GOOD GOV & SOCIAL RESPONSIBILITY MIDTERMS

Ethics

•  also known as moral philosophy, is the study of moral principles and values that guide human behavior and decision-making, examining what is right and wrong, good and bad.

Moral Philosophy

• Ethics is a core area of philosophical inquiry, exploring fundamental questions about morality, values, and the good life. 

Right vs Wrong

• Ethics seeks to determine what actions are morally justifiable and what actions are morally wrong. 

Good vs Bad

• Ethics explores the nature of moral goodness and badness, examining what constitutes a virtuous character and a meaningful life. 

Obligations and Responsibilities

•  Ethics examines the duties and responsibilities that individuals and societies have towards one another. 

Fairness

• Ethics considers the principles of fairness and justice in decision-making and social interactions.

Guidance for Decision-Making

Ethics provides a framework for making sound moral choices in personal and professional life.

Promoting Social Harmony

• Ethical behavior fosters trust, cooperation, and a sense of justice within society. 

Personal Growth

Reflecting on ethical principles can lead to self-awareness and personal development.

• Moral philosophy

• Right vs wrong

• Good vs bad

• Obligations and responsibilities

• Fairness

The key concept of ethics

• Guidance for Decision-Making

• Promoting Social Harmony

• Personal Growth

These are the importance of ethics

Corporate social responsibility

It  is a program that makes corporations/organizations more human and more reachable.

A company’s commitment to social good through philanthropy and employing sustainable and ethical business practices. Socially responsible businesses aim to have a net positive impact on the world. 

CSR strategies

It can help your company benefit from an enhanced reputation, attracting top talent, and boosting customer and employee loyalty.

The pyramid of corporate social responsibility

This was made to visualize the four-part definition of CSR. This reveals the building blocks that businesses can use to become responsible in all four areas, rather than prioritizing profits alone.

 Professor Archie Carroll in 1991

Who made the pyramid and when was it made?

Economic responsibilities

• This is the lowest level of the pyramid. To achieve success in the other three areas, your business must be profitable and financially stable. However, profitability should not come at the expense of other responsibilities, such as ethics.

  Your company’s ability to make a profit.

• Provide living wages and safe work environment

• Create high quality products and services

• Prioritize customer safety and satisfaction

What are the examples of economic responsibilities?

Legal responsibilities

• While economic responsibilities are key for providing a strong foundation for these other efforts, _______could be considered the most important. This involved complying with all relevant laws and regulations to ensure the business is conducting its operations fairly.

• Your company’s responsibility to follow all relevant laws and regulations

• Following employment laws, health and safety regulations, and tax regulations

Example of legal responsibility

Ethical responsibilities

• This refers to doing the right thing and following ethical norms to fill in any gaps or ambiguities in the law. Like the legal layer, the purpose of being an ethical business is to operate fairly and avoid causing harm.

  Your company’s responsibility to operate ethically without causing harm to people or the planet.

• Certifications in areas such as B Corps, Fair Trade, and Animal Welfare

Example of ethical responsibility

Philanthropic responsibilities

• The final level of the pyramid includes the voluntary responsibilities that businesses take part in to go above and beyond, such as donating to a nonprofit. While businesses are not legally obligated to participate in these activities, employees are coming to expect it. For example, 60% of employees say that it’s imperative their employer offers matching gifts. 

  
  Your company’s responsibility to go above and beyond by contributing to nonprofits and charitable causes.

• Matching gifts

• Corporate volunteerism

• Volunteer grants

• Corporate grants and sponsorships

Examples of philantrophic responsibilities

Milton Friedman

“The social responsibility of business is to increase its profit” Who said this?

B Corps Certification

• This designation is extended to businesses that demonstrate high social and environmental performance, make a legal commitment to prioritize ethics (e.g., adjusting the corporate governance structure to be accountable to all stakeholders), and exhibit exceptional transparency.

Fair Trade Certification

• This applies to all items like food, drink, housewares, and apparel. Companies are held to fair labor standards such as providing a sustainable income and practicing environmental stewardship. Popular certification includes Fair Trade USA Certified and Fairtrade International.

