BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
Lesson title: Being a Professional of Integrity Materials:
Activity Sheet
Lesson Objectives:
1. Describe the role of ethics in a business environment References:
Business Ethics
2. Explain what it means to be a professional of integrity By: Stephen M. Byars & Kurt
Stanberry
Productivity Tip:
“We awaken by asking the right questions.” ― Suzy Kassem
A. LESSON PREVIEW/REVIEW
Introduction
Ethics consists of the standards of behavior to which we hold ourselves in our personal and
professional lives. It establishes the levels of honesty, empathy, and trustworthiness and other virtues
by which we hope to identify our personal behavior and our public reputation. In our personal lives,
our ethics set norms for the ways in which we interact with family and friends. In our professional
lives, ethics guides our interactions with customers, clients, colleagues, employees, and shareholders
affected by our business practices. Should we care about ethics in our lives? In our practices in
business and the professions? That is the central question we will examine in this chapter and
throughout the book. Our goal is to understand why the answer is yes.
Whatever hopes you have for your future, you almost certainly want to be successful in whatever
career you choose. But what does success mean to you, and how will you know you have achieved
it? Will you measure it in terms of wealth, status, power, or recognition? Before blindly embarking on
a quest to achieve these goals, which society considers important, stop and think about what a
successful career means to you personally. Does it include a blameless reputation, colleagues whose
good opinion you value, and the ability to think well of yourself? How might ethics guide your decision-
making and contribute to your achievement of these goals?
B. MAIN LESSON
Content and Skill Building
Below are the notes about the lesson for today. You may underline or highlight words or phrases that
you think is the main focus of the lesson.
1
BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
Acting with Integrity
Clients, customers, suppliers, investors, retailers, employees, the media, the government, members
of the surrounding community, competitors, and even the environment are stakeholders in a business;
that is, they are individuals and entities affected by the business’s decisions (Figure 1). Stakeholders
typically value a leadership team that chooses the ethical way to accomplish the company’s legitimate
for-profit goals. For example, Patagonia expresses its
commitment to
environmentalism via its “1% for the
Planet” program, which donates 1
percent of all sales to help save the
planet. In part because of this program,
Patagonia has become a market leader
in outdoor gear.
Figure 1
Stakeholders are the
individuals and entities
affected by a business’s
decisions, including
*clients *customers *suppliers *investors *retailers
z*employees *the media *the government *members of the surrounding
community *the environment and even *competitors. (attribution: Copyright
Rice University, OpenStax, under CC BY 4.0 license)
A stakeholder is a person, group or organization with a vested interest, or stake, in the
decision-making and activities of a business, organization or project. Stakeholders can
be members of the organization they have a stake in, or they can have no official
affiliation. Stakeholders can have a direct or indirect influence on the activities or
projects of an organization. Their support is often required for business and project
success.
Being successful at work may therefore consist of much more than simply earning money
andLO1. Describe
promotions. the also
It may role mean
of ethics in a our
treating business environment
employees, customers, and clients with honesty
and respect. It may come from the sense of pride we feel about engaging in honest transactions,
not just because the law demands it but because we demand it of ourselves. It may lie in
knowing the profit we make does not come from shortchanging others. Thus, business ethics
guides the conduct by which companies and their agents abide by the law and respect the rights
of their stakeholders, particularly their customers, clients, employees, and the surrounding
community and environment. Ethical business conduct permits us to sleep well at night.
2
BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
Nearly all systems of religious belief stress the building blocks of engaging others with respect,
empathy, and honesty. These foundational beliefs, in turn, prepare us for the codes of ethical
behavior that serve as ideal guides for business and the professions. Still, we need not
subscribe to any religious faith to hold that ethical behavior in business is still necessary. Just
by virtue of being human, we all share obligations to one another, and principal among these is
the requirement that we treat others with fairness and dignity, including in our commercial
transactions.
For this reason, we use the words ethics and morals interchangeably in this book, though
some philosophers distinguish between them. We hold that “an ethical person” conveys the
same sense as “a moral person,” and we do not regard religious belief as a requirement for
acting ethically in business and the professions. Because we are all humans and in the same
world, we should extend the same behavior to all. It is the right way to behave, but it also
burnishes our own professional reputation as business leaders of integrity.
Integrity – that is, unity between what we say and what we do – is a highly valued trait. But
it is more than just consistency of character. Acting with integrity means we adhere strongly to
a code of ethics, so it implies trustworthiness and incorruptibility. Being a professional of
integrity means consistently
LO2. Explainstriving
whattoitbe the best
means person
to be you can beofin all your interactions
a professional
with others. It means you practice what you preach, walk the talk, and do what you believe is
integrity
right based upon reason. Integrity in business brings many advantages, not the least of which
is that it is a critical factor in allowing business and society to function properly.
