form of business organization: only one individual owns
the business.

Business Ethics and Social Responsibility

 2. Partnership. This refers to an association of two or more persons to carry on as co-owners of a
business for profit. “by the contract of partnership, two or more persons bind themselves to contribute
money, property, or industry to a common fund with the intention of dividing the profits among
themselves”.
3. Corporation. This refers to a separate body consisting of at least five individuals treated by law as a
unit. “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”. Sec. 2, The
corporation Code of the Philippines).
4. Cooperative. A duly registered association of persons, with a common bond of interest, who have
voluntarily joined together to achieve a lawful common social or economic end, making equitable
contributions to the capital required and accepting a fair share of the risks and benefits of the
undertaking in accordance with the universally accepted principles of cooperation.

These business organizations will undertake different activities such as production, marketing,
manufacturing, services and others for profit. Thus, their activities must be examined and monitored well.
Maybe, during the conduct of business, there might be questionable practices such as:
1. Misrepresentation-is observed when there is transformation of information to misinformation.
Ex. Lying, deceptive packaging, short weighing
2. Overpricing – to much mark-up on the products sold, unjust profit
3. False advertising-misleading/deceiving ads; fake information disclosures.
4. Unfair competition-
5. any malpractices wherein people’s rights are being violated.

WHAT IS BUSINESS ETHICS?

 Is the study of what is right and wrong human behavior and conduct of business.
 Is a study of the perceptions of people about morality, moral norms, moral rules and ethical principles
as they apply to people and institutions in business.
 Is the study, evaluation, analysis and questioning of ethical standards, policies, moral norms, and
ethical theories that managers and decision makers use in resolving moral issues and ethical dilemmas
affecting business.

The study of ethical principles is essential to all business practitioners and students as well. Ethical principles
guide and direct the performance and conduct of business leaders and their organizations.

For the leader or manager to accomplish the goals according to the moral courses of action, the individual
must have principles of conduct such as:
- courage - fairness
- honesty - integrity
- respect - responsible citizenship
- loyalty

FIGURE 1. ETHICAL DECISION PROCESS FOR BUSINESS AND ITS LEADERS

Understand all
moral standards
Determine the economic
outcomes

Define complete Consider the legal Propose moral

moral problem requirements convincing moral
solution
Evaluate the ethical
duties

Business Ethics and Social Responsibility

As shown on figure 1 above, after understanding moral standards and assessing moral impact, the
problem is identified
Recognize all and the valuation begins, with focus on:
moral impacts
 Economic outcomes or costs and /or potential profit of an option;
 Legal requirements or compliance with laws; and
 Ethical duties which identifies actions

The moral standards or philosophies shown in Fig. 1 refer to the principles, rules, and values people use in
deciding what is right and wrong.

Here are selected moral philosophies presented as guide or ethical systems:

Universalism states that all people should uphold certain values, such as honesty, and other values that society
needs to function.

Egoism defines acceptable behavior as that which maximizes consequences for the individual.

Relativism- bases ethical behavior on the opinions and behaviors of relevant other people.

Utilitarianism- seeks the greatest good for the greatest number of people.

Examples of these philosophies when determining a defective product.

Universalism viewpoint says that all people would have the same measurement with regard to the
defective
product.
Egoism view point would be silent with regard to the defective product.
Relativism viewpoint encourages discussion on industry practices, company policies with regard to the
defective product.
Utilitarianism principle would dictate a thorough cost benefit analysis of the defective product.

In addition, figure 1 measures and answers questions on:

 Which people will benefit?

 Which people will be harmed?
 Whose rights are denied?
 Who are able to exercise their rights?

Examples of current ethical issues that enterprise may be challenged

Consumerism – such as those related to high gasoline and drug prices that result to consumer
anger and frustration;
Globalization- which theorizes that this economic development favors the interests of
multinational companies;
Wages-statistics of which show that they have not increased in comparison to productivity
levels;
Urban sprawl, which has seen the entry of superstores and chains in many cities

Business Ethics and Social Responsibility

Kohlberg’s model of cognitive moral development classifies people into categories based on their level of
moral judgement

3 categories:
1. Preconventional stage - where people make decisions based on concrete rewards and
punishments and pressing self-interest.
2. Conventional stage – where people obey the rules according to the expectations of ethical
behavior held by groups or institutions such as society, family or peers
3. Principled stage – where people see beyond authority, laws and norms and follow their self
chosen ethical principles.

Business Ethics and Social Responsibility