BUSINESS ETHICS & SOCIAL RESPONSIBILITY – GRADE12

Name: ______________________________________ Date: ____________________

Grade: ______________________________________ Section: ___________________

Quarter: 3 Week: 3 SSLM No. 4 MELC(s): 1.3 formulate a “code of ethics” that reflect core
principles derived from analyses. ABM_ESR12-IIIa-d-1.6
Objectives: 1. Give the definition of a Code of Ethics;
2. Enumerate the guidelines and components in developing a code of
ethics; and,
3. Draft a code of ethics of any business or non- profit organization.
Title of Textbook/LM to Study: Business Ethics & Social Responsibility
Unit Pages 48-49 Topic: Code of Ethics

What a great day! Another new learning awaits you this time. In this short
self-learning module (SSLM) you will study about the Code of Ethics. Are you excited? Let’s
begin!

Code of Ethics

A code of ethics, often known as a code of conduct, is a set of rules and procedures
based on the principles of a company. It outlines how employees should act and reflect the
organization's principles at all times, and it also acts as a point of reference while making
decisions.

Guidelines in developing a code of ethics

1. Know the mission and vision of the organization.

2. Determine the values that the company upholds.
3. Describe the many actions and values that an employee must adhere to in order to uphold
the company's ethical standards.
4. Maintain an ethical culture within the organization by ensuring that the code of ethics or
the code of conduct is properly enforced.
5. Outsiders, such as suppliers, distributors, subcontractors, and consumers, must also be
aware of the organization's code of ethics in order to avoid putting personnel in situations
where they are required to follow it.

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Components of a Code of Ethics
1. Values
A company’s values guide the organization’s internal conduct and its relationship with
stakeholders. They emanate from its corporate culture as displayed by its stakeholders.
The values of the company should be expressed with honesty and fairness. The values sum
up the company’s reputation wherein all interactions are treated with respect regardless of
position and circumstances.

2. Principles
To support the values of the organization, 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 principles that
stakeholders live by. Corporate social responsibility is also another principle found in the
code of ethics.

3. Management Support
This means that management is serious in considering the code as the bible of the
employees in terms of ethics. To show support, management allows the display of this code
of ethics in prominent and strategic places in the work area.

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 it.

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.

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Now let’s have a short activity to see how far you’ve got after reading the lesson.

Activity: Give Me!

Instructions: Read carefully the given question and give what is asked. Write your answer on the
space provided after the question.

1. In two (2) sentences, give the definition of a Code of Ethics based on the lesson
discussed.

2. Enumerate the guidelines in developing a code of ethics.

Wow! You’re now in the second activity, this time you will be challenged to a deeper
understanding of the lesson.

Activity: Know me!

Instructions: Identify what particular component of code of ethics is referred to in the given
statement. Write your answer on the space provided.

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 1. The code of ethics is a set of values that employees should live with during their
stay in the company. It includes customer satisfaction, business profitability and continuous
improvement.

2. The code of ethics is considered the bible of the employees in terms of ethics by
management. Management allows the display of this code to be displayed in prominent and
strategic places in the work area. It is not a code of conduct, it is an example of respect for
others rights.

3. The code's legal requirements should be followed to the letter. Any licensing
requirements should be met, including but not limited to financial statement reporting.

4. A company's values guide the organization's internal conduct and its relationship
with stakeholders. The values of the company should be expressed with honesty and
fairness according to the company's corporate culture as displayed by its stakeholders. They
include respect for all people regardless of position and circumstances.

5. Any member of the organization should uphold and preserve the code of ethics.
Each employee should be guided by the code and must report anyone who violates it
according to the Code of Conduct for the Department of Labor.

Good Job!. You’re now on the last part of this SSLM.

Activity : Conquer all!
Instructions: Read carefully the situation, then give what is asked. Be guided by the rubrics.

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Rubrics for Rating (Activity 3)
Unsatisfactory (5pts) Minimal (7 pts.) Proficient (10 pts.)
Accuracy and
Understanding The student shows no The student shows The student shows
Content understanding of the marginal or poor understanding of the
The student is able to presented issue(s) by understanding of presented issue(s) by
demonstrate content (1) not addressing or the presented correctly (1)
(factual) knowledge incorrectly addressing issue(s) by (1) addressing the most
and understanding of the relevant content barely touching on critical content
material addressed in the relevant content.(2)making basic
question. connections.
Reasoning The student does not The student The student can:
The student is able to reason with the makes inappropriate (1) synthesize
reason with the given assigned materials or connections to other material, (2) make
task situation. solve the given topics. appropriate
problem. connections to the
topics
Communication Unable to write well Ideas are Ideas are sequenced
The student enough for the scorer fragmented, and logical so that the
communicates with to understand the wandering and content is easy to
the reader. answer. repetitive, so that it understand.
is hard to
understand text.

Baquillas, Jonalyn C. (2017). DIWA Senior High School Series: Business Ethics &
Social Responsibility, DIWA Learning System, Inc.
Jerusalem, Violeta L. et al. (2017). Business Ethics & Social Responsibility (Core
Principles, & Practices of Ethical Standards), FastBooks Educational Supply,
Inc.
Zarate, Cynthia A. (2018). Business Ethics & Social Responsibility for Senior High
Shool, C & E Publishing Inc.
.

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