Abm-business Ethics _ Social Responsibility 12_q1_w3_mod3.pdf

Republic of the Philippines Department of Education National Capital Region

DIVISION OF CITY SCHOOLS – MANILA Manila Education Center Arroceros Forest Park Antonio J. Villegas St. Ermita, Manila

Business Ethics and Social Responsibility Code of Ethics

Quarter 1 Week 3 Module 3 Learning Competency: The students should be able to formulate “code of ethics” that reflect core principles derived from analyses. ABM_ESR12-IIIa-d-1.6 Week 3

Learning Module for Business Ethics and Social Responsibility

HOW TO USE THIS MODULE? Before starting the module, I want you to set aside other task/s that may disturb you while enjoying the lessons. Read the simple instructions below to successfully enjoy the objectives of this kit. Have fun! 1. Follow carefully all the contents and instructions indicated in every page of this module. 2. Write on your notebook the concepts about the lessons. Writing enhances learning, that is important to develop and keep in mind. 3. Perform all the provided activities in the module. 4. Let your facilitator/guardian assess your answers using the answer key card. 5. Analyze conceptually the posttest and apply what you have learned. 6. Enjoy studying!

PARTS OF THE MODULE

  



Expectations - These are what you will be able to know after completing the lessons in the module.



Pre-test - This will measure your prior knowledge and the concepts to be mastered throughout the lesson.



Looking Back to your Lesson - This section will measure what learnings and skills did you understand from the previous lesson.



Brief Introduction- This section will give you an overview of the lesson. Activities - This is a set of activities you will perform with a partner.

      

Remember - This section summarizes the concepts and applications of the lessons. Check your Understanding - It will verify how you learned from the lesson. Post-test - This will measure how much you have learned from the entire module

Page 2 of 16

Learning Module for Business Ethics and Social Responsibility

Code of Ethics

LESSON 3

EXPECTATIONS At the end of the module, you will be able to:



understand the common practices in business organizations





appreciate the importance of Code of Ethics in business organizations



craft a simple “Codes of Ethics” or “Codes of Right Conduct”



Let us start with giving you an overview about Ethics in Business.

PRETEST

I. Answer the following questions. Write the letter of the correct answer on the space provided after each number. _______ 1. Which of the following statements is true about Ethics? a. It is the study of the wants and needs in business. b. It is the study of what is right and wrong in human behavior and conduct in business. c. It is the study of the relationship between people in a business. d. None of the above. _______ 2. Which is considered an unethical business practice? a. Treating employees fairly. b. Selling a good quality product. c. Hiring the most qualified applicants for vacant positions. d. Buying substandard materials for production.

Page 3 of 16

Learning Module for Business Ethics and Social Responsibility

_____ 3. John is always late in his client’s meeting. What can you say about him? a. John is very dedicated. b. John is optimistic. c. John is unprofessional. d. John is busy. _______4. A written set of rules that guide the employee in an organization on how to conduct himself in accordance with the company’s ethical standards and values. a. Mission Statement b. Goals and Objectives c. Executive Summary d. Code of Ethics _______5. What do you think is the benefit of practicing good business ethics? a. Low morale of employees b. Lack of trust c. High employee retention rate d. Decrease in product sales

LOOKING BACK TO YOUR LESSON

Great, you finished answering the Pre-Test. You may request your facilitator to check your work. Congratulations and keep on learning!

Last time, you have learned the core principles of good corporate governance. Let us review. Fairness in the context of a business organization involves balancing the interests involved in all decision-making including any decisions related to Page 4 of 16

Learning Module for Business Ethics and Social Responsibility

hiring, firing (including the investigatory process), and the compensation and rewards system. Accountability in the context of a business organization is the obligation to demonstrate that work has been conducted in compliance with agreed rules and standards or to report fairly and accurately on performance results vis-à-vis mandated roles and/or plans. Transparency is defined as being authentic in the way an organization manage themselves externally – to stakeholders, to prospective customers and talent, and within the community. Stewardship refers to taking responsibility for the business and the effects it has on the world around it. Identify

what

principle

(Accountability,

Fairness,

Transparency,

or

Stewardship) is being applied in the following situations. _______________1. Ms. Reyes keeps her class record organized and updated because she is very objective in giving grades. _______________2. The ABC company holds monthly board meeting to ensure that every member is well-informed about the current business situations. _______________3. Company X hires external auditor to assess and evaluate their financial statements. If the auditor finds out any discrepancy, the company will make sure that the accountants and other financial executives as part of their responsibilities in the company will make the necessary adjustments _______________4. Mr. Roxas, the manager of the Treasury Department, reported the savings of the company in all partner banks accurately. _______________5. The security guard of the building always makes rounds every 2 hours during his night shift to make sure that the company’s assets are secured.

