GOOD GOVERNANCE REVIEWER - Companies commonly include a corporate
citizenship statement on corporate governance
CORPORATE GOVERNANCE
- refers to a system whereby shareholders, creditors and
other stakeholders of a corporation ensure that
management enhances the value of the corporation as it
competes in an increasingly global market place (Based
from the Code of Corporate Governance, Memorandum
Circular No. 2, Series of 2002).
- involves balancing the interests of executive staff,
shareholders, and stakeholders in a corporation.
- is a system of process, policies and rules and control an
organization's conduct for the good management of
companies.
- is a system required to the diverse people, specifically in
the company.
- consists of the relationships between the numerous
stakeholders.
- also a process that aims to apportion corporate resources
in a way that enhances value for all stakeholders.
- also holds those at the controls to account by evaluating
their decisions.
- main objective of corporate governance is to put an end to
the abusive and somehow unlawful and improper
activities.
- Weak governance frameworks have led to the collapse of
many corporations.
STRATEGIC AIMS OF CORPORATE GOVERNANCE
1. Ensuring a higher degree of transparency.
2. Encourages accountability.
3. Ensures equitable treatment of all the shareholders of the
company.
4. Allows firms to evaluate their behavior
5. Protect the long-term interests of the shareholders.
ELEMENTS OF A CORPORATE GOVERNANCE
1. DIRECTION
- Providing overall direction for the business, its
leaders and employees is a major part of
corporate governance.
2. OVERSIGHT
- The corporate governance role also provides
some level of leadership oversight in
companies.
- In publicly owned companies, for instance,
company boards monitor and evaluate
decisions and actions.
3. STAKEHOLDER RELATIONS
- Corporate governance encompasses a
business’s accountability to each of its
stakeholder groups.
- Traditionally, this role has largely centered on
investor relations and communication of
company decisions
4. CORPORATE CITIZENSHIP
or investor relationships web pages.
5. INDEPENDENCE OF DIRECTORS
- Having a majority of nonexecutive independent
directors will help avoid prejudice and conflicts
of interest between the board and the
management.
6. EFFECTIVE RISK MANAGEMENT
- Even if a company implements smart policy,
competitors might still steal its customers,
unexpected disasters might cripple its
operations and economy fluctuations might
erode the buying capabilities of its target
market.
7. SOLID STRUCTURE AND ORGANIZATION
- within the company is essential to fluidly and
implementing and dispersing corporate
governance objectives.
- One of the fundamental objectives of corporate
governance is for companies to develop more
transparent business practices, meaning a
rigidly structure framework through which to
trace all such activity efficiently.
8. TRANSPARENCY
- Managers sometimes keep their own counsel,
limiting the information that filters down to
employees. But corporate transparency helps
unify an organization.
- When employees understand management’s
strategies and are allowed to monitor the
company’s financial performance, they
understand their roles within the company.
- Transparency is also important to the public,
who tend not to trust secretive corporations
9. SELF EVALUATION
- Mistakes will be made, no matter how well you
manage your company. The key is to perform
regular self-evaluations to identify and mitigate
brewing problems.
- Hiring outside consultants to analyze the
operations also can help identify ways to
improve a company’s efficiency and
performance.
WHO IS RESPONSIBLE FOR CORPORATE GOVERNANCE
- BOARD OF DIRECTORS
- The board’s role is to set the company’s
strategic direction, provide the leadership to
put those strategies into effect and supervise
the management of the company.
- Corporate governance is about the way the
board behaves and how it sets the values of
the business. This is different from the daily
operational management of the company by
the executives.
 - SHAREHOLDERS 8. DIVERSITY
- must actively participate in corporate - Boards need a diverse mix of skills and
governance for it to have any bite. perspectives for organizational success.
- Their role is to appoint the right directors and However, few adhere to minimum standards
approve major decisions such as mergers and like age, gender, and race, as their roles require
buyout. strong decision-making.
- Shareholders have the collective power to take
TWO (2) DISTINCT APPROACHES
legal action against a company that does not
exercise good governance. 1. RULES-BASED APPROACH
- all provisions are legal rules, supported by law
GOOD GOVERNANCE – directly impacts company profits and
which attracts punishment from the law, if there
reputation, while poor policies can lead to lawsuits, fines,
is failure to comply.
reputational damage, and loss of capital investment. Companies
must avoid pitfalls such as conflict of interest and oversight issues CHARACTERISTICS
to maintain effective corporate governance.
a. approved set of requirements
POTENTIAL CHALLENGES IN CORPORATE GOVERNANCE b. fast approach of ensuring conformity
c. implements a checklist method
1. CONFLICT OF INTEREST
d. clear difference between conformity and non-conformity
- Occurs when officers or controlling members
e. easy to observe that entity is conforming
have financial interests that conflict with
f. lessening of flexibility on the part of management and
corporate objectives, leading to mistrust and
auditors
litigation.
g. challenging to set rules entirely for all situations
2. OVERSIGHT ISSUES
h. likely to misunderstand rules
- Effective governance requires board oversight
i. similar rules apply to all, whatsoever their sizes are
of company operations and procedures to
2. PRINCIPLES-BASES APPROACH
ensure compliance with laws and protect
- Is grounded on the outlook that a distinct set of
shareholders' interests. Lack of oversight can
rules is unfitting for every company.
result in legal violations, fines, and reputational
- Circumstances and situations vary from
harm.
companies to companies. The circumstances
3. ACCOUNTABILITY ISSUES
of a company can change every now and then.
- All levels of the corporation should be
accountable to another as a system of checks THEORIES
and balances, with top level executives
accountable to shareholders and the public. 1. THE AGENCY THEORY
4. TRANSPARENCY 2. THE STEWARDSHIP THEORY
- Corporations must accurately report profits 3. THE STAKEHOLDER THEORY
and losses and make this information available
THE AGENCY THEORY
to investors. Lack of transparency can damage
relationships with stockholders and result in - Agency theory is an economic theory that views the firm as
fines. a set of contracts among self-interested individuals. An
5. ETHICS VIOLATIONS agency relationship is created when a person (the
- Executive board members have an ethical duty principal) authorizes another person (the agent) to act on
to make decisions in the best interests of his or her behalf.
stockholders and to protect the social welfare - Due to differing risk viewpoints and business goals, issues
of the greater community. may arise around the relationship between the agent and
6. GOVERNANCE STANDARDS the principal. In order to readdress the behavior of the
- Boards should establish unbiased rules and agent to readjust his interests with that of the principal's,
policies, ensuring clear enforcement incentives could be offered to the former. Simply, incentives
mechanisms to protect the company against would encourage agents to act in agreement with the
law violations and reputational damage. principal's interests.
7. SHORT-TERMISM
- In order to implement effectively good TWO SITUATIONS WHICH MAKE EFFORTS ON RESOLVING AGENCY

corporate governance, it must need boards CONFLICTS ALL THE MORE VITAL;

