Quarter 3 , LAS-2-3

Learning Activity Sheets (LAS)

for Business Ethics and Social Responsibility- Grade 12

Name of Learner: ____________________________________ Grade & Section:_______________

School: ______________________________________________ Date: __________________________
Learning Competency:
The learners will illustrate how fairness, accountability, transparency, and stewardship is observed in
business and nonprofit organization and formulate a “code of
ethics” that reflect core principles derived from analyses
ABM_ESR12-IIIa-d-1.4; ABM_ESR12-IIIa-d-1.5; ABM_ESR12-IIIa-d-1.6

ETHICAL AND UNETHICAL BEHAVIOR

ETHICS is derived from the Greek word “ethikos” which means “having to do with
character. The Latin word for ethos is “mos” (or “mores”). That is why we known Ethics
as the Moral Science or Moral Philosophy. It refers to the theory of morality of right
conduct.
-refers to the study of morals and moral choices of human beings.
-A system of moral principles.
- concerned with what is good for individuals or society and is also described as moral philosophy.

BUSINESS ETHICS DEFINED

1. BUSINESS ETHICS is the study of what is the right and wrong human
behavior and conduct in business.
2. BUSINESS ETHICS is a study of perceptions of people about morality, moral
norms, moral rules, and ethical principles as they apply to peoples and
institutions in business.
3. BUSINESS ETHICS 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.

Business Ethics is defined as the practice of what is morally and ethically right in the conduct of business in
the workplace.

All members of the organization, from top management down the line, should practice ethical standards that
will morally uphold the organization and sustain its credibility and integrity at all times.

It is essentially doing what is right in any business transactions.

BUSINESS ETHICS provide the ethical standards in the workplace. Having high ethical standards helps
establish credibility and the good image of the organization. It also attracts customers and applicants.
Employees are proud to be part of an organization with good reputation, thus remain loyal in the company.

1. HONESTY 7. RESPECT
2. INTEGRITY 8. OBEYING THE LAW
3.KEEPING PROMISES 9. EXCELLENCE
4.LOYALTY 10. BEING A LEADER
5. FAIRNESS 11. MORALE
6.CARING 12. ACCOUNTABILITY

THE CORE PRINCIPLES OF GOOD CORPORATE GOVERNANCE

A Good Corporate Governance in all businesses and even in non-profit organizations such as foundations
is very important in order to build trust and confidence the investors, donors, and the community in general.
A good corporate governance builds the integrity of the institution. Below are the Core Principles of a Good
Corporate Governance:

FAIRNESS
Fairness comes from the old English word faeger, which means “pleasing or attractive.” It is the quality of
making judgments that are free from discrimination. Fairness in the context of a business organization
involves balancing the interests involved in all decision-making including any decisions related to hiring,
firing (including the investigatory process), and the compensation and rewards system. Hiring the right people
is one of the most important decisions an organization makes.

Overall, fairness has to do with justice, which is to give to another that which is due him or her. More
concretely, justice: (1) looks at the balance of benefits and burdens distributed among members of a group;
and/or (2) can result from the application of rules, policies, or laws that apply to a society or a group. In
general, the just results of actions override utilitarian results.
ACCOUNTABILITY
Accountability. – What it is:
To be liable to explain or justify one’s action and decisions.
Process of explanation and justification
Testing, forming a judgment and taking actionImplies responsibility

Accountability is the obligation of an individual or organization to account for its activities, accept
responsibility for them, and to disclose the results in a transparent manner.

Accountability in the context of a business organization is the obligation to demonstrate that work has been
conducted in compliance with agreed rules and standards or to report fairly and accurately on performance
results vis-à-vis mandated roles and/or plans.

TRANSPARENCY

Transparency is defined as being authentic in the way an organization message themselves externally – to
stakeholders, to prospective customers and talent, and within the community. It allows stakeholders to
understand whether the activities of social institutions provide a genuine service to civil society and whether
money is used appropriately.
Thus, transparency means there is lack of hidden agendas or conditions, accompanied by the availability of
full information required of collaboration, cooperation, and collective decision-making.
Is essential in building families, and through families, in strengthening civil society as a whole.
-important mechanism for guaranteeing social accountability.

