LES Codes

SON of
3 Ethics
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Our

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AtSchedule:
the end of theweek, it is
expected that the learners
must be able to:
Learning  Formulate a “Code of
Objectives: Ethics” that reflect core
principles derived from
analysis (ABM _ESR12-
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IIIa-d-1.6)
 Corporate Management
●Board of Directors- Trustees of the Corporation
●Executive officers- run the business subject to
the general guidance and direction of the BODs.
●Employees- persons employed by a company or
an individual
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CODE OF ETHICS

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Referred to as an “ethical code,” that may
encompass areas such as business
ethics, a code of professional practice
and an employee code of conduct. It
can also be a guide for principles designed
to help professional conduct business
honestly and with integrity.
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The purpose of a code of ethics is to

PS
provide guidance and set common
ethical standards to promote
consistency in behavior across all levels
of employment. It is concerned in an
individual’s moral judgements about right
and wrong.
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CODE OF ETHICS

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● Ethical codes were first called creeds or
credos and were considered “legalistic” and
the reputation of the company
● Defined as the written documents which
attempt to state the major philosophical
principles and articulate the values
embraced by the organization
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● Policy documents defining responsibilities

CONSCIENCE

This separates man from the rest of the

animal kingdom, transforming him into a
rational moral being- one who has the ability
to discern wrong and to decide what is good
for him and for his society
The Need For Business Ethics
 Moral considerations- business ethics
provides opportunity for man to practice
his morality, to apply his own standards
of right and wrong in business.
 Religious considerations- it provides an
outlet for the religious to practice the
teachings of their religion through their
dealings with fellow human beings.
 Professional considerations- a
professional man exhibits the competence,
honesty and fair dealing that
professionalism requires him to do.
 Profit considerations- man needs to be
reminded that he is in business not just for
today but for all the tomorrows that are yet
to come.
Main Purpose

To help businessmen and would-be

businessmen to determine what business
practices are right and what are wrong
Special Purposes

To show businessmen that common

practices which they have thought to
be right because they see other
businessmen doing it are really
wrong – (before 9.00; now 8.97)
Special Purposes

To make businessmen realize that one cannot

employ double standards to the actions of other
people and to their own actions- what is wrong
for other people should also be wrong to them.
(e.g cheating)
Special Purposes

To serve as a standard or ideal upon which

business conduct may be based.- conscience
must continually be activated by feeding it with
knowledge; with rules of what is good or evil.
Important Terms
Business- those lawful activities
engaged in by human beings which
are involved in producing and
exchanging goods and services so as
to have means of livelihood
Ethics- moral standards of right and
wrong in conduct, judgement and
behavior.
Important Terms
 Moral- a good and a right choice. Moral
comes from the Latin word “moralis” which
means customs or ways of life. The related
term ethics is from the Greek word “ethos”
which also means customs. Morals and
ethics are synonymous. What is moral is
also ethical. An action is morally right if it
leads to physical, intellectual, spiritual,
personal and social development.
Important Terms

Immoral-a bad or a wrong choice. What is

immoral is also unethical. An action is morally
wrong if it is detrimental to the individual or to is
society.
Business Ethics- Standards or moral conduct,
behavior and judgement in business
Important Terms

Fair business competition- a form of business

competition where a businessmen gets the
opportunity where a businessmen gets the
opportunity to serve a customer by providing
better services, products and terms than his
competitors.
Scope and Basis of Business Ethics

 Business ethics covers all conduct,

behaviour and judgment in business. This
includes the slightest deviation from what
is right to illegal and dishonest acts that are
punishable by law.
 Generally, actions that are not forbidden by
law are ethical. In some cases, however,
what is legal(not forbidden by law) may be
unethical.
Scope and Basis of Business Ethics

Business ethics is based on the personal values

and standards of each person engaged in some
business.
There is still no uniform standard of right and
wrong from which all businessmen may base
their actions.
Evolution of Ethics or Moral Standards

Sociology- the study of group

behavior tells us that the earliest
grouping of men was a kinship
group.
The earliest group was the family
and the expanded in patriarchal and
matriarchal society was the clan or
tribe.
Evolution of Ethics or Moral Standards

In a family or clan, forbidden acts

include to neglect and be cruel to
one’s children and to steal.
Required acts include respect for
elders, caring of parents in their old
age, and respect for another person’s
property which included one’s wife.
Influence of civilization

Generally, the more civilized a society is, the

better are its ethics.
Moral growth is generally in proportion to
society’s progress.
Influence of the economic System

 The success of an individual is determined by his

material possessions and his standing in the economic
world.
 The richer the man is, the more successful he is
thought to be.
 As the success of individual depends on economic gain,
the force that spurs is the search for profit.
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Common Practices in Business Organizations

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1.Decorum
● Defined as an appropriate, polite
behaviour in a particular society. Office
decorum is about the Do’s and Don’ts to
be observed in a workplace. It considers
a simple list of a guidelines which help in
making the office environment a better
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place to work.
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Common Practices in Business Organizations
2. Protocol

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● Generally, means an official set of procedures
for what actions to take in a certain situation. It
is the proper procedure of conduct and a
standard set of rules that allow employees to
communicate with each other.
● The purpose of business protocol is to
encourage employees to act in a uniform
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manner.
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Common Practices in Business Organizations

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3. Policies and Procedures
● It provides employees a clear
understanding of what is being expected
to them and it also provide a fair,
predictable and consistent approach in
managing a workplace and its issues.
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Common Practices in Business Organizations

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4. Marketing
● This refers to the activities of a company
undertakes to promote the buying and
selling of its product and services. It
includes promotion, doing research,
advertising, selling, and distribution of
the services and its goods.
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Common Practices in Business Organizations

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5. Bookkeeping
● A system of maintaining records and
data of a particular business with
centralized book of records to balance
daily sales and cash receipts as well as
to reconcile bank accounts.
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Common Practices in Business Organizations

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6. Reportorial requirements
● Stricter for companies that sell securities
to the public, are listed in the stock
exchange or are classified as public
companies. It is stipulated by laws such
as the Securities Regulation Code and
the Corporation Code of the Philippines.
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Common Practices in Business Organizations

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7. Documentation
● All books, records, files, business
records and plans, reports,
correspondence, documentation in
respect of agreement and other financial
and customer data. It helps to tell the
narrative for decision made and how the
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client responded to different situations.

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ENHANCEMENT ACTIVITY

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●Direction. Answer the following questions that
well enhance your understanding capability.
ACTIVITY 1. What do you think is the difference
between ethics and morals?
2. What is the purpose of policies and
procedures in a workplace?
3. What is the importance of good ethics?
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ENHANCEMENT ACTIVITY

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● Here are some examples of Ethical issues in the Business
organizations.
 Health and the safety in the working place.
ACTIVITY  Discrimination in the workplace.
 Ethics in the Accounting practices.
 The social Media rants.
 Harassment
 Nondisclosure and corporate espionage.
 Technology and privacy practices.
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ENHANCEMENT ACTIVITY

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●Select one of those ethical issues above
mentioned. How would you address them?
ACTIVITY ●What do you think is the role of ethics in the
business
●How important is Ethics and Social
responsibility in the Business?
●What do you mean by Ethical responsibilities?
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Remember these key points:

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 Code of Ethics
 Common Practices in Business Organizations:
 Decorum
 Protocol
 Policies and Procedures
 Marketing
 Bookkeeping
 Reportorial requirements
 Documentation
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Congratulations!

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You have completed your journey
in this module. You did a great job!
It is now time to go on to the next
adventure…
Good luck!
 
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