THE GRADUATE PROGRAM

DBA 300:
ADVANCED GOOD GOVERNANCE AND CORPORATE
SOCIAL RESPONSIBILITY

TOPIC:
DEFINITION OF ETHICS AND ACCOUNTABILITY

ATTY. JOSE “PETIT” BALDADO

PROFESSOR

LOVELY R. TINGUHA
STUDENT

FEBRUARY 2018

DEFINITION OF ETHICS AND ACCOUNTABILITY

 DEFINITION OF ETHICS AND ACCOUNTABILITY
Ethics are principles or standards of human conduct, sometimes called morals,
and, by extension, the study of such principles is sometimes called moral
philosophy. In the west, ethics is regarded as a normative science and a breach
of philosophy because it is concerned with the norms of human conduct as
distinguished from the formal sciences such as mathematics and logic, and the
empirical sciences such as chemistry and physics.
Accountability has traditionally been regarded as the means used to control
and direct administrative behavior by requiring “answerability” to some external
authority. It has deep roots in American constitutional history, and can be linked
to the principles implicit in the Magna Carta as well as our system of checks and
balances. In public administration, ethics has most often been associated with
standards of responsible behavior and professional integrity in light of the growth
of the administrative state and the expansion of discretionary powers to public
sector bureaucracies
BUSINESS ETHICS
The study of ethics in management can be approached from many different
directions. Perhaps the most practical approach is to view ethics as catalyzing
managers to take socially responsible actions
In business, ethics can be defined as the capacity to reflect on values in the
corporate decision-making process, to determine how these values and decision
affect various stakeholder groups, and to establish how managers can use these
observations in day-to-day company management. Ethical manager strive for
success within the confines of sound management practices that are
characterized by fairness and justice. Interestingly, using ethics as a major guide
in making and evaluating business decision is popular. Furthermore, Ng (2012)
define business ethics as the study of business situation, activities and decision
where issues of right and wrong are addressed. Where right and wrong are
defined as morally right/wrong rather than financial or business strategy.
Business with Ethics
No matter how hard one tries, it is impossible to separate life from business. For
a businessman, business is life. Mahatma Gandhi (1948) said,’ it is difficult but
not impossible to conduct strictly honest business. What is true is that honesty
is incompatible with amassing of large fortune.’ The business world is an
important part of society, as it is concerned with the livelihood of people.
Business activity too is subjected to the code of conduct without any exception.
People expect businessman to possess the some rationality as any other citizen.
Therefore, there is no separate business ethics for businessmen, as ethics
applies to all activities of people. Consequently, we have to keep business within
the bounds of ethics.
There are eight (8) values regarded as essential in business ethics.
1. Freedom – This means that people decide to act in a certain way, although
could have chosen differently or they decided not to act.
Characteristics of freedom according to Anzenbacher
 Freedom derive from nature – biological needs are met (survival)
 Freedom derive form humanity – self-realization in social life

DEFINITION OF ETHICS AND ACCOUNTABILITY

  Freedom derive from mercy – to achieve justification of one’s own
action in view of eternity
Limitation of freedom = Freedom to act and Freedom to decide. The prior
sites that man can only act according to its disposition, like man cannot
fly like a bird. The latter however, means that a person is eligible, by using
rational thinking, to choose means that will lead to the accomplishment of
his or her life aims. This depends on an individual’s mental capacity
2. Justice – This concept of freedom is present in the legal code of every country.
Freedom is a balance between general rules stipulated by law and general rules
of behavior. Justice is the balance between an individual’s personal freedom and
their obedience to law and order.
Two principles in economics:

 The commutative principle: refers to commutative or equalizing justice

 The distributive principle (Rawls): example: individuals with higher pay
pays high taxes.
 The legal justice: what is legal is also just. This means that legality is a
prerequisite for justice.
3. Responsibility – Responsibility to consequences. Actions that are responses to
these to these decisions determine whether they result in desired consequences
or quite unpredictable unwanted consequences. One way or another, individual
are responsible for all the consequences that result from the way they think and
act. Humans are responsible to themselves; to the society (or other people); and
environment.
4. Trust – when one has a higher sense of responsibility, the better the relations
and trust between partners. And only those with a high level of moral credit can
be holder of trust. They radiate goodwill to others who trust their word.
5. Progress – progress in the ethical sense means the qualitative improvement of
the condition of human existence.
6. Prosperity – is achieved when economic activity is beneficial to all involved,
while no-one pays for the prosperity of others. Should one of the subjects bear
disproportionate costs for others, it is an unethical business transaction.
7. Sustainability – provide emphasis on the responsibility of the human race
towards living and non-living nature for the interest of all mankind in other
words, this is about responsible life on Earth.
8. Rationality – when behavior is regarded as rational when it derives from
conceptual discourse that is from strictly logical and methodologically proven
knowledge based on facts
The reason why ethics was long regarded as an irrelevant discipline,
explaining ideas of right and wrong in terms that are too metaphysical.

