ETHICS

• Responsibility


  • In the workplace, it refers to the obligation to perform a specific function assigned to a job
  • It can be shared
  • May refer to being in-charge, being the owner of a task or event
  • It can also be before and/or after a task
  • It doesn't necessarily owe an explanation
• Accountability


  • It is an obligation to take responsibility for the tasks assigned and at the same time being answerable for results of the actions
  • It can't be shared
  • Being accountable not only means being responsible for something but also ultimately being answerable for your actions
  • It is something you hold as a person to only after a task is done or not done
  • It is answerability, blameworthiness, liability and expectation of accounts giving
  • It owes explanation
• The main difference between responsibility and accountability is that responsibility can be shared while accountability cannot. Being accountable not only means being responsible for something but also ultimately being answerable for your actions.
• Accountability is something you hold a person to only after a task is done or not done.
• Stakeholders


  • Any person, organization, social group or society at large that has interest which can affect or be affected by a business
  • Internal stakeholders - are directly involved in company operations
  • External stakeholders - are not directly involved in company operations but are affected by the activities and results of the business
• Responsibilities and Accountabilities of Entrepreneurs to different stakeholders

  • Employees
  • Government
  • Creditors
  • Suppliers
  • Consumers / Customers
  • General Public
  • Environment
• Responsibilities to Employees

  • Pay Wages and Taxes
  • Create and Maintain a Safe Workplace
  • Facilitate Worker's Compensation Insurance
  • Enforce Anti-Discrimination Law
  • Respect Human Rights
  • Support Career Development
  • Train and Educate Employees
  • Manage Performance
  • Give Rewards and Benefits
• Responsibilities to Government

  • Observe Laws, Rules and Regulations
  • Pay Taxes
  • Follow Environmental Regulations
  • Abide by Labor Laws
  • Avoid Restrictive Trade Practices
  • Disclose Financial Statements
  • Avoid Corruption
  • Assist in Implementing Socio-Economic Policies
  • Help Earn Foreign Exchange
  • Advise the Government
  • Contribute to Government Treasury
  • Contribute to Political Stability
• Responsibilities to Creditors / Shareholders

  • Give Correct Information
  • Provide Fair Return on Investment
  • Strengthen Share Prices
• Responsibilities to Suppliers

  • Practice Fair Pricing and Licensing
  • Avoid Coercion and Litigation
  • Maintain Stability and Confidentiality
  • Pay on Time
  • Select Suppliers with Discernment
• Responsibilities to Consumers / Customers

  • Ensure Quality of Products and Services
  • Ensure Consumer's Health and Safety
  • Provide Free Training
  • Be Fair with Prices
  • Be Honest in Advertising and Marketing
  • Be Honest in Dealings
  • Attend to Complaints
  • Service Even After Sales
  • Respect Customers Time
  • Treat Customer's Well
• Responsibilities to General Public

  • Be Fiscally Responsible
  • Consider Public Input
  • Take Care of the Community
• Responsibilities to Environment


  • Comply with Environmental Legislation
  • Dispose Waste Properly
  • Recycle
  • Conserve and Protect Biodiversity
  • Prevent and Remedy Damages
  • Report an Incident
• Ethical issues in business

  • Defined as instances in which a moral dilemma arises and must be resolved within an organization
  • A problem or situation that requires a person organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical)
• Strategies for Prevention of Sexual Harassment

  • Implement a clear sexual harassment policy
  • Train employees
  • Train supervisors and managers
• Legal Penalties of Republic Act 7877

  • Imprisonment of not less than one (1) month but not more than six (6) months
  • Fine of not less than Ten Thousand Pesos (P10,000) but not more than Twenty Thousand Pesos (P20,000)
• Just Wage


  • The price that workers receive for their labor in the form of salaries, bonuses, royalties, commissions, and fringe benefits, like paid vacations, health insurance, and pensions
  • The amount required to sustain a frugal and decent worker plus his family
• Principles necessary for implementation of the just wage

  • Principle of Need
  • Principle of Equity
  • Principle of Economic Order
• Just Wage Determination / Salary Structure

  • External market factors
  • Laws and regulation
  • Cost of living
  • Existing industry rate
  • Organizational factors
  • Job Factors
  • Individual performances
• In 1989 Republic Act No. 6727 Wage Rationalization Act was signed. It formed the National Wages and Productivity Commission (NWPC) and the regional tripartite wages and productivity boards.
• Minimum Wage


  A national floor level set by the government
• Living Wage


  What workers need to give their families decent standards of living
• Issue about Living Wage is increasing worldwide due to the following reasons:
• Reasons for increasing consciousness about living wage

  • The increasing trend of "the working poor"
  • The increasing gap between national minimum wages and cost of living
  • The rising consciousness and worry of consumers about working conditions
  • The sustained development of international standards for business and ethics
• Minimum wage rates fail workers who are at lowest end of the pay scale because without a living wage workers may be compelled to:
• Gifts


  Something worth given with no anticipation of return
• Bribe


  The same thing given in the expectation to influence the recipient's conduct
• Gifts of money or other items of worth that are otherwise available to everyone on an equivalent basis, and not for dishonest purposes, is not bribery
• Offering a discount or a refund to all purchasers is a legal rebate and is not bribery
• Morality of Accepting Gifts


  • Conflict of interest
  • Gift's value
  • Gift's purpose
  • Gift or entertainment
  • A circumstance when the gift is given
  • Power to bestow favors in return for gift
  • Industry accepted practice
  • Organization's policy
  • Laws
• Conflict of interest


  (in the organizational context) happens when someone acts in a way that is advantageous to himself at the expense of his employer
• Conflicts of Interest


  • An alumni relations director must choose between competing bids for an affinity program
  • A key donor whose business is challenging for an institutional contract implies that he will not complete his multi-year pledge if he is not given the contract
  • An alumnus calls to inquire how he can post a job for a new engineering graduate, and the alumni officer recommends that his son might be just right for the position
  • A local tobacco firm promises funds to secure naming rights of a new stadium on a smoke-free campus
  • A legislator with influence over the institution's budget allocation seeks a government relation director's assistance in getting his daughter admitted into a selective program from which she has been firstly rejected
• How to Prevent Conflicts of Interest

  • Avoid being biased by an interest that may interfere in the ability to serve others
  • Avoid obtaining interests that may bias ones judgment
  • Avoid conflicting roles
  • Being open to all information
  • Not playing favoritisms
  • Calling for collective decisions
• Abuse of power


  The application of one's official position for personal benefit
• Abuse of Power


  • Taking advantage of someone
  • Obtaining access to information that must not be available to the public
  • Controlling somebody with the capacity to penalize them if they do not conform
• Negative Effects of Abuse of Power

  • Employees felt a significant amount of stress at work which can last longer
  • Employees suffered from mental distress which can affect their focus at work
  • Employees go through the experience of lack of self-esteem and decreased productivity
• Ways to Prevent Abuse of Power

  • Make the tough calls
  • Steer clear of the power trip
  • Back up words with action
  • Take the job seriously
  • Willingly share the power
• Labor Strike

  The last resort of a trade union, when negotiations have reached an impasse, a strike may be the only bargaining tool left for employees
• Reasons for Workers to do Strikes

  • Higher compensation
  • Improve the workplace
  • Shorten work days
  • Stop their wages from going down
  • More benefits
  • Unfairness by the company
• Criteria to Consider for Strike

  • There must be a just cause, a legitimate reason to strike
  • There should be proper authorization
  • Strikes should be a last resort
  • Strikes should be nonviolent, non-coercive, and nondestructive