Business ethics is the practice of doing business by promoting what is right and eliminating what is wrong. The bottomline of this business ethics program is for the business to gain profit, at the same time, promote ethical behaviour.
Example of unethical business practices
1. Selling of 1 kg sugar that actually weighs 950mg only.
2. Issuing official receipt without using a carbon paper or no duplicate copy.
3. Declaring false statement of financial status
4. Maintaining two sets of payroll (one for actual, one for allowed by law)
5. Giving out of blank official receipt/s to government employees/officials.
Why should business ethics important? When every individual working in the firm is doing ethically, the consumers can have a right value for their money and there is a tendency that prices will go down. In the case of corruption in government, bribery from the business firms will no longer transpire and items are priced accordingly without allowance for SOP. If this practice will be implemented and sustained, corrupt practices of public officials, in all their business dealings, will now come to an end.
How to promote business ethics program? First, conducting training on how to implement business ethics program to all SME representatives. Second, monitoring of the implementation by the public and civil societies. Third, conducting evaluation of the implementation of the program. Lastly, giving awards to business ethics best practioner and submitting list of unethical establishments to ombudsman for investigation.
It may sound impossible but this initiative will only prosper if we will cooperate.
Your comments are very much appreciate. Additional views are welcome as well.
your views and solution in implementing business ethics
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BONSAL
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Corporate Governance
I've been in corporate arena for seven years already and I've seen the best and worst practices, people of high integrity and people of low integrity. I've seen insider-trading scandals; I've seen savings and loan meltdowns; I've seen the aftermath of the bubble in all these accounting scandals in what was a fairly breathtaking breakdown in corporate governance in some of our major high-cap companies. All these breakdowns boil down to one root cause...and that is GREED. Greed is a very powerful evil spirit.
During my stint in SGV, I was exposed to the task of identifying risk areas in the business environment. I learned that I need to consider some parameters to identify business risks namely, an understanding that culture counts; that compliance doesn't drive ethicsâ€â€it's the other way around; that everything rises and falls on leadership; that checks and balances require thoughtful organizational design, human resource decisions and both business and social process engineering; and that you need a relentless process to sustain it that is very time consuming.
To promote business ethics or corporate governance. This should be enunciated and articulated. They have to be written down and evangelized to employees, not once a year, not necessarily everyday, but at least every couple of months. Then you have to make sure that you are walking the talk, because it is all about articulating those values that inform decision making. It is all about developing and sustaining the ethical grid that drives compliance. It is all about relationship and trust, and at the end of the day, it is about courage.
During my stint in SGV, I was exposed to the task of identifying risk areas in the business environment. I learned that I need to consider some parameters to identify business risks namely, an understanding that culture counts; that compliance doesn't drive ethicsâ€â€it's the other way around; that everything rises and falls on leadership; that checks and balances require thoughtful organizational design, human resource decisions and both business and social process engineering; and that you need a relentless process to sustain it that is very time consuming.
To promote business ethics or corporate governance. This should be enunciated and articulated. They have to be written down and evangelized to employees, not once a year, not necessarily everyday, but at least every couple of months. Then you have to make sure that you are walking the talk, because it is all about articulating those values that inform decision making. It is all about developing and sustaining the ethical grid that drives compliance. It is all about relationship and trust, and at the end of the day, it is about courage.
"Unless you try to do something beyond what you have already mastered, you will never grow."
- ronald e. Osborn
- ronald e. Osborn
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saragpat
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that's true bon.
even here in our school, since i am enrolled in management in accounting subject this semester, i told my lecturer that some of the accounting principles and standards contradict business ethics especially in the generation of financial reports. statements are being aligned to the type of users of this financial information. for government purposes, it should not reflect the true value of taxable income. for financing institutions, it should reflect that additional capital is vital for the business. etc. etc. etc.
even for accountants too, bon, there is a question of moonlighting to be unethical. any comments?
why businesses add 6% or 3% to the price of an item being canvassed by government agencies?
yes, bon, this program should also require all business and government offices to publish their statement of business ethics. i know that this is very hard to implement, considering that most of us, are guilty. mabislaw magtan-aw nan statement kon lain an ato mga lihok. kanaman balitaw, the head of agency should lead in acting ethical. if at the start bagaay pa an mga bayho, the statement will be "ako ang imong konsensiya" effect.
thanks for the valuable input, bon.
