UNIVERSITY OF MAKATI
J. P. Rizal Ext., West Rembo, Makati City
HIGHER SCHOOL NG UMAK
ABM AND LANGUAGES DEPARTMENT
Course Title Title
Module
2
Business Ethics and Social No. Code of Ethics for Business
Responsibility
Learning Objectives: 1. define code of ethics and cite examples; and
At the end of the lesson, the
2. explain the different culture in a corporate world.
students should be able to:
A code of ethics sets out an organization's ethical guidelines and best practices to follow for honesty,
integrity, and professionalism. For members of an organization, violating the code of ethics can result in sanction
including termination.
Corporate cultures, whether shaped intentionally or grown organically, reach to the core of a company’s
ideology and practice, and affect every aspect of a business.
Module 2 is about Code of Ethics and regardless of size, businesses count on their management staff to set a
standard of ethical conduct for other employees to follow. When administrators adhere to the code of ethics, it sends
a message that universal compliance is expected of every employee. You will learn also that a strong corporate
culture is critical to success of every organization and cannot attract more candidates to apply for a job but also drive
the performance of your existing employees.
INTRODUCTION
Code of Ethics
A code of ethics issued by a business is a particular kind of policy statement. A properly framed code is, in
effect, a form of legislation within the company binding on its employees, with specific sanctions for violation of the
code. If such sanctions are absent, the code is just a list of pieties. The most severe sanction is usually dismissal -
unless a crime has been committed.
Business and Ethics
Business Ethics emerged as a specialty in the 1960s in the wake of “social responsibility” movement embraced
by some large corporations; that movement itself was stimulated by rising public interest in consumerism and the
environment. An important distinction exists between law and ethics. Obeying the law is the minimum level of
ethical conduct enforced in society; ethical behavior includes more than simply legal behavior. It is unethical to lie,
for instance; but lying is against the law only under certain limited circumstances - lying under oath id perjury.
Business ethics, and the codes that formally defined it, always include elements that go beyond strict legality.
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.
Examples of Code of Ethics
• Alphabet - Employees of Alphabet and its subsidiaries and controlled affiliates (“Alphabet”) should do the
right thing – follow the law, act honorably, and treat co-workers with courtesy and respect.
• Hershey - No matter what job you do or where you do it, you are Hershey. Think about that as you watch
over every business relationship, every transaction, and every product, and make sure your actions always
reflect our values.
• Starbucks - Starbucks empowers all partners to make decisions that impact our reputation. Individual actions
at work shape how the world views Starbucks, which is why it’s so important that we each take responsibility
for Our Starbucks Mission and acting ethically in all situations.
• Under Armour - Make the Right Call. It’s as simple as it sounds. Whenever you’re faced with a decision—big
or small—always do what you know is ethically right, and, of course, always follow the law.
• Verizon - We know that bigness is not our strength, best is our strength. Bureaucracy is an enemy. We fight
every day to stay “small” and keep bureaucracy out.
Code of Business Conduct and Ethics
Conflict of Interest The Company’s Code of Business Conduct and Conflict of Interest Policy require
employees to make a conscious effort to avoid conflict of interest situations; that his
judgement and discretion id not influenced by considerations of personal gain or
benefit.
Conduct of Business and The Company’s employees that recommend, endorse, or approve the procurement or
Fair Dealings sale of goods and services should make a conscious effort to avoid any conflict of
interest situations in transactions that they are involved in.
The Company allows the acceptance of gift only during the Christmas season. There is
Receipt of Gifts from no restriction in the value of the gift accepted. However, accepted gift with estimated
Third Parties value of Php 2,000 must be disclosed to the Conflicts of Interest Committee.
Respect for Trade The Company has the policies that ensure proper and authorized disclosure of
Secrets/Use of Non- confidential information. Disclosures to the public can only be done after disclosure to
Public Information the SEC and PSE by the Company’s authorized officers.
Use of Company Funds, Employees are required to safeguard Company resources and assets with honesty and
Assets and Information integrity.
Employment and Labor The Company’s Human Resources Unit ensures compliance with employment and
Laws and Policies labor laws and policies.
CONTENT
Disciplinary Actions Violation of any provision of the Code of Business Conduct may result to disciplinary
actions, including dismissal and reimbursement for any loss to the Company that
results from the employee’s action. If appropriate, a violation may result in legal action
against the employee or referral to the appropriate government authorities.
Whistle Blowing Any employee may discuss any concern on potential violation of the Code of Business
Conduct with the Conflicts of Interest Committee.
Conflict Resolution The Conflicts of Interest Committee submits recommendations to the Chairman on
courses of action to be taken on conflicts of interest.
Corporate Culture
Corporate culture is defined as the values, standards, attitudes and beliefs shared by members of an
organization. The corporate culture of a company guides its members on 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
structures that people see frequently in one form or the other.
1. Team-oriented Culture
A team-oriented culture prioritizes the employees’ happiness. These types of organizations believe that when
a n employee id happy, they become more productive, and are thus more willing to go the extra mile for their
company, and their customers.
