CODE OF ETHICS

Lesson 4
ACTIVITY

Direction: Read the case then

answer the questions that
follow
ACTIVITY
ACTIVITY
ACTIVITY
 ACTIVITY: QUESTIONS

1. If you were in Lynn’s position, will you report

what you found out about Michelle to Luxor’s
Management? Explain your answer briefly.

2. As the owner/manager of Luxor tours, how will

you handle this case if the information was
reported to you? Explain your answer briefly.
WHAT IS CODE OF ETHICS OR ETHICAL CODES?

● collection of principles and practices that a

business believes in and aims to live by (Spiro
2010)
● adopted by organizations to assist members in
understanding the difference between 'right' and
'wrong' and in applying that understanding to their
decisions.
DISTINCTION BETWEEN ETHICAL CODE AND
CODE OF CONDUCT

Code of ETHICS
- publicly available and addressed to anyone with
an interest in the company's activities and the way it
does business.
- include details of how the company plans to
implement its values and vision, as well as guidance to
staff on ethical standards and how to achieve them.
DISTINCTION BETWEEN ETHICAL CODE AND
CODE OF CONDUCT

Code of Conduct
- generally addressed to and intended for
employees alone.
- sets out restrictions on behavior, and will be
far more compliance or rules focused than value
or principle focused.
CAN A CODE OF CONDUCT AND CODE OF
ETHICS BE COMBINED

➢In most cases businesses will combine both of these

documents into one as there is significant overlap
between them.
➢It is rare to find businesses that have two separate
policies.
➢While they are technically different documents,
employees will have less difficulty recalling important
points around conduct and ethics if they have a
single document to refer to (Better team 2020).
WHY DEVELOP AND ADOPT A CODE OF
ETHICS?

➢According to Landman (n.d.), developing a

code sets in motion a process that raises ethical
consciousness among internal stakeholders.
➢Clarifies what is ethically acceptable or
unacceptable behaviour, thus making
expectations more concrete.
➢The process of developing a code should guide
ethical decision-making.
ACTIVITY: Finding the ETHICAL or UNETHICAL?

1. Taking credit for others work

2. Using or taking company’s supplies for
personal use.
3. Engaging in negative gossip about someone
you work with.
ACTIVITY: Finding the ETHICAL or UNETHICAL?

4. Extending snack/ lunch break,

5. Obeying company’s rules and regulations.
6. Lying inside and outside the workplace.
7. Developing professional relationships with
co-workers.
ACTIVITY: Finding the ETHICAL or UNETHICAL?

8. Using foul language on co-workers in

and out of the workplace.
9. Conducting personal business during
office hours.
10. Showing initiative without being told.
WHAT TO INCLUDE IN YOUR CODE OF ETHICS
AND CODE OF CONDUCT

In preparing your Business ethics and

code of conduct make sure that these are in
accordance with the mission and vision, the
values and principles of Fairness,
Accountability and Transparency stated by
your business organization.
A. COMPLIANCE

In this code we must adhere and comply

with all the legal terms, laws and
regulations given by the government in
which all organizations must fairly comply.
B. COMPETITION AND FAIR DEALING

This is where the principles of fairness is

applied wherein, we must avoid taking
unfair advantage of anyone through
manipulations, concealment, abuse of
privileged information, misrepresentation of
material facts, or any unfair dealing
practices in doing business transactions.
C. CONFIDENTIALITY OF INFORMATION

This is where the principles of accountability is

applied wherein business organizations, the
managers, and the employees should practice to be
accountable in safeguarding the confidentiality of
information (under the AMLA) entrusted by the
company, affiliates, customers, business partners
and others parties which the company have a
relationship with, except when disclosure is
authorized or legally mandated.
D. CONFLICTS OF INTEREST

The principle of accountability is also

applied in this code which is to avoid any
actual conflicts of interest between your
private interest, or either your family
member and the interest of the company.
E. DISCLOSURE

In this code, principles of transparency

are applied in which we publicly disclose all
material information including earning
results (financial reports), corporate
strategy, related party and off-balance sheet
transactions, as may be necessary under
applicable laws, rules and regulations
Other topics

Other topics can also be included

in your code of ethics like risk
management, Relations with
shareholders and investors, etc.
EXAMPLE FOR CODE OF ETHICS FOR
GOVERNMENT EMPLOYEES IN THE PHILIPPINES
EXAMPLE OF CODE OF ETHICS OF A PRIVATE
COMPANY
WHAT WILL HAPPEN IF THE CODE OF ETHICS AND
CODE OF CONDUCT ARE VIOLATED

VIOLATION OF THE CODE OF ethics AND

CODE of conduct may lead to failure in
fieldwork assessment if a placement student
breaches the Code, when evidence for the
malpractice is upheld, his/her fieldwork will be
given a failure or zero mark for performance or
either a sanction of termination depending on
the severity of the malpractice done by the
employee.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

1. Review your mission statement and core

values.
➢The goal of a code of ethics is to help
employees make decisions that are in line with
what the company or organization values. This
should be distilled into your mission
statement and core values, so it's a good place
to start.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

2. Talk to stakeholders.
➢What do management, employees, and clients
think are the most important values of the
company to uphold? Get input from everyone
involved to be sure your code reflects what the
company stands for. You can have them all
look at a code of conduct template to get ideas
for how their own might look like.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

3. Review past ethical issues.

➢Where has your company faltered with
ethics in the past? Where has it shined?
Call attention to problem areas and
reinforce the strengths you already have.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

4. See where other companies have faltered.

➢Have other companies in your industry
had recent ethical failures? Avoid the same
pitfalls by covering these issues in your
code.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

5. Create a draft code for input and

discussion.
➢Give everyone a chance to help decide on
the contents of the code of ethics by
inviting them to discuss and give input on
a draft.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

6. Create a final draft and share it.

➢Once you've got a final draft approved,
share it throughout the organization. Also,
make sure that a copy of it is added to
your employee handbook.
HOW TO WRITE A CODE OF ETHICS AND CODE
OF CONDUCT

6. Create a final draft and share it.

➢Once you've got a final draft approved,
share it throughout the organization. Also,
make sure that a copy of it is added to
your employee handbook.
GROUP ACTIVITY

1. Prepare manila paper, pentel pen, scotch

tape per group.
2. A sample code of ethic will be given to
each group then they will evaluate the
sample.
Using the RUBRICS provided below, evaluate if the
crafted Code of Ethics above meet the desired
criteria
Using the RUBRICS provided below, evaluate if the
crafted Code of Ethics above meet the desired
criteria
GROUP ACTIVITY
3. In the manila paper they will write the score and
their reason and explanation for the score using the
template.
Approach Score Reasons/Explanation

General Approach

Comprehension

TOTAL
GROUP ACTIVITY

4. Write at least 3 commendations and 3

recommendations.

5. You will be given 20 minutes