problems in business and the corporate world

1. CHAPTER 7:
ETHICAL ISSUES AND
PROBLEMS IN BUSINESS &
THE CORPORATE WORLD

2. WHAT IS ETHICAL ISSUE?
• Ethical issues are defined as situations that occur as a result
of a moral conflict that must be addressed. Thus, ethical
issues tend to interfere with a society's principles.

3. A. SEXUAL HARASSMENT
• Sexual harassment includes unwelcome sexual advances,
requests for sexual favors, and other verbal or physical
harassment of a sexual nature in the workplace or learning
environment, according to the Equal Employment
Opportunity Commission (EEOC).

4. • Sexual harassment does not always have to be specifically
about sexual behavior or directed at a specific person. For
example, negative comments about women as a group may
be a form of sexual harassment.
• Sexual harassment can occur in a variety of circumstances.
The harasser can identify with any gender and have any
relationship to the victim, including being a direct manager,
indirect supervisor, coworker, teacher, peer, or colleague.

5. SEXUAL HARASSMENT
• Is an issue in the corporate world that must be looked into because it
can create a hostile and unhealthy workplace for the employees. For
this reason, the Congress of the Philippines enacted the Anti-Sexual
Act of 1995 or R.A. 7877 declaring sexual harassment unlawful in the
employment, education or training environment, and other purposes.
LEGAL PENALTIES OF R.A. 7877
• Imprisonment of not less than one month but not more that six
months
• Fine of not less that P 10,000 but more than P 20,000

6. 3 TYPES OF SEXUAL HARASSMENT

7. PHYSICAL SEXUAL HARASSMENT
Unwanted physical contact is considered either sexual harassment or
sexual assault, depending on the severity of the encounter. Examples of
physical contact that can constitute sexual harassment, or that can blur
the line between sexual harassment and sexual assault, include:
• Any form of unwanted touching
• Patting, grabbing, rubbing, or pinching
• Hugging or kissing

8. VERBAL SEXUAL HARASSMENT
• It involves saying anything of a sexual nature to someone who is an
unwilling recipient. If someone else says something to you that is
either explicitly sexual or sexually-suggestive, and if what they say
makes you uncomfortable, then you may be a victim of sexual
harassment. Examples of verbal sexual harassment include:

9. • Requesting sexual favors
• Expressing a desire for sexual
contact or conduct
• Using sexually-explicit language
• Telling sexual jokes
• Commenting on a person’s
appearance
• Speaking in a sexual tone
• Using sexually-suggestive
nicknames or terms of
endearment

10. NON – VERBAL SEXUAL HARASSMENT
Non-verbal sexual harassment is any form of unwanted sexual
communication or conduct that involves something other than verbal
speech but falls short of physical sexual contact. This includes sending
emails and text messages that are sexually explicit or otherwise sexual in
nature, as well as acts such as:
• Exposing oneself
• Blocking a hallway or
doorway
• Blowing kisses or winking
• Showing sexually-explicit videos
• Staring, following, or stalking

11. CLASSIFICATION OF SEXUAL HARASSMENT AT THE
WORKPLACE
• “Quid Pro Quo” Harassment-
“Quid Pro Quo” means “This for
That” (something for something)
and is defined as requiring a
sexual favour or interaction as a
condition of employment or in
exchange for an employment
benefit.
• A harassment that creates a
Hostile Environment - In this
environment, abuses include
verbal, physical and visual
conducts that create an
intimidating, offensive or hostile
environment in the workplace
that interferes with work
performance.

12. HOW TO PREVENT SEXUAL HARASSMENT IN THE
WORKPLACE
1. A broad anti-harassment/positive environment police that includes a
statement that specifically addresses sexual harassment
2. A separate sexual harassment policy that covers all organizational
3. Separate sexual harassment policy, one that addresses non-
management employees and one that addresses management

13. B. THE PROBLEM OF JUST WAGE AND UNFAIR
COMPENSATION
• Family Wage
• Nominal Wage
• Real Wage
• Living Wage
• Minimum Wage
• Just Wage
TYPES OF WAGES

14. COMPENSATION
• It is the essence of work.
• It can be in the form of wages, shares on profit, harvest or commercial
goods, in-kind payments, and other remunerative fringe benefits.
• Its main objective is to create a system of reward that is equitable to
the employer and employee.
• The general concern is that justice should be a substance of
compensation.

15. SOME ISSUES ON JUST WAGE
• The minimum wage mandated by the government is not a guarantee of a
just and fair wage.
• Organizations and businesses usually conclude that they are legally and
morally right when they fulfill their mutual agreement with the employees.
• Geographical difference hinder the formulation of a perfectly common
definition of fair wage. Some communities have a higher cost of living than
others.
• Wage indexation to cost of living, where wage is automatically adjusted
with the increases of cost of living, is not usually met by majority of the
employers.
• Companies have different interpretations of the justifiable pay for certain
job position, skills, and tasks. Thus, the prevailing rate in industry alone
could not perfectly establish a just wage.

16. FACTORS TO CONSIDER IN FORMULATION OF FAIR
WAGES
1. External Market Factor. These refers to the supply and demand for labor and
the so-called economic and underemployment.
2. Laws and Regulations. Workers should be paid in accordance with laws
regulations issued by the government. It requires that employers pay at
least the minimum wage.
3. Cost of Living. The cost of living relates to basic maintenance needs and it
must be seriously considered in formulation of wages. A fair wage should
be sufficient to meet the increase in cost of living.

