ETHICAL ENVIRONMENT

of Management

By Jomar F. Rabajante
International Society of Philosophers, UK
Lifetime Open Member
 The Field of Ethics
(Moral Philosophy)

• Involves systematizing, defending

and recommending concepts of
right and wrong behavior.
• Morals define personal
character, while ethics stress a
social system in which those
morals are applied.
www.wisegeek.com
 Ethics, defined (Filipino)

• Some understood Ethics in its

American sense, as what is “right”
or “wrong” (esp. in business ethics)
• The ultimate basis of the Filipino
psyche for its judgments: concepts
of “kasalanan” (sin) and “mabuting
gawa” (virtuous action), which are
of a religious extraction
Sison, UA&P; Angeles, ADMU
 Virtue Theories
(good habits of character)

• Cardinal virtues (Plato): wisdom,

courage, temperance and justice
• Emphasized moral education
• Aristotle: most virtues fall at a mean
between extremes
• Theological virtues (Christian): faith,
hope and charity/love
• Other virtues: benevolence & self-respect
• VS vices (e.g. cowardice, insensibility,
injustice and vanity)
www.iep.utm.edu
Sources of Morality/Ethics

Societal
Theories on Ethics
Theories on Ethics
Theories on Ethics
Sequential Perspectives
on Ethics Analysis

External Factors

Intrinsic Values
 “Is it ethical?” Tests

Pagano, UIC at Chicago

“Is it ethical?” Tests

Immanuel Kant
“Is it ethical?” Tests
“Is it ethical?” Tests
“Is it ethical?” Tests

Transparency
The Global Compact (UN)
DUTY Tests
 Rights Theory

www.iep.utm.edu
 Moral Rights, Four Features

www.iep.utm.edu
 Three Models of
Management Morality/Ethics

Bakhsheshy, Univ. of Utah

Developing Moral Judgment
Common Management’s
Ethical Dilemmas
• Conflict of Interest (e.g. stakeholder VS
shareholder concept)
• Protests
• Whistleblowing CORRUPTION!
• Bribery
• Bluffing and Deception
• Deflating Human Rights
• Right VS Right – situation contains
shades of gray
Choosing “the lesser of two evils”
Common Management’s
Ethics Tools
• Codes of Ethics
• Codes of Conduct
• Policies and Procedures
• Management Relations
 Review…

Ethical Environment of Management

• Definition – Morality & Ethics
• Filipino Ethics
• Sources of Morality/Ethics
• Theories on Ethics
• Sequential Perspectives on Ethics Analysis
• “Is it ethical” Tests
• Three Models of Management Morality/Ethics
• Common Management Ethical Dilemmas and
Ethics Tools
 Ethics VS Etiquette

• Expectations for social Complexity

Etiquette
of

behavior according to
conventional norms within
a society, social class, or
group.
• A rule of etiquette may
reflect an underlying ethical
code, or it may reflect a
person's fashion or status.
• Manners (no formal system
for punishing
transgressions, other than Economic Class
social disapproval)
Philippines - Republic Act No. 6713
Republic Act No. 6713
Norms of Conduct (RA 6713)

• Commitment to public interest

• Professionalism
• Justness and sincerity
• Political neutrality
• Responsiveness to the public
• Nationalism and patriotism
• Commitment to democracy
• Simple living
Duties (RA 6713)

• Act promptly on letters and requests

• Submit annual performance reports
• Process documents and papers
expeditiously
• Act immediately on the public’s personal
transactions
• Make documents accessible to the public
 Prohibited Acts and Transactions
(RA 6713)
• Financial and material interest
• Outside employment and other activities related
thereto (This prohibition shall continue to apply for
a period of one (1) year after resignation,
retirement, or separation from public office...)
• Disclosure and/or misuse of confidential
information
• Solicitation or acceptance of gifts
(Nothing in this Act shall be construed to restrict or
prohibit any educational, scientific, or cultural
exchange programs subject to national security
requirements.)
 Statements and Disclosure
(RA 6713)
• Statements of Assets and Liabilities and Financial
Disclosure
• Identification and disclosure of relatives
• Accessibility of documents
 Divestment (RA 6713)
• A public official or employee shall avoid conflicts
of interest at all times. When a conflict of interest
arises, he shall resign from his position in any
private business enterprise within thirty (30) days
from his assumption of office and/or divest
himself of his shareholdings or interest within
sixty (60) days from such assumption.