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Fairness, Accountability and Transparency

1. Fairness, accountability, and transparency are important principles for businesses and socioeconomic development. They refer to equal treatment, taking responsibility for actions, and openly sharing information. 2. Philippine companies and stock investors value these principles. Several large Philippine conglomerates were ranked highly for their practices related to equitable treatment of stakeholders, disclosure, and board responsibilities. 3. Transparency demonstrates respect, protects public perception, increases staff involvement, improves customer service, and aids image management. It is crucial for non-profits to show accountability for their community impact. These principles foster healthy competition and development.

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70 views18 pages

Fairness, Accountability and Transparency

1. Fairness, accountability, and transparency are important principles for businesses and socioeconomic development. They refer to equal treatment, taking responsibility for actions, and openly sharing information. 2. Philippine companies and stock investors value these principles. Several large Philippine conglomerates were ranked highly for their practices related to equitable treatment of stakeholders, disclosure, and board responsibilities. 3. Transparency demonstrates respect, protects public perception, increases staff involvement, improves customer service, and aids image management. It is crucial for non-profits to show accountability for their community impact. These principles foster healthy competition and development.

Uploaded by

Ronie Cruda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Fairness,

Accountability and
Transparency
FAIRNESS
• Refers to equal treatment.
• One of the hardest, yet important, to practice on a
consistent basis.
• The fairer the entity appears, the more likely it is that
it can survive the pressure of interested parties.
FAIRNESS IN BUSINESS
• Refers to the value of treating people with a standard of
performance that is consistent and equal based on
commitments. It means :
 giving customers a reasonable value for their money.
Providing an unbiased work environment
Caring for the community members and business partners
with similar level of fairness expected from them is also
vital.
UNFAIRNESS
• lack of equality or justice.
• the issues of money, competition
and pride are sometimes the
causes of unfairness.
• Some do less work, others come
in late, miss deadlines and make
mistakes.
FAIRNESS
• Is concerned with actions, processes, and
consequences that are morally right, honorable and
equitable.
• In essence, the virtue of fairness establishes moral
standards for decisions that affect others.
• Fair decisions are made in an appropriate manner
based on appropriate criteria.
ACCOUNTABILITY
• Refers to the obligation and
responsibility to give an explanation
or reason for the company’s actions
and conduct.
• It also has a strong connection to
expectations.
• Employees who do not meet the
expectations of their supervisor are
held accountable for their actions and
must answer for their inability to do so.
ACCOUNTABILITY
• Is a crucial in ensuring high performance within an
organization.
• Clear communication of expectations and well
defined goals is a very effective tool in enhancing
performance at every level of organization.
• Employees need to clearly understand their role in
the company and what they are responsible for
accomplishing.
• Accountability for a non profit have to provide some
community benefit.
• It includes ensuring that they are effectively
providing this benefit such as feeding the homeless,
protecting the environment, preventing domestic
violence and offering a cultural endeavor, and so on.
• Companies were primarily accountable to just two
entities customers (whom they owed a quality
product at a fair price), shareholders(whom they
owed regular profits).
Companies Constituencies:
1. Institutional Investors- are becoming much more vocal and more
active. They want more information about the board performance,
morally acceptable policies and practices, compensation policies
and the behavior of senior management, as well as fully transparent
financial data and information on the company’s prospects for
growth.
2. Customers- has a power to voice out their concerns and demand
information in all sort of areas, including product quality,
community involvement, child labor practices, allowances on prices,
customer service and performance issues.
3. Employees- finding and keeping good employees is tough, so
companies must be quick to respond to employee needs. Employees
want information related to company finances and operations, and
guidelines on how they can improve processes, performance and
profitability.

4. Communities- companies face enormous pressure from community


groups to be good corporate citizens.
TRANSPARENCY
• Means openness.
• Willingness by the company to provide clear information to
shareholders and other stakeholders.
• For instance, a company to be called transparent has to open and
willing to disclose financial performance figures which are truthful
and accurate.
• One of the top factor in shaping their happiness and satisfaction in
the workplace.
• Openness and honesty concerning all aspects of the business
operation has various advantages for a company.
1. Respect- transparent business demonstrates respect for both
employees and customers. It is particularly useful for non-profit
organizations, which are trusted to handle and manage donated
funds.
2. Positive Public Perception- scandal triggers some companies to be
transparent. They have to openly protect themselves or otherwise
enlighten the public of their actions and behaviors. Proves the
public that the company has nothing to hide.
3. Staff Involvement- staff members with no idea about the business
may assume, contribute in spreading gossip, or if not be
unconvinced and fearful regarding the condition of the company.
Open and honest communication must be maintained with the staff.
4. Customer Service- a manufacturer that openly confesses a
defect, promises action to repair it, and express regret for its
mistake is more likely to keep or still draw customers who are
glad about the level of sincere and truthful behavior shown.

5.Image Management- it is easy to manage public perception


of a company by being open and transparent. Established
media connections can help disseminate information during
crisis.
Fairness, accountability and
transparency for socioeconomic
development
• Fairness is one of the requirements for sustainable socio-economic
development.
• It should be practiced for a healthy competition.
• Corruption and cronyism must be removed in business to move forward to
development.
• According to Aristotle “Equals should be treated equally and unequal's
unequally.”
• Transparency and accountability are important pillars also for socioeconomic
development of a country especially for developing ones like Philippines.
Practices of Fairness, Accountability
and Transparency in Philippine
Businesses
• The Philippines had ranked second best among countries belonging to the
Association of Southeast Asian Nations (ASEAN).
• There are eleven (11) Philippine corporations that made it to the top 50 list;
 4 are owned by the Ayala Group (Ayala Corp., Ayala Land Inc., Globe
Telecom Inc., and Manila Water Co.
 Manuel Pangalinan led group had three, ( Manila Electric Co., Philex
Mining Corp., and Philippine Long Distance Telephone Co.
 Aboitiz Equity Ventures of the Aboitiz clan, George Ty’s GT Capital
Holdings, Inc. Sy family’s SM Prime Holdings and BDO Unibank Inc.
• Philippine Stock Exchange (PSE) study showed that Filipino
stock investors particularly conscious of disclosure
practices, which form part of firms’ corporate governance
structure.
• The study revealed that Filipino investors are more
concerned about fairness, accountability and transparency
issues related to equitable treatment of shareholders,
disclosure, and board responsibilities.
• According to Jonathan Juan Moreno, head of PSE’s
Corporate Governance Office, there is an empirical proof
about the relationship between corporate governance and
company value.

• Corporate Governance is the framework of rules and


practices by which a company’s board ensures
accountability, fairness and transparency in its relationship
with stakeholders such as financiers, customers,
management, employees, the government and community.
Fairness,
Accountability and
Transparency

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