BUSINESS ETHICS LAS q3-q4
BUSINESS ETHICS LAS q3-q4
BUSINESS ETHICS
AND SOCIAL
RESPONSIBILITY
Third Quarter
A business is an active process which is an integral part of human society. It is an organization where economic resources or
inputs, such as materials and services, are brought together and distributed to deliver or to give consumers goods, products, or outputs.
It involves significant operations such as buying, assembling, distributing, advertising, selling, and accounting.
Most businesses aim to earn profit. The term profit refers to the difference between the amount received and the amount
spent on something purchased, produced, or manufactured. The fundamental reason for examining business activities from a moral
point of view is that business organizations should, in principle, help promote the common good and protect the rights and interests of
individuals.
Three types of business organizations are generally operated for profit - service, merchandising, and manufacturing
businesses.
Merchandising businesses sell to customers products they buy from other businesses.
Examples: sari-sari stores, bookstores, department stores, groceries, supermarkets, etc.
Manufacturing businesses turn basic inputs into products which are sold to consumers.
Examples: shoe manufacturing, baked goods, candle manufacturing, cosmetics manufacturing, wine production, etc.
2. Partnership- It is a business relationship between two or more people. It refers to an arrangement where individuals share a
business venture's profits and liabilities. The partners give feedback on how to use the capital and other critical strategic decisions that
may provide different perspectives.
ADVANTAGES:
a. Partnership business lacks formality as compared with managing a limited company or corporation.
b. It is easy to start. The partnership may be created either verbally or in writing.
c. You share the burden. You have companion and support.
d. Every partner would add his/her own expertise, skills, experience, and connections to the business, thus giving it a greater chance of
success.
e. There is better decision-making. Two heads are better than one.
f. There is privacy. The business deals may be kept confidential by the partners.
g. The partners own and control the business.
h. The more partners there are, the more funds are available in the company, which can be used for possible expansion. Its borrowing
capacity is also likely to be higher.
i. There is an easy access to profits in a business partnership. The partners just have to divide the profits.
DISADVANTAGES:
a. The business does not have any independent legal status.
b. The business has no separate legal personality, so the partners are personally liable for the debts and losses incurred.
c. The partnership business often seems to lack the sense of prestige more closely associated with a corporation.
d. A partnership will often find it more difficult to raise money than a corporation.
e. There is a potential of differences and conflicts.
f. Decision-making can be slower because there is a need for consultation among partners.
g. The profit must be shared among the partners.
h. It may require a lot of time and energy thus may affect life-work balance.
i. The profits earned by the partnership will be translated to income on the individual partners. Thus, they are subject to income tax in
the financial year in which they are made.
j. There are limits on business development like unlimited liability, lack of funding opportunities, and a lack of commercial status, etc.
3. Corporation. It is an entity created by law that is independent and distinct from its owners and relies on the corporate laws of the
state in which it is incorporated to continue its existence. Corporations have an advantage in generating money for the company. It can
raise funds by selling shares of stocks. It files taxes separately from its owners.
ADVANTAGES:
a. The liability of the shareholders of a corporation is limited up to the amount of their investments.
b. A publicly held corporation may sell shares or issue bonds to raise substantial amounts.
c. It is easy for a shareholder to sell shares in a corporation.
d. A corporation’s life has no limit, ownership can pass through many generations.
DISADVANTAGES:
a. The corporation pays taxes on its income depending on its type and the shareholders pay dividend taxes, so income gets taxed twice.
b. The management team of a corporation can operate the business without any real oversight from the owners.
EXERCISES/ACTIVITIES:
1. You are all aware of online selling, right? What/Who are the most popular online selling platforms/individuals?
Do you think they earn big amount of money from online transactions?
Answer:
__________________________________________________________________________________________________
2. Have you experienced being a seller? What item/product/service did you sell? Can you still recall that
experience?
Answer:
__________________________________________________________________________________________________
3. Why do people engage in business? You may explain your answer by providing an example.
__________________________________________________________________
C. Directions: Share your insights on the situation below. Write your answers on a separate sheet of paper.
1. A rich relative of yours tells you that he/she is willing to lend you one million pesos without any interest and ask
you to start a business. What kind of enterprise do you prefer? Describe it briefly.
__________________________________________________________________________________________________
__________________________________________________________________________________________________
D. Directions: CREATE YOUR BUSINESS LOGO. Use a separate sheet of paper for your drawing.
Rubrics:
Creativity/aesthetic value 6 points
-Excellent - 6
-Very good - 5
-Good - 4
-Fair - 3
-Somewhat fair - 2
-Needs improvement - 1
Explicit/implied message of the logo 2 points
Relevance of the logo to the business 2 points
Total 10 points
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
To help the business organization get on the right track, there are three core principles that should be implemented in its
operation - fairness, accountability, and transparency.
FAIRNESS
This is the standard of judging which is exempted from bias or prejudice. When someone displays fairness in making
decision, he/she pleases all involved parties and offers a solution that is beneficial to everyone. In business context, fairness means
balancing the interests involved in all decision-making including those related to hiring, firing, and the compensation and reward
system. Employees think of their organizations as just when the rewards and the way they are distributed are fair.
Fairness is giving to a person what is due to him/her. It has something to do with justice because the employer checks
whether the members have the benefits and burdens distributed evenly to them.