why don't you start posting the ethical standards i suggested. then from that, we can formulate other strategies on how each employee can reflect on that. usahay sa isab gud bon, kuwang kita nan reminder. labi na kon matiguwanay na taraw kita sa serbisyo, makalimut na kita nan ato obligasyon isip usa ka alagad nan mga katawhan.
more power to you.
saragpat
even here in our school, since i am enrolled in management in accounting subject this semester, i told my lecturer that some of the accounting principles and standards contradict business ethics especially in the generation of financial reports. statements are being aligned to the type of users of this financial information. for government purposes, it should not reflect the true value of taxable income. for financing institutions, it should reflect that additional capital is vital for the business. etc. etc. etc.
even for accountants too, bon, there is a question of moonlighting to be unethical. any comments?
why businesses add 6% or 3% to the price of an item being canvassed by government agencies?
yes, bon, this program should also require all business and government offices to publish their statement of business ethics. i know that this is very hard to implement, considering that most of us, are guilty. mabislaw magtan-aw nan statement kon lain an ato mga lihok. kanaman balitaw, the head of agency should lead in acting ethical. if at the start bagaay pa an mga bayho, the statement will be "ako ang imong konsensiya" effect.
thanks for the valuable input, bon.
why don't you start posting the ethical standards i suggested. then from that, we can formulate other strategies on how each employee can reflect on that. usahay sa isab gud bon, kuwang kita nan reminder. labi na kon matiguwanay na taraw kita sa serbisyo, makalimut na kita nan ato obligasyon isip usa ka alagad nan mga katawhan.
more power to you.
saragpat
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iCeprIncEsS
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nice one!
hi saragpat! thanks for sharing these.
i can still remember my business subjects not too long ago as a university student. i don't remember that much emphasis on business ethics (will this reveal my age? hahaha!)
what we were bombarded were business principles that will make a success out of the organization. i guess it was taken for granted at that time ethics and morality seemed like a personal choice rather than a business practice.
it seems that more and more attention is given on ethics as it has caused the collapse of many institutions. we hear of top corporations folding after many years in the business..of course we don't hear much of sme's but i am sure they close much faster than they have been in business because of wrong practices.
personally, the very reason for my resignation from one of the organizations that i was once connected with is because of such. i have handled projects wherein the financial reports involved a lot of "magic"
if it was an isolated case, i would have stuck to it and moved to other projects. but this boss of mine who also teaches about values seems to think otherwise, thus i was left with no choice, no matter how much i was enjoying what i did, but to leave.
i can still remember my business subjects not too long ago as a university student. i don't remember that much emphasis on business ethics (will this reveal my age? hahaha!)
what we were bombarded were business principles that will make a success out of the organization. i guess it was taken for granted at that time ethics and morality seemed like a personal choice rather than a business practice.
it seems that more and more attention is given on ethics as it has caused the collapse of many institutions. we hear of top corporations folding after many years in the business..of course we don't hear much of sme's but i am sure they close much faster than they have been in business because of wrong practices.
personally, the very reason for my resignation from one of the organizations that i was once connected with is because of such. i have handled projects wherein the financial reports involved a lot of "magic"
if it was an isolated case, i would have stuck to it and moved to other projects. but this boss of mine who also teaches about values seems to think otherwise, thus i was left with no choice, no matter how much i was enjoying what i did, but to leave.
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BONSAL
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Moonlighting
Hi Saragpat! Thanks for raising this focal issue. A month ago.. i've been weighing up the issue of moonlighting kay medyo guilty ako nan ini na butang. (mahilig sa tuho ako magside-line.. hehehe)
The question of moonlighting whether if it is an ethical or not is a delicate matter. By the way, for everybody’s information… MOONLIGHTING involves when a professionals (accountants, lawyers, consultants etc.) getting retainer services while remaining employed.
Relative to my job, I've been coming across opportunities that would require me to practice my profession/expertise in a personal capacity and not as an employee. Would that be unethical? The answer varies in a case to case basis. In situations where there is clear conflict of interest, unethical practice comes in. For example, a potential client offers a consultant to take on personally a project at a lower rate undermining the company. In this case, the interest of the company is in direct conflict with the interest of the consultant. However, providing professional services during weekend as long as there’s an absence of conflict of interest plus a formal letter in a full disclosure to your employer that averts unethical practice.
US Supreme Court Justice Potter Stewart defines ethics as "knowing the difference between what you have the right to do and what is the right thing to do." It involves an awareness of the consequences and possible implications of our actions.
Moonlighting to be ethical should adhere to the generally accepted rules of ethical conduct such as the following:
1. Balance your personal needs with the needs of others or the needs of the organization. If you view a situation only from your self-interest and personal needs, you are likely to have a lopsided view of the situation.