Page 5 of 16

Learning Module for Business Ethics and Social Responsibility

BRIEF INTRODUCTION

Business and Ethics are always interrelated. Ethics guides us that we are doing the right thing. In the conduct of our business, we need to follow ethical standards of the company. But first, let us define what is Ethics?

Ethics is derived from the Greek word “ethikos” which means “having to do with character. The Latin word for ethos is “mos” (or “mores”). That is why we known Ethics as the Moral Science or Moral Philosophy. It refers to the theory of morality of right conduct.

Definitions of Business Ethics 1. Business Ethics is the study of what is right and wrong on human behavior and conduct in business. 2. Business Ethics is the study of perceptions of people about morality, moral norms, moral rules, and ethical principles as they apply to peoples and institutions in business. 3. Business Ethics is the study, evaluation, analysis and questioning of ethical standards, policies, moral norms, and ethical theories that managers and decision makers use in resolving moral issues and ethical dilemmas affecting business. But how can business be considered as an ethical organization? Previously, you learned about the core principles of good governance in business namely accountability, fairness, transparency, and stewardship.

Page 6 of 16

Learning Module for Business Ethics and Social Responsibility

Ethical organizations are based on these core principles. A business with good practice of accountability makes sure that all the financial obligations from its debtors are paid on time. Accountability of a company can also be shown in proper planning, hiring, and keeping employees, and budget management and reporting. An ethical organization also based on the principles of fairness. Employees who feel secured, because there is no impartiality, often stays with the company organization build. Meanwhile, transparency and stewardship also are known characteristics of good governance in an organization. Transparency in business builds the trust of the employees to the company, and the stakeholders such as the suppliers, investors, and of course the customers. Whereas stewardship is an ethical practice of managing the resources of the company well. To ensure that all those principles are practiced by all employees in the organization, Code of Ethics, or Code of Conduct are crafted to be the guiding light of the business in ensuring good ethical practice. What is Code of Ethics? ETHICAL CODE OR CODE OF ETHICS are principles adopted by an organization to assist those in the organization called upon to decide; it is about understanding the difference between “right” and “wrong” and to apply this understanding to their decision. In addition, Code of ethics is a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards. o CODE OF CONDUCT: it is a document designed to influence the behavior of employees. They set out the procedures to be used in specific ethical situations and delineate whether a violation of the code of ethics occurred and, if so, remedies should be imposed. o CODE OF PRACTICE: it is adopted by a profession or by a governmental or non-governmental organization to regulate that profession. It may be styled as a code of professional responsibility, which will discuss difficult Page 7 of 16

Learning Module for Business Ethics and Social Responsibility

issues, difficult decisions that will often need to be made, and provide a clear account of what behavior is considered “ethical” or “correct” or “right” in the circumstances. o CODE OF ETHICS is not written solely for the purpose of doing ethical business practice. It can also be applied and practiced in school, government, and even professional groups. There is code of ethics for teachers, accountants, engineers, lawyers, doctors, nurses, and all other professionals to ensure that they are following the same ethical standards in their professional practice.

ACTIVITIES Directions: Choose the letter of the correct answer. Activity 1. What is Ethics all about? _____1. A. Morally correct behavior

C. Making lots of money

B. An ethnic minority

D. A fooolish person

_____2. A. A set of criminal laws

C. A set of classroom

B. A set of moral principles

rules D. Telling half-truth

_____3. A. It is a code of conduct for a particular profession and not related to personal life. B. It is a field of study that focuses on faith and religion C. It is a branch of philosophy that deals with morality D. It is what we do when others are watching

