Pagadian Diocesan Schools

HOLY CHILD’S ACADEMY

San Jose, Pagadian City, Zamboanga del Sur

SELF-PACED LEARNING MODULE-* IN BUSINESS

ETHICS AND SOCIAL RESPONSIBILITY

Name: Maghanoy, Rhamyllia Kyla M. Section:12-St. Lucy (ABM) Score:

MODULE 3 – CODE OF ETHICS FOR BUSINESS

Module Overview:
Businesses are pressured to make profits to maintain and grow their position in the market.
Sometimes they need to make decisions that put them on a forked road: Should I do the right
thing but put my business in jeopardy, or should I use bribes to expedite procedures?
       In this module, you are going to learn the code of ethics in business and know its importance
since it is a set of guiding principles intended to ensure a business and its employees act with
honesty and integrity in all facets of its day-to-day operations and to only engage in acts that
promote a benefit to society.
Learning Competencies :
At the end of the module, you can:
1. Formulate a “code of ethics” that reflect core principles derived from analyses
2. Explain the importance of Code of Ethics in business
Instructional Materials:
 Valerie N. Choa, et. al, Essentials in Business Ethics (Brilliant Creations Publishing, Inc.)
 3G Elearning FZ LLC, Business Ethics and Social Responsibility 2017
Pre-assessment
Directions: Write TRUE if the statement is correct, and FALSE if it is incorrect. Write your
answer in the space provided before each number.
TRUE 1. A team-oriented culture believes that when an employee is happy, they become more
productive, and are thus more willing to go the extra mile for their company, and their customers.
FALSE 2. Integrity refers to how ethical principles guide a business's operations.
TRUE 3. A code of ethics sets the company’s mission, values, ethos, objectives, and
responsibilities to guide employees on how to deal with different scenarios in the workplace.
TRUE 4. A company that wants to uphold strong ethics can bend the rules regardless of the
magnitude of financial damage it would cost.
TRUE 5. An ethical issue is an identifiable problem, situation, or opportunity that requires a
person or organization to choose from among several actions that may be evaluated as
ethical or unethical.
INTRODUCTION
MOTIVATION
Directions: Complete the concept map below by choosing keyword that best describes the
business ethics.

A secret to success lies in recognizing the value of ethics in industry. The customers,

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management, and staff value honest and ethical practices. Hence, business ethics is vital because
it helps maintain a great reputation, helps to avoid significant financial and legal issues, and
ultimately benefits all involved. Therefore, it is highly suggested that each company formulates
its own Code of Ethics to be used as a guide in its business operation.
INTERACTION
Learning Activities
1. Reading material/Concept notes

Now that you can clearly distinguish between acceptable and unacceptable practices, you need to
be able to acquaint all the members of the corporation with its ideal corporate culture. Corporate
culture is defined as the values, standards, attitudes and beliefs shared by the members of an
organization. The corporate culture of a company guides its members in the proper way of
handling business transactions and interacting with fellow members.
            While there are many different types of corporate culture, here are some examples of the
common organizational cultures that people see frequently in one form or the other.
1. Team-oriented Culture - prioritizes the employees’ happiness. These types of organizations
believe that when an employee is happy, they become more productive, and are thus more
willing to go the extra mile for their company, and their customers.
2. Elite Culture
Organizations that have elite culture hire only the best qualified individuals, and are
expected to lead the way. This results to fast growth for the company and new ways of
doing things. In an elite culture environment, employees often prioritize work, and are
expected to work long hours. High-input individuals also move up the ranks quickly in
this kind of culture.
3. Horizontal Culture
In a horizontal culture environment, everyone is encourages to pitch in their ideas. This
kind of culture is common among younger companies. Your job title is not very
important in horizontal cultures. Everybody has a voice in the company, and ideas are
discussed openly.
4. Conventional Culture
As the name suggests, companies who have a conventional culture work in a more
traditional manner. A dress code is normally employed in companies that spouse this
culture, and clearly-defined hierarchies are employed. Banks and schools are examples of
companies that have conventional cultures.
Now that you have been familiarized with the different types of corporate culture, it is
time to understand how corporate culture is introduced, especially to those who have been newly
hired by the company. One such means is by crafting and disseminating a proper code of ethics
(or code of conduct).

