BESR The Core Principles Underlying Fairness, Accountability, and

THE NATURE AND FORMS OF BUSINESS ORGANIZATIONS Transparency in Business Operation and Stewardship
Proprietor- another term for the owner of the business 1. Fairness
Business -standard of judging.
-active process -When someone displays fairness in making decision, he/she pleases all
-Inputs (materials & services) brought together & distributed – to involved parties and offers a solution that is beneficial to everyone.
deliver/give to consumer goods Outputs. -Is giving to a person what is due to him/her.
AIM: To earn PROFIT In Business Context
3 TYPES OF BUSINESS ORGANIZATION -Fairness means balancing the interests involved in all decision-making
1. Service Businesses- provide services to customers rather than products. including those related to hiring, firing, and the compensation and reward
2. Merchandising Businesses.-reselling system.
3. Manufacturing Businesses -turn basic inputs into products which are -rewards and the way they are distributed are fair.
sold to consumers. 2. Accountability
-The most important aspect of preventing and detecting corruption is the
1. Sole Proprietorship-The owner has full control over the finances and sound accountability structures.
operations and decides alone. -explication and justification process.
Advantages: Tax preparation is faster, lower start-up cost, handling money -It is about testing, forming a judgment, and taking an action if necessary.
for business is easier, least government rules & regulation, can pass down -responsibilities.
business into her heir 3. Transparency
Disadvantages: Is personally liable for all debts and actions of the -considers intrinsic or ethical salience as an important feature of the
enterprise, lack of financial control because of looser structure of sole relational dimension of a person.
proprietorship, lack of financial control because of looser structure of sole -transparent approach makes a person more honest and sincere.
proprietorship
2. Partnership-business relationship between two or more people. Ethics in Business
TYPES OF PARTNERSHIP -ethos which means “characteristic way of thinking”.
On the Basis of Duration -provides us with a common understanding of the universal, objective, and
irreversible moral principles that should govern our human behavior and
+Partnership at Will - its fate depends upon the fate of the partners involved. guide our moral decisions
+Partnership for a fixed term-particular time period. the partnership ends on the date -These are rules of behavior based on ideas about what is morally good and
bad (Merriam-Webster Dictionary).
specified in the partnership deed. WHY ETHICS IS IMPORTANT IN BUSINESS
+Particular Partnership-just to complete a project. -Ethical conduct (corporate, professional or personal level) – direct
reflection of the principles and values which regulate the person and the
On the Basis of Liability of Partners institution he/she represents.
+General Partnership - is one where the liability of partners is unlimited and joint. -Principles & ideas have an impact on the relationships within the company,
efficiency, prestige, performance and retention of employees.
+Limited Partnership-one of the partners is limited, while that of the others is unlimited.
Ethical Issues in Business
+Limited Liability Partnership-all of the partners have limited liability 1. Ethical Issues in Finance.
TYPES OF PARTNERS -Tasks involve trading practices and conditions, and tax payments
+Active Partner - actively participates in the management of an Ex: fairness in trading practices. trading conditions. financial contracting
organization. sales practices. consultancy services. Internal & external audits. executive
+Dormant/Sleeping Partner - a partner who does not participate in the compensation. insider trading. bribery/kickbacks. misleading financial
management of a company. Analysis. fraud on securities. tax payments
+Secret Partner - whose association with the firm is kept a secret or is 2. Ethical Issues in Human Resource (HR) Management
unknown to outsiders. -HRM 's tasks include hiring and orientation, performance evaluation,
+Nominal Partner - The partners who are not real partners of a firm. Their training and development, labor relations, and health and safety concerns.
role as a partner of the firm is only to lend their name and reputation to Ex: discrimination by age. gender preference. sexual orientation. race
benefit the company. Ethnicity. Disability. physical appearance
2 Types of Nominal Partner 3. Ethical Issues in Sales and Marketing
*Nominal Partner by Estoppel- words accepts that he is a partner of a -Tasks involve protection of consumers and honesty in delivery.
partnership firm. -Ethics in marketing includes practices in pricing, which involves unlawful
*Nominal Partner by holding out- not a partner of a firm, but does not acts such as price manipulation and price skimming.
deny Ex: promotion of obsolete or harmful products/services. possible health
Advantages: Lacks formality. It is easy to start. You share the burden. You hazards or financial risks. protection for the privacy and autonomy of
have companion and support. Has expertise, skills, experience, and consumers. truthfulness in advertising. Honesty in price and delivery
connections to the business, thus giving it a greater chance of success. 4. Ethical Issues in Production
Better decision making. Two heads are better than one. There is privacy. - Task includes that its products do not inflict unnecessary harm.
Easy access to profits. More funds are available. Ex: Tobacco products. Output can have adverse effects on the environment
Disadvantages: Does not have any independent legal status. It is easy to like air pollution, destruction of habitats, and urban sprawl.
start. Has no separate legal personality. Lack the sense of prestige. More
difficult to raise money than a corporation. There is a potential of Code of Ethics in Business
differences and conflicts. Decision-making can be slower. The profit must be
-Is a set of rules about good and bad behavior.
shared among the partners.
-It is a guide of principles designed to help professionals conduct business
Require a lot of time and energy Subject to income tax There are limits on
honestly and with integrity.
business development like unlimited liability
-A code of ethics document may outline the mission and values of the
3. Corporation- entity created by law business or organization
Advantages: The liability of the shareholders of a corporation is limited up 1. Vision-something that you imagine; a picture that you see in your mind
to the amount of their investments. A publicly held corporation may sell 2. Values-something important or useful.Helps to ensure the company goals
shares or issue bonds to raise substantial amounts. It is easy for a 3. Mission-a specific task. guides the business in its decision-making.
shareholder to sell shares in a corporation. A corporation’s life has no limit, 4. Principles-moral rules
ownership can pass through many generations
Disadvantages: The corporation pays taxes on its income depending on its
type and the shareholders pay dividend taxes, so income gets taxed twice.