that can manage the company on continuing

1. DIFFERENT RISK DESIRE
years to produce sustainable value for the
➢ Shareholders and managers differ in the level of
company. This is problematic since there is a
risk they are eager to assume. The shareholders
definite period.
are intensely interested in increasing the present
and future value of their investments, whereas the
 top executives are highly concerned in the
sustainable growth of the company. Therefore,
these differences in their interests and
approaches forma sense of suspicion and
disagreement.
2. SUPER SELF-CENTERED EXECUTIVES
➢ This situation is when the managers are just
interested in providing short-term performance to
the owners to obtain their compensation hikes.
➢ More common yet very risky condition.
THE STEWARDSHIP THEORY
- Defines situations in which managers are not motivated by
individual goal, but rather are stewards whose motives are
aligned with the objectives of their principals (Davis,
Donalson & Shooman, 1997)
BASIC ASSUMPTION
• The interests of stewards and principals are aligned, and
there is no inherent conflict between them.
• Stewards are motivated not only by extrinsic factors but,
also by intrinsic factors.
BEHAVIOR OF A GOOD STEWARDSHIP BASED ON STEWARDSHIP
THEORY:
➢ PRO-ORGANIZATIONAL BEHAVIOR
➢ LONG TERM ORGANIZATION
➢ COLLECTIVE MINDSET
THE STAKEHOLDER THEORY
- states that the purpose of a business is to create value for
wider group stakeholders other than just shareholders. This
theory considers the corporate environment as a network
of interconnected groups, all of which are required to be
pleased to sustain the healthy and success of the
company in the long-term.
- was coined originally by Edward Freeman as he recognized
such as an important element of Corporate Social
Responsibility (CSR).
STAKEHOLDER
- refers to any individual or group of individuals who can
affect or be affected by any actions done by a business. It
consists of those who work in its stores, those who work and
live close to its factories, those who do business with it, and
even of competitors, as the company may form the setting
in its industry.
Freeman (6) six principles:
1. THE PRINCIPLE OF ENTRY AND EXIT
- there must be clear-cut and transparent rules and policies
such as hiring employees and terminating their
employment.
2. THE PRINCIPLE OF GOVERNANCE
- This principle considers the manner of modifying the rules
about the relationship between the stakeholders and the
company.
3. THE PRINCIPLE OF EXTERNALITIES
- This is about how a group that does not gain from the
actions of the company has to undergo some problems
because of the said actions.
- It suggests that anybody who has to shoulder the costs of
other stakeholders has the right to turn into a stakeholder
too.
- Somebody who is affected by a business develops into a
stakeholder.
4. THE PRINCIPLE OF CONTRACT COSTS
- Each group to a contract should either endure identical
amounts when it comes to cost or the cost they endure
should be proportionate to the benefits they have earned
in the company. Not all of these costs are purely financial,
so they may be demanding to measure
5. AGENCY PRINCIPLE
- This principle reflects on the manager of a company as its
agent and hence has responsibilities to the stakeholders
and also the shareholders
6. THE PRINCIPLE OF LIMITED IMMORTALITY
- This principle ensures the success of the company and its
owners similarly for a longer time period. Although it is
impossible for a company to be immortal but it must and
can remain in existence for a length of time.
ORGANIZATIONAL STAKEHOLDERS
- Is an individual, group, or organization who has an interest
in the decisions made by a company, organization, or
project that defines business goals and develop plans that
help them achieve those goals, and periodically review
business operations and strategies to find more efficient
methods.
ECONOMIC STAKEHOLDERS
- a person or organization with a stake in a business as they
can benefit or lose from the success or failure of the
business, that have some stake in the outcome of the
business, that depends on the economic system.
SOCIAL STAKEHOLDERS
- This are the ones that serves as the backbone of success
for an organization.
- Two (2) categories;
1. Primary - HR Management and managers,
business partners and local communities.
2. Secondary - government and civil society, union,
and media.
(5) GENERAL PRINCIPLES AROUND WHICH BUSINESSES ARE EXPECTED
TO OPERATE;
1. RIGHTS AND EQUITABLE TREATMENT OF SHAREHOLDERS
➢ Shareholders have certain rights which a
company must respect. They should be permitted
to use these rights. A company can help
shareholders apply their rights by openly and
effectively communicating information and by
inspiring shareholders to actively partake in
general meetings.
 2. Interests of other stakeholders
➢ Companies must know that they have legal,
contractual, social, and market-driven
responsibilities to non-shareholder stakeholders,
such as the employees, investors, creditors,
suppliers, local communities, customers, and
policy makers.
3. ROLE AND RESPONSIBILITIES OF THE BOARD
➢ The board requires adequate pertinent skills and
understanding to appraise and challenge
management performance. It also needs
acceptable size and suitable levels of objectivity
and commitment.
4. INTEGRITY AND ETHICAL BEHAVIOR
➢ In selecting corporate officers and board
members one of the fundamental requirements is
integrity.
➢ Companies have to fashion a code of conduct for
their directors and executives that encourages
ethical and accountable decision making.
5. DISCLOSURE AND TRANSPARENCY
➢ Companies must explain and make transparent
to the public the roles and responsibilities of
board and top management in order to offer
stakeholders with a level of accountability. They
should also write and implement distinct
procedures to freely authenticate and protect the
truthfulness of the company's financial reports.
There should be timely and balance release of
substantial matters about the company so that
investors are sure to receive clear and factual
information.
THE AGENCY THEORY IN CORPORATE GOVERNANCE
- The true owners of the corporation or the shareholders
principals select the members of the board who would act
and make decisions on their behalf. The objective is to as
represent the outlooks of the shareholders or owners and
conduct actions in their ulterest. Although, there is a clear
basis of the board of directors election, there are still
numerous situations when complex issues happen.
Sometimes, intentional or unintentional executives make
and implement decisions that do not replicate the
shareholders' best interest. In the dynamic business
environment, agency theory of corporate governance has
been an attractive concem but is understood and valued
from diverse points of view.
THE STEWARDSHIP THEORY IN CORPORATE GOVERNANCE
- Stewardship governance aims to satisfy shareholders by
forming a strong channel for business requirements to
shareholders and vice versa. It requires a reliable CEO who
prioritizes company interests over personal interests,
ensuring accountability in difficult business situations.
1. Company Background
2. Employer Attitude
3. Customers Loyalty
THE STAKEHOLDER THEORY OF CORPORATE GOVERNANCE
• The stakeholder theory of corporate governance focuses
on the effect of corporation on all identifiable stakeholders
of the corporation.
• External stakeholders are the shareholders, debt holders,
suppliers, customers, and the community at large.
• Corporate stakeholder theory posits that the corporate
activity should take into consideration the interests of each
stakeholder in its governance process.
❖
CONCEPT OF CSR
- The concept of Corporate Social Responsibility (CSR)
entails businesses taking responsibility for their impact on
society and the environment beyond their economic goals.
It involves voluntary initiatives by companies to integrate
ethical principles, social concerns, and environmental
sustainability into their operations and interactions with
stakeholders.
KEY COMPONENTS OF CSR
1. CORPORATE GOVERNANCE
- Accountability, transparency and conformance with the
laws are the major issues under corporate governance.
With good corporate governance policy, a company is able
to accomplish its objectives, protect the rights of its
shareholders, abide by the legal requirements and offer
transparency for all stakeholders.
2. BUSINESS ETHICS
- Is the inclusion of the core values such as honesty, trust,
respect, and fairness into the policies, practices, and
decision making of a company. It also consists of
obedience to legal standards and submission to in-house
rules and regulations.
3. WORKPLACE AND LABOR RELATIONS
- Human resources are the assets of a company and thus
play the most important and critical roles. Workplace and
labor relations are good CSR practices. These CSR
practices include but not limited to health and safety,
employee relations and work-life balance. Having these
practices around the workplace assures easier recruitment
and higher retention thus resulting to cost reduction
caused by non-stop recruitment and retraining.
4. POSITIVE ACTION
- Some of the good practices which reflect CSR practices of
the company are inclusion of people with disability and
people from the local community in the diversity of
workforce.
5. ENVIRONMENT
- Part of these mandatory requirements towards the
environment is looking for sustainable replacement for the
depleting natural resources, lessening the adverse impacts
on environment, reducing environment-risky
pollutants/emissions as well as producing environment-
friendly good
 6. SUPPLY CHAIN DIFFERENT VIEWS OF CSR
- The business process of any company is not limited to the
- Over the past two decades, Corporate Social Responsibility
internal operations but includes the whole supply chain
(CSR) has been a widely debated issue with two extreme
involved in producing goods and providing services.
perspectives. The socioeconomic view emphasizes a
- Any chain involved inlessness on social, environmental,