Successful corporate leaders and the companies they represent will take pride in their
enterprise if they engage in business with honesty and fair play. To treat customers, clients,
employees, and all those affected by a firm with dignity and respect is ethical. In addition,
laudable business practices serve the long-term interests of corporations. Why? Because
customers, clients, employees, and society at large will much more willingly patronize a
business and work hard on its behalf if that business is perceived as caring about the community
it serves. And what type of firm has long-term customers and employees? One whose track
record gives evidence of honest business practice.
Many people confuse legal and ethical compliance. They are, however, totally different and
call for different standards of behavior. The concepts are not interchangeable in any sense of
the word. The law is needed to establish and maintain a functioning society. Without it, our
society would be in chaos. Compliance with these legal standards is strictly mandatory: If we
violate these standards, we are subject to punishment as established by the law. Therefore,
compliance in terms of business ethics generally refers to the extent to which a company
conducts its business operations in accordance with applicable regulations, statutes, and laws.
Yet this represents only a baseline minimum. Ethical observance builds on this baseline and
reveals the principles of an individual business leader or a specific organization. Ethical acts
are generally considered voluntary and personal – often based on our perception of or stand on
right and wrong.
3
BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
Some professions, such as medicine and the law, have traditional codes of ethics. The
Hippocratic Oath, for example, is embraced by most professionals in health care today as an
appropriate standard always owed to patients by physicians, nurses, and others in the field.
This obligation traces its lineage to ancient Greece and the physician Hippocrates. Business is
different in not having a mutually shared standard of ethics. This is changing, however, as
evidenced by the array of codes of conduct and mission statements many companies have
adopted over the past century. These have many points in common, and their shared content
may eventually produce a code universally claimed by business practitioners. What central point
might constitute such a code? Essentially, a commitment to treat with honesty and integrity
customers, clients, employees, and others affiliated with a business.
The law is typically indebted to tradition and precedence, and compelling reasons are
needed to support any change. Ethical reasoning often is more topical and reflects the changes
in consciousness that individuals and society undergo. Often, ethical thought precedes and sets
the stage for changes in the law.
Behaving ethically requires that we meet the mandatory standards of the law, but that is not
enough. For example, an action may be legal that we personally consider unacceptable.
Companies today need to be focused not only on complying with the letter of the law but also
on going above and beyond that basic mandatory requirement to consider their stakeholders
and do what is right.
Skill-building
Question 1.
Explain ‘Business Ethics’ in brief.
Question 2.
Explain who are considered ‘Stakeholders’ in a business.
Question 3.
4
BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
Briefly explain the role of ethics in business.
Check for Understanding
Quick Test of Your Ethical Beliefs
Answer each question with your first reaction. Circle the number, from 1 to 4, that best
represents your beliefs, if 1 represents “Completely agree,” 2 represents “Often agree,” 3
represents
“Somewhat disagree,” and 4 represents “Completely disagree.”
1. I consider money to be the most important reason for working at a job or in an organization.
1 2 3 4
2. I would hide truthful information about someone or something at work to save my job.
1 2 3 4
3. Lying is usually necessary to succeed in business.
1 2 3 4
4. Cutthroat competition is part of getting ahead in the business world.
1 2 3 4
5. I would do what is needed to promote my own career in a company, short of committing a
serious crime.
1 2 3 4
C: LESSON WRAP-UP
FAQs
1. Do companies actually follow the practice of business ethics?
Yes, most companies follow ethical business practices because it enables a business to
function stably for longer periods, while they may have to compromise on a certain level of
profitability or growth/expansion, etc.
2. Why do some companies ignore business ethics?
It is not necessarily that they ignore business, it would be more like they fake ignorance for the
sake of exploiting a loophole or shortcoming which is prevalent in the legal system or is not paid
too much attention to by society as a whole, for the purpose of making higher profits or expanding
5
BAM 193: Good Governance & Social Responsibility
Teachers Guide Module #2
Name: _______________________________________________ Class number: _________________
Section: ____________ Schedule: _________________________ Date: ________________________
market growth or penetration. In the case they get called out for it or threatened with legal
reprimand they will apologies and tow the line, but have made their money. This kind of behaviour
has different results for different companies.
Thinking about Learning
A. Work Tracker
You are done with this session! Let’s track your progress. Shade the session number you just
completed.
B. Think about your learning
From a rating of 1-10, determine if you have learned all the learning objectives. What is the reason for
your rating?
__________________________________________________________________________________
__________________________________________________________________________________
What’s your favorite part of the module?
__________________________________________________________________________________
__________________________________________________________________________________
KEY TO CORRECTIONS
Activity 3.
Q1. Business ethics guides the conduct by which companies and their agents abide by the law and respect
the rights of their stakeholders, particularly their customers, clients, employees, and the surrounding
community and environment.
Q2. Clients, customers, suppliers, investors, retailers, employees, the media, the government, members of
the surrounding community, competitors, and even the environment are stakeholders in a business; that is,
they are individuals and entities affected by the business’s decisions
Q3. Answers may vary
Note: This is only a sample answer, student answers may be worded differently, but should ideally capture
the essence of the meaning.
