Podcast
Questions and Answers
A company inflates its asset values while concealing debts. Which unethical practice does this exemplify?
A company inflates its asset values while concealing debts. Which unethical practice does this exemplify?
- Making false claims
- Ballooning assets and hiding liabilities (correct)
- Poor-quality materials
- Customer service failures
A dermatologist clinic promotes a beauty product with exaggerated promises, which leads to consumer dissatisfaction and potential lawsuits. Which unethical practice is evident here?
A dermatologist clinic promotes a beauty product with exaggerated promises, which leads to consumer dissatisfaction and potential lawsuits. Which unethical practice is evident here?
- Overbilling
- Layoff and high executive compensation
- Misleading advertisements (correct)
- Poor-quality materials
A manager publicly takes credit for a charity event they did not participate in. What type of unethical behavior is this?
A manager publicly takes credit for a charity event they did not participate in. What type of unethical behavior is this?
- Making false claims (correct)
- Layoff and high executive compensation
- Customer service failures
- Overbilling
A customer returns a faulty product within the warranty period, but the company refuses to replace it or offer a refund. Which unethical practice is the company engaging in?
A customer returns a faulty product within the warranty period, but the company refuses to replace it or offer a refund. Which unethical practice is the company engaging in?
A company justifies laying off employees due to financial losses, but in reality, the saved money is used to increase executive bonuses. Which unethical practice is being demonstrated?
A company justifies laying off employees due to financial losses, but in reality, the saved money is used to increase executive bonuses. Which unethical practice is being demonstrated?
A manufacturing company uses substandard raw materials to cut production costs, resulting in a final product of poor quality. What unethical practice is the company engaging in?
A manufacturing company uses substandard raw materials to cut production costs, resulting in a final product of poor quality. What unethical practice is the company engaging in?
A service provider charges clients significantly more than the fair market value for their services. Which unethical practice is evident here?
A service provider charges clients significantly more than the fair market value for their services. Which unethical practice is evident here?
A newly formed corporation fails to register with the Securities and Exchange Commission (SEC). How does this relate to ethical business practices?
A newly formed corporation fails to register with the Securities and Exchange Commission (SEC). How does this relate to ethical business practices?
A new business owner is overwhelmed by the registration requirements. Which sequence accurately reflects the order in which they would typically address these requirements?
A new business owner is overwhelmed by the registration requirements. Which sequence accurately reflects the order in which they would typically address these requirements?
During a lunch break, two employees are discussing a new product launch strategy they overheard in a meeting. What principle of office decorum are they violating?
During a lunch break, two employees are discussing a new product launch strategy they overheard in a meeting. What principle of office decorum are they violating?
An employee consistently leaves food wrappers at their desk, creating an unpleasant smell. Which principle of workplace conduct does this violate?
An employee consistently leaves food wrappers at their desk, creating an unpleasant smell. Which principle of workplace conduct does this violate?
An employee routinely uses the company's printer for personal documents and copies. Which ethical guideline is the employee breaching?
An employee routinely uses the company's printer for personal documents and copies. Which ethical guideline is the employee breaching?
An employee frequently uses company email to send personal messages and forwards jokes to colleagues. Which aspect of professional conduct is being compromised?
An employee frequently uses company email to send personal messages and forwards jokes to colleagues. Which aspect of professional conduct is being compromised?
An employee is offered a significant discount from a supplier in exchange for exclusively recommending their services to the company, even though other suppliers offer better value. What ethical issue is at play?
An employee is offered a significant discount from a supplier in exchange for exclusively recommending their services to the company, even though other suppliers offer better value. What ethical issue is at play?
An employee discovers a USB drive containing sensitive client data left unattended on a colleague's desk. What is the most ethical course of action?
An employee discovers a USB drive containing sensitive client data left unattended on a colleague's desk. What is the most ethical course of action?
An employee is approached by a competitor seeking information about their company's new product development plans. What information, if disclosed, would constitute a breach of confidentiality?
An employee is approached by a competitor seeking information about their company's new product development plans. What information, if disclosed, would constitute a breach of confidentiality?
A company consistently delivers high-quality products, provides excellent customer service, and resolves issues fairly. Which core principle of business ethics does this BEST exemplify?