Page 8 of 16

Learning Module for Business Ethics and Social Responsibility

Activity 2: How ethical are you? 1. After finding a diamond ring in a hotel room. You: a. Keep it because you believe in the finder’s keeper philosophy b. Turn it over to the lost and found department of a hotel c. Consider it yours unless the previous occupant looks for it and the front desk calls your attention to turn over it. d. None of the above. 2. After lunch, the waiter brings the check. Upon checking it, no dessert, and drinks to the bill. You: a. Pay the bill. It was their mistake. b. Call the waiter and ask him to recompute the check and add the dessert and drinks. c. Pay the bill and give him the bigger tip since you saved money because of the dessert and drinks that were not included in the bill. d. None of the above. 3. In a team meeting, your boss congratulates you for a project that was done by someone else from the team. You: a. Stay silent in the meeting and later approach your co-worker you are sorry the boss did that b. Explain to boss immediately that it was not your work and give credit where credit is due. c. Never say anything about it. d. None of the above. 4. Your company has a policy that prevents employees from accepting gifts. The policy also requires that you inform your manager about the gift. A supplier you have known for several years offers you a hotel gift certificate. You:

Page 9 of 16

Learning Module for Business Ethics and Social Responsibility

a. Accept the gift and tell your manager afterward. b. Accept the gift and do not tell your manager about it. c. Inform your boss and hope for approval. d. None of the above. 5. You are with some friends at the park. There are three different bins in the area. A friend threw an empty soda can in the paper bin. You: a. Better not say anything. b. Move the can into the correct bin. c. Give him stick to take the can out and advise him to put it in the correct bin. d. None of the above

REMEMBER Ethics refers to the theory of morality of right conduct. Business Ethics is the study of what is right and wrong on human behavior and conduct in business. Code of ethics is a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.

CHECK YOUR UNDERSTANDING Activity 1: Finding the ETHICAL or UNETHICAL. Directions: Write ETH if the statement is ETHICAL; UNETH if the statement is

UNETHICAL. ________1. Obeying company’s rules and regulations. ________2. Developing professional relationships with co-workers. ________3. Taking credit for others hard work. ________4. Using or taking company’s supplies for personal purposes. Page 10 of 16

Learning Module for Business Ethics and Social Responsibility

________5. Conducting personal business during working hour. ________6. Engaging in negative gossip about someone you work with. ________7. Extending lunch/ snack breaks. ________8. Showing initiative without being told. ________9. Lying inside and outside the workplace. ________10. Using foul language on co-workers in and out of the workplace. Activity 2: Finding the LIE and TRUTH. Directions: Write LIE if the statement is FALSE; TRUTH if the statement is TRUE. __________1. Ethics is a set of principles of conduct governing an individual or group. __________2. Code of Ethics is a written statement of policies and principles that guides the behavior of all employees or members of an organization.

__________3. Employees should obey only written work rules. __________4. Ethical character traits include integrity, honesty, and justice. __________5. To enhance the profits of the business continuously is the objective

of the Code of Ethics.

POSTTEST I. Multiple Choice. Directions: Read carefully the given statements after each question. Encircle the letter of the correct answer. 1. Which of the following are the functions of a Code of Ethics? a. It can express a shared commitment on the part of a professional society’s members to strive and to satisfy certain ethical standards and principles.

b. It can help foster an environment in which ethical behavior is the norm. c. It can serve as a guide or reminder in specific situations. d. All of the above.

Page 11 of 16

Learning Module for Business Ethics and Social Responsibility

2. Which of the following is a practice of fair treatment of workers at workplace?

a. Recreation facilities at the workplace. b. Rights of workers to fairness and dignity. c. Right of workers to have a share in company’s profit. d. None of the above. 3. Ethical issues do not exist in accounting because the field involves primarily objective data. a. True b. False 4. Which of the following is the study and practice of decisions about what is good or right? a. Law

c. Ethics

b. Morals

d. Business

5. A businessman who owns a medical store in a small town is the only outlet that sells face mask. There is a great necessity and high demand for the use of the item due to COVID-19 pandemic, so he charges irrational amount of doubling the price. The community gets mad of the situation. This business practice is most likely: a. Ethical because it is not illegal for the owner to set its prices based on maximizing profits. b. Ethical because the owner focuses only on the impact of decisions on his business. c. Unethical because business operates in a community and communities have expectations for behavior of individuals, groups, and businesses. d. None of the above.

Page 12 of 16

Learning Module for Business Ethics and Social Responsibility

II. CASE STUDY: Sarah-Matteo Wedding Sarah Geronimo and Matteo Guidicelli have a “secret marriage,” as the media described it, last

Feb.

