KATRINA GRACE C.
ANAPADA
Bachelor of Science in Accountancy
AE 18 – Governance, Business Ethics, Risk Management & Internal Control
BSA 2-1
Module 3: Business Ethics
July 22, 2021
CHAPTER QUIZ
Assessment Questions
1. What is the basic purpose of a code of ethics for a profession?
Code of ethics entails all the obligations that professionals must respect when carrying
out their duties as a professional in whatever field they are. It includes the core values, behavior
that should be adopted and conducted while performing their professions. A code of ethics
established by a professional order as a way to protect the public and the reputation of the
professionals. People who violates their code of ethics will face disciplinary actions that can
range from a warning or reprimand to dismissal or expulsion from their professional order. Code
of ethics is designed to ensure employees are behaving in a manner that is socially acceptable and
respectful of one another. It also allows businesses or management to set a baseline expectation
for what is socially acceptable and how professionals should approach problems it can help
company to indicate customers that it values integrity, define the terms of ethical behavior at
work and guide decision-making in difficult situations. knowledgeable code of ethics sets a
typical that each member of the profession can be expected to satisfy.
2. Name and explain the characteristics and values associated with ethical behavior.
Integrity has critical connection with ethical behavior. A person who has integrity
demonstrate good character by being honest and accuracy of actions.
Honesty is essential in building trust in any kind of relationship even between organizations
and its key publics. If we are is not honest, there is no way we can have ethical behavior and
it will be difficult for others to trust us. On the other hand, if we are honest, people will
naturally trust and respect us.
Trustworthiness and Promise Keeping is important not just for personal relationships but
also to business, especially on business partners, suppliers and customers. Trustworthiness is
gain through consistently keeping promises and trust of other people by fulfilling
commitments and duties.
Loyalty (Fidelity) and Confidentiality. An ethical employee owes the company a good
day’s work and his or her best effort, whether the work is stimulating or dull. A duty of
loyalty and our best effort are our primary obligations as employees. It is important for
company to have employee who can keep whatever information of the company confidential
at all cost.
Fairness and Openness establishes moral standards for decisions that affect others. Fair
decisions are made in an appropriate manner supported appropriate criteria. a good person
scrupulously employs open and impartial processes for gathering and evaluating information
necessary to create decisions.
Caring for Others or acting out of compassion rather from a way of duty, is a reminder to
enforcement officers that usually an ethical solution is also to create peace through consensus
and understanding, instead of resolve issues formally through charges. Caring for others is a
way to build a strong relationship among people inside the company.
Respect for Others or being courteous is a behavior that we are taught since we are young,
but still not everyone has respect for others. It is one of the most important determinants of
being ethical. If one does not pay respect to others, it is said that he will not be respected too
by other people. In business there are many ways to when respect is exercise, employees need
to respect fellow employees, customers, and executives, and executives respect need to
respect their employees as well as the customers, customers need feel that they are respected.
Responsible Citizenship being a responsible citizen is connected in ethical behavior, an
ethical person must also have a sense of being responsible to his duties as a citizen of the
country. Obeying laws and regulation, exercising democratic rights, participating in social
consciousness and awareness is associated by having ethical behavior.
Pursuit of Excellence
Accountability an ethical behavior is associated with one’s being responsible or accountable
for the action and decision made and the possible consequences and for being an example to
other people. Being accountable is similar to an obligation or willingness to accept
responsibility or to take account for one’s actions.
3. Explain why ethical behavior is necessary in the practice of one’s profession.
Ethical behavior is necessary in the practice of one’s profession because as a professional
or authority in the society you need to perform your job as a professional or your duty as a leader
in the community according to laws and regulations, rules, values and acceptable ethical
behaviors in the society. If professionals and authorities have no integrity, honesty, accountability
and etc. the society will not function in an orderly manner because professionals and authorities
are stealing, lying or deceiving others.
4. Describe the inherent conflict between ethics and pursuit of profit.
The pursuit of profit must not conflict with the concept of what is right or unethical in the
conduct of business. One consideration for pursuing business is profit. However, that doesn’t
mean that anyone who is into business has the right to employ whatever means they want to
obtain profits. There is no absolute freedom for anyone to implement whatever means to gain
profits, mostly if those means are unethical, abusive or harmful to the society or environment. In
addition, people often joke that business ethics is a contradiction in terms. What they are referring
to is the apparently inherent between ethics and pursuit of profit. The implication is that if
company has to choose between profits and doing the right thing, profit will always win.
5. How is indirect misrepresentation of a product undertaken?
Indirect misinterpretations are characterized by omitting adverse information about the
product or services. It is passive deception and not as obvious compared to direct
misinterpretations. But it still contributes to the impression that businessmen are liars and are out
to make quick money. It includes caveat emptor and business ignorance. Indirect
misinterpretations are purposely done so that the product or services maintain its good images by
deliberately omitting adverse information about the product or services to mislead customers into
thinking that the product is reliable and durable and practically problem free.
Case Problem: A manufacturing company provides jobs for many people in a small town where
employment is not easy to find. The company has stayed in the town even though it could find cheaper
workers elsewhere, because workers are loyal to the company due to the jobs it provides. Over the years,
the company has developed a reputation in the town for taking care of its employees and being a
responsible corporate citizen. The manufacturing process used by the company produces a by-product
that for years has flown into the town river. The byproduct has been considered harmless but some people
who live near the river have reported illnesses. The by-product does not currently violate any anti-
pollution laws.
Questions: What are the issues of integrity, ethics and law posed in the case study? What options do the
company have, and what should it do and why?
The ethics does not permit unscrupulous or adoption of end-justifies-the means
philosophy. It is very unethical for businesses to make profit at any means even that method will
affect others.
The manufacturing company does not commit any illegal actions nor violation of any law.
However, the company does not take accountability over the consequences of their operation.
The company must immediately address this issue so that the impact will not worsen and no
other people will get sick. The company can have option to discuss the problem with the board or
any individual responsible in this kind of issue within the company and take initiative to address
the problem or communicate with the local authorities to ask for any possible solution. As a
response to the residents' complaints and reported illnesses. There are ethical standards that
companies must follow these includes fair competition, global as well as domestic justice, social
responsibility, concern for environment. The company failed to exercise business ethics and did
not considered the social, environmental impact to the community they are located in.
References:
https://www.lawyersnjurists.com/article/the-importance-of-ethics-in-the-workplace/
https://www.civilserviceindia.com/subject/General-Studies/notes/codes-of-ethics.html
https://pdfcoffee.com/chapter-6-review-questions-pdf-free.html
https://www.facebook.com/permalink.php?id=108289670891062
https://opentextbc.ca/ethicsinlawenforcement/chapter/2-5-ethics-of-care/
