ETHICS

Business

Business

A type of entity involved in commercial, industrial, or professional activities and operates for exchange of money or goods.

Profit

"________ are not necessarily money. It can be a benefit in any form which is acknowledged by the business (entity) involved in the business (activity)."

Sole proprietorship

Business structure owned and run by one person, for their benefit. Owner and business are considered the same entity.

Partnership

According to The Philippine Civil Code, it defines partnership as “Art. 1767. By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, to divide the profits among themselves.

General Partnership

all partners agree to have unlimited liability. It means that when the company is bankrupt, the personal assets of partners can be used to pay the remaining debt of the firm.

Limited Partnership

liability of partners is bounded only within their capital/investment in the company. Their assets are secured and will not be used to pay for the company’s debt.

Limited Liability Partnership

this type of partnership is common only to professional service businesses such as doctors, lawyers, accountants, engineers, architects, and other professional fields.

Advantages of Sole proprietorship

What form of business organization?

• The Easiest and inexpensive to put up

• All profits will go to the owner

• Complete and direct control of the business

• Freedom from government regulations

• No special taxation

• Easy to dissolve if desired

Disadvantages of Sole proprietorship

What form of business organization?

• Unlimited liability

• Difficult to raise capital or additional capital

• Limited managerial expertise

• Has a hard time finding qualified talents

• Consumes personal time

• Unstable business life

Advantages of Partnership

What form of business organization?

• Ease of Formation

• Availability of capital

• Diversity of expertise

• No special taxes

• Relative freedom from government control

Disadvantages of Partnership

What form of business organization?

• Unlimited liability

• Conflicts between partners

• The complexity of profit-sharing

• Limited life

Corporation

-an artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence.

-Considered a unique entity, separate from those who own it.

Advantages of Corporation

What form of business organization?

• Limited liability

• Ease of transfer of ownership

• Unlimited life

• Raise additional funds

Disadvantages of Corporation

What form of business organization?

• Double taxation

• Cost and complexity of formation

• Government restriction

Limited Liability Corporation (LLC)

A hybrid business that has characteristics of both corporation and partnership.

Cooperative

Well-known as “co-op” that is organized for-profit and non-profit. It is a form of business organization with members working together toward a common goal for their mutual benefit.

Advantages of Cooperative

What form of business organization?

• Ease of formation

• Voluntary organization

• Separate entity

• Limited liability

• Government support

• Low taxes

Disdvantages of Cooperative

What form of business organization?

• Limited Capital

• Inefficient management

• Lack of interest

• Corruption

• Government Intervention

• Conflict among members

Service Business

This is a type of business that provides intangible products.

Financial business

This type of service makes a profit through investment and asset management like banks, insurance, lending companies, and others.

Transportation service

This type of service includes logistics and sending people to a certain locations for a fee.

Utilities

This service provides public services such as water, electricity, telecommunication, and more.

Merchandising Business

It is also known as “buy and sell” where businessman buys good at a certain cost and sells it on a much higher price to earn a profit.

Retailers and distributors

These businesses act as middlemen to satisfy consumers by delivering goods produced by manufacturers.

Manufacturing business

This type of business buys raw materials and converts these materials into a new type of product.

Agriculture and mining businesses

Produce raw materials such as plants or minerals.

Manufacturers

Produce tangible goods from raw materials.

Real-estate businesses

Those who sell or rent properties such as land, residential, and commercial spaces and other buildings.

Information businesses

Those that sell intellectual properties such as publishers and internet and software companies.

Hybrid Businesses

A combination of two or more types of business.

Milton Friedman

The Social Responsibility of a Business is to Increase its Profit

Paul F. Camenisch

Life-sustenance and Life-enhancement

Ronald F. Duska

The Motive is not the Purpose

subjective and objective

The two main reasons for the existence of business are _________ and _____________

subjective

Your reason is _______________, if your motive to put up a business is because of desire of competition.

Accountability

It refers to the full responsibility for all our business decisions, actions/inactions, and conduct and shall perform our duties and functions with utmost responsibility, integrity, honesty, loyalty, and efficiency.

Fairness

It is upholding the value of justice and fair play amongst everyone we deal with, both internally and externally, striving always to look for a win-win situation.

Transparency

It is upholding the value of truthfulness in everything we do coupled with the quality of being open to scrutiny as we provide and disclose accurate material information in a promptly manner.

Corporate Accountability

It refers to the obligation and responsibility to give an explanation or reason for the company’s actions and conduct.

Accountability Structure

-It refers to the processes, people, and supports necessary to function effectively.

-The ability to account for your actions and performance to your stakeholders.

Technical skills

Encompass the ability to apply specialized knowledge or expertise.

Human skills

Are the ability to understand, communicate with, motivate, and support other people, both individually and in groups.

Conceptual skills

Are the skills and mental ability that managers must have to analyze and diagnose complex situations.

Social Responsibility

The willingness of one person or group to have faith or confidence in the goodwill of another person.

Innovation

Diverse teams lead to more innovative and effective ideas and implementation.