DEFINITION OF ETHICS AND ACCOUNTABILITY

MANAGING ETHICS PROGRAM IN THE WORKPLACE
12 Ethical Principles for Businesses

Ethical values, translated into active language establishing standards or rules

describing the kind of behavior an ethical person should and should not engage
in, are ethical principles. The following list of principles incorporate the
characteristics and values that most people associate with ethical behavior.

1. HONESTY. Ethical executives are honest and truthful in all their dealings and
they do not deliberately mislead or deceive others by misrepresentations,
overstatements, partial truths, selective omissions, or any other means.

2. INTEGRITY. Ethical executives demonstrate personal integrity and the

courage of their convictions by doing what they think is right even when there is
great pressure to do otherwise; they are principled, honorable and upright; they
will fight for their beliefs. They will not sacrifice principle for expediency, be
hypocritical, or unscrupulous.

3. PROMISE-KEEPING & TRUSTWORTHINESS. Ethical executives are worthy

of trust. They are candid and forthcoming in supplying relevant information and
correcting misapprehensions of fact, and they make every reasonable effort to
fulfill the letter and spirit of their promises and commitments. They do not
interpret agreements in an unreasonably technical or legalistic manner in order
to rationalize non-compliance or create justifications for escaping their
commitments.

4. LOYALTY. Ethical executives are worthy of trust, demonstrate fidelity and

loyalty to persons and institutions by friendship in adversity, support and
devotion to duty; they do not use or disclose information learned in confidence
for personal advantage. They safeguard the ability to make independent
professional judgments by scrupulously avoiding undue influences and conflicts
of interest. They are loyal to their companies and colleagues and if they decide
to accept other employment, they provide reasonable notice, respect the
proprietary information of their former employer, and refuse to engage in any
activities that take undue advantage of their previous positions.

5. FAIRNESS. Ethical executives and fair and just in all dealings; they do not
exercise power arbitrarily, and do not use overreaching nor indecent means to
gain or maintain any advantage nor take undue advantage of another’s mistakes
or difficulties. Fair persons manifest a commitment to justice, the equal
treatment of individuals, tolerance for and acceptance of diversity, the they are
open-minded; they are willing to admit they are wrong and, where appropriate,
change their positions and beliefs.

6. CONCERN FOR OTHERS. Ethical executives are caring, compassionate,

benevolent and kind; they like the Golden Rule, help those in need, and seek to
accomplish their business objectives in a manner that causes the least harm
and the greatest positive good.

7. RESPECT FOR OTHERS. Ethical executives demonstrate respect for the

human dignity, autonomy, privacy, rights, and interests of all those who have a
stake in their decisions; they are courteous and treat all people with equal
respect and dignity regardless of sex, race or national origin.

DEFINITION OF ETHICS AND ACCOUNTABILITY

8. LAW ABIDING. Ethical executives abide by laws, rules and regulations
relating to their business activities.

9. COMMITMENT TO EXCELLENCE. Ethical executives pursue excellence in

performing their duties, are well informed and prepared, and constantly
endeavor to increase their proficiency in all areas of responsibility.

10. LEADERSHIP. Ethical executives are conscious of the responsibilities and

opportunities of their position of leadership and seek to be positive ethical role
models by their own conduct and by helping to create an environment in which
principled reasoning and ethical decision making are highly prized.

11. REPUTATION AND MORALE. Ethical executives seek to protect and build
the company’s good reputation and the morale of its employees by engaging in
no conduct that might undermine respect and by taking whatever actions are
necessary to correct or prevent inappropriate conduct of others.

12. ACCOUNTABILITY. Ethical executives acknowledge and accept personal

accountability for the ethical quality of their decisions and omissions to
themselves, their colleagues, their companies, and their communities.

RESOLVING ETHICAL DILEMMAS AND MAKING ETHICAL DECISION

Here are the six steps used to effectively manage this ethical dilemma and can
help you handle one, as well:

1. Never Lie. It’s immoral and could cause a bigger problem for you than the
original situation.

2. Don’t respond more quickly than you need to. Sometimes things work out
without any input form you or the facts on the ground can change.

3. Understand your legal, ethical and moral responsibilities and adhere to all
agreements you have made.

4. Reach out to outside experts that can provide you with ideas, advice, and
insight.

5. Devise a strategy based on facts, logic, and sound advice.

6. Prepare in advance how and what you are going to communicate and act with
confidence.

DEFINITION OF ETHICS AND ACCOUNTABILITY