business-ethics and social -code of ethics.pptx

business ethics

1. Business ethics

2. The treasurer of a cooperative withdrew P20,000 cash from a bank. On her way to the office, she passed by the public market and since it was market day, there were a lot of people in the area. A man suddenly snatched her bag where the money was placed. Although shocked and sad, she promised to pay the P20,000 through salary deduction.

3. 2. The manager of the company ordered materials for their office extension. He/she declared the actual amount and attached the official receipt for future reference.

4. 3. The boss noticed that his/her two clerks were not talking to each other. He/she ordered the two to come to his/her office one at a time to listen to both sides before he/she decides.

5. Definition of 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.

6. 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.

7. Definitions of Business Ethics 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.

8. But how can business be considered as an ethical organization?

9. 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.

10. Ethical organizations are based on these core principles. 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.

11. Ethical organizations are based on these core principles. 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.

12. 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.

13. What is Code of Ethics?

14. 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.

15. 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 and to apply this understanding to their decision.

16. 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 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.

17. 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.

18. Why is ethics important in business? Ethical conduct, whether at the corporate, professional, or personal level, is a direct reflection of the principles and values which regulate the person and the institution he/she represents. Organizations establish their own culture that is socially expressed as their ideals. Such principles or ideals have an impact on the relationships within the company, efficiency, prestige, performance and retention of employees, legalities, and the wider community they work in.

19. Why is ethics important in business? As a result, most organizations generate a list of organizational values and codes of conduct to be recognized and adhered by all workers. Motivating and enhancing constructive actions, and at the same time building an atmosphere that prevents unethical behavior are vital obligations on the part of both administrators and workers.

20. How to Apply Ethics At the individual level, organizations ought to concentrate on improving and encouraging every employee to respect and adhere to ethical principles. Certain aspects of individual ethics have their roots in the individual. Achieving a strong sense of professionalism and recognizing certain professional decisions' ethical implications are the key components of education, individual reflection, and experience.

21. Examples of Ethical Issues in Business 1. Ethical Issues in Finance Under the umbrella of finance and accounting, fairness in trading practices, trading conditions, financial contracting, sales practices, consultancy services, tax payments, internal audits, external audits, and executive compensation are included, whereas specific corporate ethical/legal abuse includes insider trading, bribery/kickbacks, misleading financial analysis, and fraud on securities.

22. Examples of Ethical Issues in Business 2. Ethical Issues in Human Resource (HR) Management Human Resource Management 's tasks include hiring and orientation, performance evaluation, training and development, labor relations, and health and safety concerns. Among the ethical issues are discrimination by age (the young ones are preferred over the older ones), gender preference, sexual orientation, race, ethnicity, disability, and physical appearance are all ethical issues that the HR oversees.

23. Examples of Ethical Issues in Business 3. Ethical Issues in Sales and Marketing Marketing ethics deals with the beliefs, standards and/or morals that advertisers and marketing organizations will operate upon. Ethical marketing issues include promotion of obsolete or harmful products/services; openness about environmental threats; food ingredients (Genetically Modified Organisms); possible health hazards or financial risks; protection for the privacy and autonomy of consumers; truthfulness in advertising; and honesty in price and delivery.

24. Examples of Ethical Issues in Business Ethics in marketing includes practices in pricing, which involves unlawful acts such as price manipulation and price skimming. According to ayes (2020), price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. On the other hand, advertising has raised concerns over offensive advertisements, objectification, and school marketing.

25. 4. Ethical Issues in Production Business ethics typically deals with company's duties to ensure its goods and industrial procedures do not inflict unnecessary harm. Many products and services can be generated and used at zero risk and it can be difficult to assess the ethical path. However, there are consumers who patronize products that damage them, for example, tobacco products. Output can have adverse effects on the environment like air pollution, destruction of habitats, and urban sprawl.

26. Developing code of ethics Saucer and Sims (2013) offer recommendations for developing Code of Ethics in business organizations: 1. Adopt code of ethics (use the Code of Ethics of other companies as a reference and modify according to the needs of the company). 2. Offer training on ethics (for management and employees).

27. Developing code of ethics 3. Hire and foster individuals with ethical value. 4. Deal with immoral activities. Employees must know the implications and effects of making unethical actions, and should be ready to accept consequences.

28. Developing code of ethics 5. Take constructive measures. For example, give rewards to employees who admit their mistakes. If the company is conscientious and smart, it can encourage warehouse workers to take responsibility for their mistakes and even praise them for coming forward, apologizing and ensuring that a faulty product is not purchased by the customer.

29. Developing code of ethics 6. Carry out a social audit. Conduct survey to employees once in a while. 7. Cover all whistleblowers. These people detect illegal activities within organizations and disclose the actions to the authority or managers. A whistleblower who works sincerely, correctly reporting an issue, should be praised for his/her courage and integrity, as opposed to being disciplined and ostracized.

30. Developing code of ethics 8. Empower the defenders of integrity. Support those who work with honesty and integrity. 9. Ensure executive commitment. The anonymity of those who report the problems should be practiced.

31. Developing code of ethics 10. Communicate the principles of conduct within the company and across the industry. 11. Assign an officer who is clearly responsible for the enforcement of ethical standards. He/she can be consulted for advice.

32. Developing code of ethics 12. Establish a procedure for violations of ethical standards, and fully review any offenses reported. 13. Ensure high perseverance by the company's board of trustees. 14. Lead by example, above everything else.

33. It should be remembered that when faced with an ethical situation, the outcome of the decision-making process should be considered. One way to tackle ethical situations is by using the four-way test to evaluate decisions.

34. This four-way test consists of asking four questions: 1. Is my decision truthful? 2. Is my decision fair to all who are affected by it? 3. Will this build the organization's goodwill? 4. Will the decision benefit all parties with vested interest in the outcome?

35. Code of Ethics contains the following: 1. Vision means something that you imagine; a picture that you see in your mind (Merriam-Webster Dictionary). The vision statement helps to ensure the alignment of the decisions to the company goals. Example: To make innovations that everyone could access and adapt depending on their needs

36. Code of Ethics contains the following: 2. Values (value means something thought of as important or useful) Values in business help to ensure that all of the employees work towards the company goals. Example: We commit ourselves to serve our customers with quality service and utmost respect.

37. Code of Ethics contains the following: 4. Principles - moral rules or beliefs that help you know what is right and wrong and that influence your actions (Merriam-Webster Dictionary). Examples: Customers have to be respected. Make sure to deliver quality product.

38. Simplified Sample of Code of Ethics: XYZ Company Our Core Values Our Vision: To lead the car industry by giving our customers quality cars worthy of their money and unmatched customer services Our Values: We act with the highest standards of integrity. We respect individuals and treat them fairly.

39. Our Mission: To work efficiently and enthusiastically to make XYZ Company the country’s top car dealer while serving our customers punctually and courteously

40. Our Principles: 1st: XYZ Company shall adopt a zero-tolerance policy towards bribery and corruption in whatever form; 2nd: All company officers and employees shall conduct business in accordance with Philippine laws and regulations; and 3rd: We shall act in good faith and observe sense of professionalism at all times.

41. Code of Ethics aims to lessen conflicting issues as it explains to what degree such conflicts can be avoided and what parties can do if these conflicts happened. Professionals therefore cannot say that they were ignorant of the immoral nature of their improper behavior. Often relevant is the possibility of disciplinary action (e.g. disbarment of a lawyer) which helps minimize unnecessary disagreements or offensive behavior where a confrontation is imminent or is likely to happen.

42. Performance Task no. 2 Directions: Read the situation and formulate a Code of Ethics for the business. Situation: You just started an online business selling bags and shoes made in Laguna. You employed one bookkeeper, one clerk, two utilitymen, and four (4) delivery personnel.

43. Follow the format given below: Our Core Values Our Vision Our Values Our Mission Our Principles: 1st: 2nd: 3rd: Rubrics: Relevance to the business 10 pts. (Four points for each - vision, values, mission, and three principles) Mechanics 16 pts. Originality 4pts Timeliness(submitted on time) 5 pts. Overall Presentation (cleanliness)5 pts Total 40 points