Don Bosco School Business Ethics and Social Responsibility PDF 2022-2023

DON BOSCO SCHOOL - Salesian Sisters Inc. PAASCU Accredited/ESC Certified SELF LEARNING MODULE 1...

DON BOSCO SCHOOL - Salesian Sisters Inc. PAASCU Accredited/ESC Certified SELF LEARNING MODULE 1 BUSINESS ETHICS AND SOCIAL RESPONSIBILITY THIRD QUARTER QUARTER A.Y. 2022-2023 I. TITLE: The Role of Business in Social and Economic Development An overview of business as important aspects of modern life and modern society. To further discuss the moral principles that act as guidelines for the way a business conducts itself and its transactions. II. VIDEOS: Video 1: https://www.youtube.com/watch?v=UGSlED1Jx1Y Types of Business Organizations, 2019 Video 2: https://www.youtube.com/watch?v=cUAScafhLRs Accountability, Fairness and Transparency, 2018 III. EXPLAIN: THE NATURE OF BUSINESS BUSINESS The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a business is to organize some sort of economic production (of goods or services). (Investopedia) The activity of buying and selling goods and services (Cambridge Dictionary) FORMS OF BUSINESS ORGANIZATIONS Sole /Single Proprietorship ❖ A form of business is owned by one person; the simplest, and the most common form of business organization. ❖ It is not separate from the owner. ❖ The business and the owner are inseparable  Partnership ❖ A form of business owned by two or more persons. ❖ The details of the arrangement between the partners are outlined in a written document called articles of partnership. ❖ Profits are divided among partners based on their agreed sharing. ❖ The owner is called a partner. Corporation ❖ A corporation is a business organized as a separate legal entity (artificial person) under the corporation law with ownership divided into transferable shares of stocks ❖ The SEC (Securities and Exchange Commission) is the government agency primarily tasked to regulate private corporations in the Philippines. ❖ The owners are called stockholders or shareholders. ❖ The word ‘Corporation/Incorporation/Corp./Inc.’ appears in the name of the entity. ❖ The voting rights of a shareholder is generally based on the percentage of ownership. ❖ The management of the business is delegated by the shareholders to the Board of Directors ❖ The ownership is divided into shares and the value of one share may be denominated at a smaller amount THE PURPOSE OF BUSINESS MILTON FRIEDMAN: PROFIT AS THE PRIMARY RESPONSIBILITY OF BUSINESS “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.” (Friedman, 1970) Friedman asserted that "Greed is Good" and that businesses should prioritize increasing shareholders wealth and anything beyond that goal will be depending on the wants of the shareholders. PAUL CAMENISCH: THE PRIMARY OF BUSINESS’ SOCIAL FUNCTION “Pointed out that the nature of the business sector's main concerns are for life sustenance and life enhancement” (Camenisch, 1981) Camenisch contended that the nature of business is to ensure that societal needs are met in order to ensure that lives are sustained. RONALD F. DUSKA: THE MOTIVE IS NOT THE PURPOSE  “My motive for doing an action is not necessarily the same as the purpose of the action” (Duska, 1997) Duska argued that society cannot meet its own needs and wants, and the main purpose of business is to make sure that those are provided. 1987 PHILIPPINE CONSTITUTION “The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.” (Art. XII, Sec. 1) The government made sure that there was no unfair competition or monopoly within the country, that businesses could meet the needs and wants of the people, and that the resources of the country were being used effectively to produce a greater output for the people. THE CORPORATION CODE OF THE PHILIPPINES “To establish a new concept of business corporations so that they are not merely entities established for private gain but effective partners of the National Government in spreading the benefits of capitalism for the social and economic development of the nation.”(Corporation Code, 1980 ) Business should not only be for profit-seeking but also be an avenue to assist the less fortunate brothers and sisters; it should be built to raise not the money of the rich but rather the quality of life of those excluded from society. THE NATURE OF ETHICS ETHICS Derived from the Greek word “ethos”, which means “way of living”, ethics is a branch of philosophy that is concerned with human conduct, more specifically the behavior of individuals in society. Ethics examines the rational justification for our moral judgments; it studies what is morally right or wrong, just or unjust. (Canada.ca,2015) Refer to the philosophical study of the concepts of moral right and wrong and moral good and bad, to any philosophical theory of what is morally right and wrong or morally good and bad, and to any system or code of moral rules, principles, or values. (Britannica, 2022) MORAL One’s principles and beliefs concerning right and wrong. The belief that some behavior is right and acceptable and that other behavior is wrong. DIFFERENCE BETWEEN ETHICS AND MORAL Ethics is based on “because society says it is the right thing to do”, while moral is based on “because we believe in something being right or wrong” Conflicts Between Ethics and Morals  ❖ One professional example of ethics conflicting with morals is the work of a defense attorney. A lawyer’s morals may tell her that murder is reprehensible and that murderers should be punished, but her ethics as a professional lawyer require her to defend her client to the best of her abilities, even if she knows that the client is guilty. ❖ Another example can be found in the medical field. In most parts of the world, a doctor may not euthanize a patient, even at the patient's request, as per ethical standards for health professionals. However, the same doctor may personally believe in a patient's right to die, as per the doctor's own morality. CODE OF ETHICS Sets out an organization’s ethical guidelines and best practices to follow for honesty integrity and professionalism Three types of codes of ethics found in business ❖ Compliance-Based Code of Ethics - based on clear-cut rules and well-defined consequences rather than individual monitoring of personal behavior. ❖ Value-Based Code of Ethics - addresses a company's core value system. It may outline standards of responsible conduct as they relate to the larger public good and the environment. ❖ Code of Ethics in Different Professions - guide of principles designed to help professionals conduct business honestly and with integrity. What Is a Code of Ethics in Business? ❖ A set of guiding principles known as a code of ethics in business is meant to ensure that a company and its personnel behave honestly and honorably in all areas of day-to-day operations and to only take actions that benefit society. CORE PRINCIPLES OF BUSINESS ETHICS Fairness ❖ the quality or state of being fair (merriam-webster) ❖ fair or impartial treatment : lack of favoritism toward one side or another (merriam-webster) ❖ Fairness requires that: Treat all people equitably based on their merits and abilities and handle all essentially similar situations similarly and with consistency. Make all decisions on appropriate criteria, without undue favoritism or improper prejudice. Never blame or punish people for what they did not do, and appropriately sanction those who violate moral obligations or laws. Accountability ❖ the quality or state of being accountable (merriam-webster) ❖ an obligation or willingness to accept responsibility or to account for one's actions (merriam-webster)  ❖ Accountability requires that: readiness to have one’s actions judged by others and, where appropriate accept responsibility for errors, misjudgments and negligence accept recognition for competence, conscientiousness, excellence and wisdom. Transparency ❖ the quality or state of being transparent (merriam-webster) ❖ characterized by visibility or accessibility of information especially concerning business practices (merriam-webster) ❖ Transparency requires: building a transparent culture or transparent communications. showing of respect for employees and an understanding of their need for information to feel invested in the company’s mission Give and take honest feedback. Encourage openness and honesty in all communications HOW TO DRAFT/MAKE A SIMPLE CODE OF ETHICS Give the Code of Ethics a memorable title Include a table of contents Have an introduction or Prologue List the Core Principles/Values Discuss the importance of these Principles/Values List the name of the people behind the draft and if there’s any resources (books or links) ___________________________________________________________________________________________________________________ Prepared by: Ma. Perrine Rae M. Notarte Business Ethics and Social Responsibility - Teacher