Ethical issues in

business
Ethical marketing
Honesty

Fairness

Responsibility
Ethical marketing
Relationship b/w company and the customers

Creates value to the customers through by

providing goods and services

Application of marketing ethics

 UNEthical advertising
BAIT AND SWITCH ADVERTISING
Attracting customers by advertising a certain product or
service at a bargain price.
 UNEthical advertising
ADVERTISING FOR CHILDERN
Children consume huge amounts of advertising without
being able to evaluate it objectively.
 UNEthical advertising
DECEPTIVE ADVERTISING
Manufacturer’s use of confusing, misleading, or blatantly
untrue when promoting a product
 UNEthical advertising
EXAGGERATION OR PUFFERY

An advertising technique that is both fun and effective

 UNEthical advertising
MISLEADING ADVERTISEMENT
occurs when a claim about a product or service is materially
false or misleading in attempt to persuade a consumer to buy it.
 UNEthical advertising
MISLEADING ADVERTISEMENT
occurs when a claim about a product or service is materially
false or misleading in attempt to persuade a consumer to buy it.
 UNEthical advertising
SURROGATE ADVERTISING
find ways to remind consumers of these products without
referencing them directly.
 Sexual harassment
Act or a series of acts involving any unwelcome sexual
advances, request or demand for sexual favor

2 types of sexual harassment

(1) Quid Pro Quo
(2) Hostile Environment

Quid Pro Quo- committed when a person demands, request

or requires sexual favors from another in exchange for
another thing.
 Civil service commission resolution
number 01-0940 (HOSTILE ENVIRONMENT)

Hostile Environment: is an work environment exists when

one's behavior within a workplace creates an
environment that is difficult or uncomfortable for another
person to work in due to discrimination.

 Malicious touching
 Overt sexual advances
 Gestures with lewd insinuation
 Request or demands for sexual favors and lurid remarks
 Use of objects, pictures or graphics, letters or writing notes
with sexual underpinnings
 Other forms of analogous to the ones mentioned
Women’s development code of davao city
The following are the considered as forms of sexual
harassment:
 Offensive jokes or green jokes, analogous statements to
someonr
 Taunting person who talk about sex and sex innuendos
 Displaying offensive or lewd pictures
 Interrogating someone about sexual activities
 Making offensive gestures to someone
 Repeatedly asking for dates despite verbal rejection
 Touching, pinching or brushing up against someone body
 Kissing or embracing someone against his/her will
 Requesting sexual favors in exchange of good thing
 Cursing, whistling, or calling a woman in public with dirty
words such as “puta” (prostitute), peste (pest) and etc.
 Republict act 7877

ANTI-SEXUAL HARASSMENT ACT OF THE PHILIPPINES

 A). Prescribing the procedure for investigation of sexual

harassment cases

 B). Create a committee on decorum and investigation of

cases on sexual harassment
Inappropriate use of computer and time
stealing
 Unfair competition

 Umbrella term involving deceptive or wrongful business

practices that economically harm both consumers and
business organizations.
 Unfair competition includes “misleading advertisements”
Examples of unfair trade practices

Trademark infringement
Examples of unfair trade practices

Shortchanging the customer

Examples of unfair trade practices

Withholding of some information

Examples of unfair trade practices

Misappropriation of trade secrets

Examples of unfair trade practices

Employee piracy
 Examples of unfair trade practices

Restraining workers to join labor unions

 Environmental parasitism

 a business organization that draws its resources from the

local community both from raw materials to human
resource but fails to reinvest and develop the community.

 Approaches done by the company:

a). On the PEOPLE
b). On the RESOURCES
c). On the ENVIRONMENT
 recklessness

 result of irresponsible actions or negligence on the part of

the companies that lead unethical practices.
 EXAMPLES OF RECKLESSNESS:
1. Fails to remit SSS or PAG-IBIG and PhilHealth
2. Does not record its sales for tax purposes
3. Non-payment of business taxes on time
4. Failure to secure the basic requirements for registration of
business (e.g. Business Permit on SEC)
 Unethical practices in the public
sector

 Graft and Corruption

 Improper use of Government Property
 Bribery and Influence Peddling
 Conflict of Interest and Self-dealing
 Graft and corruption
 Graft-form of political corruption
 Corruption- abuse of public trust for private purposes
Improper use of government
propery
 Bribery and peddling
 Bribery- when a person of public authority is offered, and
accepts some personal benefit in the form of money, property
or free services in exchange for performing some action. One
common form of bribery is the influence of peddling
 Conflict of interest and self-
dealing

 Conflict of Interest- when a public official’s private interests

are such that they may influence the performance of his or
her public duties.

 Self-dealing- when an individual’s activities in his/her official

capacity involve dealing with him/herself in a private
capacity, often for personal benefit.