The document discusses the importance of business ethics, defining it as the study of right and wrong conduct in business, and emphasizes core principles such as accountability, fairness, transparency, and stewardship in ethical organizations. It outlines the role of a code of ethics in guiding employee behavior and decision-making, as well as providing examples of ethical issues in finance, human resources, marketing, and production. Additionally, the document provides recommendations for developing a code of ethics and highlights the significance of maintaining ethical standards within organizations.

1. BUSINESS
ETHICS

2. 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

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

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

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,

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

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

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

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,

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