Examples of fairness:
1. A boss listening to both sides of the story before judging who is right and who is wrong.
2. An employer giving 13th month pay to all his/her employees.
3. A person paying the right price for a product purchased or for a service received.
ACCOUNTABILITY
The most important aspect of preventing and detecting corruption is the sound accountability structures. A civil society
organization without proper systems of accountability is fragile and open to rumors of mismanagement and abuse of authority. Worst
of all, lacking it will prevent the organization from enjoying full respect and legitimacy in the eyes of its stakeholders, including those
bearers of
duties that it intends to advocate with.
Accountability is the explication and justification process. It is about testing, forming a judgment, and taking an action if
necessary. It also comes with responsibilities. Holding people to account for those actions which they are responsible for is fair.
Accountability is therefore an obligation to demonstrate that work has been carried out in accordance with agreed rules and
standards, or to report on performance results fairly and accurately in relation to mandated roles and/or plans.
Examples of accountability:
1. A cashier admits he/she lost the company’s collection and it is his/her mistake.
2. An engineer who is assigned on a project is the one to be blamed if the project did not meet the deadlines.
3. Employee A recommended his cousin to be their company janitor, but the latter stole the cellular phone of their secretary.
Therefore, Employee A may be blamed for recommending his/her cousin and should pay or replace the lost cellphone.
TRANSPARENCY
Transparency, at the individual level, considers intrinsic or ethical salience as an important feature of the relational dimension
of a person. It is described as a personal quality which is necessary to develop unity between and among individuals. A transparent
approach makes a person more honest and sincere in his/her relationships, in communicating his/her points of view, and in working
actively to find shared meanings and goals.
Organizationally speaking, the instrumental salience of transparency is identified as an important mechanism for ensuring
social responsibility. For example, adequate disclosure is required to inform donors of how an organization uses its money.
Transparency helps people to consider how the actions of social organizations such as multinational agencies and non-
governmental groups offer meaningful support to civil society and whether funding is being properly spent.
More examples of transparency:
1. Reporting accurately the company’s financial situation and risks to investors
2. Holding and selecting bids according to an open pre-defined process
3. Having an open process of decision-making such as in hiring additional employees
EXERCISES/ACTIVITIES:
A. Directions: Construct a short paragraph for each number below beginning with the given phrase. Write your answers on a
separate sheet of paper.
1. I could show fairness by __________________________________________________
2. I could show accountability by ____________________________________________
3. I could show transparency by _____________________________________________
Rubrics:
Writing mechanics/Content 3 pts.
Grammar 2 pts.
Total 5 pts. for each number
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
Definition of Ethics
The term Ethics is derived from the Greek word ethos which means “characteristic way of thinking”. Ethics, as a science,
does not only evaluate the morality of our human conduct but also provides us with a common understanding of the universal,
objective, and irreversible moral principles that should govern our human behavior and guide our moral decisions (Roa, 2011).
Ethics are moral principles that guide the conduct of the individual (Racelis, 2017). These are rules of behavior based on
ideas about what is morally good and bad (Merriam-Webster Dictionary).
A. Directions: What would you do under the following situations below. Write your answers on a separate sheet of paper.
1. Being an advertising artist, you were instructed by the manager to make two layouts, but you will only receive the price for
one.
2. Your company would have to donate P 1,000,000 to charity, but you witnessed that the accountant only gave P 700,000
instead of P 1,000,000.
3. Being one of the food processors in a manufacturing company, you know that the ingredients listed on the label of your
product are not completely true.
B. Directions: Read and understand the situation. Write your answers on a separate sheet of paper.
Chona opened an online food service for an additional income. She hired one female helper in the kitchen and two delivery boys.
The business was doing very good for a month. But one day, she got a call from an online client complaining that the food
delivered to her was already spoiled and could not be eaten. He/she was demanding for a refund.
C. Directions: Give a situation where ethics could be applied. Choose only one from the following places. Write your answers in
three to five sentences on a separate sheet of paper.
1. At the airport
2. In the marketplace
3. In a public office
D. Directions: Complete the given phrases below for at least three to five sentences. Write your answers on a separate sheet of paper.
A secret to success lies in recognizing the value of ethics in industry. The customers, management, and staff value honest and
ethical practices. Hence, business ethics is vital because it helps maintain a great reputation, helps to avoid significant financial and
legal issues, and ultimately benefits all involved. Therefore, it is highly suggested that each company formulates its own Code of
Ethics to be used as a guide in its business operation.
Saucer and Sims (2013) offer recommendations for developing Code of Ethics in business organizations:
1. Adopt code of ethics (use the Code of Ethics of other companies as a reference and modify according to the needs of the company).
2. Offer training on ethics (for management and employees).
3. Hire and foster individuals with ethical value.
4. Deal with immoral activities. Employees must know the implications and effects of making unethical actions, and should be ready
to accept consequences.
5. Take constructive measures. For example, give rewards to employees who admit their mistakes. If the company is conscientious
and smart, it can encourage warehouse workers to take responsibility for their mistakes and even praise them for coming forward,
apologizing and ensuring that a faulty product is not purchased by the customer. At first it seems counter-intuitive to reward an
employee for a mistake, but in the end, it provides everyone with the best result.
6. Carry out a social audit. Conduct survey to employees once in a while.
7. Cover all whistleblowers. These people detect illegal activities within organizations and disclose the actions to the authority or
managers. A whistleblower who works sincerely, correctly reporting an issue, should be praised for his/her courage and integrity, as
opposed to being disciplined and ostracized. If an individual blasts the whistle, it is possible that the company itself has failed
internally to motivate and improve fair and ethical conversations.
