Good
Governance &
Social
Responsibility
Are Good Governance
& Social Responsibility
the same?
Good vs. Kind
Which one would you
choose?
The story of
Robinhood
Course Outcomes
At the end of the course, the student should be able to:
1. Define and discuss the principles and goals of business
ethics, good governance and social responsibility.
2. Explain the core principles underlying fairness, accountability
and transparency in governance and how the said principles
are applied within the corporate context.
3. Identify major global and local issues and developments that
have led towards a greater appreciation and understanding of
good governance and social responsibility.
Course Outcomes
At the end of the course, the student should be able to:
4. Examine and value their role as a citizen, future business
executive, entrepreneur, and employee, with regards to
advocating good governance
and social responsibility that are anchored on Filipino and
Catholic values and or regardless of religion and nationality.
5. Develop the ability to evaluate prevailing corporate practices
and how they respond and behave to government regulations
and expectations from the society and the community.
6. Come up with an individual business philosophy that outlines
one’s approach to good governance and social responsibility.
Good Governance refers to the principles,
processes, and institutions through which public
and private organisations are managed, directed,
and regulated to ensure accountability,
transparency, equity, and efficiency in decision-
making and service delivery.
Good Governance
encompasses the
mechanisms and practices
that promote ethical conduct,
respect for the rule of law,
and responsiveness to the
needs and interest of
stakeholders.
Good Governance is essential for fostering social
cohesion, economic development and political
stability.
It helps build trust
between
government and
citizens,
strengthens
institutions and
promotes
sustainable
development.
Characteristics of
1.Transparency: Ensuring that decision, processes,
and information are accessible , visible, and
understandable to all stakeholders.
2. Accountability: Holding decision-makers and
institutions responsible for their actions and
decisions, including providing mechanisms for
oversight and redress.
Characteristics of
3.Rule of law: Upholding decision-makers and
institutions responsible for their actions and
decisions, including providing mechanisms for
oversight and redress.
4.Participation: Encouraging active involvement of
citizens and stakeholders in decision-making
processes allowing for diverse perspectives and
voices to be heard.
Characteristics of
5. Responsiveness: Being responsive to the needs,
concerns, and aspirations of the people, and taking
timely actions to address them.
6. Equity and inclusiveness: Ensuring that all
individuals and groups, regardless of their
background or status, have equal access to
opportunities, resources, and services.
Characteristics of
7. Effectiveness and efficiency: Achieving desired
outcomes in a timely and cost-effective manner,
while maximising the use of resources and
minimising waste.
Chapter 1: Ethics and Business
WHAT IS ETHICS?
Ethics is derived from the greek word “ethos” which means
character, custom or habit.
It refers to the philosophical study of the concepts of moral
right and wrong and moral good and bad, to any
philosophical theory of what is morally right and wrong or
morally good and bad, and to any system or code of moral
rules, principles, or values.
WHAT IS ETHICS?
What is the nature of
Business?
• Nature of business describes the type of business it is
and what its overall goals are.
• It describes its legal structure, industry, products or
services, and everything a business does to reach its
goals.
Nature of Business means that the purpose of a business
is to provide services and products to meet the needs of
customers in the market.
Business Ethics are principles that guide decision-making
such as:
• Be transparent
• Invite feedback
• Consider impacts on employees, stakeholders,
and society.
• Reflect on past experiences to learn what you
could have done better.
Business Ethics are standards for morally right and
wrong conduct in business. Law, partially defines the
conduct, but “legal” and “ethical” are not necessarily the
same.
Why is Business Ethics important?
• To carry out work the right way.
• To promote moral conduct.
• To make them dedicated to ethical decision-making.
The Relationships of Business and
Ethics
• Corporates Social Responsibility
Businesses are increasingly expected to consider their impact on society
beyond financial performance. Corporate Social Responsibility (CSR) is
a concept that emphasises a company's responsibility to operate
ethically, contribute positively to communities, and minimise its
environmental impact.
The Relationships of Business and
Ethics
• Ethical Decision Making
Businesses face numerous ethical dilemmas in their day-to-day
operations, such as issues related to product safety, fair labor practices,
environmental sustainability, and transparency. Ethical decision-making
involves evaluating these dilemmas in line with moral principles and
making choices that align with ethical standards.
