governance

• Ethics


  Set of moral principles or values that govern the actions & decisions of an individual or group
• 10 Characteristics and Values Associated with Ethical Behavior

  • Integrity
  • Honesty
  • Trustworthiness and Promise Keeping
  • Loyalty (Fidelity) and Confidentiality
  • Fairness and Openness
  • Caring for Others
  • Respect for Others
  • Responsible Citizenship
  • Pursuit of Excellence
  • Accountability
• Integrity


  Principled, honorable, upright, courageous & act on convictions firm and wholeness, hindi nagbabago
• Honesty


  Do not cheat, truthful, sincere, do not steal or lie, straightforward
• Trustworthiness and Promise Keeping


  Worthy of trust, keep promises and full commitments, do not interpret agreements in an unreasonably technical way
• Loyalty (Fidelity) and Confidentiality


  Faithful and loyal to anyone, do not use or disclose info learned in confidence
• Fairness and Openness


  Fair and openminded, willing to admit error, commitment to justice, equal treatment, acceptance of diversity
• Caring for Others


  Caring, kind, compassionate, giving, willing to serve others, avoid harming others
• Respect for Others


  Respect for human dignity, privacy, & the right to self-determination
• Responsible Citizenship


  Obey laws, social consciousness, public service, exercise all democratic rights
• Pursuit of Excellence


  Pursue excellence: responsible, diligent, reliable, industrious & committed, develop & maintain a high degree of competence
• Accountability


  Accountable, accepting responsibility for decisions, Foreseeable Consequences of actions and inactions, setting an example for others
• Ethical behavior is necessary for a society to function in an orderly manner, it is the glue that holds a society together
• 2 Primary Reasons Why People Act Unethically

  • Person's ethical standards are different
  • A person chooses to act selfishly
• 3 Categories of Ethical Principles

  • Principles of Personal Ethics
  • Principles of Professional Ethics
  • Principles of Business Ethics
• Principles of Personal Ethics


  • Basic justice, Fairness
  • Respect for the rights
  • Concern for the rights
  • Concern for the well-being on welfare of others
  • Benevolence, and trustworthiness, honesty
• Principles of Professional Ethics

  • Compliance with the law
  • Integrity, in partiality objectivity
  • Professional competence
  • Confidentiality
  • Professional behavior
  • Avoidance of potential or apparent conflict of interest
• Principles of Business Ethics

  • Fair competition
  • Global as well as domestic justice
  • Social Responsibility
  • Concern for the environment
• The Need for Professional Ethics - The Most Important Characteristics

  • Responsibility to serve the public
  • Complex body of knowledge
  • Standards of admission to the profession
  • Need for public confidence
• 7 Specific Principles of Professional Conduct


  • Service to others
  • Integrity & Objectivity
  • Professional Competence
  • Solidarity & Teamwork
  • Social & Civic Responsibility
  • Global Competitiveness
  • Equality of All Professions
• Business Ethics


  Standard of moral conduct, behavior & judgment in the business, making moral and right decisions in providing products & services, area of corporate responsibility where businesses are legally bound and socially obligated to conduct business ethically, personal values and standards engaging in business
• Main Purpose of Business Ethics

  To help businesses & would-be businesses to determine what business practices are right and wrong
• Special Purposes of Business Ethics

  • Make businessmen realize that they cannot employ double standards
  • Show common practices, whether it is right or wrong
  • Serve as a standard or ideal upon which business conduct is based
• Scope and Impact of Business Ethics


  Cover all conduct, behavior & judgment in business, from the slightest deviation from what is right to illegal and dishonest acts that are punishable by law
• Impacts of Business Ethics

  • Economic Impact
  • Social Impact
  • Environmental Impact
• Impact on Business Managers

  • Acknowledge his/her role, and serve the business and the community
  • Avoid all abuse of executive power for personal gain, advantage or prestige
  • Reveal the facts to his superior when it comes to personal interests
  • Hands-on, treat them Fairly, and actively concerned with the difficulties
  • Communicatable, providers of need, reachable and treatable
  • Fully evaluate the org. when making financial decisions
  • Separate the personal and professional issues, be professional
• Deceptive Packaging


  Exaggerated sizes and shapes of products to give a false impression of their contents, examples include slack-fill packaging where containers are filled only up to 85% to 95% of their capacity
• Misbranding


  False statements on product labels or containers similar to well-known products to deceive customers about product quality or quantity
• False Advertising


  Misleading advertising that can lead to exaggeration of product virtues or praise for non-existent virtues, examples include exaggerated product reliability or quality, claims of being the "fastest selling brand" or "product of the year," and fictitious or obsolete testimonials
• Adulteration


  Debasing a genuine commodity by imitating or counterfeiting it, adding something to increase its bulk or volume, substituting an inferior product for a superior one for profit, violates the standard for fair service, offering better service than the competitor
• Weight Understatement


  Tampered weighing scale mechanism or unobtrusive attachment, sellers use two sets of scales, one with the correct weight and another with more weight, used in selling products where prices depend on weight
• Measurement Understatement


  Shorter or smaller measuring stick or standard than the real length or volume, used in selling products where the price depends on its length
• Quantity Understatement or Short Numbering

  Giving less than the quantity asked for or paid for, common in situations where product shape or packaging makes counting difficult, example: customers may receive less quantity than what they are entitled to when buying items sold by the box or package
• Indirect Misrepresentation


  Characterized by omitting adverse or unfavorable information about the product or service, common practices include caveat emptor, deliberate withholding of information, and business ignorance, caveat emptor is unethical as a seller is a witness for the goods he is selling, deliberate withholding of significant information in business transactions is unethical, business ignorance is considered passive deception as it hinders customers from making informed decisions
• Over-Persuasion


  Persuasion involves appealing to a customer's emotions to encourage purchase, it's legitimate if done in the buyer's interest, but over-persuasion without considering the buyer's interest is unethical, common examples include urging a customer to satisfy a low-priority need, exploiting intense emotional agitation, or convincing a person to buy unnecessary items
• Unethical Practices of Corporate Management

  • Unethical Practices of the Board of Directors
  • Unethical Practices of Executive Officers and Lower-Level Managers
• Unethical Practices of the Board of Directors

  • Plain Graft
  • Authorizing higher-than-normal purchases
  • Interlocking Directorship
  • Insider Trading
  • Negligence of Duty
• Unethical Practices of Executive Officers and Lower-Level Managers

  • Claiming vacation trips as business trips
  • Having Employees do work unrelated to the business
  • Loose or ineffective controls
  • Unfair Labor Practices in the Labor Code
  • Making False claims about losses to avoid legal compensation and benefits
  • Making employees sign documents Misrepresentation of employees' entitlements
  • Sexual harassment in work, education, or training environments
• Some Unethical Practices of Employees

  • Conflict of Interest
  • Dishonesty
• Corruption


  Misuse of private and public office for personal gain, includes acts of bribery, embezzlement, nepotism, kickbacks, and state capture, often reinforced by illegal practices like bid rigging, fraud, money laundering, and extortion