company's responsibility towards society, while the
human rights and other responsibility aspects may
classical view focuses on maximizing profits for
seriously and greatly affect business eventually.
shareholders. These approaches guide managers in
7. CUSTOMERS
setting priorities and actions for their businesses.
- The cost and quality of products and services are possibly
❖ CLASSICAL VIEW
the greatest but definitely not the only aspects of concern
- It was Milton Friedman, a Nobel Prize winning economist
to the customers
who endorsed this classical view. Friedman wrote this
- The satisfaction and loyalty of customers would be
insight in a New York Times article entitled “The Social
contingent on the way the company has produced the
Responsibility of Business is to Increase its Profits”.
goods and services with consideration on the social,
- The classical view says that the primary role of business is
environmental, supply-chain and other such concerns.
to provide goods and services to maximize profits for the
8. COMMUNITY
benefits and satisfaction of the shareholders’ interest in an
- The community where the company does its business is
open and free competition with obedience to laws. In
another important stakeholder. The connection of a
addition, believers of this view consider socially responsible
company with the community depends on its direct
actions as costs that may dilute their economic
communication with it.
productivity.
DRIVERS OF CSR 1. PROFIT MAXIMIXATION - Businesses are focus
only on activities that would produce profits for
1. The Shrinking Role of Government
shareholders. As a consequence, shareholders are
2. Demands for Greater Disclosure
expected to earn a good return on capital
3. Increased Customer Interest
invested.
4. Growing Investor Pressure
2. GOVERNMENT CONCERN - Businesses which have
5. Competitive Labor Markets
the classical view believe that social welfare
6. Supplier Relations
should be left for the government to take care of. It
HISTORICAL PHASES OF CSR is the role of government to provide assistance to
its constituents in the form of health, education
1. Profit Maximizing Management and financial aids.
2. Trusteeship Management 3. AGGRESSIVE COMPETITIVE STRATEGIES - In order
3. Quality Of Life Management to ensure survival of the business, the primary
objective of business organisations is to maximize
UNORGANIZED CSR (190s to 1970s)
profits using aggressive competitive strategies.
- In 1971, the Philippine business for social progress (PBSP) Hence, business should avoid commitment to CSR
was organized by 50 Philippine corporation as the largest initiatives because there is only a small nature of
corporate social development foundation in the Philippines. direct economic benefit derived from it.
It was the first in Asia to lead the promotion and practice of 4. UTILIZATION OF RESOURCES - If resources would
corporate social responsibility (CSR). be committed to CSR activities, it denotes
additional costs and competitive disadvantage
ORGANIZED PHILANTHROPY (1980S TO 1990S) on the part of businesses. Therefore, the financial
performance of the company will also be
- The Philippine government implemented new and many
negatively affected.
policies about deregulation, decentralization, and
5. UNACHEVED BUSINESS ETHICS - Commitment to
liberalization during this period of organized philanthropy.
philanthropic responsibility would mean averting
In effect, with those policies foreign investment increased
shareholders’ wealth into non-economic activities.
and the existing private section was influenced.
The main objective of maximizing profits then
ORGANIZED MOVEMENT would not be attained.
❖ SOCIOECONOMIC VIEWS
- Since 2000, globalization has influenced Corporate Social
- The socioeconomic group says that a business is a portion
Responsibility (CSR) worldwide. The League of Corporate
of large society and thus that have a social responsibility
Foundations (LCF) in the Philippines, founded in 1991,
that goes beyond and maximizing profit. In addition, in this
promotes CSR among its network of over 80 corporate
view maximizing profit is the second priority in the first
foundations and corporations. LCF leads in corporate
priority is defending and refining society's welfare.
philanthropy and CSR, collaborating on educational
- Being socially responsible is not only the correct thing to
projects and initiatives across Arts and Culture, Education,
do, it also helps the corporation that are social responsible
Enterprise Development, Environment, and Health.
 to form a positive public image, increase profit in the long
run and have more protective profit in the long-run.
1. PUBLIC IMAGE - Business can form a positive
public image by pursuing the goals such as giving
importance to social goals.
2. BETTER ENVIROMENT - Business sectors can offer
comfort of a better quality of life which may also
attract and retain skilled employees.
3. PUBLIC EXPECTATIONS - Business are not only
after attaining economic goals but also social
ones.
4. LONG-RUN PROFITS - Businesses that are socially
responsible are most likely to attain long-run
profits.
5. BALANCED RESPONSIBILITY AND POWERS -
Businesses are said to be the most powerful
influencial in the society.
6. STOCKHOLDER INTEREST - When a business is
socially responsible, it will also result in increase of
its price stock.
7. POSSESSION OF RESOURCES - Almost all
companies have ample, if not more financial
resources, technical experts and managerial
talents.
❖ intentions
PYRAMID OF CORPORATE SOCIAL RESPONSIBILITIES
ECONOMIC RESPONSIBILITY
➢ First and most apparent type of responsibility.
➢ The focus of this level is on the different practices that
would lead to the long term growth of the business.
➢ Business serves as an integral actor in economic
development and nation building.
➢ Company uses recycled products in its manufacturing
processes.
LEGAL RESPONSIBILITY
➢ aims to obey all laws set forth by society all the time. A
business has an obligation to follow all written and codified
laws that concern its existence.
➢ Government acts as regulators of businesses.
➢ In the early 1930s, most businesses are completely free to
act the way they pleased without thinking of any
restrictions.
➢ Disobeying business laws would mean paying for fines as
penalty.
ETHICAL RESPONSIBILITY
➢ This level is directly connected to the legal responsibility, to
do what is right even when business is not obligated to do
so by law.
➢ This responsibility is too tough and challenging. Being
profitable at the same time ethical is conflicting.
➢ PHILIPPINE ASSOCIATION OF NATIONAL ADVERTISERS
(PANA) - promotes to have an effective and progressive
country by promoting values in advertising through self-
regulation.
ENVIRONMENTAL RESPONSIBILITY
➢ Although not included in Carroll's Pyramid of CSR, this is a
must for businesses.
➢ Sustaining the environment.
➢ Senate Bill (SB) 1866 otherwise known as Philippine Ban on
Plastic Straws and Stirrer.
PHILANTROPHIC RESPONSIBILITY
➢ 4th level of Carroll's Pyramid of CSR
➢ Discretionary responsibility
➢ Best described by the resources donated by companies
toward social, educational, recreational, and/or cultural
SOCIAL RESPONSIBILITY TO STAKEHOLDERS
TOWARDS CONSUMER:
1. QUALITY
➢ it is a must for a company in the manufacturing
industry to create quality goods and provide
quality service for service-oriented kind of
businesses.
2. FAIR PRICES
➢ It is not reasonable to charge high prices on
customers. It is always fair prices that make a new
customer turn into loyal customers.
3. TRUTHFUL ADVERTISING
➢ Advertisements should offer accurate, relevant
and updated facts, advantages and even side-
effects of the product. Company should not
misinform and mislead its Customers by giving
out correct and real information.
4. AFTER SALES SERVICE
➢ It is the after sales service provide when given
efficiently and effectively that creates good
relationship' the customers and the company.
5. RESEARCH AND DEVELOPMENT
➢ It is actually a requirement of consumers for
businesses to perform research and development
(R&D). Quality of offering both goods and services
may be improved and certainly cost of production
could be reduced.
6. CONSUMERS SAFETY
➢ It is always expected by consumers that any
product they bought shall not harm their health
and most importantly their lives.
 7. REGULAR AND SUPPLY
➢ It is a business sin to create false scarcity of
goods. Good and services should be accessible to
consumers whenever they need and want them.
8. ATTEND COMPLAINS
➢ Businesses should always attend to any queries
and complaints of customers the soonest
possible.
9. AVOID MONOPOLISTIC COMPETITION
➢ It is always healthy for any industry to have a
competitive business environment.
10. TRAINING
➢ This training is given either for free for a fee. It is
freely given if the customers would not be able to
use the product without the training or usually it is
already part of the package.
TOWARDS EMPLOYEES
1. MEANINGFUL WORK AND JOB SATISFACTION
➢ Employees must be ethically treated by giving
them challenging but meaningful tasks, good
working conditions and job security.
2. FAIR RETURN
➢ Taxes are mandatory contributions levied on
individuals or corporations by a government entity
whether local, regional, or national.
➢ Business owe to the government their taxes and
fees as they carry out their operations.
➢ The government imposed various taxes and fees
such as excise duty, sales tax and corporate tax.
2. FOLLOW ENVIRONMENTAL REGULATIONS
➢ Those business in the industrial and
manufacturing sector have been enforced strict
rules concerning the quantity and variety of
pollutants that they are permissible to produce.
➢ Following the environmental regulation aims to
minimize the possible harm to the environment
and public health.
3. ABIDE-BY LABOR LAW
➢ Employers in the Philippines are required to follow
the laws on labor practices.
4. AVOID RESTRICTIVE TRADE PRACTICES
➢ Companies is basically an element of any
business.
➢ Businesses are not permitted to engage in
restrictive trade practices even under

➢ Well-designed compensation package must competition.

include sufficient wages and salaries in addition 5. FINANCIAL DISCLOSURE
to other incentives. Payment employees must be ➢ The financial statement of companies needs to be
given on-time so that they can meet their closed to the government to the taxation
individual financial obligations. purposes.
3. BEST PHYSICAL AND MENTAL ATMOSPHERE 6. AVOID CORRUPTION
➢ Employees need good facilities to work ➢ In almost all countries bringing public official by
productively and comfortably to deliver their businesses is prohibited. Essentially, bribery is
performance best. offering to do something for someone for the
4. PARTICIPATION IN THE MANAGEMENT expressed purpose of receiving something in
➢ Top management should encourage work teams, return.
suggestions system, profit sharing and other ways
TOWARDS LOCAL COMMUNITY
of participation.
5. TRAINING, PROMOTION AND WELFARE SCHEMES SUGGESTED APPROACHES TO ESTABLISH A GOOD RELATIONSHIP
➢ Proper training is a requirement for employees to WITH COMMUNITIES THAT HELP BUSINESS IN RETURN:
be efficient and proficient as these are the
1. IN THE FIELD OF INDUSTRY
demands of contemporary business workplace.
2. IN THE FIELD OF AGRICULTURE
6. RECOGNITION OF UNIONS
3. HOUSING FACILITIES
➢ A union is an organized group of workers who
4. TRANSPORTATION-
unite to make decisions about conditions
5. HEALTH AND EDUCATION
affecting their work.
6. INDUSTRIAL AID TO EDUCATION IN URBAN AREAS
7. PROPER PERSONNEL POLICIES
➢ A good practice of CSR is have concrete and TOWARDS ENVIRONMENT
proper personnel policies in transfers, promotion,
recruitment, training and other related areas. PRACTICAL WAYS FOR BUSINESSES TO BE ENVIRONMENTALLY
8. HEALTH AND SAFETY MEASURES RESPONSIBLE:
➢ All companies must always have enough actions
➢ REDUCE PAPER WASTE
for employee protection in terms of health.
➢ USE LED LIGHT BULBS
9. GRIEVANCE PROCEDURE
➢ ALLOW TELECOMMUTING
➢ As a socially responsible business, a company
➢ IMPROVE AIR QUALITY AND INDOOR PLANTS
should have a proper grievance process to
➢ POWER OFF COMPUTERS
answer for employee complaints.
➢ SET-UP RECYCLING BINS
TOWARDS GOVERNMENT ➢ REDUCE TRAVEL
➢ PROVIDE FILTERED WATER
1. PAY TAXES
 ❖ 3.
ETHICAL ISSUES AND PROBLEMS IN THE BUSINESS WORLD
• Every employer should know how ethics could be used to
run a business in order to successfully relate with
employees, the customers and the general public.
• Business people are honest, but when love for money gets
into the picture, that triggers lot of ethical problems in
business.
EMPLOYEE FAVORITISM
➢ preferring a person not because he is doing the best job
but rather because of some irrelevant feature membership
in a preferred group, personal likes and dislikes, and other
unessential factor.
THREE (3) TYPES OF FAVORITISM
1. NEPOTISM
▪ practice of hiring family members irrespective of
their qualifications.
2. CRONYISM
▪ act of hiring friends without regard to
qualifications.
▪ Employees, who got their entitlement for a job
using cronyism, feel that they deserve raises and
promotions.
3. PATRONAGE
▪ the practice of hiring the friends and family
members of those executives who became on
board because of either nepotism or cronyism.
GIFT-GIVING AND BRIBERY
➢ a bribe is also a valuable thing but given in the hope of
influence or benefit.
➢ Gifts and bribes can be tangible items, or they can be
tickets to a sporting event, travel, rounds of golf, or
restaurant meals.
THREE (3) DIMENSIONAL FRAMEWORK
1. CONTENT
▪ The item given expresses the nature of gifting. The
receiver of the gift must be careful to know the
appropriateness of the item given.
▪ Benchmark could be the price of a gift.
▪ The price of the gift determines the nature of the
gift.
2. CONTEXT
▪ Sometimes the size, type, and value of the gift are
irrelevant.
▪ The intent to prompt an action is the basis in
determining if the item given is a bribe.
▪ It is crucial to know first the motives behind the gift
giving.
▪ If the recipient crosses the line of ethical behavior,
then it should be stopped.
CULTURE
▪ also important in setting the boundaries and
protocols so that gifts are truly received as gifts.
▪ Understanding the cultural of the preferences of
the receiver is clearly significant issue in business
particularly in international scene.
▪ Gifting etiquette differs from country to country.
THREE (3) KINDS OF BRIBERY
1. DIRECT BRIBERY
▪ committed by a public officer who accepts an
Diter or promise or receives a gift or present, by
himself or through another
▪ with a view to committing a crime, execution of
an act that does not constitute a crime but is
unjust, or to refrain from doing something that it
is his official duty to do.
2. INDIRECT BRIBERY
▪ committed by a public officer who accepts a gift
offered to him by reason of his office.
3. QUALIFIED BRIBERY
▪ committed by a public officer entrusted with law
enforcement.
▪ who refrains from arresting or prosecuting an
offender who has committed a crime punishable
by reclusion perpetua (imprisonment of 20 years
to 40 years) and/ or death, in consideration of any
offer, promise, gift or present.
REPUBLIC ACT NO. 3019 (THE ANTI-GRAFT AND CORRUPT PRACTICES
ACT)
Certain acts of public officers that constitute graft or corrupt
practices:
1. Persuading, influencing, and inducing public officers to
perform acts that violate rules or are related to official
duties.
2. Requesting or receiving any gift, present, share, percentage
or benefit, for himself or for any person, in connection with
any contract or transaction between the government and
any other party.
3. Requesting or receiving any gift, present, or other pecuniary
or material benefit, from any person for whom the public
officer has secured or obtained, or will secure or obtain, any
government permit or license.
4. Accepting or having any member of his family accept
employment in a private enterprise that has pending
official business with him, during the pendency thereof or
within one year after its termination.
5. Causing any undue injury to any party, including the
government or giving any private party any unwarranted
benefits, advantage, or preference in the discharge of his
functions through manifest partiality, evident bad faith or
gross inexcusable negligence.
6. Neglecting or refusing, after due demand or request,
without sufficient justification, to act within a reasonable
time on any matter pending before him for the purpose of
obtaining, directly or indirectly, from any person interested
 in the matter some pecuniary or material benefit or
advantage, or for the purpose of favoring his own interest
or giving undue advantage in favor of or discriminating
against any other interested party.
7. Entering, on behalf of the Government, into any contract or
transaction manifestly and grossly disadvantageous to the
same, whether or not the public officer profited or will profit
thereby.
8. Having financial or pecuniary interest in any business,
contract, or transaction in connection with which he
intervenes or takes part in his official capacity, or in which
he is prohibited from having any interest.
9. Becoming interested, for personal gain, or having a
material interest or any transaction or act requiring the
approval of a board, panel or group which he is a member,
even if he votes against the same or does not participate in
the action of the board, committee, panel or group.
10. Knowingly approving or granting any license, permit,
privilege or benefit in favor of any person not qualified.
11. Divulging to unauthorized persons valuable information of
a confidential character acquired by his office or by him on
account of his official position, or releasing such
information in advance of its authorized release date.
REPUBLIC ACT 6713 THE CODE OF CONDUCT AND ETHICAL
STANDARDS FOR PUBLIC OFFICIALS AND EMPLOYEES
➢ which prohibits public officials and employees from
soliciting or accepting, directly, or indirectly, any gift,
gratuity, favor, entertainment, loan or anything of monetary
value from any person.
PRESIDENTIAL DECREE NO. 46 GIVING GIFTS ON ANY OCCCASION
