San Francisco De Sales School

National Highway, City of San Pedro, Laguna

Learning Area Business Ethics and Social Responsibility

Learning Delivery Modality Modular Distance Modality

School San Francisco De Sales School Grade Level Grade 12

Teacher Mrs. Martha Jane Macasaet Learning Area BESR
LESSON EXEMPLAR
Teaching Date Quarter 3rd
Teaching Time 60 mins. No. of Days

I. OBJECTIVES
A. Content Standards Common practices in business organizations (decorum, protocol, policies, marketing,
bookkeeping, reportorial requirements and documentation, etc.)
B. Performance Standard Craft simple “Codes of Ethics” or “Codes of Right Conduct”
C. Most Essential Learning
Formulate a “code of ethics” that reflect core principles derived from analyses
Competencies (MELC)
II. CONTENT Code of Ethics in Business
III.LEARNING RESOURCES
A. References
a. Teacher’s Guide Pages
b. Learner’s Material Pages
c. Textbook Pages
d. Additional Materials from
Learning Resources
B. List of Learning Resources Business Ethics and Social Responsibility – Grade 12
for Development and Alternative Delivery Mode
Engagement Activities Quarter 3 – Module 3: Code of Ethics in Business
First Edition, 2020
IV. PROCEDURES
A. Introduction WHAT I NEED TO KNOW?
Additionally, you are expected to:
1. define ethics;
2. explain why ethics is important in business;
3. classify the given ethical issues; and create a good situation from the choices
given.

WHAT’S NEW?
Directions: Read and understand the situation. Write your answers on a separate sheet
of paper.
Chona opened an online food service for an additional income. She hired one female
helper in the kitchen and two delivery boys. The business was doing very good for a
month. But one day, she got a call from an online client complaining that the food
delivered to her was already spoiled and could not be eaten. He/she was demanding for
a refund.
If you were Chona, how would you handle the situation?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

B. Development WHAT I KNOW?

Directions: Match the items in Column A to its description in Column B. Write your
answers on a separate sheet of paper.

A B
1. Ethical Issues in Production A. Tasks include hiring and performance evaluation

2. Ethical Issues in Sales and B. Tasks involve trading practices and conditions, and
Marketing tax payments

3. Ethical Issues in Finance C. Tasks involve protection of consumers and honesty

in delivery
4. Ethical Issues in Human D. Task includes that its products do not inflict
Resource Management unnecessary harm

WHAT’S IN?
Your knowledge of the core principles underlying fairness, accountability, and
transparency will be very helpful in this next lesson.
Directions: Analyze each situation below and identify what core principle is applied.
Write the letter of your answer on a separate sheet of paper.

Your choices:
A. Fairness B. Accountability C. Transparency

1. The treasurer of a cooperative withdrew P20,000 cash from a bank. On her way to
the office, she passed by the public market and since it was market day, there were a
lot of people in the area. A man suddenly snatched her bag where the money was
placed. Although shocked and sad, she promised to pay the P20,000 through salary
deduction.
2. The manager of the company ordered materials for their office extension. He/she
declared the actual amount and attached the official receipt for future reference.
3. The boss noticed that his/her two clerks were not talking to each other. He/she
ordered the two to come to his/her office one at a time to listen to both sides before
he/she decides.

WHAT IS IT?

Definition of Ethics
The term Ethics is derived from the Greek word ethos which means “characteristic
way of thinking”. Ethics, as a science, does not only evaluate the morality of our human
conduct but also provides us with a common understanding of the universal, objective,
and irreversible moral principles that should govern our human behavior and guide our
moral decisions (Roa, 2011).
Ethics are moral principles that guide the conduct of the individual (Racelis, 2017).
These are rules of behavior based on ideas about what is morally good and bad
(Merriam-Webster Dictionary).

Why is ethics important in business?

Ethical conduct, whether at the corporate, professional, or personal level, is a
direct reflection of the principles and values which regulate the person and the
institution he/she represents. Organizations establish their own culture that is socially
expressed as their ideals. Such principles or ideals have an impact on the relationships
within the company, efficiency, prestige, performance and retention of employees,
legalities, and the wider community they work in.
As a result, most organizations generate a list of organizational values and codes of
conduct to be recognized and adhered by all workers. Motivating and enhancing
constructive actions, and at the same time building an atmosphere that prevents
unethical behavior are vital obligations on the part of both administrators and workers.

How to Apply Ethics

At the individual level, organizations ought to concentrate on improving and
encouraging every employee to respect and adhere to ethical principles. Certain aspects
of individual ethics have their roots in the individual. Achieving a strong sense of
professionalism and recognizing certain professional decisions' ethical implications are
the key components of education, individual reflection, and experience.