8. Empower the defenders of integrity. Support those who work with honesty and integrity.
9. Ensure executive commitment. The anonymity of those who report the problems should be practiced.
10. Communicate the principles of conduct within the company and across the industry.
11. Assign an officer who is clearly responsible for the enforcement of ethical standards. He/she can be consulted for advice.
12. Establish a procedure for violations of ethical standards, and fully review any offenses reported.
13. Ensure high perseverance by the company's board of trustees.
14. Lead by example, above everything else.
It should be remembered that when faced with an ethical situation, the outcome of the decision-making process should be
considered. One way to tackle ethical situations is by using the four-way test to evaluate decisions.
This four-way test consists of asking four questions:
1. Is my decision truthful?
2. Is my decision fair to all who are affected by it?
3. Will this build the organization's goodwill?
4. Will the decision benefit all parties with vested interest in the outcome?
1. Vision means something that you imagine; a picture that you see in your mind (Merriam-Webster Dictionary). The vision
statement helps to ensure the alignment of the decisions to the company goals.
Example: To make innovations that everyone could access and adapt depending on their needs
3. Mission- a specific task with which a person or a group is charged (Merriam-Webster Dictionary). The mission statement
clearly and effectively guides the business or the organization in its decision-making.
Example: To inspire all the young athletes of the country… tell them to dream and go for it!
4. Principles- moral rules or beliefs that help you know what is right and wrong and that influence your actions (Merriam-
Webster Dictionary).
Examples:
Customers have to be respected.
Make sure to deliver quality product.
EXERCISES/ACTIVITIES:
A. Directions: Read the situation and formulate a Code of Ethics for the business. Write your
answers on a separate sheet of paper.
Situation:
You just started an online business selling bags and shoes made in Laguna. You employed
one bookkeeper, one clerk, two utilitymen, and four (4) delivery personnel.
Follow the format given below:
Rubrics:
Relevance to the business 6 pts.
(one point for each - vision, values, mission, and three principles)
Mechanics 4 pts.
(one point for each – vision, values, mission, and principles) ________
Total 10 points
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
3. Aristotle –
“All or Nothing” (384-322 BCE) is a towering figure in ancient Greek philosophy, contributing to logic, metaphysics,
mathematics, physics, biology, ethics, politics, agriculture, medicine, dance, and theater. These are some of Aristotle’s
philosophical ideas:
“Happiness is the meaning and the purpose of life, the whole aim, and end of human existence.”
“Let people seek fulfillment.”
The word happiness in ethics is a translation of the Greek term “eudaimonia” which connotes success and fulfillment. For
Aristotle, this happiness is our highest goal. In relation to business, Aristotle concludes that the role of the leader is to
create an environment in which all members of an organization can realize their potential.
ACTIVITY #1: Directions: Complete the sentences below and write your answers on a separate sheet of
paper.
Rubrics:
Correctness of answer 4 points
Clarity of explanation 4 points
Mechanics 2 points
TOTAL 10 points for each number
ACTIVITY #2: Directions: Cite some life experiences where you can relate one of the discussed philosophies.
Write your answers in paragraph form on a separate sheet of paper.
Rubrics:
Unity of ideas 4 points
Clarity of explanation 4 points
Mechanics 2 points
TOTAL 10 points
ACTIVITY #3: Directions: Draw things, people, or anything that defines your own “happiness”. Below the
drawing, write a short description or explanation about it. Use a separate sheet of bond paper.
Rubrics:
Unity of ideas 4 points
Clarity of explanation 4 points
Mechanics 2 points
TOTAL 10 points
ACTIVITY #4: Directions: Based on your life’s experiences, cite things/principles you consider in your
decision-making in five aspects below. Write your answers on a separate sheet of paper.
1. Love _____
2. Education _____
3. Family _____
4. Friends _____
5. Money _____
Rubrics:
Unity of ideas 4 points
Clarity of explanation 4 points
Mechanics 2 points
TOTAL 10 points
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
The unseen force underlying our actions is our belief system. Throughout our lives, human beings accumulate
thousands of beliefs on all facets of life. We obtain them from things other people tell us, things we hear on the news,
things we read, or any other external influences we are subjected to. All of these beliefs interact with each other, affect
each other, and create a system together.
Along with other influences such as our personality, genetic set-up, and behaviors, our belief system, such as
religion, is one of the greatest forces influencing every decision we make.
Religion highly affects our lives, whether personal or not. Some of the world’s major religions are Christianity,
Judaism, Islam, Buddhism, and Hinduism. Each has its own organized system of beliefs, ceremonies, and worship, and
each one offers prescriptions for a positive effort in both life and business.
1. CHRISTIANITY
The Christian religion follows the Hebrew Bible by taking a positive view of physical and human creation and by
seeing God as deeply concerned with the ethical behavior of human creatures towards one another. It also teaches that in
the persona of Jesus of Nazareth, Christ entered history to redeem humanity from the self-inflicted wounds of sin and to
create a new age in which humanity will come to live God's own life of love, peace, unity and justice. The Old and the
New Testaments serve as the foundation of this religion.
In Christianity, human dignity and concern for people are crucial. This religion also emphasizes a sense of justice in
business such as strict adherence to contracts, compliance with regulations, and working for the benefit of the common
good. Christians ought to focus on how business impacts individuals, the workers in particular. They should be well-paid
and they should find their work meaningful and inspiring.
