BRINGING THE

YARDSTICK INTO THE

CORPORATE WORLD

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Introduction
In the previous chapters, we have established those human
beings are moral agents- that as free rational beings, we are
morally responsible for the consequences of our actions; and as
socio—political beings, we share in the common burden of
making this world a better place of abode.

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READING GUIDE

Different provisions of the 1987 Philippines Constitution that epitomize the significance of ethical
considerations and social equality
• Article II, SECTION 11. The States values the dignity of every human person and guarantees full respect for
human rights.

• SECTION 12. The State recognizes the sanctity of family life and shall protect and strengthen the family as a
basic autonomous special social institution. It shall equally protect the life of the mother and the life of the
unborn from the conception. The natural and primary right and duty of parents in the rearing of the youth for
civic efficiency and the development of moral character shall receive the support of the Government.

• SECTION 14. The states recognize the role of women in nation- building, and shall ensure the fundamental
equality before the law women and men.

• SECTION 15. The State shall protect and advance the right of the people to a balanced and healthful ecology in
accord with the rhythm and harmony of nature.

• Article XIII, SECTION 1. The Congress shall give highest priority to the enactment of measures that protect
and enhance the right of all the people to human dignity, reduce social, economic and political and inequalities
by equitably diffusing wealth and political power for the common good.

• SECTION 2. The promotion of the social justice shall include the commitment to create the economic
opportunities based on freedom of initiative and self-reliance.
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Corporate World - a social forces where moral and social responsibility is becoming the nascent
fad.
- The place where the business ethics and laws apply and must be followed with certain other
specific behaviors that must be met in order to get ahead

And it seems that of late, this has been the vogue- both on how corporations portray themselves and in how
consumers choose the brand names they will support. This is turn led to the solidification of the concepts of
corporate social responsibility (CSR) and ethical business practices.
 

Liz Maw, CEO of nonprofit Alexis Magnan-Callaway

organization Net Impact, said said,

― “As consumers‘ awareness about ― “Technology has brought global

global social issues continues to grow, so does connectivity and enabled advocacy and
the importance these customers place on CSR awareness for social situations that were once
when choosing where to stop”. obscure”.

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CORPORATE WORLD FROM LEGAL PERSPECTIVE

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SOLE PROPRIETORSHIP
 Under this arrangement, a
person personally conducts
business under his name or a
business name. The simplest
example to this would be the
sari-sari store found in
almost every corner of our
streets.
 

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PARTNERSHIP
 A partnership is defined under the Civil Code of the
Philippines (Art.1767) as one where two or more
persons bind themselves to contribute money, property
of industry to a common fund with the intention of
dividing the profits among themselves. An example of
partnership is a law firm.

Under Article 1772 of the Civil Code of the Philippines,

a partnership must be registered with the Securities and
Exchange Commission (SEC) where it‘s capital is P3,000
or more. Take note, however, that the registration is not a
prerequisite for the partnership to acquire from the
moment of the creation of the partnership.
CORPORATION
 A corporation, as defined under
the Corporation Code of the
Philippines, is an artificial being
created by operation of law, having
the right of succession and the
attributes and the properties
expressly authorized by law or
incidents to its existence.
 

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Unlike a partnership, however, a corporation acquires its separate legal personality only after the
issuance of a Certificate of Incorporation by the SEC.
 
As to the manner of creation
As to the number of organizers
Authority of those who compose
Transfer of interest
Succession
Partnership Corporation
Created by mere agreement of the Commences only from the issuance
partners of the Certificate of Incorporation by
the SEC
Even two persons may form a Needs at least five (5) incorporators
partnership
There is mutual agency in Stockholders are not agents of the
partnership and each general partner corporation in the absence of express
can represent and bind the authority
partnership
A partner‘s interest to the partnership Corporate shares are freely
cannot be transferred without the transferrable without the consent of
consent of the other partners other stockholders, unless there is a
stipulation
There is no right of succession in There is right of succession in
partnership as death of a general corporation
partner dissolves the partnership
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BUSINESS ETHICS
• The corporation and other entrepreneur offers include everything from the basic needs to the most expensive
product, so the things they produce and the services they offer are existential a part of out daily activities and
endeavors that has impact on billions of people. Organizations have been responsible to change their
frameworks, laws, and business models in order to keep up with global trends and fulfill financial
commitments to provide both private and public advantages.

• Simply put, business ethics are sets of principles and standards that determine acceptable conduct in business
organizations. According to Johnson and Scholes they provide a different levels of business ethics, as it has
evolved over time:
 The macro level: the role business in the national and international organization of society the
relative virtues of different political/social systems, such as free enterprise, centrally planned
economies, etc., international relationships and the role of business on an international scale.
 The corporate level: ethical issues facing individual corporate entities (private and public sector)
when formulating and implementing strategies.
 The individual level: the behavior and actions of individuals within organizations.

