Ethics & Business Essentials

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Concise overview for review

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Hannah Flores

Philippines

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Ethics & Business Essentials


Ethics & Business EssentialsOnline version Concise overview for review by Hannah Flores 1 1. BUSINESS ORGANIZATION Business Economic activity Inputs → Process → Outputs Materials + Labor Goods and Services Main goal: Profit Profit = Income − Expenses Also promotes common good and protects rights and interests 2 Types of Business Service – provides services Merchandising – buys and sells products Manufacturing – converts raw materials into products 3 Forms of Business Organization Sole Proprietorship One owner Full control Easy and cheap to organize Low registration cost Tax advantages Few restrictions Unlimited liability Limited capital Limited management ability 4 Forms of Business Organization (cont.) Partnership Two or more owners Share profits and losses Association of individuals Mutual agency Limited life Co-ownership Usually unlimited liability Based on trust and confidence Partner's actions may bind other partners Dissolution – withdrawal/admission of partner 5 Forms of Business Organization (cont.) Corporation Created by law Separate legal entity Owners = Stockholders Ownership = shares of stock Limited liability Transferable ownership Can raise large capital Continuous/perpetual existence Board of Directors Subject to government regulation Pays corporate income tax Registered with SEC Articles of Incorporation Bylaws 6 Quick Comparison Sole Proprietorship → 1 owner / control Partnership → 2+ owners / shared decisions Corporation → stockholders / separate legal entity 7 2. SOCIAL FUNCTION OF BUSINESS Why Business Matters Produces goods and services Creates employment Generates income Supports economic growth Improves living standards Promotes the common good Protects stakeholders 8 Why Business Must Be Ethical Builds trust Attracts investors Protects employees and customers Prevents fraud and abuse Maintains business reputation Supports long-term survival Protects society 9 4 Reasons to Act Ethically 1. Legal – follow laws 2. Public Image – protect reputation 3. Pragmatic – ethics can lead to business success 4. Moral – doing what is right 10 Business and Poverty Alleviation Job creation SMEs Microbusinesses Microfinance Economic opportunities Human capital development Education and training Community development Poverty Absolute poverty – below basic/universal needs Relative poverty – poor compared with others in society 11 Causes of Continuing Poverty Unequal economic growth Government failure Lack of education/health Disconnection from markets Discrimination Cultural barriers 12 3. AREAS OF BUSINESS MOST IN NEED OF ETHICAL ATTENTION Key Stakeholders Employees Customers Suppliers Shareholders Society 13 Priority Development Areas Agricultural finance Rural infrastructure Roads Education Health services Cash transfers Microcredit Microenterprise Technical skills training Social housing 14 Corporate Social Responsibility – CSR Responsibility beyond profit Ethical behavior Economic development Community welfare Employee welfare Environmental responsibility Corporate citizenship 15 4 Levels of Business Responsibility 1. Profit/Economic 2. Legal 3. Ethical 4. Discretionary/Philanthropic 16 Morality of Advertising Truthful advertising No false claims No misleading pictures/information Deceptive advertising = false or misleading presentation Consumer protection RA 7394 – Consumer Act of the Philippines 17 Employee Rights Fair wages Safe workplace Security of tenure Humane working conditions Right to organize Collective bargaining Protection from discrimination Labor Code of the Philippines RA 6727 – Wage Rationalization Act 18 Insider Trading & Environment Insider Trading Buying/selling stocks using non-public information Information advantage Fairness issue Market integrity Conflict between personal gain and public fairness Pollution and Resource Depletion Environmental responsibility Pollution prevention Waste reduction Resource conservation Sustainability Protect future generations Avoid environmental damage 19 Whistleblowing Reporting unethical/illegal behavior Internal – reports within organization External – reports to authorities/public Protect whistleblowers Loyalty vs. public interest Risk of retaliation 20 4. CORE PRINCIPLES OF BUSINESS Fairness Keyword: JUSTICE Equal treatment No discrimination Impartial decisions Fair rewards Fair procedures Balance of benefits and burdens Give people what is due to them 21 CORE PRINCIPLES (cont.) Accountability Keyword: RESPONSIBILITY FOR ACTIONS Explain actions Justify decisions Accept consequences Follow rules and standards Report performance accurately Answer to stakeholders Accountability is NOT: Blaming Confrontation One-time activity Same as appraisal 22 Transparency Keyword: OPENNESS Honest information Clear communication Proper disclosure No hidden important information Builds trust Supports accountability Stakeholders know how resources are used 23 Competence & Professionalism Competence Keyword: ABILITY Knowledge Skills Proper performance Technical Skills Human Skills Conceptual Skills Professionalism Competence, Integrity, Respect, Fairness, Prudence, Good conduct 24 3 Major Skills & Responsibility 3 Major Skills Technical Skills – specialized knowledge/expertise Human Skills – communicating and working with people Conceptual Skills – analyzing problems and making decisions Responsibility Meet customer needs Ensure product/service safety Communicate risks Protect stakeholders Consider long-term effects Serve the common good 25 Trustworthiness & Servant Leadership Trustworthiness Integrity Ability Benevolence Reliability Honesty Keeping commitments Servant Leadership Serve others Listening Empathy Persuasion Stewardship Develop employees Focus on followers' growth Build teamwork and trust 26 4. CORE PRINCIPLES OF BUSINESS (Recap) Keyword: SHARED WAY OF THINKING AND ACTING Beliefs Values Assumptions Goals Norms Behaviors Traditions Practices Functions of Culture Social glue – keeps members united Compass – guides behavior Control mechanism – influences actions Regulator – manages relationships Need satisfier – supports members 27 Ethical Organizational Culture Human dignity first Common good Ethical decision-making Positive values Character development Avoid exploitation Protect people and environment Organization serves the human person 28 Easy Memory Guide BUSINESS ORGANIZATION → Who owns and operates the business? SOCIAL FUNCTION → How does business help society? ETHICAL ATTENTION → Where can ethical problems happen? CORE PRINCIPLES → How should a business behave? F-A-T + CPR Fairness Accountability Transparency Competence Professionalism Responsibility CODE OF ETHICS → What rules and values guide behavior?

Ethics & Business Essentials

Slideshow

About this activity

Created by

Download the paper version to play

Top Games

Slideshow

Subjects and Predicates

Slideshow

Introduction to Wound Care Lecture

Slideshow

CLAS Standards

Slideshow

Numbers from 1 to 100

Slideshow

Exploring Leadership Styles: A Comprehensive Overview

Ethics & Business EssentialsOnline version

by Hannah Flores

1. BUSINESS ORGANIZATION

Types of Business

Forms of Business Organization

Forms of Business Organization (cont.)

Forms of Business Organization (cont.)

Quick Comparison

2. SOCIAL FUNCTION OF BUSINESS

Why Business Must Be Ethical

4 Reasons to Act Ethically

Business and Poverty Alleviation

Causes of Continuing Poverty

3. AREAS OF BUSINESS MOST IN NEED OF ETHICAL ATTENTION

Priority Development Areas

Corporate Social Responsibility – CSR

4 Levels of Business Responsibility

Morality of Advertising

Employee Rights

Insider Trading & Environment

Whistleblowing

4. CORE PRINCIPLES OF BUSINESS

CORE PRINCIPLES (cont.)

Transparency

Competence & Professionalism

3 Major Skills & Responsibility

Trustworthiness & Servant Leadership

4. CORE PRINCIPLES OF BUSINESS (Recap)

Ethical Organizational Culture

Easy Memory Guide