Business Ethics and

Social Responsibility
Module 1
Ethics and Business

CONTEXTUALIZED LEARNING-INSTRUCTION KIT

Business Ethics and Social REesponsibility
Contextualized Learning-Instruction Kit (CLIK)
Module 1: Ethics and Business
First Edition, 2020

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
trademarks, etc.) included in this book are owned by their respective copyright holders.
Every effort has been exerted to locate and seek permission to use these materials from
their respective copyright owners. The publisher and authors do not represent nor claim
ownership over them.

Published by Palawan Technological College Inc.

Development Team of the Module

Writer:

Content Editor:

Language Editor:

Reviewer:

Illustrator:

Layout Artist:

Management Team:

Palawan Technological College Inc

242 Malvar St., Pto. Princesa City, Palawan
Tel. Phone no. (048) 434-4518
Email Adress: [email protected]
 Business Ethics and
Social Responsibility
Module 1

This module was collaboratively developed and reviewed by the

faculty members and staff of Palawan Technological College Inc., We
encourage teachers and other education stakeholders to email their
feedback, comments, and recommendations to us at
[email protected]

We value your feedback and recommendations

Introductory Message

For the teacher:

This learning material is designed to help trainees enrich their learning
experiences by answering activities that are meaningful to their lives, which can be
done by themselves. Variety of tasks are presented in this module.
Activities are provided as formative assessment to check from time to time
learner understands of the lesson. Given the range of learning activities in this
package, teachers are encouraged to freely adapt them to suit their school contexts
and learners’ needs, interests and abilities.

For the Trainees:

 This Learning Resource “Ethics and Business” is developed for you to
enjoy while learning. There are various activities and check-up tests you need to
take.
Take note of the instructions as you journey through this module to have a
solid understanding on what you are expected to accomplish. Carefully read and
follow the instructions to hit what you are expected to do.
Answer keys are provided which you can refer to when checking your
answers. Record your score at the Learner’s Progress Chart and inform your teacher
on your development.
Feel free to use this material and if progress is not evident, you can make use
of it again until such that the desired passing mark is achieved.

As you read through this module, you will notice the following icons. They will
help you find your way around the module more quickly.

What I Need This will give you an idea of the skills or

competencies you are expected to learn in the
to Know module.

What I Know This part includes an activity that aims to check

what you already know about the lesson to
take. If you get all the answers correct (100%),
you may decide to skip this module.

What’s In This is a brief drill or review to help you link the

current lesson with the previous one.

In this portion, the new lesson will be

introduced to you in various ways such as a
What’s New story, a song, a poem, a problem opener, an
activity or a situation.

This section provides a brief discussion of the

What is It lesson. This aims to help you discover and
understand new concepts and skills.

This comprises activities for independent

What’s More practice to solidify your understanding and
skills of the topic. You may check the answers
to the exercises using the Answer Key at the
end of the module.
 What I Have This includes questions or blank sentence /
Learned paragraph to be filled in to process what you
learned from the lesson.

What I Can Do This section provides an activity which will help

you transfer your new knowledge or skill into
real life situations or concerns.

Assessment This is a task which aims to evaluate your level

of mastery in achieving the learning
competency.

Additional In this portion, another activity will be given to

Activities you to enrich your knowledge or skill of the
lesson learned.

Answer Key This contains answers to all activities in the

module.

References This is a list of all sources used in developing

this module.

Just remember, this module is not intended to replace textbooks and other
existing learning resources but rather to provide an additional alternative that is
contextualized and resilient to education systems which addresses the challenges of
the current pandemic.

-The Development Team

This module is packed with notes and essential information covering

everything you need to about the changes in solid materials when they are bent,
pressed, hammered or cut.

There are warm-up and exam-style practice questions for every part to give
you an idea of how well you have already grasped the lesson. This also contains
topic-based questions for focused skills to test your understanding of the concepts of
the lessons under the Most Essential Learning Competencies.