Business ethics refers to how ethical principles guide a business's operations. Common issues
that fall under the umbrella of business ethics include employer-employee relations,
discrimination, environmental issues, bribery, insider trading, and social responsibility.
Both businesses and trade organizations typically have some sort of code of ethics that their
employees or members are supposed to follow. Breaking the code of ethics can result in
termination or dismissal from the organization. A code of ethics is important because it clearly
lays out the rules for behavior and provides the groundwork for a preemptive warning.
A code of ethics can take a variety of forms, but the general goal is to ensure that a business and
its employees are following state and federal laws, conducting themselves with an ideal that can
be exemplary, and ensuring that the business being conducted is beneficial for all stakeholders.
Types of Codes of Ethics

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What Are the Five Codes of Ethics?
All companies will have a different code of ethics with different areas of interest, based on the
industry they are involved in, but the five areas that companies typically focus on include
integrity, objectivity, professional competence, confidentiality, and professional behavior.

What Is a Code of Ethics in Business?

A code of ethics in business is a set of guiding principles intended to ensure a business and its
employees act with honesty and integrity in all facets of its day-to-day operations and to only
engage in acts that promote a benefit to society.

What Is a Code of Ethics for Teachers?

A code of ethics for teachers defines the primary responsibilities of a teacher to their students and
the role of the teacher in the student's life. Teachers are required to show impartiality, integrity,
and ethical behavior in the classroom.

What Is an Example of a Code of Ethics?

An example of a code of ethics would be a business that drafts a code outlining all the ways the
business should act with honesty and integrity in its day-to-day operations, from how its
employees behave and interact with clients, to the types of individuals it does business with,
including suppliers and advertising agencies.

What Is the Difference Between a Code of Ethics and a Code of Conduct?

A code of ethics is broader in its nature, outlining what is acceptable for the company in terms of
integrity and how it operates. A code of conduct is more focused in nature and instructs how a
business' employees should act daily and in specific situations.

The Bottom Line

A code of ethics is a guiding set of principles intended to instruct professionals to act in a manner
that is honest and that is beneficial to all stakeholders involved. A code of ethics is drafted by a
business and tailored to the specific industry at hand, requiring all employees of that business to
adhere to the code.

The moral choices of businesses have evolved, from the industrial age to the modern era. In the
world we live in today, working conditions, how a business impacts the environment, and how it
deals with inequality are all areas that society deems important that perhaps two centuries ago it
did not as much. A code of ethics helps ensure that businesses will always act with integrity.

Code Basics
A code of ethics sets the company’s mission, values, ethos, objectives, and
responsibilities to guide employees on how to deal with different scenarios in the workplace. As
a benchmark, the written code of ethics serves as an expectation and guideline for employee
conduct.
Every code is different as it reflects the organization’s own essence. Some companies set
short codes, some set general guidelines, while others include examples of how to deal with
particular situations.
The code should be simple, concise and easily understood. It should be user-friendly and
written with the employees in mind. The best code states expected behaviors.
The code of ethics applies to all employees. No one is exempted from following the rules
and regulations of the company policies. The code should be written, reviewed, and edited by a
multidisciplinary team in order to make it consistent with all other corporate policies. It should
be revised and updated as appropriate.
A. Key Elements of a Code of Conduct
1. Introduction - An introductory letter from the CEO or leader defines the importance of
compliance.

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 Dear Colleague:
Cornwall foods promote healthy living. We harvest only the freshest of produce
grown through environmental-friendly and natural farming methods. And, like growing our
organic vegetables, Cornwall Food strives to earn the trust of its stakeholders the natural
way: no secrets, no sleights, no chemicals added, no trust betrayed.
Thus, the Cornwall foods Code of Conduct, the one you are reading right now, aims
to guide us to walk down the right path. As human beings, we are hardwired to do the right
thing. And should you face a moral crisis that may affect our stakeholders’ well-being, feel
free to consult this code. Read this Code from time to time so you can live the guiding
principles Cornwall Foods is built upon.
I hope that you can help the company in growing by working hard to maintain the
trust that has been given to our company. Thank you.
Sincerely,
Mary Palm- Keane
Chief Executive Officer

2. Mission, Vision, Goals, and Principles – Reflects the commitment of what is important to the
organization.

VISION
To see a better and healthier world through an organic and natural approach to farming.
MISSION
Cornwall Foods aims
 to promote healthy living by providing our customers healthy, organic
procedure;
 to help the environment by using all natural methods in growing our crops;
and
 to teach the people that there is an alternative to all the processed food being
produced today.

