What this Module all about?

Hello Good day! I hope you’re fine. This module is about moral
principles that applied in a business and social responsibility
inside a company. This module really helps you what are the attitudes to
possess to connect or to communicate inside the company.

What you are expected to learn?

Students who successfully complete this course will be able to:

1. Understand the value of business ethics.

2. Learn what are the principles that companies should contribute to

the society.

How to learn from this module?

In order to gain maximum benefit from this module, you have to follow
carefully all the given instructions.

1. You must work through this module in sequence as the contents are
presented.
2. Following shortly is a pretest. Do the test and check your answers by
comparing them with the key to answers given at the last part of this
module. Do not look at the key to answer page unless you have
completed answering the test.
 3. After reading and understanding each lesson, you have to do the
given activity and answer the self-check to determine whether you
understood what you have read.
4. Posttest is provided at the end. You must answer it and should get a
score of at least 80% in order tomove on to the next module. If you get
lower, you have to go through the module again particularly on the
part wherein you have committed an error.

At this momemnt, try to answer the pretest. This will enable you to find out
what you already know and what you still need to know about Etchical and
Social Responsibilities of Business. Good luck!

Reminder:
Be honest in answering and checking the test questions. Remember
that you are studying by yourself, your learning totally depends on you.

PRETEST
Instruction: Multiple Choice. Select the best answer. Encircle the best
answer.

1. This is a form of applied ethics or professional ethics?

a. Etiquette

b. Business ethics

c. Business rules

d. Business environment

2. It is a field of ethics that deals with ethical questions in many

fields such as medical, technical, legal and business ethics.

a. Applied ethics
 b. Universal Ethics

c. Business ethics

d. Legal ethics

3. He opined that “People of the same trade seldom meet together,

even for merriment and diversion, but the conversation ends in a
conspiracy against the public, or in some contrivance to raise
prices”.

a. Carl Marx

b. Socrates

c. Adam Smith

d. John Rutherford

4. It is necessary in business because business can become

unethical, and there are plenty of evidences as in today on
unethical corporate practices.

a. Discussion on behavior

b. Discussion on people

c. Discussion on behavior

d. Discussion on ethics

5. It is the principle that companies should contribute to the welfare

of society and not be solely devoted to maximizing profits.

a. Social welfare

b. Business responsibility

c. Social responsibility

d. Social act
6. The Social Responsibility can be "________", meaning there is
exemption from blame or liability.

a. Negative

b. Positive

c. Loss

d. Prestige

7. The Social Responsibility can be "_________," meaning there is a

responsibility to act beneficently (proactive stance).

a. Negative

b. Positive

c. Loss

d. Prestige

8. Businesses can use ___________ to secure their businesses by

making decisions that allow for government agencies to
minimize their involvement with the corporation.

a. Business decision making

b. Ethical decision making

c. Owner decision making

d. Social decision making

 Business ethics (also known as Corporate ethics) is a form of applied
ethics or professional ethics that examines
ethical principles and moral or ethical
problems that arise in a business
environment. It applies to all aspects of
business conduct and is relevant to the
conduct of individuals and business
organizations as a whole. Applied ethics is a
field of ethics that deals with ethical
questions in many fields such as medical, technical, legal and business
ethics.

Why business ethics?

Discussion on ethics in business

is necessary because business
can become unethical, and there
are plenty of evidences as in
today on unethical corporate
practices.

Even Adam Smith opined that 'People

of the same trade seldom meet
together, even for merriment and
diversion, but the conversation ends in
a conspiracy against the public, or in
some contrivance to raise prices'.
 Firms and corporations operate in the
social and natural environment. By
virtue of existing in the social and
natural environment, business is duty
bound to be accountable to the
natural and social environment in
which it survives.

Irrespective of the demands and pressures

upon it, business by virtue of its existence is
bound to be ethical for at least two reasons:
one, because whatever the business does
affects its stakeholders and two, because
every juncture of action has trajectories of
ethical as well as unethical paths wherein the
existence of the business is justified by
ethical alternatives it responsibly chooses.