Content Standard
The trainees demonstrates understanding
 The nature of Business
 The importance of Ethics in Business
know

By the end of this module, you should be able to cover the following lessons:

Lesson 1 – Ethics and Business Introduction

Unpacked Competency:
 The nature of Business

Lesson 2 – The importance of Ethics in Business

Unpacked Competency:
 .
Lesson 3 – The Businessman’s Myths about Businessd Ethics
Unpacked Competency

Lesson 4 – The Relationship between ethics and business

Unpacked Competency


Lesson 5 – Moral Reasoning in Business

Unpacked Competency
 The Morality of Profit-Motive

6
Lesson 6 – The concept of Moral Responsibility
Unpacked Competency


Lesson 7 – Business Ethics Defined

Unpacked Competency
 Understand the definition of Business Ethics

I am sure that you will enjoy using this module, but to make the
most of it,
 Don’t just Read, LEARN actively by constantly testing
yourself without looking at the book and key to corrections.
 Jot down anything which will help you grow to remember,
and
 Understand it well enough to be able to question what you
hear on multimedia and read in the printed papers.

7
 How much
Directions: These questions will help you think about the lesson
do you already you are about to learn. Read and answer the following questions
know? carefully.
For numbers 1-10 Under the “Ethics and Business Introduction”
Identify each statement if it is true or false Write T if the
statement is correct and F if otherwise in the space provided
before each number.

______________1. Business Ethics is the study of what is the right and wrong
human behavior and conduct in business.
______________2. According to William Shaw, Moral Responsibility refers to
holding to people morally accountable for some past action or
actions.
______________3. Earning profit is a good and valid activity in business.
______________4. Making excessive profit is consider as valid hence, they are
doing business.
______________5. Just like any other ethical issue, profit motive has two sides- the
good and the bad
______________6. Traditionally, businesspeople have looked at the profit-motive as
the most important aspect of business.
______________7. Ethics plays an important role in business.
______________8. Business is also a complex enterprise that involves major
activities like purchasing, manufacturing, marketing, advertising
and others.
______________9. Marijuana plantation is considered as lawful activities.
______________10. Business is part of human society.

Lesson Business Ethics & Social

8
 Responsibility
1 Introduction

Business is part of human society. And since it is part of the complex web of
interaction among institutions and people, its activities must be viewed and
examined from the perspective of morality. Business withoutr ethics threatens the
survival of human society and in some cases, destroys the fiduciary relationship of
people. The study of Business Ethics paves the way for our common understanding
of the fundamental concepts of what is right and wrong in our human conduct and its
implications to business as an important human activity.

1. The Nature of Business

Business is as old as human civilization. In the beginning of human existence, men

took care of their own needs and wants. They hunted animals and cultivated th land
for food and clothing and people simply provided for their own. As time went on,
some people became more proficient in doing one type of work or in producing one
or several types of goods. In doing so, other people sought their products and
services so that they need not spend more time, money and effort to acquire these
goods that they need. The “manufacturer” then found out that he could continue
supplying the products or services to people if he had enough funds or goods to
barter with. He also learned that he could he could expand his trades if he was able
to acquire more capital needed to continue his entrepreneurial activities. The more
he acquired funds, the more he was able to supply goods and services to his
customers. The requirement therefore is for him to earn profit in order to stay in
business and provide the goods and services needed by the customers.

For as long as people have needs and wants, there will always be business. Those
who have capital will continue to produce and sell goods and services that will satisfy
the needs and wants of customers.

Business is an activity that is part and parcel of human society. Society will not exist
without business. Since business is an integral part of society. Its activities must be
examined from the ethical perspective, in the same way that society examines
politics, economics, government, culture and religion from the moral point of view.
The fundamental reason for examining the activities of business from the moral
perspective is for the promotion of the common good, protection of the individual’s
interests and the preservation of the human society in general. Withour eyhics,
business will be chaotic human activity because thre will be no common
understanding and agreement about what is the right and wrong human conduct.

9
Business is also a complex enterprise that involves major activities like purchasing,
manufacturing, marketing, advertising, selling and accounting. Businessmen deal
with suppliers, customers, workers, employees and even competitors.

Ironically, it is within this structure of interaction of people that a lot of questionable

practices occur-misrepresentation, questionable pricing policies, false advertising,
misbranding, lying, adulteration, unfair competition, and local price-cutting, among
others. The bottom line is, somewhere, somehow peoples rights are being violated,
their values disrespected and the interest of the common good disregarded.
Business is a good human activity. However, it is the selfish motive and personal
interests of unscrupulous businessmen that make business bad and in some
instances, unproductive.

