BUSINESS ETHICS AND SOCIAL RESPONSIBILITY
Name of Learner:____________________________ Grade Level: ___________________
Section: ____________________________________ Date: ________________________
LEARNING ACTIVITY SHEET
In a narrow sense, corporate governance involves a set of relationships amongst the company’s
management, its board of directors, its shareholders, its auditors and other stakeholders. These
relationships, which involve various rules and incentives, provide the structure through which the
objectives of the company are set, and the means of attaining these objectives as well as
monitoring performance are determined. Thus, the key aspects of good corporate governance
include transparency of corporate structures and operations; the accountability of managers and
the boards to shareholders; and corporate responsibility towards stakeholders. While corporate
governance essentially lays down the framework for creating long-term trust between companies
and the external providers of capital, it would be wrong to think that the importance of corporate
governance lies solely in better. This lesson will tackle the different principles under corporate
governance.
Learning Competency with code: The learners will illustrate how fairness, accountability,
transparency and stewardship is observed in business and non – profit organizations.
ABM_ESR12-IIIa-d-1.4;
ABM – ESR12-IIIa-d1.5 Week 2
Core Principles of Good Corporate Governance:
Fairness - comes from the old English word faeger, which means “pleasing or attractive.” It is
the quality of making judgements that are free from discrimination. In the context of the business
organization, involves balancing the interest involved in all decision making including any
decisions related to hiring, firing, and the compensation and reward system.
It has to do with justice, which is to give to another which is due to him or her.
Accountability
Good corporate governance ensures stakeholders know the company's mission, values, short and
long term strategic goals and the role they must play in helping the company accomplish them.
Not only must stakeholders be aware of what is expected of them, they should be cognizant of
what the repercussions are if these expectations are not met. An effective board of directors will
make sure a company's senior leadership is steering the company in the right direction. A
talented senior leadership team will confirm that mid-level managers and the employees who
report to them are executing the company's strategy as instructed.
Transparency
Transparency - The Business Dictionary defines transparency as a “lack of hidden agendas or
conditions, accompanied by the availability of full information required of collaboration,
cooperation, and collective decision making.”
Companies that have an effective corporate governance structure in place know that transparency
must be a core principle. Stakeholders want reassurance that the company is operating within the
law and that business is being conducted in a way that is ethical and fair. Transparency within an
organization can come in the form of an annual report, a corporate retreat to discuss direction
and strategy, or in the form of documented policies, procedures or best practices that give entry-
level employees an understanding of how the company operates.
Policies and Procedures
Documented policies and procedures allow employees across an organization to understand how
the company functions and to determine whether organizational objectives are being met. Both
private and public companies document policies and procedures to assist employees throughout
the organization in their efforts to gain clarity on processes and expectations. When policies and
procedures are documented, it helps reassure employees that the company is in compliance with
all legal and regulatory requirements, establishing a framework through which the organization
can operate seamlessly and successfully.
Sound Decision-Making
Good corporate governance is designed to drive company profitability and higher returns through
sound decision-making. Employee and customer surveys, market analysis reports and managerial
and departmental meetings are all avenues through which a company's executive leadership team
can gather data and insight to inform their decisions. For a company's board of directors, the
interest of shareholders and stakeholders are always a primary concern. The board has the
ultimate authority regarding the company's management and must have sufficient information to
approve annual budgets, determine executive compensation and authorize the hire or release of
the company's chief executive
Stewardship refers to the responsibility that companies have to understand and manage their
impacts on the environment in any number of ways. Practicing stewardship can help
a business find sustainable practices, improve its reputation among consumers and even save
money. How to Define Stewardship
Often thought of in biblical terms, the stewardship definition also plays a critical role in today’s
business environment. In the world of commerce, stewardship refers to taking responsibility for
the business and the effects it has on the world around it. This involves considering more than
just the bottom line and looking at elements such as values, ethics and morals. Stewardship
examples include corporate stewardship, environmental stewardship and service-oriented
stewardship.
Corporate Stewardship
Many business leaders are seeing the negative effects of their companies on the world around
them and are actively working to alter their business practices and to take more responsibility for
their actions. This is called corporate stewardship or corporate social responsibility.
https://smallbusiness.chron.com/core-principles-good-corporate-governance-72364.html
Activity 1: Identification
Direction: Identify what principle (Accountability, Fairness, Transparency, and Stewardship)
1) Good managers must decide and consider the firm’s values, ethics, and sound business
practices. Good managers learn costs must never drive business decisions; must follow what’s
right every time. As Christians, he carries out good stewardship only by God’s grace.