3. A framework to assist employees in making the right choice

Explaining ethical challenges typical to the business or situations that may have occurred in
the past can help employees reason through the challenges they may encounter and
understand what the company is expecting of them.
The Most Important Rule: No chemical pesticides!
We are an organic and natural farming company. As much as we want to rid our
vegetables of harmful pests, we also want our customers to not get poisoned by such
pesticides. We want our produce to be a health benefit, not a health risk. Using all
natural methods in tending to our vegetables- especially in dealing with pests- not only
makes our produce organic, but also edible.

4. For topics not covered by the rules, further suggestions are recommended by the Code.
5. Set up clear whistle-blowing policies to reassure everyone that the company will protect what
is right and just.
6. List available resources for guidance and assurance of confidentiality and no retaliation.
7. Revision
As the business environment changes, the code of conduct must be updated and revised to
reflect the changes.

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B. Implementation
Having a code of ethics is meaningless unless it is communicated to all members of the
corporation. This can be in a sheet of paper, a bound file, an electronic copy, or a webpage.
Regardless of its form, the important thing is that it is implemented and enforced.
C. Requires Training
The code of ethics cannot be just a signed piece of paper. It has to be a way of life in the
company’s daily operations. One of the ways is to have mandatory immersions to gain
appreciation for the code and understand its seriousness. Everyone may also receive useful
guidance. Apart from trainings, a good way to keep everyone updated is to do annual webinars
on the code of ethics followed by a mandatory comprehension exam.
D. Enforcement
Company Name: MediCare
A company that wantsPharmacy______________________________________
to uphold strong ethics cannot bend the rules regardless of the
magnitude of financial damage it would cost.

Exercises and Drills (FA)

Activity 1
Pretend that you have your own company. Craft your own code of ethics that reflects the core
principles of good governance. Write your code in the space provided.

VISION MISSION
Become a pharmaceutical
business that is accessible,
seamless, comprehensive,
appropriate, and cost-
effective.
Provide low-cost, effective, safe
Be able to provide the best and high-quality medicine and
pharmaceutical care in the services
locality. Developing a people-centered
business organization; and
Improve the overall health and
wellness of our community

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 CODE OF ETHICS

Dear Colleague,

Every day, our products and services touch the lives of people around the world, which is not
only a great privilege but also a great responsibility. And as a company that provides medical
services, our actions, words, and behaviors do matter. To that end, we have created a Code of
Business Ethics and Conduct.

The Code serves as a foundation for our company's policies, procedures, and guidelines.
Hence, it sets out the principles that you must follow as a pharmacist or pharmacy technician
for this company on a daily basis. They are intended to guide and support the work you do
and the decisions you make; they also inform the general public of the standards of behavior
that can be expected from the pharmacy profession.

Thank you for doing your part and committing to upholding the principles of our code and
contributing to the success of MediCare Pharmacy.

Signed:

Rhamyllia Kyla C. Maghanoy

Chief Executive Officer

Activity 2
1. Choose two codes of ethics from companies in the same industry. Compare and Contrast.
Discuss the good points and suggest ways to improve the code, if necessary.

Code of Ethics 1: Professionalism (Petron)

Code of Ethics 2: Respect for People (Shell)

CONTRAST COMPARE CONTRAST

- Refers to the standard
quality and behavior . improve
-Both
-Refers to the call on each and
that will be exhibited, the morale of every individual to respect the
as well as the manner
in which a person employees. intrinsic dignity of all other
conducts himself in a people, both in and out of the
business setting
business affair. -Both are
-It includes having essential -It includes recognizing
strong skills and in daily differences and understanding
one’s significance.
competence. business
operations.

Code of Ethics Good Points:

1. Here, employees will tend to understand boundaries more clearly and solve any minor issues
in an efficient and respectful approach. Moreover, it will also ensure a positive first impression,
successful interpersonal relationships, and a lasting reputation within the business organization.

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2. Here, all the employees will know that they are valued for their achievements, abilities, and
qualities, which reduces workplace stress, problems, and conflicts. Moreover, it also builds
feelings of trust, safety, and wellbeing both inside and outside of the business organization.

Processing Questions:
1. How does code of ethics play a role in a business?

A code of ethics plays a role in a business by acting as a roadmap—giving employees or

members a general idea of what types of behavior and decisions are acceptable and encouraged
at a business or organization. It also acts as a benchmark through which an individual's and
organizational performance can be measured.

