BACC 1 CHAPTER 1.pdf

CHAPTER 1 BSBA 1A/BACC 1ST SEM 1 A MORAL GOOD GOVERNANCE AND SOCIAL conforms to high standards of ethical RESPONSIBILI...

CHAPTER 1 BSBA 1A/BACC 1ST SEM 1 A MORAL GOOD GOVERNANCE AND SOCIAL conforms to high standards of ethical RESPONSIBILITY behavior Ex. Being honest Philosophy of Business A AMORAL - GPS - Global Positioning System believe that business operates under its - Modernization and technology are own set of rules rather than a standard responsible for this state-of the art rule for moral and ethical behavior. mechanism which allows people to A. INTENTIONAL - does not consider navigate with ease and precision. ethical factors - Without the mission/vision statement, Ex. giving to charity or condemning acts goals, objectives, purpose, and other of violence related parameters, one could easily get B. UNINTENTIONAL - casual or careless lost amidst the surge of pressures, about ethical considerations in business challenges, setbacks, and other Ex. business-related problems. A IMMORAL A style lacking ethical principles and In doing Philosophical Composition, one dynamic antagonism to what is ethical must bear in mind and answer the embraces illegal behavior and/or following questions: practices which do not live up to - What is the nature of the intended generally held ethical principles. business? Ex - What principles and concepts underlie its commercial activity? Why do people behave ethically? - In what kind of image do I wish my business to project? Most of us behave ethically… - Will my values adhere to my intended To evade punishment business? To get some "reward" for being "good" - How do we reconcile a business mission with conflicting interests in the market Many of us behave ethically… place and society? To be agreeable and acceptable to family, friends, and superiors MORAL AND ETHICAL BASIS To be a "good citizen" OF BUSINESS Few of us behave ethically… To do what is right 3 MODELS OF MANAGEMENT ETHICS SHAREHOLDER - OWNS PART OF A COMPANY THROUGH SHARES OF ★ MORAL STOCK, MAKING THEM STOCKHOLDERS. ★ AMORAL STAKEHOLDER - HAS AN INTEREST AND/OR CONCERN IN THE OPERATION ★ IMMORAL AS WELL AS THE PERFORMANCE OF A COMPANY. PAGE 1 CAS 👩🏻‍💻 – 1A  CHAPTER 1 BSBA 1A/BACC 1ST SEM 1 SHAREHOLDERS STAKEHOLDERS - Transparency - Community Involvement OWNER EMPLOYEES - Be Responsible MEMBERS OF THE SUPPLIERS - Accounting Control CORPORATION CUSTOMERS - Respectfulness STOCKHOLDERS COMPETITORS COMMUNITY "Ethical standards must be set. But more MEDIA importantly, Ethical standards must be met." GENERAL PUBLIC GOVT AGENCIES Steps to Ethical Decision Making INTERNAL EXTERNAL STAKEHOLDERS STAKEHOLDERS What are the consequences of your OWNERS CREDITORS decision? MANAGERS COMPANY How can the option be implemented? EMPLOYEES CUSTOMERS Decide which option is most ethical PUBLIC Consider options SOCIETY Think through dilemma; Identify all SUPPLIERS components as objectively as possible GOVERNMENT 1 Utilitarian Model THE FOUR-FOLD TEST IN DECISION-MAKING - An ethical decision is one that produces EVALUATION the greatest good for the greatest number of people. Truthfulness - How honest and accurate is my decision? 1 Moral Rights Model Fairness - Am I being just and reasonable to - An ethical decision is one that best everyone concerned? maintain and protects fundamental Goodwill rights and privileges of the people - Will it build goodwill and positive affected by it. image to the organization? Beneficial - Will it be favorable to all parties who 1 Justice Model have a vested interest in the outcome? - An ethical decision is one that distributes benefits and costs among individuals in a fair, equitable, or impartial way. PRINCIPLES OF COMMENDABLE BUSINESS ETHICS - Trustworthiness PAGE 2 CAS 👩🏻‍💻 – 1A  CHAPTER 1 BSBA 1A/BACC 1ST SEM 1 1. Rules are subject to change. - Let all be reminded that everything is subject to change, including business rules. Policies can be changed in relation to responsiveness to management practices. A corporate role must make sense and good judgement for all participants including: - A. Investors - B. Business Undertakings, and Philosophy of Business as part of Applied - C. Active business affairs and Philosophy aftermaths within scope. - What is applied philosophy in the first Rules are not supposed to be between place? management and employees alone but takes - How does it differ from plain and simple into account the community and all those - philosophy? involved in the said business. - While Philosophy, in its very essence, is the study of the basic and fundamental 2. There is no such things as absolute nature of understanding, truth, and business rule in any business model. existence, particularly when pondered as an academic discipline, Applied - Business rules should be tailored-fit to Philosophy, as the term suggests, is the the purpose, demands, and goals of application of those principles and the business. concepts stemmed from and based on philosophy to a study of our practical 3. There is no business rules until you affairs and activities. say there are. - Never assume that people know. There is oftentimes a necessity for a 3 Major Components of the Philosophy of structured business vocabulary - a fact Business are: model. - Do's and Don'ts are critical in the The essential ideologies that inspire the day-to-day operation of any business realization and management of a enterprise. It can make or break any business venture. endeavor. A core business rule will The nature and purpose of the said define what is acceptable or otherwise. business The moral obligations that relate to it. 4. A business rule should always be feasible. (SMART) "Too much talk, not enough action" - What's the use of a business rule if it is not: Rules and Underlying Principles in Business - A. Realistic Basic Principles of Business Rules - B. Workable - C. Attainable PAGE 3 CAS 👩🏻‍💻 – 1A  CHAPTER 1 BSBA 1A/BACC 1ST SEM 1 - D. Achievable - E. Practical A Paradigm There are, of course, numerous business philosophies that you can apply on your - a model composing of cluster of ideas respective undertakings. about how things should be done, made, In deciding to come up with such business or thought about. philosophy, you bear in mind the following: A. Your perspective - A. Follow what works for you B. Your point of view - B. Do what is legally right C. Your beliefs about what'[s true - C. Do what is morally right A Paradigm Shift "A business rule that is impossible to implement is useless!" Can we say that your paradigm will remain the same all your life? Business as a Social Institution - New A Personal Paradigm Shift Perspective and Paradigm Shift - It can also be viewed between two individuals Aside from products and/or services businesses in a relationship. And since no two people are are made up of people. It is the people who exactly alike, compromises and adjustments make the business running. The earnings of have to be made for the connection to have a these people make it possible for them to chance to succeed. provide for the needs of their respective families, send their children ((if any) to school, and support the community in general. Beyond Economics: Business as a Social Institution Typical Business Goal: Make More Money It is obviously the desire of most businesses. And there is nothing wrong with it - as long as it is pursued with mindfulness to business as a social institution. However, when greed enters the picture and conflicts of interests are not resolved, the principle of mutual benefit is no longer applicable and exploitation is not far behind. Imagine yourself eating your favorite fruit -....... PAGE 4 CAS 👩🏻‍💻 – 1A