2. Check out your company code of conduct or the personnel manual. If the rules are clear, then follow the rules. To circumvent rules does not pay. If the company is silent or your issue falls in a gray area, meet your boss to get clarification.
3. Analyze all aspects of the situation. Ask yourself how your superior, peers or subordinates will react to your potential action or decision. You can even go further to examine consequences to other stakeholders like customers, owners etc.
4. Try the ethics test. Ask yourself if the action is the right thing to do, if it is fair and honest to all concerned. Ask yourself if other ways or options exist in addressing your concerns.
Godbless!
bonsal
The question of moonlighting whether if it is an ethical or not is a delicate matter. By the way, for everybody’s information… MOONLIGHTING involves when a professionals (accountants, lawyers, consultants etc.) getting retainer services while remaining employed.
Relative to my job, I've been coming across opportunities that would require me to practice my profession/expertise in a personal capacity and not as an employee. Would that be unethical? The answer varies in a case to case basis. In situations where there is clear conflict of interest, unethical practice comes in. For example, a potential client offers a consultant to take on personally a project at a lower rate undermining the company. In this case, the interest of the company is in direct conflict with the interest of the consultant. However, providing professional services during weekend as long as there’s an absence of conflict of interest plus a formal letter in a full disclosure to your employer that averts unethical practice.
US Supreme Court Justice Potter Stewart defines ethics as "knowing the difference between what you have the right to do and what is the right thing to do." It involves an awareness of the consequences and possible implications of our actions.
Moonlighting to be ethical should adhere to the generally accepted rules of ethical conduct such as the following:
1. Balance your personal needs with the needs of others or the needs of the organization. If you view a situation only from your self-interest and personal needs, you are likely to have a lopsided view of the situation.
2. Check out your company code of conduct or the personnel manual. If the rules are clear, then follow the rules. To circumvent rules does not pay. If the company is silent or your issue falls in a gray area, meet your boss to get clarification.
3. Analyze all aspects of the situation. Ask yourself how your superior, peers or subordinates will react to your potential action or decision. You can even go further to examine consequences to other stakeholders like customers, owners etc.
4. Try the ethics test. Ask yourself if the action is the right thing to do, if it is fair and honest to all concerned. Ask yourself if other ways or options exist in addressing your concerns.
Godbless!
bonsal
"Unless you try to do something beyond what you have already mastered, you will never grow."
- ronald e. Osborn
- ronald e. Osborn
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Guest
saragpat,
in the 90s, the government launched the moral recovery program, contracting out to NGOs a slew of value-related trainings. it was hoped that people at work in government would become essential instruments of social and moral change. the program however, as expected, failed. and so to this day, corruption and other bureaucratic misconducts persist in the government.
remember the essay i wrote ('a paragon for the bureaucracy') which won first prize in the regional essay writing contest sponsored by the civil service commission on the occasion of its centennial celebration which the inquirer subsequently published? it began, thus: "this text message hit me in the solar plexus. A man was told by god in his dream to build a better government. 'but how?' he asked, 'the bureaucracy is so messed up there's nothing i can do.' god smiled and said, 'never mind, just build a better you."
that's the point saragpat. change must start in the self. was it uncle bill shakespeare who said “to thine own self be true?” beautiful also are the words of ruben canoy: "ang lungsod nga atong gidamgo, maangkon lamang human ma usab ang atong pagkatawo."
portion of my essay then reads: "we as public servants must create a special kind of vision, one that reorients our commitment to public service with greater creativity, discipline and excellence. We must imbue ourselves with a sense of responsibility that is matched only by our sense of self-restraint and respect."
sakto kaw saragpat, an ethics check is in order.
ayo ayo ngaton.
in the 90s, the government launched the moral recovery program, contracting out to NGOs a slew of value-related trainings. it was hoped that people at work in government would become essential instruments of social and moral change. the program however, as expected, failed. and so to this day, corruption and other bureaucratic misconducts persist in the government.
remember the essay i wrote ('a paragon for the bureaucracy') which won first prize in the regional essay writing contest sponsored by the civil service commission on the occasion of its centennial celebration which the inquirer subsequently published? it began, thus: "this text message hit me in the solar plexus. A man was told by god in his dream to build a better government. 'but how?' he asked, 'the bureaucracy is so messed up there's nothing i can do.' god smiled and said, 'never mind, just build a better you."
that's the point saragpat. change must start in the self. was it uncle bill shakespeare who said “to thine own self be true?” beautiful also are the words of ruben canoy: "ang lungsod nga atong gidamgo, maangkon lamang human ma usab ang atong pagkatawo."
portion of my essay then reads: "we as public servants must create a special kind of vision, one that reorients our commitment to public service with greater creativity, discipline and excellence. We must imbue ourselves with a sense of responsibility that is matched only by our sense of self-restraint and respect."
sakto kaw saragpat, an ethics check is in order.
ayo ayo ngaton.