The Relationships of Business and
Ethics
• Stakeholder Relationships
Ethical business practices prioritise fair and honest dealings with all
stake holders, including customers,
employees, suppliers,
investors, and the wider community. Maintaining trust and
positive relationships with these stakeholders is crucial for long - term
success.
The Relationships of Business and
Ethics
• Legal and Regulatory Compliance
While legal requirements set the baseline for acceptable behaviour,
ethical considerations often go beyond mere legality. Ethical businesses
strive to comply with laws and regulations but also aim to uphold higher
moral standards and societal expectations.
The Relationships of Business and
Ethics
• Fair Treatment of Employees
Ethical businesses prioritise the fair treatment of employees, including
issues as fair wages, safe working conditions, and opportunities for
professional development. This contributes to a positive workplace
culture and can enhance employee morale and productivity.
The Relationships of Business and
Ethics
• Transparency and Accountability
Ethical businesses practices often involve transparency in
communication and accountability for actions. Open and honest
communications with stakeholders, including admitting mistakes and
taking responsibility for corrective actions, is a key component of ethcial
behaviour.
The Relationships of Business and
Ethics
• Sustainable Practices
Ethical considerations extend to environmental sustainability. Businesses
are increasingly expected to adopt eco-friendly practices and contribute
to the well-being of the environment, reflecting a growing awareness of
the global impact of business activities.
The Morality in Business
• Refers to the application of ethical principles and
values in the context of commercial activities.
• It involves making decisions and conducting business
operations in a manner that aligns with moral
standards, fairness, and societal expectations.
Key Aspects of Morality in Business
1. Honesty and Integrity
Morality in business emphasises the importance of honesty
and integrity in all dealings. This includes providing accurate
information to customers, suppliers, employees, and other
stakeholders. Transparent communication and truthful
representation of products or services contribute to a
trustworthy business reputation.
Key Aspects of Morality in Business
2. Fair Treatment
Treating all stakeholders, including employees, customers,
suppliers, and competitors, with fairness is a fundamental
moral principle in business. Fair treatment extends to areas
such as hiring practices, compensation, and opportunities for
advancement.
Key Aspects of Morality in Business
3. Respect for Employees
Moralities in business involves respecting the dignity and well-
being of employees. This includes providing a safe and
healthy work environment, fair wages, and opportunities for
professional development. Businesses that prioritise
employee well-being are more likely to build a positive
workplace culture.
Key Aspects of Morality in Business
4. Social Responsibility
Morally responsible businesses go beyond legal requirements
to contribute positively to society. This can involve initiatives
related to philanthropy, community development,
environmental sustainability, and ethical sourcing of materials.
Key Aspects of Morality in Business
5. Customer Satisfaction
Morality in business includes a commitment to providing
quality products or services that meet customer expectations.
This involves avoiding deceptive marketing practices, ensuring
product safety, and addressing customer concerns ethically.
Key Aspects of Morality in Business
6. Ethical Decision-Making
Businesses are often faced with ethical dilemmas, and moral
decision-making involves considering the impact of choices on
various stakeholders. Ethical decision-making frameworks
help guide businesses in evaluating options and choosing
courses of action that align with ethical principles.
Key Aspects of Morality in Business
7. Legal Compliance
While morality in business goes beyond legal requirements ,
adherence to laws and regulations is still a foundational
aspect. Morally upright businesses strive to comply with legal
standards and also consider the spirit of the law in their
operations.
Key Aspects of Morality in Business
8. Anti-Corruption Practices
Morality in business opposes corruption and bribery.
Businesses should have policies and practices in place to
prevent corruption, ensure fair competition, and promote
ethical behaviour within the organisation.
Key Aspects of Morality in Business
9. Environmental Stewardship
Morality in business includes a commitment to environmental
sustainability. This involves adopting eco-friendly practices,
minimising environmental impact, and contributing to initiatives
that promote a healthier planet.
Key Aspects of Morality in Business
10. Ethical Leadership
Moral principles in business often start at the top with ethical
leadership. Leaders who demonstrate commitment to ethical
behaviour set the tone for the entire organisation an influence
the ethical culture within the company.
