10- INITIATIVES TO IMPROVE BUSINESS ETHICS AND REDUCE CORRUPTION

Question 1

These serve as the Integrity Initiative Secretariat.

Answer 1

The Makati Business Club (MBC) and the European Chamber of Commerce of the Philippines (ECCP)

Question 2

The _____ _______ is a multisectoral campaign that seeks to institutionalize integrity standards among various sectors of society - business, government, judiciary, academe, youth, civil society, church and media.

Answer 2

Integrity Initiative

Question 3

T or F?

Integrity Initiative is led by the private sector, the initiative aims to help in diminishing, if not fully eradicating, the vicious cycle of corruption in the Philippines, which has not only exacerbated poverty but also obstructed the development of a competitive business
environment that operates on a level playing field.

Answer 3

T

Question 4

What does the Integrity Initiative hopes to build?

Answer 4

trust in government and a more equitable society and fair market conditions.

Question 5

“_______________________ “ containing the key documents and toolkits in Integrity Initiative was published for the use of organizations to promote ethical business practices.

Answer 5

An Integrity Compliance Handbook

Question 6

Corporate Values

The increasing scrutiny by regulators, lobbyists, non-government organizations, consumer groups and the media have the potential to affect a business firm _______ and hence value.

Answer 6

market perception

Question 7

It is therefore important that the
1.
2.
address the legal and other obligations owed to important stakeholders,

Answer 7

1. organization’s values,
2. and its code of conduct,

Question 8

_____, ____, _____ has become one of the greatest challenges facing today’s board. The reputation of a business is a critical factor in the determination of its value. The values and ethics of the organization need to be explicitly managed.

Answer 8

Managing, protecting and enhancing reputation

Question 9

It is a formal expression of the organization’s values and ethics.

Answer 9

Code of conduct

Question 10

A Code of conduct should:

Answer 10

• guide directors and senior executives, as a minimum, as to the practices necessary to maintain confidence in the organization’s integrity. Other members of staff should also have a code of conduct relevant to them which may be the same as that for directors and senior executives or may be a complementary version;
• promote responsibility and accountability of individuals for reporting and investigating reports of unethical practices; and
• ensure compliance with legal and other obligations to legitimate stakeholders.

Question 11

An organization’s code of conduct recognizes the important role that business ethics play in the success of today’s business, encouraging the board to actively an organizational culture that is established on ___, ____, ____

Answer 11

transparency, accountability and integrity.

Question 12

Purpose of the “Unied Code of Conduct for Business

Answer 12

First, it harmonizes existing ethical standards among business operating in the Philippines. It ensures that different market players adhere to the same rules of the game in order to create fair market conditions and
promote transparency in domng business.
Second, the Code formally communicates the signatories’ commitment to upholding high standards of ethics in all business transactions. It articulates the belief that securing profit at the expense of integrity is an unacceptable and unsustainable way of conducting business and that measures have been taken to enforce and cultivate integrity habits within the signatories’ respective organizations.

Question 13

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• Our top management leads by example by consistently demonstrating the value of conducting business with integrity:

Answer 13

Top Management

Question 14

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• Our officers strongly communicate our organization’s position against bribery, corruption and unethical business practices within the company and the broader public; comply with all the requirements of government regulatory bodies; and prohibit cover-ups and falsified reports that conceal improper transactions.

Answer 14

Top Management

Question 15

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• Management strongly supports integrity practices and allocates sufficient resources for their implementation.

Answer 15

Top Management

Question 16

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• We strive to instill culture of integrity among our employees. The management maintains open lines of communication with employees, particularly on matters relating to honesty, transparency and integrity in business transactions.

Answer 16

Human Resources

Question 17

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• In the spirit of fairness and due process, all employees have the right to file and respond to complaints against practices suspected to be illegal or unethical.

Answer 17

Human Resources

Question 18

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• We have appropriate tools to confidentially receive, monitor, and act on internal and external complaints.

Answer 18

Human Resources

Question 19

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• Employees filing complaints will be protected from all types of. retaliation, while those involved in unethical practices will be subject to commensurate disciplinary actions.

Answer 19

Human Resources

Question 20

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• We have instituted training programs on business ethics covering all levels of the organization.

Answer 20

Human Resources

Question 21

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)
• We clearly communicate rules and guidelines on giving gifts, entertainment, tokens of hospitality, and contributions to/from public and private organizations and their representatives.

Answer 21

Sales and Marketing

Question 22

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

Employees and all third parties engaged by our company to act as our intermediaries, agents or representatives are not permitted to offer. promise, or give, as well as demand or accept concessions directly or indirectly - in order to obtain, retain. or secure any undue advantage in the conduct of business.

Answer 22

Sales and Marketing

Question 23

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

We abide by existing laws when transacting with government agencies (as stipulated under RA 6713 - Code of Conduct and Ethical Standards for Public Officials and Employees and RA 3019 .. Anti-Graft and Corrupt Practices Act).

Answer 23

Sales and Marketing

Question 24

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative)

• We require all our employees to ensure that all books and records they create or are responsible for are complete and accurate.

Answer 24

Finance and Accounting

Question 25

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • Our financial records conform to standard accounting principles, comply with Securities and Exchange Commission requirements on disclosure and transparency, and abide by anti-money laundering laws (RA 9160) and international conventions.

Answer 25

Finance and Accounting

Question 26

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • We pay taxes in compliance with all laws.

Answer 26

Finance and Accounting

Question 27

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • A track record of integrity and compliance with existing laws is a prerequisite when consultants, suppliers, intermediaries, and agents. Our company has transparent procurement procedures, provides equal opportunities for all suppliers, and prohibits, collusion between and among our employees and suppliers.

Answer 27

Procurement

Question 28

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • Recognizing that the Integrity Initiative is sustained through widely shared ethical practices within the business community, we enter into integrity pacts with our suppliers and ensure that they comply with the provisions of our pact.

Answer 28

Procurement

Question 29

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) Contracting a third party to bribe or commit corrupt practices on behalf of the company is strictly prohibited.

Answer 29

Procurement

Question 30

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • We comply with laws and regulations pertaining to supply chain management,

Answer 30

Logistics

Question 31

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • We do not tolerate any breaches in existing laws in exchange for undue advantage and unethical concessions or favors. advantage and unethical concessions or favors. We pay correct duties and tases based on transparent assessment of goods and services.

Answer 31

Logistics

Question 32

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • Employces are not penalized for refusing to pay bribes or facilitation payments even if it results in failure to meet deadlines or loss of revenue.

Answer 32

Logistics

Question 33

THE UNIFIED CODE OF CONDUCT FOR BUSINESS (Integrity Initiative) • We will continually to align our operations to the principles contained in this Code periodically assess and monitor our compliance to it. We will continue to share best practices with the business community to strengthen ethical business processes in the Philippines.

Answer 33

Implementation and Monitoring

Question 34

The ______________ issued by the Bishops-Businessmen's Conference Philippines is reproduced in this chapter for reasons of continuing applicability, relevance and significance to entities doing business in the Philippines.

Answer 34

Code of Ethics for the Philippine Business

Question 35

This Code of Ethics has been formulated impelled by the belief that 1. 2.

Answer 35

1. man has a dignity that must be respected, and 2. that all the resource of the earth has been created for his growth and development.

Question 36

The Code seeks to express ______ and coherently the principles of business practices accepted and professed by Philippine business at its best, and seeks to apply these to current and changing needs.

Answer 36

systematically

Question 37

T or F? It is the hope that this Code will serve as a general stimulus to renew and develop or amend existing standards, and that individual entities will expand and adopt it to the specific needs of their own organizations.

Answer 37

T

Question 38

Finally, it is Code for all people, formulated on the premise that the 1. modern manager must be a ______ for human development 2. that the business of business is to build an ______ oriented to the development of man

Answer 38

1. modern manager must be a strategist for human development, and 2. that the business of business is to build an enterprise oriented to the development of man.

Question 39

T or F? Business which embraces commerce and industry is not an accidental human activity but an integral element of the social order. Its primary purpose is to meet society's human needs by providing goods and services as efficiently as possible.

Answer 39

T

Question 40

All business is essentially an expression of ____ ; not only with those who work in the enterprise, but also with those who own and provide financial resources, with those who supply it with materials and services, with those who buy its products or services, with the government, and with the wider public whose lives are affected by the business activity. The interest of all those members of society must be taken into account in formulating business policy. These interests, in themselves legitimate, will at times conflict. While conflict and tension can be themselves being constructive, the aim of business must always be to reconcile opposing interests in a balance of justice and mutual concern.

Answer 40

human relationships

Question 41

All business is essentially an expression of human relationships. With whom?

Answer 41

1. those who work in the enterprise 2. those who own and provide financial resources, 3. those who supply it with materials and services, 4. those who buy its products or services, 5. with the government, 6. with the wider public whose lives are affected by the business activity.

Question 42

The resources employed by a business enterprise are ____, ____, ___. The human resources have a unique quality and should be employed in a manner consistent with personal dignity. The individual should be given opportunity to use and develop his faculties in his work. His contribution to the success of the enterprise should be properly recognized and rewarded.

Answer 42

financial, technological and human.

Question 43

Business enterprise has a _____ to use all its resources efficiently.

Question 44

Profit in a system of free enterprise is recognized as a ____ ____ , and is necessary for the maintenance and growth of the enterprise, for raising the quality or life, and for helping meet the broader needs of society.

Answer 44

fundamental incentive

Question 45

T OR F? Profit in a system of free enterprise is recognized as a fundamental incentive, and is necessary for the maintenance and growth of the enterprise, for raising the quality or life, and for helping meet the broader needs of society.

Answer 45

T

Question 46

____ and ____ are essential for the maintenance and continuing improvement of the quality of goods and services for growth and for technological progress.

Answer 46

Competition, incentives

Question 47

However, to guard against unfair forms of competition, a consistent _________ must be established and observed.

Answer 47

standard of business behavior

Question 48

Some Principles for the Conduct of Business Business shall recognize the unique position of employces as individuals with a vital stake in their work and at the same time with inherent obligations to their own families, and provide: • for recognition that, although rates of pay may often be determined by union., economic and legal pressures, wages and salary policy should be based on the right of the employees to a fair and improving standard of living, irrespective of race, sex, age and creed: • for fair recruitment practice that affords equal opportunity to all qualified job-seekers; • for job security, adequate compensation for employees in cases of separation and retirement, and opportunities for fringe benefits; • for a safe and healthy atmosphere in the work environment conducive to the physical and moral well-being and growth of the employees; • for conditions in which human potentials and relationships developed at all levels of the work force, with a view to providing therein a sense of purpose and achievement; and • for participative elements so that the knowledge, experience and creativity of all who work in the enterprise may contribute to the decision-making process.

Answer 48

Towards the Employees

Question 49

Some Principles for the Conduct of Business Towards the Customers Business shall, in the production of goods and services: • strive afer a quality that will enable them to serve their purpose efficiently and effectively: • avoid anything that would be detrimental to the health, safety or growh of the proper user or beneficiary of such goods and services; and • seck to apply or make use of the discoveries and inventions of science with adaptations that will improve their products or services, thereby benefitting customers / users and increasing their number.