➢ which punishes the act of giving, or offering to give, to a
public officials or employee, a gift, present or other
valuable thing on any occasion, including Christmas.
REPUBLIC ACT 7080 PLUNDER
➢ which penalizes a public officer who acquires ill-gotten
wealth in the total of at least PHP 50 million through overt or
criminal acts.
DISCRIMINATION
➢ is treating, or proposing to treat, someone negatively.
➢ DIRECT AND INDIRECT
TYPES OF DISCRIMINATION
▪ AGE
▪ RACE
▪ DISABILITY
▪ RELIGION
▪ PREGNANCY
▪ GENDER
R.A 7877 ‘ANTI-SEXUAL HARASSMENT ACT’
SEXUAL HARASSMENT
➢ is unwelcome conduct of a sexual nature. It is a behavior
that makes people feel offended, humiliated or intimidated.
➢ It can be the form of physical, verbal or written.
WORK RELATED SEXUAL HARASSMENT
➢ is committed when a person demands, requests, or
requires sexual favors from another person in return for
employment.
TWO (2) TYPES OF SEXUAL HARASSMENT THAT TAKE PLACE IN THE
WORKPLACE WHICH ARE:
1. QUID PRO QUO - Quid pro quo means "this for that" in Latin.
➢ This refers to the exchange of something of value
between parties engaging in a contract.
➢ One person or group agrees to give another
person or group something in exchange for what
they need or desire.
➢ Quid pro quo harassment occurs in the workplace
when a manager or other authority figure offers or
merely hints that he or she will give the employee
something (a raise or a promotion) in return for
that employees satisfaction of sexual demand.
2. HOSTILE WORK ENVIRONMENT
➢ Existing " when one's behavior within a workplace
creates an environment that's is difficult or
uncomfortable for another person to work in due
to discrimination.
HEALTH AND SAFETY
➢ A healthy workplace is paramount to the success
and productivity of a business.
➢ the working environment should remain healthy to
all people. Safety is also a key to a successful
business.
➢ Occupational accidents and diseases cause
human suffering and loss. Their economic cost is
high.
➢ Unsafe working conditions are a threat to
everyone. Can often be classified as ergonomic
hazards, chemical hazards, or biological hazards,
although not all dangers in the workplace fall
under those categories.
THREE (3) TYPES OF HAZARDS
1. ERGONOMIC HAZARD
▪ are related to way a person job strains his body.
▪ the type of work being done such as work that
requires an employee to use repetitive or
awkward motions.
2. CHEMICAL HAZARD
▪ an employee is exposed to any chemical
preparation in the workplace, whether it is a solid,
liquid, or gas.
▪ Chemicals can consist of cleaning products and
solvent, vapors and fumes ,and flammable
material
3. BILOGICAL HAZARD
▪ are those that come from working with people,
plants, or animals. Blood and bodily fluids,
 bacteria ,and viruses, and even insect bites can
be considered biological hazards.
THE TOP 10 MOST FREQUENTLY CITED VIOLATIONS ACCORDING TO
OSHA (Occupational Safety and Health Administration)
1. INADEQUATE FALL PROTECTION
▪ This consist of unprotected sides and edges and
leading edges.
2. INADEQUATE HAZARD COMMUNICATION
▪ This is about classifying harmful chemicals.
3. IMPROPER SCAFFOLDING SAFETY
▪ There must be a required resistance and
maximum weight numbers.
4. INADEQUATE RESPIRATORY PROTECTION
▪ This includes emergency procedures and
respiratory/filter equipment standards.
5. FAILURE TO CONTROL HAZARDOUS ENERGY
▪ This concerns controlling hazardous energy such
as oil and gas.
6. POWERED INDUSTRIAL TRUCKS
▪ This is about safety requirements for fire trucks.
7. IMPROPER LADDER SAFETY
▪ There are standards for how much weight a
ladder can sustain.
8. ELECTRICAL WIRING METHODS & GENERAL REQUIREMENTS
▪ This concerns about procedures for how to circuit
to reduce electromagnetic interference.
9. INADEQUATE EYE, EAR, AND FACE PROTECTION
▪ This concerns on employees when exposed to eye
or face hazards from any flying particles.
10. MACHINE GUARDING
▪ This concerns clarifying that guillotine cutters,
shears, power presses and other machines
require point of operation guarding.
11. PSYCHOSOCIAL HAZARDS
▪ This concerns on factors like job insecurity, high
demands, effort-reward imbalance, and low
autonomy, have been associated with health-
related behavioral risks, including a sedentary
lifestyle, heavy alcohol consumption, increased
cigarette smoking, and eating disorders.
INCORRECT ACCOUNTING
➢ It is a mandate that businesses should at all times
maintain precise and truthful bookkeeping records.
Conducting unethical accounting practices is a very grave
offense, particularly in publicly listed companies.
➢ it is essential for small privately-owned companies to keep
their financial records correct for purposes of taxation,
profit sharing, and investments.
➢ Accounting records that were deceived look healthy on
the surface yet the company is in deep financial problems.
➢ Most businesses consider incorrect accounting reporting
as the most unethical issue being faced by the business
world.
SOCIAL MEDIA
➢ has now become an influence on how an employee
conducts himself online and offline.
WHISTLEBLOWER
➢ is a person who exposes any kind of information or activity
that is considered illegal, unethical, or not correct within a
private or public organization.
➢ The information of suspected wrongdoing can be in the
form of a violation of company policy and rules, law,
regulation, or threat to public interest or national security,
along with scam, and dishonesty.
❖
ETHICAL ISSUES AND THE PROBLEMS IN THE BUSINESS WORLD
NON-DISCLOSURE AND CORPORATE ESPIONAGE
- A nondisclosure or confidentiality agreement is designed to
keep someone from talking about or stealing proprietary
information, trade secrets, inventions or other information
that has competitive advantage to the owner.
- Employers may require employees to sign nondisclosure
agreements with stiff financial penalties to discourage
these type of ethics violations.
CONFIDENTIALITY AGREEMENT
- are legal documents that requires the party to not share or
profit from classified information. They are implemented
whenever confidential business information should not be
revealed to the public, third parties or competitors.
- One common type of confidentiality agreement is a non-
disclosure agreement.
- is a written legal contract and is usually between an
employer and employee.
- can be categorized as either a unilateral or
mutual/bilateral NDA.
UNILATERAL NDA
- only one party agrees not to disclose classified information.
- The term “NDA” equates to a unilateral NDA.
MUTUAL NDA
- both/all parties agree not to share any confidential
information.
- the term “confidentiality agreement” equates to a mutual
NDA.
DIFFERENCE BETWEEN NDA VS. CONFIDENTIALITY AGREEMENT
➢ Confidentiality agreement binds all parties to keep secret
information confidential.
➢ NDA upholds secrecy by creating a confidential
relationship between the parties who sign it.
CORPORATE ESPIONAGE
- intellectual property is stolen or private client information is
sold on the black market.
 - stealing proprietary information, trade secrets, or
intellectual property from a business and giving or selling it
to another.
- The primary intent behind this is to use the acquired
information to gain a competitive advantage.
- One workable definition of this "the improper, unlawful and
unethical theft of trade secrets owned by or belonging to
one company by a competitor (or sometime a hostile
foreign state) for the purpose of achieving an advantage
over that company, or the country of its origin.”
TRADE SECRET
3. Conducting government-funded research that could affect
the financial interests of a company in which the
investigator has a personal financial interest.
4. Involving students or post-doctoral students and trainees
in work that could directly benefit a company in which the
faculty member supervising the students has a personal
financial interest.
5. Giving a company preferential access to results of partners
conducted research while providing personal consulting
services to that company.
6. Participating in institutional purchasing decisions about
products made by a company in which a person holds

