The document discusses business ethics and the role of strategists in ensuring ethical practices within an organization. It outlines how strategists are responsible for developing and enforcing a clear code of business ethics to guide decision making. The document also emphasizes the importance of cultivating an ethics culture where ethical considerations are integrated into strategic planning and decision making processes.

1. Business Ethics
Abigan, Paul
Igot, Sarah

2. What is business ethics?
 set of principles of conduct within organizations
that guide decision making and behavior
“Good business ethics is a
prerequisite for good strategic
management; good ethics is just good
business!”

3. Business Ethics and Strategists
 There is a rising tide of
consciousness about the
importance of business ethics
 Strategists (e.g. CEOs and
business owners) are individual
primarily responsible for
ensuring that high ethical
principles are espoused and
practices in an organization.
 All strategy
formulation, implementation
and evaluation decisions have
ethical ramifications

4. Business Ethics and Strategists
 being unethical can be
expensive (examples: fake
medical study, misleading
advertising and
labeling, causing
environmental harm, poor
product or service
safety, padding expense
accounts, insider
trading, dumping banned or
flawed products in foreign
markets, not providing equal
opportunities to women and
minorities, overpricing, movi
ng jobs overseas, sexual
harassment)

7. Code of Business Ethics
 Examples of
unethical activities
that plague online
commerce:
1. internet fraud
2. hacking into company
computers
3. spreading viruses
4. identity theft

8. Code of Business Ethics
 due to ethical issues related
to product safety, employee
health, sexual
harassment, AIDS in the
workplace, smoking, acid
rain, affirmative
action, waste
disposal, foreign business
practices, cover-
ups, takeover
tactics, conflicts of
interest, employee
privacy, inappropriate
gifts, security of company
records has accentuated the
need for strategists to
develop a clear code of
ethics

9. Code of Business Ethics
 A document that provides
behavioral guidelines that cover
daily activities and decision within
an organization
 merely having a code of ethics is
not sufficient to ensure ethical
business behavior
 periodic ethics workshops are
needed to ensure that the code is
read, understood, believed and
remembered
 punishments for violating and
reward for upholding a code can
reinforce the firm's business ethics

10. Ethics Culture and Role of
Strategists and Managers
 ethics cultures needs to
permeate in an organization
 many organizations have
developed a code-of-conduct
manual outlining ethical
expectations and giving
examples of situations that
commonly arise in business
 Whistle-Blowing – policies
that require employees to
report any unethical
violations they discover or see
in the firm

11.  Heidi Mendoza – Carlos Garcia Plunder case
 George Rabusa – Pabaon controversy
 Jun Lozada – NBN-ZTE controversy
 Clarissa Ocampo – Jose Velarde Erap Plunder Case
 Vidal Doble – Hello Garci scandal
Local examples of
whistleblowing

12. Ethics Culture and Role of
Strategists and Managers

13. Ethics Culture and Role of
Strategists and Managers
 strategists take the moral risks of the firm, thus they are
responsible for developing, communicating, and
enforcing the code of business ethics for their
organization
 managers also have an integral part, to provide ethics
leadership by constant example and demonstration.
 Because managers are in the position to influence and
educate people, it is their responsibility to develop and
implement ethical decision making
 “Trees die for the top.” - no one should ever become a
strategist unless he or she is willing to have his or her
character serve as the model for subordinates

14. Ethics and Strategic Decision
Making
 history has proven that the greater
the trust and confidence of people in
the ethics of an institution or
society, the greater is its economic
strength
 more and more firms believe that
ethics training and an ethics culture
create strategic advantage
 ethics training programs should
include messages from CEO or
business owners emphasizing ethical
business practices. The development
and discussion of codes of ethics, and
procedures for discussing and
reporting unethical behavior

15. Ethics and Strategic Decision
Making
 firms can align ethical and strategic decision making by
incorporating ethical considerations into longterm
planning, integrating ethical decision making into performance
appraisal process, encouraging whistle-blowing, monitoring
departmental and corporate performance using ethical issues

16. Bribery

17. Bribery
 Bribery is the act of offering, giving, receiving, or
soliciting of any item of value to influence the
actions of an official or other person in discharge of
a public or legal duty
 Bribe is gift bestowed to influence a recipient's
conduct (can be money, good, right in
action, property, preferment, privilege, emolument,
object of value, advantage, or merely a promise or
undertaking to induce or influence the action, vote
or influence of a person in a official or public
capacity

18. Bribery under Philippine
constitution
Can be found in:
Revised Penal Code TITLE VII
CRIMES COMMITED BY PUBLIC
OFFICERS
Chapter 2 MALFEASANCE AND
MISFEASANCE IN OFFICE
section 2
 http://www.dpwh.gov.ph/about_us/reforms/gr
aft_n_corruption/pdf/Revised%20Penal%20Code
1.pdf

19. Love affairs at work
 many firms have policies
that prohibit relationships
between superior and
subordinate
 other firms require
individuals to inform their
supervisors whenever there
is a romantic relationship
begins with a coworker

20. Love affairs at work
 for european firms, romantic
relationships are viewed as
personal matters and most firms
have no polices but they are
increasingly adopting
explicit, American style sexual
harassment laws (example of an
explicit, american style sexual
harassment law?)
 Example: World Bank regard
sexual relations between managers
and an employee as “de facto
conflict of interest which must be
resolved to avoid favoritism.”
World Bank President Paul
Wolfowitz was forced to resign due
to a relationship he had with a
bank staff (year?)