Business and Environmental Ethics Overview

What is the primary objective of discussing business ethics?

To analyze different philosophical perspectives on ethical issues in business.

What is profit in the context of business?

A form of anticipated reward or compensation for efforts, skills, and capital investment.

What does profit maximization imply about a business's responsibilities?

The only responsibility of business is to make profit while engaging in open and free competition without deception or fraud.

According to Peter Drucker, how does an enterprise relate to society?

An enterprise is an organ of society, and its actions and decisions significantly impact society and people.

What are some factors that a businessman must consider beyond profit?

Customer satisfaction, fair treatment of employees, and respect for the environment.

How does ethics influence business practices?

Ethics dictates the correct conduct to follow, as laws alone are insufficient.

What are systemic issues in business ethics?

Questions about the morality of capitalism, laws, regulations, and social practices within which business operates.

What are corporate issues in business ethics?

Questions about the morality of the activities, policies, practices, or organizational structure of an individual company.

What are individual issues in business ethics?

Questions about the morality of decisions, actions, or character of an individual in a business setting.

What is unfair competition?

Unethical business practice that can harm competitors or the market.

What defines a monopoly?

A market situation where there is only one provider of a product or service, characterized by a lack of competition.

What is an oligopoly?

A market situation with few sellers for a product or service, where members often act as friendly competitors.

What is perfect competition?

A situation where no firm or consumer is large enough to dictate prices, which are determined by supply and demand.

How does competition in business differ from war?

In business competition, parties vie to serve customer needs rather than directly confront each other.

What is the difference between fair and unfair competition?

Fair competition adheres to ethical rules of conduct, while unfair competition involves unethical business practices.

What role do managers and business leaders play in ethical situations?

They must be prepared to respond to complex situations bearing ethical consequences.

Why is ethics considered important in business?

Business is integral to human society, and ethical considerations guide conduct beyond legal requirements.

What does it mean when it is said that 'what is legal may not necessarily be moral'?

Laws do not always align with ethical standards, highlighting the need for moral judgment in business.

What is the impact of business actions on society?

Business actions have a decisive impact on the social scene, affecting communities and individuals.

What motivates healthy competition among firms?

The desire to produce better products or offer better services.

What is the significance of ethical behavior in business?

Ethical behavior fosters trust, sustainability, and long-term success in business relationships.

What is the primary goal of unfair competition?

Profit maximization through unethical business practices.

What are deceptive trade practices in unfair competition?

Misrepresentation and false advertising.

What constitutes business interference in unfair competition?

Preventing a competitor from continuing their business process or contract.

What are anti-competitive market practices?

Practices such as under-cost selling to eliminate competitors.

What is defamation in the context of unfair competition?

Badmouthing a competitor to customers.

What does caveat emptor refer to in unfair competition?

Indirect misrepresentation by withholding information from the buyer.

What are violations of intellectual property rights in unfair competition?

Infringements on copyrights, patents, trademarks, and service marks.

What does the Intellectual Property Code of the Philippines state about misleading packaging?

Selling goods that give the appearance of being from another manufacturer to mislead buyers.

What does the Intellectual Property Code say about deception in service offerings?

Inducing false belief that one is offering services of another identified by the public.

What is a false statement in trade according to the Intellectual Property Code?

Making false statements or acts in bad faith to discredit another's goods or services.

What is the first theory of determining fair pricing?

Man is entitled to enjoy the fruits of his labor, setting a reasonable price for his produce.

What is the second theory of determining fair pricing?

Price is determined by the law of supply and demand, achieved through fair competition.

What is a closed book policy in pricing?

Concealing the true cost of a product, leading to potentially unfair pricing.

What impact does a suggested retail price have on consumers?

It can create doubt and suspicion regarding price fairness.

What is the issue with electronic scanners in pricing?

They are not foolproof and can be manipulated or fail.

How do promotional pricing strategies affect consumer perception?

They create the illusion of lower prices, influencing buying behavior.

What is follow-the-leader pricing?

Setting prices to make products appear similar to well-known brands.

What is price gouging?

Increasing prices of essential goods during emergencies or calamities.

