Business Ethics and

Social Responsibility
Quarter 3 – Module 2:
The Core Principles Underlying
Fairness, Accountability, and
Transparency in Business
Operation and Stewardship
After going through this module, you are
expected to:

1. classify the situation if is shows fairness,

accountability,or transparency;
2. explain the core principles of fairness, accountability,
and transparency;
and
3. illustrate how fairness, accountability, transparency
and stewardship is
observed in business and non-profit organizations.
Directions: Identify what is defined or
described by choosing the letter of your
answer. Write your answers on a separate
sheet of paper.
1. It is the explication and justification process.
A. accountability B. fairness C. transparency D. efficiency

2. It is giving to a person what is due to him/her.

A. accountability B. fairness C. transparency D. efficiency

3. This act should be done accurately to the company’s investors.

A. hiring B. reporting C. organizing D. auditing
Directions: Identify what is defined or
described by choosing the letter of your
answer. Write your answers on a separate
sheet of paper.
4. This approach makes a person more honest and sincere.
A. accountability B. fairness C. transparency D. efficiency

5. This means that the standard of judging is free from bias.

A. accountability B. fairness C. transparency D. efficiency
 TRUE OR FALSE
6. When a manager is not bias, he/she is fair.
7. Ted showed transparency when he reimbursed his expenses without showing official
receipts.
8. An employee is accountable to pay whatever company property he/she hasdamaged
or lost.
9. Fairness is shown when one listens to the two sides of a story.
10. Accountability is shown when one admits his/her mistake and is responsible for it.
11. Betty exercised fairness when she paid the right amount for an item purchased.
12. Transparency is shown when the accountant hides the records from the other
Shareholders of the company.
13. Bobby is exhibiting transparency when he holds an open bidding for the company’s
next project.
14. Mina should pay the money collection that she lost in the restaurant, being the
treasurer of the lending company where she works.
15. A boss may choose who among his employees will be given 13th month pay.
Recall your On-the-Job Training. Share
your observation in the employees
'performance of their duties. Explain your
answers briefly.

1. Were the employees fair in the

performance of their duties?
2. Were they accountable when they lost
something?
3. Were the records transparent?
Read the text below and follow the given
instructions
Miguel works as an accountant in a big corporation. For 2019, the tax payable
by his company to the Bureau of Internal Revenue (BIR) is more
than Php 10,000,000.00 pesos. Since he is assigned to transact business with
the BIR, he connived with the revenue officer where they both agreed to lower
the tax to Php 5,000,000.00 only. Then, the Php 2,000,000.00 was given to the
collecting officer and the Php 3,000,000.00 went to Miguel’s own pocket.
Supposing you work with Miguel at the accounting department and you
suddenly discovered what he did, what would you do?
Put check (/) if the action is acceptable. If not, leave it as it is.
_____ I will talk to Miguel and tell him that I will not report him provided that
he shares with me his part.
_____ I will immediately report him to the manager.
_____ I will not do anything because I do not want to be involved in the issue.
_____ I will share the information to my closest officemate, but we will never
disclose it to others.
1. Have you been blamed for something you did
not do? Explain what happened.
2. Have you gotten a grade that you think you
did not deserve? Explain what happened.
3. Have you lost somebody else’s property
which you just borrowed? Explain what
happened.
Fairness

 This is the standard of judging which is exempted from bias or

prejudice. When someone displays fairness in making decision, he/she
pleases all involved parties and offers a solution that is beneficial to
everyone. In business context, fairness means balancing the interests
involved in all decision-making including those related to hiring, firing,
and the compensation and reward system. Employees think of their
organizations as just when the rewards and the way they are
distributed are fair.
Fairness is giving to a person what is due to him/her. It has
something to do with justice because the employer checks
whether the members have the benefits and burdens distributed
evenly to them.

Examples of fairness:
1. A boss listening to both sides of the story before judging who is
right and who is wrong.
2. An employer giving 13th month pay to all his/her employees.
3. A person paying the right price for a product purchased or for a
service
received.
Accountability
 The most important aspect of preventing and detecting corruption is the
sound accountability structures. A civil society organization without proper
systems of accountability is fragile and open to rumors of mismanagement
and abuse of authority. Worst of all, lacking it will prevent the organization
from enjoying full respect and legitimacy in the eyes of its stakeholders,
including those bearers of duties that it intends to advocate with.

 Accountability is the explication and justification process. It is about testing,

forming a judgment, and taking an action if necessary. It also comes
with responsibilities. Holding people to account for those actions which
they are responsible for is fair.

Accountability is therefore an obligation to demonstrate that work has been

carried out in accordance with agreed rules and standards, or to report
on performance results fairly and accurately in relation to mandated roles
and/or plans
Examples of accountability:

1. A cashier admits he/she lost the company’s collection

and it is his/her mistake.
2. An engineer who is assigned on a project is the one to be
blamed if the project did not meet the deadlines.
3. Employee A recommended his cousin to be their company
janitor, but the latter stole the cellular phone of their
secretary. Therefore, Employee A may be blamed for
recommending his/her cousin and should pay or replace the
lost cellphone.
Transparency

Transparency, at the individual level, considers

intrinsic or ethical salience as an important feature of
the relational dimension of a person. It is described as
a personal quality which is necessary to develop unity
between and among individuals. A transparent
approach makes a person more honest and sincere
in his/her relationships, in communicating his/her
points of view, and in working actively to find shared
meanings and goals.
Organizationally speaking, the
instrumental salience of transparency is
identified as an important mechanism for
ensuring social responsibility. For example,
adequate disclosure is required to inform
donors of how an organization uses its money.
Transparency helps people to consider how the
actions of social organizations such as
multinational agencies and non-governmental
groups offer meaningful support to civil society
and whether funding is being properly spent.
More examples of transparency:

1. Reporting accurately the company’s financial

situation and risks to investors
2. Holding and selecting bids according to an
open pre-defined process
3. Having an open process of decision-making
such as in hiring additional employees
1. I could show fairness
by……
2. I could show
accountability by ……
3. I could show
transparency by……
Match the term in Column A to its
definition/description in Column B. Write
only the letter of your answer on a separate
sheet of paper
6-8 _____________, _________________, and
_______________ are the threeimportant core principles in
business organization.

9. _________ is shown when one listens to the two sides of

a story before
giving his/her judgment.

10. _________ is shown when one admits his/her mistake

and is responsible for it.
 CORRECT ORT INCORRECT

11. One exercises fairness when he/she pays the right amount for an item
purchased.
12. Transparency is shown when one hides the records from the
otherShareholders of the company.
13. Bong is exhibiting transparency when he holds an open bidding for
company’s next project.
14. Lito should pay the money collection which he lost in the restaurant,
being the treasurer of the lending company where he works.
15. A boss may choose who among his/her employees will be given
Christmas bonus