profit
● objective of most businesses
● amount of money a business takes in after all the
expenses needed to operate the business have
been deducted from the revenue
● total income - expenses = total profit
revenue
● total amount of money a business ears during a
given period by offering products to the market
● revenue = sale of goods/services
organization
a. for profit organization
i. exist to make a profit
ii. owners keep the profit
iii. income from sales
iv. vital part of a free-market economy
b. non profit organization
i. exist to serve society
ii. have religious, educational, welfare, or
charitable purposes
iii. income from donations, subscriptions, and
grants
forms for business organizations
a. sole proprietorship
● owned and operated by an individual
● owner has full authority on the business
and owns all assets and profits
● personally liable for all obligations and
losses
● simplest form of business organization
b. partnership
● two or more people share ownership as
well ass the responsibility for managing the
company or the income or losses the
business generates
● dissolved upon death of the partner or
when the partner chooses to leave
● common professional partnerships are law
and accounting firms
c. corporation
● 5 to 15 people who are called incorporators
● hold at least one share of stocks and are
bound by the articles of incorporation
● bound by the articles of incorporations filed
with SEC (securities and exchange
commission)
business organizations and economy
● economic conditions affect businesses in the
market
● changes in the economic and the political system
can have an impact on certain industries or the
whole business system
economics: study of scarcity and its implications for the
use of resources
resources: include natural, human, and financial (also
called factors of production)
economic system
a. capitalism
● individuals own and operate the majority of
businesses and provide goods or services
● free enterprise
● competition is encouraged by market forces
and government regulations
b. communism
● society in which the people – without regard
to class – own all the nations resources
● everyone contributes to the goods and
services based on their needs
● no competition because government owns
and operates businesses
c. socialism
● government owns and operates basic
industries but individuals own most
businesses
● competition is restricted in major industries
owned and operated by the government but
it is encouraged in small businesses
why have businesses
a. providing goods and services
b. creating employment opportunities
c. advancing the economy
d. investing in innovation and excellence
e. promotes sustainability
ethics
● study of moral problems, practical reasoning, right
and wrong, good and bad
● character, moral duty, and related issues involving
the nature, origins or scope of moral values
● discipline that examines one's moral standards or
the moral standards of one's society
● talks about how we should behave as human
beings
man is endowed with intellect and rationality.
business ethics
● refers to implementing appropriate business
policies and practices with regard to arguably
controversial subjects
● application of moral values to business
● study of just and unjust actions in business
 six ethical lenses
mission purpose of the organization and focus is
at present a. the rights lens
● states that the human person has dignity
vision what the organization wants to become including moral rights of making ones
in the future choices freely
b. the justice lens
values lay the foundation of what the company ● states that each person should be given
cares the most about
their due
● due means fair and equal treatment
importance of business ethics c. the utilitarian lens
a. improve the reputation of your business ● produces the greatest balance of good over
i. attracts and retains a strong customer base harm for many stakeholders as possible
b. employee perception d. the common good lens
i. employees want to work in a positive ● calls attention to common conditions that
environment are important to the welfare of everyone
ii. companies should maintain an atmosphere (clean air, just laws, effective health care,
of fairness and openness – if they sense good educational system, etc.)
