BUSINESS ETHICS AND SOCIAL RESPONSE Flashcards
It is a branch of philosophy that serves to prescribe and guide acceptable human conduct, delving into the study of morality and examining what is morally right or wrong.
Ethics
It focuses on applying ethical principles within the realm of business.
Business Ethics
It scrutinizes the moral standards applied to business organizations and behaviors.
Business Ethics
According to ______, ethical issues in business can be categorized into three types: systemic, corporate, and individual.
Velasquez (2011)
According to Velasquez (2011), ethical issues in business can be categorized into three types: ______, ______, and ______.
systemic, corporate, individual
Pertains to problems such as the prevalence of corruption within government institutions, necessitate coordinated actions from various social groups like local government, business associations, and regulatory bodies.
Systematic Issues
This pertain to problems that can and should be resolved within the company itself.
Corporate issues
It involve matters that require resolution through individual decision-making and behavioral change.
Individual issues
If a company faces issues with employee punctuality, it requires concerted efforts from both employees and the company to rectify the situation through policies and practices.
What type of issue?
Corporate Issues
______ lack the capacity to discern what is right and wrong. Instead ______ belonging to an organization makes the ethical and unethical decisions.
Organizations, individuals
There are numerous philosophical approaches to the study of ethics, but four major theories stand out, providing frameworks to guide justified decision-making that can be rationally defended: ______, ______, ______, ______.
•Utilitarian Ethics (Consequence-Based)
•Deontological Ethics (Duty-Based)
•Virtue Ethics (Character-Based)
•Ethical Relativism (Culture-Based)
Utilitarian Ethics-______
Deontological Ethics-______
Virtue Ethics-______
Ethical Relativism-______
(Consequence-Based)
(Duty-Based)
(Character-Based)
(Culture-Based)
It revolves around the notion that the greatest good produced must benefit the majority.
Utilitarian Ethics (Consequence-Based)
Actions are evaluated based on their overall benefits and costs.
Utilitarian Ethics (Consequence-Based)
It emphasizes respecting people’s rights and treating them with dignity.
Deontological Ethics (Duty-Based)
This theory posits that the morality of an action is determined by normative rules rather than consequences, as in utilitarianism.
Deontological Ethics (Duty-Based)
This focuses on righteousness and what constitutes a good person.
Virtue Ethics (Character-Based)
This approach centers on an individual’s character in ethical decision-making, prioritizing character traits over consequences (utilitarianism) or duty (deontology).
Virtue Ethics (Character-Based)
It asserts that ethical standards cannot be absolute and applied universally to all individuals across societies. Instead, ethical principles are viewed as relative to cultural norms and practices.
Ethical Relativism (Culture-Based)
It’s commonly assumed that an individual’s values are predominantly shaped during childhood and persist into adulthood. However, as people age and mature, their values undergo significant changes.
Cognitive and Moral Development
_______ level:
Stage 1: Punishment and obedience orientation.
Stage 2: Instrumental relativist orientation.
Pre-conventional
Stage 1: Punishment and obedience orientation, where actions are deemed good or bad based on avoiding punishment.
Pre-conventional level
Stage 2: Instrumental relativist orientation, where individuals realize that certain actions can fulfill personal needs and those of others they care about.
Pre-conventional level
Punishment and obedience orientation, where actions are deemed good or bad based on avoiding punishment.
Stage 1
Instrumental relativist orientation, where individuals realize that certain actions can fulfill personal needs and those of others they care about.
Stage 2
Stage 1: _______, where actions are deemed good or bad based on avoiding punishment.
Punishment and obedience orientation
Stage 2: _______, where individuals realize that certain actions can fulfill personal needs and those of others they care about.
Instrumental relativist orientation
Stage 3: Interpersonal concordance orientation, where good behavior is motivated by the desire for approval and loyalty to family, group, or community.
Conventional level
Stage 4: Law and order orientation, where right behavior is determined by adherence to the rules and laws of society.
Conventional level
Interpersonal concordance orientation, where good behavior is motivated by the desire for approval and loyalty to family, group, or community.
Stage 3
Law and order orientation, where right behavior is determined by adherence to the rules and laws of society.
Stage 4
_______ level:
Stage 3: Interpersonal concordance orientation.
Stage 4: Law and order orientation.
Conventional
Stage 3: ______, where good behavior is motivated by the desire for approval and loyalty to family, group, or community.
Interpersonal concordance orientation
Stage 4: ______, where right behavior is determined by adherence to the rules and laws of society.
Law and order orientation
_______, _______, or _______ level:
Stage 5: Social contract orientation.
Stage 6: Universal ethical principles orientation.
Post-conventional, autonomous, principled
Social contract orientation, where individuals recognize the relativity of values and norms, considering perspectives and making decisions accordingly.
Stage 5
Universal ethical principles orientation, where decisions are based on moral principles characterized by reason, universality, and consistency, aiming for the utmost justice.
Stage 6
Stage 6: ______, where decisions are based on moral principles characterized by reason, universality, and consistency, aiming for the utmost justice.
Universal ethical principles orientation
Stage 5: ______, where individuals recognize the relativity of values and norms, considering perspectives and making decisions accordingly.
