TAGBILARAN CITY COLLEGE

College of Business and Industry

Tagbilaran City, Bohol

Course Code ABM104 Instructor Emily C. Tabigue

Charwen Namocatcat
Course Title Organization and Email etabigue.tcc@gmail.com
Management cnamocatcat.tcc@gmail.com
Course Credits 3 Contact Number 0963-001-7912
Course Bridging Consultation Hours
Classification
Pre-Requisite(s) Consultation TCC Faculty Office
Venue

Learning Module 9 : Ethical Environment of the Firm

Duration of Delivery : April 22 – 26, 2024
Due Date of Deliverables : April 25, 2024

Module 9 – Ethical Environment of the Firm

Learning Outcomes:
 Identify the different perspective in Ethics.
 Explain the importance of corporate integrity in the
company and organization.
 Identify the corporate social responsibility in the firm.
 Business Ethics and Management

An ethical issue refers to a concern on which an

individual must decide based on several alternatives of what
is morally right or wrong. Any manager should be guided by
a set of business ethics which are moral principles and
standards that guide business people in their transactions.

Generally, business ethics sets the moral standard for

any kind of business function.

Perspective on Ethics
In deciding on ethical issues, five guiding principle may be
used.
1. Universalism – this is the principle which states that
all people should have certain values like honesty,
respect, and cooperation.
2. Egoism – This is the principle which promotes the
greatest good to oneself. It is focused on the
perspective that people ultimately act for self-
advancement, no matter how good their intentions
are.
3. Utilitarianism – this is the principle which focuses on the greatest good for the greatest number of people.
4. Relativism – this is the principle which states that ethical behaviour is based on a person’s own and other
relevant people’s opinion and viewpoint.
5. Virtue ethics – this is the principle which states that morality depends on the maturity of a person with
good moral character.
Corporate Integrity
Corporate integrity refers to that “wholeness” created
by the right relationships among the members of the
corporation.
Corporate Integrity has five dimensions:

Cultural dimension – has the most impact on the

internal relationship in the company. Culture is what unites
employees, and cultural aspect such as rituals and beliefs.

Interpersonal dimension – focuses on the relationship

among people.

Organizational dimension – considers the main

purpose of the business, particularly the economic and financial purposes, managerial purposes as
embedded in their vision and mission statements.

Social dimension – views of the organization as actively engaging with society.

Natural dimension – looks into how the organization relates to nature. Managers should consider how
their business operation and activities impact the environment.
These five dimensions are interrelated and interdependent. Thus, it is a challenge for companies to
integrate all of these with company decisions to achieve corporate integrity.
 Corporate Social Responsibility
One practice which is considered to current
international standards of business operations is corporate
social responsibility. This refers to business operations and
activities that have the welfare of society in mind.
Corporate social responsibility is closely related to the
concepts of social obligation and social responsiveness. This
defines the extent to which a company is able to exercise
social responsibility in its operations and activities.

Communication in the Workplace

Communication is important in the workplace and making sure

that all task and jobs are accomplished to achieve goals. Communication
can take several forms:
Verbal
Written
Expressed or body language

Communication is more effective f one uses a

combination of these forms. The following are the elements
involved in the communication process;

Input – the content of the message

Sender – the one who encodes or sends the message
Code – a symbol system, known to both the sender and
the receiver that constructs meaning.
Channel – means by which the sender relays the
message to the receiver.
Noise – any distortion or interference during the
communication process.
Receiver – the one who decodes or received the
message.
Output – the content of the message as decoded by the receiver.
Response – the reaction of the receiver to the message.
Feedback – the part of the receiver’s response that is transmitted back to the sender.

Barriers to Communication in the Workplace

Communicating and talking are two different things. Talking is just simple delivery without a goal of
ensuring that the message is understood by the receiver. Communicating entails successfully getting the message
across to another person.
Communication is essential in the workplace since the successful accomplishment of task depends in how
clearly instructions are conveyed and understood by all members of the organization.
 There are seven barriers to effective workplace
communication are as follows:

1. Physical barriers – refers to areas that bar people

from entering or gaining access such as closed office doors,
screens, and separate areas for employees of different ranks.
2. Perceptual barriers – refers to how people look at
things. A problem arises when people have different
perspectives about their situation or environment.
3. Emotional barriers – consist of fear, mistrust, and
suspicion. Emotional barriers prevent people from expressing
their feelings.
4. Cultural barriers – Joining a group may have both
positive and negative effects. Cultural differences among
groups may make communication difficult.
5. Language barriers – People from different countries do not speak the same language. Differences in
words, expressions hamper communication.
6. Gender barriers – There are distinctions in the speech patterns of men and women that may cause
misinterpretations. Men are more straightforward and women are more emotional.
7. Interpersonal barriers – some individuals are uncomfortable about interacting with others. They prefer
to be alone, while others are friendlier and enjoy interacting with others.

Decision Making and Common types of

Decision Models
Decision making is a major aspect of managing and the
manager can choose to use one of three decision models.

The types of decision model used can have a

significant effect on determining goals and strategies that will
be implemented by the company.

1. Rational or Logical Decision Model – This process

involves a logical steps-by-step analysis of several
possible contributing factors in making the decision.

This model can be summarized in the diagram below.

Figure 1. The Rational Decision Model

2. Intuitive Decision Model – The managers do not use objective methods in decision making but instead
use their “gut feeling” and instincts. This model is most suited for managers who have several years in
managerial experience.
3. Predisposed Decision Model – The manager, once he or she decides on a solution, will no longer look
for alternative solutions. The chosen solution is considered the most acceptable and effective solution and
the manager then gather the needed resources.