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WHY SHOULD CORPORATION BE GOOD
• Corporation is any institution that contributes beneficial goods, product, or any financial
contribution for the employ of and the employee.
• Corporation needs to be good so that there will be a fair benefits in both parties. But in
the statement that I have read cheating is always present in every kind of business. It is
for the good of a person especially the boss, also the employee and vice versa.
• Having a good corporation meets the satisfaction of the employee and the employer. It is
needed so that the corporation would grow and become more successful. It is also
necessary to have a good corporation so that the customer will trust the employee or the
owner of the said corporation.
• All in all having a good corporation is a great help in nurturing any business, valuing
customers and employees, and it meets the satisfaction of the owner. That is why a good
corporation have these kind of traits to be trusted, to be respected, and to have a good and
ethical services for the goodness of all.

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CODES OF ETHICS IN CORPORATION
• Briefly, a code of ethics in corporation sets out
the company`s values, ethical standards, and
responsibilities. It is the law that binds the conduct
of employers and employees alike. It provides for
the general ideas and values upon which a
company`s internal policies and external affairs are
based.
 

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o Some examples of company code of ethics:

THE FOUNDATION OF BUSINESS ETHICS:

PRINCIPLES AND VALUES
• In simple terms, the spirit of the code means that all
actions of the company, its director, officers and
employees must, at all times, be consistent with the
principles of the accountability, integrity, fairness and
transparency which are defined as follows:

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A. ACCOUNTABILITY

- We shall take full responsibility for all our business decisions,

actions/inactions, and conduct, and shall perform our duties and functions with utmost
responsibility, integrity, honesty, loyalty, and efficiency. We are accountable to the
company and its stakeholders (employees, customers, shareholders and business
partners) all of whom we vow to serve to the best of our ability.

 Accountability means that individual is responsible for their actions, and maybe
asked to justify them.
 Can be defined as the Obligation of power holders to account for a take
responsibility for their actions.
 Government organizations, administrators are accountable to citizen, user of public
service and the law.

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B. INTEGRITY

- We shall act righteously, morally and legally. We shall uphold the simple
truth that ‘honesty is best policy’ and endeavor to act under the highest standards of
ethics.
We have the components of integrity such as honesty, conscientiousness and last principle.

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C.FAIRNESS

- We shall uphold the value of justice and fair play amongst everyone we deal
with, both internally and externally, striving always to look for a win-win situation.
 
D.TRANSPARENCY

- We shall uphold the value of truthfulness in everything we do coupled with

the quality of being open to scrutiny in a timely manner.

 Transparency – in a business or governance context is honesty and openness.

 
 Transparency and accountability are generally considered the two main pillars of
good corporate governance.

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STANDARDS OF BUSINESS CONDUCT AND ETHICS
• Commitments of the company, its directors, officers and employees in their behavior and various business
dealings.

A. COMPLIANCE
1. Engage in honest conduct and comply with all applicable laws, rules and regulations, including prohibitions on
insider trading, both in letter and spirit.
2. Personally adhere to the standards and restrictions imposed by those laws, rules and regulations.
3. Avoid the direct or indirect commission of bribery and corruption of representatives of governments or
regulators to facilitate any transaction
 
B. COMPETITION AND FAIR DEALING
1. Avoid taking unfair advantage of anyone through manipulation, concealment, abuse of privileged information,
misrepresentation of materials facts, or any unfair dealing practice.
2. Deal fairly with the company`s customers, service providers, suppliers, competitors and employees.

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C. CONFIDENTIALY OF INFORMATION AND PROPER USE OF PROPERTY
1. Maintain and safeguard the confidentiality of information entrusted by the company, its subsidiaries, affiliates,
customers, business partners, or such other parties with whom the company relates, except when disclosure is
authorized or legally mandated.
2. Follow the company policy and applicable laws regarding business records retention.
 
D. CONFLICTS OF INTEREST AND CORPORATE OPPORTUNITIES
1. Avoid any Actual or apparent conflicts of interest between your private interest of a member of your family, and
the interests of the company, unless you have obtained prior approval by the appropriate approving authorities as
designated in applicable policies of the company.
2. Avoid activities and interests that could significantly affect the objective or effective performance of duties and
responsibilities in the company, including business interests or unauthorized employment outside the company, the
receipt from and giving of gifts to persons or entities with whom the company relates, as well as insider dealing.

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E. DISCLOSURE
1. Publicly disclose all material information, including earning results, corporate strategy, related party and off-
balance sheet transactions.
2. To the extent relevant to your area of responsibility, comply with the company`s disclosure controls and
procedures and internal controls to ensure that
(i) financial and non-financial information is properly recorded, processed, summarized and reported and
(ii) the company`s public reports and documents, including the reports that the company files with the
Philippine stock exchange, the new York stock exchange, the Philippine and the U.S securities and exchange
commissions, comply in all materials respects with the applicable laws and rules
 
F. RISK MANAGEMENT
1. Restrict or minimize undertaking of risk so as not to jeopardize shareholder value.
2. Fully assess and managed risks involved in undertaking strategies, acquisition, activities, products, services, and
other business endeavors of the company.
 