Social contract orientation
One of the cornerstones of an organization is its _______.
Human Resources Management (HRM)
______ involves effectively managing people within a company.
Human Resource Management (HRM)
The main functions of Human Resources (HR) include: ______, ______, ______, ______, ______, and ______.
-recruitment
-compensation and benefits -training and development -performance appraisal
-labor relations
-management compliance
_______ is often described as the moral conscience of a company.
Human Resources (HR)
Human Resources (HR) handles crucial tasks such as: ______, ______, ______, and ______.
-employee management
-termination
-salary structure
-dispute resolution
HR leaders play a vital role in modeling ethical behavior and inspiring an ethical culture within the company, fostering an environment of trust and respect for employees to emulate.
Ethical HR Leadership
Investing in training and development programs demonstrates HR’s commitment to employee growth and retention, enhancing their skills and knowledge.
Continuing Professional Development
Recognizing the importance of diversity in the workplace and ensuring fair recruitment practices based on merit rather than biases fosters an inclusive environment conducive to ethical decision-making.
Embracing Diversity
Implementing clear codes of ethics and discipline helps manage conflicts of interest, ensuring that personal interests do not compromise organizational integrity.
Managing Conflict of Interest (COI)
Upholding the confidentiality of employee information is crucial for HR, respecting privacy rights and legal obligations regarding sensitive matters such as salaries, harassment complaints, and disciplinary actions.
Confidentiality
HR must stay informed about labor laws and regulatory requirements, ensuring that all HR practices and policies align with legal standards.
Compliance with Laws
These documents serve as standards for all employees within an organization.
Code of Ethics and Code of Discipline (Conduct)
The _______ outlines the company’s values and principles, guiding members’ conduct with integrity and honesty.
Code of Ethics
It is a public-facing document that establishes trust and credibility with stakeholders.
Code of Ethics
Violations of the _______ may result in disciplinary action, including termination.
Code of Ethics
This focuses on rules and compliance, providing a framework for addressing misconduct and ensuring accountability within the organization.
Code of Discipline
7 issues commonly encountered during daily work in the office and conducting business transactions.
-Conflict of Interest (COI)
-Commercial Bribery and Extortion
-Gifts
-Employee Theft
-Computer Theft
-Trade Secrets
-Insider Trading
Occurs when a person in a position has an “interest” that may motivate them to act in a way that is not in the best interest of the company.
Conflict of Interest (COI)
______ can manifest in various forms, including financial and power (influence) relationships.
Conflict of Interest (COI)
Involves offering or receiving considerations from external parties (e.g., suppliers) to influence favorable transactions with the employee’s company.
Commercial Bribery and Extortion
Deciding whether to accept tokens depends on an individual’s ethical values, company policy, and industry practices.
Gifts
Occurs when employees misuse company resources for personal gain (e.g., office supplies for home use or misappropriation of representation expenses).
Employee Theft
Unauthorized use of computer resources or software, including piracy or using unlicensed programs.
Computer Theft
Involves protecting company activities or assets that could significantly impact competitive advantage if disclosed to competitors (e.g., secret recipes, scientific formulas).
Trade Secrets
Involves trading securities based on non-public, proprietary information about a company, which, if made public, would impact stock prices and affect shareholders not privy to the information.
Insider Trading
Declares that “The State shall protect the consumer from misleading advertisements and fraudulent sales promotion practices”
CONSUMER ACT OF THE PHILIPPINES (R.A 7394)
Article 108
CONSUMER ACT OF THE PHILIPPINES (R.A 7394)
Article 108
“The State shall protect the consumer from misleading advertisements and fraudulent sales promotion practices”
Most advertisers have recognized that advertising to children is effective and eventually became a big business recently.
Ads Directed at Children
A special group of consumers who do not regard reason.
Children
The aim of advertisers is for the children to pester their parents to buy things for them.
Ads Directed at Children
There are some advertisements that are directed at arousing human emotional needs rather than reason.
Psychological Appeals
This occurs when advertisements tend to make a false claim of the benefit of the goods or services which is actually unsupported by valid evidence.
Exaggeration
Another deceptive technique in advertising is ambiguity or use of ______.
“Weasel Words”
Weasel words or ______.
Ambiguity
When ads are ______, they are considered deceptive.
ambigous
The use of ______ is often complementary to ______ in advertising.
weasel words, ambiguity
Are used to avoid or recoil from a direct or straightforward statement.
weasel words
It plays a very significant role in marketing goods and services.
Advertising
Without _______, the consumers would not be aware of the presence of diverse products and services available in the market.
advertising
Sometimes, even the mere presence of ______ can sell a product due to consumer perception that heavily advertised product is a product of “good value”.
advertising
_______ paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience.
Advertising
Advertising becomes unethical when the advertisements becomes: 3
-Misleading Advertisements
-Deceptive Advertisements
-Manipulative or Coercive Advertisements
Misrepresentation, making false claims with incomplete information but it makes claims in such a way that a normal person looking at it comes up with the wrong conclusion.
Misleading Advertisements
Makes a false statement or misrepresents the product.
Excluding crucial informations.
Deceptive Advertisements
Uses trickery or by devious or insidious means.
Manipulative or Coercive Advertisements