unfairness they will leave the organization e. the virtue lens
c. become a better businessman and human being ● states that ethical actions should be
i. becoming a better person comes first consistent with virtues that provide full
before becoming a better businessman development of humanity
f. the care ethics lens
what is the law ● rooted in relationships and it employs care,
● universally accepted rules and regulations imposed kindness, compassion, generosity, and
by the government / an organization concern for stakeholders to resolve ethical
● can be imposed by imposing penalties conflicts
_______________________________________________
corporate social responsibility (csr)
to be socially responsible a business must meet economic, corporate culture
legal, ethical, and philanthropic expectations given by ● values beliefs and behaviors that determine how
society at a given point in time the employees and management interact, perform,
a. economic responsibility: be profitable and handle business
b. legal responsibility: obey the law ● reflected on the following:
c. ethical responsibility: be ethical a. office set-up
d. philanthropic responsibility: be a good corporate b. business hours
citizen c. dress code
d. hiring decisions
e. employee benefits
f. treatment of employees
g. employee turnover
h. treatment of clients
i. client satisfaction
j. business operations

common ethical issues in business organizations

a. misinterpreting the benefits of a product
● overstating a products benefits in order to
six key ethical values that can help you make a sale – committed by a sales
a. trustworthiness personnel or even by marketing officers
b. respect b. misuse of company time and resources
c. fairness ● some employees might change activities
d. caring that are not related to their job
e. responsibility c. abusive behavior
f. citizenship ● harassing a colleague by using physical
threats, false accusations, profanity, and
yelling
 d. conflict of interest f. filipino hospitality
● happens when an employee is presented a ● known for hospitality worldwide
dilemma of whether to advance personal ● trait works best in hospitality and tourism
gain or interests or that of the company’s industries
_______________________________________________
impacts of different belief systems on business ethics corporate social responsibility
a. buddhism ● practice of business organizations that accounts for
● there are five precepts or training rules the social and environmental impacts that the
which help promote coexistence and business creates
harmony in the society
1. no killing - respect for life practicing csr means
2. no stealing - respect for others a. duty not to cause harm
property ● if company caused harm to a property or
3. no sexual misconduct - respect for person then the business organization
our pure nature should be held accountable for violating its
4. no lying - respect for honesty responsibilities
5. no intoxicants - respect for a clear ex. toyota recalls 2.9 million cars for faulty airbag sensors
mind b. responsibility to prevent harm
b. islam ● when a company has the capability to
● shariah – islamic religious law which is prevent harm from occurring
guided by honesty (no cheating or ex. unilab created a subsidiary company to market and distribute
deception) generic medicines that are sold for a cheaper price to cater to the
poor
c. christianity
c. responsibility to do good
● based on old and new testament
● social responsibility to do good things and
● called by God to be stewards of resources
make society a better place
and responsibilities leading other people to
● providing solutions to social issues, giving
the right path or using and caring for the
support to education, arts, and culture
environment
ex. jollibee group foundation implements programs for
agriculture, education, and disaster response with their
impact of filipino practices and belief systems on
partner communities nationwide
business ethics
a. filipino time – being late
pyramid of csr
b. padrino system – patronage
● when one gains favor, promotion, or
political position through family affiliation or
friendship as opposed to earning it due to
skill
c. utang na loob – indebtedness in gratitude
● concept of “paying” back a person in
non-monetary terms
● the good deed that has been received will
be paid back with a good deed
● may cause ethical dilemmas such as giving
a promotion or a special favor to an
undeserving employee
d. pakikisama – comradeship
● how filipinos take care of their interpersonal
relationships
● agreeing to what the majority wants and
getting along with others
employer and employee relationship
● a person may do a favor out of
● refers to the working connection between
“pakikisama” even if it is illegal
employers and employees in the workplace
e. bahala na / mamaya na habit
● managers and subordinates are reliant with each
● bahala na – leaving everything to chance
other in order to produce outcome beneficial to the
● mamaya na – delaying to do things instead
business
of doing things now
● two must have a strong relationship
employer rights
a. hire an employee
b. manage work and give instructions and regulations
relating to work management
c. dismiss or dissolve a contract of employment within
the limits provided by law (downsizing)
employer responsibilities
a. provide a safe workplace and protect the health of
the employees
b. provide equipment and machinery that is in safe
condition
c. provide adequate training
d. practice due process and just cause
downsizing
● to limit their costs due to financial difficulties,
closure of branches, use of technology that replace
human resource
● not unethical but companies must act ethically in
the process of downsizing by maintaining respect,
dignity, transparency, and consistency
● stakeholders must be informed of the decision
regarding downsizing and should not come as a
surprise to them
● termination pay is provided to the terminated
employee to help him cope while looking for a new
job
health and safety
● employers have the responsibility to protect the
employees at work
● make sure that the company is free from hazards
● precaution should be taken to reduce chances of
injury
due process and just cause
● employers need to take action when an employee
commits a mistake and will give a sanction
commensurate with the mistake committed
● a legal case must be done in a way that protects
the rights of all people involved
employee rights
a. equal work opportunities for all
b. security of tenure
