San Agustin Diocesan Academy Inc.

Jaen, Nueva Ecija

Senior High School Department

S.Y. 2022-2023
Learning Area: Business Ethics and Social Responsibility
Semester: Second
Quarter: First
Grade Level: Twelve
Module No. 2
Week & Date: February 27, 2023
Mo
dule’s Objectives:
A. Content Standard: The learner will be able to demonstrate an understanding of the core principles underlying
fairness, accountability, and transparency in business operation and stewardship (respect for others’ property) and
common practices in business organizations (decorum, protocol, policies, marketing, bookkeeping, reportorial
requirements and documentation, etc.)
B. Performance Standard: The learner will be able to explain the purpose of business organizations and their role in
socioeconomic development and explain the core principles of fairness, accountability and transparency in the
socioeconomic development of a country, craft simple “Codes of Ethics” or “Codes of Right Conduct”.
C. Learning Competencies: At the end of this module, you should be able to:
1. Illustrate how fairness, accountability, transparency, and stewardship is observed in business and non-profit
organizations
2. Formulate a “code of ethics” that reflect core principles derived from analyses

Focus: Core Principles of Fairness, Accountability, and Transparency

 Notions of Accountability, Fairness, and Transparency
 Notions of Competence, Professionalism, and Responsibility
 Relationship of Accountability/Stewardship/Responsibility with Ethical Business
 Code of Ethics and Business Conduct

List of References:
Adam Hayes (Investopedia 2020). Code of Ethics [Article]. https://www.investopedia.com/terms/c/code-of-ethics
Aliza, R. (2017). Business Ethics and Social Responsibility. 1st ed. Rex Printing Company, Inc.
Jonalyn C.B. (2017). Business Ethics and Social Responsibility. DIWA Learning System Inc.
Josephson Institute of Ethics 8117 W. Fairness [Article]. https://josephsononbusinessethics.com/2010/12/fairness
Reynaldo A.P. (2016). Business Ethics and Social Responsibility. 1st ed. JFS Publishing Service
Resume.com. Professionalism at work [Article]. https://www.resume.com/career-advice/career-development/
professionalism-at-work/
Simplicable. (2020). Transparency [Article]. https://simplicable.com/new/transparency
Toppr. Business Ethics [Article]. https://www.toppr.com/guides/business-communication-and-ethics/business-ethics/
meaning-and-ethical-principles-in-business/

Learning Content

Challenge Question: How can business organizations help in the socio-economic development of a community?

Unlocking of Learning Difficulties:

Bestow - confer or present (an honor, right, or gift)

Codified - arrange according to a plan or system
Conscientious - (of a person) wishing to do what is right
Courteous - polite, respectful, or considerate in manner
Deescalate - reduce the intensity of (a conflict or potentially violent situation)
Dubious - hesitating or doubting
Enthusiasm - intense and eager enjoyment, interest, or approval
Fairness - impartial and just treatment or behavior without favoritism or discrimination
Impartiality - equal treatment of all rivals or disputants; fairness
Litigation - process of taking legal action
Notion - conception of or belief about something
Tout - attempt to persuade people of the merits of (someone or something)
Module’s Lecture:
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We must be ethical if we want to be successful in business. The reasons for running ethical businesses are only going to
get more compelling—as well as more complex—over the coming decade, as suggested by a new global survey conducted
by the Human Resource Institute (HRI) and commissioned by American Management Association (AMA).

Ethics also helps create structure in a company. Within their jobs, it defines the extent to which employee can act to please
the customer and maximize the value of work ethics. It is also important to realize that millennials like you are the next
generation of talent entering the professional world—and they are the ones dictating what is important for companies. The
following discussion will present a step-by-step process for developing a code of ethics.

Core Principles of Fairness, Accountability, and Transparency

What is accountability?

In ethics and governance, accountability is answerability, blame worthiness, liability, and the expectation of account-
giving. In Filipino culture and language, accountability can be exactly translated to “PANANAGUTAN”. It is also the
obligation of an individual or organization for its activities, accept responsibility for them, and to disclose the results in a
transparent manner. Accountability structures are the most important aspect of prevention and detection of corruption.

An example of accountability is when an employee admits an error, he/she made on a project. When an employee is given
the task of making sure a project goes right and knows that she will be blamed if it does not, she can also be said to have
accountability for the project.

The following are the illustrative examples of accountability:

 Actions
We can see accountability in action when if their business is failing, they do not hide their head in the sand and
stay in denial instead they do something proactive about it.

 Work Products
Accountable employees in their work products can help to increase performance of business as a whole and to
maintain a positive company culture, vision, and ethics.

 Strategy and Sourcing

It is for the team to successfully implement your strategic plan, you will need to: create clear and actionable goals,
set dates and metrics, cascade these actions, and foster a culture of accountability.

 Decision Making
Decision making is the ability to accept responsibility, determine a course of action, and account for one’s own
action. There is a focus on taking action to achieve goals or standards. It is taking responsibility for both decision-
making process and outcomes of decisions and actions.