2. The Importance of Ethics in Business

The study of business Ethics paves the way for a common ground in our
understanding of the fundamental idea of what is good and what is bad in our human
conduct. Without ethics, people, especially businessmen, will set their own moral
standards, moral rules and moral principles. This would result into a kind of
subjective morality, in which case, what is good for one may be bad for another and
vice versa. With this subjective ethical paradigm, business people will consider some
of their actions good but unacceptable to others, e.g., cheating the customers to gain
profit may be acceptable to some businessmen but bad for others. Abortion may be
correct for one person but evil for another person. Ethics as a science does not
evaluate the morality of our human conduct but also provides us with a common
understanding of the universal, objective and irreversible moral principles that should
govern our human behaviour and guide our moral decisions.

Another important aspect in business that needs profound examination is the

manner in which business leaders and managers confront ethical issues and
problems affecting the flow and dynamism of business activities. One amazing thing
that is happening to business enterprise today is the use of quantitative techniques
to measure the viability and profitability of business. Because of this trend, business
corporations nowadays evaluate, measure and predict the outcomes of their
business plans and decisions in terms of profitability and quantity of goods sold.
Thus, business firms today are capable of predicting the supply and demand of
commodities make annual budgets, determine the costs and benefits of their
decisions and calculate monthly and yearly revenues and profits. Certainly, there is
nothing wrong with this approach of managing business organizations except that
the quantitative approach is not applicable when managers talk about moral issues
and ethical problems of people. The resolution od some ethical issues like sexual
harassment, bribery, misinterpretation, thift, insider trading, conflict of interest and

10
job discrimination, among otherd, cannot be resolved by quantitative approach alone
but also by philosophical analysis and moral reasoning.

Business Ethics opens a novel way of resolving moral problems and ethical
dilemmas affecting business transactions and the interactions of people in the
corporate world. The study of Business Ethics will also enhance the human and
interpersonal skills of managers so they can be more effective in managing the
human side of the organizarion.

3. The Businessman’s Myths about Business Ethics

Businessmen are not immoral. And it would be disastrous to judge and conclude that
business people commit unethical acts in doing business. Business, certainly is a
good and productive human activity. However, it is the businessman’s wrong
perception about the role that ethics plays in the world of business that affects his
moral judgment and decision making. Here are some myths that businessmen have
about Business Ethics. (De George, 1982)

Myth # 1: Ethics Is a Personal Affair and Not a Public Debatable Matter

Some businessmen claim that ethics is a private issue and not a public matter. In
one sense, this is true because one’s concept of morality is a result of the
environmental factors like religion, culture and family values that have had a great
inmpact on the developmental of the ethical person. On the other hand, man is also
a social being, which means he is always a being in relation with other men. To say,
therefore that ethics is a very subjective matter is a myopic view of our human
nature. If ethics is a subjective thing, then it will make morality very personal and
relative, therefore, what is good for one person may be bad for another. And what is
bad for one person may be good for another person. If one believes that lying id
good. It does not necessarily mean that is also good for others. If morality is
subjective, people will make their own moral laws and principles and could be worse
if they begin to impose these personal norms on others. People are entitled to their
own values and religious belief but in the exercise of these values systems, they
must also consider the values and religious beliefs but in the exercise of this valu
system, he must also consider the impact and gravity of his actions on others. Thus,
ethics is not a personal affair but a public debatable matter.

Myth # 2: Ethics and Business Do Not Mix

Some businessmen claim that Ethics has no place at all in business. This view is
most likely grounded on the assumption that business is an autonomous human
activity where ethical standards do not exist and that businessmen are free to do
what they want. To claim that business is an activity which is independent of morality
is again a shortsighted view of the relationship between ethics and business. Since
business is part of human society and its activities operate within the structure of
beliefs and value system of people, it must also be viewed and examined from the

11
perspective of ethics. Any business activity that is devoid of morality will bring more
harm than good people in particular, and the society in general. Furthermore, the
belief that ethics does not mix with business will only justify illegal activities and will
most likely promote questionable practices in business activities. Certainly, Ethics
has an important place in business.

