Philippine Values, Changes, Culture and system

Use for reporting

1. Ethical considerations in economic transactions

2. What is ethics? Ethics or moral philosophy is the branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct. 2

3. Ethical considerations in economic transactions are crucial for maintaining integrity, trust, and fairness in business practices. These considerations not only affect the reputation of businesses but also influence consumer behavior, regulatory compliance, and overall economic stability. This discussion will delve into various ethical principles, provide relevant examples, and illustrate these concepts with visual representations.

4. Transparency is the foundation of ethical economic transactions. Organizations must provide accurate and clear information about their operations, financial conditions, and business practices. Example: Imagine a local bakery, "Sweet Treats," that advertises its cookies as "made with organic ingredients." If the bakery uses non-organic ingredients but fails to disclose this to customers, it misleads them. This lack of honesty can damage trust and lead to negative consequences if discovered. 1. Transparency and Honesty

5. 2. Fairness and Equity Fairness in economic transactions means treating all parties equitably and ensuring that no one is exploited. Example: Consider a flea market where a seller has an old lamp they want to sell. If the seller has a general idea that the lamp is worth ₱ 200 but sells it for ₱ 150 because a buyer shows interest, both parties benefit from the transaction. However, if the seller intentionally misrepresents the lamp's value to charge more than it's worth, this is unethical. 5 3. Accountability Accountability involves organizations taking responsibility for their actions and decisions. Example: If a company discovers that one of its employees has been misusing company funds, it must take action by investigating the issue and reporting it to authorities if necessary. For instance, if "Tech Innovations" finds evidence of fraud, failing to act would be unethical.

6. 4. Respect for Stakeholders Respecting stakeholders means considering the interests of everyone affected by business decisions. 5. Avoiding Conflicts of Interest Conflicts of interest occur when individuals or organizations have competing interests that could influence their decisions. Example: A clothing manufacturer decides to cut costs by moving production to a country with lower labor standards. While this may increase profits, it can harm workers who face poor working conditions. A responsible approach would involve ensuring fair wages and safe working environments. Example: An employee at a car dealership recommends a specific vehicle because they receive a bonus for each sale rather than because it is the best option for the customer. This situation compromises their integrity and can lead to unethical sales practices.

7. 6. Compliance with Laws and Regulations Adhering to legal standards is crucial for ethical economic transactions. Organizations must comply with all applicable laws governing their operations. Example: A food company must follow health regulations when producing its products. If "Healthy Bites" fails to meet safety standards and continues selling contaminated food, it poses risks to consumers and violates ethical norms. 7

8. Overall, ethical considerations in economic transactions encompass principles such as transparency, fairness, accountability, respect for stakeholders, avoiding conflicts of interest, and compliance with laws. By adhering to these principles, organizations can foster trust and integrity within their business practices. The integration of ethical standards not only enhances corporate reputation but also contributes to sustainable economic growth and social responsibility. As businesses operate in an increasingly interconnected world, understanding these ethical considerations becomes vital for long-term success and positive societal impact. By prioritizing ethics in economic transactions, companies can build stronger relationships with stakeholders and create a more equitable marketplace for all. 8

9. Thank you for listening 9