2. Progressive Culture
When companies undergo change, they often exhibit a progressive corporate culture. For instance, acquisitions, mergers
or new investors can lead to an extensive change in the workplace. Progressive culture gives company leadership a chance to
refine goals and mission statements and try new ideas. Clear communication and transparency are often important factors in
a successful progressive culture. This type of work environment is best for people who are adaptable and enjoy change.
3. Elite Culture
Organizations that have an 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-put individuals also move up the ranks
quickly in his kind of culture.
4. Horizontal Culture
In a horizontal culture environment, everyone is encouraged to pitch in their ideas. This kind of culture is 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.
5. 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 espouse the culture, and clearly-defined hierarchies are employed.
Banks and schools are examples of companies that have conventional cultures.
Yang Yuanqing
Did you know that…
…all employees at Amazon spend two days every two years working at the
company’s customer service desk? This includes CEO Jeff Bezos. This
practice is religiously followed to help employees and the top management to
understand the customer service process.
Identify the corporate culture of the companies cited. Write T for Team-oriented Culture; P for Progressive Culture;
and E for Elite Culture; H for Horizontal Culture and C for Conventional Culture.
_____1. Google is known for hiring only the best people to join its ranks. In its Career page, under How we Hire, it is
stated: “There’s no one kind of Googler, so we’re always looking for people who can bring new perspectives and life
experiences to our teams. If you’re looking for a place that values your curiosity, passion, and desire to learn, if you’re
seeking colleagues who are big thinkers eager to take on fresh challenges as a team, then you’re a future Googler.”
_____2. Netflix gives its employees unlimited family leave. The company does not have travel policy and annual
employee reviews. The company doesn’t care about the hours spent in the office, but rather care about what is
accomplished.
_____3. Pinterest mixed data from the pinboards of each of its employees and find shared interest between them.
Tacy Chou, a software engineer at Pinterest, describes the workplace as “a very collaborative work environment.”
_____4. BPI (Bank of the Philippine Islands) gives its employees a cash subsidy of Php1000 for “good groomimg
allowance” for the purpose of purchasing their company uniforms.
_____5. Twitter employees can’t stop raving about the coolest company culture it provides to them. Warm and
smiling co-workers, rooftop meetings, open dialogues with the executives, free food, on-site gym are some of the
things that employees love the most about Twitter.
_____6. SpaceX is a high-profile example of an innovative (and relatively young) company doing big things in
aerospace manufacturing and space transport. Employees report feeling elated to literally launch rockets, but
expectations are extremely high and 60 to 70-hour work weeks are the norm. Still, knowing that they’re doing
meaningful, history-making work keeps most employees motivated.
_____7. Founded in 1892, General Electric Company (GE) is about as traditional as they come and is well-known for
its cut-and-dry management practices. Just recently, however, the company eliminated its traditional performance
review in favor of more frequent conversations between management and employees and is even launching an app
to help facilitate feedback. It’s the perfect example of an old-school company embracing technology and change.
_____8. PLDT Chief People and Culture Officer Liza Sichon shares new perspectives and insights in transforming the
Company’s culture. Having worked in Silicon Valley equipped with a diverse background in HR looking through the
lens of both a practitioner and as a consultant, Sichon emphasizes how the ongoing business transformation needs
to run parallel with a culture transformation roadmap that will draw from the collective strengths of our people to
hasten our momentum in re-establishing undisputed market leadership.
_____9. While being family run, the Aboitiz Equity Ventures operates as an equal opportunity employer, where if
anyone part of or related to the Aboitiz clan wants to work in the organization, they apply like everyone else, and
must be qualified and have competitive credentials. In 2017, it was among the eight companies in the Philippines
ASSESSMENT
named in the Forbes Global 2000 list, as well as among those named in the associated World’s Best Employers list.
____10. Nike is a powerful example of a strong corporate culture where they implement what they preach. ”Just Do
It” isn’t just their slogan, people at Nike live by it. It encourages employees to push themselves and go all out in their
jobs. Nike promotes a healthy lifestyle by providing sports facilities such as tennis and basketball courts, gyms, onsite
physiotherapists, health insurance and much more. They provide enough development training, and classes on
merchandising, leadership, and management.
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.
2. Pretend that you have your own company. Craft your own code of ethics. Choose values that you want your
company to uphold and list them. Write your code on the space provided below.
Company Name: ___________________________________________________________________
Vision: ___________________________________________________________________________
Mission: __________________________________________________________________________
Code of Ethics
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
ASSIGNMENT
__________________________________________________________________________________
Signed:
___________________
Chief Executive Officer
Choa, Valerie and Parma, Angela. Essentials in Business Ethics
Siguete, Cherille. Business Ethics and Social Responsibility
https://www.robinsonsland.com/code-of-business-conduct-and-ethics/
https://www.runmeetly.com/5-examples-company-culture-inspire
REFERENCES
https://builtin.com/company-culture/company-culture-examples
https://www.betterteam.com/code-of-ethics-and-professional-conduct
CMM