A company consistently delivers high-quality products, provides excellent customer service, and resolves issues fairly. Which core principle of business ethics does this BEST exemplify?
A manager discovers a safety flaw in a new product that could potentially harm consumers. Instead of addressing the issue, they decide to proceed with the product launch to meet sales targets. Which ethical principle is the manager MOST clearly violating?
A manager discovers a safety flaw in a new product that could potentially harm consumers. Instead of addressing the issue, they decide to proceed with the product launch to meet sales targets. Which ethical principle is the manager MOST clearly violating?
Which scenario BEST illustrates a violation of the 'Loyalty' principle in business ethics?
Which scenario BEST illustrates a violation of the 'Loyalty' principle in business ethics?
A company promises '100% organic' ingredients in its products but knowingly uses synthetic additives. Which core ethical principle is being violated?
A company promises '100% organic' ingredients in its products but knowingly uses synthetic additives. Which core ethical principle is being violated?
A company prioritizing the creation of a caring environment for employees believes this will primarily lead to what outcome?
A company prioritizing the creation of a caring environment for employees believes this will primarily lead to what outcome?
A manager is faced with the difficult decision to either close a plant and lay off workers OR significantly cut salaries across the board to keep the plant open. Applying ethical decision-making, which principle should MOST strongly guide their choice?
A manager is faced with the difficult decision to either close a plant and lay off workers OR significantly cut salaries across the board to keep the plant open. Applying ethical decision-making, which principle should MOST strongly guide their choice?
A supervisor consistently favors employees who are personal friends, offering them better opportunities and overlooking their mistakes, while holding others to a stricter standard. Which ethical principle is the supervisor MOST clearly disregarding?
A supervisor consistently favors employees who are personal friends, offering them better opportunities and overlooking their mistakes, while holding others to a stricter standard. Which ethical principle is the supervisor MOST clearly disregarding?
Why is it critical for managers to exemplify ethical behavior and strictly adhere to company rules and regulations?
Why is it critical for managers to exemplify ethical behavior and strictly adhere to company rules and regulations?
A small business owner makes a verbal agreement with a supplier for a bulk order of materials. Unexpectedly, the market price of those materials rises sharply before the order is fulfilled. The supplier, seeing an opportunity for greater profit elsewhere, tries to back out of the original agreement. Which ethical principle is MOST relevant in evaluating the supplier's potential actions?
A small business owner makes a verbal agreement with a supplier for a bulk order of materials. Unexpectedly, the market price of those materials rises sharply before the order is fulfilled. The supplier, seeing an opportunity for greater profit elsewhere, tries to back out of the original agreement. Which ethical principle is MOST relevant in evaluating the supplier's potential actions?
When a manager makes a faulty decision with negative repercussions, what does ethical accountability require them to do?
When a manager makes a faulty decision with negative repercussions, what does ethical accountability require them to do?
What impact does an ethically sound environment typically have on a company's dealings with external businesses and partners?
What impact does an ethically sound environment typically have on a company's dealings with external businesses and partners?
A tech company discovers a security vulnerability in its software that could expose user data. They quickly develop a patch but delay its release for several weeks to coincide with a major marketing campaign, potentially leaving users at risk during that time. Which ethical principle is MOST compromised by this decision?
A tech company discovers a security vulnerability in its software that could expose user data. They quickly develop a patch but delay its release for several weeks to coincide with a major marketing campaign, potentially leaving users at risk during that time. Which ethical principle is MOST compromised by this decision?
Which action best demonstrates a manager leading by ethical example?
Which action best demonstrates a manager leading by ethical example?
In what way does striving for excellence contribute to a company's ethical conduct?
In what way does striving for excellence contribute to a company's ethical conduct?
Why is the principle of 'respect' considered fundamental in an ethical workplace?
Why is the principle of 'respect' considered fundamental in an ethical workplace?
What is a potential outcome of a company engaging in accounting manipulations?
What is a potential outcome of a company engaging in accounting manipulations?
In maintaining accurate and truthful financial records, which action is most critical for upholding the integrity of a company?
In maintaining accurate and truthful financial records, which action is most critical for upholding the integrity of a company?
Why is it important for human resource staff to protect the privacy of employee information like addresses and medical data?
Why is it important for human resource staff to protect the privacy of employee information like addresses and medical data?