- "Information including a formula, pattern, compilation, stock.

program, device, method, technique or process that; 7. Receiving licensing milestone payments for licensed

i. The information derives independent economic technology while performing clinical research on that
value, actual or potential, from not being generally licensed technology.
known to, and not being readily ascertainable 8. Serving on the Board of Directors of a company while
through proper means by, the public; and participating in clinical research on the company's
ii. The owner thereof has taken reasonable technology.
measures to keep such information secret. 9. Serving on the Board of Directors of a company while
receiving sponsored research from that company.
THE METHODS FOR SPYING ON COMPETITORS HAVE CHANGED OVER 10. Accepting a gift from a vendor.
TIME, BUT THE DESIRE TO UNCOVER A RIVAL'S HAS NOT. 11. Being involved in the decision to hire a company in which
one's spouse is an employee to provide services to
Notable cases of corporate espionage, to wit:
partners.
1. Hot Commodity
JUST COMPENSATION
2. Steeped in Tea's Secrets
3. Driving Competition ➢ Compensation decisions about similar type of occupation
4. Razor Burn are mostly based on the ability to execute the tasks
5. Oracle's Trash Talk assigned, demonstrated and consistent effort, general
6. Operation Shady RAT quality of work completed, and special skills, ability, and
7. HP Spies on Itself training that let the person do tasks that co-employees do
8. Drilling for Secrets not or cannot.
9. Lodging a Complaint ➢ In order to be fair, the procedure of deciding just
10. Going after Google compensation must be transparent, inclusive, responsible
and participatory.
CONFLICT OF INTEREST
THREE (3) POWERFUL PRINCIPLES INVOLVES IN THE ETHICS OF JUST
- This happen when a person's professional or personal
COMPENSATION:
obligations come up against a competing professional or
personal obligation. 1. All workers are valued members.

Types of activities that can create a possible conflict of interest 2. Right to be able to support and sustain life.

include: 3. Capability and the health of an employer.

1. NEPOTISM - this is the practice of giving favors to relatives WRONGFUL DISMISSAL

and close friends, often by hiring them.
➢ also called wrongful termination or wrongful discharge.
2. SELF DEALING - this is a situation in which someone in a
➢ Is a situation in which an employees’ contract of
position of responsibility in an organization has outside
employment has been terminated by the employer, where
conflicting interests and acts in their own interest rather
the termination breaches one or more terms of the
than the interest of the organization.
contract of employment, or a statute provision or rule in
WORKPLACE SITUATIONS IN WHICH CONFLICTS OF INTEREST IN THE employment.
WORKPLACE OCCUR:
WRONGFUL TERMINATION:
1. Receiving consulting fees from a company while
1. Discrimination
performing clinical research on the company's technology.
2. Retaliation
2. Owning a stock in a company while performing research
3. Reporting a violation of law to government authorities.
sponsored by the company.
4. Employee’s refusal to commit an illegal act.
 5. Employer is not following the company’s own termination - this happens when someone procures real estate with
procedures. money obtained illegally, and then sells the property.
- This makes it appear as if the profits are legitimate.
EMPLOYEE WHO IS DISMISSED WITHOUT JUST CAUSE IS ENTITLED TO
• SHELL COMPANIES AND TRUST
ANY OR ALL OF THE FOLLOWING:
- are used to disguise the true owner or agent of a big
amount of money.
1. Reinstatement without loss of seniority rights
• CASINO LAUNDERING
2. Separation pay for every year of service
- involves an individual going into a casino with illegally
3. Full-back wages
obtained money.
4. Compensation for damages
INSIDER TRADING
CONSTRUCTIVE DISMISSAL
➢ refers to the practice of purchasing or selling a publicly-
➢ also called constructive discharge or constructive
traded company's securities while in possession of material
termination.
information that is not yet public information.
➢ occurs when an employee resigns as a result of the
employer creating a hostile work environment. MATERIAL INFORMATION

FOLLOWING REASONS OF CONSTRUCTIVE DISMISSAL:
1. Demotion in rank or diminution of pay;
2. Obvious discrimination, insensibility, or disregard by an
employer becomes unbearable to an employee.
➢ refers to any and all information that may result in a
substantial impact on the decision of an investor regarding
whether to buy or sell security.
MULTI-LEVEL MARKETING AND PYRAMIDING

MONEY LAUNDERING
➢ practice by which criminals disguise the original ownership
and control of the earnings of criminal activity through
making such earnings seem to have derived from a valid
source.
➢ a strategy of some direct sales company which makes use
of current distributors to recruit new distributors through
paying the current distribution a certain percentage of
their recruits' sale.
➢ The recruits are called the distributors "downline".
➢ It is a legitimate multi-level marketing strategy if the

THREE (3) STAGES OF MONEY LAUNDERING situation is the former.

