BSAC-2 ACD

Presented by Group 3

Business
Ethics and
Dilemmas
A presentation about Business Ethics and
Ethical Dilemmas.

XAVIER UNIVERSITY - ATENEO DE CAGAYAN

 Topic of discussion
1 — Basic Concepts 2 — Purpose 3 — Scope and Impact

4 — Ethical Challenges 5 — Resolving Ethical

in Today's World Dilemmas

This is a guide to help you understand what we are going to learn.

Every topic is clear and straight to the point.

XAVIER UNIVERSITY - ATENEO DE CAGAYAN

 Business Ethics
It refers to standards of moral conduct, behavior, and judgment in business. It is an area of
corporate responsibility where businesses are legally bound and socially obligated to conduct
business in an ethical manner. It is based on the personal values and standards of each person
engaged in business. (Cabrera & Cabrera, 2019)

Business ethics refers to implementing appropriate business policies and practices with regard
to arguably controversial subjects. Some issues that come up in a discussion of ethics include
corporate governance, insider trading, bribery, discrimination, social responsibility, and
fiduciary responsibilities. The law usually sets the tone for business ethics, providing a basic
guideline that businesses can choose to follow to gain public approval. (Twin, 2021)

CABRERA, M. E., & CABRERA, G. A. (2019). CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT, AND INTERNAL CONTROL. MANILA: GIC ENTERPRISES & CO. INC. RETRIEVED AUGUST 22, 2022

TWIN, A. (2021, AUGUST 29). BUSINESS ETHICS. RETRIEVED AUGUST 22, 2022, FROM INVESTOPEDIA: HTTPS://WWW.INVESTOPEDIA.COM/TERMS/B/BUSINESS-
ETHICS.ASP#:~:TEXT=BUSINESS%20ETHICS%20REFERS%20TO%20IMPLEMENTING,SOCIAL%20RESPONSIBILITY%2C%20AND%20FIDUCIARY%20RESPONSIBILITIES.
 Purpose
Main Purpose:
- The main purpose of business ethics is to help businesses and would-
be businesses to determine what business practices are right and what
are wrong. Hopefully, they are going to use this knowledge to guide them
in making the right business decisions.

Special Purpose:
To make businessmen realize that they cannot employ double
standards to the actions of other people and to their own actions
To show businessmen that common practices which they have
thought to be right because they see other businessmen doing it, are
really wrong.
To serve a standard or ideal upon which business conduct should be
based

Cabrera E., & Cabrera G. (2020). Corporate Governance, Business Ethics, Risk Management and Internal Control
(2019-2020 ed.) GIC Enterprises & Co., Inc.

CABRERA E., & CABRERA G. (2020). CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL (2019-2020 ED.) GIC ENTERPRISES & CO., INC.
 Scope and Impact
Scope Impact
Business ethics covers all Economic Impact
conduct, behavior and

judgment in business. Social Impact

Actions not forbidden by law

are ethical. Environmental Impact

Business ethics is based on the

personal values and standards Impact on Business Managers

of each person engaged in

business.

CABRERA E., & CABRERA G. (2020). CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL (2019-2020 ED.) GIC ENTERPRISES & CO., INC.
Ethical Challenges in
Today's World

Misbranding False Advertising Harassment and Discrimination

CABRERA E., & CABRERA G. (2020). CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL (2019-2020 ED.) GIC ENTERPRISES & CO., INC.
Ethical Challenges in
Today's World

Over-Persuasion Plain Graft

CABRERA E., & CABRERA G. (2020). CORPORATE GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT AND INTERNAL CONTROL (2019-2020 ED.) GIC ENTERPRISES & CO., INC.


Ethical Is a situation a person faces in which a

decision must be made about the
Dilemma appropriate behavior.

 Resolving Ethical
Dilemmas

Identify what the What are the

ethical issue is? Who is affected available
and how is each alternatives of the
affected? doer?
 Resolving Ethical
Dilemmas

What are the What’s the

consequences of appropriate
each Alternative action?
 EXAMPLE
Bert Cruz has been working for 6 months as a staff assistant for a law firm, Alvendia
and Castro, Currently, he is assigned to the case of Ryan Manufacturing Company
under the supervision of Carlos Reyes, an experienced senior lawyer. There are three
junior legal assistants assigned to the case, including Bert, Carlos and more
experienced assistant, Martha Sy.

During lunch on the first day, Carlos says, "It will be necessary for us to work a few
hours on our own time to make sure we come in on budget. This case isn't very
profitable anyway, and we don't want to hurt our firm by going over budget. We can
accomplish this easily by coming in a half hour early, taking a short lunch break, and
working an hour or so after normal quitting time.. We just won't write that time down
on our time report."

 EXAMPLE
Bert recalls reading in the firm's policy manual that working hours and not charging
for them on the time report is a violation of Alvendia and Castro employment policy.
He also knows that seniors are paid bonuses, instead of overtime, whereas staffs are
paid for overtime but get no bonuses.

Later, when discussing the issue with Martha, she says, "Carlos does this on all of his
job. He is likely to be our firm's next manager. The partners think he is great because
his job always come in under budget. He rewards us by giving us good engagement
evaluations, especially under the cooperating attitude category. Several of the other
seniors staff follow the same practice."

 Resolving Ethical
Dilemmas
Identify what the What are the
ethical issue is? Who is affected available
and how is each alternatives of the
Is it ethical for Bert
affected? doer?
to work hours and
not them as hours
worked in this
situation?

 Refuse to work the additional hours.

Perform in the manner requested.
What are the Inform Carlos that he will not work the
available additional hours or will charge the additional
alternatives of the hour to the engagement.
doer? Talk to manager or partner about Carlos’s
request.
Refuse to work on the engagement.
Quit working for the firm

 Refuse to work the additional hours.

A supervisor asks Bert to work 3 unreported hours
daily and 15 unreported hours each weekend.
A supervisor asks Bert to initial certain procedures
as having been performed when they were not.
Bert concludes that he cannot be promoted to
What are the manager unless he persuades assistants to work
consequences of
hour that they do not record.
each Alternative
Management informs Bert, who is now a partner,
that either the company gets a P400,000 legal fee
or the company will change lawyers.
Management informs Bert that the legal fee will be
increased P50,000 if Bert can find a plausible way
to increase probability of winning the case.
 Only Bert can decide the appropriate option to
What’s the select in the circumstances after considering his
appropriate ethical values and the likely consequences of each
action? option.

 Managing good ethics in business

improves quality human relationships
and better communication.
- Olivia Wilson
 Presented by Group 3

Thank you!
Question time