lesson 1 GOOD GOV

Business

involves producing goods and

services to fulfill societal needs and

generate profits.

Customers

Buyers or users of

products/services

Employees

People working for the

organization.

Suppliers

Providers of goods/services.

Investors

Providers of capital.

Government regulations

– Rules

businesses must follow.

Communities

People affected by

business activities

BUSINESS FUNCTIONS

➔ Marketing –

➔ Finance –

➔ Operations –

➔ Human resources –

➔ Supply chain management –

ETHICAL CONSIDERATIONS

➔ Fair competition – Competing honestly

without unfair practices.

➔ Labor practices – Ensuring fair and safe

treatment of workers.

➔ Environmental impact – Effects of

business on the environment.

➔ Consumer protection – Safeguarding

customer rights and safety.

➔ Transparency – Openness in business

actions and decisions.

TYPES OF BUSINESSES

TYPES OF BUSINESSES

➔ Sole proprietorships – Single-owner

businesses.

➔ Partnerships – Businesses owned by two

or more people.

➔ Corporations – Separate legal entities

owned by shareholders.

➔ Cooperatives – Member-ow

THE IMPORTANCE OF ETHICS IN BUSINESS

1. ENHANCING TRUST – Ethical business practices

build credibility with stakeholders and foster long-term

relationships.

2. LEGAL COMPLIANCE – Avoid legal risks by

adhering to ethical guidelines and

regulatory frameworks.

3. CORPORATE REPUTATION – Ethical

companies attract customers, investors,

and talent.

4. EMPLOYEE SATISFACTION – A positive

ethical environment boosts morale,

productivity, and retention.

5. SUSTAINABILITY – Ethical businesses

contribute to environmental and social

sustainability, ensuring long-term viability

THE RELATIONSHIP BETWEEN ETHICS AND

BUSINESS

ETHICS IN DECISION- MAKING

➔ Integrating ethical considerations in

business strategies and daily

operations.

CONFLICT OF INTEREST

➔ Balancing profitability and ethical

responsibilities, avoiding unethical

shortcuts.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

➔ Going beyond profit to contribute

positively to society.

ETHICAL LEADERSHIP

➔ The role of business lead

THE MORALITY OF PROFIT- MOTIVE

a. PROFIT AS A NECESSITY – Businesses need

profits to sustain operations, invest in

growth, and create jobs.

b. ETHICAL PROFIT- MAKING – Profits earned

through fair and ethical means, without

exploitation or harm.

c. EXPLOITATION VS. ETHICAL PRACTICES –

Differentiating between responsible

profit-making and unethical practices (e.g.,

fair wages vs. sweatshops).

d. SUSTAINABILITY AND PROFIT – Ethical

businesses focus on long-term gains rather

than short- term financial manipulation.

BUSINESS ETHICS

➔ Refers to the principles and standards that

guide ethical decision-making in business,

ensuring

fairness,

transparency,

accountability, and social responsibility in

dealings with stakeholders.

➔ It covers areas like corporate governance,

fair labor practices, sustainability, and

legal compliance.

ETHICAL DECISION- MAKING FRAMEWORKS

● UTILITARIAN APPROACH

o Maximizing benefits for the greatest

number. Focus on consequences.

● DEONTOLOGICAL APPROACH

o Following moral rules and duties

regardless of consequences. Focus

on duties.

● VIRTUE ETHICS

o Emphasizing moral character and

integrity. Focus on character.

● CORPORATE ETHICAL CODES

o How businesses implement ethical

decision-making frameworks

CORPORATE GOVERNANCE STRUCTURES

a. Board of directors

b. Ethics committees

c. Compliance officers