Animal Welfare

• These certifications are connected with the treatment of animals in the manufacturing process. Some certify that the products did not test on animals while others confirm that products are free of any animal products (e.g., vegan leather or almond milk). Widely used certifications including Leaping Bunny, PETA, and Vegan.org.

Matching Gifts

• Through these programs employees offer to match the donations their employees make to charitable organizations.

Corporate Volunteerism

• With a corporate volunteer program, your company will coordinate with a nonprofit to have your employees volunteer with the organization. For example, you might have optional volunteer hours for employees over the weekends, or you can set up company-wide events where employees can choose to spend the whole day volunteering.

Volunteer Grants

sometimes called Dollars for Doers programs, allow employees to turn the time they spend volunteering into more money for the nonprofits they support.

Corporate Grants and Sponsorships

supply nonprofits with the funding they need for a specific project or initiative. When awarding grants, you have more control over what the funding will be used for. Additionally, you may offer corporate sponsorships. These tend to be more informal than a grant and might fund things like fundraising events.

Zone of Compliance

refers to a framework or approach that emphasizes proactive and dynamic compliance efforts, going beyond simply meeting basic legal obligations.

Economic Responsibility

• “Must Do” in Zone of Compliance

• Profit is like ‘oxygen’–there is no life without it.

Legal Responsibility

• Have to do in Zone of Compliance

• A responsibility to achieve economic goals within the various laws.

Ethical Responsibility

• Should do in Zone of Discretion

• A responsibility to develop a set of ethical standards and stick to them.

Discretionary Responsibility

• Might do

• Go the extra mile; no payback expected

Blanchard-Peale Framework

One of the best-known ethical frameworks is also one of the simplest.

Ken Blanchard and Norman Vincent Peale

Who made the Blanchard-Peale Framework?

One Minute Manager

Blanchard is also known for this book

The Power of Ethical Management

What is the book of Blanchard and Peale and when it was made?

This suggests that most people basically know right from wrong but put themselves into stressful situations because they have knowingly made unethical decisions. 

THERE IS NO RIGHT WAY TO DO A WRONG THING

What matters in the Blanchard - Peale Framework?

Grey Areas

• Blanchard and Peale contend that the very existence of a “_______” between right and wrong is no excuse for dispensing with ethics. 

• They suggest that much of the this can be taken out of ethical dilemmas by taking the time to weigh up a decision.

Ethics check

• Blanchard & Peale suggest an ______ this is answering three questions when faced with an ethical problem.

is it legal?

• Does it comply with government laws and your organization’s internal regulations? 

is it fair?

• Would the decision be seen as honest and honorable, or are one or more parties being treated without consideration and respect? Is someone getting an advantage that others are not? 

How does it make me feel?

Do you have a bad gut feeling about the decision? How would people react if they saw it reported in the news?

Company policies
Labor code of the Philippines

These are the basis for the question “Is it legal?”

Markkula Center Framework`

• This identifies five approaches, or dimensions, that can be applied when dealing with an ethical issue. These sources can be used to evaluate decisions for many situations.

Markkula Center for Applied Ethics at Santa Clara University, CA

Who and where was Markkula Framework made?

Utilitarianism

• says the most ethical action is the one that provides the greatest amount of good for the largest number of people — or, in more dire circumstances, the least amount of harm. Also has trouble accounting for values such as justice and individual rights.

consequentialism

• Utilitarianism, a form of _______, asserts that the most ethical action is the one that produces the greatest good for the greatest number of people.

outcomes or consequences

• Utilitarianism emphasizes the ______ of actions, rather than the intentions or motives behind them.

"Greatest Good" Maxim

The guiding principle is to maximize overall well-being or happiness and minimize suffering or harm.

Jeremy Bentham and John Stuart Mill

• are considered foundational figures in the development of utilitarianism.

Rights approach

This approach dictates that the best decision is the one that preserves and protects human dignity and moral rights. People “have a right to be treated as ends, and not merely as means to other ends.”