2. What is the importance of Code of Ethics in business?

The importance of the code of ethics in business lies heavily on its insurance. That said, it
ensures that the company is clear on its mission, values, and guiding principles. Moreover, it also
ensures that the employees are behaving in a manner that is accepted in both legal and ethical
standards, which in turn, guides its decision-making and activities to have effective productivity
and maintain its reputation.

INTEGRATION
3. Closure/Synthesis
Enrichment
Directions: Read each statement below and classify it according to its ethical issue. Write the
letter of the correct answer on the space provided before each number.

A. Ethical Issues in Production B. Ethical Issues in Sales and Marketing

C. Ethical Issues in Finance D. Ethical Issues in Human Resource Management

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

A. 2. Reggie’s hotdogs are made under strict processing standards.
C.3. The company supervisor orders office supplies from her husband’s store.
B.4. Wyn Mobile, a new brand of computer, launched its new laptops at an overpriced amount.
D.5. Marigold Enterprise rejects differently abled applicants.
A. 6. Energy best Milk does not put on the can’s label the ingredients they used.
A. 7. The food products of XYZ Corporation are well-sealed.
C. 8. The administrative manager joins the contract bidding of their proposed new building.
C.9. Mr. Reyes, the accountant, bribed the personnel to reduce their company’s tax payable.
B.10. Chocmuch Manufacturing Corporation delivers its products on time.
At MediCare
Reflection Guide Pharmacy, we act with integrity, loyalty, compassion, respect, and
honesty in everything that we do. These
In hectic working environments, peopleprinciples
can becomeserveblind
as thetoframework
their moralfordilemmas, thus
how
failing we conduct
to see the moralourselves to preserve
dimensions of their our ethical
choices. work environment
Understanding and to
the nature of moral dilemmas
commit to ethical business practices.
is an important prerequisite in identifying them and finding ways in which to deal with them
responsibly.
INTEGRITY
Reflective Question:
WereWeyouareever
committed
involvedtoinbeing consistent
a situation with
where ourhad
you words and actions.
a moral dilemma?WeWhat
neverhappened? What
participate
did you in unscrupulous activities or business dealings.
have to do?
Yes, I experienced being involved in a situation where I had a moral dilemma. When I was in grade 9, my mom and
I wentLOYALTY
to a famous food chain in the locale to dine for lunch. During that time, I didn’t get anything and just watched
my mom eat—but before leaving the place, I asked her to buy me a meal instead because I got hungry, and so she
did. However, when we went
We are committed tooutside,
alwaysthere was a beggar,
remaining whoWe
faithful. I can clearly
never see hasn’t
disclose eaten anything for quite a
information
while already. Upon that, I got torn between keeping my food or giving it to her because I was really hungry, but
learned in confidence.

COMPASSION

We are committed to being kind and caring.7We never indulge in behaviors that
contradict the needs and sensitivities of others.
 RESPECT

We are committed to treating everyone fairly and with courtesy. We never

exercise power arbitrarily and never exploit weaknesses or mistakes for personal
or corporate benefit.
compassion prevailed in me. So, what I did was, I went close to her and gave her the food that we bought, and then I
HONESTY
just ate right after I arrived home.
INTERVENTION
We are committed to telling the truth in all forms of communication and in all
actions. We never purposely tell partial truths, selectively omit information, or
make misrepresentations or overstatements.

______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
_______________________________________ __________________
_____________________________________________ ____________
__________________________________________________________
___________________________________________________ ______
Assignment:
Formulate your own ethical principles reagarding customer service as a future entrepreneur.

Post Assessment
Directions: Write TRUE if the statement is correct, and FALSE if it is incorrect. Write your
answer in the space provided before each number.

TRUE1. A team-oriented culture believes that when an employee is happy, they become more
productive, and are thus more willing to go the extra mile for their company, and their customers.
FALSE 2. Integrity refers to how ethical principles guide a business's operations.
TRUE 3. A code of ethics sets the company’s mission, values, ethos, objectives, and
responsibilities to guide employees on how to deal with different scenarios in the workplace.
TRUE 4. A company that wants to uphold strong ethics can bend the rules regardless of the
magnitude of financial damage it would cost.
TRUE 5. An ethical issue is an identifiable problem, situation, or opportunity that requires a
person or organization to choose from among several actions that may be evaluated as
ethical or unethical.