Localization

A company that employs a diverse workforce is better able to understand the demographics of the global consumer-marketplace

Adaptability

Organizations must be technologically and culturally adaptable in the modern economy.

Mismanaging Diversity

The underlying threat to mismanaging diversity arises through neglect of relevant rules and regulations.

Paradigms of Diversity Management

Culture is a matter of organizational behavior because it is inherently about how people act (mostly subconsciously), and thus requires a great deal of energy and effort to alter.

Resistance paradigm

There is a natural cultural resistance to change and equity across diverse groups. It requires extensive managerial efforts to overhaul.

Discrimination and fairness paradigm

The organization focuses simply on adherence to social and legal expectations. The diversity team and inclusion culture primarily come out of human resources and legal professionals fulfilling minimum requirements, so they are still fairly weak.

Access-and-legitimacy paradigm

Management has successfully elevated the culture from acceptance to active inclusion.

Learning-and-effectiveness paradigm

Management has successfully integrated inclusion in a way that is proactive and learning-based.

Women in Organization

It refers to the individuals in the organization on which the firms continue to hire them because of their characteristics and expertise.

Organizational Diversity

It refers to the organizations used to a variety of efforts to capitalize on diversity, including recruiting and selection policies.

Ethics

or moral philosophy are sets of principles that humans ought to do because that is what is “right” and/or “good”.

Ethos

means custom, character, nature, and disposition.

Ethical relativism

is a condition where one ethical behavior is not considered ethical or reasonable in one person or society because it is not the norms of one’s culture.

Morality

-The recognition of human to what is good or bad and what is wrong or right about their actions and thoughts.

-Refers to the degree of rightness or wrongness of actions or thoughts of an individual.

Moralis

which means custom or manner.

Business ethics

Also known as corporate ethics or professional ethics is applied ethics as it explores the principles and conducts of the business organization.

Corporate Social Responsibility

is a mission of a firm to be involved and create an impact on the society’s welfare and interest in economical, social, and environmental aspects parallel to the goal of the organization.

Business practices

are a set of governing rules that are being conducted to reach the goals of the firm.

Decorum and protocols

are examples of the practices in the company.

nepotism

employers give more favor to their relatives to be employed in their company.

Features of Business Policies

-Specific

-Clear

-Reliable

-Appropriate

-Simple

-Flexible

Advertising

Companies use different platforms to reach their prospective and loyal clients. It can be in different forms. Ads may appear in television, radio, magazines, newspapers, directories, billboards, leaflets and the most common today and the most used platform is online.

Marketing

involves the whole process of product development, logistics, promotion, and advertisement.

Bookkeeping

is a process of recording a day-to-day basis of transactions that pertains to the activities of the business that involves the finances of the company to keep track of flows of cash.

Reportorial Requirements

a company needs to accomplish for them to make a wise decision for the next operating year of the business and as compliance with the regulating agencies of government.

Documentation

Process of collecting evidence, mostly in physical form but can be in electronic format, that can be retrieved anytime for the validity of a certain claim or statement.

Philosophy

It is the study of the fundamental nature of knowledge, reality, and existence.

Philia

Means love

Sophia

Means wisdom

Metaphysics

Answers the question, “What is the nature of reality?” It is concerned with reality and existence. It is the philosophy of being.

Epistemology

Answers the question, “What is the nature of knowledge?” Logic is a key dimension to it.

Axiology

Answers the question, “What is the nature of values?”

Ethics

studies human conduct and examines moral values.

Aesthetics

values beauty, nature, and aesthetics experience (often associated with music, art, literature, dance, theater, and other fine arts).

Idealism

It is the oldest philosophy of Western Culture. It is simply based on ideas, the only true reality, the only thing worth knowing.

Realism

Reality exists independently of the human mind. World of physical object’s ultimate reality.

Neo-Theism

It focuses on God and the individual level that believe in the existence of a supreme being or deities through faith and reason.

Plato

Father of Idealism

Aristotle

Father of Realism

Thomas Aquinas

Father of Neo- Theism

Pragmatism

Deals with problems in a practical way, rather than by using theory or abstract principles.

Existentialism

A philosophical theory emphasizes the existence of the person as a free and responsible agent determining their development through acts of the will.

Analytic Philosophy

Philosophy should apply logical techniques to attain conceptual clarity, and that philosophy should be consistent with the success of modern science.

Eudaimonia

means happiness

Socrates

Dare to disagree

Aristotle

Let people seek fullfilment

Plutarch

Be a good role model

Epictetus

Build a resilient mind-set

Rufus

Keep track of your ethical progress

Epicurus

The art of happiness

Confucianism

Not technically a religion but more of a body of philosophical teachings. It is also considered as a way of life or ethical system that has a big impact on the economic development of countries where it is widely practiced such as Japan, China, Korea, Singapore, and Vietnam.

Confucius

Who founded the Confucianism?

Buddhism

It is considered one of the major world religions because of its number of followers that is about 470 million.

Siddhartha Gautama

Who founded the Buddhism?

Buddha

means “the enlightened one”, is not a god but considered an extraordinary man.