What is price fixing?

Collusion among retailers to control product prices.

Is it ethical to charge different prices to different customers for the same product?

This raises ethical concerns regarding fairness in pricing.

Is it ethical to charge different customers different prices for the same product or service?

This question raises ethical considerations regarding fairness in pricing.

What is product misrepresentation?

Product misrepresentation occurs when information is transformed into misinformation.

What is deceptive advertising?

Deceptive advertising includes false statements or representations of a product without making any statements.

What are weasel words in advertising?

Weasel words are terms used to avoid making direct statements, such as 'helps,' 'can be,' or 'up to.'

What is exaggeration in advertising?

Exaggeration occurs when advertisements make unsupported claims about the benefits of goods or services.

What psychological appeals are used in advertising?

Psychological appeals target human emotional needs such as power, prestige, enjoyment, and self-esteem.

Why are children considered a special group of consumers in advertising?

Children often do not regard reason and can be influenced to pester their parents for products.

What does Article 11 of the Philippine Law on Advertising state?

It prohibits the dissemination of false, deceptive, or misleading advertisements that could induce purchases.

What must advertisements comply with according to Philippine Law?

Advertisements must not make claims not contained in the label or approved by the Department of Health.

What is unlawful regarding the advertisement of food, drugs, cosmetics, devices, or hazardous substances?

It is unlawful to advertise any of these products in a manner that is false, misleading, or deceptive, or likely to create an erroneous impression regarding their character, value, quantity, composition, merit, or safety.

What must be true for an advertisement of a food, drug, cosmetic, or device that claims to comply with a prescribed standard?

The product must actually comply with the prescribed standard.

What is required for advertisements referencing laboratory reports of analysis for food, drugs, cosmetics, or devices?

The laboratory report must be duly approved by the Department of Health (DOH).

What is necessary for a product to be advertised as a food, drug, cosmetic, device, or hazardous substance?

The product must be duly registered and approved by the Department of Health (DOH).

What is the role of PANA (Philippine Association of National Advertisers)?

PANA is engaged in a continuing campaign to regulate abuses committed by untruthful advertisers.

What is whistle-blowing?

Whistle-blowing is the disclosure by an employee of confidential information relating to danger, fraud, or other illegal or unethical conduct in the workplace.

Who is considered a whistle-blower?

A whistle-blower is someone in an organization who witnesses behavior contrary to the organization's mission or threatening to the public interest and decides to speak out.

What are the conditions for whistle-blowing?

1. It must cause unnecessary harm to third parties. 2. It must violate human rights. 3. It must run counter to the defined purpose of the organization. 4. It must inform the public.

What are the four elements of whistle-blowing?

1. Disclosure must be made in good faith. 2. Disclosure must be made by a current, former, or prospective employee. 3. Information must be linked to employer misconduct. 4. Evidence of misconduct and identity of the wrongdoer must exist.

What are the two types of whistle-blowing?

1. Internal whistle-blowing occurs within the organization. 2. External whistle-blowing occurs outside the organization.

What are potential consequences for a whistle-blower?

1. Loss of job or forced retirement. 2. Negative job performance evaluations. 3. Criticism or avoidance by co-workers. 4. Blacklisting from future employment.

What are the psychological effects on whistle-blowers?

1. Severe depression or anxiety. 2. Feelings of isolation or powerlessness. 3. Distrust of others. 4. Declining physical health. 5. Severe financial decline. 6. Problems with family relations.

What makes whistle-blowing morally permissible?

1. The company must be engaged in illegal or immoral practices causing serious harm to individuals or society. 2. The employee should report concerns to their immediate superior. 3. If no action is taken, the employee should escalate the matter before going public.

What must employees believe to justify going public as a whistleblower?

They must have a good reason to believe that going public will bring about necessary changes.

What is a key moral motive for whistle-blowing?

It must be done from the appropriate moral motive as defined in whistle-blowing.

What should a whistleblower do before going public?

They should exhaust all internal channels for dissent.

What type of evidence must a whistleblower have?

Compelling evidence that inappropriate actions have been ordered or occurred.

