Author: Kanin(rays)

BUSINESS ETHICS some knowledge of the rules and behaviors

Common Practices in Business Organization that are considered acceptable in social
A. Decorum and professional relati onships.
1. On ti me and Promptness
2. On preparati on Some aspects related to international business
3. On Agenda protocol are:
4. On atti re and appearance
1. Greeti ngs and Introducti ons
5. On Decorum
2. Names and Titles
6. On basic courtesy and respect
3. Organizing Meeti ngs
7. On greeti ngs
4. Punctuality and Time
8. On handshakes
5. Business Cards
9. On body language
6. Preliminary Conversati ons
10. On formal and informal address
7. Verbal Communicati on
11. On speaking in meeti ngs
8. Non-verbal Communicati on
12. On listening
9. Business Meals
13. On cell phones and laptops
10. Gift Giving
14. On business or visiti ng cards
11. Tipping Tips
15. On breaks
12. Business Atti re
16. On appropriate communicati on
17. On bargaining 5. EXAMPLE OF PROTOCOLS IN PHILIPPINES BUSINESS
18. On bringing in guests
19. On building relati onships a. Filipino family-modeled business
20. On business meals and recreati on  The boss plays a paternalisti c role and
21. On gift -giving heads a hierarchical management. In this
type of business world, which is prevalent
B. PROTOCOL in most Southeast Asian countries, a high
o Protocol means the unwritt en rules or status, mutual respect, and a good
reputati on are essenti al to success.
guidelines that are peculiar to every culture
or organizati on, and are supposed to be b. Business is personal
observed by all parti es in the conduct of  The Philippine business environment is
business, entertaining, negoti ati ng, politi cs, highly personalized and it is good to deal
etc. with business matt ers on a face-to-face
basis. In the Philippines, doing business is
1. THE BASICS OF PROTOCOL a highly personal endeavor. In the
 To encourage all employees in a company Philippines, successful business
to act in a uniform manner. relati onships are based on personal
 Helps to ensure that all employees interacti on and trust.
understand their role in the company, the c. Status-conscious
task and challenges they face, and how to  Filipinos are very status-conscious, and the
execute them as quickly and accurately as use of formal ti tles is an important way of
possible (Monet, 2016) showing respect to your business partners
and colleagues.
2. TRAINING IN PROTOCOL
 A business may provide business protocol d. Politeness and Ambiguity Filipinos
and eti quett e training for its employees.  For Filipinos, the word "no" is almost non-
existent. In a Western setti ng, it' s usually
3. BENEFITS OF PROTOCOL prett y clear when the other party isn 't
 Business protocol helps present a uniform, interested in your proposal. Given the
professional face to the crowd, to partners culture value of pakikisama and the
and donors. Business protocol may unite importance of maintaining social harmony,
employees under common goals and disagreement or interpersonal tension of
ensure that tasks are executed to the any sort is distasteful.
preferences of the company's owner.
C. Policies

4. INTERNATIONAL BUSINESS PROTOCOL o Business policy defi nes the scope or

spheres within which decisions can be
o When doing business in a foreign country taken by the subordinates in an
executi ves and managers need to have organizati on.

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 Author: Kanin(rays)
1. Features of business policy o The whole concept of marketi ng revolves
around the customer. In marketi ng, the
a. Specifi c needs of the customer come fi rst. The
b. Clear company then comes up with a product
c. Reliable/Uniform line that would best answer those needs.
d. Appropriate
e. Simple F. Bookkeeping
f. Inclusive/Comprehensive
o Accounti ng, simply put, is keeping track of
g. Flexible
money.
h. Stable
1. Diff erence between Policy and Strategy The term o The most basic acti vity in accounti ng is
"policy" should not be considered as synonymous bookkeeping. Bookkeeping is the process
with the term "strategy." The diff erence between of recording all fi nancial transacti ons to
policy and strategy can be summarized as keep track of the cash fl ow .
follows:
Single-entry bookkeeping- is an accounti ng system
a. Policy is a blueprint of the organizati onal under which every transacti on is recorded in a
acti viti es which are repeti ti ve/routi ne in single line only. This is a very simple method
nature. While strategy is concerned with which is commonly used in the checkbook records.
those organizati onal decisions which have
not been dealt/faced before in the same Double-entry bookkeeping- is a kind of accounti ng
form. system governed by certain rules which ensure
b. Policy formulati on is the responsibility of that each transacti on that takes place is refl ected
top-level management. While strategy in two separate accounts.
formulati on basically done by middle-level
G. Reportorial Requirements
management
c. Policy deals with routi ne/daily acti viti es Business Reporting or Enterprise Reporting
essenti al for the eff ecti ve and effi cient
running of an organizati on. While strategy o Is the public reporti ng of operati ng and
deals with strategic concerned mostly with fi nancial data by a business enterprise
acti on {Lymer,2013}.
d. Policy is concerned with both thought and • Reporti ng is a fundamental part of the larger
acti ons. While strategy is mostly concerned movements towards improved business
with acti on intelligence and knowledge management
e. A policy is what is, or what is not done.
While strategy is a methodology used to • There are so many kinds of reports, but what are
achieve a target as prescribed by a policy. usually required by governments and regulati ng
D. Advertising agencies are the ANNUAL REPORT, AND THE
FINANCIAL STATEMENT.
o Is how a company encouraging people to
buy their products, services, or ideas. An 1. Annual Reporti ng
adverti sement (or "ad" for short) is
• Annual reports are intended to give
anything that draws good att enti on toward
shareholders and other interested people
these things.
informati on about company’s acti viti es and
The following list are the adverti sement tacti cs fi nancial performance.
that you could use:
Annual Reports usually include:
i. Newspaper a. General Corporate Informati on
ii. Magazine b. Accounti ng Policies
iii. Radio c. Balance Sheets
iv. Television d. Cash Flow Statements
v. Directories e. Non-Audited Informati on
vi. Outdoor and Transit f. Profi t and Loss Account
vii. Direct Mails, Catalogs, and Leafl ets g. Notes to the Financial Statements
viii. Online h. Chairperson’s Statement
i. Directors’ Report
E. Marketing
j. Operati ng and Financial Review
k. Other Features

