Lesson 3 Business Ethics

LESSON 3
Business Ethics and Social

Responsibility
The Core Principles Underlying Fairness, Accountability, and Transparency in Business Operation and Stewardship
LEARNING OBJECTIVES
At the end of the lesson, learners are able to:
• Classify the situation if is shows fairness,

accountability, or transparency;
• Explain the core principles of fairness,

accountability, and transparency;
• Illustrate how fairness, accountability, transparency

and stewardship is observed in business and non-
profit organizations.
To help the business organization get on the
right track, there are three core principles that
should be implemented in its operation - fairness,
accountability, and transparency.
•Fairness
•Accountability
•Transparency
Fairness
• This is the standard of judging which is exempted from bias or
prejudice. When someone displays fairness in making decision,
he/she pleases all involved parties and offers a solution that is
beneficial to everyone.
In business context, fairness means balancing the interests

involved in all decision-making including those related to hiring,
firing, and the compensation and reward system.
• Employees think of their organizations as just when the

rewards and the way they are distributed are fair.
Examples of fairness:
1. A boss listening to
both sides of the story
before judging who is
right and who is wrong.
2. An employer giving
13th month pay to all
his/her employees.
3. A person paying the
right price for a product
purchased or for a
service received.
Accountability
The most important aspect of preventing and detecting corruption
is the sound accountability structures. A civil society organization
without proper systems of accountability is fragile and open to
rumors of mismanagement and abuse of authority.
Accountability is the explication and justification process. It is

about testing, forming a judgment, and taking an action if
necessary. It also comes with responsibilities. Holding people to
account for those actions which they are responsible for is fair.
Accountability
Accountability is therefore an
obligation to demonstrate that
work has been carried out in
accordance with agreed rules and
standards, or to report on
performance results fairly and
accurately in relation to
mandated roles and/or plans.
Examples of Accountability:
1. A cashier admits he/she lost the company’s collection and it is
his/her mistake.
2. An engineer who is assigned on a project is the one to be
blamed if the project did not meet the deadlines.
3. Employee A recommended his cousin to be their company
janitor, but the latter stole the cellular phone of their secretary.
Therefore, Employee A may be blamed for recommending his/her
cousin and should pay or replace the lost cellphone.
Transparency
Transparency, at the individual level, considers intrinsic or ethical
salience as an important feature of the relational dimension of a
person. It is described as a personal quality which is necessary to
develop unity between and among individuals.
A transparent approach makes a person more honest and

sincere in his/her relationships, in communicating his/her points
of view, and in working actively to find shared meanings and
goals.
Transparency
Transparency helps people to
consider how the actions of
social organizations such as
multinational agencies and
non-governmental groups
offer meaningful support to
civil society and whether
funding is being properly
spent.
Examples of Transparency:
1. Reporting accurately the company’s financial
situation and risks to investors
2. Holding and selecting bids according to an open
pre-defined process
3. Having an open process of decision-making such
as in hiring additional
employees
What I Have Learned
WHAT IS STEWARDSHIP IN A BUSINESS?
• In the world of commerce, stewardship refers to taking
responsibility for the business and the effects it has on the
world around it. This involves considering more than just the
bottom line and looking at elements such as values, ethics, and
morals.
• In the world of commerce, stewardship refers to taking

responsibility for the business and the effects it has on the
world around it. This involves considering more than just the
bottom line and looking at elements such as values, ethics, and
morals.
THANK YOU

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LESSON 3

Business Ethics and Social

• Classify the situation if is shows fairness,

• Explain the core principles of fairness,

• Illustrate how fairness, accountability, transparency

In business context, fairness means balancing the interests

• Employees think of their organizations as just when the

Accountability is the explication and justification process. It is

A transparent approach makes a person more honest and

• In the world of commerce, stewardship refers to taking

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