The management team of a corporation can operate the business without
any real oversight from the owners.
The Classical Philosophers and Philosophies and Their -In business, Filipino customers are normally sensitive to hear a No for an
answer, hence, one will get a Yes, but might be disappointed afterwards
Implications on Business 6. Mañana habit
1. Socrates (469-399 BCE)
-mañana means tomorrow or the future.
- “The Gad-fly at the Marketplace”
-in English as procrastination and as mamaya na in Filipino.
- have shaped the cultural and intellectual development of the world
-putting off something until another time.
- “The unexamined life is not worth living.”
-In business, mañana habit could lead to less efficient workforce. It could
- a way of thinking that allows individuals to define their own purpose of
also lead to losing customers in case one is into delivery business. When
learning and exploring its purpose through open-minded questioning of
he/she always postpones doing something
what they hold to be true.
7. Delicadeza
- “Dare to Disagree”
-Delicadeza “daintiness”
2. Plato
-It is defined as acting in a manner which is refined or being delicate in
- “The Philosopher King”
taste.
- “Good people do not need laws to tell them to act responsibly, while bad
-walang delicadeza or makapal ang mukha (thick-faced)
people will find a way around the laws.”
-In business, it is best to do what is right, what is legal, and what is ethical.
- Plato maintains a virtue-based eudemonistic conception of ethics. That is
After all, goodwill attracts good vibes!
to say, happiness or well-being (eudaimonia) is the highest aim of moral
8. Hiya
thought and conduct, and the virtues (aretê: excellence) are the requisite
-This is a sense of social propriety and it conforms with established cultural
skills and dispositions needed to attain it.
standards.
3. Aristotle (384-322 BCE)
9. Pakikisama/pakikipagkapwa-tao
- is a towering figure in ancient Greek philosophy
-It is treating others as equal, and with respect and integrity.
- “Happiness is the meaning and the purpose of life, the whole aim, and
10. Family orientation
end of human existence.”
-It is the closeness of the Filipino families that makes them the model of
- “Let people seek fulfillment.”
most business organizations.
- happiness is our highest goal.
-it is said that it is not advantageous to hire relatives because one cannot
- In relation to business, Aristotle concludes that the role of the leader is to
just easily fire them even though he/she is dissatisfied with their work
create an environment in which all members of an organization can realize
performance.
their potential.
11. Suki system
4. Immanuel Kant (1724-1804).
-Loyal customer
- “Duty based Ethics”
-Normally, the supplier would give discounts, good quality products or
- most influential philosophers in the history of Western Philosophy.
service, or even “credit line” once the trust is earned.
- he is focused on motives and the willingness of individuals to act for the
12. Bayanihan/team spirit
good of others, even if the action might result to personal loss.
-bayanihan meant "being a bayan" and is being used to refer to a spirit of
5. Jeremy Bentham and John Stuart Mill
unity within a group, or individual cooperation and joint efforts
- “Utilitarianism”
-In business where interactions and the willingness (or unwillingness) to
- Revolves around the concept of “the end justifies the means”.
collaborate with others will make or break a business.
- It believes that outcomes, as a result of an action have a greater value
13. Palabra De Honor
compared to the latter.
-Palabra de Honor -"Word of Honor"
Utilitarianism
-individual's unwritten promise
an action is morally right when the majority of people benefit from it.
-In business when one promised his/her employees of a salary increase
* the greatest happiness of the greatest number should be the guiding
after six months of working in his/her enterprise, then he/she should really
principle of conduct.
give them an increase when they have reached six months.
* moral theory that advocates actions that promote overall happiness or
14. Lakas ng loob
pleasure and reject actions that cause unhappiness or harm.
-Courage
15. Pakikipagsapalaran
Filipino Value System and Their Influence in Business Practices
-being venturous is the ability of a person to take risks, even if they are
1. Bahala Na
prone to a potential loss.
-Bahala was derived from the word Bathala, who was worshipped by the
16. Frugality/pagtitipid
Filipinos during the Pre-Spanish period.
-This is known as economical management of resources, being careful in
-In business You cannot just put its life in the hands of fate. Everything has
spending, and avoiding unnecessary expenses.
to be carefully studied or planned; otherwise, all of your efforts will go
down the drain.
2. Utang na loob
-With this system, people are forced to do something in exchange for favors
that others did.
3. Ningas-cogon
-Ningas is a noun that means flame, burning, or fire, while cogon is a plant
GOOD LUCK
that can be quickly burnt with its presence.
-the swift burning of cogon, which connotes the eagerness of the Filipinos
just at the beginning, but then rapidly lose interest shortly after it begins, or
MGA PAKARAT!!!!!
lack of follow-up.
-In business The enthusiasm is there at the start of the venture but since it
is not one’s inclination, then he/she gradually loses his/her interest.
4. Padrino system (palakasan/patronage system)
-Padrino system, or patronage in Filipino culture and politics, is the system
of value in which one gets support, endorsement, or political appointment
through family affiliation (nepotism) or friendship (cronyism), as opposed to
one's worth.
-In business Businessmen can quickly get business deals using padrino
system if the padrino poses as go-between presenting and vouching his
character to close the deal.
5. Amor propio / self-respect
-Amor propio is a Spanish term meaning caring for oneself, or self-love. It is
a feeling of self-esteem or self-respect that prevents a person from
swallowing his or her pride.