Examples of Ethical Issues in Business

1. Ethical Issues in Finance
Under the umbrella of finance and accounting, fairness in trading practices, trading
conditions, financial contracting, sales practices, consultancy services, tax payments,
internal audits, external audits, and executive compensation are included, whereas
specific corporate ethical/legal abuse includes insider trading, bribery/kickbacks,
misleading financial analysis, and fraud on securities.

2. Ethical Issues in Human Resource (HR) Management

Human Resource Management 's tasks include hiring and orientation, performance
evaluation, training and development, labor relations, and health and safety concerns.
Among the ethical issues are discrimination by age (the young ones are preferred over
the older ones), gender preference, sexual orientation, race, ethnicity, disability, and
physical appearance are all ethical issues that the HR oversees.

3. Ethical Issues in Sales and Marketing

Marketing ethics deals with the beliefs, standards and/or morals that advertisers and
marketing organizations will operate upon. Ethical marketing issues include promotion
of obsolete or harmful products/services; openness about environmental threats; food
ingredients (Genetically Modified Organisms); possible health hazards or financial risks;
protection for the privacy and autonomy of consumers; truthfulness in advertising; and
honesty in price and delivery. Some claim that advertisements can affect the views of
 individuals and their relationships with others, suggesting an ethical obligation to avoid
distorting those expectations and relationships.
Ethics in marketing includes practices in pricing, which involves unlawful acts such as
price manipulation and price skimming. According to Hayes (2020), price skimming is a
product pricing strategy by which a firm charges the highest initial price that customers
will pay and then lowers it over time. On the other hand, advertising has raised
concerns over offensive advertisements, objectification, and school marketing.

4. Ethical Issues in Production

Business ethics typically deals with company's duties to ensure its goods and industrial
procedures do not inflict unnecessary harm. Many products and services can be
generated and used at zero risk and it can be difficult to assess the ethical path.
However, there are consumers who patronize products that damage them, for example,
tobacco products. Output can have adverse effects on the environment like air pollution,
destruction of habitats, and urban sprawl.

C. Engagement WHAT’S MORE?

A. Directions: Classify each phrase below to the corresponding column of ethical issues
where it belongs. Write your answers on a separate sheet of paper.

1. destruction of habitats 6. Truthfulness in advertising

2. encountered misleading financial reports 7. Fraud on securities
3. overweight applicants are not allowed 8. Harm to environment
4. hiring limited to religious affiliations 9. Manipulation in prices
5. honesty in prices 10. Exaggerated advertisements

WHAT I CAN DO?

Directions: What would you do under the following situations below. Write your
answers on a separate sheet of paper.

a. Being an advertising artist, you were instructed by the manager to make two
layouts, but you will only receive the price for one.
b. Your company would have to donate P 1,000,000 to charity, but you witnessed that
the accountant only gave P 700,000 instead of P 1,000,000.
c. Being one of the food processors in a manufacturing company, you know that the
ingredients listed on the label of your product are not completely true.

D. Assimilation WHAT I HAVE LEARNED?

Directions: Complete the given phrases below for at least three to five sentences. Write
your answers on a separate sheet of paper.

2. Ethics means ________________________________________________________________________________

3. Ethics is important in business because ___________________________________________________

WHAT I CAN DO?

Directions: Read each sentence below and classify each according to the ethical issue
where it belongs. Write the letter of your answers on a separate sheet of paper.

1. XYZ Company does not accept members of LGBTQIA+ community.

2. Diggie’s hotdogs are made under strict processing standards.
3. The company accountant orders office supplies from her husband’s store.
4. Strawberry, a new brand of computer, launched its new laptops at an overpriced
 amount.
5. Lobo Enterprise rejects all differently abled persons.
6. Super Milk does not put on the can’s label the ingredients they used.
7. The food products of XYZ Corporation are well-sealed.
8. The manager joins the contract bidding of their proposed new building.
9. Lotlot, the accountant, bribed the personnel to reduce their company’s tax payable.
10. Robot Beverages hired a famous commercial model for its product promotion.
11. Chocolatey Much Manufacturing Corporation delivers its products on time.
12. RB Corporation’s employable age limit is 55 years old.

Directions: Fill in the blanks with the appropriate word/s to make each sentence
correct. Write your answers on a separate sheet of paper.

13-14. The term ethics is derived from the Greek word _____ which means characteristic
way of ____.
15. Ethics are rules of _____ based on ideas about what is morally good and bad.

V. REFLECTION Write your personal insights about the lesson using the prompts below.

I understand that ____________.

I realize that __________________.
Prepared by: Noted by:

MARTHA JANE MACASAET LEVY P. TALAY

Teacher Principal