STEWARDSHIP
In Biblical terms, stewardship is defined as utilizing and managing all resources God provides for the glory of
God and the betterment of His creation. That definition plays a critical role in today’s business landscape.
In the context of business organization, stewardship refers to taking responsibility for the business and the
effects it has on the world around it. This involves considering more than just the bottom line and looking at
elements such as values, ethics, and morals

The Relationship of Accountabilty/Stewardship/Responsibility with Ethical Businesses

Servant Leaders. Go beyond their own self-interest and focus on opportunities to help followers grow and
develop.
Servant Leadership. Focuses on serving the needs of others, research has focused on its outcomes for the
well being of followers.

UNETHICAL BUSINESS PRACTICES

THERE are unethical behaviors that should be avoided because such destroy the company’s reputation and
result in bad business . Managers who get involved in unscrupulous-immoral,unethical end up in jail or are
ostracized-enemy of the people- by the business community.

1. Accounting manipulations
2. Overbilling
3. Misleading advertisements
4. Making false claims
5. Customer service failures
6. Lay-off and high executive compensation
7. Poor-quality materials

CHARACTERISTICS OF ETHICAL ORGANIZATION

o Ethical Organization are based on the principles of fairness.

o All stakeholders are treated equally without any discrimination.
o Benefit of stakeholder in given precedence over own interest.
o There is a clear communication in an ethical organization.
o What is to be done, how it is to be done is clearly stated.
o No bureaucracy.
o Minimum bureaucracy and high control helps in implementing business ethics.
o Compliance with applicable laws.

GOOD POLICIES AND ETHICAL PRACTICES IN BUSINESS ORGANIZATIONS

1. Business organizations should comply with reportorial requirements as mandated by government agencies
for ethical practices
2. Practice proper office decorum
3. Be sensitive to smells and scents which maybe unpleasant to the employees
4. Company property or assets are for business purposes and not for personal use.
5. Employees should use communication infrastructure properly and appropriately
6. Employees should always act in the best interest of their employer
7. There are confidential information that are protected and which should not be divulged to anyone outside
the company without proper authorization.
8. All financial and accounting records should be accurate, reliable and truthful

CODES OF ETHICS AND BUSINESS CONDUCT

When huge corporate scandals began to proliferate, companies began creating communications propaganda
for building corporate reputations
American ethical codes were first called creeds or credos and those in the 1980s were considered
“legalistic” and “more likely to talk about ethics or the reputation of the company”
Codes – articulate parameters of the organization – what is acceptable and what is not.

KAPTEIN & WEMPE (2002) – Describe codes as policy documents defining responsibilities of the organization
to stakeholders and articulating the conduct expected of employees.
NIJHOF et al. (2003) – note codes contain open guidelines describing desirable behaviors and closed
guidelines prohibiting certain behaviors.
CARL SKOOGLAND (2003) – The former ethics director of Texas Instruments, known for his three key
principles:
“Ethical managers must know what is right, value what is right and do what is right.

COMPONENTS OF A CODE OF ETHICS

1. Values-A company values guide the organization’s internal conduct and it’s relationship with stakeholders.
They emanate from its corporate culture.
2. Principles-To support the values of the organizations there are credos that employees should live with
during their stay in the company. Business principles such as customer satisfaction, business profitability
and continuous improvement are just some of the priciples that stakeholders live by Corporate responsibility
is another principle found in code of ethics.
3. Management Supports-This means that management is serious in considering the code as the bible of the
employees in terms of ethics.
4. Personal Responsibility- Any member of the organization should uphold and preserve the code of ethics
because any violation of the code may involve legal and moral consequences. Each employee should be guided
by the code and must report anyone who violates
5. Compliance-All legal requirements of the code should be met, any licensing requirements including but not
limited to reporting of financial statements , should be met.

Creating Corporate Codes of Ethics Accdg. To Sauser and Sims (2013)

1. Adopt a code of ethics
2. Provide ethics training
3. Hire and promote ethical people
4. Correct unethical behavior
5. Take a proactive strategy
6. Conduct a social audit
7. Protect whistle blowers
8. Empower the guardians of integrity
9. Assure commitment from the top
10. Communicate the standards of conduct widely throughout the organization and the industry.
11. Designate an ethics officer with clear responsibility for enforcing ethical standards.
12. Establish a process for reporting violations of ethical standards and actively investigate all reported
violations
13. Assure due diligence by the organization’s board of directors
14. Above all lead by example

EXAMPLES CONTENTS OF CODE OF ETHICS

AYALA CORPORATION’s 4 Core Values:

Integrity
Long-term vision
Empowering leadership
Commitment to national development

AYALA CORPORATION’S CODE OF ETHICS

All directors, officers, and employees shall

1. Conduct business in accordance with Philippine laws and regulations;
2. Personally and firmly adhere to standards and restrictions imposed by laws and regulations as well as
the corporation’s policies, rules and procedures; and
3. Ensure compliance with all disclosure requirements making sure, that all disclosures of material
information are full,f air, accurate, clear and timely.
UNILEVER CODE OF ETHICS

Unilever employees must

1. Respect the dignity and human rights of colleagues and all others they come into contact with as part of
their jobs; and
2. Treat everyone fairly ad equally, without discrimination on the grounds of race, age role, gender, gender
identity, color, region, country of origin, sexual orientation, marital status, dependents, disability,
social class or political views. This includes consideration for recruitment, redundancy, promotion,
reward and benefits, training or retirement which must be based on merit.

EXERCISES:

I. TRUE OR FALSE

______1. Fairness involves balancing the interests involved in all decision- making including decisions related
to employees’ hiring, firing, compensation, and reward system.
______2. Transparency allows stakeholders to understand whether the activities of social institutions such as
internet organizations and NGOs provide a genuine service to civil society and whether money is used
appropriately.
______3. Transparency means to be liable to explain or justify one’s action
and decision.
______4. Accountability is the quality of making judgment that is free from discrimination.
______5. Accountability implies responsibility.

II.Choose the letter of the correct answer.

1. You insert the exact amount into the vending machine at school for a can of soda. Two cans are
released from the machine. What will you do with the extra can of soda?
a. Offer the can of juice to your classmate.
b. Keep the extra can of soda for you.
c. Report an incident to appropriate school personnel.
2. Employees expect that their employers will be transparent. What does this refer to?
a. The need for an office space to use glass walls.
b. Employees are responsible for their employer’s actions.
c. Employers to provide honest and clear information to their employees.

3. Joseph found out his teacher’s password to open her Facebook account. What is the ethically correct
thing for him to do?
a. Give the password to all other students.
b. Tell the teacher so she may change it.
c. Keep it to himself and if someone finds out the password it is not his problem.
4. Arriving to work on time is an example of which characteristic of a good employee?
a. Timeliness
b. Personal accountability
c. Adaptability
5. Providing wrong information on the resume is an example of which of the following:
a. Lack of transparency on employee’s part.
b. Poor transparency on an employer’s part.
c. Lack of accountability on an employer’s part.

III. CASE STUDY:

A. MANG EUGENIO VENTURA: FILIPINO TAXI DRIVER WITH A GOLDEN HEART

The story of Mang Eugenio Ventura, an extraordinary cab driver, went viral in the social media when a
passenger spread the good work about him, not rejecting passengers (despite heavy traffic in Metro
Manila) and declining tips. Apart from being fair and honest, he is the jolly type – he
just laughs off the congestion on the main roads of the city. He got featured in an episode of the TV
Program “Mission Possible.”

Questions:
1. What do you think has molded the fair, honest and cheerful behavior of Mang Eugenio?

2. What lesson have you learned from the good example of Mang Eugenio?

3. In school, how can you teach and train students in fair, honest and ethical behavior?

Source: pinoystory.com/ scribd.com

 B. Reflective learning Activity

As the country continues to deal with myriad COVID-19 pandemic, Filipinos need to work to earn
money to improve life as well as to help others.

Work is part of God’s design to humanity. It is a calling entrusted to man where it requires
stewardship of time, resources, and giftedness.

As an employee or worker, you should never steal from your company. You should obey and honor the
managers of your company. It is not only out of obligation, but for personal growth as well.

As an employer, you are called to be a good steward of your resources especially the people who work
for you. You are blessed by God to be a blessing to others. As 1 John 3:17 says, “But if anyone has
the world’s goods and sees his brother in need, yet closes his heart against him, how does God’s
love abide in him?”
The pandemic is now challenging you. What does it mean to be a steward in your home? in school? in
community? in workplace?

IV.
1. Craft at least 5 Code of ethics or Code of Right Conduct for your business in the future.

2. Assess yourself and relate this statement to yourself. “ It is said that respect is not imposed but earned.
Being respectful means being courteous at all times in all dealings, regardless of stature”

Prepared by: MARY BERNADETTE S. MANDARIAGA Noted: KRISTIN M. CEPEDA

Subject Teacher Group Head ABM

Approved: SALVADOR J. SEMBRAN, Phd.

Asst. Principal II