Myth # 3: Ethics in Business Is Relative

Akin to the view that ethics is a private and subjective matter is the claim that
morality depends on the person himself and his environment. This is another wrong
perception on the role that ethics plays in the world of business. Some businessmen
claim that morality id relative, which means, the fundamental concepts of right and
wrong depend on cultural and religious values of people. This implies further that
what may be considered a right action in one country may be unacceptable in
another country. Abortion may be legal in Japan but certainly not in the Philippines. If
morality is relative then what is good in one place may be evil in other places, and
vice versa. And if morality is viewed this way, then who’s going to tell us which
actions are good and which actions are bad objectively? The truth of the matter is,
there are universal moral principles that people share and agree upon regardless of
religious orientations, cultural expressions and value systems. And so, all peoples
around the world believe that murder is always wrong, that stealing is always a bad
action and bribery is always unacceptable. The study of Ethics paves the way for our
common understanding of the fundamental principles of right and wrong as reflected
in our nature and conduct as human beings.

Myth # 4: Good Business Means Good Ethics

Some businessmen claim that good business means good ethics. This certainly is a
myth. A business may be profitable but the means of acquiring profits may be
questionable. Drug-trafficking is a profitable business and so some rules and values
of people. The study of Ethics in business encourages businessmen and managers
to look closely into the end and the means of doing business. Profit maximization is a
good end in business but the means of getting those profits must also be examined.
The end does not justify the means.

Myth # 5: Business Is a War

Some business leaders and businessmen believe that business is a war. For them,
the market is an arena of gladiators trying to fight for survival and vying for the
number one position. Because of this belief, businessmen often resort to using
predatory tactics to destroy the competitiors in order to emerge as the market leader.
Business is a good human activity, and as an integral part of the society. It must
promote healthy competition and not destroy the competitors.

12
4. The Relationship Between Ethics and Business

Ethics plays an important role in business. Without morality, business will be chaotic
human activity. Ethics is not a study of positive laws intended to govern and regulate
the actions of people doing business. The concern of ethics as a philosophical
science is to discover that there are unwritten laws, written in the hearts of men that
should govern our human conduct where positive laws may be absent, and in some
cases, not very clear. The following arguments justify the significant role that ethics
plays in the world of business.

4.1 Business is an integral part of human society. Therefore, the actions of

individuals and institutions in business must be subjected to moral rules and moral
evaluation.

4.2 In business, as in any other human endeavour, “what is legal may not
necessarily be moral” People tend to confuse legality with morality. An action may be
legal but not necessarily moral, e.g., capital punishment (death by lethal injection)
For some, this is legal but in truth, this is immoral. Ethics provides us with clear
distinction between morality and legality.

4.3 Laws are insufficient. They cannot cover all aspects of our human behaviour.
Laws are sometimes absent or unclear in some areas of our human conduct. Ethics
is the unwritten law, written in the hearts of men. In the absence of the law, Ethics
will help us discern the correct conduct to follow based on the dictates of conscience
and reason.

4.4 In today’s technocrat-oriented business education, the trend is to train managers

to maximize profits by quantifying the operations of business. Certainly, the
operations of business must be aided by quantitative instruments to measure and
predict expected outcomes. However, this is only one side of managing the
enterprise. Managers and business leaders must also be prepared to respond to
complex situations bearing ethical consequences.

4.5 Peter Drucker argues that “the business enterprise is an organ of society and its
actions have a decisive impact on the social scene” Drucker simply reminds us tht a
business corporation is not just created to make profits but also to consider its moral
and social obligations to its stakeholders. Business organozations should not just
look after their own interests but also the interest of the common ggod.

5. Moral Reasoning in Business

The essence of studying Business Ethics is to provide the manager as a decision

maker with a framework for the resolution of moral issues and problems affecting
business activities and the organization itself. Moral reasoning is a process in which
ethical issues and problems are benchmarked against a moral standard so that a
moral judgment is made possible. Since managers are tasked to solve problems of
the organization and its related activities, it is also the responsibility of managers to

13
help in the resolution, if not the prevention, of moral issues that may have adverse
effects to the operations of the business.

Ethical Issues REALITY Moral Norm

Problems CHECK Moral Judgment
Moral Standard

Company Policy

Ethical Principle

SITUATION PROBLEM DECISION RESOLUTION

ANALYSIS ANALYSIS ANALYSIS

Examples: Graft; Gravity of offense Company Moral or Imoral;

Sexual Harassment; rules/policies; Legal or Ilegal
Theft; Bribery Frequency of offense ethical priciples;
codes of conduct;
Harm done
moral norms
Number of people
affected

Cost

Figure 1. Frame for Moral Reasoning

Characteristics of a Good Moral Standard (Shaw, 1999):

1. A good moral standard is one that looks at the issue as something that is very
serious, e.g., murder, graft and corruption, stealing.

