St.
Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
Study Guide
in
Business Ethics
and
Social Responsibility
Page 1|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
St. Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
STUDY GUIDE
Lesson 4: The Core Principles underlying fairness, accountability, and transparency in
business operation and stewardship (respect for others’ property)
Video: https://www.youtube.com/watch?v=cUAScafhLRs
The Core Principles of Good Corporate Governance
Corporate Governance is the system by which businesses are directed and controlled.
Good Corporate Governance is a key factor in underpinning the integrity and
efficiency of a company.
Poor Corporate Governance can weaken a company’s potential, can lead to financial
difficulties and in some cases can cause long-term damage to a company’s reputation.
A company which applies the core principles of good corporate governance; fairness,
accountability, responsibility and transparency, will usually outperform other companies and
will be able to attract investors, whose support can help to finance further growth.
Benefits Corporate Governance
Strong Corporate Governance - maintains investors’ confidence, whose support can
help to finance further growth. Companies who implement the principles of good
corporate governance into working environment life will ensure corporate success and
economic growth. They are the basis on which companies can grow.
Fairness – the moral obligations arising from the core ethical value of fairness are always
associated with the exercise of power to render judgements that bestow benefits or impose
burdens. Fairness is making judgements without reference to your personal feelings but
solely based on what the business needs
Integrity – We shall act righteously, morally, and legally. We shall uphold the simple
truth ‘honesty is the best policy’ and endeavor to act under the highest standards of
ethics.
Accountability – in ethics and governance, accountability is answerability, blame
worthiness, liability, and the expectation of account-giving. It is also the obligation of an
Page 2|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
This document is a property of St. Bernadette College of Valenzuela. Any an-authorized reproduction is prohibited.
St. Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
STUDY GUIDE
individual or organization for its activities, accept responsibility for them, and to disclose
the results in a transparent manner.
Accountability. – What it is:
• To be liable to explain or justify one’s action and decisions.
• Process of explanation and justification
• Testing, forming a judgment and taking action
• Implies responsibility
Accountability. – What is not:
• Not synonymous with responsibility
• Not imply management relationship
• Not a “one off” annual event
• Not the same as appraisal
• Not about confrontation
Transparency – it implies openness, communication and accountability. It is the lack of
hidden agendas or conditions, accompanied by the availability of full information required
for collaboration, cooperation, and collective decision making
The Relationship of Accountability/Stewardship/Responsibility with Ethical Businesses
Servant Leaders. Go beyond their own self-interest and focus on opportunities to help
followers grow and develop.
Servant Leadership. Focuses on serving the needs of others, research has focused on its
outcomes for the well-being of followers.
Stewardship
Stewardship is taking care of something like a large household, the arrangements for a
group or the resources of a community.
e.g. stewardship is the responsibility of managing the staff of an estate.
e.g. stewardship is the act of making wise use of the natural resources provided by the
earth.
Stewardship in business refers to the responsibility that companies have to understand
and manage their impacts on the environment in any number of ways. Practicing
Page 3|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
This document is a property of St. Bernadette College of Valenzuela. Any an-authorized reproduction is prohibited.
St. Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
STUDY GUIDE
stewardship can help a business find sustainable practices, improve its reputation among
consumers and even save money.
Stewardship simply means receiving, developing, sharing and returning God’s Gift.
Video: https://www.youtube.com/watch?v=IexjUqXYcts&t=22s
Notions for Competence, Professionalism and Responsibility
Minimum competencies expected of Professionals:
1. Technical Skills - encompass the ability to apply specialized knowledge or expertise.
When you think of the skills of professionals such as civil engineers or oral surgeons, you
typically focus on the technical skills they have learned through extensive formal
education.
2. Human Skills - is the ability to understand, communicate with, motivate, and support
other people, both individually and in groups, which defines human skills. Many people
are technically proficient but poor listeners, unable to understand the needs of others, or
weak at managing conflicts.
3. Conceptual Skills - are the skills and the mental ability that managers must have to
analyze and diagnose complex situations. Decision-making, for instance, requires
managers to identify problems, develop alternative solutions to correct those problems,
evaluate those alternative solutions, and select the best one.
The Notion of Organizational Diversity and the Role of Women in Business Organizations
Page 4|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
This document is a property of St. Bernadette College of Valenzuela. Any an-authorized reproduction is prohibited.
St. Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
STUDY GUIDE
Organizations use a variety of efforts to capitalize on diversity, including recruiting and
selection policies, as well as training and development practices. Effective, comprehensive
workforce programs encouraging diversity have three distinct components.
First, they teach managers about the legal framework for equal employment opportunity
and encourage fair treatment of all people regardless of their demographic
characteristics.
Second, they teach managers how a diverse workforce will be better able to serve a diverse
market of customers and clients.
Third, they foster personal development practices that bring out the skills and abilities of
all workers, acknowledging how differences in perspective can be a valuable way to
improve performance for everyone. Much concern about diversity has to do with fair
treatment.
Women in Organizations
Several studies show that business organizations stand to gain from the presence of
women, especially on their Boards of Directors. Although women will remain a distinct minority
on boards for the foreseeable future, women continue to be appointed to boards through their
personal relationships as well as track records and appropriate expertise (Burke, 1997). Findings
appear to show that, among others:
(1) firms employing more women managers have probably done a better job of recruiting
capable managers from the total available talent pool, and consequently will be in a better
position to link with customers, employees, and other constituencies (Shrader et al.,
1997);
(2) firms having a higher proportion of women serving on their boards do engage in
charitable giving to a greater extent than firms having a lower proportion of women serving
on their boards. Further, the results suggest a link between the percentage of women on
boards and firm. philanthropy in the areas of community service and the arts, but found
no link between women board members and firm giving issues (Williams, 2003);
Page 5|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
This document is a property of St. Bernadette College of Valenzuela. Any an-authorized reproduction is prohibited.
St. Bernadette College of Valenzuela
#6121 Gen. T. De Leon Valenzuela City
SENIOR HIGH SCHOOL DEPARTMENT
STUDY GUIDE
(3) investors (in Singapore) value the diversity and potential contribution of women on the
board of directors, that is, the appointment of female directors may be viewed as a means
of improving corporate governance affirms whose boards may be dominated by old-boys
networks, besides adding to the diversity of corporate boards (Ding and Charoenwong,
2013); and
(4) since women represent a significant proportion of the customer base in many
corporations, the presence of female directors would bring the female perspective to the
boardroom and positively impact the bottom-line of companies, as explained by evidence
that male CEOs find the viewpoints of female directors beneficial in understanding female
clients (Burke, 1994).
Page 6|6
Subject: BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Strand: Accountancy, Business, and Management
Prepared by: Ms. Shiela May D. Piquero
Reviewed by: Ms. Diane J. Montemayor
This document is a property of St. Bernadette College of Valenzuela. Any an-authorized reproduction is prohibited.