 Delegation and Policies

To be accountable, practitioners must have the ability to perform the activity or intervention. Accept
responsibility for doing the activity and have the authority to perform the activity, through delegation and the
policies and protocols of the organization.

 Culture
In a Culture of Accountability, people at every level of the organization are personally committed to achieving
key results targeted by the team or organization, and they never wait to be asked for a progress report or a follow-
up plan. As you would expect, it holds everyone’s accountable results.

What is fairness?

The moral obligations arising from the core ethical value of fairness are always associated with the exercise of power to
render judgements that bestow benefits or impose burdens. Fairness is making judgements without reference to your
personal feelings but solely based on what the business needs. It is also the quality of making judgements that are free
from discrimination.

Treating all people equally and applying reasonable punishments only when rules are broken is an example of fairness.

Another example, all shareholders should receive equal consideration for the shareholdings they hold.

Fairness requires that we:

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  treat all people equitably or equally based on their merits and abilities and handle all essentially similar situations
similarly and with consistency;
 make all decisions on appropriate criteria, without undue favoritism or improper prejudice;
 never blame or punish people for what they did not do, and appropriately sanction those who violate moral
obligations or laws. Workers may actually be punished or held liable for their negligence – they failed to do what
they should do. The point of this statement is all about not punishing those who did NOT do anything wrong;
 promptly and voluntarily correct personal and institutional mistakes and improprieties;
 not take unfair advantage of people’s mistakes or ignorance; and
 fully consider the rights, interests, and perspectives of all stakeholders, approach judgments with open-minded
impartiality (setting aside prejudices and predispositions), conscientiously gather and verify facts, provide critical
stakeholders with an opportunity to explain or clarify, and carefully evaluate the information.

What is transparency?

Transparency implies openness, communication, and accountability. It is the lack of hidden agendas or conditions,
accompanied by the availability of full information required for collaboration, cooperation, and collective decision
making. Transparency is also essential in building families, and through families, in strengthening civil society as a whole.

For example, accurate report in financial position of the firm to investors including risks.

The following are the common examples of transparency:

 Financial
It means offering a clear, concise, and balanced view of your company's financial situation to shareholders.

 Strategy
It can provide to the investors and employees an outline or transparency of the strategy in doing blueprint and
business model.

 Salary
If you have ever seen a job listing with information about the salary range for that position, that's an example of
partial pay transparency. Full pay transparency is when you reveal specific compensation numbers for every
employee in the organization, from the top management to the newly hired intern.

 Freedom of Information
Laws in some countries require governments to share data with citizens. Private information such as medical
records and classified information typically included. In some cases, classified information is expected to be
declassified with time.

 Decision Making
For decision making to work within an organization, management needs to declare the intention to keep decision
making transparent and available for review and questions.

 Research
Research transparency defined as the obligation to make data, analysis, methods, and interpretive choices
underlying their claims visible in a way that allows others. to evaluate them as a fundamental ethical obligation.

 Media and Technology

Aspects of transparent media include open-source documentation, open meetings, financial disclosure statements,
the freedom of information legislation, budgetary review, audit, peer review, etc.

Notions of Competence, Professionalism, and Responsibility

What is competence?

Competence refers to the quality of having or possessing all the required and expected knowledge and skills for doing
something or for being something. For example, a teacher can be called “competent” if she really has the ability to teach.

Studies show that moral character and technical competence are viewed as being equally important for worker excellence.
In order to do that, responsible worker needs a minimum set of skills, as well as moral and relational qualities (Whestone,
2003)

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The following are the minimum competencies expected of professionals:

 Technical skills encompass the ability to apply specialized knowledge or expertise. When you think of the skills
of professionals such as civil engineers or architects, you typically focus on the technical skills that they have
learned through extensive formal education.
 Human skills are the ability to understand, communicate with, motivate, and support other people, both
individually and in groups, which defines human skills.
 Conceptual skills are the skills and the mental ability that managers must have to analyze and diagnose complex
situations. The ability to integrate new ideas with existing processes and innovate on the job is also a crucial
conceptual skill for today’s managers (Robbin and Judge, 2013)

What is professionalism?

Professionalism is how you display your behavior, attitude, and level of skills in the workplace. Being professional at
work can be described in many ways, with one of the most agreed-upon definitions being a person’s ability to demonstrate
a conscientious, courteous and business-oriented manner while on the job. Professionalism is typically always expected
within the workplace and is a quality that all employees should strive to embrace and exhibit.

For example, an employee that can be trusted with confidential information of the company.

The following are a few of the many benefits that professionalism at work can provide:

 Encouragement for employee improvement. A business environment where professionalism is encouraged and
practiced can boost overall employee success and motivation.
 Established and understood boundaries. When a company clearly outlines their expectations for
professionalism in the workplace, employees are more likely to respect and fulfill these expectations.
 Boosted workplace respect. Employees who act in a professional way and work in an environment that
encourages professionalism are much more likely to respect both each other and the leaders of the company. This
can help to minimize overall workplace conflict and help to quickly deescalate conflict when it does arise.