A trading Christian does not try to win another's products or services for less than it is worth. One should not want
to get a decent deal for his own wares by using extortion. If a person buys from a poor seller, that buyer must exercise
charity and justice. He/she must pay the full price that the goods are worth. If friends and relatives are not interested in
what a Christian vendor sells, the latter should not break off connection with them when they decided to choose
differently.
Christians should be transparent and honest with their dealings, products, and services. They should not push people
to buy goods or services because it does not reflect the heart of the Father, but that of mammon’s (according to Webster
Dictionary, mammon means material wealth or possessions especially as having a debasing influence).
2. JUDAISM
Jews believe there is one God, who not only created the world, but who every Jew should have an intimate and
interpersonal relationship with. They believe that God works continuously in the world and affects all that people do.
Further, there is a covenant relationship between God and the Jews in exchange for the many good deeds God has done
for the Jewish people and continues to do.
Judaism, which for its written law relies on the Torah, has greatly influenced marketing and business ideology.
Jewish culture, values and ideas, including the modern market, have penetrated many aspects of modern life. Some
important points include market honesty, fair pricing, and business relationships.
Honesty on the market. It is illegal for traders to falsify the weight and measurement of the goods or products.
Fair pricing. There should be good value for money. You shall not cheat each other when you sell something to
your neighbor or buy something from him or her. Likewise, if a person is ignorant of the true worth of an item and wants
to sell it, the buyer should not take advantage of the confusion and underpay the seller. The Talmud (comprehensive
written version of oral laws of the Jews) cares much about price control.
Business relations. Employers are obligated to pay workers on schedule. One of the guiding principles for business
ethics highlighted in the Jewish tradition is the legitimacy of business activity and profit, conducted within a framework of
religious and ethical norms.
3. ISLAM
Muslims believe in the Oneness of God—- that all things are created by God and that He is all-powerful and all-
knowing. They further believe that God has no offspring, sex, class, body, and He is not affected by human life's
characteristics.
For Islam, the source of rules is the Qur'an. Islamic teachings place great emphasis on respect for ethical and moral
codes in human behavior. Islamic principles prevent abusing people through putting restrictions on misleading
advertisements. Under Islamic law, if a seller sells an item by making false statements, the buyer shall have the right to
cancel the transactions.
Additionally, according to Hayes (1998), the following principles are expected among Muslim businessmen:
a. Contracts must be fair to both or all parties.
b. Speculation, such as gambling, is not allowed. If the money comes from the gambling industry, one will not be
allowed to invest in the Islamic Mutual Fund.
c. Interest is prohibited. That is probably the most common thing that is identified with Islamic finance. One moral
practice is that one is not allowed to charge or take interest.
d. When a business is in trouble, compassion is required. In every country that has Islamic traditions in its legal
system, when anyone is in bankruptcy or is suffering financial reversals, one should not put pressure on them. Because
when someone is down, it is not the right thing to do. When they are down, one does not kick them.
Muslims also believe that business should be conducted in accordance with the rules of nature which God governs.
4. BUDDHISM
Founded on the teachings of Siddhartha Gautama, who is called “Buddha” or “the enlightened one”, is Buddhism.
From the beginning, the basis of Buddhist practice was meditation and the observance of moral precepts. The five
fundamental moral precepts practiced by members of the monastic orders and the laity are: refraining from taking
property, behaving unchastely, speaking wrongly, stealing, and drinking intoxicants.
In business, Buddhists are guided by the following principles:
a. The goals should be defined.
The clearer the goal is, the easier it is to be defined. Is it about gain? Is it giving satisfaction to your customers?
b. The principle of cause and effect should be followed.
We need to use intuition in the case of a business proposal to work out the factors that would take us to our ultimate
aim. The process resembles reverse engineering. We begin to trace back the logical sequence of acts which would
contribute to a given goal. This framework helps identify the steps needed to accomplish the aim and provides a clear
basis for a project roadmap.
c. Empathy and compassion for the customers have to be developed.
It is crucial to understand the challenge that our potential customers may encounter, and to have an empathic
approach towards it. We need to recognize and always keep in mind the problem that our target customers have in their
life and try to solve this issue in the best possible way based on that understanding. Compassion is the basis for a
customer-first or a user-centered approach in business.
d. Be flexible, innovative, and mindful of impermanence.
Buddhist theory puts into practice another useful insight: everything is constantly changing—we ourselves, the
world, and all the people around us. It is very easy to get caught with an idea that seems logical and solid, but it often
becomes a trigger for narrow-minded thinking, stubbornness, and inflexibility in a rapidly changing reality.
e. Your team, yourself and the consumer have to be respected.
The Buddhist ethics is based on the non-violence principle. They know everyone deserves to be happy and does not
want to struggle. If we base our actions on that understanding and try not to harm others, we gain their respect and
confidence. It brings trust and understanding in the team if we respect our colleagues. We try to stop doing something
offensive behind or in front of people and make ourselves transparent.
The Buddhist business code and professional ethics are also closely tied to being environment-friendly. Buddhists
pursue the "right livelihood" and are usually against businesses that do not really care for the environment or harm
animals. Essentially, according to Buddhist teachings, the principles of ethics and morals are governed by examining a
certain action that must avoid any harm.
5. HINDUISM
Hindus believe in one true, formless, boundless, all-inclusive and eternal God called Brahman. He is not an
abstract concept but a real entity that everything in the universe (seen and unseen) encompasses.