2. A good standard must be grounded on good moral argument. A good argument is

an argumentthat always tells the truthg. A solid moral arguments leaves no room for
loopholes and counter arguments.

14
3. A good standard should be objective and not subjective. It should be universally
accepted and should apply to all. What is good for one person should be at the same
time good for everybody.

4. A good standard, when violated, brings about feelings of guilt, shame and remorse
of conscience.

6. The Morality of Profit-Motive

People go into business for a number of reasons. Some go into business for
personal satisfaction. Others are in business to earn a livelihood. Still others are in
business because they want to serve the society through the goods and services
they ofer to the customers. But the most common, if not the most dominant reason
why people go into business, is to make a profit. Business as an activity is
unthinkable without profit as motive.

Businessmen consider profit as a form of anticipated reward or a compensation for

the efforts they spend, skills they apply and returns for the capital they invested in
putting up and organizing the business.

Traditionally, businesspeople have looked at the profit-motive as the most important

aspect of business. The view of Milton Friedman, a noted aconomist, reflects this
sentiment. He says that the “only responsibility of business is to make profit so long
as one stys within the rules of the game and engages in open and free competition
without deception or fraud “Peter Drucker, an equally famous management guru on
the other hand, disagrees with this view and says that, “ the primary responsibility of
business is to look for customers and satisfy their needs and wants.” Following this
line of thinking, Drucker is simply hinting that, albeit, profit is an important aspect of
business, there are other factors that the businessman must also consider in doing
business such as customer satisfaction, quality products, after sales policies, fair and
reasonable pricing, among others.

Because of these differences of opinions the issue of profit-motive is a subject matter

that needs to be carefully considered in the study of Business Ethics. Is profit-motive
in business good or bad? Is it moral or immoral?

6.1 The Assumptions of Profit-Motive:

Understanding the nature and morality of profit-motive starts with the examination of
some given factors and assmptions in which the idea of profit-motive operates.
These factors are the following:

1. Profit-motive in business is an ethical issue. Since business is an integral part of

society, its activities, including profit-making, must be examined from the perspective

15
of morality. However, in business, the concept of what is a reasonable profit is still a
subject of endless debates.

2. Profit-motive as an ethical issue operates within the two important aspects of our
huyman conduct-freedom and the structure of business. The element of freedom
implies that businessmen have the right to decide on the amount of profit they want
to earn in the process of selling goods and services to customers. The structure of
business, on the other hand, is a tacit guidelinethat governs business activities
including profit-making. Thus, any business activity is aimed at a monetary gain
because that is part of the structure of business. The ultimate criterion therefore of
gauging the success or failure of business is its ability to generate profits.

6.2 The Good and the Bad Sides of Profit-Motive:

Just like any other ethical issue, profit-motive has two sides- the good and the bad.
Fr. Moga, S.J. (2004) describes vividly the positive and negative implications of
profit-motive:

A. The Good of Profit-Motive:

1. Profit-motive motivates people to do something meaningful, e.g., it gives human
life a goal to pursue and something to live for.

2. Profit-motive promotes ingenuity and cleverness in running a business, e.g.,

business leaders and entrepreneurs have to struggle hard to overcome obstacles in
order to achieve success.

3. Profit-motives makes people productive. Because of their desire for money,

businessmen have become productive and some of their products have been useful
and have enhanced the quality of human life.

4. Profit-motives generates potential capital for the business. Profit is potential

capital, something that can be invested to establish new businesses. In this way,
profit also results in more jobs and more goods and services for the public. The
society as a whole thus benefits from the profits gained by a profit-oriented capitalist.

B. The Bad Side of Profit-Motive:

1. Profit-Motive promotes rivalry among competitors. Sometimes the competition

becomes so stiff that it results into a “dog-eat-dog” world of business where success
is achieved by competing with others and pushing them down in order that one’s
own business might succeed.This certainly dehumanizes business as an important
human activity.

16
2. Profit-motive makes people focus only on making money, that is, to sell as many
goods as possible without considering whether or not these products satisfy the
needs and wants of consumers and end-users.