A company emphasizes 'respect in all interactions regardless of position or circumstances.' Which component of the code of ethics does this primarily reflect?
A company emphasizes 'respect in all interactions regardless of position or circumstances.' Which component of the code of ethics does this primarily reflect?
Management prominently displays the code of ethics in the workplace. What component of the code of ethics does this action represent?
Management prominently displays the code of ethics in the workplace. What component of the code of ethics does this action represent?
An employee discovers a colleague falsifying transaction documents. According to the code of ethics, what is the employee's responsibility?
An employee discovers a colleague falsifying transaction documents. According to the code of ethics, what is the employee's responsibility?
Which of the following business aspects is considered a principle that stakeholders should uphold, supporting the company's established values?
Which of the following business aspects is considered a principle that stakeholders should uphold, supporting the company's established values?
What is the primary implication if an employee violates a company's code of ethics?
What is the primary implication if an employee violates a company's code of ethics?
A company fails to report its financial statements according to licensing requirements. Which component of the code of ethics is being violated?
A company fails to report its financial statements according to licensing requirements. Which component of the code of ethics is being violated?
Flashcards
Honesty in Business
Honesty in Business
Truthfulness in words and actions. Employees sense it in management's decisions, customers trust it in dealings.
Business Integrity
Business Integrity
Consistency in actions and decisions, earning the trust of stakeholders. Includes admitting mistakes.
Keeping Promises
Keeping Promises
Upholding commitments and promises. Managers should find ways to honor them.
Company Loyalty
Company Loyalty
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Business Fairness
Business Fairness
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Caring in Business
Caring in Business
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Caring Environment
Caring Environment
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Respect in Workplace
Respect in Workplace
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Obeying the Law
Obeying the Law
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Excellence in Business
Excellence in Business
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Leadership by Example
Leadership by Example
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Morale & Ethics
Morale & Ethics
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Accountability
Accountability
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Accounting Manipulation
Accounting Manipulation
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Asset Ballooning
Asset Ballooning
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Overbilling
Overbilling
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Misleading Advertisements
Misleading Advertisements
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Making False Claims
Making False Claims
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Customer Service Failures
Customer Service Failures
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Layoff and High Executive Compensation
Layoff and High Executive Compensation
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Poor-quality Materials
Poor-quality Materials
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Compliance with Reportorial Requirements
Compliance with Reportorial Requirements
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Government Body Compliance
Government Body Compliance
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Proper Office Decorum
Proper Office Decorum
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Workspace Cleanliness
Workspace Cleanliness
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Company Asset Use
Company Asset Use
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Communication Infrastructure
Communication Infrastructure
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Employer's Best Interest
Employer's Best Interest
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Confidential Information
Confidential Information
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Local Clearances
Local Clearances
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Employee Privacy
Employee Privacy
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Financial Record Integrity
Financial Record Integrity
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Company Values
Company Values
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Business Principles
Business Principles
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Management Support (Ethics)
Management Support (Ethics)
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Personal Responsibility (Ethics)
Personal Responsibility (Ethics)
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Code Compliance
Code Compliance
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Transaction Documentation
Transaction Documentation
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Study Notes
- There are 12 principles that govern business ethics, that cover the various aspects of how a company acts
Honesty
- Requires honest employees in both words and actions
- Employees should be truthful and sincere so that the company can gain the trust of its stakeholders
- Do not hold back the truth
- Products and services should not be misrepresented or features exaggerated
Integrity
- Requires the company to earn the trust of stakeholders by being consistent in actions, decisions, and character
- A company should be bold and firm in its decisions
- Management should have the courage and strength to admit mistakes
- Managers should have a code of ethics they believe in and are willing to fight for what is right and true
Keeping Promises
- Requires managers keep their word and always ensure promises are not broken
- Managers who find it hard to fulfill commitments must still do so
Loyalty