One of the conditions that brought

business ethics to the forefront is the
demise of small scale, high trust and
face-to-face enterprises and emergence
of huge multinational corporate
structures capable of drastically affecting
everyday lives of the masses.
(Social Responsibility : The Term Social Responsibility refers to the idea that
companies and corporations should contribute wealth or resources solely dedicated to
the improvement of society as a whole. The principal of social responsibility dictates
that these entities should contribute at least a small amount of resources to the general
well being of humanity. These actions should not, in any way, be profit-generating)

Social responsibility is the principle that companies should

contribute to the welfare of society and not be solely devoted to maximizing
profits. This responsibility can be "negative", meaning there is exemption
from blame or liability, or it can be "positive," meaning there is a
responsibility to act beneficently (proactive stance).

Businesses can use ethical decision making to secure their businesses by

making decisions that allow for government agencies to minimize their
involvement with the corporation. (Kaliski, 2001) For
instance if a company is proactive and follows the United
States Environmental Protection Agency (EPA) guidelines
for emissions on dangerous pollutants and even goes an
extra step to get involved in the community and address
those concerns that the public might have; they would be
less likely to have the EPA investigate them for
environmental concerns.

“A significant element of current thinking about privacy,

however, stresses "self-regulation" rather than market or
government mechanisms for protecting personal
information” (Swire , 1997) Most rules and regulations are
formed due to public outcry, if there is not outcry there
often will be limited regulation.

Critics argue that Corporate social responsibility (CSR) distracts from the
fundamental economic role of businesses; others argue that it is nothing
more than superficial window-dressing; others argue that it is an attempt to
pre-empt the role of governments as a watchdog over powerful multinational
corporations (Carpenter, Bauer, & Erdogan, 2009).

The class will divide into two groups. The first student in both side will the first
messenger. He will pass the message to the next member and pass it until to the
last member of the group. The last member will go in front, act the message then
he will say what the message is. The message will pass through action. The group
who will use sound or mouth will be disqualified. Then, the group who will finish first
and followed the instruction will be the winner.

1. Ethics
2. People
3. Social Responsibility
4. Business

Write T if the statement is true and F if is false.

_____1. Social responsibility is the principle that companies should

contribute to the welfare of society and not be solely devoted to
maximizing profits.

_____2. Adam Smith opined that “People of the same trade seldom
meet together, even for merriment and diversion, but the conversation
ends in a conspiracy against the public, or in some contrivance to raise
prices”.

_____3. Discussion on people in business is necessary because business

can become unethical, and there are plenty of evidences as in today
on unethical corporate practices.

_____4. Business ethics is also known as Sergeant ethics.

_____5. Business ethics is a form of applied ethics or professional ethics

that examines ethical principles and moral or ethical problems that
arise in a business environment.
 POST TEST
Instruction: Multiple Choice. Select the best answer. Encircle the best
answer.

1. This is a form of applied ethics or professional ethics?

e. Etiquette

f. Business ethics

g. Business rules

h. Business environment

2. It is a field of ethics that deals with ethical questions in many

fields such as medical, technical, legal and business ethics.

e. Applied ethics

f. Universal Ethics

g. Business ethics

h. Legal ethics
3. He opined that “People of the same trade seldom meet together,
even for merriment and diversion, but the conversation ends in a
conspiracy against the public, or in some contrivance to raise
prices”.

e. Carl Marx

f. Socrates

g. Adam Smith

h. John Rutherford

4. It is necessary in business because business can become

unethical, and there are plenty of evidences as in today on
unethical corporate practices.

e. Discussion on behavior

f. Discussion on people

g. Discussion on behavior

h. Discussion on ethics

5. It is the principle that companies should contribute to the welfare

of society and not be solely devoted to maximizing profits.

e. Social welfare

f. Business responsibility

g. Social responsibility

h. Social act

6. The Social Responsibility can be "________", meaning there is

exemption from blame or liability.

e. Negative
 f. Positive

g. Loss

h. Prestige

7. The Social Responsibility can be "_________," meaning there is a

responsibility to act beneficently (proactive stance).

e. Negative

f. Positive

g. Loss

h. Prestige

8. Businesses can use ___________ to secure their businesses by

making decisions that allow for government agencies to
minimize their involvement with the corporation.

e. Business decision making

f. Ethical decision making

g. Owner decision making

h. Social decision making

ANSWER KEY
• PRETEST AND POST TEST

1. B.

2. A.

3. C.

4. D.

5. C.

6. A.

7. B.

8. B.

• SELF-CHECK

1. T

2. T

3. F

4. F

5. T