17. 4. Prevailing Industry Rate. Some claim that paying workers the average of
what other companies are paying for the same job result in fair wage.
However not all the companies have a minimum wage high enough to
maintain a decent standard of living.
5. Organizational Factor. Assessment of what type of industry the
organization operates, the size of the company, and the organization's
profitability to justify its ability to provide fair wages to its workers should
be considered.
6. Job factor. The nature of the job itself entails the formulation of a just
wage. Duties, responsibilities, and the skills requirements of the job are
probably the most considerable determinants of fair wage.
7. Individual Performance. The trend is that individual performance or
productivity ratings affects. the determination of wage/ salary increases.

18. C. UNJUST DISMISSAL
• Unjust dismissal is when an employee is dismissed
from their job in a harsh, unfair, or unreasonable
manner.
• If an employee is terminated without any valid reason,
this could be classified as wrongful or illegal dismissal.

19. LEGAL FRAMEWORK
• In the Philippines, employment termination is governed by the Labor
Code and the rules and regulations promulgated by the Department
of Labor and Employment (DOLE). Termination may be initiated by
either the employer or the employee and must adhere to the
prescribed guidelines to be considered lawful.
GROUNDS FOR TERMINATION
• According to the Labor Code, employers may terminate an
employee based on just and authorized causes. Just causes include
serious misconduct, neglect of duties, fraud, and others. Authorized
causes are those such as retrenchment, closure of business, and
redundancy.

20. D. GIFT-GIVING AND BRIBERY
Gift-giving is merely an act of extending goodwill to an individual in an
effort to share something with them. Giving gifts to customers, clients
and business partners is a common practice in the business community.
The following are the common forms of gift-giving;
Samples, premiums, tie up promotions, allowance, tips, free goods,
prizes, coupons/certificates…etc

21. Bribery is defined as a practice of giving remuneration for performance
of an act that is inconsistent with the work contract or the nature of the
work one has been hired to perform.
Examples of Bribery:
• A motorist offers a certain amount of money to a police officer in
order not to be issued a ticket for over speeding;
• A citizen seeking paperwork or utility line connections gives an
expensive gift to a functionary in exchange for a faster service
• A construction company sharing percentage of its income to a civil
servant in order to win a contract

22. E. WHISTLE BLOWING
• It is the disclosure by an employee of confidential information which
relates to some danger, fraud or other illegal or unethical conduct
connected with the workplace, be it of the employer or his fellow
employees.
• A whistleblower is someone in an organization who witness behavior by
members that is either contrary to the mission of the organization, or
threatening to the public interest and who decides to speak out publicly
about it.

23. Types of Whistleblowing
Internal whistleblowing: occurs within the organization.
External whistleblowing: occurs outside the organization.
Current: Those who blow the whistle on current employees.
Alumni: Those who blow the whistle on former employees.
Open: The whistleblower discloses his identity.
Anonymous: The whistleblower does s not disclose his identity.

24. F. CONFLICT OF INTEREST
• It occurs in the business context when a person acts in a way that is to
his/her advantage at the expense of the employing organization. At the
time of hiring, when an employee agrees to the terms of a contract, there
is also an implicit agreement that the employee will not sacrifice the
interest of the organization for his/her personal interest.
• Conflict of interest violates the principles of impartiality.
• Common factors that create conflict of interest are commercial bribes or
gifts.

25. G. MONEY LAUNDERING
• It is the process of disguising illegally obtained money so that
the funds appear to come from legitimate sources or
activities. Money laundering occurs in connection with a wide
variety of crimes, including illegal arm sales, drug trafficking,
robbery, fraud and terrorism.

26. H. INSIDER TRADING
• Refers to the significant facts that have not yet made public
and are likely to affect stock prices.

27. I. OBLIGATIONS TO THE FIRM
• Employees are hired for the company’s tasks. The employees may obligate
themselves to do the work of the particular company for financial gains. The
employers often have numerous conditions to employment which the employee
has to follow.
• In order to maintain industrial peace and work in the spirit of harmony and
cooperation, worker-employer relations should be governed by law. The basic
rights of employees should be respected by the employers and the employees
should render their obligations to the employers. There are certain obligations that
are imposed on an employer. Such obligations may serve as the rights of the
employers by default. Let us see them one by one.

28. OBLIGATIONS OF AN EMPLOYER
Any employers in addition to special stipulations in the contract of
employment have the following obligations:
1. To provide work to the worker according to the contract of
employment.
2. To provide him with materials and implements necessary for the
performance of the work.
3. To pay the worker wages and other necessary payments that should
be made.
4. To respect the worker's human dignity.
5. To take all the necessary occupational safety and health measures and
to abide by the standards and directives given by the appropriate
authorities in respect of these measures.

29. 6. To cover the cost of the medical examination of the worker whenever
such medical examination required.
7. To give the worker, weekly rest days' public holidays and leave.
8. When the contract of employment is terminated or whenever the
worker so requests, to provide the worker, free of charge, with a
certificate stating the type of work he performed, the length of service,
and the salary he was earning.

30. PRESENTED BY GROUP 7;
AFABLE, JEYMAE
CONSTANTINO, CLARRISE
CUIZON, JOHN JERIC
RAMOS, CHRIZEL JANE
TEODORO, ZAREN CAMILLE