- Requires managers to be loyal to the company by not putting their self-interests above the company's position
- Employees who decide to leave should give a grace period to allow the company to find their replacement
- Keep company information confidential
- Loyalty leads to respect
Fairness
- It is treating people as equal
- Managers should act impartially in all transactions
- Managers should not exercise power for personal advantage or take advantage of other people's weaknesses
- Managers should also be open-minded and value the advice and suggestions of others
- Managers should observe what is right and recognize that they do not have a monopoly of knowledge and skills
Caring
- Requires compassion and sincere concern for others
- The company should create a caring environment for its employees
- The company should strive to reach its goals while benefitting as people as possible without hurting others
Respect
- It is is not imposed but earned
- Respect should be the default in dealing with oneself and others
- Being respectful means being courteous at all times, regardless of rank
- Each person deserves to be treated with respect without prejudice on gender, religion, or status in life
Obeying the law
- Requires all employees follow rules
- Management must never break the rules
- Managers should set an example in following company policies, rules, and regulations
- No one is above the law; managers who craft the rules should not be law breakers
Excellence
- Requires that employees should strive to achieve excellence in all their tasks
- The company delivers the highest quality products and services and ensures efficient delivery of services
- The company ensures continuous improvement in all its processes
Being a leader
- Requires leadership by example
- Managers should be role models to establish integrity and credibility among employees and customers
- Decisions should be firm yet flexible
- Guided by ethical principles and standards
Morale
- Requires that managers act ethically to enhance the company's image
- Being ethical also boosts employees' morale
- An ethical environment gives the company a good reputation and recognition from other companies
- A good image helps in business dealings
Accountable
- Requires being responsible for one's actions
- There should be acceptance of consequences of any decision made
- Managers should stand firm
- Do not turn back or blame others when a wrong decision is made
Unethical Business Practices
- Unethical behaviors should be avoided because they destroy the company's reputation and result in bad business
Accounting Manipulations
- Involves manipulating accounting books and financial statements to show a more favorable result of accounting transactions
- Hiding the true status of the company and presenting a better picture of its financial statements to investors
- Inflating assets and hiding debts and liabilities
Overbilling
- Involves charging more than the actual price for services provided
- Overpricing destroys the reputation of a service provider and may result in lower sales
Misleading Advertisements
- Involve advertisements which mislead consumers by making promises which the product cannot deliver
- They may temporarily increase sales but result in lower sales due to dissatisfied customers
- Lawsuits can occur due to excessive claims
Making False Claims
- Involves managers taking credit for something like charity works which they are not a part of
- Using dangerous chemicals to increase product quantity or cut short production to reduce expenses
Customer Service Failures
- Poor customer service is considered unethical
- Examples include failing to replace a damaged product, not serving a warranty, failing to refund a complaining customer, or being rude
- Credit collection agencies who antagonize and threaten credit card customers
Layoff and High Executive Compensation
- Involves companies laying off workers due to low profits, while giving higher salaries to their executives using the savings
Poor-quality Materials
- Involves using low-quality raw materials to lower the total cost of production
- Victims may file legal action against manufacturers
Good Policies and Ethical Practices
- Business organizations comply with reportorial requirements as mandated by government agencies for ethical practices
- Sole proprietors register with the Department of Trade and Industry (DTI)
- Partnerships and corporations register with SEC
- Business owners secure clearances and register with BIR, SSS, PhilHealth, and Pag-IBIG, and remit requirements
- Practice proper office decorum and manners such as keeping conversations on a professional level and taking care to not disturb others
- Be sensitive to smells and maintain cleanliness in the workplace
- Company property or assets are for business purposes and not for personal use
- Employees should use communication infrastructure properly and maintain confidentiality
- Employees should act in the best interest of their employer and avoid conflicts of interest
- Confidential information should be protected and not be divulged without authorization
- Some examples of confidential info are trade secrets, business plans, pricing schemes, and client lists
- Exercise care in discussing confidential information where conversations may be overheard
- Financial and accounting records should be accurate, reliable, and truthful with no off-the-record funds
Components of Code of Ethics
Values
- Guide the organization's internal conduct and relationship with stakeholders
- Emanate from corporate culture and expressed with honesty and fairness
- The values sum up the company's reputation
Principles
- Credos that employees should live by during their stay in the company
- Include business principles such as customer satisfaction, business profitability, and corporate social responsibility
Management Support
- Means that management is serious about the code of ethics
- Display the code of ethics in prominent and strategic places
Personal Responsibility
- Any member of the organization should uphold and preserve the code of ethics
- To report anyone who violates the code to avoid legal/moral consquences
Compliance
- All legal requirements of the code should be met Including legal such as, licensing requirements.
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