The document discusses the rational organization model of business. It defines the rational organization as having formal hierarchies and relationships designed to achieve goals efficiently. The key elements are the organizational chart which identifies authority and lines of reporting. Information flows from bottom to top and contracts obligate employee loyalty in exchange for fair treatment. Ethical issues can arise regarding employee obligations like conflicts of interest, commercial bribery, theft, insider trading, and commercial extortion.

1. THE RATIONAL ORGANIZATION
By: Mary Angel Vidal

2. “Rational” Model of a Business
Organization
Organization as a structure of formal (explicitly defined and
openly employed) relationships designed to achieve some
technical or economic goal with maximum efficiency.
• An organization is the rational coordination of
the activities of a number of people for the
achievement of some common explicit
purpose or goal, through a division of labor
and function and through a hierarchy of
authority and responsibility. - E.H. Schein

3. If an organization is looked at this way, then the most fundamental elements
of the organization are the formal hierarchies of authority identified in the
organization chart that represents the various official positions and lines of
authority in the organization.

4. The Rational Model of a Business
Organization
 Formal hierarchies identified in the organizational
chart are the firm’s fundamental realities.
 Organizations see to coordinate the activities of
members so as to achieve their goals with maximum
efficiency.
 Information rises from the bottom of the
organization to the top.
 Contracts obligate the employees to loyalty pursue
the organization’s goals and the employer to provide
a just wage and just working conditions.

5. 4 pics
Ethical issues on employee’s
obligation to the employer

6. C L W F O G A Y E N

7. LAW OF AGENCY
Part of the law that specifies the legal
duties of “agents” (e.g., employees)
toward their “principals” (e.g.,
employers).

8. T F O N T E C F L O S E R N I I T C

9. CONFLICT OF INTEREST
Occurs when employee has an interest that provides an
incentive to do his or job in a way that serves that interest
and not necessarily the interests of the employer he or
she is obligated to serve.
Necessary conditions for a conflict of
interest to arise:
• Employee or officer is engaged in carrying out a certain
task for his or her employer.
• Employee has an interest that gives him or her an
incentive to do task in a way that serves that interest.
• The employee has an obligation to do the task in a way
that serves the interests of his or her employer free of
any incentive to serve another interest.

10. M R L A I C B E I R B M E O C

11. COMMERCIAL BRIBE
A consideration given or offered to an employee by a
person outside the firm with the understanding that,
when business for the firm, the employee transacts
business for the firm, the employee will deal favorably
with that person or that person’s firm.

12. F H T T E

13. THEFT
Part of the employee’s agreement with the employer is
that he or she will use the resources and goods of the
firm in the pursuit of the firm’s legitimate aims.
Theft of information
• Includes the theft of digitized programs, music,
movies, e-books, etc., as well as trade secrets,
company plans, and proprietary formulas or other
data.
• Theft is even the original is not taken nor changed
but only copied, examined, or used without the
consent of the owner.
• Violates the owner’s right to have his property used
as he chooses, even if the theft does not injure the
owner.

14. D G T N I S I R D I E N A R

15. INSIDER TRADING
The act of buying and selling a company’s stock on
the basis of “inside” information about the company.
The ethics of Insider Trading
• Is said to be unethical because it is theft of
information that gives the insider an unfair
advantage.
• But it has been defended because:
a) It ensures stock prices reflect the true
value of the stock
b) It harms no one
c) Having an advantage over others in the
stock market is not wrong in itself and is
common with experts.

16. T R N L M E M A I R R O C E X O O T I

17. COMMERCIAL EXTORTION
Occurs when an employee demands a consideration
from persons outside the firm as a condition for
dealing favorably with those persons when the
employee transacts business for the firm.
The ethics of accepting gifts depends on:
• The value of the gift
• The purpose of the gift
• The circumstances of the gift
• The job of the recipient
• Accepted and public local practices
• Company policies on gifts
• Legal prohibitions on gifts

18. The Political
Organization
By: Carlyn Villareal

20. DIFFERENT BRANCHES OF THE PHILIPPINE
GOVERNMENT
The structure of the Philippine government is divided into
three branches:
 the Legislative Department (Article 6);
 the Executive Department (Article 7); and
 the Judicial Department (Article 8).

21. Checks and balances
 Refers to a mechanism designed to
limit power a single individual or body
of government and provide for the
harmonious interrelationship of the
people and all of the organs of
government or other social
institutions.
 Are intended to allow legitimate
power to govern and good ideas to be
implemented, while abuse of power,
corruption, and oppression are
minimized.

22. PRINCIPLE OF CHECKS AND BALANCES
The three co-equal departments are established by the
constitution in as balanced positions as possible. To maintain this
balance or to restore it if upset, each department is given certain
powers with which to check the others.
Checks by the President Checks by the Congress Checks by the Judiciary
- may veto or disapprove bills
enacted by the Congress (Sec.
27:1)
- through pardoning power, he
may modify or set aside the
judgments of courts (Art. VII,
Sec 19)
- Congress may override the
veto of the President (Sec.
27:1)
- Reject certain appointments of
the President (Art. VII, Sec. 16)
- Revoke the proclamation of
martial law or suspension of
the writ of habeas corpus by
the President (Art. VII, Section
18)
- Amend or revoke the decision
of the Court by the enactment
of a new law or by an
amendment of the old
- The power to impeach the
President and the members of
the Supreme Court.
- the Supreme Court as the final
arbiter may declare legislative
measures or executive acts
unconstitutional (Art. VIII, Sec
4:2)
- determine whether or not
there has been a grave abuse
of discretion amounting to
lack or excess of jurisdiction
on the part of the Congress or
President (Art. VIII, Sec. 2:2)

23. Employee Rights

24. The right to a fair
decision making
process when
decision makers
impose sanctions on
employees.

25. Right to due process
The right to a fair decision making process when
decision makers impose sanctions on employees.
The right to due process:
• Is justified because without it all other employee rights
are at risk
• Requires that individuals be notified of the rules they
must follow, that they may be given a fair and impartial
hearing when accused of violating the rule, that rules be
applied consistently, that processes through which
sanctions are decided be designed to determine the
truth objectively and that people not be held
responsible for what they could not avoid.
• Is institutionalized through fair grievance procedures.

26. The right to earn
one’s living by
working.

27. Right to work
The right to earn one’s living by working.
The right to work:
• It is justified because of the interest we have in the interest we have in
the instrumental and intrinsic value of work.
• Work has a critical instrumental value because it is a means to our
survival.
• Work has an intrinsic value because:
a) It is our basic economic contribution to society and helps us feel
worthwhile and useful
b) It lets us develop our potential and identity as a particular human
being
c) It lets us develop our character and virtues, and
d) It is a source of self-esteem and self-respect
• The right to work is threatened by unemployment which in the United
States has many causes including: recessions, use of new
technologies, outsourcing of jobs to low wage countries, free trade
agreements, and our shift from a manufacturing to a service economy.

28. The Caring
Organization
By: Robert Walinsundin

29. A company that cares is one that sees creating a
positive work environment for employees, and
being an active corporate citizen, as integral
components of their identity. Their day-to-day
business practices clearly reflect those
priorities. - Marci Koblenz

30. The Key Ethical Issues of the Caring
Organization
The moral problems of caring too much.
The moral problems of not caring enough.