Hinduism is not an organized religion, and its value system has no single, systematic approach to teaching nor do
Hindu s have a simple set of rules, like the Ten Commandments to follow. Whatever practices (local, regional, caste and
community-driven)—throughout the Hindu world influence the interpretation and practice of beliefs.
Hindus have a positive attitude towards business and wealth creation, yet wealth is not the ultimate goal. What is
more important are ethics (dharma), and salvation (moksha).
For business, prices and profits should be fair. Tax system should give reasonable rates, should be economical in its
implementation, and should not have adverse impact on economic growth. There must be high taxes on luxury goods.
Workers should receive fair and just wages, depending on their ability and productivity.
It is worth noting, overall, that every faith has its own biases. Nevertheless, each of them has the core concept that
faith would give rise to a commitment to maintain a desirable work climate. This is why our society cannot remove the
effect of religion on modern business. We should be mindful of disparities in beliefs among various cultures and accept
them. While there are global ethical standards, we must also show respect for each community's different values.
EXERCISES/ACTIVITIES:
ACTIVITY A: Directions: Read the situation below and answer the given questions on a separate sheet of paper.
1. One day, you and your female friend went to the market to buy washable face masks. The stall owner, who was wearing
hijab* approached the two of you. Your friend could not control her giggles while the Muhaajaba** was talking. As a
response, the stall owner got mad and shouted at you and your friend.
What are you going to tell the stall owner? (5 points)
____________________________________________________________________________________________________
What advice would you give to your friend? (5 points)
____________________________________________________________________________________________________
Rubrics:
Correctness of answer 3 pts.
Mechanics 2 pts.
Total 5 pts.
ACTIVITY B: Directions: Considering your religious affiliation, write at least two practices in business that you
follow as its active member. You may get your ideas from the background information to serve as
your guide. Write your answers on a separate sheet of paper. (two points each)
(My Religion)
ACTIVITY C: Directions: You have already learned the good practices of the different belief systems. This time, your
task is to choose one good business practice that you like best from each belief system. Write your answer
on a separate sheet of paper. (one point each)
Christianity: _____________________________________________________________________
Islam: ___________________________________________________________________________
Hinduism: _______________________________________________________________________
Judaism: ________________________________________________________________________
Buddhism: ______________________________________________________________________
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
Filipino value system is characterized as an effect of one's own culture by the way people live their lives. This refers to
the collection of values or the structure of values that majority of Filipinos have traditionally kept in their lives as important as:
common beliefs, moral principles, ethical standards, etiquette, and cultural and personal values that their society encouraged
them to have. Here are some Filipino values that we live by:
1. BAHALA NA
There is no exact English translation for Bahala Na. However, there are several interpretations for this. The first one is
that Bahala was derived from the word Bathala, who was worshipped by the Filipinos during the Pre-Spanish period. This
belief in putting life in the hands of God may be a symbol of how devout Filipinos can be. They just leave everything to God,
including their problems and their sufferings. They are fatalistic, putting their lives in the hands of fate.
On the other hand, according to Lagmay (1977, as cited in Pe-Pua et al., 2000), Bahala Na is determination and risk-taking. He
said that when Filipinos say “bahala na”, they are ready to face every difficult situation and are determined to achieve their
goals or objectives. When they mention those words, it is like they are getting courage or strength into their system, and they
will not surrender.
In business, you cannot just put its life in the hands of fate. Everything has to be carefully studied or planned;
otherwise, all of your efforts will go down the drain.
2. UTANG NA LOOB
Gratitude or utang na loob is typically embedded in the Filipino culture. One should not forget to consider the good
acts others may have done particularly in times of great need. Many times, this debt of appreciation is violated by others who
have served us good. With this system, people are forced to do something in exchange for favors that others did.
Business is affected by this so-called utang na loob especially if the businessman has faced ethical issues.
3. NINGAS-COGON
Ningas is a noun that means flame, burning, or fire, while cogon is a plant that can be quickly burnt with its presence.
Ningas cogon means the swift burning of cogon, which connotes the eagerness of the Filipinos just at the beginning, but then
rapidly lose interest shortly after it begins, or lack of follow-up.
Same thing could happen in business. The enthusiasm is there at the start of the venture but since it is not one’s inclination, then
he/she gradually loses his/her interest.
6. MAÑANA HABIT
The Spanish word mañana means tomorrow or the future. It is also known in English as procrastination and as mamaya
na in Filipino. It might just as well mean putting off something until another time. This habit has made Filipinos less efficient
and less energetic in doing the task.
In business, mañana habit could lead to less efficient workforce. It could also lead to losing customers in case one is into
delivery business. When he/she always postpones doing something, his/her loads of work could pile up and that could give
him/her (and his/her co-workers) too much stress.
7. DELICADEZA
Delicadeza is a Spanish term which when translated into English means daintiness. It is defined as acting in a manner
which is refined or being delicate in taste. Often, it may mean good decorum or absolute obedience to what is right, legal, or
ethical. Perhaps it can be better understood by saying walang delicadeza or makapal ang mukha (thick-faced) for those who
do not have it.
In business, it is best to do what is right, what is legal, and what is ethical. After all, goodwill attracts good vibes!