What is responsibility?

Responsibility means to make sure that the company’s product and services meet the needs of the customers and clients,
that they are safe and not harmful, and that real and potential risk are openly and transparently communicated (Maak and
Pless, 2006). Part of the responsibility of the worker is to be trustworthy. Employees need to demonstrate that they have
integrity, benevolence, and ability in situations where trust is important.

The Relationship of Accountability/Stewardship/Responsibility with Ethical Business

For the board members and managers of non-profit organizations, they are constantly reminded that they must be good
stewards of the public trust, ensuring the resources of our organizations are well protected and used efficiently to
accomplish the missions for which our organizations exist. They are also charged with making certain management
practices to ensure the long-term sustainability of the organization.

What is stewardship?

Stewardship can be described as “a concept that has inspired the activities of several organizations whose mission is to
preserve, protect, and maintain natural, social and economic assets for the benefit of stakeholders and communities.”

What is responsibility with ethical business?

Ethical responsibilities include the behavior of the firm that is expected by the society but not codified in law. The
factors of ethical responsibility include that the business must be environmentally friendly. The business should always be
aware of its activities and how do they affect the environment. It is the moral and ethical responsibility of every human
and every business.

Code of Ethics and Business Conduct

A code of ethics is a guide of principles designed to help professionals conduct business honestly and with integrity.
A code of ethics document may outline the mission and values of the business or organization, how professionals are
supposed to approach problems, the ethical principles based on the organization's core values, and the standards to which
the professional is held.

The Code of Ethics and Business Conduct is aimed at establishing the reference framework for understanding and
implementing the conduct and standards that the company expects from its employees in their day-to-day work.
Therefore, due to the impossibility of anticipating all the matters and situations that could occur in the course of our
activity, the code provides us with a basic set of guidelines to guide our personal and professional conduct.

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For further understanding of the concept/topic of this module, I saved an PDF file on your OTG flash drive entitled Code
of Ethics and Code of Ethics Principles and Rules of Conduct.
You may also visit the following links:
 https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/code-of-ethics-conduct-policy.aspx
 https://global.theiia.org/standardsguidance/Public%20 Documents/IPPF_Code_of_Ethics_01-09.pdf

Note: While a code of ethics is often not required, many firms and organizations choose to adopt one.

A code of ethics also referred to as an "ethical code," may encompass areas such as business ethics, a code of
professional practice and an employee code of conduct.

Business Ethics

Ethics means the set of rules or principles that the organization should follow. Business ethics refers to a code of
conduct that businesses are expected to follow while doing business. Business ethics compromises of all these values
and principles and helps in guiding the behavior in the organizations. Businesses should have a balance between the needs
of the stakeholders and their desire to make profits.

For example, ABM company sells cereals with all-natural ingredients. The marketing department wants to use the all-
natural ingredients as a selling point, but it must temper enthusiasm for the product versus the laws that govern labeling
practices.

Some competitor’s advertisements tout high-fiber cereals that have the potential to reduce the risk of some types of
cancer. The cereal company in question wants to gain more market share, but the marketing department cannot make
dubious health claims on cereal boxes without the risk of litigation and fines. Even though competitors with larger market
shares of the cereal industry use shady labeling practices, that does not mean that every manufacturer should engage in
unethical behavior.

Note: Business ethics are meant to ensure a certain level of trust between consumers and corporations, guaranteeing the
public fair and equal treatment.

Any business that values the core principles; fairness, accountability, responsibility, transparency in business
operation, and stewardship, usually performs exceedingly and has the capacity to attract more investors, whose support
can help to finance further growth.

Illustrations and Examples:

For more example of code of ethics for this module, I saved a PDF file on your OTG flash drive entitled Repsol Code of
Ethics. You may also visit the link: https://www.repsol.com/en/sustainability/policies/code-of-ethics-and-business-
conduct/index.cshtml

Faith Formation:

JUSTICE and TRUSTWORTHY

In this module, we learned that successful business depends on the trust of various parties, employees, managers,
executives, customers, suppliers, and even competitors. Ethics serves as a guide to moral daily living and helps us judge
whether our behavior can be justified. We should apply God’s words conservatively, taking into account how things look
to others as well as how things are in truth. In this way, we will be able to follow a good discipline with the maximum
influence for good.
“When justice is done, it brings joy to the righteous but terror to evildoers”

- Proverbs 21:15

Prepared by: Checked by: Noted by:

Mrs. May Ann S. Nuestro Mr. John Patrick G. Malang Mr. Nathaniell C. Capinpin
Subject Teacher Subject Area Coordinator Academic Supervisor

Joanne Mae J. Bondoc, Ed.D.

SHS Academic Coordinator

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