Business Ethics L3

• Code of ethics and business conduct - outlines the ethical principles that govern decisions and behavior at a company or organization.
• SPECIFIC PHILIPPINE EXAMPLES CODE OF ETHICS

  • Ayala Corporation
  • Code of Business Conduct and Ethics
• has a profound influence on all aspects of human behavior. Its impact may be subtle or pronounced, direct or oblique, or enduring or ephemeral

  Coporate Culture
• it is said to be continuation naturae a continuation of nature.

  language
• colore

  Culture comes from_, a word that is of agricultural origin: cultivation is not merely imitating:
• ethical normativity


  is found in man's essence; from this one gleans a certain immortality, that is, his spiritual essence (Polo, 1991).
• colore


  Culture comes from_, a word that is of agricultural origin: cultivation is not merely imitating:

• The Rise of Corporate Codes of Ethics

  1980s 1989 1990s
• 1980s


  Codes were legalistic and promoted virtues.
• 1989


  Codes showed concern over affirmative action.
• 1990s


  Codes defined ethical parameters of organizations.
• Defining Codes of Ethics

  • Articulate Standards
  • Clarify Norms
  • Guide Employees
  • Legal & Reputational
  • Evolve Over Time
  • Align with Mission
• Articulate Standards

  Codes articulate acceptable and unacceptable ethical behavior and standards.
• Clarify Norms


  Codes clarify the norms and values the organization seeks to uphold.
• Guide Employees


  Codes provide guidance for employee behavior and handling issues
• Early codes were legalistic and focused on corporate reputation.

  Legal & Reputational
• The understanding and purpose of codes has evolved over time.

  Evolve Over Time
• Codes articulate the values within which the company mission should be pursued

  Align with Mission
• Key Principles

  • Know what is right
  • Do what is right
  • Value what is right
• Ethical managers must understand what constitutes ethical behavior in their organization.

  Know what is right
• Ethical managers must consistently act in an ethical manner

  Do what is right
• Ethical managers must sincerely appreciate and esteem ethical conduct

  Value what is right
• Codes Can Moderate Behavior

  • Code effectiveness can be improved
  • Codes can articulate ethical parameters
  • Codes clarify norms and values
• Codes Define Responsible Conduct

  Codes articulate ethical parameters of the organization and what conduct is acceptable
• Codes contain open guidelines that describe desirable behaviors for employees.

  Codes Describe Desirable Behavior
• Codes Prohibit Unacceptable Conduct

  Codes contain closed guidelines that prohibit certain unacceptable behaviors.
• Codes Benchmark Integrity


  Codes benchmark the integrity expected of employees
• Codes promote the trustworthiness expected from all employees.

  Codes Promote Trustworthiness
• Ayala code ofethics


  focuses on integrity, long term vision, empowering leadership, and commitment to national development.
• Core values

  • Integrity
  • Long term vision
  • Empowering leadership
  • Commitment to national development
• Ayala promotes ethical behavior among employees.

  Integrity
• Long term vision


  Ayala takes a long-term vision approach to business strategy.
• Ayala empowers employees through training and development.

  Empowering leadership
• Ayala contributes to the Philippines’ economic growth.

  Commitment to national development
• Employees disclose transactions


  Employees must disclose any business or family transactions annually to avoid potential conflicts of interest.
• High Standards

  Ayala executives strive to maintain exceptional standards of conduct guided by the company's policies and procedures.
• High Standards

  • Ethical conduct
  • Primacy of the person
  • Fair dealings
  • Employee discussion
• Understanding Cultural Impact

  • Subtle Influence
  • Enduring Impact
  • Direct Force
  • Ephemeral Nature
• cluding communications, values, education, and social structure - has special relevance. A positive corporate culture can drive employee engagement, innovation, and growth

  Culture and Business