3. Profit-motive turns the businessman from being a reflective and a questioning

person because he focuses his attention only on the practical activity of making
money. Thus, a life centered on profit only results into a narrow view of existence,
deficient in many important dimensions of human life.

4. Profit-motive promotes self-interest rather than the common good. It has, to some
extent, benefited some businessmen but it has also created some social cost that
many people, if not the majority, have to bear, e.g., depletion of the natural
resources, toxic wastes being thrown into the rivers, pollution of the environment and
disregard for the next generations to come.

6.3 Ethical Considerations of Profit-Motive in Business Business:

1. Earening profit is a good and valid activity in business.Commercial activities will

be absurd without the profit-motive. However, in the process of generating profit, an
ethical discernment is required for the businessman: Is my profit fair enough for me
and my customers? Did I consider important factors and parameters in making profit
such as the costs of goods sold, overhead, mark-ups, profit margins, and the like.

17
Social Responsibility and Ethics
Social responsibility is an ethical theory in which individuals are accountable for
fulfilling their civic duty, and the actions of an individual must benefit the whole of
society. In this way, there must be a balance between economic growth and the
welfare of society and the environment. If this equilibrium is maintained, then social
responsibility is accomplished.

Socially Responsible and Ethical

The theory of social responsibility is built on a system of ethics, in which decisions
and actions must be ethically validated before proceeding. If the action or decision
causes harm to society or the environment, then it would be considered to be
socially irresponsible.

Moral values that are inherent in society create a distinction between right and
wrong. In this way, social fairness is believed (by most) to be in the “right”, but more
frequently than not this “fairness” is absent. Every individual has a responsibility to
act in manner that is beneficial to society and not solely to the individual.

When Do Social Responsibility and Ethics Apply?

The theory of social responsibility and ethics applies in both individual and group
capacities. It should be incorporated into daily actions/decisions, particularly ones
that will have an effect on other persons and/or the environment. In the larger, group
capacity, a code of social responsibility and ethics is applied within said group as
well as during interactions with another group or an individual.

Businesses have developed a system of social responsibility that is tailored to their

company environment. If social responsibility is maintained within a company, then
the employees and the environment are held equal to the company’s economics.
Maintaining social responsibility within a company ensures the integrity of society
and the environment are protected.

Often, the ethical implications of a decision/action are overlooked for personal gain
and the benefits are usually material. This frequently manifests itself in companies
that attempt to cheat environmental regulations. When this happens, government
interference is necessary.

18
Social Justice Issues
Social justice issues can occur in relation to practically any aspect of society where
inequality can arise as a result of unjust prejudices or policies.

Types of Social Justice Issues

Social justice issues can be delineated into two categories, which are interrelated
and often co-dependent: Inter-Social Treatment and Unequal Government
Regulation.

(1) Inter-Social Treatment involves treatment of certain groups of people based on

personally-held biases and prejudices. These prejudices most often manifest in
relation to sociological categories such as:

 Race
 Gender
 Age
 Sexual Orientation
 Religion
 Nationality
 Education
 Mental or Physical Ability
(2) Unequal Government Regulation involves laws and regulations that purposefully
or otherwise create conditions that obstruct, limit, or deny certain groups equitable
access to the same opportunities and resources available to the rest of society.
These laws can intentionally (explicitly) or unintentionally (implicitly) create the
conditions for social injustice. Areas in which government policy often gives rise to
social inequality and injustice include:

 Voting Laws (i.e. redistricting and voter ID)

 Policing Laws (i.e. search and seizure and drug scheduling)

19
  Environmental Laws (i.e. clean water and air, industrial waste disposal)
 Health Care Laws (i.e. insurance mandates and coverage eligibility)
 Education Laws (i.e. public school segregation and integration)
 Labor Laws (i.e. worker’s rights, occupational health and safety)

Social Injustices
Social injustices are prevalent throughout the globe. This complex topic occurs in
many different forms and with varying degrees motivation.

Social Inequality
Social inequality is the condition of unequal access to the benefits of belonging to
any society. In a purely equal society, every citizen is equally able to contribute to
the overall wellbeing of that society, and they are equally able to benefit from their
membership within that society.

Modes of Social Inequality

(1) Social inequality is usually the result of inter-social treatment (biases and
prejudices) that inform unjust government regulations). Social inequality can be
further broken down into two modes: direct and indirect.