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Author: Kanin(rays)
l. Auditor’s Report C. STANDARDS AND REGULATIONS

2. Financial Statement or Financial Report • Diff erent countries have developed their
own accounti ng principles over ti me, making
• Is a formal record of the fi nancial acti viti es internati onal comparisons of companies
and positi on of a business, person, or other diffi cult.
enti ty. • Commonly referred to as Generally Accepted
• Relevant fi nancial informati on is presented Accounti ng Principles (GAAP ), these set of
in a structured manner and in a form easy to guidelines provide these basis for the
understand. preparati on of fi nancial statements.
• To ensure uniformity and comparability
BALANCE SHEET - referred to us as a statement of
between fi nancial statements prepared by
fi nancial positi on.
INCOME STATEMENT - also known as a statement diff erent companies .
of comprehensive income, statement of revenue
D. INCLUSION IN ANNUAL REPORTS
and expense.
STATEMENT OF CHANGES IN EQUITY - also known • The annual report was considered the most
as equity statement or statement of retained eff ecti ve way for corporati ons to
earnings. communicate with individual shareholders
CASH FLOW STATEMENT- reports on a company’s • It can oft en prepare in the style of a coff ee
cash fl ow acti viti es, parti cularly its operati ng, table book (“Financial Statement, 2016)
investi ng and fi nancing acti viti es.
H. DOCUMENTATION
A. PURPOSES OF FINANCIAL STATEMENTS BY
• This refers to the processes and items which
BUSINESS ENTITIES
serve as evidence for the validity or truth of
• To provide informati on about the fi nancial certain or statement.
changes in fi nancial positi on of an enterprise. • It involves the use of documents or tangible
• Financial statements are important to records, whether in physical or electronic
investors because they can provide enormous format.
informati on about a company's revenue, • It is necessary for the conduct of any
expenses, profi tability, debt load, and the business, transacti ons, or project.
ability to meet its short-term and long-term
fi nancial obligati ons. H. WHY IS A CODE OF ETHICS IMPORTANT
● Businesses that do not have a code of ethics
FINANCIAL STATEMENTS may be used for different
should develop one where employees can live
purposes:
by and make decisions with while at work.
Owners and Managers - they require fi nancial ● Without such code, how can the manager
statements to make important business know what the company considers ethical or
unethical?
decisions that aff ect its conti nued operati ons.
Employees – also need these reports in L. SAMPLE CODE OF ETHICS
making collecti ve bargaining agreements with
the management, in the case of labor unions. • Also called the code of conduct or ethical
code, sets out the company’s values, ethics,
Prospecti ve Investors - make use of fi nancial
objecti ves and responsibiliti es.
statements to assess the viability of investi ng
• A well- writt en code of ethics should also
in a business. give guidance to employees on how to deal
Financial Insti tuti ons - used them to decide with certain ethical situati ons
whether to grant a company with fresh
working capital or extend debt securiti es.
B. AUDIT AND LEGAL IMPLICATION
• An audit of the fi nancial statements of a
public company is usually required for
investment, fi nancing and tax purposes.
• An audit is a formal examinati on and
verifi cati on of an individual's or organizati on's
records and accounts, fi nances, or compliance
with a set of standards.