20

at

the

Victory

Christian

Fellowship Church, followed by a “secret” post-marriage dinner with Matteo’s family and very close friends (including Swatch Lady Virgie Ramos who reportedly reserved the venue) at the Ministry of Crab restaurant in Shangri-La at the Fort, BGC. However, Atty. Romy Macalintal asserts that there is no such thing as ‘secret marriage’ because a marriage cannot be celebrated without at least two witnesses and the person authorized to solemnize it. Hence, the Sarah-Matteo marriage cannot be secret because of the presence of those witnesses aside from some friends or relatives who might have been invited to attend the ceremony.

He added that it might be “secret” to the parents of the bride (Divine and Delfin) but not to the entire world. It is a common knowledge that Sarah’s parents are against Matteo (and all the other actors linked to her before). Was Sarah’s decision to marry Matteo, morally right? Did she disobey her parents? In Ephesians 6: 1-3 it says, “Children, obey your parents in the Lord, for this is right. Honor your father and mother, which is the first commandment with promise: that it may be well with you and you may live long on earth.”

Question: If you were Sarah, whom do you follow? Your heart or the law of God? Expound your answer. ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Page 13 of 16

Learning Module for Business Ethics and Social Responsibility

Source: https://cebudailynews.inquirer.net/290980/limits-of-parents-concerns-thesarah-and-matteo-wedding https://www.philstar.com/entertainment/2020/03/04/1997836/no-suchthing-secret-marriage https://journal.com.ph/entertainment/showbiz/brouhaha-sarah-matteowedding

REFLECTIVE LEARNING SHEET

Everyday we make different decisions that will impact our future. Decisions that will lead to actions; actions that promote a high level of standard of ethics at all times. Action such as helping others.

The Book of Philippians Chapter 2 verses 3-5 says, “Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others.” Helping others is a good business. We are most likely to succeed as an entrepreneur if we are motivated by helping solve other people’s problems. Assuming you are starting a new company. Write a code of ethics for the firm.

Page 14 of 16

Learning Module for Business Ethics and Social Responsibility

E-SITES To further explore the concept learned today and if it possible to connect the internet, you may visit the following links: https://cebudailynews.inquirer.net/290980/limits-of-parents-concerns-thesarah-and-matteo-wedding https://www.philstar.com/entertainment/2020/03/04/1997836/no-suchthing-secret-marriage https://journal.com.ph/entertainment/showbiz/brouhaha-sarah-matteowedding

REFERENCES Banoc, R. (2020). Limits of parents’ concerns: the Sarah and Matteo wedding. Retrieved on June 18, 2020 from https://cebudailynews.inquirer.net/290980/limits-of-parents-concernsthe-sarah-and-matteo-wedding Roa, Floriano C. (2007). Business ethics and social responsibility. Quezon City: Rex Bookstore, Inc

Acknowledgements Writers: Mutya S. Capili, MBE Estela Marie C. Reyes, MBA Editor: Isabel A. Gumaru, DBA Evaluator: Ellaine I. Dela Cruz, DBA Validators & Reviewers: Remylinda T. Soriano, EPS, Math Angelita Z. Modesto, PSDS George B. Borromeo, PSDS Management Team: Maria Magdalena M. Lim, Schools Division Superintendent-Manila Aida H. Rondilla, Chief Education Supervisor Lucky S. Carpio, EPS Lady Hannah C Gillo, Librarian II-LRMS

Page 15 of 16

ANSWER KEY: PRETEST: I. 1. B 2. 3. 4. 5.

D C D C

LOOKING BACK TO YOUR LESSON: I. Identification 1. Fairness 2. 3. 4. 5.

ACTIVITIES: Activity 1: 1. A 2. B 3. C

CHECK YOUR UNDERSTANDING Activity 1: 1. ETH 2. ETH 3. UNETH 4. UNETH 5. UNETH

Transparency Accountability Transparency Stewardship

Activity 2: 1. B 2. B 3. B 4. C 5. C Activity 2: 1. TRUTH 2. TRUTH 3. LIE 4. TRUTH 5. LIE

6. UNETH 7. UNETH 8. ETH 9. UNETH 10. UNETH POSTTEST I. Multiple Choice 1. D 2. B 3. B 4. C 5. C II. Case Study (Answer varies) Rubrics for Grading the Case Study: 5- If the paragraph consists of 5 or more sentences with correct and complete Information. 4- If the paragraph consists of 3 to 4 sentences with correct information. 3- If the paragraph consists of 2 to 3 sentences with correct information. 2- If the paragraph consists of 2 sentences with correct information 1- If the paragraph consists of only one sentence with correct information.

Page 16 of 16