(2) Direct Social Inequality occurs when unfair treatment of a group (or groups) is
deliberate and can be present in both community or government capacities. Direct
inequality is a purposeful act that takes away resources, opportunities and/or rights
from some and not others. Examples include:

 Governmental: Legislation mandating the segregation of schools and other

public places along racial lines
 Inter-Social: Business owners refusing to serve clients based on sexual
orientation
(3) Indirect Social Inequality occurs when unfair treatment of a group (or groups) is
not the explicit purpose of a policy or action, but still results in social inequality.
Examples include:

 Governmental: Legislation that eliminates or limits early and mail-in voting

and/or requires photo ID. The stated purpose of these laws is to mitigate voter
fraud but the consequence is that people who often can’t vote in-person only
on election day (students, the elderly, or those who can’t otherwise afford to
leave work or transport themselves to polling stations) are disadvantaged.
 Inter-social: Purchasing clothing that was made in sweat shops. Sweat-shop
laborers are overworked, underpaid, and often work in unsafe working
conditions, hindering their ability to contribute to and benefit from society. So

20
 while buying clothing itself does not create social inequality, it supports
conditions that do. Buying food and produce that use harmful pesticides
Indirect social inequality can be avoided if the consequences are elucidated through
education and transparency.

The Role of Social Responsibility in Business Ethics

Business ethics take into consideration responsibilities not just inside the workplace,
but also within the environmental, cultural, and social structures of communities.
They also deal with accountability issues involved in scientific research, consumer
protections, and the overall structure of any business or corporation.

Corporate social responsibility has been divided into four types that must be
considered simultaneously, including ethical, legal, economic and philanthropic
responsibilities to consumers and society.

Corporate Accountability

Corporate responsibility and accountability spreads into areas of ethics, legalities,

and regulations. It also has an impact on the economy and the environment.
Economic responsibilities refer to a business's focus on producing goods and
services for consumers. While every business wants to make a profit, such profits
should be made by following basic rules of society, which include ethical and legal
considerations.

Businesses and corporations must operate within government, state, and local
regulations and guidelines. As such, ethical responsibilities may be exemplified
through codes of conduct, civil rights, and social and acceptable standards in many
areas. Many companies strive to go beyond legal requirements. Businesses that
take care to ensure workers are safe, treated with dignity and respect, and offered
reasonable work hours and wages are considered to be ethically responsible.

It is often a challenge to balance the financial demands of stockholders and the need
to enhance profits, with the well-being of employees and the environment. For
example, many drug or chemical companies that produce pesticides or
pharmaceuticals may find that the byproduct can be pollution, damage the
surrounding environment, or present potential danger to employees and even
residents. Finding a middle ground in such situations is not easy, and unfortunately,

21
more often than not, businesses have been much more concerned with the financial
bottom line than with the safety or health of people or the environment.

Companies that get involved in promoting human welfare or goodwill are considered
to be philanthropic in nature. Those that donate money, as well as time, training, and
expertise - especially in the realm of health and medicine - are an excellent example
of a business that takes its social responsibility very seriously.

Within the United States, the wealthy are expected to help those less fortunate, and
that goes for corporations, too. Businesses that donate to charities, participate in
local services, or otherwise support the community are often admired and looked up
to. One of the largest foundations in United States history was created by Microsoft
founder Bill Gates. Whether addressing AIDS or cancer research or anything in
between, corporations that give back to the community are considered socially
responsible.

When it comes to values and social responsibility, businesses and corporations

should not only take care of their stockholders, but also be able to benefit society in
some way. In some cases, companies do so because consequences of ignoring
rules and regulations, or causing damage to the environment, may prove to be more
damaging than agreeing to follow them in the first place.

As long as a corporation appears to care about its employees and the environment,
the general public is usually more than willing to consider them socially responsible,
which rewards the corporation with higher stock values, happier employees, and of
course, a better reputation.
Companies have a huge impact on their surrounding communities and
environments. One of the ways in which a company affects any community is
through its approach to their surrounding environment.

22
What Would You Do?
Pretend for a moment that you have been named CEO of a drug manufacturing plant
in the Pacific Northwest. After the glow has worn off and you're ready to settle into
your position, you realize that your predecessors have left behind toxic chemical
waste, which is currently stored underground beneath the new parking structure. A
new office building for management personnel of the chemical plant was also built on
the location of the dump site five years ago.