G. RELATIONS WITH SHAREHOLDERS AND INVESTORS
1. Adopt strategies, actions, decisions, and transactions based on increasing shareholder value.
2. Adopt international best practices of good corporate governance in the conduct of business.
3. Keep business and accounting records which accurately reflect the financial position of the business and issue
financial statements to insure transparency of information.

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THE PHILIPPINE SEVEN CORPORATION
CODE OF PRODUCT

• The Philippine seven corporations remains committed in

providing excellent costumer service in all of its business
endeavors. All instruments for the fulfillment of its goals and
objectives shall be utilized with transparency as its main
foundation.

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THE COMPANY’S VALUES
• The code shall be consistent with the values espoused by the company. All the
employees, directors and officers, must, at all times, be consistent in the following
these values which are defined as follows;
1. TEAMWORK
- we foster an environment of synergy to attain the goals of the organization through active
participation and mutual respect.
2. INTEGRITY
- we are honest and trustworthy to our fellow employees, customers and business partners.
3. RELIABILITY
- we deliver what we promised.
4. CUSTOMER FOCUS
- we put our costumer first.
5. RESULT-ORIENTED
- we take the initiative to improve area of business by applying the four-step process.
THE STANDARDS OF THE CODE OF CONDUCT
• The principles and standards of action guiding all employees, directors and officers towards their
relationship to their position, to their fellow employees and of the company`s resources:

1. Confidentiality of Information
Recognizes that the position with the Philippine seven corporation is one of the highest trust and
confidence by the reason of his access and contact with all documents pertaining to the business.
To uphold the company`s trust is to protect all information be it trade secrets or business
information that could damage, hinder or cause competitors an advantage against
 
2. Compliance
a. To represent the company would require the highest form of compliance with all the applicable
laws, the rules and regulations especially prohibitions on insider trading on whichever form it
take.
 
3. Decorum of Employees
a. Everyone shall treat each other as a costumer.
4. Attitudes with Superiors
a. Communicate and clarify objectives, and goals and instructions; verifying if there is ambiguity.
 
5. Management of Subordinates
a. Strictly monitor the implementation of the rules and guidelines of the company and apply
immediate remedy to settle differences and minimize conflict.
 
6. Managing decisions
a. Align efforts of the individuals and the plans of the synergized groups to stablish clear, specific
purpose without sacrificing the vital goals of the company.
 
7. Proper use of Property
a. Company properties are the resource which the company uses to conduct its business. It shall
be used efficiently and shall be protected from misuse, loss, damage or theft.
 FAIR DEALING
Transparency would mean the disclosure of information pertinent to the line of
work. It shall cover methods, guidelines, and business process of the company
to aid any organization in conducting properly its business with the company.
 
 CONFLICT OF INTEREST AND CORPORTE
OPPORTUNITIES
Every employee should uphold the company`s interest at all times and integrate
it with its own personal interest without prejudice to the former.

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 DISCLOSURE
All directors and employees regardless of rank shall
disclose all their business/es, relationship/s, and affinities
among franchisees, merchandisers, providers and other
third-party entities dealing with the company in aid of
transparency in bidding and other procedures that requires
compliance.

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QUIZ
1) A social forces where moral and social responsibility is becoming the nascent fad.

2) She is a CEO of nonprofit organizations Net Impact, who also said – “ As consumers’ awareness about global social issues
continues to grow, so does the importance these importance these customers place on CSR when choosing where to stop.

3) - 6.) Give the four foundation of business ethics: Principles and Values.

7.) It is an arrangement where a person personally conducts business under his name or a business name.

8.) What arrangements that need at least five incorporators, and commences only from the issuance of the certificate of
incorporation by the SEC?

9.) It is created by mere agreement of the partners.

10.) Who provide the different levels of business ethics?

11.) - 15.) Give the five company’s values in any order.

16.) - 18.) Give at least three standards of the code of conduct.

19.) A ___________ sets out the company’s values, ethical standards and responsibility.

20.) It is the sets of principles and standards that determine acceptable conduct in business organizations.

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ANSWERS
1) Corporate World

2) Liz Maw

3) - 6.) Accountability, Integrity, Fairness and Transparency

7.) Sole Proprietorship

8.) Corporation

9.) Partnership

10.) Johnson and Scholes

11.) - 15.) Teamwork, Integrity, Reliability, Costumer Focus and Result Oriented

16.) - 18.)
Confidentiality of information, Compliance, Decorum of employees, Attitudes with superior, Management of subordinates, Managi
ng decision, and Proper use of property

19.) Code of Ethics

20.) Business Ethics

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PREPARED BY:
Flint, Riva
Macula, Lyn R
Madia, Aila Marie F.
Maestro, Jefferson
Malacapo, John Rey M.
Marceño, Jodi Faith F
Mayor, Kimberly
Monton, Reno R.
Mortos, Romuel
Muyo, Kenberly M.
Royo, Mart Joven
Santiago, Mich

MS. ANALY MARCO

lecturer

Thank you! 28