➢ It could possibly be an illegal pyramid scheme if the case
1. PLACEMENT – signifies the point at which illicit funds first is the latter.
enter the financial system.
2. LAYERING – aims to create complex transactions to MERGER

obscure the audit trail and make it difficult for authorities to

➢ Occurs when two separate entities combine forces to
trace the source of the funds.
create a new, joint organization.
3. INTEGRATION – laundered funds are reintroduced into the
legitimate economy. This can take the form of purchasing ACQUISITIONS
assets, or simply mingling the illicit funds with clean money.
➢ Refers to the takeover of one entity by another.
MONEY LAUNDERING TECHNIQUES:
ETHICAL DILLEMAS IN MERGER AND ACQUISITIONS
• BULK CASH SMUGGLING
1. DISCLOSURE BY TARGERT COMPANIES
- this comprises literally smuggling cash into another
- Refers to the practice of the target company
country for deposit into offshore banks or other type of
providing transparent and comprehensive
financial institutions that honor client secrecy.
information to its shareholders, stakeholders, and
• STRUCTURING
the public regarding any potential merger or
- also referred to as "smurfing.
acquisition activity involving the company.
- method in which cash is broken down into smaller amount.
- Disclosure typically includes relevant details
- used to acquire money orders or other instruments to
about the proposed transaction, such as the
evade detection or suspicion.
terms and conditions, reason for the merger or
• TRADE-BASED LAUNDERING
acquisition, potential benefits and risks, financial
- similar to embezzlement in that invoices are altered to
implications, and any potential conflicts of interest
show a higher or lower amount in order to mask the flow of
involving company executives or board members.
money.
2. UNFRIENDLY TAKEOVERS
• BANK CAPTURE
- Often termed a hostile takeover
- refers to the use of a bank owned by money launderers or
- Occurs when one company (the acquirer)
criminals, who then move moneys through the bank
attempts to purchase another company (the
without fear of investigation.
target) against the wishes of the target
• REAL ESTATE LAUNDERING
company’s management or board of directors.
 3. CONFIDENTIALITY
- Companies in discussions about a merger are
also confronted by the issue of how much to tell
employees about the planned transaction.
- Parties in the merger have to examine themselves
whether employees have the right to know that a
sudden change in their lives is in the work.
4. TERMINATING EMPLOYEES
TYPES
- One of the advantages of a merger is the chance
to trim down costs by combining certain business
functions of both companies and being able to
lessen total number of staff positions of the
combined companies.
- The cruel reality of a consolidation is it has to fire
employees.
- Valued, loyal employees who have contributed to
the company’s success for a number of years
might lose their means of livelihood.
5. RELOCATING EMPLOYEES
- Those employees blessed enough to be retained
after the merger may still be confronted with the
task of having to move to another place if the
company plans to combine operations into one
central site.
ENVIRNONMENTAL ISSUES UNFAIR COMPETITION
➢ are the set of challenges and problems facing Earth and its
natural systems.
➢ From climate change and pollution to overpopulation and
energy use, these issues are complex and interconnected.
1. PUBLIC HEALTH – pollution, water scarcity and
overpopulation present a clear danger to public health.
- Based from the World Health Organization (WHO),
almost one of every four deaths every year is
mainly due to unhealthy environments. DEFINITION OF WORK
2. LAND MANAGEMENT AND URBAN SPRAWL – urban sprawl is
the uncontrolled expansion of urban areas.
- This is a modern problem that threatens the
environment. Covering the landscape with
concrete interferes the natural water cycle,
stopping rainwater from soaking into the ground.
3. WASTE DISPOSAL – the collection, sorting, transport and Reason for working beside earning a living to satisfy their never-
treatment of waste as well as its storage and tipping above ending physical needs:
or underground; the transformation operations necessary
for its re-use, recovery or recycling.
4. OVERPOPULATION – is the state whereby the human
population rises to an extent exceeding the carrying
capacity of the ecological setting.
5. LOSS OF BIODIVERSITY – the decline or disappearance of
biological diversity, understood as the variety of living
things that inhabit the planet, its different levels of
biological organization.
MAIN REASON: 5 C’s MODEL OF WORK
• Change in land use
• Direct Exploitation
• Pollution
• Climate Change
• Invasive Alien Species
6. WATER SCARCITY AND WATER POLLUTION – there are two
ways water can be scarce which is either there is lack of
water or there is lack of drinkable water.
7. POLLUTION – is the introduction of contaminants into the
environment causing adverse change. It is present through
noise, air and water.
• Air Pollution
• Water Pollution
• Soil pollution
• Noise Pollution
• Light Pollution
8. DEFORESTATION – is the purposeful clearing of forested
land.
9. ECOSYSTEMS AND ENDANGERED SPECIES – lost habitats
mean losing the species that are living there. Some may be
able to migrate in another place, others are not so
fortunate.
10. CLIMATE CHANGE – refers to long-term shifts in
temperatures and weather patterns. Such shifts can be
natural, due to changes in the sun’s activity or large
volcanic eruptions.
➢ The Philippines has general antitrust laws that prohibit
unfair competition and arrangements and combinations
aimed to restrain trade or prevent by artificial means free
competition in the market. However the Philippines do not
yet have a comprehensive or well developed body or
antitrust law.
❖
➢ Purposeful human activity involving physical or mental
exertion that is not undertaken solely for pleasure and that
has economic and symbolic value".
➢ Essential in people's lives and crucial human activity.
➢ AKA Job, Source of income, A living, An employment.
• Develop their values
• Fill-in their egos
• Build their self esteem
• Create social identity
• Relate to other people and groups
• Achieve independence
• Organizes societies
• Work is both a personal and a social activity
1. CALLING
- Motivated by a lofty, non-material goal.
- Define work as motivating and rewarding and feel
highly energizing and satisfied in what they do.
 - Half of workers define their work as a calling. 3. PROFESSIONALISM
2. CAREER 4. EMPHASIS OF QUALITY
- Label their work as stimulating, fun, exciting and 5. DISCIPLINE
inspiring.
6. SENSE OF TEAMWORK
- Differ from Calling.
3. CAUSE INTEGRITY
- View that their work is an obligation or duty, heavy
- behaving in a consistent manner. Integrity covers
burden and not at a times pleasant or enjoyable.
every aspect of an employee's job.
4. CHORE
- It is seen as one of the most important ingredients
- Unpleasant, non-engaging, boring and difficult
of trust.
- One feels forced to do for the lone purpose of
earning a living or in exchange for other tangible SENSE OF RESPONSIBILITY
outcomes.
- <4% of respondents - The moment a person became part of a company
5. COAST and assigned tasks and duties, he has a
- Work is mot of main importance to one's life (9%) responsibility that he must accomplish.
- Most who vote coast are in their 20s (young
PROFESSIONALISM
employees)
- Covers almost a lot from appearance to how a
THEOLOGICAL MEANING OF WORK
person conducts himself in front of the public.
➢ God created human beings to work. The first instruction - Being determined, productive, focused on quality,
God gave Adam was to work, to tend the Garden of Eden and easy to work with are some related benefits of
(Genesis 2:15). Unfortunately, over the centuries, the term being professional.
work has gained some negative connotations. We often
EMPHASIS ON QUALITY
view work as a difficult or unpleasant activity we are forced
to perform. However, work is simply engaging in physical or - Employees with strong work ethics care much
mental activity in order to achieve a purpose or result. about the quality of their works.
Lifting a spoon to one’s mouth is work. Creating a song or - These people show dedication and commitment
poem to express the heart is work because such an activity to improve the quality of the company's overall
is performed in order to achieve a result. In Western culture, productivity.
the word work is most commonly associated with one’s
profession or means of livelihood, as in “he went to work DISCIPLINE

today, ” meaning “he is employed in a job and will spend

- involves focusing on goal, dedication and
the day accomplishing his assigned duties. ”
determination.