c. work days and work hours
d. weekly rest days
e. wage and wage related benefits
f. safe working conditions
g. right to self organization and collective bargaining
discrimination and diversity
a. employee discrimination
● treating an employee or co-worker
unfavorably or unfairly because of his/her
religion, gender, race, sexuality, or disability
● treating someone less favorably because
they have different characteristics from the
other office staff
b. ways that workplace discrimination manifests
● unfair treatment
● harassment
● denial of transfers and other opportunities
● exclusion or isolation by co-workers
● unfair dismissal
business and environmental sustainability
● leo tolstoy: one of the first conditions of happiness
is that the link between man and nature will not be
broken
● mahatma gandhi: earth provides enough to satisfy
every man’s needs but not every man’s greed
four biggest environmental issues in the philippines
a. air pollution
● causes: vehicular emissions, use of
firecracker, agricultural burning,
industrialization
b. plastic pollution
● severe problem of the country
● causes: dependence of single use plastic,
inefficient recycling system, inefficient
waste management
c. marine pollution
● causes: inadequate filtering of waste water,
illegal disposal of wastes, dynamite fishing
d. sea level rise
● cause: mountain glaciers and polar ice
sheets are increasingly melting causing
oceans to expand
● effect: typhoons
six reason on the depletion of natural resources
a. consumer affluence
● increase in wealth of individual income has
lead to increase in indiscriminate spending
and consumption which produce wastes
b. materialistic and cultural values
● mentality of consumption over conservation
● “throwaway culture”
c. urbanization
● concentration of people in cities increase
pollution
● more people = more demand for houses
and cars
d. population explosion
 ● population growth = more industrialization,
product consumption, waste and pollution
e. new and uncontrolled technologies
● some companies that prioritize profits,
convenience, and consumption over
environmental protection disregard the
impact of technology used
f. industrialization
● industrial activities deplete natural
resources and the destructive use of the
environment for economic reasons causes
environmental decay
natural step framework
● planning tool to enable communities and
businesses to profitably integrate environmental
and social considerations into strategic decisions
and daily operations
natural step backcasting
● planning tool method in which future desired goals
are then defined to attain those goals
● examines what the future will be when we emerge
through the funnel
three steps for backcasting
backcasting for businesses and sustainability
● businesses must take action in order not to
jeopardize human well-being by exceeding the
Earth’s capacity to renew the resources and absorb
the wastes
three approaches to environmental sustainability
a. the market approach
● focuses on efficient markets that seek
profits but allow the market to allocate
resources efficiently
● premised on the idea that it is possible to
involve corporations, individuals and
government agencies to work in service to
the environment
● consumers will be willing to support
activities for pollution control if the
perceived benefits outweigh the costs
ex. e-trike or e-jeep
b. the regulatory approach
● regulatory standards established by the
government should be in place to prevent
the occurrence of pollution, environment
degradation and extinction of species
c. sustainability approach
● development that meets the needs of the
present without compromising the ability of
the future generations to meet their own
needs
three pillars of sustainability
a. economic sustainability
● providing products and services to
customers without negatively impacting
social, environmental, and cultural aspects
of the community
b. environmental sustainability
● the responsible interaction with the
environment to avoid depletion and
degradation of natural resources for future
generations’ use and the preservation of
human life
c. social sustainability
● managing and identifying the business
impact both positive or negative on people
● treating employees fairly, being a good
company to its clients and a community
member
● having good working relationships with
other companies both locally and
internationally
sustainable development goals
● urgent call/a blueprint for action by other countries
developed and developing to attain a better and
more sustainable future for all
a. no poverty: end poverty in all its forms
everywhere
b. zero hunger: achieve food security and
improved nutrition and promote sustainable
agriculture
c. good health and well being: ensure healthy
lives and promote well-being for all at all
ages
d. quality education: ensure inclusive and
equitable quality education and promote
lifelong learning opportunities for all
e. gender equality: achieve gender equality
and empower all women and girls
f. clean water and sanitation: ensure
availability and sustainable management of
water and sanitation for all
g. affordable And Clean Energy: ensure
access to affordable reliable, sustainable
and modern energy for all
h. decent work and economic growth: promote
sustained, inclusive and sustainable
economic growth, full and productive
employment and decent work for all
i. industry, innovation and infrastructure: build
resilient infrastructure, promote inclusive
and sustainable industrialization and foster
innovation
j. reduced inequalities: reduce inequality
within and among countries
k. sustainable cities and communities: make
cities and human settlements, inclusive,
safe, resilient and sustainable
l. responsible consumption and production:
ensure sustainable consumption and
production patterns
m. climate action: take urgent action to combat
climate change and its impacts
n. life below water: conserve and sustainably
use the oceans, seas and marine resources
for sustainable development
o. life on land: protect, restore and promote
sustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse land
degradation and halt biodiversity loss
p. peace, justice and strong institutions:
promote peaceful and inclusive societies for
sustainable development, provide access
for justice for all and build effective,
accountable and inclusive institutions at all
levels
q. partnership for the goals: strengthen the
means of implementation and revitalize the
Global Partnership for Sustainable
Development