Fairness Approach

This approach says that all humans should be treated equally. If it’s not feasible to treat everyone equally, then there must be a standard of fairness that applies to everyone.

Common good approach

says that actions should be promoted to public life. This approach is used to advocate for laws and public services that appeal to the welfare of all. 

Virtue approach

 is based on characteristics such as compassion and honesty. With this approach, decision makers should ask things like “What kind of person would I be if I take this action?”

• Recognize that an issue is indeed an ethical issue. 

• Get all the facts regarding the issue. 

• Evaluate all the alternative actions. 

• With the utilitarian approach, look at which alternative will do the best and the least harm. 

• With the rights approach, look at which alternative preserves the rights of all stakeholders. 

• With the justice approach, look at which alternative treats people most fairly. 

• With the common good approach, look at which alternative that serve the entire community. 

• With the virtue approach, think about your own personal beliefs. 

• Make your decision. If it still makes you uneasy, reconsider all the sources and see if you arrive at a different decision. 

• Act on the decision. 

• Ask yourself, “What have I learned from this experience?”
  

• Steps to consider in making an ethical decision

RA 7394 Consumer Protection Act

• The Primary Law for Consumer Protection in the Philippines. 

• It aims to protect consumers against hazards, deceptive practices, and to promote their welfare. 

Department of Trade and Industry

• is the primary implementing agency for the Consumer Act.

• Right to basic needs 

• Right to safety 

• Right to be informed 

• Right to choose 

• Right to be heard 

• Right to redress 

• Right to consumer education 

• Right to healthy environment

Examples of RA 7394 Consumer Protection Act

Refund
Repair
Replace

What are the 3R’s

Refund

•  the ability of consumers to retrieve the equivalent monetary value of the item. 

Repair

•  the right of consumers to have the defective items be fixed

Replace

 the right of consumers to get an equivalent or same item with the same value for defective or damaged items.

Responsible marketing

• It involves aligning marketing strategies with ethical, social, and environmental values while prioritizing consumer interests and promoting positive social change.

• It's about creating campaigns that are transparent, authentic, and genuinely connect with the target audience, while also ensuring that marketing practices are fair and do not harm consumers.

more human and more reachable

Corporate Social Responsibility is a program that makes corporations/organizations________

No return. No exhange policy

This is prohibited under the Consumers Act as it eliminates the chance of the consumers to practice the 3Rs.

Gift Check Act of 2017

President Rodrigo Roa Duterte on December 19 signed into law Republic Act No. 10962, otherwise known as the “__________” prohibiting the issuance of gift checks that bear expiry dates, as well as the imposition of an expiry date on the stored value, credit, or balance of the gift check

Authentic storytelling

Crafting compelling narratives that communicate a brand's commitment to social responsibility and build trust with consumers.

Consumer interests

•Prioritizing the best interests of the customer and avoiding tactics that could be harmful or manipulative

Fairness

•Ensuring that all customers are treated equitably and that promotions are available to everyone

Deceptive Sales Acts and Practices

Product or service does not have the purported characteristics, performance, ingredients, accessories, uses, or benefits

Quality management

refers to all the measures an organization takes to assure quality.

corporate governance

• is the system of rules, practices, and processes by which a company is directed and controlled. It’s the framework that ensures accountability, fairness, and transparency in a company’s relationship with its stakeholders. 

• The purpose of this is to facilitate effective, entrepreneurial, and prudent management that can deliver the long term success of the company.

Accountability
Transparency
Fairness
Responsibility

Principles of Corporate Good Governance

Accountability

• Management is accountable to the board; the board is accountable to shareholders. 

Transparency

Clear, accurate, and timely disclosure of all material matters.

Fairness

• Equal treatment of all shareholders, including minority and foreign shareholders. 

Responsibility

•  Ethical behavior and compliance with laws and regulations. 

Disclosure
transparency
accountability

3 Values of Good Corporate Governance

are essential elements of good corporate governance. 

Shareholders
Board of Directors - Chairperson
Chief Operating Officer - Chief Executive Officer - Chief Financial Office

Structure of Corporate Governance