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Guest
saragpat,
just wanna let you know that next month, we'll be having the "dti hr training: the face of integrity." head office has already downloaded the money (only a pittance as usual!) to the provincial offices for this.
sub topics include: 1) Personal Integrity 2) The value of Integrity in the modern filipino family 3) professionalism in the workplace 4) spiritual wellness and 5) sikolohiyang pilipino on integrity development and other values.
this early, some people at the office (you know who) are squirming in their seats. search me, but why do people cringe when they attend this kind of training?
k_spy
just wanna let you know that next month, we'll be having the "dti hr training: the face of integrity." head office has already downloaded the money (only a pittance as usual!) to the provincial offices for this.
sub topics include: 1) Personal Integrity 2) The value of Integrity in the modern filipino family 3) professionalism in the workplace 4) spiritual wellness and 5) sikolohiyang pilipino on integrity development and other values.
this early, some people at the office (you know who) are squirming in their seats. search me, but why do people cringe when they attend this kind of training?
k_spy
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Guest
Dear iCeprIncEsS, bonsal, and k_spy,
thank you so much for the valuable inputs relating to your experiences, current practices, personal reflections, and proposed guidelines.
it's been a month since i have visited this forum and was so happy to see additional replies from our friends in this website. please accept my apologies for taking this long to add my comments. it's been a busy month and still become busier.
yes, it's true. acting ethical is not an easy task. however, i believe that constantly referring our actions (while doing our official functions) in line with the organisation's core values and ethical standards is possible through the introduction of a business ethics program.
if you noticed, the issues that the current government are facing is related to ethical behaviour. thus, government programs are now aligned to revisit the employee's integrity in the course of doing public service.
i'm so glad that dti has targetted such activity and you know k_spy, they also applied my suggestion but they just put a link to CSC after stating that dti strictly abides the law (RA 6713) under the MSSG Services - Employee Handbook section of http://www.business.gov.ph.
why do people cringe? they thought that it's just a waste of time, they don't believe that it will change people or make a difference or simply because they don't understand why such program is being provided. another very important aspect of any program, there is no proper conduct of evaluation. does it really address the issues targeted? who are the evaluators?
lain pay ato k_spy, yabasa mo an re-entry plan ko? yatinga sa lamang ako na in-submit na kuno sa head office na wara pa sa ako maka-pirma and for comments pa sa yadto nimo ug ni ANY. however, kun iyo na in plantsa, salamater gayud. i would appreciate if i can be furnished a copy, if ever.
that's all for now.
saragpat
thank you so much for the valuable inputs relating to your experiences, current practices, personal reflections, and proposed guidelines.
it's been a month since i have visited this forum and was so happy to see additional replies from our friends in this website. please accept my apologies for taking this long to add my comments. it's been a busy month and still become busier.
yes, it's true. acting ethical is not an easy task. however, i believe that constantly referring our actions (while doing our official functions) in line with the organisation's core values and ethical standards is possible through the introduction of a business ethics program.
if you noticed, the issues that the current government are facing is related to ethical behaviour. thus, government programs are now aligned to revisit the employee's integrity in the course of doing public service.
i'm so glad that dti has targetted such activity and you know k_spy, they also applied my suggestion but they just put a link to CSC after stating that dti strictly abides the law (RA 6713) under the MSSG Services - Employee Handbook section of http://www.business.gov.ph.
why do people cringe? they thought that it's just a waste of time, they don't believe that it will change people or make a difference or simply because they don't understand why such program is being provided. another very important aspect of any program, there is no proper conduct of evaluation. does it really address the issues targeted? who are the evaluators?
lain pay ato k_spy, yabasa mo an re-entry plan ko? yatinga sa lamang ako na in-submit na kuno sa head office na wara pa sa ako maka-pirma and for comments pa sa yadto nimo ug ni ANY. however, kun iyo na in plantsa, salamater gayud. i would appreciate if i can be furnished a copy, if ever.
that's all for now.
saragpat
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Guest