WORK ETHICS - something that comes from within. It needs a high

degree of commitment to complete the assigned
➢ is a belief that work and diligence have a moral benefit and task daily.
an inherent ability, virtue or value to strengthen character
and individual abilities. SENSE OF TEAMWORK

➢ Desire or determination to work serves as the foundation

- An employee with a great sense of teamwork
for values centered on the importance of work or
helps a team attain its goals and provide quality
industrious work.
work.
➢ Social ingrainment of this value is considered to enhance
- This employee respects their peers and helps
character through hard work that is respective to an
making collaborations go smoother.
individual's field of work.
- A cooperative spirit is always part of a strong work

CHRISTIAN WORK ETHICS ethics.

➢ For Christians, working hard is an essential part of life. WORK OF ETHICS OF EMPLOYERS

➢ Work must be done cheerfully and without complaints.

1. PAYING EMPLOYEES
➢ A person with good work ethics always sets as a good
2. REPORTING TO EMPLOYEES
example to others.
3. KEEPING EMPLOYEES
➢ People around him will always notice this type of a person
4. TREATING EMPLOYEES FAIRLY
and may felt curious about his good attitude.
PAYING EMPLOYEES
FACTORS DEMONSTRATING STRONG WORK ETHICS
- Employees should be paid at least based on the
1. INTEGRITY existing minimum wage.
2. SENSE OF RESPONSBILITY
 - Although managerial, professional, and
supervisory employees are compensated
differently.
- Once an employee works beyond 40 hrs a week,
he must paid an additional compensation called
overtime pay.
REPORTING TO EMPLOYEES
- Employees should be given a statement of their
gross pay, deductions and withholding, and net
pay for the pay period and the year to date.
KEEPING EMPLOYEES
- Employers have the responsibility to keep their
employees safe. Occupational Safety and
Health(OSH) together with the department of
labor and employment strictly implements the
rule of providing all workers with a safe, healthy
place in which to work, child labor is prohibited in
the workplace as part of safety.
TREATING EMPLOYEES FAIRLY
- All employees need to be treated fairly at all
times.
- Everyone should be given equal opportunity in
pay, promotion and benefits. Even disabled
employees are required to be treated properly
and be given equal opportunity in selecting,
testing and hiring.
- Applicant and employees with disability should be
subjected to "undue hardship".
GROUP 7
WORK ETHICS OF EMPLOYEES
➢ A person with a strong work ethics has a lot of good traits
or characteristics such being more organize, knows how to
prioritize, a dedicated servant and follows the right process
essential to complete a job.
CONVINCE EMPLOYES THAT HIS EMPLOYEE HAS A STRONG WORK
ETHICS, HERE ARE SOME WAYS:
1. PUT THE COMPANY FIRST
- Part of a strong and good work ethics is caring for
the company in a sincere and honest way. It is by
prioritizing the company in thoughts and actions
that an employee could show his care for the
company.
2. MANAGE TIME WISELY
- Time Management is more than being on time for
work and meeting deadlines.
a. Be punctual always - punctuality show
the integrity of a person besides proving
that a person is well-disciplined, humble
and dependable.
b. Have a good Attendance - a high rate of
absenteeism, even if unintentional
should be avoided.
c. Observe Deadlines - an employee who
finishes his task well ahead of time,
without any rushing and stressing out,
would be more favorable in the eyes of
the supervisor.
3. BE HONEST
- Even these there is still a truth to the saying
"Honesty is the best policy".
- An honest employee shall be trusted by his senior
and fellow coworkers. Here are some ways to
show honesty in a workplace:
a. Provide a honest feedback - giving
honest feedback shows objectivity on the
part of an employee.
b. Accept ones mistake - it is the best to
own and wrongdoing that has been
committed.
4. MAINTAIN A BALANCED AND CONSISTENT WORK
PERFORMANCE
- An employee with a strong work ethics is a
productive employee who can work at a fast
pace. This means he can finish more tasks in a
limited timeframe. Such kind of employee does
not easily give up and does not quit until his task
is completed.
- SOME WAYS TO PRODUCE GREAT WORK”
a. Do quality work - employees should go
beyond the minimum of expectations
with regard to the quality of their work.
b. Be organized - a disorganized employee
can be likened a person with unhealthy
personal hygiene.
c. Be consistent - even if no one is
watching, an employee with strong work
ethics still continue to perform at its best.
5. ALWAYS SHOW RESPECT
- respectfulness is becoming a rare thing
nowadays.
- one of the basic traits that an employer is looking
for because it is an indicator of the strong work
ethics of an employee.
- There should be no excuse to be disrespectful to
other people especially in the workplace.
BETTER WAYS TO SHOW RESPECT
1. STAY CALM AND POISED
- Anger should not cloud the judgment of a person.
Decisions would not be good and rational if a
person is angry. Being frazzled will reflect
negatively to others.
2. BE DIMPLOMATIC
- An individual must be cautious of his words.
- An inappropriate word here and there can
potentially offend others. Definitely this needs to
be avoided as much as possible especially in the
workplace.
 3. LISTEN TO OTHER’S OPINION
- Giving others time to voice out their opinions and
listening to them is already a sign of respect.
4. AVOID GOSSIPING
- Although idle chit-chat is inevitable at the
workplace.
- Gossiping maliciously about other people can
potentially blow up and lead to conflicts and even
bigger problems.
5. SHOW FAIR TREATMENT TO OTHERS
- This unfair treatment is a sign of having a crooked
judgment in dealing with bigger problems.
6. FOLLOW THE RULES
- Following simple rules such keeping the work are
clean and well-organized, or reporting to work on
time is a sign of being obedient.
- It is a good impression that even the most difficult
rules do matter.
7. WORK WITH OTHERS
- Though working alone is good, but working with
others will provide more and better results.
- The very nature of a company means that an
employee is part of a larger workplace with other
employees.
8. STAY FIT AND HEALTHY
- Having a sound and healthy in mind and body
also contributes to an employee's work ethics.
- A healthy employee can think more clearly, make
better decisions and exercise better judgment
when doing his work.
- Exercising regularly, eating the right and adequate
meals maintaining a balanced diet are ways of
staying fit and healthy.

WAYS TO BE OBEDIENT EMPLOYEE

1. BE MINDFUL OF COMPANY POLICIES

- Majority of companies have employee handbook
or manual that contains policies, rules and
regulations that employees must follow.
2. FOLLOW THE DRESS CODE
- Appearance does matter to a certain extent
regardless of the actual work being done. A
prescribed dress code is not just for purposes of
safety a member of the organization.

WAYS TO WORK SUCCESSFULLY WITH OTHERS

1. COOPERATE
- is very important in the workplace.
- Though with differing views still employees in a
company must be able to cooperate and work
together.
2. SOCIALIZE
- is also very important particularly in stressing out.
- This is one way to develop ones social skills while
strengthening relationship with the other
employees in the workplace.