After researching the situation, you discover evidence that, while the chemicals were
drained from their containers years earlier, the containers have begun to rust and are
still leaking. Unfortunately, the area where the containers have been stored is also in
direct contact with underground water supplies.

The water supply is siphoned off about 50 miles away to provide groundwater for
agricultural farming needs. Needless to say, it will cost a lot of money to deal with the
cleanup. Architects and engineers have agreed that the office building is going to
need to be destroyed in order to access the containers, and the soil in land
surrounding the office building decontaminated.

After discussing the issue with your board of directors and finance officers, you make
the decision to go ahead with the demolition and the cleanup within six months.
Funding the cleanup is going to be difficult, so you decide to offer stocks in the
company to raise the necessary funds. On the other hand, if you announce the
reason for offering the stocks, public outcry may sabotage the efforts to raise the
funding necessary.

How would you deal with this dilemma? As the CEO, one who was aware of the dire
consequences of your find, are you morally obligated to disclose to the public?
Concerns in such a situation do not merely surround the reputation or financial
success of the company, but also involve the environment as well as consumer and
community safety.

23
Ethics Versus Success

In the above scenario, it is clear that some decisions in situations are more involved
and complicated than straightforward issues. Because people hold different values,
it's often difficult to say who is right or who is wrong. Remember that values were
described as standards or beliefs that encourage people to behave a certain way.

On the other hand, hundreds, thousands, or even millions of people may be affected
by decisions made by one or a handful of individuals more concerned with financial
success than with the environment or community safety.

No specific list exists that illustrates any corporation's responsibility to the

environment. Rules and regulations have been put into place in many industries to
help provide guidance and direction, and public policy takes into consideration
concerns within various fields of natural resources, conservation, and protecting the
environment.

Environmental issues that affect businesses may include negligence and liability,
property rights, and basic ethical concepts such as rights and responsibilities. For
example, what of nuclear waste? While modern society is relying more and more on
nuclear energy, we have yet to determine a proper and guaranteed safe manner in
which to dispose of nuclear waste. In such cases, resolutions to such issues will be
left for our children or grandchildren to deal with.

When it comes to environmental responsibilities, debates will continue on moral

considerations as well as ethical concepts. For example, many of us might tend to
lean toward preserving natural environments because they are beautiful, while
others are allowed to be used and depleted because they offer nothing in the way of
beauty, recreation, or usefulness to mankind, per se.

Protecting endangered species is often a matter of relative opinion. For example,

many Americans are not so concerned about horned owls as they are with
preserving the habitat of the bald eagle. Because the bald eagle represents the
American people, it is common and understandable that a great affinity has been
associated with the bird. However, does that mean that another bird species is not
as valuable?

24
(1) give your conclusion in a given situation.(refer to situation “what would you
do”)

(2) Find out how Social Justice and Environmental Justice are intrinsically
interconnected.

(3) Cite one situation in Philippine settings, wherein Social injustice is present.

(4) Cite a situation in Philippine settings, wherein social enequality is present.

(5) Cite a situation in Philippine settings, wherein unequal government is

present.

(6) What it Mean to be Socially Responsible and Ethical?

(7) When Do Social Responsibility and Ethics Apply?

25
FEEDBACK SLIP

A. FOR THE LEARNER

Thank you very much for using this Module. This learner’s
material is aimed at ensuring your worthwhile learning through
the help of your family members. For feedback purposes, kindly
answer the following questions: YES NO
1. Are you happy about and contented of your learning
experiences using this module?

2. Were you able to follow the processes and procedures that

were indicated in the different learning activities?

3. Were you guided by anybody from your family while

studying using this module?

4. Was there any part of this module that you found difficult? If
yes, please specify what it was and why.

B. FOR THE PARENTS / GUARDIANS

Do you have any suggestions or recommendations on how

we can make improvements to this module to better serve the
learners?

Yes (Please indicate what this/these is/are?)

None

Contact Number : __________________________________

26
 NAME OF LEARNER:

Parent’s / Guardian’s Signature:

Date Received:

Date Returned:

Teacher’s Signature:

27
28
29
30
31
For inquiries or feedback, please write or call:

Palawan Technological College Inc.

242 Malvar St., Pto. Princesa City, Palawan
(048) 434-4518
[email protected]

32