Module 7
Business Ethics
The Social Function of Business
Example of Social function of Business in the
Philippines
TONY MELOTO’S GAWAD KALINGA
The achievements of Gawad Kalinga(GK) have been remarkable, to say the
least. Just 15 years after it started in 1995, gk had built close to 200,000
houses in more than 2,000 gk villages in poor communities all over the
country for a fraction of the cost of government’s owned subsidized and
low cost housing programs. Gawad kalinga has gone a long way since its
initial years in bagong silang.
• The generosity, commitment, and heroic sacrifice of its full-time workers,
caretaker teams, donors, volunteers, communities in the Philippines and
in several other developing countries.
• “so massive and pervasive is poverty in our country that our response to it
cannot be small.” (Tony Meloto, gawad kalinga founder; recipient of the
2006 Magsaysay award for community leadership; recognized as “social
entrepreneur of the year, Philippines” by the schwab foundation in 2010).
Poverty is conceptualized as a deficiency or shortage of some sort, typically
in comparison either to the living standards of others within the same
society or culture(called “relative poverty”), or to a universal measure of
adequate provision(called “absolute poverty”.
Ethics in business
William sauser, in the journal of business ethics article “ethics in business:
answering the call”, explained that business organizations have four
levels of responsibility:
1 Earning a profit
2 Legal responsibility
3 Ethical responsibility
4 Discretionary responsibilities.
Corporate social responsibility
CSR as defined by the world business council for sustainable development,
is a “continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life
of the workforce and their families, the local community, and society at
large.” more and more companies are embracing CSR because of
profitability, and also because more managers now believe that being a
better corporate citizen is a source of competitive advantage.
Morality of advertising
Deceptive ads are those that make false statements about or misrepresent
the product, for example, the picture presented in the advertisement is
different from the actual product. Deceptive ads my occur not only
through sentences or propositions but also through pictures, individual
words, or through certain combinations of objects which can deceive the
eye and the mind.
Article of the consumer act of the
Philippines(republic act no. 7394)
• “the state shall protect the consumer from misleading advertisements and
fraudulent sales promotion practices”. Article 110 states that “it shall be
unlawful for any person to disseminate or to cause the dissemination of
any false, deceptive or misleading advertisement by philippine mail or in
commerce by print, radio, television, outdoor advertisement or other
medium for the purpose of inducing or which is likely to induce directly
or indirectly the purchase of consumer products or services.”
Labor Rights
BASIC EMPLOYEE RIGHTS, JOB DISCRIMINATION,
OTHER LABOR-RELATED ETHICAL ISSUES
THE LABOR CODE OF THE PHILIPPINES(OR PRESIDENTIAL
DECREE NO. 442) a decree instituting a labor code thereby revising and
consolidating labor and social laws to afford protection to labor, promote
employment and human resources development, and insure industrial
peace based on social justice. It lays down the rights of workers in
relation to wages, rights to self-organization, collective bargaining,
security of tenure, and just and human conditions of work.
Republic Act No. 6727(also known as the “Wage Rationalization Act”)
mandates the fixing of the minimum wages applicable to different
industrial sectors. This law rationalized wage determination by
establishing the mechanism and proper standards through the creation of
Regional Tripartite Wages and Productivity Boards(RTWPBs) authorized
to determine the daily minimum wage rates in the different regions.
These policies are:
1) to promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation,
as modes of settling labor or industrial disputes;
2) to promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
3) to foster the free and voluntary organization of a strong and united labor
movement.
4) to promote the enlightenment of workers concerning their rights and
obligations as union members and as employees.
5) to provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes.
6) To ensure a stable but dynamic and just industrial peace.
7) To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties, and welfare.
INSIDER TRADING
Insider Trading in the stock market is characterized as the buying or selling
of shares of stock on the basis of information known only to the trader(an
“insider”, somebody belonging to the company, as opposed to the public)
or to a few persons.
WHISTLE BLOWING
• Whistle-blowing is the act, for an employee(or former employee) of
disclosing what he believes to be unethical or illegal behavior to higher
management(internal whistle-blowing) or to an external authority or the
public(external whistle-blowing).
WHISTLE BLOWING
Its status is debated: some see whistle blowers as traitorous violators of
organization loyalty norms; other see them as heroic defenders of values
considered to be more important than company loyalty. Whistle-blowing
is generally considered from the viewpoint of professional morality.
Social Function of
Business
CONTENTS:
The Social Role of the Business Firm/Organization
Fair Employment Practices
Roles and Obligations of the Personnel Manager
What is Social Responsibility?
Our Social Responsibility
Any Responsibility we have, particularly towards members of
the society with whom you interact or towards the society in
general, are called our social responsibility.
Business Social Responsibility
The obligation of any business to protect and serve public
interest is known as social responsibility of business.
Business
Competitors • Owners
Society • Government
Customers • Employees
Suppliers • Investors
Business Responsibility Towards Society
To help the weaker and backward sections of the society.
To preserve and promote social and cultural values.
To generate employment.
To protect the environment.
To conserve natural resources and wildlife.
To promote sports and culture.
To provide assistance in the field of developmental research
on education, medical science, technology etc.
Fair Employment Practices
Recruitment
Employees should be recruited through job advertisement and on job
application forms, on the basis of merit, relevant qualifications, skills,
knowledge and experience and regardless of age, race, gender, religion,
family status or disability.
Fair Treatment
Employees should be treated fairly, with respect, and progressive human
resource management system should be develop.
Dismissal of Poor Performance or Misconduct
Employers should document employees’ performance and conduct, making the
decision to dismiss the employee only on documented poor performance
or misconduct. Also proper procedure for dealing with complaints such
as conducting proper investigation should be implemented.
Training and Development
Employees should be provided with equal
opportunity to be considered for training and
development based on their strengths and need, to
help them develop their full potential.
Compensation
Employees should be rewarded fairly based on their
ability, performance, contribution and experience.
Labour Laws
Labour laws should be complied with and the
Guidelines should be adopted by employers.
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