Business ethics has been part of the applied curriculum specifically in senior high school business subjects.

1. Mgt.36

2.  Ethics  known but not well
understood

3.  Man (?)
 What separates man from the
rest of the animal kingdom?

4.  Man
◦ Is a rational moral being
 discern right from wrong
 decide what is good for him and society
◦ has conscience

5.  personal values
◦ childhood (parental teaching)
◦ School(second home)
 actions as a businessman will be
colored by the personal values that he
formed at home and at school

6.  Shaping a person’s outlook towards life and
towards his fellow human beings shall not
be left by chance
 Requires deliberate effort

7. Culture
Values,
Norms,
Artifacts,
Behavior
Voluntary
Actions,
Governance
, Core
Practices,
Legal
Compliance

8. Purpose of Business Ethics

9.  Help (would be) businessman to determine
what business practices are right and what
are wrong;
 (hopefully) use this knowledge to guide them
in decision making

10.  To make businessman realize that one cannot
employ double standards to the actions of
other people and to their own actions

11.  To show businessmen that common practices
which they have thought to be right because
they see other businessmen doing it are really
wrong

12.  To serve as a standard or ideal upon which
business conduct may be based.
◦ Conscience continually activated (feed w/
knowledge…)
◦ Virtuous life

13.  The world lacks a standard code of ethics to
guide
  to formulate codes of conduct (personal
and professional)
  guide : business plans and strategies

14. Ethics

15.  Moral standards of right and wrong in
conduct of judgment and behavior
 From the Greek word “ethos”  customs

16. Moral

17.  A good and right choice
 From the Latin word “moralis” which means
customs or way of life

18. Business Ethics

19.  Standards of moral conduct, behavior and
judgment in business

20.  Individual values differ
“ethical standard” varies
no uniform standard

21.  The Myths and Facts on Business
 Business is a war (morals do not apply ?)
 Business is destructive in nature (but
business is actually constructive)

22. Ethical
Culture
Profits
Employee
Commitment
& Trust
Investor
Loyalty
& Trust
Customer
Satisfaction
& Trust

23.  Principle 1 : The Risk Return Trade-Off
 Principle 2 : The Time Value of Money
 Principle 3 : Cash – Not Profits – is King
 Principle 4 : Incremental Cash Flows
 Principle 5 : The Curse of Competitive Markets
 Principle 6 : Efficient Capital Markets
 Principle 7 : The Agency Problem
 Principle 8 : Taxes Bias Business Decisions
 Principle 9 : All Risk is not equal
 Principle 10 : Ethical behavior

24.  Ethical behavior is doing the right thing, and
ethical dilemmas are everywhere in finance
 Acting in an ethical manner is morally correct
 Values
 (?) Business errors vs. ethical errors
 Ethical errors – end career; terminate future
opportunities
 Eliminates trust
 Loss of public confidence
 Social responsibility (CSR) – broader constituents

25. Social Responsibilities of Strategic Decision Makers:
Carroll’s View of business responsibility:

26. Social Responsibilities of Strategic Decision Makers:
Carroll’s View of business responsibility:

27. Social Responsibilities of Strategic Decision Makers:
Carroll’s View of business responsibility:

28. Carroll’s View of business responsibility:

30. People
Planet
Profit

34.  San Miguel Corp : socialized housing
(disasters); environmental responsibility;
livelihood; health; education, etc.

36. Top 10 Corporate Taxpayers in the Philippines 2011
1. Smart Communications, Inc. = P10.23 billion
2. Manila Electric Company (MERALCO) = P8.30 billion
3. Shell Philippines Exploration, B.V. = P6.39 billion
4. Chevron Malampaya LLC = P6.30 billion
5. Nestle Philippines, Inc. = P4.89 billion
6. San Miguel Brewery Inc. = P4.78 billion
7. Globe Telecom, Inc. = P4.52
8. PMFTC Inc = P3.71 billion
9. Petron Corporation = P2.62 billion
10. SM Prime Holdings, Inc. = P2.22 billion


37.  GOKONGWEI BROTHERS FOUNDATION (GBF)
◦ Gokongwei Brothers Foundation Technical Training
Center
◦ Gokongwei Brothers Foundation Scholarship for
Excellence and University Scholarship Program
 JOHN GOKONGWEI INSTITUTE FOR
LEADERSHIP AND ENTERPRISE DEVELOPMENT
(JG-ILED)

38.  The SM Investment Corp. college scholarship program
 School building program: has since built 114 classrooms
nationwide. Recently, SM donated the Henry Sy Sr. Hall to the De
La Salle University Manila
 Livelihood program : the Kabalikat sa Kabuhayan Farmers’
Training Program in Bacolod City in which farmers were taught
theoretical and practical approach to farming. The program has
since expanded and now includes animal dispersal projects,
housekeeping, food and beverage, wait service and kitchen aide,
basketry, mushroom production, candle-making, and hair-
cutting for the out-of-school youth.
 SM also has its Mall Outreach Program that encourages shoppers
to donate whatever may be useful to the less fortunate.
 SM Cares for the Environment, the SM Cares for the Elderly, and
the establishment of Breastfeeding Stations in Malls nationwide.