8. HIYA
Shame or hiya is a common Filipino value. This is a sense of social propriety and it conforms with established cultural
standards. Filipinos feel they ought to live up to agreed moral expectations and if they fail to do so, they add dishonor not just to
themselves, but also to their families. If anyone is publicly humiliated, insulted or fails to meet standards, they may feel
ashamed and they lose their self-esteem.
Shame or hiya also happens in business. For example, one is selling rice and other consumables. Now here comes
his/her close friend requesting for one sack of rice to be paid at the end of that month. On the due date, it is the seller who is
even ashamed to remind his/her close friend of the latter’s obligation.
9. PAKIKISAMA/PAKIKIPAGKAPWA-TAO
Another Filipino characteristic is loyalty, or pakikisama. That is a shared understanding of the other person's
personality and consciousness. It is treating others as equal, and with respect and integrity.
This is simply a realistic translation of the pakikipagkapwa-tao in industry since the aim is to deliver useful products and
services to others so that their standard of living would get better.
In business, for example, Pedro is a sole proprietor. His cousin approached him and was trying to borrow P5,000 for an
emergency reason. Because he had no personal cash that time, out of pakikisama, he got the amount of P5,000 from his business
collection and lent it to his cousin.
10. FAMILY ORIENTATION
Philippines is recognized as a family-centered country. The Filipinos consider their family as an important social
structure which they have to look after. They put premium on their family's safety and unity. The practice of nepotism is evident
(members of the same family employed in the same enterprise). It is the closeness of the Filipino families that makes them the
model of most business organizations.
However, in business, it is said that it is not advantageous to hire relatives because one cannot just easily fire them even
though he/she is dissatisfied with their work performance.
11. SUKI SYSTEM
Suki is a Tagalog term which means loyal customers. Here, there is a customer-supplier relationship that is built.
Normally, the supplier would give discounts, good quality products or service, or even “credit line” once the trust is earned.
12. BAYANIHAN/TEAM SPIRIT
The bayanihan is a Filipino term which originated from the word bayan meaning town or community. Later on,
bayanihan meant "being a bayan" and is being used to refer to a spirit of unity within a group, or individual cooperation and
joint efforts.
The adage "no man is an island" is even more true, and even critical in business world – where interactions and the
willingness (or unwillingness) to collaborate with others will make or break a business. It is in bayanihan where one's local
environment is a vital tool. And that it will help his/her people and his/her company get ahead by harnessing the strength of
his/her own people.
13. PALABRA DE HONOR
Palabra de Honor is a Spanish word meaning "Word of Honor". This is an individual's unwritten promise to someone
to do or not to do something.
Palabra de honor needs a sense of truthfulness and honesty in every Filipino. We have to respect our words by
upholding our promises, even without any legal document.
In business, for example, when one promised his/her employees of a salary increase after six months of working in
his/her enterprise, then he/she should really give them an increase when they have reached six months.
15. PAKIKIPAGSAPALARAN
Pakikipagsapalaran or being venturous is the ability of a person to take risks, even if they are prone to a potential loss.
For example, even without an experience in selling, one ventured into an online business this time of pandemic by just
following some ideas coming from his/her friends.
16. FRUGALITY/PAGTITIPID
This is known as economical management of resources, being careful in spending, and avoiding unnecessary
expenses.
For a small business, frugality is really important. One will save his/her money effectively by living frugally and by
managing his/her spending. When business starts to succeed, there is a tendency to overspend so it is an advantage if he/she
knows how to control his/her expenses.
EXERCISES/ACTIVITIES:
ACTIVITY #1: Directions: Read the situation below and answer each question in two to three sentences on a separate sheet of paper.
Pia, the proprietress of XYZ Enterprises, had to borrow extra capital from her friend, Bea, for her business expansion. Bea
willingly lent her friend the money with no interest. The business grew and had several branches that Pia had to hire more workers
and, she had even paid Bea in full! One day, Bea approached Pia and asked for a favor. Bea had cancer and she needed money for
medication. Pia declined and told Bea that all her money was in the business and that she came at a wrong time.
What kind of friend is Pia?
Answer: __________________________________________________________________________________________________
Rubrics:
Correctness of answer 2 points
Clarity of explanation 2 points
Mechanics 1 point
Total 5 points
ACTIVITY #2: Directions: You must have experienced bahala na, ningas-cogon, and mañana habit as a student. Recall what
happened or in what situation did you experience each of these. Write your answers on a separate sheet of paper.
Bahala Na
__________________________________________________________________________________
Ningas-cogon
__________________________________________________________________________________
Mañana Habit
__________________________________________________________________________________
Rubrics:
Clarity of explanation 3 points
Unity of ideas 1 point
Mechanics 1 point
Total 5 points
ACTIVITY #3: Directions: Complete the given phrases to form a good definition or description of the Filipino values that you have
learned. Write your answers on a separate sheet of paper.
Rubrics:
Correctness 3 points
Coherence of ideas 1 point
Mechanics 1 point
Total 5 points
ACTIVITY #4: Directions: COMPOSE A THREE-STANZA POEM using the ideas taken from our Filipino value system (a
comedic type is preferred). Your poem should not exceed three stanzas. Write your poem on a separate sheet of
paper.
5 4 3 2 1 5 - Very good
Scoring criteria 4 - Good
3 - Fair
Organization Ideas are logically arranged. 2 - Poor
Appropriate organizational pattern is observed.
Transitions are smooth.
1 - Very poor
As a business owner, you are probably aware of where your business could improve. Sometimes business owners want to
improve their business but are not sure how to begin. This is an overview of some key steps you can take to start improving your
business.