2).The company security guard on duty patrol or secured industrial and commercial premises
every couple of hours to prevent and detect signs of intrusion and ensure security of doors,
windows, and gates.
3). External auditors play a critical role in validating the company's finances. Potential lenders
and investors often require externally audited financial statements before extending credit or
providing funds for the business.
4). Board meetings are also about strategizing about the future direction of the company. Once
the board reviews past performance, members come up with new strategies that will guide the
organization into the future. Often take the lead from suggestions presented by corporate
management.
5).People are people are typically concerned with how their rewards compare with
others,organisations create elaborate job grading systems, carefully calculate salaries and
benefits, and conceal salary data.
Activity 2: Fill me up.
Direction: Fill the blanks with the term or concept suitable for each statement.
Recruiting
characteristic trustworthy justice capable Fairness Discriminatio
s managers n
1. The _________ means the quality of making judgements that are free from
discrimination
2. Listening, empathizing, persuading, accepting stewardship, actively developing
follower’s potential are _____________ of servant leaders.
3. Firms employing more women managers have probably done a better job of________
from the total available talent pool, and consequently will be in a better position to link
with customers, employees, and other constituencies.
4. Part of the responsibility of the worker is to be ______________.
5. ________rooted in universal principles that apply to all people, everywhere and at all
times.
Activity 3: Fact or Bluff
Direction: Read the statements carefully. If it is states a fact or general truth writes Fact.
If represents negative statement write the word Bluff
__________1. Transparency is the most important aspect of prevention and detection of
corruption.
__________2.Accountability is not about confrontation "putting someone in his/her place" or
"giving him/her a hard time."
_________3.Organizational diversity means demographic, cultural, and personal differences
among employees and customers
__________4. The selection process; hiring and firing indicate fairness principle of good
corporate governance.
__________5.Accountability implies responsibility.
Activity 4: Situation Analysis
Direction: Analyze the given situation wherein you practice the following positive
characteristics.
What would be your recommended or immediate action?
1). The CCTV camera is broken, and need to be repaired. You caught your company cashier put
a bundle of Pup 1000.00 bills inside her shoulder bag.
2).You caught your co employee hold and punched a different name of Bundy clock.
3).You accidentally saw your boss or manager inside a bar with pretty young girls.
4).You and Ms. Ocampo belong to the same department. During the company's program. Ms.
Acampo received a plaque of appreciation of service for 10 years. You did not received any
award yet you served the company for more than a decade
5. You checked the company products contained hazardous materials and not suitable for
children. You are not a member of quality department. Your job is a time keeper.
Rubrics for Mini Case Analysis
5- If the answer consists of 4 more sentences with correct and complete information
4-If the answers consists of 2 – 3 sentences with correct information
3-If the answers consists of 1-2 sentences with correct information
2- If the answers are no substance
If no answers written.
Reflections:
1. What lesson have you learned from the lesson?
2. In school, how can you show fairness, accountability, stewardship and transparency?
3. What does it mean to be a steward in your home and community?
Activity 1 Activity2 Activity 3 Activity 4
1.Stewardship 1.Fairness 1.F Answer varies
2. Stewardship 2. Stewardships 2.F
Refer to Rubrics
3. Accountability 3.recruiting 3. F
4.Transparency Capable employee 4.F For grading the
5.Fairness 4. trustworthy 5.B analysis of the
5. Justice situation
Online Resources
1). http : // smallbusiness.chron.com/effects-lack-ethics -business environment -23332html.
2). http://businessdictionary.com/definition/accountability.html.
3) https://www.smartrecruiters.com/blog/top-20-corporate-social-responsibility-initiatives-for-
2017/
4).ADM Deped Division of Manila shared activities
Key Answers:
Activity 1 Activity2 Activity 3 Activity 4
1.Stewardship 1.Fairness 1.F Answer varies
2. Stewardship 2. Stewardships 2.F
Refer to Rubrics
3. Accountability 3.recruiting 3. F
4.Transparency Capable employee 4.F For grading the
5.Fairness 4. trustworthy 5.B analysis of the
5. Justice situation
Prepared by:
