ethics\

• Accountability


  To be liable to explain or justify one's action and decisions
• Corporation


  A form of business owned by its stockholders
• Fairness


  • A principle that looks at the balance of benefits and burdens distributed among members of a group
  • A principle that describes leaders who go beyond their self-interest and focus on opportunities to help followers to grow and develop
• Partnership


  A form of business organization for a group of 2 or more
• Business organization


  An entity that aims to earn a profit by providing products
• Corporation


  Formed legally through its Articles of Incorporation filed with the Securities and Exchange Commission
• Transparency


  • A principle that involves balancing the interests involved in all decision-making including any decisions related to hiring, firing, and compensation and rewards system
  • Has something to do with ethical justifications for information disclosure
• Ethics


  • It enables a person to discern right from wrong
  • The study and practice of what is right or wrong
• Social ethics


  The molding of cultures by society
• Ethical issue


  An identifiable problem or situation that requires a person to make an action or decision that must be evaluated as right (ethical) or wrong (unethical)
• Corporate culture


  A system of shared actions, values, and beliefs that develops within an organization and guides the behavior of its members
• Corporate social responsibility


  Practices and activities that business organizations adopt in the course of their operations which have social and environmental impacts and relevance
• Whistleblowing


  Reporting illegal or unethical activities within an organization
• Rights-based ethics


  An ethical principle emphasizes treating all individuals fairly and equally
• Code of ethics


  A list of guidelines and protocol based on the organization's values
• Corporate governance


  The system of stewardship and control to guide organizations in fulfilling their long-term economic, moral, legal, and social obligations towards their stakeholders
• Internal integration


  One of the main reasons why culture develops in an organization
• Advantages of a sole proprietorship

  • Can retain all the profits
  • Can make all hiring decisions
  • Can make all the marketing decisions
• Sole proprietorships are not required to consult agencies to determine the business location
• Roles of business organizations

  • Employs people
  • Strengthens the economic health of a community
  • Contributes to the progress and development of a country
  • Does not cause massive damage to the environment
• Unlimited personal liability for stockholders is one of the disadvantages of the corporate form of business organization
• Code of Ethics, and code of morality are not a type of business code
• A partnership form of business organization is a common form of organization for service-type businesses
• Business code of conduct


  A set of rules business' values, beliefs and ethics as well as rules governing legal
• Sole proprietorships are not being taxed just like a corporation does
• Advantages of a sole proprietorship

  • Low organizational cost
  • Low license fees
  • Tax savings
• Importance of business organizations in socio-economic development

  • Stimulates the local economy
  • Helps stimulate socioeconomic development by providing jobs to people
  • Pays high taxes that help generate more infrastructure
  • Provides a lot of improvement in living standards, expanding existing markets and opening new ones
• In the Philippines, Cooperatives are regulated by the Cooperative Development Authority
• Cars are considered as tangible or physical items, not intangible or nonphysical items
• Ethical business leadership


  • Creates an environment where ethical behavior is encouraged
• Characteristics of an ethical leader

  • Achieve their goals by motivating employees through modeling ethical behavior, gentle persuasion, or positive reinforcement
  • Embody the company's values and principles in order to influence the actions of others
  • Is able to successfully guide or direct others toward the goals of the company
  • Does not use coercion or intimidation to direct employees' behavior or action
• The primary objective of good corporate governance is maximizing shareholder wealth
• Transparency and accountability is a key principle of good corporate governance
• One of the principles of transparency and accountability entails the disclosing financial information to shareholders
• An example of a good corporate governance practice is an independent board oversight
• One of the roles of the board of directors in corporate governance is ensuring compliance with laws and regulations
• Identifying and mitigating risks is a key element of effective risk management in corporate governance
• The purpose of an audit committee in corporate governance is reviewing financial statements for accuracy
• An independent director is characterized by being free from conflicts of interest
• The role of shareholders in good corporate governance is to hold management accountable