ASSESS YOUR SITUATION
Before you start making changes, it is a good idea to make sure you have a full understanding of the factors affecting your
business success. These may include your current business practices, market trends, or changes to the wider environment in which you
operate.
Tools that can help you assess your business' situation include:
• SWOT-analysis — helps you identify your business' strengths, weaknesses, opportunities, and threats.
• Benchmarking — measures your business’ performance against similar-sized businesses in your industry.
• Market research — investigates your business' market and industry to identify trends, changes, and customer or client
demands.
• Trend analysis — uses business data collected over time to identify consistent results or trends.
• Webinars (web-based seminars) — provide useful information to help develop your business skills.
Once you have written down your goals, you should prioritize them to decide which ones to focus on first. Some goals may
need to be more urgent than others. It is also important to recognize that some goals will need to be addressed with a long-term
strategy as you will not be able to meet them immediately because of resources, finances, or time.
IDENTIFY STRATEGIES FOR ACHIEVING YOUR GOALS
Review your goals and list the factors you think are creating your current circumstances. Think about what strategy you could
use to improve the situation. Depending on the goals you are trying to meet, you may want to think about using the services of a
business professional such as a professional trainer, contractor, or business adviser. Think realistically about what you can do yourself
and where you may benefit from some support.
When you have developed your plan, you might want to also update your overall business plan.
EXERCISES/ACTIVITIES:
ACTIVITY #1: Directions: Assuming that you are a proprietor of a car company, what are the strategies/ways to make your business
unique from other car companies? How can you be a S.M.A.R.T. proprietor? Write your answers on a separate sheet of paper.
____________________________________________________________________________________________________________
________________________________________________________________________________________
Rubrics:
Unity of ideas 2 points
Clarity of explanation 2 points
Mechanics 1 point
5 points
ACTIVITY #2: Directions: Complete the sentence below and write your answers on a separate sheet of paper.
I have learned that in order to improve business practices, the key steps are ______________________________________________
____________________________________________________________________________________________________________
_______________________________________________________________________________________.
Rubrics:
Unity of ideas 2 points
Clarity of explanation 2 points
Mechanics 1 point
5 points
ACTIVITY #3: Directions: Assuming that you are a seller in a famous e-commerce platform in the Philippines, think of at least one
way to improve your business guided by philosophies and Filipino belief system or values. Write your answers on a
separate sheet of paper.
____________________________________________________________________________________________________________
_______________________________________________________________________________________.
Rubrics:
Clarity of explanation 5 points
Unity of ideas 3 point
Mechanics 2 point
Total 10 points
ACTIVITY #4:Directions: Based on the steps/ways of improving business practices. Write ten (10) ways to improve business
practices in your own words on a separate sheet of paper.
1. _____________________________________________________________________
2. _____________________________________________________________________
3. _____________________________________________________________________
4. _____________________________________________________________________
5. _____________________________________________________________________
6. _____________________________________________________________________
7. _____________________________________________________________________
8. _____________________________________________________________________
9. _____________________________________________________________________
10. ____________________________________________________________________
Rubrics:
Clarity of explanation 5 points
Unity of ideas 3 points
Grammar/ spelling 2 points
10 points
ACTIVITY #5: Directions: Given a chance to be a businessman, make a business plan and strategy you may use to have a successful
business. Write your answers on a separate sheet of paper.
____________________________________________________________________________________________________________
_______________________________________________________________________________________.
Rubrics:
Unity of ideas 2 points
Clarity of explanation 2 points
Mechanics 1 point
5 points
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
CASE STUDY
The story of Mang Eugenio Ventura, an extra ordinary cab driver, went viral in the social media when a passenger
spread the good word about him not rejecting passengers (despite heavy traffic in Metro Manila) and declining tips. Apart
of being honest, he is the jolly type—he just laughs off the congestion on the main roads of the city. He got featured in an
episode of the TV program “Impossible”
ESSAY:
1. What do you think has molded the honest and cheerful behavior of Mang Eugenio Ventura? 5pts
________________________________________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
2. What lesson can you learn from the good example of Mang Eugenio? 5pts
________________________________________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
3. What can be done in our school in order to teach and train students in honest and ethical behavior? 10pts
________________________________________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
CASE STUDY
People’s Recovery, Employment, and Development Assistant (PREDA) fair trade was not a profit organization
working at the national and international levels for the protection of human rights, especially women and children’s rights.
It was founded in 1974 and a year later it started to engage in fair trade. “Fair trade” in general, refers to objectives such
as: creating opportunities for economically disadvantaged producers; increasing farming market access, both domestic and
export, for these business; and ensuring transparency and accountability, among others.
Organization in the Philippine started engage heavily in fair trade in 1980’s, especially due to the sugar and coffee
crises when prices fell sharply, causing unemployment among thousands of Filipinos. In response to the situation,
organization started to implement structures the alleviated poverty and lessened dependency on sugar and coffee exports.
PREDA works hand in hand with the Philippine chapter of the world fair trade organization (WFTO) which works for the
development of progressive and responsible fair trade stakeholders in the country, as well as ensures that all fair trade
such as: providing income and food security to disadvantage communities; empowering community-based producers; and
promoting a quality and market-driven image of fair trade products.