What considerations should a whistleblower analyze before acting?

The seriousness of the moral violation and the immediacy of the problem.

What is a necessary condition for whistle-blowing to be justified?

The whistle-blowing must have some chance of success.

What constitutes a conflict of interest in a business context?

When a person acts to their advantage at the expense of the employing organization.

What types of interests does the term 'conflict of interest' apply to?

It applies to personal financial interests and the interests of others with substantial common financial interests.

What is an example of self-dealing in a conflict of interest?

Using an official position to secure a contract for a private consulting company owned by the employee.

What is an example of accepting benefits in a conflict of interest?

Accepting a case of liquor from a major supplier while acting as a purchasing agent.

What does using employer's property for private advantage entail?

Stealing office supplies or using licensed software for private consulting work.

What is influence peddling?

Soliciting benefits in exchange for using influence to unfairly advance a particular party's interests.

What is an example of outside employment or moonlighting?

Setting up a side business that competes directly with the employer.

What is a post-employment conflict of interest?

A situation where a person resigns and goes into business in the same area as their previous employment.

What is a key element of a conflict of interest?

There is a private or personal interest that could interfere with professional responsibilities.

How does conflict of interest affect professional judgment?

It interferes with objective professional judgment, which is valued by clients and employers.

What is the overarching principle regarding sexual harassment in the workplace?

The State values the dignity of every individual and guarantees full respect for human rights.

What does Republic Act No. 787 define as harassment?

Harassment is defined as any demand, request, or requirement for sexual favor from someone in a work or educational environment by a person in authority.

What are the two main types of sexual harassment?

1. Quid Pro Quo Harassment: requiring sexual favors as a condition of employment. 2. Hostile Environment Harassment: creating an intimidating or offensive work environment.

What is 'Quid Pro Quo' harassment?

It is defined as requiring a sexual favor or interaction as a condition of employment or in exchange for an employment benefit.

What is 'Hostile Environment' harassment?

It involves verbal, physical, or visual conduct that creates an intimidating, offensive, or hostile environment in the workplace.

What are some examples of Hostile Environment harassment?

1. Unwanted touching. 2. Comments about someone's body. 3. Displaying pornographic materials. 4. Workplace blackmail regarding sexual favors.

Who can be a victim of sexual harassment?

Both men and women can be victims, and the victim does not have to be of the opposite sex.

Who can be a harasser in cases of sexual harassment?

The harasser can be a supervisor, co-worker, or even a non-employee.

What is a key characteristic of the harasser's conduct?

The conduct must be unwelcome.

What is one way to prevent sexual harassment in the workplace?

Implementing a broad anti-harassment policy that specifically addresses sexual harassment.

What are the potential effects of a hostile work environment due to sexual harassment?

It can lead to low employee morale, decreased productivity, costly lawsuits, and damage to the organization's reputation.

How should organizations communicate their sexual harassment policy?

Through permanent postings, memos, newsletters, meetings, and training.

What is the purpose of having separate sexual harassment policies for different employee levels?

To address the specific needs and responsibilities of non-management and management employees.

What might be a consequence of not addressing sexual harassment in the workplace?

It may result in costly lawsuits and damage to the organization's image.

What is a common reason why sexual harassment occurs?

It often stems from a power struggle between men and women, reflecting a response to a perceived loss of power.

What types of conduct can constitute Hostile Environment harassment?

Verbal, physical, and visual conduct that creates an intimidating or offensive work environment.

What is an example of workplace blackmail related to sexual harassment?

Suggestions that providing sexual favors may advance one's career or that refusal may hinder it.

What are 'green jokes' in the context of sexual harassment?

Jokes that are sexual in nature and can contribute to a hostile work environment.

What is the impact of sexual harassment on employee performance?

It can lead to incompetence in performing well due to feelings of annoyance, fear, or disgrace.

What is the significance of a sexual harassment policy in an organization?

It establishes clear guidelines and expectations for behavior, helping to prevent harassment.

What role does training play in preventing sexual harassment?

Training helps raise awareness and educate employees about the policies and consequences of harassment.