ESSAY:
CASE STUDY
Socrates was an Athenian philosopher whose question and opinions clashed with the current course of Athenian
politics and society. Socrates worked to critically examine the foundational beliefs that were common in Greece during
his time, and encourage other citizens to do so as well. Because of this, he was not well liked by many politicians. He was
put to death after a trial found him guilty of corrupting the youth: this is based on works on Socrates written by Plato and
Xenophon.
Based on the account, Socrates’ life was ended as the result of capital punishment. He was accuse of corrupting
the young and disbelieving in the gods of the city. At the trial he was found guilty, and then the jail he accept the
execution even though he had a chance to escape. This is how his life ended. Furthermore, at the trial, Socrates’ did not
behave like an ordinary defendant who is supposed to be eager to be acquitted and to proclaim his innocence as possible.
Indeed, Socrates’ conduct made the trial extremely confusing and puzzling; he fail to prove his innocence, and moreover,
by presenting himself provocatively he even seemed to have been found guilty intentionally. The case of Socrates is then
not simply an incident in which he was convicted by his fellow citizens, but also a stage on which intentionally offered a
public demonstration of him in a strange manner.
ESSAY:
1. How is it possible that a basically good person who preached a set of values and beliefs about truth, wisdom
and good governance was accused and put to death? 10pts
____________________________________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. Is it possible that politics plays a role in how the good and the truth ate ultimately defined the lived? 5pts
____________________________________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Define the notion of “virtue”. Which are important virtues? 5pts
___________________________________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner: ____________________________________ Grade: ______________
4TH QUARTER
LEARNING ACTIVITY SHEET #1
BUSINESS BEYOND PROFIT MOTIVATION
Reasons to do Business beyond Profit (as cited in Jerusalem, Palencia, & Palencia, 2017)
Social Enterprise
Businesses that are changing the world for the better.
It also tackles social problems, improves communities, people's life chances, or the environment.
A proper business that makes its money in a socially responsible way.
It also exists to make a direct positive social or environmental impact on the world.
Social Enterprise is innovative and unique because:
It aims to make a profit, and then use this profit to support its charitable, social or environmental goals. Definitely, social
enterprises are not a charity.
It also provides products and provides services but further these charitable, social or environmental goals.
It also has social aims and ethical values.
Sustainability Issues:
It is vital to any business, and social enterprise is not an exception.
It means that the business can sell its product or service for more and the demand can grow in the medium to long term basis.
Another point of view in social enterprise is that some social projects and social enterprises may have a limited life.
EXAMPLES
- Climate change - Energy - Food production - Water scarcity
- Biodiversity - Changing demographics - Geopolitical instability - The global development agenda
- Inequality and global equity
As we observe today, the rise of technological advancements and industrialization not only gave rise to our modern
civilization, but it also gave rise to a wide range of environmental issues and global challenges. Modern technology has been
progressing at exponential rates, making mass production of goods as fast as possible. With rapid expansion of businesses came
exploitation and depletion of the Earth’s resources and minerals, as well as degradation of the environment.
Here are some essential truths about social enterprise and job creation:
Social Enterprises have huge potential - not only can social enterprises offer more employment, they can act as
campaigners and advocate for employing people from outside the usual suspects.
Recycling is excellent for creating jobs - there are potentially lots of opportunities in home care, green industries and in
manufacturing as well.
Find a way to combine a grassroots approach with leveling the playing field - progress can be made by combining the
support and nurture of talent with encouraging public and private organizations to consider contracting locally.
Social Enterprises must connect with further education - a major part of any local social enterprise strategy must be
working with the local further education college.
EXERCISES/ACTIVITIES:
Direction: Below is the overview of ROLEX in Corporate Social Responsibility. Read thoroughly and answer questions that follow:
The Reputation Institute recently published its 2018 Global Rep Trak rankings, as the largest study on corporate social
responsibility; it provides a global reputational index by rating the top 100 hundred companies for CSR. Despite an overall decline in
the rankings this year, Rolex retains its position as a leader for corporate social responsibility.
Founded in 1905, the company has been a pioneer in watchmaking, setting a precedent in the industry with innovative pieces
such as the ‘Oyster’ waterproof wristwatch and the Rolex ‘Date Just’ self-winding chronometer watch. The company’s philanthropic
work is largely centered on two key programs: The Rolex Awards for Enterprise and The Rolex Mentor and Protégé Arts Initiative
founded in 1976 and 2002 respectively. Understanding Rolex’s stratagem for social enterprise is useful for organizations seeking to
improve and expand their CSR.
Rolex’s success is attributed to the authenticity and longevity of its charity work. By investing in and committing to long-
term social enterprise projects, Rolex has an impressive record of over forty years of philanthropic work. The Rolex Awards for
Enterprise was established to commemorate the 50th anniversary of the Oyster Chronometer. The awards celebrate individuals who
demonstrate leadership and entrepreneurialism in the following areas; The Environment, Applied Science and Technology and
Exploration.
Questions:
1. What do you think strategies of ROLEX in becoming the leader of Corporate Social Responsibility? Write your answers on a
separate sheet of paper. (5 pts.)
____________________________________________________________________________________________________
_____________________________________________________________________________________________
2. We all know that ROLEX is a non-profit organization; it donates 90% of their profit. What do you think is the reason why the
owners do so? Write your answers on a separate sheet of paper. (5 pts.)
____________________________________________________________________________________________________
_____________________________________________________________________________________________
3. Research and enumerate five achievements of ROLEX philanthropic programs. (15 pts.)
____________________________________________________________________________________________________
_____________________________________________________________________________________________